China's indigenous innovation approach: the emergence of Chinese innovation theory?

Theory-driven and theory-based studies on innovation in China are relatively scarce. Most innovation studies about Chinese business are based on Chinese policy and government programmes and their results. This special issue of Technology Analysis and Strategic Management explores China's indigenous innovation strategy and suggests a research agenda that focuses on Chinese innovation theory building that incorporates China's efforts to move towards an innovation-based economy. Currently, China is developing its indigenous innovation capabilities (The Chinese term is 自主创新, pronounced zizhu chuangxin). We suggest that innovation studies of Chinese business could focus on these indigenous innovation ambitions. In addition to this, it could adopt, and be embedded in a Chinese theory of innovation instead of a traditional Western-centric theory of innovation. Our proposition is that to better understand Chinese indigenous innovation, a new paradigm of Chinese innovation should be developed. We therefore present a research agenda that can be a starting point for the development of such a theory, and present seven papers in this special issue that give content to this idea. Obviously no theory will have a monopoly on exploring Chinese innovation phenomena, but it is interesting to add a Chinese-centric view into the Western-centric scholarly view. We hope that will be one of the contributions of this special issue on innovation in China.     

How does cooperative innovation affect innovation performance? Evidence from Chinese firms

This paper explores the impact of different cooperation networks upon their cooperative innovation effect (CIE) and innovation performance, and examined the relationship between the CIE and the innovation performance of firms. Some interesting findings appear. First, the findings indicate that there are significant and positive relationships between the seven cooperation networks and the CIE of firms, of which the internal cooperation network has the most significant and positive impact on their CIE. Second, the findings also reveal that there are significant and positive relationships between the six cooperation networks, except firm–government cooperation (FGC) and the innovation performance of firms. Third, contrary to some studies from developed countries, the results reveal that FGC does not demonstrate any significant impact on the innovation performance of firms. These results enrich and supplement the current understanding of the relationships between cooperation networks and innovation performance.     

Combining the technological innovation systems framework with the entrepreneurs’ perspective on innovation

For their technological sustainability innovations to become successful, entrepreneurs can strategically shape the technological field in which they are involved. The technological innovation systems (TISs) literature has generated valuable insights into the processes which need to be stimulated for the successful development and implementation of innovative sustainability technologies. To explore the applicability of the TIS framework from the perspective of entrepreneurs, we conducted a case study in the Dutch smart grids sector. We found that the TIS framework generally matches the perspectives of entrepreneurs. For its use by entrepreneurs, we suggest a slight adaptation of this framework. The process ‘Market formation’ needs to be divided into processes that are driven by the government and processes that are driven by entrepreneurs. There should be a greater emphasis on collaborative marketing, on changing user behaviour and preferences and on the development of fair and feasible business models.     

China top brand strategy and innovation

The Chinese economy appears the double-restraint characteristic at present stage including mainly resources restraint and market restraint. With the policy of reform and opening up, and especially after accelerating the two fundamental changes put forward by central government, the transformation of the economic growth mode achieved positive progress in China. There was still no brand from China mainland belonging to the 100 top world valuable brands according to Business Weekly of America in 2006. By 2007, a total of 1957 China top brand, 10 world famous China top brand are awarded in china to form a powerful enterprise group. But how to assess a brand is still troublesome. This paper shows the evolution of the policy and discusses the dilemma expecting the advice from the domestic and abroad.     

Exploring the impact of open innovation on national systems of innovation — A theoretical analysis

This paper investigates the impact of open innovation on national systems of innovation. The open innovation concept has become widely established among scholars and practitioners. However, an overview of its impact on national innovation systems is still lacking. Given that the innovating firm is at the core of national innovation systems, a better understanding of shifting innovation strategies at the firm level is of fundamental importance to the actions of policy-makers within the national innovation systems framework. Based on the main analytical approaches of national innovation systems and the current state of open innovation research, we argue that open innovation practices have at least three critical effects on national systems of innovation: (a) they reinforce its importance; (b) they improve its effectiveness; and (c) they diversify its networks.     

On SD-oriented mechanism of technological innovation

If one enterprise just takes technological innovation as the way for economic profit but not the combinationalprofit of economy, society and ecology, it will never survive in this fierce competition market. Based on the relationshipbetween technological innovation and sustainable development, this paper brings forward that technological innovationmust take the sustainable1 development of society as the fundamental goal. Technological innovation should be the realimpulse for the development of society, economy and ecology. On the basis of the analysis on previous technologicalinnovation impetus mechanism, combined with the influential factors, this paper puts forward SD-oriented mechanism oftechnological innovation.     

How does firm diversification impact innovation?

This study sheds light on the relationship between business diversification and innovation. A diversification strategy is both a driver of sunk costs and strategic slack. Strategic slack is a valuable reserve of knowledge, usable to foster innovation. Using linear models, we explore the interplay between research and development (R&D) and organisational slack in large and diversified companies listed on the Euronext 100 Index. We consider the diversification pattern over time, and its interactions with the following three categories: sunk costs, slack resources, and R&D. The results show an antithetic effect of diversification and slack on R&D expenditures. In contrast to unabsorbed and potential slack, diversification and sunk costs hinder innovation. However, diversification is a huge source of strategic slack and, thus, has a positive effect on innovation, indirectly.     

Broken promises and breaking ground for responsible innovation – intervention research to transform business-as-usual in nanotechnology innovation

Despite repeated calls for novel forms of innovation and governance, including responsible innovation, anticipatory governance, and sustainability-oriented governance, nanotechnology continues to be mainly innovated following conventional schemes – with persistent shortcomings and negative impacts. Shifting these schemes towards sustainable and responsible innovation and fully utilising the benefits of sustainable nanotechnologies will necessitate difficult changes across all stages of and actors in the innovation process. We outline an agenda for intervention research in support of such changes. The article synthesises insights from four years of research on nanotechnology innovation, anticipatory governance, and sustainability in urban environments, with a focus on Phoenix, Arizona.     

Does venture capital really foster innovation?

Using panel data of 17 European Union countries, we find robust empirical support for a positive impact of venture capital on innovation. After controlling for the potential endogenous relationship between venture capital and innovation, the results indicate that venture capital fosters innovation but mainly at a later stage.     

Does the analysis of innovation barriers perceived by high growth firms provide information on innovation policy priorities?

High growth firms and reducing innovation barriers figure high in the European innovation policy debate. Do high growth firms face specific innovation barriers which are relevant for innovation policy? In this paper we study the robustness of the perception of innovation barriers when alternative definitions of high growth firms are used. Using data from two waves of the European Innovation survey (CIS 4 and CIS 2006) we show not only that different definitions of high growth firms lead to quite different results across country groups, but also that the results are quite different for the CIS 4 and CIS 2006 samples. We argue that in the light of the available empirical evidence this non-robustness should not come as a surprise and that this negative result makes it difficult to specifically target high growth firms with public policies. Fostering the emergence of high growth innovative firms in Europe may not be feasible with targeted funding policies only but needs a systemic approach.     

Cross-border innovation intermediaries – matchmaking across institutional contexts

This paper draws attention to the specific aspect of institutional environments in international matchmaking for innovation. While technology is largely global this exploratory study of 18 cross-border cases between Europe and China points to the impact of distant institutional environments on the success and structure of cross-border collaborative innovation. Addressing differences in governance, market regulation, policy, IPR protection, language and culture like the Chinese guanxi are specific services based on dedicated capabilities of international innovation intermediaries.     

Competition and innovation: an experimental investigation

The paper analyzes the effects of more intense competition on firms’ investments in process innovations. More intense competition corresponds to an increase in the number of firms or a switch from Cournot to Bertrand competition. We carry out experiments for two-stage games, where R&D investment choices are followed by product market competition. An increase in the number of firms from two to four reduces investments, whereas a switch from Cournot to Bertrand increases investments, even though theory predicts a negative effect in the four-player case. The results arise both in treatments in which both stages are implemented and in treatments in which only one stage is implemented. However, the positive effect of moving from Cournot to Bertrand competition is more pronounced in the former case.     

Study on the modes of metropolitan innovation system

Building regional innovation system has become the important means to upgrade competence of both country and region. Based on comparatively analysis of the metropolitan innovation systems of major innovation centers in the world, this paper concludes four modes of metropolitan innovation system, which are comprehensive knowledge innovation, venture entrepreneurship, learning and overtaking, and Science Park as a carder. According to the four modes and tri-spiral theory of RIS, this paper designs the mode of Shanghai innovation system of overtaking by learning, emphasizing composite innovation player combined firm, university and government, and the strategic aim to build regional and even international innovation center through knowledge innovation, systemic innovation, organizational innovation, cultural innovation and effective control.     

Process and risk analysis about enterprises technological innovation

Successful innovation is so important that enterprise scientifically manages the process and risk of technological innovation. Firstly, the process of innovation is generalized to seven stages including formation of innovation idea, investigation and evaluation, research and development, middle test, mass production, marketing and selling, after service and feedback. Secondly, the origin of risk in the process of innovation is analyzed. The purpose is to help enterprise identify risk and take countermeasure to minimize the potential loss and maximize the potential income.     

The innovation of China＇s farm products marketing

Aimed at the current actuality of farm products in China, the key point is the innovation of marketing if we want to share farm products market. This article discusses on four aspects： The innovation of both tactics and strategies of the farm products marketing; using the new marketing means, selling the products on Internet; improving the standard of the products, opening out the green products; the new sale mode. This article will give the active effect for the China＇s farm products market ing.     

Intermediary–user collaboration during the innovation implementation process

The innovation process is characterised by obstacles faced both by innovation suppliers during development and by users during implementation. Although the literature has underscored the importance of collaboration, how this process occurs during implementation remains understudied. In this study, a cross-case analysis of implementation processes showed that intermediary–user collaborations are characterised by different ways of matching users’ demands with intermediaries’ services, different formal and informal governance mechanisms, and different implementation outcomes. We propose that these characteristics are due to the specificities of implementation and to the particularities of the intermediary–user relationship. Additionally, there are particularities to intermediary–user collaborations that both facilitate implementation and create risks for its outcomes. We suggest that the link between the implementation outcome and the collaboration process affects user satisfaction, further investments in the technology, and learning. We conclude by drawing implications of the particularities of intermediary–user collaboration and implementation for theory, managers, and further research.     

Technological innovation and multinational expansion: A two-way link?

The paper examines how investment in research influences the form of foreign expansion chosen by the firm, and vice versa. We consider a two-country model where a monopolist producing in one country can choose between export and foreign direct investment. We assume process innovation, where the cost-reducing technological innovations are an outcome of the firm's investment in R&D. The role of technology transfer costs is explored. The model shows that, with low costs of technology transfer, there is a two-way link between the firm's R&D effort and multinational expansion. We also prove that both the research choice and the multinational choice have a positive effect on consumers' welfare in both countries.     

Do foreign institutional investors enhance firm innovation in China?

This paper investigates the impact of the Qualified Foreign Institutional Investor (QFII) scheme regulated by the Chinese government on firm innovation in China. By explicitly addressing the potential endogenous relationship between foreign institutional ownership and firm innovation, we find that foreign institutional investors enhance firm innovation in China, suggesting that the Chinese government should further relax its foreign capital investment control, for example, increase the quota of the QFII scheme.     

Transition through subsystem innovation? The case of traffic management

This article analyzes traffic management as an example of infrastructure operation and assesses to what extent the transition approach as developed by Rotmans, Geels, and others is helpful in providing insight and contributes to the transition of the mobility system. Based on a conceptual framework which draws on the work of Luhmann and Critical Systems Thinking (CST), two cases of traffic management innovation in the Netherlands are analyzed. From this it becomes clear that traffic management is more than the optimization of the current mobility system. Rather than being a technical exercise, traffic management has to deal with substantial uncertainty which results from political dynamics and interactions between traffic management and other parts of the larger mobility system. The cases show that, in dealing with these uncertainties, actors may start to explore broader system definitions. Thus, a transition of the car-dependent mobility system is shown to be strongly emergent, which questions overly linear projections formulated by transition researchers as well as practitioners.