Modelling innovation support systems for regional development – analysis of cluster structures in innovation in Portugal

The present article offers a concise theoretical conceptualization and operational analysis of the contribution of innovation to regional development. The latter concepts are closely related to geographical proximity, knowledge diffusion and filters and clustering. Institutional innovation profiles and regional patterns of innovation are two mutually linked, novel conceptual elements in this article. Next to a theoretical framing, the article employs the regional innovation systems concept as a vehicle to analyse institutional innovation profiles. Our case study addresses three Portuguese regions and their institutions, included in a web-based inventory of innovation agencies which offered the foundation for an extensive database. This data-set was analysed by means of a recently developed principal coordinates analysis followed by a Logistic Biplot approach (leading to a Voronoi mapping) to design a systemic typology of innovation structures where each institution is individually represented. There appears to be a significant difference in the regional innovation patterns resulting from the diverse institutional innovation profiles concerned. These profiles appear to be region specific. Our conclusion highlights the main advantages in the use of the method used for policy-makers and business companies.     

Policy innovation in isolation?

Abstract

Innovations in public policy are difficult to realize if decision-making arrangements are not scrutinized at the same time. Rigid institutional arrangements often hinder the realization of policy breakthroughs. Consequently, in the day-to-day practice of public administration, more and more experiments with innovative arrangements towards realizing groundbreaking policy decisions are being seen. Two rather different examples of such arrangements in the Dutch context are transition arenas and pilot projects (proeftuinen). In this article we describe these arrangements from an innovation management perspective and evaluate their functioning by focusing on their approaches to two dilemmas: the dilemma between diversity and closedness within the innovation plans and the dilemma between openness and closedness of the plan in relation to its context, the outside world. From their comparison we can learn about the context-specific application of different innovation plans and the results of different ways of handling these innovation dilemmas.     

Are fiscal policy incentives effective in stimulating firms' eco-product innovation? The moderating role of dynamic capabilities

This study investigates the effectiveness of fiscal policy incentives—in particular, direct subsidies and tax credits—in stimulating eco-product innovation among Chinese manufacturing firms. We also examine the moderating effects of dynamic capabilities. The empirical results, which are based on survey data from 265 firms in China, demonstrate that both direct subsidies and tax credits are conducive to firms' eco-product innovation. In addition, we find that when firms' dynamic integration capabilities are strong, the facilitating effects of direct subsidies and tax credits on eco-product innovation are likewise strong. Moreover, dynamic reconfiguration capabilities positively moderate the relationship between tax credits and eco-product innovation. By identifying moderators that influence the effect of fiscal incentives on eco-product innovation in heterogeneous firms, this study contributes to fiscal policy debates and realizing sustainable development.     

Are graduates’ intrapreneurial skills optimally used for innovation?

This paper studies the extent to which higher education graduates with higher intrapreneurial skills – creative, brokering, and championing skills – are more involved in innovation. Crucially, we differentiate between graduates employed in science, technology, engineering, and mathematics (STEM) occupations and those employed in business occupations. Using data on higher education graduates from 11 European countries, we find that, in both STEM and business occupations, high levels of creative skills are important to involvement in innovation. Higher levels of brokering skills are particularly important for graduates employed in STEM occupations, whereas higher levels of championing skills are particularly important for those in business occupations. We find, however, that the innovative potential of graduates with higher levels of intrapreneurial skills is not optimally utilized for innovation. Our study provides valuable insights for those selecting graduates for STEM and business occupations based on specific intrapreneurial skills to foster both product and process innovation, as well as for those in charge of designing higher education study curricula.     

Technological innovation versus non-technological innovation: different conditions in different regional contexts?

This study identifies the conditions that, at a regional level, facilitate the emergence of technological and non-technological innovation. One of the most promising lines in the discussion of the processes of regional innovation lies in explaining the different conditions of the various forms innovation process can take. We use fsQCA methodology to test the model. QCA is a method based on set theory that assumes the influence of certain elements in a specific outcome that depend on the combination of those elements; not just on the levels of the individual elements, as in traditional methods. First, we found that the absence of a single condition appears limiting for both types of innovation, which calls for customized innovation policies tailored to the regional context. Second, we found that some sets of innovation characteristics are sufficient conditions for regions to innovate. Among the selected sets, we found that the combination of firm collaboration and public and private R&D are sufficient for both types of innovation, which should be informative for regional policy. The fsQCA also identified alternative pathways—different for both types of innovation. Collaboration seems to be relevant since it is present in all the configurations for sufficient conditions.     

Does the presentation reform of R&D expenses in China ease financial constraints in corporate innovation?

Focusing on a sample of 9387 observations in China over the period 2016−2019, this paper empirically examines whether the presentation reform of R&D expenses that is changed from notes to income statements, mitigates corporate financial constraints of Chinese listed companies. Findings offer evidence that the financial constraints of firms decrease after the policy change, which is owing to the alleviation of information asymmetry. Further analysis reveals that the effect of the presentation reform on financial constraints is less prominent among companies that are state-owned, audited by the “Big four” and of higher institutional ownership. Overall, our study provides evidence supporting the influences of the format reform of financial reports and has implications for information users, regulators, and standard setters.     

The role of Technological Business Incubators in supporting business innovation in China: a case of regional adaptability?

This paper examines the extent to which both the support services of Technological Business Incubators (TBIs) and exogenous local factors facilitate the innovation activity of incubated new ventures. Using data on all 215 surviving Chinese incubators and their incubated firms from government surveys conducted over five consecutive years from 2009 until 2013, combined with information from nine case studies, we examine the effects of four incubator services on three levels of innovation in incubated firms, whilst also taking account of key exogenous factors. Technical service support from an incubator was found to have had a positive influence on all levels of innovation activity across all regions whilst incubator financial support had a positive effect on the making of more advanced innovations. The availability of venture capital had a significant impact on making lower order innovations whereas the availability of scientific knowledge resources influenced more advanced innovation activity. Whereas TBI support services in the more developed Eastern region are mainly concerned with leveraging external resources, those in the less developed Central and Western regions are more concerned with compensating for the lack of external resources to support innovation.     

Human resource management and firm performance in Europe through the lens of business systems: best fit,best practice or both?

This study uses the lens of Business Systems theory to explore the importance of geographic context on the link between human resource management and organizational performance. Basing the analysis on ‘HRM bundles of competitive advantage’, drawing evidence from a large-scale survey of European private sector businesses, and using multiple methodologies, we find three distinct geographic regions and 21 ‘HRM bundles of competitive advantage’. Of those bundles 10 were significantly related to performance in one or more regions. The results raise issues about the universal applicability of HRM-performance research and have implications for the standardization of HRM policies and practices within internationally operating organizations.     

The role of leaders in generating management innovation†

Abstract

This study provides an empirical insight into the level of management innovation in Australian service organisations, conceptualising management innovation using an integrative framework of management innovation which encompasses four dimensions, new managerial practices, processes, structures and techniques. In addition, the study contributes to the contingency-based literature by examining the role of leaders, in respect to both leadership style (initiating and consideration styles) and the use of controls (diagnostic and interactive use), as drivers of management innovation. Data were collected through a mail questionnaire distributed to 445 middle level managers. The findings show that leadership style influences management innovation with a more initiating style associated with the extent of use of new managerial techniques. Management innovation was also influenced by the use of controls with a more interactive (diagnostic) approach associated with the extent of use of new managerial processes and techniques (practices and structure). In line with the Competing Values Framework, the findings highlight the tension involved in the role of leaders in generating management innovation.     

In defense of ‘eco’ in innovation ecosystem

Innovation ecosystem is an increasingly popular but all too often ambiguously utilized concept across academia, policy and business. In their recent well-argued critique of the concept, Oh et al. (2016) called it a “flawed analogy” that is potentially dangerous for its lack of rigor. In this letter, we reflect on this critique and examine pathways to resolve some of the issues pointed out. We suggest that, at its best, the ecosystem analogy combines salient features from natural ecology to inform the design of system-level innovation management activities. This requires a great deal of conceptual and empirical rigor, and we outline a number of ideas for future research in this regard.     

Are Three Cracks in the Danish Model of Industrial Relations?

The Danish system of industrial relations bears a lot of similarity to the traditional Scandinavian model of industrial relations. In this article the authors argue that whilst the Danish model has weathered the forces of change remarkably well up to now, a number of recent developments have started to produce ‘cracks’ in the model.     

Are long‐term incentive plans an effective and efficient way of motivating senior executives?

Research on senior executive reward has typically explored the connection between pay, performance and the alignment of interests of executives and shareholders. This article examines the relationship between reward and motivation, drawing on the psychological, behavioural economics and decision‐making literatures. Based on an empirical study of FTSE 350 senior executives, the research examines whether long‐term incentive plans are an effective and efficient way of motivating executives, taking into account risk, time discounting, uncertainty and fairness. The article concludes that the way executives frame choices, perceive value, assess probability, evaluate temporal effects and respond to uncertainty means that long‐term incentive plans (LTIPs) are generally not efficient and are often not effective in meeting their objectives. It proposes that, in its current form, agency theory does not provide a sound basis for modelling senior executive reward, and suggests five areas for development.     

Design versus utility innovation: Is corruption sanding or greasing the wheels of innovation?

This paper studies whether corruption has a greasing or a sanding effect on the production of innovation. The main novelty lies in comparing the relative impacts on design versus utility innovation. On the one hand, corruption can undermine (sand) the expected returns from patents, whereas on the other hand, patent holders might be able to increase (grease) the scope and applicability of their patents. Using U.S. state-level data and controlling for bidirectional causality, results show the sanding effect of corruption with regard to utility patents, with the negative effect on design patents occurring only with a time lag.     

Impact of high-speed railway on urban resilience in China: Does urban innovation matter?

Based on calculating the urban resilience index from five aspects of economy, society, institutions, infrastructure, and ecology by adopting the entropy method, this study applies the time-varying DID model to systematically examine HSR's impact on China's urban resilience, on basis of which its heterogeneities and the mediating effect of urban innovation are also quantified. The findings reveal that: (1) HSR can significantly promote China's urban resilience, as supported by various robustness tests. (2) HSR can significantly improve economic and institution resilience of cities, but does not play a significant role on social resilience and infrastructure resilience, and has a negative effect on ecological resilience. (3) The driving effects of HSR on the resilience of core cities, large cities, and non-resource-based cities are more significant. (4) Urban innovation is an important channel through which HSR impacts urban resilience. The conclusions of this study can offer useful insights for China's future HSR planning and resilient cities construction.     

Collective and individual voice: convergence in Europe?

This paper uses longitudinal survey data from Britain, Germany and Sweden to examine whether, as some researchers have suggested, there has been a convergence internationally towards individual forms of employee voice mechanism and, if so, to measure the extent and trajectory of change. The paper begins by examining the importance of the employee voice issue. It then reviews competing accounts of the utility of different forms of employee voice and their manifestations within different varieties of capitalism. It is hypothesized that there has been a general trend away from collective and towards individual voice mechanisms; this reflects the predominant trajectory of managerial practices towards convergence with the liberal market model. This hypothesis is largely rejected. The data showed only very limited evidence of directional convergence towards individual voice models in the three countries. Collective voice remains significant in larger organizations, and although it takes a wide range of forms that include but go beyond unions and works councils, this is a positive finding for proponents of those institutions.     

Are innovation and R&D the only sources of firms’ knowledge that increase productivity? An empirical investigation of French manufacturing firms

The economic literature presents knowledge accumulation as one of the most important characteristics of innovation. The accumulation of knowledge arises from complex and dynamic interactions between a firm??s own internal capacity and external expertise. Research and development (R&D) remains important in the innovation process, but it must be integrated with knowledge from other sources, such as training and knowledge capitalization. This paper investigates the relationship between such knowledge sources and the productivity of French firms. Using asymptotic least squares, a Cobb-Douglas function including R&D, innovation, training expenditure and ISO 9000 certification is estimated for 1,213 French manufacturing firms. Our results show that innovation, training and ISO 9000 certification have a positive and significant impact on firms?? productivity.