Does organizational innovation moderate technical innovation directly or indirectly?

We find a divergence in the literature regarding the treatment of how organizational innovation affects innovation and performance. One point of view suggests that organizational innovation impacts performance only, while the other suggests that it impacts technical innovation and firm performance. We use the framework of Crepon-Duguet-Mairesse (CDM) to control for endogeneity; we also use two different measures for organizational innovation. Our contributions to the literature are: the CDM framework in this context is novel; prior research either did not/could not control for endogeneity whereas the CDM framework mitigates this. To discriminate between the direct and indirect approach, we implemented AIC and BIC tests. We find that for the innovation equations in all cases and regardless of which organizational innovation variable is used the direct model is preferable. In contrast, for the productivity equations, we find that in all cases the indirect model is preferable. Thus we do not have a definitive statistical test for which model is superior. Yet, it is our contention that organizational innovation is a new routine within the firm that should impact technical innovation. Furthermore, organizational design theories deduce that organizational innovation should impact technical innovation-implying that the direct model is indeed preferable.     

The CDM framework: knowledge recombination from an evolutionary viewpoint

ABSTRACT

Since Crepon, Duguet, and Mairesse published their ground-breaking article (‘Research, Innovation and Productivity: An Econometric Analysis at the Firm Level’, 1998), the CDM framework has known a large diffusion, despite being published in a non-indexed journal. The present study is an exploration of the spread and recombination of ‘knowledge’ in the ‘CDM universe’, comprising all papers in Scopus indexed journals citing CDM or/and CDM cited papers. We assess first the speed and range of diffusion of CDM and investigate next the ‘origins’ and further ‘genealogical’ make up of the knowledge recombinations within the CDM universe. We find that CDM is cited by a growing number of papers, which spread over a variety of fields, and that it compares very well with the most cited comparable articles in indexed journals in its domain of research. We further find that the CDM universe is mainly constituted of three large clusters and for each of them we are able to identify knowledge paths going from the CDM and earlier cited papers to the subsequent main citing papers. We intend to provide a detailed interpretation of these findings in future work.     

CDM using a cross-country micro moments database†

ABSTRACT

This note starts with a retrospective view of the CDM model [Crépon, Bruno, Emmanuel Duguet, and Jacques Mairesse. 1998. “Research, Innovation and Productivity: An Econometric Analysis at the Firm Level.” Economics of Innovation and New Technology 7 (2): 115–158.] as an econometric framework for studying innovation and growth. A narrative interpretation of CDM describes the chain from innovative activity at firms to increases in welfare and makes links to the policy environment. Filling in missing pieces of the innovation to productivity puzzle has a heavy data burden. The paper makes use of the micro moments database (MMD) that allows observing micro-level behavior and macro-level impacts of innovation and production in a large selection of European countries. Two examples are given of research using the MMD. First, we estimate a simplified system of innovation and production equations that can be applied to average firm choices and outcomes, as well as to industry or aggregate outcomes. We find that innovative activity contributes to aggregate productivity even while the average effect at the firm level is insignificant. Next, a cross-country exploration is made that shows heightened productivity effects of combined use by firms of various enterprise-level information and communications technologies.     

Human capital,innovation and productivity in Colombian enterprises: a structural approach using instrumental variables

ABSTRACT

In this paper we explore the R&D–innovation–productivity linkage for the Colombian manufacturing industry, paying special attention to the role of human capital. Using data from two firm-level surveys, the Survey of Development and Technological Innovation (EDIT) and the Annual Manufacturing Survey (EAM), we extend the model of Crépon, Duguet, and Mairesse [1998. ‘Research, Innovation and Productivity: An Econometric Analysis at the Firm Level.’ Economics of Innovation and New Technology 7 (2): 115–158] (hereafter CDM) by including human capital at the investment decision stage. We implement an instrumental variable methodology to correct the potential endogeneity that may arise with the inclusion of human capital. Our results suggest that human capital has a causal effect on research and development (R&D) investment decisions, the innovation behavior of the firm, and increases the labor productivity of the firm. The conclusions highlight the relevance of human capital in the surrounding literature which stands in contrast to prior work that has not included this variable.     

Business model schema: business model innovation tool based on direct causal mechanisms of profit

ABSTRACT

Defining business model as the logic/mode/way/framework to seek profit/money and glancing at the evolution of concept business, this paper develops a business model schema (BMS) as a holistic two-dimensions multi-level tool/method for business model innovation (BMI) based on the direct causal mechanisms of profit (DCMP). First, this paper takes DCMP as the logical/theoretical framework by which business model innovation process is identified and specified. And according to that process, it develops a BMS, illustrates an example of BMS to show up its practical usefulness, compares the similarities and differences between BMS and the existing powerful one business model canvas (BMC), and finally asserts that BMS must be a good and useful method in theory and practice because it stands on DCMP that ensures the genuine causality of profit and also it turns out practically useful, recalling the Kurt Lewin’s maxim (1945), “There is nothing so practical as a good theory.     

Assessing measurement errors in the CDM research–innovation–productivity relationships

ABSTRACT

The Crépon-Duguet-Mairesse 1998 article, known as CDM, initiated a structural econometric framework to analyze the relationships among research, innovation and productivity, which has been estimated most generally on the basis of cross-sectional innovation survey-type data. Some econometric implementations of the CDM approach have suggested that such data give useful but imprecise measures of the innovation output (share of innovative sales), and to a lesser degree of the innovation input (R&D). These ‘measurement errors’ may result in attenuation biases of the estimated R&D and innovation impact elasticities in the two basic CDM ‘roots’ relations of R&D to innovation and innovation to productivity, as well as in the extended production function à la Griliches linking directly R&D to productivity. Using a panel of three waves of the French Community Innovation Survey (CIS), we assess these biases and the magnitude of the underlying measurement errors, assuming mainly that they are ‘white noise’ errors. We do so by comparing two pairs of usual panel estimators (Total and Between) in both the cross-sectional and time dimensions of the data (Levels and Differences). We find large measurement errors on innovation output in the innovation–productivity equation, resulting in large attenuation biases in the related elasticity parameter. We also find smaller but sizeable measurement errors on R&D, with significant attenuation biases in the corresponding elasticity estimates, in the R&D–innovation equation and the extended production function. Simulations suggest that the measurement errors on innovation and R&D are unaffected by similar measurement errors on the capital variable.     

Innovation in knowledge-based professional service firms. An integrated conceptual model*

ABSTRACT

The current paper offers a new conceptual model to understanding innovation processes in professional service firms, to make hidden relationships more explicit and to find out what are the issues still unexplored. The paper employs a systematic literature review, and draws upon original categorizations of extant literature, to identify main processes for each category of PSFs. It unveils connections among a wide range of factors setting a conceptual model for innovation pathways and highlighting neglected questions relevant from both the theoretical and the practical perspectives.     

Incorporating innovation subsidies in the CDM framework: empirical evidence from Belgium

ABSTRACT

This paper integrates innovation input and output effects of R&D subsidies into a modified Crépon–Duguet–Mairesse (CDM) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private R&D investment. In addition, results point to positive output effects of both purely privately funded and subsidy-induced R&D. Furthermore, we do not find evidence of a premium or discount of subsidy-induced R&D in terms of its marginal contribution on new product sales when compared to purely privately financed R&D.     

A framework of disruptive sustainable innovation: an example of the Finnish food system

Disruptive innovations are perceived necessary for accelerating sustainability transitions. However, it is not always clear what exactly is meant by it, what is to be disrupted, and by whom. Socio-technical transition research on pays too much attention at the technological niche-innovations in the production, and overlooks business model innovation and user practices in the consumption, whilst management literature on disruptive innovation falls short in the scale and scope of disruption in terms of systemic outcome. Thus, the first aim of the paper is to synthesise the extant literature and put forward a general practice-based view on disruptive sustainable innovation. The second aim of the paper is to use empirical data to elaborate the theoretical framework in the Finnish food system context. Four firm-level cases provide empirical scrutiny to each type of disruptive sustainable innovation in the food system and shed light on the interlinked practices of producer-entrepreneurs and citizen-consumers.     

The impact of adoptive management innovations on medium-sized enterprises from a dynamic capability perspective

ABSTRACT

This paper focuses on the nature of adaptive managerial innovation and its effects on organisational dynamic capabilities. Using an original model based on 16 items and PLS – SEM instrument on a sample of 261 Romanian companies, we conclusively demonstrated that dynamic capabilities are an important determinant for management of innovation. Our study further reveals the positive effects of sensing, absorptive and integrative capabilities upon the innovation process. We consider that our study contributes to the development of pragmatic approaches on organisational dynamic capabilities and management of innovation literature.     

Catch-up strategy of latecomer firms in Asia: a case study of innovation ambidexterity in PC industry

ABSTRACT

Over the last decade, more and more East Asian firms have moved beyond imitation and are delivering innovative products and services to the market. This study examines (a) how a latecomer firm in East Asia transformed its business model in pursuit of manufacturing its own brand and (b) how it managed its exploration and exploitation of the market and technology in response to growth and competition. Given the lack of research on firms transitioning from contract manufacturing (CM) to own-brand manufacturing (OBM), this study offers fresh insights into how Acer, a leading Taiwanese original equipment manufacturer (OEM), has pursued new ways of creating value using an innovation ambidexterity strategy to maximise its customer value and boost performance.

Acer is chosen for this case study because of its significance and impact in the global PC industry. Data were collected through interviews and secondary data analysis. Our findings show that innovation ambidexterity is a deliberate transition process, taking firms years to reshape their business models. Our findings also present a viable solution to sustainable competitive advantage and keys to firms’ renewal in face of environmental change. This study contributes to the innovation management literature, and the use of the innovation ambidexterity framework examines how firms explore new ways of creating and capturing value and face challenges.     

企业原始创新驱动路径研究——基于TOE框架的组态分析

企业原始创新是解决科技“卡脖子”问题的重要手段，也是推动科技自立自强的重要举措。在TOE框架下，结合现阶段企业原始创新特点，提出分析企业原始创新绩效差异的整合性框架，并采用fsQCA方法进行深入分析。结果表明，实现企业高原始创新的组态路径有5条，分别是技术与市场主导下的技术管理与原始创新氛围驱动型、技术与市场主导下依托政策的高管支持与技术管理驱动型、技术与市场主导下的原始创新氛围与政策驱动型、技术主导下依托政策的技术管理与组织因素驱动型以及市场主导下依托技术管理的原始创新氛围与高管支持驱动型；从企业高原始创新组态路径中发现，技术、组织和环境3个层面要素之间具有互补替代关系，可为处于不同场景下的企业获取高原始创新绩效提供有益参考；导致企业非高原始创新的组态路径有两条，且都包括非高技术能力、非高程度高管支持、非高市场导向和非高政策导向，表明技术、组织和环境层面要素的缺失导致企业原始创新绩效不高。结论可为驱动企业原始创新提供重要理论依据。     

The missing link between innovation and performance in Brazilian firms: a panel data approach

This study aims to verify if there is a positive relationship between innovation and productivity and/or profit in Brazil using a recursive model in line with the Crépon, Duguet and Mairesse (CDM) model. Using a rich combination of three databases, this paper considers a sample of more than 10,000 Brazilian industrial firms and the period 2001–2008. Besides using R&D expenditure as a measure of innovation input, this study also tests the technical-scientific personnel stock as a more appropriate measure of innovative effort in emerging countries. This variable considers the tacit knowledge intrinsic to the worker and corrects a possible measurement error bias in the R&D expenditure variable. The empirical strategy uses a reduced form of the CDM model in a panel data structure to provide consistent estimates as it controls for selectivity, simultaneity and endogeneity due to unobserved firm effects. There are still few studies that apply the CDM model for panel data, especially regarding developing countries. The main results suggest that technical-scientific workers positively affect the firms’ probability to innovate while R&D expenditure has no effect. The results also highlight the absence of the effect of innovation on productivity and profit, suggesting a missing link between innovative efforts and Brazilian firms’ performance.     

Collaboration for innovation and project failure. A dynamic analysis

The aim of this paper is to investigate the hypothesis that there is a complex and bidirectional relation between collaboration and failure in innovation projects. On the one hand, collaboration in innovative activities may increase the likelihood of project failure. At the same time, the failure in innovation projects may induce the firm to collaborate in order to overcome the problems that determined the failure of innovation projects (induced collaboration). Up to now, we are not aware about the existence of any empirical paper analysing the interaction between these two mechanisms. This paper aims at filling this gap by providing a motivation for the induced collaboration and testing its empirical relevance in a dynamic framework. The empirical analysis is carried out by using two consecutive German Community Innovation Surveys referring to the period 2006–2010. The empirical results support the hypothesis of a bidirectional causal relationship between collaboration and failure.     

CEO调节焦点、绿色创新与企业绩效研究

在国内外研究的基础上,构建了特质—行为—绩效关系模型。选取227位CEO为研究对象,通过构建结构方程模型,实证分析了CEO调节焦点、绿色创新与企业绩效之间的关系。结果表明,CEO促进型焦点对企业绩效具有正向影响,而预防型焦点具有负向影响;绿色产品创新、绿色工艺创新对企业绩效均有显著正向促进作用;绿色产品创新、绿色工艺创新在促进型焦点对企业绩效的影响中起部分中介作用。     

Conditional factors Pushing catch-up across developed and emerging countries in the nanotechnology sector, 2000–2010

ABSTRACT

The aim of this article is to test national and sectorial technological and innovation capability factors, as well as social capability indicators, which could explain a possible conditional convergence across countries in nanotechnology within the context of a model of innovative technological knowledge β convergence. Based on growth convergence models, our proposal also takes into account the Schumpeterian theory, the National System Innovation –NSI– approach, and particularly the sectorial system of innovation and the technological catch-up hypothesis, as well as theoretical and empirical literature on conditional convergence. The findings allow us to confirm that new nanotechnology knowledge convergence is conditioned by a higher growth rate of technological capabilities in nanotechnology: growth from the initial level of patents granted, cumulative knowledge, and links to technological and scientific activities. Finally, as regards social capabilities, only the institutional weakness variable (corruption index) associates negatively with β convergence. As an emergent paradigm, we realize that convergence and catch-up are starting processes, which could allow less technologically developed countries to benefit from higher growth of some of the factors identified.     

Is there a profit premium for market-oriented firms? A panel data investigation

ABSTRACT

This paper provides an empirical investigation of the impact of market orientation on firms' economic performance during the period 1998–2012 using a panel of Italian manufacturing firms. We introduce a dynamic concept of market orientation, in that we define a market-oriented firm as one that persistently undertakes product and marketing innovation, while at the same time introducing organizational changes and training efforts to manage and improve its knowledge assets over the long term. This notion of market orientation is therefore crucially related to the so-called dynamic capability approach. The related empirical model shows that being a market-oriented firm significantly affects profitability, in a framework in which this latter is simultaneously estimated with productivity, thus allowing for more precise estimates of the profit premium which is earned accordingly.     

The sources and aims of innovation in services: Variety between and within sectors

Services dominate economic activity, but remain under-researched by analysts of innovation and technological change. The early 'one size fits all' theories of innovation in services have in recent years given way to an appreciation that services are diverse, not least in their innovation activities. This paper draws on recent empirical evidence from large-scale surveys undertaken in 13 western European countries, to investigate the extent and the sources of innovation in five services sectors. The analysis includes the extent to which services innovate, and amongst innovators the extent to which they engage in R&D and collaborative arrangements for innovation. The analysis supports the recent literature which emphasises significant differences between sectors in their pattern of innovation behaviour, but also highlights significant intra-sectoral differences in innovation behaviour. This intra-sectoral variation deserves much fuller investigation in the future.     

An investigation over inbound open innovation in SMEs: insights from an Italian manufacturing sample

ABSTRACT

Building on the Open Innovation (OI) framework, the purpose of this paper is to examine the R&D inbound model of small and medium enterprises (SMEs). Specifically, we focus on the impact of different horizontal R&D collaborations on product innovation and innovation performance. Hypotheses are tested using a Probit/Tobit regression on an Italian sample of 2591 manufacturing SMEs. Our analysis shows that collaborating with different horizontal R&D partners brings to different innovation outcomes. In particular, R&D collaboration with universities has a positive impact on product innovation, but not on innovation performance. Whereas, R&D collaboration with research centres and other private companies has a positive impact on both product innovation and innovation performance. Our findings provide implications for SMEs managers and entrepreneurs who have to decide between R&D partners for their innovation strategy. Avenues for future research are discussed.     

Profit margins and business cycles in the Brazilian industry: a panel data study

The paper investigates the relationship between profit margins and business cycle in the Brazilian industry during the 1992–1998 period, taking as reference a dynamic panel data model founded around a conjectural variation framework. The empirical results indicate procyclical behaviour of profit margins for the aggregate business cycle but is less clear in the case of sector-specific business cycle variables. Among the most robust results, one can highlight the roles of lagged profitability and import intensity and the negligible role of union density. Schmalensee in (American Economic Review 75, pp. 341–51) outlined three theoretical interpretations associated with the empirical model (classical, revisionist and managerial). Econometric tests on the related restrictions do not allow one to exclusively legitimate any of the three interpretations.