Impact of organizational innovation on product and process innovation

The purpose of this paper was to test the effect of organizational innovation on product and process innovation (while controlling for endogeneity). Our hypothesis was that organizational innovation should have a significant and positive impact on technical (product or process) innovation. We control for endogeneity by using a Poisson estimator that accommodates a binary endogenous regressor. We test 10 potential instruments using a battery of test criteria and settle on five. All results are presented using the five instruments to avoid expectation bias. In general we find that organizational innovation does impact technical innovation positively. With the 2009 data we find that the mean of the average treatment effect for product innovation is roughly 1.7 times that of process innovation. For the 2009–2012 data we find that the impact on product innovation is roughly 1.5 times that of process innovation. For the 2012 data, we had anomalous results for process innovation, such that organizational innovation reduced the number of process innovations by 2.3 per year. In terms of Canadian government policy, the results lend support to the view that technical innovation is not the only innovation that matters. The right policy mix may encourage firms to experiment with and adopt more organizational innovations to enhance technical innovation.     

Plant location and strategic environmental policy with inter-sectoral linkages

In recent debates on trade liberalisation the concern has often been expressed that with more competitive international trade governments will be worried that by setting tougher environmental policies than their trading rivals they will put domestic producers at a competitive disadvantage, and in the extreme case this could lead to firms relocating production in other countries. The response by governments to such concerns will be to weaken environmental policies (‘eco-dumping’). In competitive markets such concerns are ill founded, but there is a small amount of literature which has analysed whether governments will indeed have incentives for eco-dumping in the more relevant case of markets where there are significant scale economies; even here there is no presumption that the outcome will involve eco-dumping.In this paper we extend the analysis of strategic environmental policy and plant location decisions by analysing the location decision of firms in different sectors which are linked through an input-output structure of intermediate production. The reason why we introduce inter-sectoral linkages between firms is that they introduce an additional factor, relative to those already analysed in the literature, in the plant location decision, which is the incentive for firms in different sectors to agglomerate in a single location. This has a number of important effects. First, there is now the possibility of multiple equilibria in location decisions of firms. Following from this there is the possibility of catastrophic effects where a small increase in an environmental tax can trigger the collapse of an industrial base in a country; however there is also the possibility that a country which raises its environmental tax could attract more firms to locate in that country, because of the way the tax affects incentives for agglomeration. Finally, and again related to the previous effects, there is the possibility of a hysteresis effect where raising an environmental tax in one country can cause firms to relocate to another country, but subsequently lowering that tax will not induce firms to relocate back into the original country.We consider a simple model with two countries, two industries, an upstream and a downstream sector, and two firms per industry. The analysis proceeds through a three-stage game: in the first stage the governments of the two countries set their environmental policies; in the second stage the firms in both industries choose how many plants to locate and where; in the third stage firms choose their output levels, with the demand for the upstream firms being determined endogenously by the production decisions of the downstream firms. We assume that there are no limits to production capacity, so that firms do not build more than one plant in any country. However, firms may build plants in different countries because of positive transport costs. Although the model appears very simple, it cannot be solved analytically, so all the conclusions must be drawn from numerical simulations.     

The strategic equivalence of rent-seeking, innovation, and patent-race games

We establish the strategic equivalence of a variety of rent-seeking contests, innovation tournaments, and patent-race games. The results allow us to disentangle negative and positive externalities, and to apply theorems and results intended for rent-seeking games to other games, and vice versa. We conclude with several examples that highlight the practical utility of our results.     

Technological area experience,experience diversity and innovation

One conclusion from the knowledge-based view is that firms develop knowledge from experience. This paper examines the conditions under which firms’ R&D experiences might have stronger or weaker effects on innovation capabilities. We posit that any potential benefit depends on the nature of this experience. In particular, we look at how technological area experience and experience diversity affects innovation capabilities. We further propose that, in order to leverage their experience, firms need to consider how the interactions of technological area experience and experience diversity affect performance. To test this model, we draw on a data set of 3034 drug development projects undertaken by 30 large pharmaceutical companies between 1980 and 2008.     

Paying for freedom: Indentured labour and strategic default

The focus of this paper is on labour arrangements characterized by indenture, bondage, or slavery, and the design of credit market policies to free these labourers. We examine bonded or indentured labourers that pay a fee to their patrons or employers for freedom from bondage in a multi-period game between the patron, labourers, and other lenders, where a labourer borrows the fee from a third party lender. Labourers are heterogeneous: they differ in their cost of committing strategic default in repaying the loan. The patron’s determination of the fee, and the possibility of strategic default by the labourer, are two key features that drive our results. Productivity gains are greatest when labourers with both high and low default costs pay the fee. However, there also exists a less socially optimal outcome where only the low default cost labourer participates. Importantly, we also develop a theory of the existence and persistence of bondage.     

Technological innovation and complexity theory

Complexity theory has become influential in recent models in social science. In the context of innovations and new technologies, most applications have focused on technology adoption and technology diffusion, whereas the topic of the innovation process has received less attention. This paper discusses three families of complexity models of technological innovation: fitness landscape models, network models and percolation models. The models are capable of analysing complex interaction structures (between components of technologies, between agents engaged in collective invention) while avoiding ‘over-parameterisation’. The paper ends with discussing the methodological challenges and critiques regarding the application of complexity theory that remain.     

Technological diversity,knowledge flow and capacity,and industrial innovation

ABSTRACT

This article examines the effect of technological diversity, knowledge flow and capacity on industrial innovation performance. We suggest that there is an inverse U-shaped relationship between technological diversity and industrial innovation performance. Moreover, knowledge flow and knowledge capacity are hypothesised as negatively moderating the effect of technological diversity on industrial innovation performance. We use negative binomial regression to test the hypotheses in a panel data of 360 industry-year cases and the findings support our prediction. Managerial implications and future research directions are discussed.     

Simultaneity between strategic variables: Production,innovation, and product differentiation

This paper aims to analyze the existence of simultaneous effects among the variables production, product differentiation, and innovation. Microeconomic data from a sample of 2,160 firms are used as a base. Empirical results show that a positive correlation exists from innovation to product differentiation, thus showing that it is in the process of production itself, through technical improvements, where product differentiation is determined. On the other hand, no positive effect exists from product differentiation to innovation, i.e., once technical improvements have been established, firms exchange the barriers to entry created by brand image for the real barriers established by innovation itself. Lastly, the importance of the firm size in explaining the other endogenous variables analyzed is confirmed. This paper has received financial support from the Valencian Institut of Economic Research (IVIE). The study was carried out within the framework of research program SEC94-1357 of the Comisón Interministerial de Ciencia y Tecnología (CICYT).     

Firm persistence in technological innovation: the relevance of organizational innovation

Organizational innovation favors technological innovation, but does it also influence persistence in technological innovation? This paper empirically investigates the pattern of technological innovation persistence and tests the potential impact of organizational innovation using firm-level data from three waves of French Community Innovation Surveys. The evidence indicates a positive effect of organizational innovation on persistence in technological innovation, according to the various measures of organizational innovation. Moreover, this impact is more significant for complex innovators, i.e. those who innovate in both products and processes. The results highlight the complexity of managing organizational practices with regard to the technological innovation of firms. They also add to understanding of the drivers of innovation persistence through the focus on an often forgotten dimension of innovation in a broader sense.     

企业创新系统的组织选择与绩效

组织因素约束着企业创新能力和创新绩效。不同的组织安排、组织结构企业创新绩效不同。由于组织设计上的缺陷、组织偏好以及对组织认识存在偏差 ,中国企业偏好独立技术开发 ,忽视网络组织 ,特别是技术联盟在技术创新中的作用。本文剖析了企业创新中的三种组织安排 ,以及中国企业创新中的组织缺陷 ,建议以技术联盟作为中国企业进行技术创新的首选组织类型     

The nexus between corruption and academic freedom: An international investigation of the underlying linkages

Studying a relatively under-researched aspect in economics, this paper examines the nexus between corruption and academic freedom. Our main hypothesis is that greater corruption undermines academic freedom and we test this hypothesis using data for 104 nations from 2012 to 2018. Our results support the main hypothesis, and this finding also generally holds across alternative aspects of academic freedom. Another contribution of this work lies in dissecting the direct and indirect (through corruption) effects of various drivers of academic freedom. Finally, additional insights are gained by considering different dimensions of academic freedom and how they are impacted by corruption.     

产品创新对组织绩效关系之研究

越来越多的企业利用不断推出新产品获得市场与消费者的青睐,以建立长期竞争优势。企业若能成功推出新产品,除能以独一无二的新产品提高产品与市场的价值之外,更能提升企业整体竞争力。然而,在现今竞争激烈导致产品生命周期急遽缩短的趋势下,使得产品创新在企业日常营运角色中的重要性日渐增加,企业若能掌握产品推出时机,并且藉由创新延长产品生命周期,就有机会维持企业在座业中的领导地位。本研究以3M作为个案研究之对象,探讨渐进式创新、技术突破、市场突破以及激追式创新等四种不同的产品创新类型对组织绩效的影响,期能藉由实际个案与相关数据显示产品创新与组织绩效间之关联性。研究结果显示,无论属于何种产品创新类型,对组织绩效都有正向的影响。若能激发激进式产品创新的产生,更能透过新产品或新技术创造新的产品践,亦能强化组织的竞争优势,成为组织竞争优势的根源。3M超过百年的发展历史以及不断创新的历程与经验,使它成为商业历史发展的裹程碑外,更成为现今各企业的典范与楷模。     

Technological spillover through industrial and regional linkages: Firm-level evidence from China

This paper provides new insights into the study of technology spillover effects through the interaction between industrial and spatial linkages. We develop a theoretical model that provides a useful modeling framework for spillover research, and then empirically test the model inferences using Chinese firm-level data. Input-output tables and spatial decay measurements are combined to construct the key spillover variables. Using seemingly unrelated regressions, the paper finds that vertical spillover effects are more significant than horizontal spillover effects, both within- and between-regions; regional characteristics have greater impacts on vertical spillovers than on horizontal spillovers; and regional spillover effects vary across different regions. Regional policies and regional endowments, including human capital, transportation infrastructure, and enterprise ownership, are crucial in explaining these heterogeneities in regional technology spillover. Our empirical results provide many policy implications including strengthening the connection between upstream and downstream industries and devoting more R&D to upstream industries.     

Technological innovation and the long wave theory revisited

The pattern of basic innovation clustering associated with Kondratieff long wave downswings raises questions when we consider the 4th downswing. There is increasing concern expressed that we may be facing “innovation starvation” or “innovation stagnation”. Among the questions: Is the internet a cluster of one? Or should the smartphone, ipad, Facebook, icloud, etc. be considered basic rather than improvement innovations as well because of their huge societal impact? Is the long wave pattern exhibited for the past two hundred years continuing or is it breaking down?     

Technological innovation and diffusion of wind power in Japan

The purpose of this paper is to analyze the diffusion of wind power in Japan by focusing on the value chain and the interaction between technology and markets and to contribute towards recommendations on technology policy and management. This paper proposes a framework for analyzing the early stage diffusion of wind power systems by combining the use of several approaches considering wind power system as a complex technological system. Firstly, the business system approach is used as an analytical framework by focusing on efficiency, effectiveness and development criteria. As a second approach, the technological trajectory was analyzed based on the concept of technological disequilibrium and the evolutionary patterns of innovation of wind power generation systems were analyzed and the relationship between innovations at the sub-system, modular, and system level was identified. We apply the framework to investigate why wind power diffusion has not picked up momentum in Japan.The results include the following: (1) Technological imbalances within the product system were solved by technological innovation (2) The wind power business in Japan is insufficiently effective due to organizational disequilibrium (3) The technology system has begun to evolve in the direction of micro grid systems. (4) It is important to consider the demand-pull measures for wind power generation so that Japanese institution can have a “time slot” for ”learning by doing” to catch up and accelerate diffusion of wind power generation, including institutional reform of RPS law. Also further technological development related to stabilizing unstable wind energy is required.     

Internal bargaining and strategic innovation in the theory of the firm

The transaction cost analysis of the firm has identified asset idiosyncrasy and the risk of ex post opportunism as key determinants of organizational form. Simultaneously, several writers have modeled the distribution of quasi-rents among input suppliers as a bargaining game. These complementary ideas are used to formalize the notion of strategic innovation, where capital and labor attempt to redistribute firm income after specialized assets are in place, through unilateral modifications in production technology. Because strategic behavior can enlarge the quasi-rent component of fifirm income, this process may persist in equilibrium. Asset idiosyncrasy therefore creates room for an autonomous theory of organizational dynamics, partially insulated from events at the market level of analysis.     

Technological innovation and market turbulence: The dot-com experience

This paper explains market turbulence, such as the recent dot-com boom/bust cycle, as equilibrium industry dynamics driven by the synergy between new and existing technologies. When a major technological innovation arrives, a wave of new firms implement the innovation and enter the market. However, if the innovation complements existing technology, some new entrants later will be forced out as more and more incumbent firms succeed in adopting the innovation. It is argued that the diffusion of Internet technology among traditional brick-and-mortar firms was indeed the driving force behind the rise and fall of dot-coms as well as the sustained growth of e-commerce. Systematic empirical evidence from retail and banking industries supports the theoretical findings.     

Dynamic conditional score models of degrees of freedom: filtering with score-driven heavy tails

This article extends the quasi-autoregressive (QAR) plus Beta-t-EGARCH (exponential generalized autoregressive conditional heteroscedasticity) dynamic conditional score (DCS) model. For the new DCS model, the degrees of freedom parameter is time varying and tail thickness of the error term is updated by the conditional score. We compare the performance of QAR plus Beta-t-EGARCH with constant degrees of freedom (benchmark model) and QAR plus Beta-t-EGARCH with time-varying degrees of freedom (extended model). We use data from the Standard and Poor’s 500 (S&P 500) index, and a random sample of its 150 components that are from different industries of the United States (US) economy. For the S&P 500, all likelihood-based model selection criteria support the extended model, which identifies extreme events with significant impact on the US stock market. We find that for 59% of the 150 firms, the extended model has a superior statistical performance. The results suggest that the extended model is superior for those industries, which produce products that people usually are unwilling to cut out of their budgets, regardless of their financial situation. We perform an application to compare the density forecast performance of both DCS models. We perform an application to Monte Carlo value-at-risk for both DCS models.     

企业技术创新能力研究的现状与思考

本文通过对中国期刊网近十年相关文献的调研,揭示制约企业技术创新能力的主要因素,并给出了相应的对策建议。     

国际投资促进:组织机构建设与方法创新

在经济全球化浪潮中，外国直接投资（FDI）对于世界众多国家经济发展中诸如资本供应、技术进步、扩大贸易、促进竞争等方面的积极作用得到越来越广泛的认同。也正因如此，各国纷纷对外资放宽限制、增加优惠，彼此之间争夺FDI的竞争愈演愈烈。在此背景下，投资促进（InvestmentP