Innovation performance and the role of clustering at the local enterprise level: a fuzzy-set qualitative comparative analysis approach

ABSTRACT

This study, utilizes an innovative methodological approach, fuzzy-set Qualitative Comparative Analysis (fsQCA), investigating the drivers of heterogeneous geographies characterizing English Local Economic Partnerships (LEPs). The fsQCA technique offers a novel configurational alternative to regression-based approaches investigating the effects of clustering in conjunction with firm-level innovation, university third-sector activity (TSA) and entrepreneurship, on LEPs innovation performance. The findings, offer contributions to the theories of industrial clusters and innovation, regional innovation systems, knowledge spillovers and entrepreneurial university innovation within LEPs. First, supporting fsQCAs, no individual variable generates either a positive/negative innovation outcome. Second, while all positive innovation recipes include presence of the cluster variable, for negative innovation recipes, only one does not identify absence of clustering as relevant. Given that the cluster variable does not appear in any recipes without at least one of the other variables suggests activity concentration does not exist in isolation to generate innovation outcomes without other localized conditions existing, e.g. firm-level innovation. Third, there is evidence for the non-cluster-based aspects of knowledge spillover theory of entrepreneurship with respect to university activity and the entrepreneurial university concept. Instead, roles of entrepreneurship and university TSA, while important, appear to be more peripheral and geographically context specific.     

Innovation in start-ups: Ideas filling the void or ideas devoid of resources and capabilities?

We investigate how access to different types of resources affects the success of entrepreneurial start-up firms at early stages of development in small isolated economies by studying 12 start-ups based in New Zealand. We find that successful commercialization of innovations depends on the availability of complementary assets, and that capability-based resources, especially dynamic capabilities, have a greater impact on competitive advantage of start-ups than other intangible and tangible assets. For the start-ups in our study, alliances with partners are particularly important, and so the ability to form alliances is a key capability. Successful start-ups leverage their available resources to attract alliance partners in order to access necessary complementary resources. The start-ups in our study clearly demonstrated the ability to attract partners locally but struggled to do so internationally, thereby limiting their growth potential.     

Is R&D spending influenced by disinvestment and local political corruption? The case of Indian central public sector enterprises

The current study examines the effect of disinvestment (dilution of state ownership) and local political corruption on R&D spending in enterprises owned by the central government of India. Based on certain characteristic features of innovation as a strategy available to state-owned enterprises, I build two sets of hypotheses formalising the channels of how these variables may affect the possibility and amount of R&D. Data is drawn from multiple sources to compile a dataset that covers all manufacturing central government-owned enterprises in India over a period of ten years from 2007 to 2016. The study employs an instrumental variable technique to reduce the endogeneity between disinvestment and R&D decisions. We find that, while disinvestment and local political corruption have strong negative effects on whether a firm invests in R&D or not, it has no effect on the amount of R&D. In fact, the amount is driven by a host of firm-specific factors such as size, profit and proficiency of the share of skilled labor, managerial strength and non-unionisation of labor. We also find that the effects are strongly driven by the size of firms, special status awarded to firms and the ideology of the state where the enterprise operates.     

Unpacking systemic innovation capacity as strategic ambidexterity: How projects dynamically configure capabilities for agricultural innovation

Problems in agriculture and land use are increasingly recognised as complex, uncertain, operating at multiple levels (field to global value chains) and involving social, economic, institutional, and technological change. This has implications for how projects navigate complexity to achieve impact. However, few studies have systematically evaluated how project actors engage with other actors to configure capabilities and resources across multiple levels in agricultural innovation systems (AIS), from the individual to the network, to mobilise and build systemic innovation capacity. An analytical framework conceptualising the nested configuration of capabilities at multiple levels in the AIS is applied to two projects that successfully tackled agricultural and land management problems of differing complexity: (i) improving lamb survival; and (ii) sustainable land management in New Zealand. Findings indicate that innovation capacity constitutes project actors interacting with other AIS actors to configure capabilities and resources at different levels of the AIS in order to leverage positive project path dependencies and break path dependencies that are created by existing and historical capability configurations. Project actors also balance exploiting existing innovation capabilities, as well as using adaptive capability for exploring and creating new capability configurations to respond to emerging circumstances. This implies that projects should have strategic ambidexterity in terms of how they combine exploiting existing and exploring new networks to access, combine, create, or disconnect certain capabilities to address ‘capability voids’ in AIS. This requires support to projects to constantly scrutinise, through reflexive monitoring by dedicated facilitators, specific agriculture and land use policies connected to major sustainable development models (e.g. climate smart agriculture, urban farming, smart farming). The can help assess whether the AIS provides the right mix of capabilities and whether this is adequately supported by innovation policy, to realize transformative policy objectives.     

The forthcoming Artificial Intelligence (AI) revolution: Its impact on society and firms

The impact of the industrial and digital (information) revolutions has, undoubtedly, been substantial on practically all aspects of our society, life, firms and employment. Will the forthcoming AI revolution produce similar, far-reaching effects? By examining analogous inventions of the industrial, digital and AI revolutions, this article claims that the latter is on target and that it would bring extensive changes that will also affect all aspects of our society and life. In addition, its impact on firms and employment will be considerable, resulting in richly interconnected organizations with decision making based on the analysis and exploitation of “big” data and intensified, global competition among firms. People will be capable of buying goods and obtaining services from anywhere in the world using the Internet, and exploiting the unlimited, additional benefits that will open through the widespread usage of AI inventions. The paper concludes that significant competitive advantages will continue to accrue to those utilizing the Internet widely and willing to take entrepreneurial risks in order to turn innovative products/services into worldwide commercial success stories. The greatest challenge facing societies and firms would be utilizing the benefits of availing AI technologies, providing vast opportunities for both new products/services and immense productivity improvements while avoiding the dangers and disadvantages in terms of increased unemployment and greater wealth inequalities.     

Stage-gate process for life sciences and medical innovation investment

Life science innovation has led to significant improvements in clinical outcomes and has been a source of financial growth for individuals and institutions capable of performing appropriate investments in this sector. Several groups have developed methodologies to assist medical technology innovators in the design and development activities. Unfortunately, these tools have not aided the general investment community to profit from these enterprises. This situation has contributed to a general reduction in risk capital directed towards life sciences compared to other industries. We review the current investment practices in the life science sector and present a comprehensive stage-gate model that aims to captures this investment process. An analysis of best practices and in-depth interviews with 68 life sciences investors and entrepreneurs worldwide are used to support such model. A single case-control study comparing life science investment execution within two similar investment firms was conducted to evaluate feasibility in the implementation of these practices. The stage-gate model includes (I) General vision and investment strategy definition; (II) Venture search, screening and rapid pre-evaluation; (III) Due diligence and negotiation of terms; (IV) Portfolio management, evaluation, and exit. The difference in execution of investment and results from a post-performance Root Cause Analysis were consistent with a reduction in perceived risk from the case company trained with the proposed model compared to the control. This suggests that our developed model and process may be useful in encouraging life sciences investment via evidence-based evaluations.     

A SURVEY OF THE ECONOMICS OF PATENT SYSTEMS AND PROCEDURES

The last several decades have seen increases in patenting activity worldwide, as well as growing issues related to patent quality. In response to these quality issues a recent patent literature has emerged, that investigates the behavior and incentives of patent examiners, applicants, and third parties. In this paper, we provide an overview of patent procedures, patent systems and a survey of the new economic literature on patent systems. Both theoretical and empirical papers are considered. Policy implications coming from this literature are presented.     

International spillovers of China's structural reforms

This paper sheds light on the international spillovers of China's reforms in upgrading industrial capabilities, liberalizing capital account, internationalizing the renminbi, and transition to flexible exchange rates. Drawing on two-country New Keynesian model of endogenous entry and portfolio adjustment, we find that China's industrial upgrading that peddles on yuan appreciation lifts all boats through global production network irrespective of capital account convertibility, degree of renminbi internationalization, and exchange rate reform. Feasibility of appreciation-driven upgrading is called into question, however, when renminbi reform and capital account liberalization go in parallel. We also show that international spillovers disappear once renminbi internationalization is associated with liberalized capital account and flexible renminbi exchange rates.     

ASSESSING THE EFFECT OF PUBLIC SUBSIDIES ON FIRM R&D INVESTMENT: A SURVEY

This survey examines the empirical literature on the relationship between public R&D subsidies and private R&D investment over the past five decades. The survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues. We aim to provide further explanations of the possible causes of that heterogeneity. In particular, we emphasise a set of issues that, in our view, are critical to understanding the potential effect of public R&D subsidies on private R&D spending. Special attention is paid to the dynamic aspects and composition of firm R&D, the constraints faced by the firm (such as financial constraints), and the amount and source of public subsidies. None of these issues have been investigated in depth. We formulate a set of research assumptions to guide future empirical research in this field.     

客户协同创新维度及构成实证研究

客户协同创新是开放网络环境下企业创新能力提升的重要途径。基于协同理论、关系嵌入理论及客户参与创新等理论基础，对客户协同创新要素进行理论分析。采用探索性案例分析法，归纳客户协同创新要素特征，包括由互惠利益、关系质量和持续意愿构成的协同关系嵌入，由程序化协调、人际关系协调构成的协调协作机制，以及由信息资源分享、协同任务分担构成的协同资源投入。以案例研究结论为基础，进行量表开发，选择知识密集型服务业为实证对象，验证客户协同创新维度构成，可为客户协同创新机理研究与应用实践提供理论基础。