Evaluating innovation networks in emerging technologies

Interorganisational innovation networks are increasingly important for innovation in emerging technology fields. The performance of such networks can have a large impact on the future development of emerging technologies. A useful framework for the evaluation of innovation networks however does not yet exist. In this paper, such a framework is developed, using elements of the social network analysis literature and the resource-based view. This framework is subsequently applied to compare two policy-driven innovation networks: 1) the Center for Translational Molecular Medicine; and 2) the BioMedical Materials program. Based on this first empirical exploration of the framework implications for management and further policy development are formulated.     

Collaborative innovation and policy support: the emergence of trilateral networks

ABSTRACT

The present article models the critical factors for a successful and evolutionarily stable National System of Innovation. We simulate a model, against the background of increasingly complex technologies, in a national process of agents’ interactions with social-dilemma characteristics. In particular, the articleinvestigates the emergence of a trilateral collaborative innovation alliance among ‘enterprise’, ‘university’ and ‘government’. We apply a tripartite evolutionary game with a replication process and explore the role and options of the public policy agent to support collaboration on innovation. We find that some policy mix, in particular, a combination of (1) public rewards for cooperation, (2) public punishment for non-cooperation and (3) settings of public cost controls and tax income from innovation, can promote broad and sustainable innovation alliances. For instance, threats of strong punishment, even with low public rewards for cooperation, may promote the formation of a collaborative innovation alliance. We run some sensitivity analyses of the results through parametric variation of two critical factors of the model, knowledge spillover and output elasticity of knowledge input. We find some qualifications for the velocity of the process.     

Regional social capital: Embeddedness, innovation networks and regional economic development

Technology is a necessary but not a sufficient condition for regional economic development. Regional innovation networks transform technology into competitiveness of firms and thus contribute to economic development. Intangible assets, such as social capital, decide how effective regional innovation networks function. Differences in regional social capital thus help explain regional differences in economic development. Regional social capital originates from the embeddedness of firms in regional webs of social relations. The norms, values and customs of these networks facilitate collaboration for mutual benefit. As innovation is increasingly a network effort, embeddedness and social capital also help explain how and why networks of innovating companies are successful, as the case study of the Stimulus Cluster Scheme shows.     

Competition enhancing regulation and diffusion of innovation: the case of broadband networks

Regulating former telecommunications monopolies has often been legally and technically complex. Among other options, incumbent operators were mandated to share, sell or split their infrastructure thus encouraging market entry. Given the importance of broadband technologies, competitive access has become a policy priority. We use data from 167 broadband markets over a period of 11 years. Firm and intra-platform competition on the incumbent’s legacy network (Digital Subscriber Line) accelerate adoption of broadband, whereas competition over different access technologies does not. The duration of the different regulatory effects shows that simpler network changes have a long-lasting yet delayed effect compared to technically demanding ones.     

试议国家创新体系中技术创新与制度创新的相互关系

建立在熊彼特的创新思想基础上的技术创新经济学和制度创新经济学,从经济运行角度来看,对于在市场经济条件下的国家创新体系建设无疑具有重要的科学指导意义。文章在总结前人研究成果的基础上,对国家创新体系中技术创新与制度创新的关系提出新的研究视点。     

2011年比利时科技发展与创新成果

2011 年比利时科技发展态势平稳,以科技创新体系建设为核心的各大区科技政策不断完善。比利时生物技术专利申请数占欧盟国家申请总数的 11%;企业技术创新率达 48.2%,其以此为引导的经济指数排名在全球位居第 11 位;企业签署创新合作协议的数量居欧洲发达国家首位。比利时在研究与创新上硕果累累,如首次实现了加速器和反应堆成功连接,创造了加速器驱动系统（ ADS ）世界第一个示范模型;成功开发了在200 毫米硅片上的氮化镓／氮化铝镓层芯片;等等。比利时各级政府高度重视科技创新和科技成果产业化,其研发成果向外国市场推广的需求强烈,因此,中国和比利时科技合作存在着广泛的有利机遇和空间。     

Does cooperation absorb complexity? Innovation networks and the speed and spread of complex technological innovation

A new technological paradigm which rewards cooperation in the innovation of complex technologies seems to have emerged in recent years. Global reach and greater innovation speed are said to be key benefits of network-based complex innovation. By bringing together multiple sources of knowledge and experience, networks of innovative firms and other organizations increasingly appear to be able to absorb the combination of spatial and temporal uncertainty. But what is the empirical evidence underpinning this new paradigm? Beyond case studies and the experience of individual researchers, what do we know about cooperation and the pace and place of complex innovations? Examination of available empirical research fails to confirm the theory that cooperation enhances either the globalization of innovation or its speed.     

依靠自主创新推动西部欠发达地区跨越式发展

分析我国西部欠发达地区经济科技落后的表现及原因,阐述自主创新对于改变落后状况,实现跨越式发展的现实意义和可行性,以及西部欠发达地区如何通过自主创新实现超常规、跨越式发展。     

Complementarities in innovation policy

This paper develops a framework for testing discrete complementarities in innovation policy using European data on obstacles to innovation. We propose a discrete test of supermodularity in innovation policy leading to a number of inequality constraints. We apply our test to two types of innovation decisions: to innovate or not, and if so, by how much. We find that the evidence regarding the existence of complementarity in innovation policies depends on the phase of innovation that is targeted (getting firms innovative or increasing their innovation intensity) as well as on the particular pair of policies that is being considered. The two phases of the innovation process, i.e. the probability of becoming an innovator and the intensity of innovation, are subject to different constraints. Interestingly, there seems to be a need to adopt a package of policies to make firms innovate, while a more targeted choice among policies is necessary to make them more innovative.     

Building blocks in the economics of mandates

The paper constructs an asymmetric information model to investigate the efficiency and equity cases for government mandated benefits. A mandate can improve workers’ insurance, and may also redistribute in favour of more ‘deserving’ workers. The risk is that it may also reduce output. The more diverse are free market contracts—separating the various worker types—the more likely it is that such output effects will on balance serve to reduce welfare. It is shown that adverse effects can be reduced by restricting mandates to larger firms. An alternative to a mandate is direct government provision. We demonstrate that direct government provision has the advantage over mandates of preserving separations.

Normative expectations in systems innovation

This paper is concerned with the way technological expectations are generated, articulated and deployed in processes of large-scale socio-technical change. We argue that expectations are intrinsic to all social action, so that visions of the future are both ubiquitous and context-specific. Agents will act in relation to private visions of the future that are complexly related to shared or collective visions. Characteristic features and forms of visions as they relate to socio-technical regimes are identified, and the specific roles visions play in the context of actor networks engaged in processes of systems innovation are discussed. Visions are seen as 'bids' that are deployed by actors in processes of coalition-formation and coordination. Examples from a range of visions of more sustainable systems are used to illustrate the main arguments. The paper ends by discussing the normative features of socio-technical expectations.     

Financial innovation in the UK

This study employs a national survey of over 1100 British financial firms to ascertain the determinants of financial innovation and their sales success using the logit and the generalized Tobit models. We find that the likelihood of financial innovation rises with the size of financial firms, employee education, greater expenditure on research and development, the availability of finance and the extent to which firms cooperate with each other. Perceptions of economic risk and innovation costs are also influential. R&D, cooperation and human capital are the main variables driving the success of financial innovation, measured by the percentage share of innovations sold. Firms in London/the south have a significantly greater tendency to innovate, though Scotland also does well. Stock broking, fund management and related activities are more innovative than firms in the financial intermediation and pension/insurance sectors.     

Business innovation in Russian industry

This article reports the results of a quasi‐longitudinal survey of 2,800 top corporate executives of Russian industrial enterprises, presenting a snapshot of current innovation attempts in Russian enterprises and indicating economic and institutional factors that foster or hinder innovation. Russian CEOs see the necessity of profound changes in many areas of enterprise management and are not afraid of such changes, as innovations are perceived to be the best competitive weapon. However, their resources for radical innovation are rather limited. Beside lack of finance, the superimposed narrower strategic focus, the rigidities of local business networks, the weakness of external infrastructure for innovation and the absence of state support seriously impede attempts to implement radical changes. However, in every Russian industry surveyed there is a visible presence of innovative companies, which constitute 15–30% of all large and medium‐size companies. Moreover, increasing imports and the growing number of foreign subsidiaries in Russia will continue to push Russian companies towards more intensive changes in all areas of enterprise management.     

Matrices with dominating diagonal blocks

In mathematical economics we appeal frequently to the theory of matrices with dominating diagonal elements. This paper generalizes that theory to the case of matrices with dominating diagonal submatrices which appear to possess the same fundamental properties. Matrix dominance is defined, and its connection with “bigness” of a matrix is established. Quick checks for dominance are developed. The standard theorems associated with dominating diagonal matrices are shown to be special cases of more general results. Examples are presented to illustrate the wide range of possible application.     

Top management team social capital,exploration-based innovation,and exploitation-based innovation in SMEs

Despite increasing interest in ambidextrous innovations, mainstream literature has excluded discussions on developing and combining exploratory innovation (ERI) and exploitative innovation (EII) in the small- and medium-sized enterprise (SME) sector. This issue from the SME perspective is worth addressing. Recent studies have conceptually argued the importance of the top management team (TMT) in managing ambidextrous innovations. Building on this argument, we explore how the top manager external social relationships foster ambidextrous innovations and whether internal social relationships among senior executives can be used to integrate such innovations. The results show that (a) distinct external managerial relationships cause differential innovations for SMEs, and (b) internal social capital among top managers could be used effectively to manage ambidextrous innovations. This research indicates that SMEs engaging in both high ERI and EII perform better when they focus on the balancing benefits of TMT internal social capital and the bridging benefits of TMT external social capital.     

Systems of innovation and innovation ecosystems: a literature review in search of complementarities

This paper aims to clarify to what extent the emerging theory of innovation ecosystems (IE) and the theory of systems of innovation (SI) are complementary and then identify how its communities could benefit from cross-fertilization. We performed a critical literature review of both topics using meta-synthesis as method to identify, analyze and compare the two theories. Using a framework, this paper explores the elements belonging to each theory’s domain, in order to identify the key factors necessary to compare the two theories. The results of this analysis show that both theories involve the assessment of three key aspects: the understanding of innovation activities, the role of the agents involved, and the interaction and resulting networks among them. A similarity was found showing that these two different theories are applications of System Thinking approach. Another finding, which has not been mentioned in previous research on the topic, is that the construction of the initial concepts of the IE theory was originally rooted in several SI elements. Finally, we found key factors that may be the cross-fertilization link between the two communities that represent each theory.     

Outsourcing of innovation

This paper looks at the outsourcing of research and development (R&D) activities. We consider cost reducing R&D and allow manufacturing firms to decide whether to outsource the project to research subcontractors or carry out the research in-house. We use a principal-agent framework and consider fixed and revenue-sharing contracts. We solve for the optimal contract under these constraints. We find that allowing for revenue-sharing contracts increases the chance of outsourcing and improves economic efficiency. However, the principal may still find it optimal to choose a contract that allows the leakage to occur—a second-best outcome when leakage cannot be monitored or verified. Stronger protection of trade secrets can induce more R&D outsourcing without inhibiting technology diffusion and increase economic efficiency, as long as it does not significantly lengthen the product cycle. We have benefitted from comments from Andy Daughety, Bob Becker, Rick Bond, Kenneth Chan, Kenji Fujiwara, Shingo Ishiguro, Ron Jones, Seiichi Katayama, Pravin Krishna, Stephanie Lau, Jennifer Reinganum, Koji Shimomura, Eden Yu, two anonymous referees, an editor, and seminar participants at Arizona State, Indiana, Kobe, Osaka, Purdue, Michigan State, UC-Irvine, Vanderbilt, the American Economic Association Meeting in Philadelphia, the Midwest Economic Theory and International Trade Meetings at Indianapolis, the Public Economic Theory Conference in Beijing (China), the WTO and Globalization Conference at Hitotsubashi (Japan), the ETSG meeting in Nottingham (UK), and the CES-IFO Conference in Munich (Germany). We also thank Marketa Sonkova for research assistance. Financial support by the Research Grants Council of Hong Kong SAR, China (Project No. CityU1476/05H) and the Department of Economics and Finance of City University of Hong Kong is acknowledged. The usual disclaimer applies.     

Learning tomanage innovation

Technological innovation is widely accepted to be a complex learning proces through which firms try to acquire and develop distinctive technological competence. But there is a second dimension to such learning which relates to the ways in which the innovation process is managed, which also involves a developmental, cumulative progress. No all firms have the same level of skill in managing projects, in understanding user needs, in search behaviour, in managing inter-fin relationship, etc.; these are all abilities which are learned over time. This paper reviews the concept of capability development as it applies to the management of technological innovation. It illustrates this with the example of continuous improvement (CI)—a key capability which is associated with high levels of involvement in the innovation process through the contribution of regular incremental improvement ideas from a large proportion of th workforce. CI is a simple concept bus is proving very difficult to implement successful in practice; arguably, this is because it involves extensive learning and adaptation. In exploring this issue the paper draws upon the results of a 5-year empirical study into the adoption and implementation of CI within European enterprises. The paper concludes with some comments on the process of 'learning to learn' and argues that managing this process is a key component of strategic technology management.     

Evolution of network relations,enterprise learning,and cluster innovation networks: the case of the Yuyao plastics industry cluster

Industrial clusters have become a crucial carrier of economic globalisation. However, constrained by the nation’s industrial development model, clusters in China have long been relegated to a low-end position. This study, based on the perspective of focal enterprises, analysed the relationships among network relations, enterprise learning, and the evolution of cluster innovation networks and explored the three formation stages of a cluster innovation network by examining the example of the Yuyao plastics industry cluster. The results showed (1) that focal enterprises exert spin-off effects on enterprise learning and are critical for innovation networking and (2) that weak network ties facilitate exploratory learning, whereas strong ties influence exploitative learning. In addition, tie strength showed a coevolutionary feature. Furthermore, the results showed that (3) this evolutionary process demonstrated a phase-changing characteristic, with government policy exhibiting substantial effects on focal enterprises, organisational learning mechanisms, and cluster innovation networks.