The influence of the regional context on firms’ innovation patterns: evidence from Ecuador*

ABSTRACT

Using data from the Ecuadorean Innovation Survey of 2015, this paper identifies the innovation patterns that can be found in Ecuador. In addition, we analyse the influence of the regional innovation systems in determining these patterns. The results show that there are six differentiated patterns of innovation, although they all are related to the adoption and imitation of technologies. Finally, we observe that different regional characteristics condition the way in which firms organise innovation.     

Transition towards a decentralised energy system: analysing prospects for innovation facilitation and regime destabilisation in Finland

ABSTRACT

The Finnish energy system is rather centralised and its governing regime is characterised as exclusive. Recently, pressure to move towards decentralised, small-scale energy production has increased. This article utilises a combination of ideas from technological innovation systems and regime destabilisation and analyses the prospects for the transition towards a decentralised energy system in Finland's socio-economic context. We argue that the transition towards a decentralised energy system requires both innovation facilitation and proactive destabilisation of the existing regime, and therefore these issues must also be included in energy transition analyses.     

Functions of innovation systems as a framework to understand sustainable technological change: Empirical evidence for earlier claims

Understanding the emergence of innovation systems is recently put central in research analysing the process of technological change. Especially the key activities that are important for the build up of an innovation system receive much attention. These are labelled ‘functions of innovation systems’. This paper builds on five empirical studies, related to renewable energy technologies, to test whether the functions of innovation systems framework is a valid framework to analyse processes of technological change. We test the claim that a specific set of functions is suitable. We also test the claim made in previous publications that the interactions between system functions accelerate innovation system emergence and growth. Both claims are confirmed.     

Leaders in change : Solar energy owners and the implications for future adoption rates

Information on the characteristics of the initial wave of homeowners who installed solar energy systems is presented and then used to anticipate future solar market penetration patterns. Surveys of these adopters reveal high education and income levels; professional and executive occupations; economic, energy saving, and environmental concern as the principal purchase motivations; and high satisfaction levels. As a group, these individuals conform to the “early adopter” type identified in innovation diffusion research rather than the “innovator” type that would be expected at this early stage of commercialization. This characteristic, the influence of economic motivations, owners' high satisfaction levels, and the findings of other surveys indicate that widespread solar system adoption is probable if the initial high cost barrier can be reduced.     

Restructuring in the British Construction Industry: Implications of Recent Changes in Project Management and Technology

Theoretical and policy treatments of the processes and management of innovation in construction have neglected the complexity of the social practices in construction and the new conflicts between the parties that may arise from the introduction of organizational and technological change. Based on extensive interviews with contractors, consultants, suppliers and developers, this paper shows that new developments in project management and technologies have not eliminated the adversarial relations associated with the traditional contracting system but have created the potential for new conflicts in the construction sector that might affect innovation adversely. These problems may be further exacerbated by the impacts of these changes on skills and employment conditions in the construction industry. It is argued that these new conflicts suggest the need for research and policy initiatives to move beyond stylized generalizations of the industry.     

Cumulative causation in the formation of a technological innovation system: The case of biofuels in the Netherlands

Despite its worldwide success, the innovation systems approach is often criticised for being theoretically underdeveloped. This paper aims to contribute to the conceptual and methodological basis of the (technological) innovation systems approach. We propose an alteration that improves the analysis of dynamics, especially with respect to emerging innovation systems. We do this by expanding on the technological innovation systems and system functions literature, and by employing the method of ‘event history analysis’. By mapping events, the interactions between system functions and their development over time can be analysed. Based on this it becomes possible to identify forms of positive feedback, i.e. cumulative causation. As an illustration of the approach, we assess the biofuels innovation system in The Netherlands as it evolved from 1990 to 2007.     

Disentangling the effects of process and product innovation on cost and demand

ABSTRACT

We explore in this note different structural models of the impact of process and product innovation on firms' demand and production cost functions. We find that the introduction of process and product innovations affects them differently as could be expected. Both product and process innovation shift forward the demand for the products of the firm. Process innovation reduces production marginal cost, but not always. A possibility, that we cannot prove or reject with the current specification of our models and available data, is that process innovation associated with product innovation raise marginal cost. Interestingly, we also find that advertising significantly augments demand but does not affect production marginal cost. To obtain broader conclusions, richer data will be needed allowing an enlargement of the model, in which process and product innovations could be specified distinctively and well identified.     

技术创新系统的功能分析框架

近年来,以特定技术作为分析出发点的技术创新系统（TIS）思路被提出。该思路强调对创新系统运行及其目标实现具有重大作用的活动（activities）或过程（processes）,并称之为创新系统功能。系统功能之间既可以形成良性循环,加速系统的成长;也可能由于某个功能的缺失或不足而出现恶性循环,阻碍系统的发展,甚至使之崩溃。良性循环和恶性循环在一定的条件下会相互转化。在介绍和分析系统功能组合以及功能之间互动机制的基础上,提供了一个评估技术创新系统功能运行的分析框架,以期从功能的角度识别导致系统失灵的原因,为政策制定者提供干预目标。     

The evolutionary process of disruptive green innovation in China: evidence from the electric bicycle sector

ABSTRACT

To achieve market-oriented green innovation, this paper explores the evolutionary path and driving factors of disruptive green innovation using an exploratory case study in which data are collected from the Luyuan electric bicycle company in China. The results reveal that disruptive green innovation is a dynamic and cumulative process. Entrepreneurship drives to open new markets. Competition within the industry drives to expand the new markets. Competition among industries and the subsidy policy drive to encroach on mainstream low-end markets. Technology and marketing drive to encroach on mainstream high-end markets. To scholars, our research contributes to the literature on green innovation by uncovering the application of disruptive innovation theory in the field of green innovation. To practitioners in firms, this evolutionary process can function as a frame of reference, enabling the tailoring of a market-oriented strategy for green innovation.     

Functions of innovation systems: A new approach for analysing technological change

The central idea of this paper is that innovation systems are a very important determinant of technological change. We describe that the emergence of a new innovation system and changes in existing innovation systems co-evolve with the process of technological change. Therefore, it is necessary to create more insight in the dynamics of innovation systems. Traditional methods of innovation system analysis that mainly focus on the structure of innovation systems have proven to be insufficient. Therefore, we propose a framework that focuses on a number of processes that are highly important for well performing innovation systems. These processes are labeled as ‘functions of innovation systems’. After explaining this framework and embedding it in existing literature, we propose a method for systematically mapping those processes taking place in innovation systems and resulting in technological change. This method can be characterized as a process analysis or history event analysis. Clarifying examples are taken from the empirical field of Sustainable Technology Development.     

Identifying Neo-Schumpeterian Innovation in Service Firms: A Conceptual Essay with a Novel Classification

The identification of innovation in service firms is problematic since there is no consensus of opinion on its conceptualization. Recent papers suggest both distinctive features of innovation in services and distinctive types of service innovation. This article reviews and evaluates these findings from a Schumpeterian perspective. The evaluation justifies conceptualizing service innovation as a specific case of service development with a reference to Schumpeter, but not as strict as proposed by Drejer (2004) [Drejer, I. (2004) Identifying Innovation in Surveys of Services: A Schumpeterian Perspective. Research Policy, 33, 551–562]. Despite the simultaneity of production and consumption in services, this article claims that the distinction between product innovation and process innovation should be preferred to other ways of classifying innovation in service firms. Finally, changes in the denomination of services are advanced as a key to the identification of development and innovation in service firms.     

Modes of innovation in knowledge-intensive business services evidence from Lombardy

The present paper investigates the sectoral variety and common patterns across different typologies of knowledge-intensive business services (KIBS). We examine this issue by considering the case of Lombardy, a highly developed manufacturing area the industrial activities of which are experiencing a pervasive transformation towards higher knowledge content, demanding stronger and more pervasive support by advanced services. Drawing on an original survey-based firm-level dataset, we analyze innovation patterns across KIBS, evaluating the explanatory power of traditional classifications of the service sector, as well as the heterogeneity driven by firm and market specific characteristics. Our findings highlight four profiles of KIBS: interactive innovation mode, product innovation mode, conservative innovation mode and techno-organizational innovation mode. When examining in more depth the variables that are associated with cluster membership, we find that firm strategy is the most significant determinant, with size, customer location, and training also playing a role in defining cluster specificities.

Sectoral systems of environmental innovation: An application to the French automotive industry

This article seeks to show how a sectoral system approach may contribute to the analysis of the determinants of environmental innovations. By using Malerba's [F. Malerba: Sectoral systems of innovation and production, Res. Policy Vol. 102, 845-859, (2002)] concept of sectoral system of innovation and production, we develop a sectoral framework based on three building blocks: technological regimes, demand conditions and environmental and innovation policy. Within this framework, the sectoral patterns of environmental innovation result from the interplay between these three blocks. The conceptual framework is applied to the case of the French automotive industry, with a specific focus on the development of low emission vehicles. The analysis shows how technological regime and demand conditions lead to technological inertia, and so to a strong persistence of the dominant design. Finally, environmental and innovative policy are considered in an integrated way, so that we can study how they influence technological regime and demand conditions, and in the meantime how they are conditioned by these two blocks.     

Institutions and industrial policy in Brazil after two decades: have we built the needed institutions?

ABSTRACT

This paper aims to examine the design and implementation of industrial policy in Brazil based on their capacity to affect the prevailing institutions. We argue that the main reason for the failure of policies in Brazil, and in Latin America, is their inability to induce persistent changes in firms’ innovative behavior. Based on the analysis of national innovation indicators, and on previous empirical studies, we demonstrate that the Brazilian industrial policy was not able to change the prevailing conventions. The main problems related to this fragility are: institutional problems and related to industrial policy development conventions; serious coordination problems; maintaining a macroeconomic policy that is not convergent toward industrial policy efforts; policy instruments that were not able to change prevailing conventions, such as low R&D and innovative expenditures; a set of strategic choices that are inconsistent with innovation, technological catch-up and structural change.     

Transformation of science and technology systems into systems of innovation in central and eastern Europe: the emerging patterns and determinants

This paper explores patterns of transformation of socialist Science and Technology (S&T) systems into post-socialist systems of innovation and their determinants. First, we reinterpret the socialist period from a system of innovation perspective by revisiting the socialist S&T system, and by pointing to its general features as well as to its national and sectoral variations. Second, we develop a conceptual model to help to understand the factors that are determining the emergence of systems of innovation. Systems of innovation in central and eastern Europe (CEE) are being shaped through the interaction of micro-specific, sectoral, national and regional determinants. At present, sectoral differences and micro-specific determinants seem to be the strongest in this process. The process of development and selection of network organisers is at the core of the emergence of systems of innovation in CEE. The most active network organisers are foreign firms. New production and innovation networks, especially in central Europe, are most often foreign-led.     

The division of innovative labour: when does customer codevelopment contribute to firm innovation performance?

ABSTRACT

Innovative firms often involve customers in their product development to drive innovation outcomes. However, few have empirically examined how this division of innovative labour affects innovation performance. Drawing on prior studies and the knowledge-based theory of the firm, we theorise conditions under which customer codevelopment benefits innovation performance. By examining panel data from Swiss firms, we provide the first empirical account of the performance effects of customer codevelopment based on a large-scale survey sample. We find that a firm's absorptive capacity reinforces the relationship between customer codevelopment and innovation performance. We elaborate on the implications of these findings for the literatures on customer codevelopment and open innovation.     

The framework of ‘local productive and innovation systems’ and its influence on STI policy in Brazil

ABSTRACT

Throughout its twenty years of existence, a Brazilian research network, RedeSist, has developed and improved the theoretical and methodological framework of National Systems of Innovation. The first aim of this article is to present RedeSist’s focusing device of Local Innovation and Production Systems (LIPS), a combination of the Systems of Innovation framework with the contributions of the Latin American Structuralist Approach and to explain the main tools devised to capture collective and systemic processes of production and innovation, taking into account that every LIPS is inserted in specific, local, regional, national and global systems. The second objective is to discuss the Brazilian experience in designing and implementing LIPS policies as part of its industrial and innovation policies. The concluding remarks attempt at recuperating the most important arguments of the discussion and at highlighting the advantages of creating and using contextualized and systemic theories, concepts, indicators and policy models.     

Direct and configurational paths of open innovation and organisational agility to business model innovation in SMEs

ABSTRACT

Discussions on opportunities and enablers have remained lacking despite the continued growth of business model innovation (BMI) research. In order to investigate the formation mechanism of BMI in small-medium enterprises (SMEs), we proposed an integrated model, which included factors derived from organisational internal resources and capabilities via the resource-based view (RBV) and dynamic capabilities view (DCV). Structural equation model (SEM) and fuzzy set qualitative comparative analysis (fsQCA) were utilised to test the survey data collected from 245 SMEs in China. SEM results support the hypotheses, except that on the impact of outbound open innovation on market capitalising agility and on BMI. The fsQCA analysis revealed that four configurations of open innovations and organisational agilities can sufficiently explain high levels of BMI, and two configurations of these factors lead to low BMI. The theoretical and practical implications of such findings were also provided.     

Sharing a common resource in a sustainable development context: The case of a wood innovation system

This case study of the Aquitaine wood filière emphasizes the need to integrate a stronger consideration of natural resources in the analysis of innovation systems. The analysis focuses on eight eco-innovation projects representing the Aquitaine wood filière, and carried out under the aegis of the Industries and Maritime Pine of the Future ‘competitiveness cluster.’ We show that dependence on the wood natural resource can configure the limits, objectives and expected performance of such innovation systems. While previous approaches have considered similar innovation systems from territorial, sectoral or technological perspectives, we argue that centering the analysis on this natural resource better enables consideration of the technological and environmental tensions and risks that are likely to destabilize the system.     

The interactions between national systems and sectoral patterns of innovation

Do national and sectoral innovation systems interact with each other? The paper explores this unexplored question by carrying out a cross-sector cross-country analysis of European systems of innovation in the 1990s. The empirical study takes Pavitt’s (Res Policy 13:343–373, 1984) taxonomy as a starting point, and it investigates the cross-country variability of Pavitt’s sectoral patterns of innovation. The analysis leads to three main results. First, the various technological trajectories show large differences across countries, due to the influence of national innovation systems. Second, there is evidence that the interaction between national systems and sectoral patterns of innovation constitutes an independent source of variability in the sample. Third, the analysis leads to the identification of eight sector- and country-specific technological trajectories in European manufacturing industries, and, based on that, proposes a refinement of Pavitt’s taxonomy. The refined taxonomy, in a nutshell, suggests that sectoral systems must be supported by and interact with their respective national systems in order to become industrial leaders.