Exploring networks of proximity for partner selection,firms' collaboration and knowledge exchange. The case of clean‐tech industry

Nowadays scholars widely recognize that know‐how, capabilities and knowledge needed to generate innovations often reside outside the firm, start‐ups are a valuable source, and collaborative networks are a fundamental strategy for innovation. This is true especially for the clean‐tech sector, which is characterized by the continuous search for innovative solutions and technological advancements. The purpose of the paper is to provide a methodological support for the screening of potential partners based on network analysis and, then, help firms to select them for collaboration and knowledge exchange. The methodology can be easily adopted by managers and executives to identify firms to monitor with greater attention for future investments. The analysis is on a dataset of 4,782 clean‐tech companies operating worldwide. Results highlight that energy companies looking for external sources could investigate their network of business proximity if they intend to specialize in a defined field and/or collaborate with similar partners, while they could explore their network of strategic proximity if they intend to diversify their businesses, that is cooperating and exchanging knowledge with firms with distant but complementary capabilities and resources.     

Standard–setting processes: evidence from two case studies

In many hi–tech sectors one of the most important dimensions of competition is standardisation. This is particularly true in modular markets (i.e. markets characterised by the existence of modular architectures) and in network markets (i.e. markets where users would like to buy products compatible with those bought by others). Different processes may lead to the standard–setting. Sometimes there are fierce standardisation wars whereas in other cases competitors are able to agree on a common standard before the introduction of the technology on the market. In this paper we endeavour to provide an interpretative framework of the standardisation process and validate such a framework through an in–depth analysis of two case studies in a typical network market (the multimedia sector): the case of the Modem 56k and the case of the Information Appliances–Enhanced TV.
The two case studies offer some evidence of the standardisation process and of the growing importance of super–partes organisations (Standard Development Organisations) in the mediation process between different interests and technologies to impose a common standard on the market.     

LESSONS FROM THE SOUTHERN CONE POLICY REFORMS

This article assesses the design of stabilization and liberalizationprograms in the Abstract Southern Cone countries of Argentina,Chile, and Uruguay. With the exception of Chile, the reformswere not as widespread as some believed. Little trade liberalizationtook place in Argentina and Uruguay, although some of the antiexportbias was reduced by eliminating taxes on traditional exports.In all three countries, labor markets remained fairly highlyregulated, though it was easier to dismiss labor. In general,liberalization was gradual: even Chile's trade liberalizationspanned five years. The article also shows that the collapse of the three economiesin the early 1980s cannot be ascribed mainly to terms of tradeand interest rate shocks. The main causes of failure were poorlydesigned programs and poor implementation. These errors includedrestrictive wage legislation (Chile) or political instabilitycombined with a preoccupation with keeping unemployment as lowas possible (Argentina). Monetary policy to deal with growingfiscal deficits was inconsistent with the accompanying exchangerate policy (Argentina throughout its reform period and Uruguaytoward the end of its reforms). Financial deregulation was notmatched by appropriate supervision of the financial institutions. The article suggests several policy lessons for countries attemptingto resume growth and restore external balance through a combinationof liberalization and stabilization policies. First, it findsevidence that reductions in distortions produced efficiencygains in Chile and Uruguay even though Uruguay's reforms wereshort-lived. Second, the article shows that policy inconsistenciesundermined the credibility of the later stages of reform inall three countries, eventually producing a crisis. Third, itpresents data that call into question the use of exchange rate-basedstabilization, because of the slow convergence of domestic pricesand interest rates to international levels, which in turn canproduce unsustainably large capital movements. Fourth, the articlestresses the need for caution in financial deregulation.      

The translog production function: Some evidence from establishment data

This paper uses cross-section data from individual establishments to estimate directly, i.e., without using side conditions, translog functions for 44 four-digit ISIC Chilean manufacturing industries. Main results are: (1) The null hypothesis that the production function is Cobb-Douglas cannot be rejected for 39 out of 44 four-digit ISIC industries. (2) The null hypothesis of constant returns to scale cannot be rejected for 35 out of 44 industries; the remaining 9 sectors show evidence of increasing returns to scale.     

Global R&D Project Management and Organization: A Taxonomy

This work studies the management and organization of global R&D projects, i.e. projects leading to innovations to be exploited in multiple countries. It provides a taxonomy of how firms conduct such projects. The empirical base is composed of twelve multinational companies, from the three major areas (Europe, Japan, North America), operating technology-intensive businesses. Two basic structures are identified: the specialization based, where one foreign lab (the firm's center of excellence) is assigned the responsibility for developing a new product, process or technology on the basis of a global mandate, and the integration based, where different units contribute to technology development programs and global innovations are the result of the joint work of these units. In each categories two sub-cases have been found: the center of excellence and the supported specialization, on the one hand, and the network and specialized contributor structures, on the other. The four structures have been studied in relation to: the key characteristics of the organization and management of global projects (in each phase, from conception to introduction into the market), the organizational factors affecting the success, the context conditions in which the structure is considered appropriate.     

Analysis of mobility impacts of the high speed Rome-Naples rail link using withinday dynamic mode service choice models

The decrease in travel times, the better quality of the supplied services and the improved accessibility are the main factors of success of High Speed Rail links.In this paper, evidence of the impacts of the High Speed Rail line between Rome and Naples in Italy will be provided on the basis of a survey which was carried out in March 2008.A Revealed Preference (RP) survey was undertaken by Trenitalia (the Commercial Division of Italian railways) and three different questionnaires were prepared to be submitted to car users, Intercity train users and High Speed train users. They all have in common questions concerning the socioeconomic characteristics of the users, questions related to the existence of possible time constraints for the trip undertaken and questions concerning previous travel choices.Data from Trenitalia highlighted that the use of car and of Intercity trains had almost remained unchanged during the few years of operation of the High Speed service. However, a generated demand was derived from the use of this High Speed Rail link and this means that the introduction of the High Speed service between Rome and Naples probably had impacts, as excepted, on mobility choices (i.e. increase in trip frequency, new trips never done before, etc.). Data gathered were used first of all to understand this phenomenon and then to estimate a mode choice model to reproduce/forecast modal share. Specifically the choice between car and rail was modelled through a schedule based approach and with a Nested Logit model with the “train” utility function including late and early penalties.     

Network of Collaborations for Innovation: The Case of Biotechnology*

The 'life science' revolution related to the development of biotechnology affects many different markets. In the pharmaceutical business new drugs are continuously developed, tested, and submitted to governmental institutions for the required approval. In the agricultural business the so-called 'green revolution' is well under way with many new products designed in order to appeal to farmers or to consumers. The increasing pace of introduction of new biotech products—particularly drugs and agrochemical (Ag) foods—leads firms to look for collaborations in the different phases of the introduction process. Basing on an empirical study conducted on a sample of 27 organisations involved in the process of introduction of biotech products, the paper aims at comparing and contrasting the nature and the processes involved in inter-institutional collaborations occurring at various stages of new product development and commercialisation of new biotech products (particularly drugs and Ag foods).     

Commercializing Technological Innovation: Learning from Failures in High‐Tech Markets*

Commercialization is known to be a critical stage of the technological innovation process, mainly because of the high risks and costs that it entails. Despite this, many scholars consider it to be often the least well managed phase of the entire innovation process, and there is ample empirical evidence corroborating this belief. In high‐tech markets, the difficulties encountered by firms in commercializing technological innovation are exacerbated by the volatility, interconnectedness, and proliferation of new technologies that characterize such markets. This is clearly evinced by the abundance of new high‐tech products that fail on the market chiefly due to poor commercialization. Yet there is no clear understanding, in management theory and practice, of how commercialization decisions influence the market failure of new high‐tech products. Drawing on research in innovation management, diffusion of innovation, and marketing, this article shows how commercialization decisions can influence consumer acceptance of a new high‐tech product in two major ways: (i) by affecting the extent to which the players in the innovation's adoption network support the new product; (ii) by affecting the post‐purchase attitude early adopters develop toward the innovation, and hence the type of word‐of‐mouth (positive or negative) they disseminate among later adopters. Lack of support from the adoption network is found to be an especially critical cause of failure for systemic innovations, while a negative post‐purchase attitude of early adopters is a more significant determinant of market failure for radical innovations. There follows a historical analysis of eight innovations launched on consumer high‐tech markets (Apple Newton, IBM PC‐Junior, Tom Tom GO, Sony Walkman, 3DO Interactive Multiplayer, Sony MiniDisc, Palm Pilot, and Nintendo NES), which illustrates how commercialization decisions (i.e., timing, targeting and positioning, inter‐firm relationships, product configuration, distribution, advertising, and pricing) can determine lack of support from the innovation's adoption network and a negative post‐purchase attitude of early adopters. The results of this work provide useful insights for improving the commercialization decisions of product and marketing managers operating in high‐technology markets, helping them avoid errors that are precursors of market failure. It is also hoped the article will inform further research aimed at identifying, theoretically and empirically, other possible causes of poor customer acceptance in high‐tech markets.     

Semi‐transparency,dealership market,and foreign exchange market quality

This paper examines the effects of a semi-transparency event, the introduction of the electronic trading system (EBS), on the market quality of a typical dealership market – the FX market. We find that increasing transparency leads to smaller quote disagreement among dealers and higher trading volume, but the beneficial effects are bigger for uninformed dealers than informed dealers. We also find that information efficiency improves overall in the semi-transparent system; however, informed dealers are found to quote less aggressively in the more transparent market. We conclude that semi-transparency raises market quality in general, but that it is the uninformed dealers who benefit more from this increased quality.