A comparative analysis of the change in R&D efficiency: a case of R&D leaders in the technology industry

This paper measures the cumulative change in research and development (R&D) efficiency of globally leading R&D companies in the technology industry. We use Data Envelopment Analysis /Malmquist index to analyse 49 such companies. The change in R&D efficiency is analysed by decomposing the Malmquist index into ‘catch-up’ and ‘frontier shift’ indices, and by comparing cumulative indices to those at the starting period. Those cumulative indices are obtained at both a firm and an industry level. Results indicate that the overall R&D efficiency of these globally leading R&D companies declined slightly during the period 2007–2013. At a firm level, this study determines in detail how the trend of each firm in R&D activities differs from other companies.     

R&D strategy and innovation performance: the role of standardization

Firms now increasingly recognise the important role of R&D strategy in building technological advantage. However, few attempts have linked standardisation with specific R&D strategies in explaining innovation performance. To bridge this gap, this study empirically examines the relationships between R&D strategies, standardisation, and firms’ innovation performance. Based on a sample of 371 firms in China, we use structural equation modelling (SEM) and find that novelty-oriented R&D strategy generates greater accumulation of standardisation knowledge and standards diversity, while R&D openness only positively relates to this standardisation knowledge accumulation. Moreover, standardisation knowledge accumulation is positively related to both administrative and technical innovation performance, while a greater variety of standards only leads to higher administrative innovativeness. More importantly, our results reveal that accumulation of standardisation knowledge mediates the relationships between R&D novelty and administrative and technical innovation performances. Both the theoretical and practical implications that arise from these findings are discussed.     

Networked research: European policy intervention in ICTs

We use social network analysis to evaluate ‘behavioural’ additionality aspects of public programmes supporting research and development (R&D). The paper appraises empirically the partnership and knowledge networks created around the R&D activities of the Information Society Priority of the Sixth Research Framework Programme of the European Community. These emergent, scale-free networks are found to play an important role in generating and, especially, in diffusing knowledge by attracting key industry actors and by strengthening overall network connectivity through public support. Public policy should try to facilitate the development of more European organisations that can be characterised as global network hubs, on the one hand, and to draw larger numbers of the most dynamic small and medium-sized enterprises (SMEs) into these programmes, on the other, to avoid technological lock-ins and mitigate the resistance or network reorientation toward more productive research areas.     

Open technology innovation activity and firm value: evidence from Korean firms

Despite the importance of Open Technology Innovation Activity (OTIA) for firm value, the literature investigating effects of OTIA announcements of developing country firms is not known in international academic circles. Our study using an event study approach examines the effects of OTIA (technology import and joint R&D) announcements of firms in Korea, one of the leading developing and highly innovative countries. We find that the announcements of OTIA produce positive average abnormal returns. Interestingly, unlike the prior studies on developed country firms, OTIA with firms in the homogenous industry leads to greater firm value than that involving firms in heterogenic industries. This implies an importance of a technological fusion with external firms in different industries for value of developing country firms. In addition, this article finds no home bias that a nationality of partner firms is not essential for the relation between OTIA and value of firms.     

The impact of R&D subsidy on innovation: evidence from New Zealand firms

This study examines the impact of government subsidy through R&D grants on innovation output for firms in New Zealand. Using a large database that links administrative and tax data with survey data, we find that R&D grants have a stronger effect on more novel innovation (e.g. applying for a patent or introducing new products to the world) than on incremental innovation (e.g. any product innovation) and that larger, project-based grants are more effective at promoting innovation than smaller, non-project-specific grants. There is little evidence that R&D grants have differential effects between smaller (<50 employees) and larger firms.     

Lagging productivity growth: Measurement,technology, and shock effects

One of the most important problems about which economists have professional knowledge is lagging productivity growth. After illustrating some significant developments this paper addresses three questions: (1) To what extent does R&;D activity drive productivity growth, (2) how do alternative measures of productivity affect the conclusions and (3) how did the oil price shocks and the increased openness of the U.S. economy affect productivity growth? After removing the influence of the extremely dynamic computer industry, average manufacturing industry productivity in the U.S. throughout the 80s grew at a disappointing pace. And it didn't improve in the most dynamic industries. But there is good news as well. First, part of the 1970s productivity slump is clearly attributable to the 1973–74 oil price shock. Second and more important, technological innovation does not appear to have lost its power in driving productivity growth forward. Indeed there is evidence of stronger and more consistent productivity effects from R&;D investment during the 1980s, although the exact channels through which R&;D enhances manufacturing sector productivity are left in doubt. Estimates of the role inter-industry technology flows play are sensitive to aggregation and the conventions used to construct the industry price deflators underlying productivity measures.     

Absorbing radical ideas from unusual sources – the role of social integration mechanisms

If companies rely strongly on internal R&D and existing networks their ability to introduce radical innovations may suffer. Opening up to new idea sources may provide a solution. Incumbent companies, however, often suffer from the tendency to reject radical ideas from unusual sources. This study investigates how social integration mechanisms (SIMs; coordination, socialisation, and systems mechanisms) influence an incumbent steel company’s absorptive capacity (AC). A micro-level analysis of two radical ideas from unusual sources contributes to AC and radical innovation literatures by exploring relationships between SIMs and four AC capabilities (acquisition, assimilation, transformation, and exploitation). The findings suggest that AC capabilities are context-specific with respect to innovation novelty and idea source. The results emphasise the negative sides of socialisation and formalisation mechanisms, and the positive effects of coordination mechanisms on the AC capabilities in such high uncertainty contexts.