Upgrading the technological capabilities of foreign transnational subsidiaries in developing countries: The case of electronics in Thailand

Although substantial research shows the importance of transnational corporations (TNCs) to export-led growth in some developing countries, it cannot be assumed that TNC subsidiaries will automatically upgrade their capabilities through time or in a uniform fashion. This paper explores the pattern and pace of a sample of exporting TNC subsidiaries operating in the electronics industry in Thailand, showing how the different architectures of global value chains (centralised versus decentralised) shaped the technological progress of subsidiaries in this country. The case evidence suggests a wide variety in upgrading through time, with some subsidiaries failing to develop capabilities and remaining as ‘assembly only’ plants. Other more dynamic plants developed process engineering and product design skills, investing heavily in capability building. One common determinant in capability building appears to be the overall technology strategy of the global value chain leader (or parent company). In those subsidiaries which did not upgrade beyond assembly, technology decisions and processes were tightly controlled within the parent headquarter locations in relatively centralised international value networks. By contrast, the more dynamic plants exercised more discretion over local capability building. The latter operated in relatively decentralised networks, more open to domestic policies to encourage upgrading. The study suggests that governments should tailor upgrading policies not only according to the approximate level of capabilities attained by local subsidiaries, but also according to how receptive subsidiaries are to upgrading, arguing that capability building and policy receptiveness go hand-in-hand. Other countries hoping to upgrade the quality of foreign direct investment might also wish to focus policies on the more technologically capable, ambitious and receptive categories of foreign subsidiary.     

The evolving nature of Taiwan's national innovation system: The case of biotechnology innovation networks

The dynamics of national innovation systems (NISs) are a source of considerable academic and policy interest, especially when to address new competitive challenges they involve changing institutions and relationships within successful systems. This paper examines the case of Taiwan which is embarking on a new phase in its approach to building its national innovative capacity through creating the infrastructure for a biotechnology industry. By examining the process and mechanisms by which new biotechnology innovation networks are being created, and contrasting their development with existing networks, we analyse the dynamics of Taiwan's NIS. The paper reviews the prospects for this new phase in Taiwan's transition from ‘imitation’ to ‘innovation’. The paper aims to add to the understanding of how innovation systems evolve. It is concerned with the contributors, processes and challenges of NIS evolution and the form and meaning of its dynamic changes.     

Users as innovators in developing countries: The global sources of innovation and diffusion in mobile banking services

This paper examines the extent to which users in developing countries innovate, the factors that enable these innovations and whether they are meaningful on a global stage. To study this issue, we conducted an empirical investigation into the origin and types of innovations in financial services offered via mobile phones, a global, multi-billion-dollar industry in which developing economies play an important role. We used the complete list of mobile financial services, as reported by the GSM Association, and collected detailed histories of the development of the services and their innovation process. Our analysis, the first of its kind, shows that 85% of the innovations in this field originated in developing countries. We also conclude that, at least 50% of all mobile financial services were pioneered by users, approximately 45% by producers, and the remaining were jointly developed by users and producers. The main factors contributing to these innovations to occur in developing countries are the high levels of need, the existence of flexible platforms, in combination with increased access to information and communication technology. Additionally, services developed by users diffused at more than double the rate of producer-innovations. Finally, we observe that three-quarters of the innovations that originated in non-OECD countries have already diffused to OECD countries, and that the (user) innovations are therefore globally meaningful. This study suggests that the traditional North-to-South diffusion framework fails to explain these new sources of innovation and may require re-examination.     

Measuring systemic problems in National Innovation Systems. An application to Thailand

The paper contributes to research on innovation systems in general and, in particular, to the current debate on rationales for innovation policy by providing a framework to identify systemic problems in a given system of innovation and test the framework empirically. The data were drawn from the Thai Community Innovation Survey in the period after which a major change in the country's innovation system policy had been initiated. By hierarchical factor analysis, systemic problems are identified and grouped into four components: institution, network, Science and Technology infrastructure and other support services. The analysis allows researchers to investigate the mismatch between policies and problems and identify policy gaps.     

National health innovation systems: Clustering the OECD countries by innovative output in healthcare using a multi indicator approach

The importance of innovation in healthcare has increased within the last decades as challenges, like rising costs and an aging demographic, have to be solved. The degree of innovativeness in healthcare is strongly influenced by the National Health Innovation System, which as a sectoral innovation system encompasses a wide variety of actors and related knowledge. Despite the highly practical relevance of the topic, there are only a few studies that analyze innovation in healthcare on a national level. Thus, this study is a starting point and, building on the theoretical framework of national innovation systems, answers the following questions: “Can countries be grouped by their innovation output in healthcare and do those groups differ in factors describing the healthcare system? Do countries with strong national innovation systems also have strong national health innovation systems and vice versa?” We compare the healthcare innovation output of 30 OECD countries using a multi-indicator approach and categorize them into four distinct groups using cluster analysis. The cluster consisting of the Scandinavian countries, the Netherlands and Switzerland shows the highest innovation output measured in knowledge production and knowledge commercialization. Surprisingly, these countries, with the exception of Switzerland, only rank in the medium group when considering the entire national innovation system. Policymakers and researchers might be particularly interested in studying the healthcare systems of these countries.     

技术创新与文化创意:发展中国家经济崛起的思考

随着对创意产业研究的兴起,文化创意一词开始进入经济学家的视野。在广义理解上,人们习惯把创意和创新看作是一回事,即都是指将一个潜在机会转变为新的“点子”,并将这些点子转化为广泛的实践应用的过程。但从狭义角度看,两者实际存在着很大的不同,即,创新对应的主体是技术,而创意对应的主体则是文化。基于此,本文首先探讨了创新和创意的历史由来,进而剖析了文化创意与技术创新的关系;在此基础上,研究了文化创意与发展中国家经济崛起的联系;最后,针对中国经济跨越发展道路中的文化创意问题进行了尝试性的分析。     

Effects of taxation on social innovation and implications for achieving sustainable development goals in developing countries: A literature review

In developing countries, taxation is perceived as a brake on economic growth. Indeed, taxes in most of these countries are not sufficiently adapted to the specificity of the taxpayer and often do not consider the weak administrative capacity of the countries in the region. In this context, reforms have been initiated over the last decade to create tax environments that encourage savings, investment, entrepreneurship, and social innovation. This study provides an overview of research on the effects of taxation on social innovation and the corresponding implications for the achievement of Sustainable Development Goals (SDGs) in developing countries, taking three approaches: thematic, chronological, and methodological. Most studies agree that high taxes in business undermine social innovation and thus the achievement of SDGs, as social innovation is known to be a driver of most SDGs and business the vehicle. The majority of the selected studies used primary data collected from samples whose representativeness with respect to the population concerned (notably businesses) is still not explicitly justified.     

国家创新能力预警信息系统研究

国家创新能力是一个国家创新水平与潜力的综合体现，也是国家创新系统要解决的核心问题之一。本文在国家创新能力评价指标与方法、预警机制研究基础上，提出了建立国家创新能力预警信息系统的必要性，分析了系统建立的方法、步骤及所要解决的关键问题。     

User acceptance of a digital library system in developing countries: An application of the Technology Acceptance Model

This study examines the factors that influence people's adoption and use of a digital library system and tests the applicability of the Technology Acceptance Model (TAM) in the context of developing countries. Using data from a survey of 16 institutions in Africa, Asia, and Central/Latin America (N = 1082), a path analysis revealed that perceived ease of use of the library system had a significant impact on perceived usefulness, which ultimately led to behavioral intention to use. In addition, the study examined the similarities and differences in the significant predictors of the digital library acceptance across countries and continents. Further, the current study suggests that external variables that affect perceived ease of use and usefulness need to be considered as important factors in the process of designing, implementing, and operating digital library systems. Such consideration will help decrease the mismatch between system design and local users’ realities, and further facilitate the successful adoption of digital library systems in developing countries.     

Absorptive capacities approaches for investigating national innovation systems in low and middle income countries

This review article covers some of the founding literature that helps develop our understanding of the National Innovation System (NIS) concept. Subsequently, several versions of NIS, including system-functional approaches, are discussed and compared with narrow research and development (R&D) and market-based approaches. Finally, the article contends that the system-functional and other narrow approaches are limited in application to the developing low- and middle-income countries (LMICs). Thus, it makes a case for more inclusive absorptive capacity approaches and explains how they might be more relevant in investigating the NIS of an LMIC. Such approaches suggest LMICs be strategic in building their innovation base and plead for strong local conditions (capacities) to produce knowledge as well as capture and improvise on incoming knowledge from abroad. The research is important as it provides insights into analyzing and capturing innovation processes in LMICs, which are prime candidates for development and innovation studies and practice.     

Corruption as a source of e-Government projects failure in developing countries: A theoretical exposition

While the literature has touted e-Government as a tool for combating corruption, no study has discussed so far how corruption could influence e-Government project failure. This article tries to fill part of this void in past research by proposing a contextual framework that highlights the role corruption plays in stimulating the failure of e-Government projects in developing countries. Informed by prior relevant literature on general systems, organizational information processing, corruption, as well as e-Government, the proposed framework argues that the prevalence of corruption in developing economies could restrict moral and governance capabilities of administrative systems overseeing e-Governments in a way that could lead to the failure of these entities to produce initiatives that meet stakeholders' expectations. This theoretical study discusses this idea and underscores the value of the suggested framework for guiding scientific inquiries into this important topic and helping the public officials interested in planning, managing, and auditing e-Government initiatives.     

产业数字创新系统功能特征分析

新一轮数字革命对产业创新产生了系统性的影响。论文基于创新系统功能分析框架分析数字化促进产业创新的机理。研究表明数字化对于创新系统功能提升的作用维度是多元和综合的。论文将产业创新系统功能维度归纳为八个方面,并剖析数字化引发的产业创新的动态特征,主要结论有：知识创造活动体现为融合和再创造过程,知识扩散依赖基于产业知识凝练的算法和模型;数字化通过激发需求、破解产业瓶颈提供了众多创新的机会;平台通过解决产业发展的关键阻力问题来促进广泛的资源合作,同时通过产业基础设施和共性服务的供给赋能多元创新主体。最后梳理系统功能运行的薄弱与积极因素,提出相应的政策建议。     

Modeling the relative efficiency of national innovation systems

Although a large amount of past research has theorized about the character of national innovation systems (NISs), there has been limited process-oriented empirical investigation of this matter, possibly for methodological reasons. In this paper, we first propose a relational network data envelopment analysis (DEA) model for measuring the innovation efficiency of the NIS by decomposing the innovation process into a network with a two-stage innovation production framework, an upstream knowledge production process (KPP) and a downstream knowledge commercialization process (KCP). Although the concept of innovation efficiency is a simplification of the innovation process, it may be a useful tool for guiding policy decisions. We subsequently use a second-step partial least squares regression (PLSR) to examine the effects of policy-based institutional environment on innovation efficiency, considering statistical problems such as multicollinearity, small datasets and a small number of distribution assumptions. The hybrid two-step analytical procedure is used to consider 22 OECD (Organisation for Economic Co-operation and Development) countries. A significant rank difference, which indicates a non-coordinated relationship between upstream R&D (research and development) efficiency and downstream commercialization efficiency, is identified for most countries. The evidence also indicates that the overall innovation efficiency of an NIS is mainly subject to downstream commercial efficiency performance and that improving commercial efficiency should thus be a primary consideration in future innovation policy-making in most OECD countries. Finally, the results obtained using PLSR show that the various factors chosen to represent the embedded policy-based institutional environment have a significant influence on the efficiency performance of the two individual component processes, confirming the impact of public policy interventions undertaken by the government on the innovation performance of NISs. Based on these key findings, some country-specific and process-specific innovation policies have been suggested.     

Role of public research institutes in national innovation systems in industrialized countries: The cases of Fraunhofer,NIST, CSIRO,AIST, and ITRI

Public Research Institutes (PRIs) were established for many reasons, such as to promote defence related research and health related research. Helping domestic industries remains one of the important missions for public research institutes even when the countries have industrialized and firms’ technological capabilities are high. PRIs aim to upgrade existing industries, especially SMEs, as well as spearheading new ones. They can conduct research to solve today’s problems of existing industries and those of next generation technologies which might lead to creation of new industries. Moreover, relationship between PRIs and firms and non-firm actors like universities became more intense, open, horizontal, international, and longer term. To reduce risk and uncertainty inherent in research mentioned above, intermediary roles of PRIs are increasingly important. The emphasis and the ways PRIs help industry change over time and vary across countries as they are integral part of national innovation systems. This makes generalization difficult, but the experiences of five leading PRIs in Germany, Taiwan, Japan, Australia, and the US shows that, the balances between contract research vs. longer term research with own initiative, mobility of researchers vs. retaining core researchers, and competitive grants and funds from industry vs. block grants from government are important to keep PRIs relevant to industry needs and maintain research standards. The governance of PRIs is of particular importance to maintain proper balances.     

Embeddedness, social epistemology and breakthrough innovation: The case of the development of statins

Radical, breakthrough innovations create not only great industrial possibilities, but also great social uncertainties. When a breakthrough medical technology is discovered, the question arises as to whether to accept the possible risks involved, or to defer implementing the innovation until more data is available, and, specifically, until others have taken up the innovation and demonstrated both its efficacy, its relative safety and market acceptance. Specifically, when a firm discovers a new candidate substance for a first in its class drug, how to evaluate the potential risks becomes a key predicament for management. This paper focuses on the role of a firm's social networks and national innovation system context in influencing the social epistemology around potential breakthrough innovations. Through an examination of the processes of drug development related to the same candidate substance in a Japanese firm and an American firm, we suggest that, in addition to organizational capabilities at the corporate level, social capital, specifically formed under a certain innovation system, plays a key role in leading to the successful introduction of breakthrough innovations.     

国家创新环境评价指标体系研究：创新系统视角

 本文在梳理国内外有关创新环境研究的基础上,基于创新系统理论从宏观层面深入探讨创新环境的评价指标体系。本文认为创新环境是支撑创新活动的重要条件,不仅包含各个行为主体之间形成的网络关系,也包含制度环境、基础设施、政策法规、教育环境、国际环境等要素条件,可分为软性环境与硬性环境。创新环境对于创新系统运转具有重要作用,既影响创新主体之间的关系,也影响创新过程的绩效。本文提出创新环境评价的基本分析框架,以系统性、合理性、全面性为基本原则,从人才环境、资金环境、市场环境、创业环境、竞争与合作环境5个维度构建国家创新环境评价指标体系,为全面、科学地评价创新环境提供方法参考。     

国家创新环境评价指标体系研究：创新系统视角

 本文在梳理国内外有关创新环境研究的基础上，基于创新系统理论从宏观层面深入探讨创新环境的评价指标体系。本文认为创新环境是支撑创新活动的重要条件，不仅包含各个行为主体之间形成的网络关系，也包含制度环境、基础设施、政策法规、教育环境、国际环境等要素条件，可分为软性环境与硬性环境。创新环境对于创新系统运转具有重要作用，既影响创新主体之间的关系，也影响创新过程的绩效。本文提出创新环境评价的基本分析框架，以系统性、合理性、全面性为基本原则，从人才环境、资金环境、市场环境、创业环境、竞争与合作环境5个维度构建国家创新环境评价指标体系，为全面、科学地评价创新环境提供方法参考。     

Blockchain and sustainable supply chain management in developing countries

Theoretical, empirical and anecdotal evidence suggests that there are more violations of sustainability principles in supply chains in developing countries than in developed countries. Recent research has demonstrated that blockchain can play an important role in promoting supply chain sustainability. In this paper we argue that blockchain’s characteristics are especially important for enforcing sustainability standards in developing countries. We analyze multiple case studies of blockchain projects implemented in supply chains in developing countries to assess product quality, environmental accounting and social impact measurement. We have developed seven propositions, which describe how blockchain can help address a number of challenges various stakeholders face in promoting sustainable supply chains in developing countries. The challenges that the propositions deal with include those associated with an unfavorable institutional environment, high costs, technological limitations, unequal power distribution among supply chain partners and porosity and opacity of value delivery networks.     

The influence of regulations on innovation: A quantitative assessment for OECD countries

Regulatory framework conditions have been identified as important factors influencing the innovation activities of companies, industries and whole economies. However, in the empirical literature, the impacts of regulation have been assessed as rather ambivalent for innovation. Different types of regulations generate various impacts and even a single type of regulation can influence innovation in various ways depending on how the regulation is implemented. The endogenous growth approach developed by Carlin and Soskice (2006) and empirically applied by Crafts (2006), which determines endogenously the rate of technological progress and therefore innovation, allows a conceptual analysis of the influence of different types of regulation on innovation. In general, the negative effect of compliance costs should be compared with the more dynamic effect of regulations generating additional incentives for innovative activities. Based on this approach, we derive hypotheses on the impact of different specific regulations on innovation.We differentiate between economic, social and institutional regulations following the OECD taxonomy on regulations. Existing economic analyses are surveyed, which are characterised by rather heterogeneous approaches, data bases and results. The paper aims to apply a comprehensive and comparative approach to investigate quantitatively the innovation impacts in 21 OECD countries using panel data for the period between 1998 and 2004. In summary, the empirical results confirm the hypotheses derived from the conceptual theoretical framework determining technical progress and innovation endogenously and allowing a distinction between short-term and long-term effects. Consequently, the theoretical approach is an appropriate starting point for the empirical analysis of the influence of different regulations on innovation.     

二元的中国创新体系

基于地区科技与创新的统计资料,对中国创新的驱动因素作了一个量化的分析.我们发现,在推动中国技术创新中,外国直接投资、政府的科技投资和教育支出是最重要的驱动力,也意味着,跨国公司、大学、科研院所在技术创新中起着重要的作用.而在产品创新中,外国直接投资,企业自身的研究开发活动和大学、科研院所与产业的联系是最重要的驱动力,说明企业是产品创新的主体,当然,这里的企业既包括了本国的企业,又包括了三资企业.但在不同地区,这一结论并不相同.在东部,跨国公司的作用非常突出,而在中西部,企业自主研究开发投入是创新的重要决定因素.因此,中国呈现出了一种二元的创新体系.