Occupational Choice: The Influence of Product vs. Process Innovation

Prior studies have found that knowledge gained from work experience is a way to gather insights for business opportunity recognition. However, little is known about the specific types of knowledge that lead to business founding. Utilizing concepts from knowledge spillovers and from the opportunity recognition literatures, this paper argues that an organization’s technological innovation activities can help its employees develop specialized knowledge that provides them with the entrepreneurial opportunities to found new businesses. Besides highlighting the positive relationship between technological innovation activities in organizations and the propensity of individuals leaving the organizations to start new businesses, this paper also provides a more fine-grained explanation of the types of technological innovation activities that can lead to business founding. We argue that knowledge acquired through product innovations is more easily adopted by individuals for commercial uses, while knowledge acquired through process innovations must be integrated with other parts of the organization to be valuable. This study proposes that product innovation activities in an organization, more so than process innovation activities, are related to new business founding. Implications for opportunity exploitation and ways to exploit knowledge spillovers are discussed.      

Internationalisation,Innovation and Productivity: How Do Firms Differ in Italy?

This paper addresses the issue of intra‐industry heterogeneity and internationalisation. We show that, after controlling for sector, location, firm age and size, Italian manufacturing companies exhibit different economic and innovative performance according to their involvement in foreign activities. In particular, exporters show intermediate innovative performance between non‐internationalised firms and those carrying out foreign production. Multinationals with a lower commitment to foreign markets, i.e. with non‐manufacturing activities abroad only, exhibit a higher productivity than exporters but they do not appear to innovate more than the latter. Heterogeneity in productivity is robust to controlling for innovation inputs and outputs, suggesting that the difference in economic performance cannot be entirely attributed to different innovative activities, and that the involvement in international operations can be a distinct channel of knowledge accumulation.     

An innovation perspective on Chinese retailers' competitive advantage

Given the emergence of strong local retail firms in China over the last two decades, this paper aims to explore their competence enhancement and capability building process from the innovation perspective. Innovative measures on retail format, activity and governance dimensions of three leading local retailers in China are investigated using an in-depth case study approach. After each case is studied on the three dimensions, a cross-case analysis is conducted using thematic analysis to examine their innovative strategies and to explore their sources of innovation. The three cases share notable similarities in their strategies that are in sharp contrast to those of foreign retailers. On the retail format dimension, they have all achieved differentiation by formulating niche strategies and succeeded in creating a strong reputation among customers and retaining the same. On the retailing activities dimension, they have all developed a profit-making model through unique supply chain management and stressed construction of logistics centres and operational standardisation. On the governance dimension, they have established an efficient incentive and reward mechanism to motivate employees and encourage innovative practice. They have also built long-term collaborative relationships with their suppliers. Based on these three cases, it is also found that local embeddedness, latecomers' advantages, business agility and a risk taking entrepreneurial mentality are the crucial factors behind the generation of efficient innovations of China's local retailers. With these findings, this paper has extended and enriched existing knowledge on latecomers' catch up and service innovation. It has constructed an analytical framework for retail innovation by building on relevant attempts in the existing literature. A theoretical framework that explains how indigenous Chinese retailers have managed to successfully compete with foreign retailers in China using innovative strategies has also been established based on empirical data.     

Geographical FDI knowledge spillover and innovation of indigenous firms in China

In recent decades, theoretical debate on firm innovation has considered particular forms of spatial clustering and foreign direct investment as almost mutually exclusive drivers. While cluster literature pays less attention to firm heterogeneity in ownership structure, FDI literature ignores the importance of geographical dimension in spillover effects. This study combines these two lines of theoretical inquiry to investigate regional FDI knowledge spillover effects on product innovation of China's indigenous electronic firms. It is found that localized innovative-related activities of foreign-invested firms significantly facilitate product innovation of domestic firms. However, FDI horizontal spillover is more important than vertical spillover and cross-sector rather than intra-sector knowledge is significant for indigenous innovation. FDI spillover effects can be reinforced by local innovative activities of domestic firms. This study highlights the significance of geographical proximity and relatively heterogeneous knowledge in FDI spillover effects on domestic innovation but questions the mutual trust relationship between foreign and domestic firms in a cluster.     

General Purpose Technologies and local knowledge accumulation — A study on MNC subunits and local innovation centers

This research looks into the innovative activities of subunits of large non-U.S firms in the U.S from 1969 to 1995, suggesting that the innovations in the subunits of multinational corporations are closely linked to their specializations in General Purpose Technologies (GPTs). GPTs enable recombining knowledge from different domains on an international scale, and that the specialization of innovations in GPT fields within a subunit is positively associated with the innovative capacity at large, along with the degree of technological diversification of that specific subunit. As firms expand geographically to tap into local innovation centers to develop new growth alternatives, specialization of GPTs in these firms actually facilitates further geographical dispersion of innovative activities across locations. Lastly, additional specializations of innovations in GPT fields within the host innovation centers does help in attracting innovation activities of firms from a wider range of industries.     

Chinese immigrant entrepreneurs’ involvement in internationalization and innovation: Three Canadian cases

In international entrepreneurship literature, entrepreneurs moving across borders have received less attention than other entrepreneurs. Also, only scant attention has been paid to immigrant entrepreneurs’ contributions to their organizations. This paper aims to contribute to the emerging international immigrant entrepreneurship literature by studying Chinese immigrant entrepreneurs’ roles in their firms’ international and innovative activities in Canada, China, and other countries. It is based on three cases of Chinese entrepreneurs who established businesses in Canada. We conclude that these immigrants’ experience of doing business in China and Canada, their network relationships and knowledge of these markets quickened their firms’ internationalization considerably. Moreover, these firms became active in product or service innovation as the case immigrants also involved other immigrants and locals. Consequently, immigrant entrepreneurs should actively use their connections both in their new country of residence and also in their previous home country, but to become even more successful, they should also reach beyond their ethnic ties.     

Knowledge,innovation and firm performance in high- and low-technology regimes

Industries with greater aggregate levels of research and development (R&D) intensity are home to higher rates of firm-level innovation, according to survey data from 845 Canadian manufacturing firms. And, though innovation is more common when industry dynamism is high, innovative firms are likely to enjoy revenue growth, irrespective of the industry in which they operate. The research also shows that firm knowledge, industry dynamism and innovation interact in the way they influence firm performance. A highly skilled workforce is most beneficial to firm performance in dynamic environments, while firms in stable manufacturing industries benefit more from investments in training.     

Local and international knowledge search and product innovation: The moderating role of technology boundary spanning

Drawing on the external knowledge search literature and the literature on international diversification, this study examined the interactive effect of local and international search for new knowledge on product innovation and the moderating role of a firm's technology boundary spanning activities. Specifically, it proposed that extensive local and international search interact to positively predict product innovation success and this relationship is weaker for firms entering a new technology domain. The results using data on 343 Chinese manufacturing firms across 5 industries indicated the support for the predictions.     

Does Social Software Support Service Innovation?

Recent Internet technologies and web‐based applications, such as social software, are being increasingly applied in firms. Social software can be employed for knowledge management and for external communication enabling access to internal and external knowledge. Knowledge, in turn, constitutes one of the main inputs to service innovation. Hence, social software has the potential to support service innovation. Using data from German IT and knowledge‐intensive service firms, this is the first paper that empirically analyses whether the use of social software applications triggers innovation. It refers to a knowledge production function in which social software use constitutes the knowledge sourcing activity. The results reveal a positive relationship between social software and service innovation. Since this result is robust when controlling for former innovative activities and the previous propensity to adopt new technologies and to change processes, the analysis suggests that the causality runs from social software to innovation.     

The impact of espoused national cultural values on innovative behaviour: an empirical study in the Chinese IT-enabled global service industry

In this article, we explore the different roles that knowledge sharing and exploitative learning play in employees’ innovative behaviour, and investigate the different moderating effects of employees’ espoused national cultural values on the relationship between exploitative learning and innovative behaviour in the Chinese IT-enabled global service firms with different ownerships. We propose a theoretical model to characterize these antecedents of innovative behaviour. A structured research survey was conducted and data were collected from a sample of 484 full-time employees in 3 IT-enabled global service firms in the PRC. Results indicate that knowledge sharing is positively associated with innovative behaviour in multinational corporations and private IT-enabled global service; espoused power distance has a significant positive moderating effect on exploitative learning–innovative behaviour relationship in state-owned and private firms; espoused collectivism has a significant moderating effect only in state-owned firms in China. Last, we explore the implications of our findings for theory and practice of innovation.     

Knowledge intensive business services and client innovation

Innovative activities, driven by a knowledge economy era, globalization, and pressure of global competition, have profoundly impacted local economies since the late 1980s. Relevant studies in the recent decade have gradually emphasized the increasing importance and continuous expansion of knowledge intensive business services in current economic development. This topic represents a major trend impacting industrialized economies. Therefore, this study elucidates the roles and functions of knowledge intensive business services as an area innovation system evolves. Exactly how technology-based firms and knowledge intensive business services interact with each other, as well as the roles of knowledge intensive business services, is also analyzed by examining how the area innovation system centered in Hsinchu Science-Based Industrial Park in Taiwan has evolved. Results of this study demonstrate that knowledge intensive business services function in an intermediary role in the innovation system. These services enhance their customers’ capacity for specialization, subsequently improving their evolutionary capabilities and producing tangible innovative cycles.     

Firms size and R&D spillovers: Evidence from Italy

The recent emergence in the industrial organization literature of a wave of studies identifying small firms as more innovative than their larger counterparts poses something of a paradox? Where do small firms get their knowledge generating inputs? The purpose of this paper is to link innovative inputs to innovative outputs. This enables the identification of the extent to which spillovers exist from major sources generating new economic knowledge, such as the research and development (R&;D) laboratories of private and public firms, as well as universities, to the innovative activity of large and small enterprises. Based on twenty Italian regions over a period of nine years, the emprical evidence suggests that, while firm R&;D expenditures contribute to the generation of innovative output for all firms, as well as for large and small firms, the spillovers from university research are apparently more important for small-firm innovation than for large-firm innovation.     

China: From imitator to innovator?

We examine the effects of a specific Chinese governmental policy change, and assess how it has impacted firm innovation. To address potential endogeneity concerns, we use the policy change as a quasi-natural experiment, and explain the exogenously caused variations. We also use a “difference-in-differences” approach to compare innovative activities of Chinese firms with those of matched U.S. peers, and find that the policy change had a positive effect on Chinese firms' research spending, as measured by research intensity. We show that Chinese firms increased their research spending in response to the strategic shift by the government after 2008, relatively outpacing their U.S. peers during the same time period. Chinese companies have not overtaken their U.S. peers yet, but they have reduced the gaps between them.     

中日创新及国际贸易效应比较分析——以专利为例的实证研究

本文运用Johansen协整检验、Granger因果关系检验等计量方法,验证了一国的发明专利对该国贸易出口的直接促进作用;并通过中日两国的比较分析,发现日本的创新活动对该国的贸易出口促进作用比中国更显著。这说明在知识经济时代,一国持续的自主创新能力对该国的贸易竞争力乃至国家竞争力有着至关重要的作用。大量数据的比较显示,中国在自主知识创新方面同日本相比,差距是显然的。积极发展和完善我国创新系统,大力培育以知识优势为核心的国家竞争优势,是贯彻落实科学发展观,保持我国经济可持续发展的重要环节。     

R&D Activities and Extensive Margins of Exports in Manufacturing Enterprises: First Evidence for Germany

This article uses a new, tailor-made data set to investigate for the first time the links between innovation activities (measured by employees active in research and development) and the extensive margins of exports (number of destination countries; number of goods exported) for manufacturing enterprises in Germany, the third largest exporter of goods on the world market. It documents that more innovative firms outperform less innovative firms at both margins of exports—they export more goods, and they export to a larger number of countries. All of these differences are statistically highly significant and large from an economic point of view.     

Overview of Collaborative Entrepreneurship: An Integrated Approach Between Business Decisions and Negotiations

In recent years, the complex, turbulent and changing environment in which firms operate has greatly intensified. A new era of continuous innovation has emerged in which knowledge is the key asset, and whose exploitation determines success for many firms. In this context, it is generally accepted that effective knowledge management depends heavily on a company’s ability to collaborate, both inside (Collective Entrepreneurship) and outside (Collaborative Entrepreneurship) the organization. Collaboration enables a firm to be entrepreneurial and continuously innovative by exploring new markets. Continuous innovation and market exploration are the building blocks of collaboration. Therefore, the aim of this paper is to develop the concept of Collaborative Entrepreneurship, linking the most relevant issues with the concept of Collective Entrepreneurship, from a preliminary integrative approach. From this approach, three elementary dimensions are emphasized: strategy, structure and management philosophy. Strategy refers to the shared common project among collaboration partners; Structure concerns the flexibility of structures and adaptation to environmental changes; and Management Philosophy is about trust. Also, networks within the firm and among firms could form the basis of Collaborative Entrepreneurship in the context of negotiation and decision processes. A brief overview of the content of each of the articles included in this special issue on Collaborative entrepreneurship is presented following this article.     

Unpacking the impact of innovation ambidexterity on export performance: Microfoundations and infrastructure investment

When designing and managing routines for their innovation activities firms often face a challenge. Either they can concentrate their efforts on one approach i.e. exploring new ideas or exploiting its existing capabilities, or they can try to do both, i.e. becoming ambidextrous. In this paper, we aim to explore first the effect of exploration, exploitation and ambidexterity on export performance and second the moderating role of investment in infrastructure. Using firm-level data from the UK’s innovation survey (CIS) we find that both exploration and exploitation improve export performance. We also find that investment in infrastructure weakens this relationship. Counterintuitively, we find that ambidexterity has a negative effect on export performance, and that it is negatively moderated by investment in infrastructure. We use microfoundations arguments (the routines firms employ and the actions taken by individuals and groups within them to shape their exporting capabilities) to explain how efforts to achieve ambidexterity can improve export performance.     

“十三五”医药创新驱动战略与创新人才培养研究

创新人才是增强城市创新能力的战略性资源。"十二五"时期,我国中医药事业取得了跨越式的发展,而在"十三五"时期,受新医改政策的影响,我国医药行业竞争日趋激烈,而医药创新驱动战略的实施使得对创新人才的需求大增。但由于我国医药队伍庞大、医药企业经营多元化、医药零售药店数量众多等原因,在培养医药创新型人才方面还面临很大挑战。我国应勇于创新,坚持中医药特色;同时加快在高校实行教学改革,并树立教育和管理的基本理念,以培养出优秀的医药创新型人才,适应创新型城市的需要。     

How young firms achieve growth: reconciling the roles of growth motivation and innovative activities

This special issue focuses on entrepreneurship, innovation and enterprise dynamics, as these key components of any prospering economy are at the heart of the current policy discussion. It gathers the latest national and comparative cross-country evidence about: new business venture formation and the role of framework conditions in fostering entrepreneurial activities; the determinants and outcomes of firms’ innovative activities and, more generally, of business and innovation dynamics; and the determinants and patterns of post-entry firm growth performance. The contributions synthesised in this introductory piece all rely on sound micro-level data and robust econometrics and propose novel findings that are relevant for policy making. Among them, that risk aversion encourages individuals to invest in balanced skill profiles, making them more likely to become entrepreneurs; and that while micro firms may grow when they are young, they are less likely to do so when old.     

How innovative are spin-offs at later stages of development? Comparing innovativeness of established research spin-offs and otherwise created firms

The literature argues that research spin-offs (RSOs)—enterprises originating from a university or research institute—appear to have higher innovative potential and capabilities than other start-ups, at least in the early stages of their development. Yet, little is known about the innovative performance of these companies at later development phases. Thus, the main goal of this study is to investigate whether there are any differences in research and development (R&D) and innovation behavior between established and/or mature RSOs and otherwise created firms and, if so, to what extent they are driven by networking and cooperation activities as suggested by some scholars. To this end, we employ probit regression analysis and a matching approach using survey data on more than 6,000 East German firms, among which are 179 RSOs. Our first findings suggest that established RSOs engage in R&D and innovation activities more frequently than companies whose genesis was of another type. Nevertheless, the results obtained when accounting for collaboration measures show that the precedence of RSOs in further development stages over otherwise created firms in terms of innovation outputs is related to their higher intensity of cooperation activity and close, face-to-face interactions with universities, and not to type of firm creation. Moreover, our findings reveal that cooperating in various fields may be of different importance for specific inputs and outputs of the innovation activity. Finally, based on our results, we draw some implications for both practicing managers and public policymakers.