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.     

Analysing job creation effects of scaling up infrastructure spending in South Africa

In a first for South Africa, this article draws on literature on infrastructure productivity to model dynamic economy-wide employment impacts of infrastructure investment funded with different fiscal tools. Using a dynamic computable general equilibrium model, the South African investment plan is modelled, given the infrastructure externality. Alternative fiscal scenarios to finance the policy are modelled in the article. In the long run, unemployment decreases for all types of workers under one of the scenarios. In the short run, only elementary occupation workers benefit from a decrease in unemployment; for the rest, unemployment rises.     

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.     

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.     

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。