Technology and employment: Mass unemployment or job creation? Empirical evidence from European patenting firms

This paper explores the possible job creation effect of innovation activity. We analyze a unique panel dataset covering almost 20,000 patenting firms from Europe over the period 2003–2012. The main outcome from the proposed GMM-SYS estimations is the labor-friendly nature of innovation, which we measure in terms of forward-citation weighted patents. However, this positive impact of innovation is statistically significant only for firms in the high-tech manufacturing sectors, while not significant in low-tech manufacturing and services.     

The adoption of M-government services from the user’s perspectives: Empirical evidence from the United Arab Emirates

The primary aim of this study is to examine the factors that predict end users’ intention to adopt mobile government (m-government) services in a developing country. The research is based upon a self-administered questionnaire survey of 120 current users’ in the United Arab Emirates (UAE), a leader in m-government development in the Arab world. The study employs advanced statistical techniques to test an extended the Technology Acceptance Model (TAM) by incorporating the determinants of trust, cost, social influence, variety of services, perceived usefulness in information technology and demographic profiles. The findings revealed that trust and social influence are positively associated with end users intention to adopt m-government services in the UAE. By identifying the predictors of users’ adoption of m-government, this study provides several theoretical and practical implications related to m-government service adoption.     

Unmasking the interplay between technology evolution and R&D collaboration: Evidence from the global semiconductor manufacturing industry, 1990–2010

Technological progress in an industry is enabled by the collective R&D efforts of suppliers, users and research organizations. In this study, we explore how the pattern of R&D collaboration within the industry community evolves over the technology life cycle. We propose that as the technology evolves from an initial emergence stage to subsequent stages of growth and maturity, there is a corresponding change in the opportunities and challenges confronting industry participants. This results in a shift not only in the relative propensities for internal and collaborative R&D, but also in the distribution of the different types of collaborative interactions involving research organizations, suppliers and users. The context for the study is the global semiconductor manufacturing industry from 1990 to 2010. During this period, the industry experienced exponential technological progress that was fueled by the deep ultraviolet (DUV) manufacturing technology. We draw upon a comprehensive archival dataset of more than 12,000 articles presented in industry technical conferences to analyze the pattern of collaborative R&D during the emergence, growth and maturity stages of the DUV technology. The observed trends in the semiconductor manufacturing industry point to intriguing shifts in the efforts and interactions among suppliers, users and research organizations as they collectively push the technology envelope forward.     

Do mandatory pension contributions hinder innovation? Empirical evidence

This paper empirically investigates the effect of mandatory pension contributions on firm innovation. We find that firms with mandatory contributions experience a decline in their innovation output. This effect is stronger for firms with financial constraints, more short-term institutional investors, higher levels of managerial short-termism. We also document that mandatory pension contributions result in a reduction in firm research and development expenditures and an increase in firm debt-to-asset ratio. Moreover, we report that firms with mandatory contributions increase their alliance activities to pursue innovation with external partners.     

Innovation in times of financialization: Do future-oriented innovation strategies suffer? Examples from German industry

Shareholder value, short-term strategies, quarterly financial reports, and performance-based remuneration are strong indicators of a financial market-oriented company. It is questionable whether innovativeness and sustainable innovation capabilities can be maintained in times of financialization focused on short-term efficiency instead of free space for creativity and learning. Using the example of established German industrial companies, I examined the extent to which financialization and financial market actors steer innovation strategies and practices. In-depth interviews with companies, cluster managers and banks and reviews of financing data do not reveal a direct influence of financial investors on innovation activities. On the contrary, companies’ managements still have the power to decide how much financial control and standardization they allow for their companies’ innovation practices. The pressure on these German companies to innovate comes from their strong market orientation rather than from financialization.     

Reforming intellectual property rights and the Bt cotton seed industry in China: Who benefits from policy reform?

China has been one of the leaders in agricultural biotechnology research and the adoption of transgenic plants. Despite this, critics argue that China's biotechnology policies could be improved to provide more benefits to farmers. The objective of the paper is to examine if policy changes could improve the welfare of farmers in the cotton industry. The paper first reviews recent changes in laws and policies that affect China's plant biotechnology sector—with a focus on IPR legislation and seed industry reform. Next, using a primary data set collected from 1661 plots from a sample of farmers in northern China in 1999, 2000 and 2001, we econometrically estimate the effect of changes to intellectual property rights (IPR) and seed industry reform on farmer pesticide use and yields. Our results are consistent with a conclusion that improvements to the IPR environment and greater commercialization of the seed industry can increase the benefits that farmers derive from new cotton technology.     

What drives the formation of ‘valuable’ university–industry linkages?: Insights from the wine industry

Most of the literature on university–industry (U–I) linkages assumes that these linkages are beneficial per se. We question this assumption, suggesting that not all such linkages are equally helpful. In this paper, we explore the factors driving the formation of ‘valuable U–I linkages’, conceived as those linkages between universities and firms that have a higher potential to diffuse knowledge to other firms in their regional economy. Our empirical strategy combines case-study methodology with econometric techniques using data from two wine clusters in Chile and in Italy. The firm's knowledge base is found to be a key driver of ‘valuable’ U–I linkages. We conclude that selectivity should be encouraged among policy makers endeavouring to promote U–I linkages.     

Price space and product demography: Evidence from the workstation industry, 1980–1996

This study adds to the product innovation literature by emphasizing the important yet understudied role of price distribution in shaping product demography (i.e. new product introductions and exits). While prior research has focused on market niches in the technological and geographic spaces in order to explain product demography, price space has received very limited attention despite the important role of price in the market. We posit that product dynamics are largely shaped by the existing price distribution. More specifically, we argue that local density in price space determines both the likelihood of existing products exiting the market and the rate of new products entering it. Analyzing product exit and entry in the U.S. workstation industry from 1980 to 1996, we find that while price density increases an existing product’s exit rate, new products are also more likely to enter the niches where the price density is high. We also draw attention to internal price density within multiproduct firms, analyzing a product’s price distance from the other products launched by the same firm. We find that this type of internal price density decreases both existing products’ exit rate and new products’ entry likelihood. Our emphasis on price space contributes to the literature on product innovation and demography.     

Does physical attractiveness facilitate customer citizenship behaviors? Cross-cultural evidence from the peer-to-peer economy

As customer co-creation behaviors in the peer-to-peer (P2P) economy become an increasingly important part of the global economy, the study of its drivers is of great necessity. One of the important yet overlooked drivers is digital physical attractiveness. This research draws on impression formation theory to examine how physical attractiveness drives customer citizenship behaviors in the P2P economy. More importantly, the current study investigates the non-linear effect of digital physical attractiveness and how the physical attractiveness effect differs across cultures. Two studies are used to test the framework. Study 1 uses secondary data crawled from China’s largest P2P accommodation-sharing platform. Study 2 analyzes the survey data from 533 accommodation-sharing customers in China (n = 213), Hungary (n = 159), and the U.S. (n = 161). Results found an n-shaped (inverted U) physical attractiveness effect in Study 1 in China, but a U-shaped effect in the cross-cultural context. The U-shaped effect is only effective when customers score high on collectivism, low on power distance, or low on masculinity.     

Is commercialization good or bad for science? Individual-level evidence from the Max Planck Society

Based on new data, this paper studies the invention disclosure, licensing, and spin-off activities of Max Planck Institute directors over the time period 1985-2004, analyzing their effects on the scientists’ subsequent publication and citation records. Consistent with prior findings, inventing does not adversely affect research output. Mixed results are obtained with regard to commercialization activities. The analysis suggests qualifications to earlier explanations of positive relationships between inventing and publishing.     

Did Kettlewell commit fraud? Re-examining the evidence

H.B.D. Kettlewell is famous for several investigations conducted in the early 1950s on the phenomenon of industrial melanism, which are widely regarded as the classic demonstration of natural selection. In a recent (2002) book-length popularization of this episode in the history of the science, science writer Judith Hooper draws attention to what she interprets as discrepancies in the results reported by Kettlewell in his first scientific papers on the subject. On the basis of correspondence among Kettlewell and his associates, a survey of scientific publications that mention outstanding questions surrounding the phenomenon, as well as interviews with his son, surviving colleagues, and scientists who have worked on industrial melanims, Hooper all but explicitly concludes that Kettlewell committed fraud. The following essay critically examines her evidence in support of this allegation, including her discussion of his character, the alleged motives, and whether fraud was even committed. None of Hooper's arguments is found to withstand careful scrutiny. The concluding section draws several conclusions about how history of science should be depicted to the public.     

Is there a linear relationship between R&D intensity and growth? Empirical evidence of non-high-tech vs. high-tech SMEs

To investigate whether there is a similar relationship between R&D intensity and growth in high-tech and non-high-tech small and medium-sized enterprises (SMEs), we examine two samples of SMEs in manufacturing industries, applying the two-step estimation method. Our findings are that R&D intensity restricts the growth of high-tech SMEs at lower levels of R&D intensity and stimulates their growth at higher levels. However, R&D intensity restricts the growth of non-high-tech SMEs regardless of the level of R&D. The relationships obtained between other determinants considered in the literature and the growth of high-tech and non-high-tech SMEs allow us to conclude that (i) smaller, younger, non-high-tech SMEs grow more quickly than larger, older, non-high-tech SMEs, which does not occur in the case of high-tech SMEs; and (ii) financing restrictions are especially important in financing the growth of high-tech SMEs, compared with non-high-tech SMEs.     

Do innovative firms pay higher wages? Micro-level evidence from Brazil

This paper explores the relationship between innovation and wages using Brazil’s employer–employee census (RAIS) and a novel measure of innovation derived from the share of technical and scientific occupations of workers. The results show a robust and positive wage premium associated with innovative firms. The decomposition of this innovation-related wage premium suggests that it is larger for workers in manufacturing, although also positive and significant for those in agriculture and services; and larger for large firms. More importantly, the paper explores the causality between innovation and wages. First, we find some empirical support for “self-selection” — firms that innovate already pay higher wages before becoming innovators. Second, we find strong evidence of wage increases associated with starting innovation activity, which are persistent for three years after firms start innovating. Innovation pays off also for workers.     

Government centrality to university–industry interactions: University research centers and the industry involvement of academic researchers

This paper uses data from a national survey of academic researchers in the US to detect how different types of university research centers affect individual-level university–industry interactions. The results suggest that while affiliation with an industry-related center correlates positively with the likelihood of an academic researcher having had any research-related interactions with private companies, affiliation with centers sponsored by government centers programs correlates positively with the level of industry involvement, no matter whether these centers additionally have ties to private companies. The analysis takes the “scientific and technical human capital” approach, which draws from theories of social capital and human capital and proves useful for framing the institutional and resource-based perspectives that characterize much of the literature on university–industry interactions. The scientific and technical human capital approach is taken because its emphasis on the research capacities of individual academic researchers provides a more direct explanation of government centrality to academic researchers’ industry involvement than provide either the resource-based or institutional views. Implications for policy and management as well as for future applications of the scientific and technical human capital approach are discussed.     

Do firms in clusters invest in R&D more intensively? Theory and evidence from multi-country data

This study aims to evaluate whether firms located in clusters invest more intensively in research and development (R&D) than their non-clustered counterparts. Specifically, it proposes a model of firm R&D and tests empirically its implications for the effect of being located in a cluster on firm R&D intensity. The key ideas underlying the theory are as follows: (1) due either to natural excludability or to a high degree of stickiness of R&D-opportunity-bearing technological knowledge, geographical proximity per se is limited in the (automatic) spillover of knowledge with promising R&D opportunities to nearby firms; (2) geographical proximity may, however, help enhance the effectiveness or efficiency of knowledge exchange through market mechanisms (e.g., through contract R&D, R&D collaboration); (3) potential advantages (or disadvantages) in firm R&D of being located in a cluster also depend on the degree of asymmetry in technological competence among firms located in the cluster. The key ideas are supported by an empirical analysis of a multi-industry, multi-country data set compiled by the World Bank. In particular, the results show that being located in a cluster per se actually has a negative effect on firm R&D intensity, which is in contrast to the conventional wisdom of pure or automatic localized knowledge spillovers, as far as firm R&D intensity is concerned.     

Towards privatized social and employment protections in the platform economy? Evidence from the UK courier sector

Platform capitalism has facilitated the widespread replacement of employment contracts with contracts for services. These offer significantly fewer social and employment protections for the independent contractors engaged. What does this mean for the future of national social and employment protection (SEPs) systems? We show how the question of platform workers’ employment status – and therefore access to SEPs – remain unresolved under UK law. Drawing on socio-legal theory, we demonstrate why digital labor platforms represent a challenge to existing modes of employment law and labor market regulation. In the absence of immediate legal ‘fixes’, some unions and firms are innovating new ‘privatized social protection systems’. A ‘Self-Employed Plus’ (SE+) agreement in the UK parcel courier sector developed between Hermes, a UK-based courier service, and the GMB union represents an important example of such attempts being made to bridge the current regulatory void. We critically analyze the agreement and draw lessons for platform governance theory. We demonstrate that privatized SE+ provisions potentially offer significant benefits for platforms by reducing regulatory oversight, boosting productivity, and enhancing managerial control over platform complementors. At the same time, while they risk undermining national SEP systems and degrading worker protections, they also offer a window of opportunity for trade unions to gain a foothold in the platform economy.     

Do university mergers create academic synergy? Evidence from China and the Nordic Countries

Since the late 1990s, mergers have been pursued by a large number of national university systems. The mergers have been justified as a way of increasing research performance. This paper examines the impact of mergers on one vital measure of university research performance, the production of publications, for 29 Chinese university mergers and 8 Nordic university mergers. Using Web of Science counts of research articles before and after a merger while controlling for the university inputs of R&D funding and research personnel, it was found that Chinese universities exhibited a small but significant increase in the rate of growth of articles following a merger. The Nordic performance was less clear cut. Our findings support the belief that mergers of similarly sized institutions usually have little impact on research performance. In contrast, mergers between a large comprehensive university and much smaller universities have a positive impact on overall publications. We also show that cases in which the merger was between a comprehensive university and a medical school resulted in significantly improved performance in terms of scholarly publications. We attribute the improvement to synergies between the basic biological research in the comprehensive university and the more practical research undertaken in medical schools. We conclude with suggestions for policy-makers aiming to create synergies through mergers.     

Topic‐specific market concentration in the information services industry: Evidence from the DIALOG group of data bases

Abstract

Recent interest has been expressed in the potential of information technology to create new kinds of monopolies. This paper looks at production and marketing factors in the information services industry which may increase concentration in the hands of fewer producers, potentially leading to monopoly formation. The research develops an economic model of topic‐specific market concentration and delineates the factors which might cause monopolies to occur in the markets of information data base production firms. The model shows that market concentration rises with inelastic demand, reduced marginal costs and efficient technology, and increased data acquisition costs exacerbated by low rates of data obsolescence. These effects are empirically investigated in the DIALOG group of data bases. The results of the research have implications for corporate information systems and information systems in the public sector.     

From ivory towers to online bazaars? The internet,social media and competing discourses in the newspaper industry

In line with the development of new media, newspaper companies are facing drastic changes in their competitive environment. Managing change requires both new capabilities and new ways of thinking. Organizational learning could be seen in terms of increasing shared organizational knowledge through changing social practices, which in turn consist of discourses. In this article we investigate the Internet and social-media-related discourse among newspaper journalists, in order to enhance understanding of how social reality is constituted and made sense of in this environment. We identify four types of discourse: Ivory-tower-creating and Shielding, which seem to impede learning, and Accelerating and Connecting, which encourage adaptation to learning and change within newspaper companies.     

Safety in unpredictable complex systems – a framework for the analysis of safety derived from the nuclear power industry

The increasing complexity and power of our technologies compels us to find new ways in which to conceptualise, understand and maintain their safety in the long term. Some complex technological industries have performed better than others in terms of applying sustained and systematic approaches to the maintenance of safety. The United States nuclear power industry can be seen as an ideal test-bed for the development of safety initiatives, being responsible for the control of potentially unpredictable technology that involves extraordinary forces and costs. This paper describes and formalises a framework for better understanding the safety of complex socio-technological systems, based on key events in the development of safety in the United States nuclear power industry. The framework comprises two components: (1) a state-space approach for better conceptualising system failures, the benefits of incident reporting and remedial safety initiatives; and (2) a set of milestones that can be used to assess the development of safety in socio-technological industries. Healthcare and the United States nuclear power industry both represent complex socio-technological systems with similar technical characteristics. However, safety strategies in healthcare have not kept pace with the increasing complexity of clinical practice, and there have been international calls for improvements in patient safety. The framework is applied to the analysis of safety in healthcare, demonstrating its utility as an alternative safety analogy in healthcare. Use of the framework indicates substantial scope for improvements in healthcare safety through major evidence-based system redesign. By lowering the threshold for the reporting of incident data to include accident precursors, it is possible to identify problem areas before patient harm occurs.