From knowledge to added value: A comparative, panel-data analysis of the innovation value chain in Irish and Swiss manufacturing firms

The innovation value chain (IVC) divides the innovation process into three separate links or activities: knowledge gathering, knowledge transformation and knowledge exploitation. Here, we report a comparative panel data analysis of the IVC in Ireland and Switzerland. Both economies are small, very open and depend significantly on innovation to maintain competitive advantage. In recent years, however, R&D and innovation growth in Ireland has been markedly stronger than that in Switzerland. We investigate these differences through the ‘lens’ of the IVC. Significant similarities exist between some aspects of firms’ innovation behaviour in each country: strong complementarities emerge between external knowledge sources and between firms’ internal and external knowledge. And, in both countries, in-house R&D and links to customers prove important drivers of innovation. Innovation drives productivity growth in different ways in the two countries, however, through product change in Switzerland and through process change in Ireland. Other differences in the determinants of innovation performance linked to ownership and firms’ institutional context emphasise the systemic nature of innovation and the legacy of past patterns of industrial development.     

Determinants of environmental innovation—New evidence from German panel data sources

In most cases, empirical analyses of environmental innovations based on firm-level data relied on surveys for one point in time. These surveys allow for the inclusion of many explanatory variables such as different policy instruments or the influence of pressure groups but it is not possible to address the dynamic character of environmental innovations. This paper uses two German panel databases, the establishment panel of the Institute for Employment Research (IAB) and the Mannheim innovation panel (MIP) of the Centre for European Economic Research (ZEW), to explore the determinants of environmental innovations. The econometric estimations show that the improvement of the technological capabilities (“knowledge capital”) by R&D triggers environmental innovations. Environmental regulation, environmental management tools and general organizational changes also encourage environmental innovation, a result that has also been postulated by the famous Porter-hypothesis.     

R&D cooperation and innovation activities of firms—evidence for the German manufacturing industry

The aim of the paper is to investigate in a simultaneous equation framework the role of R&D cooperation in the innovation process—in context with other factors—from two specific aspects. First, analysis focuses on the impact of R&D cooperation on firms’ innovation input and output. Second, analysis is undertaken as to how the number of cooperation partners affects the innovation behaviour of firms. Starting with the discussion of theoretically expected effects of successful R&D cooperation on the innovation activities of firms, the importance of inter-organizational arrangements in R&D is empirically investigated in respect of firms in the German manufacturing industry. The estimation results can be summarized as follows: joint R&D is used to complement internal resources in the innovation process, enhancing the innovation input and output measured by the intensity of in-house R&D or the realization of product innovations. On the input side, the intensity of in-house R&D also stimulates the probability and the number of joint R&D activities with other firms and institutions significantly.     

R&D cooperation and failures in innovation projects: Empirical evidence from French CIS data

The second French Community Innovation Survey (CIS) indicates that 14% of R&D collaborating firms had to abandon or delay their innovation projects due to difficulties in their partnerships, an outcome which we term “cooperation failures”. Controlling for sample selection on the cooperation decision, our estimates show that firms collaborating with competitors and public research organizations (PROs), especially when they are foreign, are more likely to delay or stop an innovation project because of difficulties encountered in their R&D partnerships. More surprisingly, firms collaborating with their suppliers also face a higher risk of “cooperation failures”. At least for PROs, firms can reduce the risk of “cooperation failures” through previous experiences in partnerships. Larger firms and group subsidiaries are less likely to face “cooperation failures”, and so do firms in industries with a strong appropriability regime.     

有效需求规模、双重需求结构与产业创新能力 ——来自中国装备制造业的证据

摘要：在我国外向型经济发展战略的实施过程中,由于外商直接投资对本土企业的市场空间存在挤出效应,加之全球价值链分工体系的嵌入造成用户对国内产品需求的低端化趋势,导致以装备制造业为代表的本土产业部门缺乏足够的需求支撑,难以实现产业技术创新的良性循环。本文以“市场换技术”战略为背景,从开放经济视角扩展了有效需求规模的概念,并在全球价值链理论框架下分析了我国装备制造业的双重需求结构特征,认为有效需求规模不足和需求结构低端化是抑制产业创新能力提升的关键因素。Granger因果检验表明,有效需求规模与产业创新能力存在严格的双向因果关系;面板数据的固定效应模型显示,需求结构对我国装备制造业创新能力的影响并不十分显著,原因是本土企业长期被锁定在价值链低端而无法起到激励自主研发的应有效果。因而,以突破需求因素制约为导向的政策措施是提升产业创新能力的出路所在。     

The role of technological management as a source of innovation: Evidence from Spanish manufacturing firms

The objective of this study is to amplify the scarce empirical evidence about the effect of technological management on innovation. At the same time, the investigation is intended to examine whether the scale of production by itself stimulates technological activity and/or it acts as a proxy of other determinants of innovation. The estimation of an innovation production function with a panel of Spanish manufacturing firms shows that the planning and monitoring of the innovation process and the hiring of personnel with special skills for technological activities are significant sources of innovation, although with important differences regarding the type of innovation (process versus product). In addition, the evidence suggests that large firms’ advantages for the generation of product innovations are related to a different use and effectiveness of technological management mechanisms.     

Co-operative ties and innovation: Some new evidence for UK manufacturing

Drawing upon survey data from 436 firms, this paper explores the impact of co-operative ties upon levels of innovation (both product and process) in five UK manufacturing industries. Unlike a number of previous studies in this area, the data itself captures both the scale and multi-dimensional nature of both co-operation and innovation. The paper finds evidence to support the hypothesis that vertical co-operative ties are a significant factor in explaining firms’ levels of innovative performance. However, the empirical analysis suggests that it is the strength of such ties - and not just their existence - which are important with stronger dyadic relations between firms having a positive and significant impact upon levels of innovation. The analysis also finds that in some sectors, horizontal co-operative ties are (albeit to a lesser extent) also important.     

Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK

Innovating firms in new industries face a number of technological and market risks, especially appropriability and competence destruction. However, the relative significance of these varies between different sub-sectors, and so do managerial ways of dealing with them. These in turn are influenced by institutional frameworks, particularly those governing skill formation systems and labour markets. Consequently, the relative success of firms in fields with different appropriability and competence destruction risks is likely to vary between countries with contrasting patterns of labour market organisation. In the biotechnology and computer software industries, there are major differences in the dominant risks faced by innovating firms such that we would expect their relative success to differ between Germany, Sweden and the UK. While the UK and, to a limited extent, Sweden, have developed institutions similar to those found in the US that help govern “radically innovative” firm competences, Germany has invested in institutional frameworks associated with “competency enhancing” human resource practices that give its firms an advantage in more generic technologies in which organisational complexity is higher. While the distribution of public companies across sub-sectors broadly follows these expectations, Sweden has developed considerable strength in middleware software. This results from changing property rights and personnel policies at Ericsson.     

University patenting and its effects on academic research: The emerging European evidence

This paper surveys the existing fragmentary data on the growth of university-owned patents and university-invented patents in Europe. We find evidence that university patenting is growing, but this phenomenon remains heterogeneous across countries and disciplines. We found some evidence that university licensing is not profitable for most universities, although some do succeed in attracting substantial additional revenues. This might be due to the fact that patents and publications tend to go hand in hand. In a dynamic setting however, we fear that the increase in university patenting exacerbates differences across universities in terms of financial resources and research outcome.     

The global crisis and firms’ investments in innovation

The longer term impact of the global crisis depends on how business innovation capacities were affected. Understanding which firms suffered most is essential for developing adequate post-crisis recovery policies. This paper provides first quantitative evidence on these questions based on an original firm-level dataset for eight Latin American countries in 2008-2009. We find the crisis led many firms to stop ongoing innovation projects. Probit regression results show that firms with access to public funding were less likely to abandon these investments. Younger firms and businesses supplying foreign multinationals or suffering export shocks were more likely to do so.     

Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies

There is evidence that the notion of innovation, well established in the manufacturing sector, cannot simply be transposed to the service sector. This article deals critically with existing measurement concepts derived from manufacturing, and introduces a new typology with a view to obtaining a better understanding of innovation in services. Selected results from the German innovation survey are analysed in order to support the conceptual findings and to identify potential improvements. Special attention is directed towards the inclusion of knowledge-intensive business services that are of particular importance for innovation processes.     

Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms

This paper explores the relationship between firms’ R&D cooperation strategies and their propensity to introduce environmental innovations.Previous literature has supported that environmental innovations differ from other innovations as far as externalities and drivers of their introduction are concerned, highlighting mainly the importance of regulation to trigger them. Using data from the Community Innovation Survey on Spanish manufacturing firms (PITEC), this paper investigates specificities that affect rather how they are developed, and in particular the higher importance of R&D cooperation with external partners.The econometric estimations, controlling for selection bias, suggest that environmental innovative firms cooperate on innovation with external partners to a higher extent than other innovative firms. Furthermore, cooperation with suppliers, KIBS and universities is more relevant than for other innovators, whereas cooperation with clients does not seem to be differentially important. Finally, the results bespoke of a substitution effect between cooperation activities and the internal R&D effort.     

From symbolic values to symbolic innovation: Internet-memes and innovation

Innovation studies has largely focused on technological assets, while leaving other sources and forms of innovation less tackled. Among this neglected corpus, this article stresses the important role played by symbolic value in the consumption and production processes of innovative goods and services. I explore especially Internet-memes that represent iconic productions of the Internet ‘lead culture’, which embed significant symbolic values. This article therefore, refers to the economic sociology and innovation management literature to emphasise the force of these creations of symbolic value by culture-lead communities, through their production of Internet-memes. I argue that Internet-memes represent a widespread source of innovation in various sectors (from cultural industries to less expect ones like finance). While exploratory, the present study extends the debate on the nature of innovation, its symbolic and cultural aspects and its diffusion processes. It ultimately suggests potential new paths for innovation policies to tackle these new forms of innovations.     

企业出口背景下的R&D投入产出效应—基于江苏省企业科技创新普查数据的分析

文章采用二级CES生产函数来分析江苏企业的实际R&D数据,研究出口企业R&D贡献是否不同于非出口的企业,出口和非出口企业的R&D贡献是否会由于产业、地区、企业规模和类型的不同出现差异。通过分析发现:出口企业的R&D投入产出贡献明显高于非出口企业;某些产业的非R&D投入产出贡献大于R&D投入产出贡献;R&D资本投入产出贡献大于R&D劳动投入产出贡献。     

The role of makerspaces in supporting consumer innovation and diffusion: An empirical analysis

Makerspaces are open communities for tinkering, innovating, and socializing: They are equipped with tools and training that support “making” by participants. It has been argued that makerspaces can be a powerful vehicle to enhance both innovation and innovation diffusion by consumers. This research note offers initial empirical evidence for these claims. Through a survey of 558 participants drawn from makerspaces worldwide, the study shows that the innovation rate is about 53% and that the diffusion rate is about 18% among these individuals – substantially higher than the innovation and diffusion rates found in national innovation surveys of general populations, i.e. individuals who innovate independently at home at their own discretion.These findings doubtless reflect both a selection and a treatment effect: Individuals inclined or motivated to innovate and/or diffuse, tend to join makerspaces; and once individuals do participate, the rich resources they find in makerspaces most likely will improve the opportunities to innovate and/or diffuse successfully. Since innovation by consumers is both personally and economically valuable, these findings support the case for further research into the nature of successful makerspaces, and suggest the potential social welfare value of public investment.     

A tale of two literatures: Transaction costs and property rights in innovation outsourcing

This paper investigates the relative importance of property rights and transactions cost factors in driving the decision of firms to outsource innovation. Using data for over 8000 firms from the UK Community Innovation Survey, we find that property right factors dominate over transaction cost factors. Transaction cost variables are more important for process innovation, while property rights variables are more significant for firms involved in product innovation. In addition, we find that firms involved in process innovation have a higher probability of outsourcing innovation than firms involved in product innovation.     

Open service innovation and the firm's search for external knowledge

The concept of open innovation captures the increasing propensity of firms to work across their traditional boundaries of operation. This phenomenon has largely been studied from the viewpoint of manufacturing businesses while services have received much less attention despite the predominant role they play in advanced economies. This paper focuses on open innovation in services, both as a subsector of the economy and as a component of the activities of manufacturing firms. We study the open innovation practices of business services firms and then consider the implications for open innovation of the adoption of a service inclusive business model by manufacturing firms. Our analyses are based on a unique dataset with information on open innovation activities amongst UK firms. Overall, engagement in open innovation increases with firm size and R&D expenditure. Business services are more active open innovators than manufacturers; they are more engaged in informal relative to formal open innovation practices than manufacturers; and they attach more importance to scientific and technical knowledge than to market knowledge compared to manufacturing firms. Open innovation practices are also associated with the adoption of a service inclusive business model in manufacturing firms and service-integrated manufacturers engage in more informal knowledge-exchange activities. The paper contributes towards a reconceptualisation of open innovation in service businesses and a deeper evidence-based understanding of the service economy.     

The value of innovation: The interaction of competition, R&D and IP

This paper analyses market valuations of UK companies using a new data set of their R&D and IP activities (1989-2002). In contrast to previous studies, the analysis is conducted at the sectoral-level, where the sectors are based on the technological classification originating from Pavitt [Pavitt, K., 1984. Sectoral patterns of technical change. Research Policy 13, 343-373]. The first main result is that the valuation of R&D varies substantially across these sectors. Another important result is that, on average, firms that receive only UK patents tend to have no significant market premium. In direct contrast, patenting through the European Patent Office does raise market value, as does the registration of trade marks in the UK for most sectors. To explore these variations the paper links competitive conditions with the market valuation of innovation. Using profit persistence as a measure of competitive pressure, we find that the sectors that are the most competitive have the lowest market valuation of R&D. Furthermore, within the most competitive sector (‘science based’ manufacturing), firms with larger market shares (an inverse indicator of competitive pressure) also have higher R&D valuations, as well as some positive return to UK patents. We conclude that this evidence supports Schumpeter by finding higher returns to innovation in less than fully competitive markets and contradicts Arrow [Arrow, K., 1962. Economic welfare and the allocation of resources for invention. In: Nelson, R. (Ed.), The Rate and Direction of Inventive Activity. Princeton University Press, Princeton], who argued that, with the existence of IP rights, competitive market structure provides higher incentives to innovate.     

Mapping public support for innovation: A comparison of policy alignment in the UK and France

This paper proposes and tests a three-dimensional model of public support design as a framework to compare public incentives for innovation in firms through time and across countries, and consequently to compare forms of policy alignment of innovation objectives in an economy. Using data on 149 French and British policy programmes from the early 1980s to 2002, this paper shows that policy-makers implement programmes within a different three-dimensional design space in order to align several distinctive objectives and consequently strengthen the impact of governmental measures. Moreover, as the objectives of the national players and policy-makers evolved, the portfolio of innovation policies also evolved in their separate ways. Nevertheless, some similar trends are also observed.