Technology transfer in the IT industry: A Korean perspective

Recently Korean Government announced ambitious IT strategy to establish Korea as one of leaders in world IT market. To implement this strategy, technology transfer from research lab to market should be successfully performed. This study is to identify factors influencing technology transfer and to examine contribution of these factors on success of technology transfer in Korean IT industry. Survey results show that technology project leaders evaluated “Concreteness of Technology” as the most influential factor for technology transfer, followed by “Communication Channels,” “Collaboration among Participants,” “Management Support,” “Government Support,” and “Incentives for Transfer.” Out of 135 technology transfer projects, respondents rated 33 projects as sustaining (28.44%), 38 as promoting (28.15%), 26 as demonstrating (19.26%), 27 in incubating (20.00%), and the remaining 7 in imaging stage (8.15%). This statistics means that 28.15% of technology transfer projects did not reach production stage. Regression analysis identifies that “Communication Channels,” “Management Support,” “Concreteness of Technology” “Sense of Common Purpose,” and “Awareness of Technology Transfer” were statistically significant in explaining success of technology transfer.     

A study on the relationship between technology diffusion and new product diffusion

This study investigates the relationship between “technology diffusion” and “new product diffusion”. We define “technology diffusion” as a knowledge spillover process, which is represented by patent citation, and “new product diffusion” as the spread of a new product that has been developed by the application of patented technology. To investigate the relationship between the two types of diffusion, we use patent citation data of code division multiple access (CDMA) technology and market sales data of mobile phones in South Korea for the analysis. The results show that the diffusion of technology through patent citation could be successfully explained by empirical analysis, for which the Bass diffusion model was used. Moreover, we can find out if technology diffusion can be the leading indicator of a new product's diffusion before its launching; in other words, before the commercialization of the patent.     

Valuation of environmental goods: A shadow value perspective

This paper proposes a shadow value-based methodology for the economic valuation of environmental goods. The proposed method derives from a “cost of production perspective”. This type of approach represents advantages with respect to usual methods linked with “demand perspective”, when the interests of future generations is under consideration. The computational procedure is simple and the required information easy to obtain. We explain how the methodology works with the help of a forestry example.     

Local environmental regulation and plant-level productivity

This paper examines the impact of environmental regulation on the productivity of manufacturing plants in the United States. Establishment-level data from three Censuses of Manufactures are used to estimate 3-factor Cobb-Douglas production functions that include a measure of the stringency of environmental regulation faced by manufacturing plants. In contrast to previous studies, this paper examines effects on plants in all manufacturing industries, not just those in “dirty” industries. Further, this paper employs spatial-temporal variation in environmental compliance costs to identify effects, using a time-varying county-level index that is based on multiple years of establishment-level data from the Pollution Abatement Costs and Expenditures survey and the Annual Survey of Manufactures. Results suggest that, for the average manufacturing plant, there is no statistically significant effect on productivity of being in a county with higher environmental compliance costs. For the average plant, the main effect of environmental regulation may not be in the spatial and temporal dimensions.     

Arbitrage-free valuation of interest rate securities under forward curves with stochastic speed and acceleration

Arbitrage-free models for valuing interest rate securities posit that stochastic changes in spot or forward interest rates (forward rate “speed”) follow a diffusion process. This paper extends the Heath, Jarrow and Morton [Bond pricing and the term structure of interest rates: a new methodology for contingent claims valuations, Econometrica 60 (1992) 77-105], HJM framework by allowing diffusive shocks to both the “speed” and “acceleration” of forward rates. The arbitrage-free restriction on forward rates is identified and involves volatilities of the speed and acceleration dynamics and their correlation. Although the extended forward rates remain in the diffusive framework and evolve continuously, they may exhibit large changes over short intervals (as with jumps) due to stochastic acceleration. Comparisons of bond prices show that the proposed model generates more complex and intricate shapes for the restricted forward curve with the same number of stochastic factors and volatility.     

A new definition and framework for the development of a national technology strategy: The case of nanotechnology for Iran

In this research, we use the concepts of “national technology policy” as well as the “firm technology strategy” in defining a new definition for “national technology strategy”. Then, by examining several national technology strategies in a variety of fields in different countries the national nanotechnology strategy for Iran is developed. Furthermore, using capability-effectiveness matrix and SWOT analysis we identify strategies of nanotechnology development in Iran. Finally, considering other countries' strategies and the results of PROMETHEE Method, we prioritize different areas of nanotechnology for Iranian economy, and test for the validity of the extracted strategies.     

A fuzzy multiple criteria comparison of technology forecasting methods for predicting the new materials development

New materials have been recognized as key drivers for corporate profitability and growth in today's fast changing environments. To predict correctly the development of the new materials becomes a critical issue. However, little has been done in discussing the selection of technology forecasting methods for the new materials development. Accordingly, this study adopted the fuzzy AHP method to obtain professional's opinions on this issue. The efforts result in seven evaluation criteria with one, the “data validity” having the highest weight, followed by “method adaptability” and “technology predictability”. Delphi method and case study method are the two most applicable technology forecasting methods for predicting the new materials development.     

Measuring fossil resource inequality—A case study for the UK between 1968 and 2000

This paper quantifies fossil resource inequalities amongst income quintiles in the UK between 1968 and 2000. It calculates a resource-based Gini coefficient using an input-output based resource allocation model.The results show that the Gini coefficient for total fossil resource consumption grew by 24% over the time period. By comparison the Gini coefficient for overall household expenditure rose by only 13%. The increase in resource inequality was prompted by the rising demand by high income quintiles for goods and services such as: “fuel and light” (heating and lighting the home), “car use” (private transportation), “recreation”, “travel” and “other services”. The analysis shows further that the Gini coefficient for “direct” fossil resources (“fuel and light” and “car use”) was lower and rose less steeply than the Gini coefficient for fossil resources embodied in other goods and services (indirect fossil resource requirements).Investigation into the drivers behind direct and indirect resource inequalities suggests a number of policy conclusions. Firstly, it is clear that policy initiatives to reduce fossil resource requirements (and the associated climate change impacts) must pay careful attention to distributional differences. Additionally, increased attention needs to be paid to the inequalities associated with indirect fossil resources consumption as well as the more visible direct resource inequalities.     

Differentiating ambiguity and ambiguity attitude

The objective of this paper is to show how ambiguity, and a decision maker (DM)'s response to it, can be modelled formally in the context of a general decision model. We introduce a relation derived from the DM's preferences, called “unambiguous preference”, and show that it can be represented by a set of probabilities. We provide such set with a simple differential characterization, and argue that it is a behavioral representation of the “ambiguity” that the DM may perceive. Given such revealed ambiguity, we provide a representation of ambiguity attitudes. We also characterize axiomatically a special case of our decision model, the “α-maxmin” expected utility model.     

Quantitative mapping of scientific research—The case of electrical conducting polymer nanocomposite

This study aims to understand knowledge structure both quantitatively and visually by integrating keyword analysis and social network analysis of scientific papers. The methodology proposed in this study is capable of creating a three-dimensional “Research focus parallelship network” and a “Keyword Co-occurrence Network”, together with a two-dimensional knowledge map. The network and knowledge map can be depicted differently by choosing different information for the network actor, i.e. country, institute, paper and keyword, to reflect knowledge structures from macro, to meso, to micro-levels. A total of 223 highly cited papers published by 142 institutes and 26 countries are analyzed in this study. China and the US are the two countries located at the core of knowledge structure and China is ranked no. 1. This quantitative exploration provides a way to unveil important or emerging components in scientific development and also to visualize knowledge; thus an objective evaluation of scientific research is possible for quantitative technology management.     

A methodology of technological foresight: A proposal and field study

The study of one's own business future is a distinctive element of a business strategy. Innovative companies are aware of weak signals coming from the periphery and of trends in their industry, and they monitor the coherence between weak signals and trends (the external perspective) and strategic direction (the internal perspective).The literature today does not provide well-framed and complete methodologies for assessing the coherence among trends, vision and products. Therefore, the authors propose a methodology called “the methodology of future coverage”, which measures how much the strategy oriented to the future effectively covers trends and megatrends. In other words, it helps to check the contents and the coherence of the firm' vision and products and those of the trends that will have relevance for the future of the industry, and this process supplies firms with supplementary information on how to improve. The authors tested this methodology and exemplified its use via the Eurotech case study, employing longitudinal analysis.The methodology can be useful as a tool for diagnosing the coherence between trends and company strategy. Moreover, from a dynamic point of view, it can be used as a tool to check on the company's progress in following up on trends by adapting its strategy over time. Finally, the methodology can be also used as a tool for cross-comparison of the “level of future orientation” among companies in the same industry.     

The Nash-threats folk theorem with communication and approximate common knowledge in two player games

We show that the use of communications to coordinate equilibria generates a Nash-threats folk theorem in two-player games with “almost public” information. The results generalize to the n-person case. However, the two-person case is more difficult because it is not possible to sustain equilibria by comparing the reports of different players, and using these “third parties” to effectively enforce contracts.     

Utility Representation of an Incomplete Preference Relation

We consider the problem of representing a (possibly) incomplete preference relation by means of a vector-valued utility function. Continuous and semicontinuous representation results are reported in the case of preference relations that are, in a sense, not “too incomplete.” These results generalize some of the classical utility representation theorems of the theory of individual choice and paves the way towards developing a consumer theory that realistically allows individuals to exhibit some “indecisiveness” on occasion. Journal of Economic Literature Classification Number: D11.     

Is the transport system becoming ubiquitous? Socio-technical roadmapping as a tool for integrating the development of transport policies and intelligent transport systems and services in Finland

This paper examines the main development characteristics within the transport system as we are approaching the ubiquitous phase of the information society. Particularly the challenges in designing transport policies on a rapidly evolving technological frontier are emphasised. The theoretical background of the paper stems from policy assessment as well as futures studies, especially from technology roadmapping. The paper presents a socio-technical roadmapping method as a tool to integrate the technology developments better with societal developments and transport policy design. The method is tested with a Finnish case study, which provides three thematic, complementary roadmaps of the potential transport system technology services of the future. The roadmaps illustrate what kind of technologies, services, actors and related policy relevant knowledge is needed in satisfying the demands of transport policy development in the future's ubiquitous society. The case study reveals several changes in the transport system: pluralised number of actor roles and actor networks in the system, emergence of a new kind of business and service layer because of the new dynamic inter-linkages between the actors, and further, possibility to capture the service layer with the concept of “technology service”. The changes require also re-conceptualisation of knowledge production to support transport policies. In conclusion, the socio-technical roadmapping holds great potentials as a tool for aligning technology development with transport policy development.     

The measurement of rank mobility

In this paper we investigate the problem of measuring social mobility when the social status of individuals is given by their rank. In order to sensibly represent the rank mobility of subgroups within a given society, we address the problem in terms of partial permutation matrices which include standard (“global”) matrices as a special case. We first provide a characterization of a partial ordering on partial matrices which, in the standard case of global matrices, coincides with the well-known “concordance” ordering. We then provide a characterization of an index of rank mobility based on partial matrices and show that, in the standard case of comparing global matrices, it is equivalent to Spearman's ρ index.     

A metric for assessing the “goodness” of income distributions and the effect of price changes

Social welfare evaluation depends in part on value judgments as to income distribution. This paper proposes a metric for assessing the “goodness” of particular income distributions. That metric is then used to examine the effect of price changes on the “goodness” of a given distribution. Consider an increase in the price of a commodity that is disproportionately consumed by households with incomes that are high relative to the preferred income distribution. One naturally supposes that such a price increase will make the given income distribution appear less bad. Surprisingly, this is not invariably the case.     

Myopia, redistribution and pensions

This paper reviews a number of recent contributions that study pension design with myopic individuals. Its objective is to explore how the presence of more or less myopic individuals affects pension design when individuals differ also in productivity. This double heterogeneity gives rise to an interesting interplay between paternalistic and redistributive considerations, which is at the heart of most of the results that are presented. The main part of the paper is devoted to the issue of pension design when myopic individual do not save “enough” for their retirement because their “myopic self” (with a high discount rate) emerges when labor supply and savings decisions are made. Some extensions and variations are considered in the second part. In particular we deal with situations where labor disutility or preferences for consumption are subject to “habit formation” and where sin goods have a detrimental effect on second period health. Myopic individuals tend to underestimate the effects of both habit formation and sinful consumption, which complicates public policy.     

Using scenarios for roadmapping: The case of clean production

Roadmapping and scenarios are two widely used futures techniques which help R&D managers set priorities for research. These techniques are combined in a Foresight exercise assessing development of clean production in metal manufacturing, drawing on the European CLEANPROD project. The aim of the project is to develop a set of roadmaps for metal processing R&D to achieve breakthrough sustainability — “clean production”.Scenarios, a frequently used Foresight method, are used to set the context for the exercise, inform the design of technology roadmaps and influence the wider policy context. Roadmaps are developed for three process areas of metal manufacture - surface preparation, machining and coating - on four levels including long run visions up to 2020, interim targets up to 2015, key R&D areas and specific project topics. Roadmaps are appraised in the light of alternative scenarios on the future of manufacturing. Promoting sustainability highlights gaps in a “business as usual” roadmap, suggesting a different portfolio of research projects. A revised overall scenario is used to shape public policy.R&D teams usually adopt one particular methodology to support resource allocation. However joint use of futures techniques helps if there is uncertainty over competing alternative technologies. Roadmapping often focuses on a single future. Scenario building as a Foresight technique introduces “multiple futures” thinking.     

The relationship between entrepreneurship and unemployment: Is Portugal an outlier?

The present paper examines the relationship between entrepreneurship, as measured by the variation in business ownership rates, and unemployment in Portugal in the period from 1972 to 2002. It concludes that Portugal has been a relative outlier in regard to the effects of entrepreneurship on unemployment when compared with the OECD average. Although the nature of entrepreneurship may be different in the Portuguese case, due to a high proportion of “micro-businesses” created for subsistence which have little impact on growth and employment, this factor does not seem to be the primary reason for the observed discrepancies. The differences between observed levels of unemployment for Portugal and those predicted by a model based on OECD data seem to be mostly associated with macroeconomic fluctuations associated with European business cycles and EU “cohesion” funding, as well as with adjustment costs to new technology adoption which lead to productivity slowdowns, thus increasing the time lag for the effect of entrepreneurship on employment beyond the OECD average.     

Linking technology intelligence to open innovation

The explosive growth of the Internet has led to a dramatic increase in data sources for (competitive) technology intelligence. Appropriate implementation and use of IT tools to gather and analyze these data is of key importance for the creation of actionable technology intelligence. A strategy to optimize investments in the identified technologies becomes of paramount importance if an organization wants to match knowledge and ideas originating from outside of the organization with internal core competences. Such a strategy can create competitive advantage by effectively linking technology intelligence to open innovation.We show how VIB, a life sciences research organization, has established technology intelligence processes to identify a multitude of external technologies of interest, which are subsequently “probed” for their potential and fit with VIB using real options reasoning, thereby supporting open innovation. Our methodology may be useful for other organizations which are considering implementing open innovation approaches.