Varieties of innovation and business survival: Does pursuit of incremental or far-ranging innovation make manufacturing establishments more resilient?

The transition from an industrial economy to an innovation economy poses two critical questions for the manufacturing sector in advanced countries. First, given the diffusion of modern manufacturing practices around the world, what level of innovation (incremental, more far-ranging, or radical) is most likely to support a resilient domestic manufacturing sector? Second, are assumed differences in the innovative capacity across space likely to hasten the decline of rural manufacturing? To answer these questions this research combines comprehensive measures of self-reported innovation able to reliably differentiate incremental and more far-ranging innovation with establishment-level data able to examine the geographical distribution of these different innovation strategies. The data used for the analysis includes a two-period panel of manufacturing establishments surveyed in 1996 and 2013 with annual employment data indicating survival in the intervening years. Our findings suggest that long-surviving manufacturing plants overwhelmingly gravitate away from non-innovation strategies toward incremental or more far-ranging innovation orientations. A survival advantage of far-ranging innovation over incremental innovation is observed for standalone firms. We do not identify a difference in the innovation orientations of rural and urban manufacturing establishments.     

Technology strategies and standard competition — Comparative innovation cases of Apple and Microsoft

This paper analyses the technology strategy and standard competition of the most outstanding innovation cases of Apple and Microsoft. The objective of the study is to understand innovators' pursuit of strategies in securing the benefits from an innovation, based on the innovation life cycle model. The study develops a new methodological framework of platform for analysing the case studies. It is argued that the ability to establish an industry standard and lock-in customers enables an innovator to create a competitive advantage. The study offers important lessons in strategic innovation management.     

Decision-makers’ underestimation of user innovation

In the past few decades, much research has documented the importance of users as sources of innovations. Over the last 10 years, Research Policy alone has published 56 research articles investigating this phenomenon. We ask to what degree the findings of users as innovators have been absorbed by decision-makers responsible for new product development (managers) and by those who shape the contextual conditions for innovation (policy makers and public administration). A realistic perception of the sources of innovation is important as it constitutes the basis for a rational allocation of resources and thus indirectly impacts the innovation performance of companies and societies at large.In a large-scale survey of n?=?1500 decision-makers, we found support for a substantial underestimation of users as a source of innovation: While the true proportion of user innovation among the most valuable 1678 innovations in nine industries is 54.4% (as established in existing research articles), decision-makers estimate it to be 21.7%. A content analysis of transfer media (450 academic textbooks, popular innovation books, and business articles) underscores this theory-practice gap: Of 3469 text paragraphs dealing with the sources of innovation, only 2.7% mention users as innovators. We develop six propositions on the reasons for and consequences of this underestimation that may serve as a starting point for future research and practical consequences.     

GAO Fu： Promoting innovation and industrialization

Achilly winter day in December 2008, Fudan University in Shanghai was filled with the .warmth of more than 200 representativesfrom universities, research institutes and enterprises. It was a special occasion -- some of the nation＇s best life researchers were conferred a newly established award in life sciences.     

Towards world-class science and innovation system——on culture of excellence and integrity,mentoring and collaboration

<正>he year 2014 may prove to be a major turning point in China’s development of world-class science and innovation system.At the mid-term juncture of China’s Medium-and Long-Term Program(MLP)for Science and Technology(ST)development,the Ministry of Science and Technology conducted a comprehensive review and assessment     

Same but different? Research and technology organizations,universities and the innovation activities of firms

Research and Technology Organizations (RTOs) and universities are important elements of countries’ innovation systems. As they are both halfway between science and industry, they are often considered to be the same thing. However, recent studies have stressed the differences between the two. In this paper, we analyze the innovative characteristics (impacts and types of innovation and internal R&D investments) of firms that collaborate with RTOs versus universities. Our study is based on statistical analysis of Community Innovation Survey micro-data (CIS 2012). Our results suggest that firms that see RTOs as more important sources of knowledge than universities have a higher probability of developing service innovation, invest less in internal R&D but are less likely to introduce new, groundbreaking innovations into the market. These results have significant policy and management implications, especially regarding the different but complementary contributions offered respectively by RTOs and universities.     

Do innovation measures actually measure innovation? Obliteration,symbolic adoption,and other finicky challenges in tracking innovation diffusion

Although innovation diffusion is a central topic in policy and strategy, its measurement remains difficult – particularly in cases where the innovation is a complex and possibly ambiguous practice. In this paper, we develop four theoretical mechanisms that may bias diffusion markers by leading to the understatement and/or overstatement of diffusion at different points in time. Employing the case of “green chemistry,” we then compare three different diffusion markers – keywords, database index terms, and domain expert assessments – and we demonstrate how they lead to differing conclusions about the magnitude and timing of diffusion, organizational demography, publication outlets, and collaboration. We also provide suggestive evidence of extensive “greenwashing” by particular organization types and in particular countries. Building on these findings, we point to potential challenges with existing diffusion studies, and we make a case for the incorporation of practitioners in construct measurement and for the integration of comparative metrics in diffusion studies.     

On the green and innovative side of trade competitiveness? The impact of environmental policies and innovation on EU exports

This paper aims at exploring how the export competitiveness of the European Union has been affected by environmental regulation and innovation. Starting from the Porter idea that environmental policies may foster international competitiveness by inducing technological innovation. We test both the strong and narrowly strong versions of the Porter hypothesis, in order to understand if such a virtuous cycle is confined into the environmental goods sector (respecting the narrow criterion) or it spreads out through the whole economic system. For this purpose we adopt a theoretically based gravity model applied to the export dynamics of five aggregated manufacturing sectors classified by their technological or environmental content.When testing the strong version, the overall effect of environmental policies does not seem to be harmful for export competitiveness of the manufacturing sector, whereas specific energy tax policies and innovation efforts positively influence export flows dynamics, revealing a Porter-like mechanism. When testing the narrowly strong version, environmental policies, but more incisively environmental innovation efforts, foster green exports. These results show that public policies and private innovation patterns both trigger higher efficiency in the production process through various complementarity mechanisms, thus turning the perception of environmental protection actions as a production cost into a net benefit.     

Organizational and human resource management and innovation: Which management practices are linked to product and/or process innovation?

We examine the determinants of firms’ innovation success, using the firm-level data from the Japanese National Innovation Survey. We focus on the relationship between organizational and human resource management practices for research and development (R&D) and product/process innovation. We find that interdivisional cooperation/teams and the creation/relocation/integration of R&D centers are positively associated with both product and process innovation. Having board members with an R&D background is positively associated with product innovation, implying that top-down R&D decision-making may be important for firms to introduce new products. Among the factors examined, personnel assessment reflecting R&D outcomes appears to have an especially strong relationship with product innovation. Moreover, the positive relationship between the creation/relocation/integration of R&D centers and innovation success suggests that drastic organizational changes can work as a clear signal of firms’ determination to pursue an innovation-oriented strategy and help to accelerate innovation success.     

How and when information proactiveness leads to operational firm performance in the banking sector of Pakistan? The roles of open innovation,creative cognitive style,and climate for innovation

Utilizing the assumptions of the Resource-based theory, this study examined how and why new, rare, and inimitable resources in the form of information proactiveness motivation influence operational firm performance. We hypothesized open innovation as a mediator between information proactiveness motivation and operational firm performance. We also hypothesized the interactive effects of an individual’s creative cognitive style and information proactiveness motivation on open innovation whereas climate for innovation and open innovation jointly influence operational firm performance. A temporally segregated data (n = 260) was collected in three-time intervals from employees working in the banking sector of Islamabad, Pakistan. Utilizing the PROCESS approach, the findings of the study indicate that open innovation mediates the relationship between information proactiveness motivation, and operational firm performance. Moreover, the creative cognitive style was found to moderate the relationship between information proactiveness motivation and open innovation whereas climate for innovation emerged as a moderator between open innovation and operational firm performance. This research focused on unique information and contextual resources which directly and indirectly play significant roles in promoting the firm's open innovation and subsequent operational firm performance.     

The politics of research and innovation: Understanding instrument choices in complex governance environments – the case of France and Italy

What governments desire to achieve, and how they want to accomplish their goals, represent the core of any policy design process. However, it is still unclear how partisan politics, in its combined effect with path-dependency forces, influence policy makers’ choices over alternative instrument mixes. Through a comparative analysis of Research and Innovation (R&I) instrument choices in countries characterized by different paradigmatic models of policy (Italy and France), the paper investigates how the politics of different cabinets influence the formulation of national R&I strategies and the extent to which these decisions are constrained by the legacy of previous choices. By capitalizing on a new proposed treatment of policy instruments, the paper contributes to the definition of the types of tools found in policy mixes, investigating how national R&I instrument mix variations develop. The results of the analysis indicate how the selection of R&I policy instruments does not closely follow traditional left versus right-wing political cleavages, and their evolution is generally influenced by a combination of different context-dependent dynamics. However, when partisan acceptance of consolidated R&I instrument mixes across cabinets is present, this triggers a consolidating effect on path-dependency forces.     

Customer’s role in knowledge management and in the innovation process: effects on innovation capacity and marketing results

Scholars have acknowledged customer knowledge management (CKM) as a key strategic resource for improving innovation and supporting long-term customer relationship management. This study provides a deeper understanding of the internal antecedents of business innovation capacity overcoming previous approaches. A model that had not previously been tested was used to analyse the role of customer collaboration and CKM – measured as a second-order construct – in innovation processes and marketing results. To test the model, structural equation modelling (partial least squares) was applied to a random sample of 210 Spanish companies. Results confirm that CKM and customer collaboration are antecedents of innovation capacity and marketing results. Furthermore, the effect of CKM is greater than the effect of customer collaboration. This paper provides a basis for managers to encourage innovation in their companies and explains how managers can improve marketing results.     

The impact of network ties strength and enterprises＇ learning capability on the technological innovation

网络关系强度作为表征企业网络的重要变量之一,理论界关于其对企业技术创新的影响尚存在较大的争议。本文以企业规模和研发投入作为控制变量,构建了网络关系强度、企业学习能力和技术创新三者之间的关系理论模型,并以申报广东省高新技术企业和民营科技型企业的企业为调查对象进行了实证检验。研究发现：（1）企业网络关系强度和学习能力都对技术创新存在着显著的正向影响。（2）企业学习能力在网络关系强度和技术创新之间起到不完全中介作用。（3）在小规模企业中,这三者之间并不存在相互影响的关系。本研究进一步深化了前人的研究结论,对组织网络及技术创新的相关研究都有学术贡献。     

Research subsidies,industry–university cooperation and innovation

We evaluate the impact of the EC's Seventh Framework Programme, a large-scale research subsidy programme, on the innovation activities of subsidized firms, with a particular regard to industry–university partnerships. Using matching and difference-in-difference estimation, we find a positive effect on a range of innovation indicators. The number of project participants in general and university participants in particular positively affect performance, suggesting knowledge spillovers between project members. Research centres, on the other hand, do not exert positive externalities. We also find that the benefits of collaborating with universities are amplified by their academic quality.     

Challenging the “deficit model” of innovation: Framing policy issues under the innovation imperative

As innovation is increasingly becoming an imperative for policymakers around the globe, there is a growing tendency to frame policy problems as problems of innovation. This logic suggests that we are unable to address grand societal challenges and ensure economic competitiveness because our societies, institutions, scientific activities or individual predispositions are not sufficiently geared towards innovation. In this paper, we analyze this “deficit model” of innovation in which a lack of innovation is routinely invoked as the main obstacle to social progress. Drawing parallels to research on the deficit model of public understanding of science (PUS), we develop a theoretical framework that captures the dynamics and normative implications of deficit construction, highlighting five salient dimensions: problem diagnoses, proposed remedies, the role of expertise, implied social orders, and measures of success. We apply this framework to three empirical case studies of recent innovation strategies in Luxembourg, Singapore, and Denmark. Attention to this deficit framing around innovation is important, we argue, because it is an essential part of how innovation transforms societies in the 21st century: not only through new technological possibilities or economic growth, but also by shaping public discourse, narrowing policy options, and legitimizing major institutional interventions. The implied pro-innovation bias tends to marginalize other rationales, values, and social functions that do not explicitly support innovation. It further delegates decisions about sweeping social reconfigurations to innovation experts, which raises questions of accountability and democratic governance. Experiences from the history of PUS suggest that, without a dedicated effort to transform innovation policy into a more democratic, inclusive, and explicitly political field, the present deficit logic and its technocratic overtones risks significant social and political conflict.     

Innovation with ‘Chinese’ characteristics? Reflecting on the implications of an ethnic-based paradigm of management and innovation

Cultural studies seem to dominate the field of management and innovation in China. Researchers have defined and considered Confucianism and a number of common, transnational Asian/Chinese values and practices allegedly unifying China and parts of East Asia. These values and practices have been erected as the cultural pillars of ‘Chinese management’, ‘Chinese entrepreneurship’ and, more recently, ‘indigenous innovation’ in the ethnic Chinese world and now mainland China. We believe these values and practices, frequently claimed as unique and fueling innovation in Chinese firms, to be potentially manipulated for strategic purposes, by political authorities as well as business organizations. This paper examines the aforementioned premises and questions the notions of Chinese ethnicity, values, management and innovation from political and strategic perspectives. We first present the emergence of Chinese values and Chinese management. We then consider this emergence in relation to political agendas and the renewal of Asianism or New Confucianism. The second part of the paper analyzes how such values and ethnicity can be utilized by entrepreneurs for both defensive and offensive business purposes. We then illustrate our debate with some reflections on the Shanzhai form of indigenous innovation before concluding with implications for researchers, managers and entrepreneurs and discussing the dangers of exoticism and avenues for future empirical research.     

Political uncertainty and innovation: The relative effects of national leaders’ education levels and regime systems on firm-level patent applications

We explore the effect of political uncertainty on innovation. In particular, we examine the differential effects of two sources of uncertainty – leaders’ education levels and political regimes (i.e., presidential vs. parliamentary) – on patent applications. We posit that firms react to political uncertainty caused by the unexpected departure of a national leader by investing in patents as growth options. The empirical design analyzes a panel with information from over 62 million patent applications at the aggregated applicant level. Results show that leaders’ unexpected departures cause, on average, increases of approximately 9% in the aggregate growth of patent applications. We also find that the leader’s level of education and the country’s political regime system have significant effects on the relationship between political uncertainty and innovation. The difference between leaders with high and low levels of education accounts for 21% of the change in the growth of patent applications. Further, the effect of political uncertainty on innovation is amplified in presidential systems, which grant leaders more power and make electoral transitions less predictable. The differences between presidential and parliamentary systems account for approximately 16% of the change in the growth of patent applications. As a robustness check, we utilized a subsample of more than 170,000 firms with local and foreign patent applications, as well as a panel of over 5700 government non-profits, universities, and hospitals with local patent applications. Consistent with our theory, the former react to political uncertainty by investing in patents, while the latter remain unaffected. We contribute by showing the theoretical mechanisms linking leader and regime characteristics with patent applications.     

Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity

This paper extends the resource-based theory of the firm to examine the contingencies that either intensify or reduce the relationship between firm-specific innovation and value appropriation. Based on a large-scale analysis of a sample of US manufacturing firms, we found that greater innovation rents appropriation is associated with an increase in firm specificity of its innovative knowledge. But the positive relationship between firm-specific innovations and firm value appropriation tends to decrease when the product or technology market is highly dynamic. Further, under high environmental dynamism, firms should increase the diversity in their knowledge composition in order to mitigate the risk of value erosion associated with firm-specific innovations.     

Ethical control of innovation in a globalized and liberal world: Is good science still science?

The independence of science was long seen as of prime importance. This position has become less common today. The perception of scientific research as a public service has led to the opinion that it must be accountable to citizens and produce knowledge and innovation that meet their expectations. Numerous authors have voiced the need for anticipatory ethical control of innovation focusing on the scientific research process. This control is considered as the must-have guarantee for “good science.” The current article attempts to trace the ideological origins of the ethical control of innovation, examines its effectiveness against the challenge of globalization and technology-derived major threats and its compatibility with scientific methodology. It also suggests ways to both regulate the innovation process and preserve the independence of science. On the whole, we conclude that truly effective ethical regulation of innovation, i.e. one that protects the greatest number from its adverse effects, is achieved first and foremost by questioning our liberal economic model and the place given to science in our societies.     

Users as innovators? Exploring the limitations of user-driven innovation

Considering users as innovators has gained considerable support over the past 30 years. Eric von Hippel’s work in this area forms a significant part of the theoretical underpinning and evidence behind this concept. Many further studies have been undertaken to support it. It has contributed to our understanding of innovation management in general and new product development in particular. Even so, Lüthje and Herstatt emphasise that empirical findings are scarce and that the most radical innovations of the last 35 years were not developed by users. Thus, in this paper we critically review the lead-user theory and focus on three specific areas of weakness of the lead-user concept (conceptual, methodological, empirical), and argue that improvement in these areas would considerably strengthen its standing. We conclude that although lead users can contribute to the innovation process, this contribution should not be overstated, and that insufficient attention has been paid to the limitations of this theory.