Reprint of "Performance evaluation of China's high-tech innovation process :Analysis based on the innovation value chain"

The Chinese high-tech industry has developed greatly since the beginning of China's “National High-tech R&D (863) Program” and “China Torch Program”. This paper introduces a conceptual model extended from the innovation value chain model to simultaneously estimate the R&D and commercialization efficiencies for the high-tech industries of 29 provincial-level regions in China. To match reality, a network DEA incorporating both shared inputs and additional intermediate inputs is constructed to open the “black box” view of decision making units used in single-stage DEA. This study is the first attempt to link the R&D and commercialization with a solid theoretical foundation and feasible mathematical methods. The empirical findings show that most of the 29 regions have low efficiency in the commercialization sub-process compared to the R&D sub-process, although there are regional differences in China's high-tech industry. Pearson correlation shows that the R&D sub-process is not closely correlated to the commercialization sub-process in terms of efficiency. Our analysis can provide information for the formulation of policies to achieve high innovation efficiency.     

Efficiency evaluation of China's high-tech industry with a multi-activity network data envelopment analysis approach

This paper employs a Russell multi-activity network DEA model and divides the overall innovation process into the upstream Research and Development (R&D) process and the downstream commercialization process to appraise the innovation performance of China's high-tech industries from 2009 to 2013. This model can deal with the problems of intermediates, shared inputs and slack-based measure in a unified framework, and the result can provide policy makers with process-specific information on how to improve the innovation performance of China's high-tech industries. The main findings are presented as follows. First, the overall efficiency of China's high-tech industries still remains at a low level, which has its roots mainly in commercialization inefficiencies other than R&D inefficiencies. Second, for most provinces, their R&D efficiencies do not match up with their commercialization efficiencies. Finally, the innovative activities of China's high-tech industries should be driven by the market demand -oriented for the improvement of innovation efficiency.     

Assessing the technological innovation efficiency of China's high-tech industries with a two-stage network DEA approach

As significant strategic players in China's economy, high-tech industries need to evaluate and analyze the technological innovation activities from a system point of view to understand and improve their technological innovation efficiency and, thereby, promote their development. Different high-tech industries have different characteristics and thus benefit from different industrial development policies. However, few studies to date have discussed this issue from a systematic perspective. In this study, technological innovation activities are divided into a research and development (R&D) stage and a commercialization stage. A high-tech industrial evaluation framework of technological innovation efficiency based on two-stage network data envelopment analysis (DEA) is constructed with shared inputs, additional intermediate inputs, and free intermediate outputs. Our empirical results indicate that the overall efficiency of most industries is relatively low and the differences between the five high-tech industries (i.e., sub-sectors) we examined are large. The Spearman correlation shows that overall efficiency and R&D efficiency are more correlated than overall efficiency and commercialization efficiency. Additionally, R&D has better average efficiency. The sub-sector with the highest average efficiency is computers and office equipment, and the one with the lowest average efficiency is medicines. These findings indicate the inadequacy but potential for breakthroughs in the evolution of high-tech industries in China. The analysis proves that it is necessary to create different industrial policies to encourage effective progress in certain high-tech industries, and some guidelines for doing so are provided.     

How to optimize the allocation of research resources? An empirical study based on output and substitution elasticities of universities in Chinese provincial level

Although significant progress has been made in China's basic research in recent years, there remains a wide gap between research in China and that from developed countries. How to optimize the allocative efficiency of research resources is of great importance for increasing research output. In this paper, using the fixed effect stochastic frontier model based on the translog production function, we estimate output and substitution elasticities of research and development (R&D) inputs at universities in China's provincial level during 2009–2016. We find that the R&D technical efficiency of China's universities, after a rapid growth, has tended to become relatively stable. Improvements of internationalization degree and exogenous R&D capabilities are conducive to promoting R&D technical efficiency, whereas expenditures from government grants inhibit the promotion of R&D technical efficiency; the effects of R&D capital deepening and internet penetration are not evident. The output elasticity of R&D capital is much higher than that of R&D personnel, suggesting that R&D capital is the main driving force of research output. The substitution elasticity between R&D capital and personnel has experienced a change from substitution to complementary since 2014. To realize sustained growth of research output, we should increase R&D input with positive output elasticity or reduce R&D input with negative output elasticity, making the necessary trade-offs according to the substitution relationship between the two R&D inputs.     

Measuring the innovation production process: A cross-region empirical study of China’s high-tech innovations

Analyzing and measuring the innovation process from a quantitative perspective is needed for policy making, which can help in grasping and controlling the performance of innovations. There has been little literature to deal with it from a systemic perspective. In this study, a novel measurement framework for the typical innovation production process (IPP) is constructed from the system perspective associated with a relational network data envelopment analysis. It provides systematic and simultaneous efficiency measures for the overall process and internal sub-processes, i.e., upstream R&D process and downstream commercialization process. For confirming our measurement framework, we apply it to a cross-region empirical study of China’s high-tech innovations. The empirical innovation measurement provides in-depth evidences of China’s high-tech innovations inefficiency, and some policy recommendations are developed.     

中国高技术产业技术创新三阶段特征及其演变

基于投入产出分析的逻辑思路建立技术创新三阶段模型,运用链式网络DEA方法测量我国高技术产业技术创新三阶段效率,通过技术创新效率的动态变化观察高技术产业技术创新演变规律。研究发现,1996~2011年我国高技术产业技术开发阶段经历了整体上类似“U”形的变化,源于技术开发阶段的投入增多、企业重视力度加大;技术转化阶段滞后于技术开发阶段近两年的变化时期,主要起因于纯技术无效率、技术开发阶段和产业化阶段的脱节;产业化阶段滞后于技术开发阶段近5年的变化时期和技术转化阶段近3年的变化时期,主要由于产业化阶段作为技术开发和技术转化的下游阶段,偏低的技术转化率必然导致最终的产业化率极低,但改进的空间很大。     

Modes of innovation,resources and their influence on product innovation: Empirical evidence from R&D active firms in Norway

Evolutionary theory of the firm argues that firms follow different approaches to innovation with implications for their performance. Consistent with evolutionary theory, this paper develops a taxonomy of innovation modes which capture the variation in firms' approaches to product innovation. The taxonomy is based on the open/closed innovation and exploration/exploitation literatures and identifies the following modes: “Open exploration”, “closed exploration” “open exploitation”, and “closed exploitation”. The paper theorizes that the identified innovation modes influence product innovation through their effect on the firms' technological and market resources. Using survey data from over 1000 R&D active firms in Norway analyzed with structural equation modelling it is shown how four modes of innovation are related to actual product innovation.     

R&D performance assessment of industrial enterprises in China: A two-stage DEA approach

With the growing expenditure on the R&D activities of industrial enterprises above designated size (IEDSs) in China, it is important to evaluate the R&D efficiency of the Chinese IEDSs. However, few studies about R&D efficiency measurement of Chinese IEDSs have considered the internal structure of the R&D production process. To fill this gap, this paper investigates the R&D performance of IEDSs of 30 sample provinces on China's mainland from 2009 to 2014, based on a two-stage data envelopment analysis (DEA) model. The major findings from the empirical results are shown as follows: (i) serious imbalance exists in the R&D resources among Chinese IEDSs of 30 provinces; (ii) there is a decline in the average overall efficiencies after 2012; (iii) there are great differences regarding the performances of R&D activities among the Chinese IEDSs of 30 provinces; (iv) high attention to the R&D activities or strong scientific research atmosphere may promote the R&D efficiency of Chinese IEDSs; and (v) the IEDSs with the relatively high profitability or high government support in terms of R&D activities have relatively poor performance. Based on these findings, several policy suggestions are proposed for the R&D activities of Chinese IEDSs.     

中国装备制造产业创新网络运行效率及提升策略研究

通过分析装备制造产业创新网络运行机理,选取BBC模型、Malmquist指数作为运行效率测度模型,结合装备制造产业创新网络面板数据对其运行效率进行测度,结果表明:2008—2018年中国装备制造产业创新网络整体运行效率以平均每年8.7%的速度递增;从地区角度看,创新网络运行效率呈“东—中—西”阶梯差异态势,但差异态势逐年缩小;从省份角度看,全国26个省份运行效率存在异质性,大体可分为第一、二、三、四梯队;技术水平进步对全要素生产率增长的提升作用要大于纯技术效率和规模效率贡献;技术研发阶段效率低于成果转化阶段效率,两阶段存在脱节现象。创新网络是推动装备制造产业创新升级的重要力量之一,中国要坚定不移地推进创新驱动战略,以提升装备制造产业创新网络运行效率;依据不同地区、不同省份装备制造产业创新网络状况,实施差异化政策组合,以提升运行效率;注重研发技术市场化,以提升成果转化阶段效率。     

Interactive strategies in supply chains–a double-edged portfolio approach to small-and medium-sized subcontractors’ position analyses

China is concerned to improve the technical capability of its industry. It has chosen Science and Technology Industry Parks (STIPs) as the model for incubating its R&D capability and driving its hi-tech policy. Against this background, the authors examine two main issues. First, we review assessments of university science parks in the UK and a wider context extracted from the literature before examining specifically China's R&D intensity and hi-tech policy. Second, we examine the performance of hi-tech companies situated on STIPs and those located outside STIPs, comparing their success in commercializing technology. We pay particular attention to the role of entrepreneurship in this activity by those engaged in it. Our findings are based on secondary quantitative data and qualitative data collected by means of interviews and focus groups in the Beijing and Shanghai areas in March 2004. From our research it is clear that China lags behind OECD countries in its R&D capability and the technology transfer rate is low, hampering China's hi-tech potential, although China is achieving some success in hi-tech exports, notably of ICT goods. Furthermore, innovation capability, locational factors such as being located in a regional industry cluster (in or outside STIPs), guanxi and networking opportunities, entrepreneurial skills, including international business experience and access to more financial sources and capital for developing the business, are essential for commercializing technology effectively in China. The role of entrepreneurship is evident. However, it remains still underdeveloped in China's STIPs.     

Performance evaluation and prediction of the integrated circuit industry in China: A hybrid method

Since the “ZTE ban”, the development of the integrated circuit (IC) industry has attracted wide attention, especially in China. The performance evaluation and prediction of the IC industry is of great significance for promoting the development of this industry. In this paper, a hybrid method is proposed to study the performance of the IC industry from the perspectives of evaluation and prediction, which is unique as it evaluates the performance at past, current and future terms simultaneously. Firstly, a dynamic data envelopment analysis model is used to explore the performances of the IC industry between China and the United States from 2008 to 2017. Furthermore, in order to figure out the main sources of the inefficiency, the projection analysis is implemented based on the performance scores. Then, the grey model GM(1, 1) is employed to predicted the performance of China's IC industry from 2018 to 2022, so as to point out the progressive direction for the future development of the industry. The empirical results show that: (1) as far as performance is concerned, there is a significant gap between China and the United States in the IC industry during 2008–2017, among which the most obvious gap is occurring in “IC packaging & testing”, followed by “IC design” and “wafer fabrication”; (2) the primary cause of the low performance in China's IC industry is the redundancy of the inputs, especially in “IC packaging & testing”, and the redundancy problem of labour investment is found to be the most serious; (3) according to the predicted results, the IC industry in China will steadily increase in terms of the performance scores in general, and the performance improvement of “IC packaging & testing” is relatively obvious, while the other two categories have a slight range of growth. Finally, the policy implications of improving the performance of the IC industry are put forward.     

An analysis of firm-level innovation strategies in the US biotechnology industry

This study examines factors that may affect innovation strategies and performance of firms in the biotechnology industry. Specifically, differences between factors common to firms with high R&D intensity and those to firms with low R&D intensity are investigated. Biotechnology firms with relatively higher levels of R&D intensity attribute their innovation performance to research-based innovation factors and strategies such as strengthening their own research capabilities, entering into research collaborations with universities, industry leaders and other biotech firms, and licensing their technology. These strategies can be summarized as alignment within the industry. Firms with relatively lower R&D intensity have a hybrid focus—they invest in R&D but may also have products on the market. These firms attribute their innovation performance more so to production-based innovation factors and strategies such as gaining market access and maintaining connections with customers. Their strategy focuses on competitiveness, marketing, and distribution channels, while not ignoring the importance of a strong research base and the need to advance technologically. In a sense, strategies employed to achieve successful innovation reflect the stage of innovation in which a firm is operating for a particular product or process.     

Myth or reality? Assessing the moderating role of CEO compensation on the momentum of innovation in R&D

This study researches the influences of CEO compensation on firm behavior to examine the interactive relationship between the behavioral momentum of innovation in R&D and CEO compensation. The models presented in this study are based on evolutionary, institutional, and agency theories to test hypotheses using data from 107 companies in the high-technology sectors in the United States. The results indicate that the pre-succession innovative behavior of these high-technology firms on R&D can positively affect these firms' post-succession innovative behavior towards R&D. That is, positive momentum in R&D innovation prevails in a firm across a change of the CEO. However, for the role of CEO compensation, short- and long-term compensation does not positively moderate this behavioral momentum in R&D. Hence, the moderating impact of short- and long-term CEO compensation to enhance the momentum of innovation in R&D can be romanticized. These findings provide boards of directors with evidence as to how a CEO succession matters to a firm's behavioral momentum in R&D, and whether CEO compensation can be strategized to change a firm's innovation and momentous behavior.     

Dynamically evaluating the comprehensive efficiency of technological innovation and low-carbon economy in China's industrial sectors

Technological innovation and low-carbon economy are significant for the high-quality development of China's industrial sectors. However, few scholars combine the two stages closely and discuss their coordinated development. This paper establishes an evaluation index system of technological innovation and low-carbon economy in China's industrial sectors. The technological innovation efficiency, low-carbon economy efficiency, and comprehensive efficiency of technological innovation and low-carbon economy are dynamically investigated by the two-stage data envelopment analysis (DEA) model and the DEA window analysis with 35 subsectors panel data during 1996–2018. The inter-industrial differences in the technological innovation efficiency and low-carbon economy efficiency are considered, and the influencing factors of the comprehensive efficiency of technological innovation and low-carbon economy are studied by the bootstrap truncation regression. The results show that: (1) The development of the technological innovation and low-carbon economy is uncoordinated, and the low-carbon economy efficiency needs improvement; (2) There is heterogeneous of the technological innovation efficiency and low-carbon economy efficiency in the 35 subsectors; (3) The density of science and technology institutions, and the average enterprises scale are positive to the comprehensive efficiency of technological innovation and low-carbon economy, while excessive reliance on technology introduction has a negative impaction. The corresponding suggestions are provided for promoting technological innovation efficiency and low-carbon economy efficiency of industrial sectors.     

Types of innovation and inter-firm co-operation

The paper presents the results of an empirical study that aims to investigate the impact of interfirm co-operation over innovation on four different types of innovation: product, process, incremental and radical innovation. Drawing on the innovative milieu literature, the impact on the above four types of innovation was tested for both external and internal factors of innovation such as inter-firm co-operation over innovation, production networking, as well as R&D investment and R&D personnel. Four probit models were run by using a unique data set compiled as part of the Regional Innovation Strategy for the West Midlands (UK) Project. The main findings of the paper seem to provide substantial evidence that, for any of the four types of innovation considered, firms' capacity to innovate could greatly improve if they co-operated with other firms over innovation in addition to or instead of investing in R&D. Innovation policy should not overlook, therefore, the systemic component of innovation and ought to attempt to initiate and support inter-firm co-operation. This would mean a renewed and more focused analysis of firms' clusters as part of a multi-faceted approach to innovation policy.     

R&D cooperation and unintended innovation performance: Role of appropriability regimes and sectoral characteristics

This research empirically examines the relation between R&D cooperation and unintended innovation performance. The effects of appropriability and sectoral conditions on the unintended innovation performance in the context of R&D cooperation were also tested. Binary logistic regression was used to analyze the manufacturing firms sampled from the Korea Innovation Survey (KIS) 2012. Our estimation results show that for the high-tech focal firms under strong appropriability regime, cooperation with competitors increases the likelihood of their unintended innovation performance. For the high-tech focal firms under weak appropriability regime, cooperation with customer and user firms and universities increases the likelihood of their unintended innovation performance. For the low-tech firms under strong appropriability regime, cooperation with the customer and user firms and advisory organizations increases the likelihood of unintended innovation performance. For the low-tech firms under weak appropriability regime, cooperation with competitors and government research institutes increases the likelihood of unintended innovation performance. As a whole, the significance of this paper lies in shedding a new light on approaching the innovation performance with the notion of unintended innovation performance, which is shaped by different partner types and environmental conditions.     

A new intellectual property metric for standardization activities

This study formulates a method to measure the effects of standardization to assist in evaluating innovation and R&D policies. Its main purpose is to examine standardization activities within R&D organizations. This allows for a more appropriate policy evaluation framework than examining such activities within standard development organizations does. The study also redefines the conventional notion of intellectual property (IP) normatively and introduces the term “integrated IP” to reflect our new concept of joining IP and standardization activities. Our new concept captures the “fuzzy” impact of standardization on R&D to improve innovation management. The study presents a vector equation expressing the new IP definition and uses it to model revenues arising from a standard-essential patent for strategic IP management with standardization. The model indicates the importance of patents commercially required for product differentiation for the purpose of innovation with standards.     

Measurement of innovation efficiency in logistic enterprises: Evidence from China based on the three-stage DEA-Malmquist index model approach

Continuous improvement of technological innovation ability, adjustment of the development strategy, and enhancement of operational performance are of great theoretical and practical significance for logistics enterprises. This paper aims to analyze and evaluate the innovation efficiency of the logistics industry. The study utilizes the static three-stage DEA model and the dynamic Malmquist index model, considering a total of 12 indicators related to innovation input, output, and environmental variables. A dataset of 2940 entries from 49 listed logistics enterprises from 2017 to 2021 was calculated. The analysis provides insights into the innovation efficiency of logistics enterprises from a static perspective and the innovation total factor productivity from a dynamic perspective and decomposition terms. Based on the analysis of environmental variables by the SFA model, it was found that DEA inefficiency is the combined result of environmental factors and management inefficiency. Environmental variables have both positive and negative effects on innovation. The improvement of the economic development level will lead to excess R&D investment. Increased government simple fund subsidies are not conducive to the efficient allocation of innovation resources within enterprises. The expansion of enterprise scale will increase R&D personnel and investment in fixed assets. A thriving technology market can encourage enterprises to improve their own conversion rate of scientific and technological output and give full play to their innovation ability. The dynamic Malmquist model analysis reveals a recution in the overall innovation efficiency of listed logistics enterprises over 5 years. The changes in total factor productivity and technological progress efficiency of all listed logistics enterprises are synchronized, with most enterprises exhibiting higher technological progress efficiency compared to comprehensive technical efficiency. The total factor productivity of logistics enterprise innovation is mainly affected by comprehensive technical efficiency.     

The effect of researchers' interdisciplinary characteristics on team innovation performance: evidence from university R&D teams in China

This study examines the effect of researchers' characteristics on the performance of R&D teams. Based on the multi-perspective of organization behavior and knowledge management, the authors adopt the framework of ‘Input-Process-Output’ regarding the process of the R&D team as knowledge creation. The theoretical model and corresponding hypotheses were tested empirically, drawing on a sample of 80 R&D teams from four universities in China. We concluded that knowledge communication, sharing, and integration play very important mediated roles in the knowledge creation process of the R&D team. Though researchers might have differing opinions on interdisciplinary research, they still tend toward communication and sharing their knowledge, experience, and viewpoints in the R&D process; this is an essential means for the achievement of knowledge integration. In order to achieve high innovation performance, management should pay attention to the process of knowledge communication, sharing, and integration.     

中国行业层面研究与试验发展资本存量核算

研究目标：测算中国八大行业门类研究与试验发展（Research and Development，R&D）资本存量。研究方法：基于SNA2008的GDP核算框架，厘清R&D支出的资本化核算框架；再利用美国BEA方法测算R&D资本存量。研究发现：1990~2015年，中国R&D资本存量不到美国R&D资本存量的1/4；然而，自1994年后，中国R&D资本存量年均增长率达24.79%，而美国仅为4.86%，中美两国R&D资本存量差距呈逐渐缩小趋势；制造业R&D资本存量占全国R&D资本存量的比例呈上升趋势，从1990年的17.41%增长到2015年的68.08%，这与中国加快制造业转型升级的事实相符。研究创新：给出完整的R&D支出资本化核算过程，首次测算中国八大行业门类的R&D资本存量。研究价值：为分析技术进步对经济增长的影响提供了行业层面R&D投资和资本存量数据序列。