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Innovation and learning: two faces of R&D
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The authors assume that firms invest in R&D not only to generate innovations, but also to learn from competitors and extraindustry knowledge sources (e.g., university and government labs). This argument suggests that the ease of learning within an industry will both affect R&D spending, and condition the influence of appropriability and technological opportunity conditions on R&D. For example, they show that, contrary to the traditional result, intraindustry spillovers may encourage equilibrium industry R&D investment. Regression results confirm that the impact of appropriability and technological opportunity conditions on R&D is influenced by the ease and character of learning. Copyright 1989 by Royal Economic Society.
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... R&D expenditure, availability of skilled labor the stock of knowledge, and organizational competence, determine the innovative capacity of organizations (Romer, 1990). In the same line of argument, other researchers found the internal absorptive capacity of organizations as the main determinant of the innovative capacity of the firms (Cohen & Levinthal, 1989). Firms often copy or imitate the product of other firms and produce the same product at low cost which reduces the development of new products or innovation in the sector. ...
... Firms often copy or imitate the product of other firms and produce the same product at low cost which reduces the development of new products or innovation in the sector. Studies show that firms that protect their product enjoy the benefit of innovation, and this boosts the firms' profitability (Cohen & Levinthal, 1989). Other studies find that overemphasis on protection reduces innovation as such firms spend more on secrecy rather than on exploring modern technologies and sharing knowledge (Lewin et al., 2011). ...
Studies show that gender diversity promotes creativity and innovative ideas. This paper highlights the link through which gender diversity affects the generation of innovative ideas. The paper modified the Jones (1995) R & D model by assuming that a team consisting of females would be able to generate more ideas and explicitly included gender diversity in the innovation function along with other factors. The paper used a robust check to identify the relevant estimation econometrics method and the results indicated that the Dynamic System Generalized Method of Moment (GMM) is suitable for estimating the impact of gender diversity on economic growth. To lend support to theoretical linkages, the paper employed the dynamic system Panel GMM to examine how gender diversity at the workforce impacts growth via its impact on the generation of innovative ideas using a sample of fifty-four countries for the period 1984-2017. The correlation analysis shows that gender diversity positively affects the economic growth performance of the panel countries. After considering the effect of gender diversity, the coefficient of patents granted improved, which confirms the hypothesis that gender diversity contributes to the growth process through its impact on the generation of innovative ideas. The results show that internet use, mobile usage, and trade liberalization work as channels of diffusion of innovation. The paper also finds gender diversity to be a proxy of informal institutions. Our findings suggest that gender diversity has a significantly positive impact on economic growth through the generation of novel ideas by a gender-diverse team at the workplace. The results have policy implications for policymakers and business managers.
... The spillover effect was varied and dependent on the domestic enterprise. This verified the importance of absorbability in FDI spillover (Cohen and Levinthal, 1989;Zahra and George, 2002;Farole et al., 2014). Age, type of private ownership, average pay, and import share all affected spillover. ...
Purpose-This study addresses the empirical results of the spillover effect with export as the primary economic activity that enhances local businesses' total factor productivity (TFP). A learning mechanism is expected to be generated and used as the basis for the policy implication. Design/methodology/approach-This study adopted the Cobb-Douglas function and multiple estimation approaches, including the generalized method of moments, the Olley-Pakes and the Levinsohn-Petrin estimation techniques. The findings were estimated based on the panel data of a Vietnamese local businesses survey conducted by the General Statistics Office of Vietnam (GSO) from 2010 to 2019. Findings-The results showed that the highest TFP belongs to the businesses in the Southeast region, the Mekong Delta region, the mining industry and the foreign-invested enterprises. The lowest impacted TFP are businesses in the Northwest region and agricultural, forestry and fishery sectors. In addition, the estimated results also show that the positive spillover effect on TFP is shown through forward and backward linkage. The negative spillover effect is expressed through the backward and horizontal channels. Research limitations/implications-This study offers original empirical evidence on the learning mechanisms via which exports contribute to productivity improvement in a developing Asian economy, so making a valuable contribution to the existing academic literature in this domain. The findings of this research make a valuable contribution to the advancement of understanding on the many ways via which spillover effects manifest such as horizontal, forward, backward and supplied-backward linkage. Practical implications-The study's findings indicate that it is advisable for governments to give priority to the development and improvement of forward and supply chain linkages between exporters and local suppliers. This approach is recommended in order to optimize the advantages derived from export spillovers. At the organizational level, it is imperative for enterprises to strengthen their technological and managerial skills in order to efficiently incorporate knowledge spillovers that originate from overseas partners and trade counterparts. Originality/value-This study sheds new evidence on the export spillover effect on productivity in emerging economies, with Vietnam as the case study. The paper contributes to the research's originality by adopting novel methodological aspects to estimate local businesses' impact on total factor productivity. Peer review-The peer review history for this article is available at: https://publons.com/
... Scholars of innovation have long understood that external knowledge is vital to the innovative performance of firms (Ahuja, 2000;Powell et al., 1996). However, firms cannot costlessly exploit external knowledge but must develop their own capability to do so (Cohen & Levinthal, 1989). This capability, which is termed absorptive capacity (Hereafter ACAP), refers to a firm's ability to evaluate the value of the knowledge, understand it, and utilise it to generate innovative outcomes (Cohen & Levinthal, 1990). 1 Since this concept was established, ACAP has been mainly studied from an organisational perspective. ...
Antecedentes: Desde há umas décadas a esta parte, a diferença existente entre a informação económico-financeira que as empresas apresentam e as necessidades informativas dos mercados têm sido motivo de preocupação e merecido crescente interesse por parte dos académicos. A evidência empírica chamou a atenção para a necessidade de os órgãos reguladores a nivel internacional se envolverem neste problema e encontrarem uma solução no sentido de garantir informação financeira relevante e clara. Hojee m dia o Financial Accounting Standard Board (FASB) e o International Accounting Standard Board (IASB) estão a trabalhar no sentido da harmonizar 31 as normas contabilísticas à escala internacional. Objetivo: Com este trabalho de investigação iremos constatar empiricamente o deteriorar dos sistemas de informação contabilísticos, através da estimação do valor de mercado das empresas cotadas nos mercados de capitais. Metodologia e amostra: Recorremos, como função base, o modelo de Ohlson (1995) e a partir do mesmo, desenvolvemos as funções de valoração derivadas dos seus correspondentes Dinâmicas de Informação Linear (DIL). A amostra foi constituída por empresas que estão cotadas nos Estados Unidos e no Reino Unido, pertencem ao sector automóvel. O horizonte temporal analizado comprende 10 anos. Resultado e conclusões: Testada a utilidade perdida dos sistemas contabilísticos, como consequência dos sistemas contabilísticos não evidenciarem alguns acontecimentos, como por exemplo os benefícios em I+D, consideramos necessário que os órgãos reguladores mais importantes a nível internacional, o FASB e o IASB, melhorem as suas normas em matéria de intangíveis.
Nobel laureates offer a range of expertise to researchers interested in generating scientific productivity by capitalizing on their ability to collaborate with other outstanding researchers. However, current knowledge on whether and how a scholar’s research areas can be leveraged for scientific productivity has not been examined empirically. There has been scant conceptualization of the underlying processes responsible for utilizing research areas, and the results have been equivocal. We propose and test the intermediate mechanisms of number of collaborations and collaboration diversity as two distinctive capabilities that may explain how a research area drives a scientist’s productivity. Our conceptual model posits that the link between research areas and scientific productivity is neither simple nor direct. An empirical test on Nobel laureates demonstrates the complexity of innovation generation. Two pathways from research areas to scientific productivity are revealed: number of collaborations and collaboration diversity both mediate the link, but the role of research areas is negatively moderated by the scholar’s dependence on external knowledge to their academic collaboration. Our theory is thereby confirmed. Finally, expected findings and contributions are also discussed.
In this paper, we examine the persistence of benefits from foreign ownership, which informs the proper FDI policies. We exploit the divestment of foreign affiliates in South Korea from 2007 to 2019 as a quasi‐experiment to estimate such persistence of benefits. Our empirical analysis at firm‐level based on the propensity score reweighted difference‐in‐differences model leads to several conclusions. First, on average, the productivity benefit from foreign ownership does not persist after the divestment. Second, the productivity benefit of foreign ownership is persistent in firms with a higher absorptive capacity, measured by R&D intensity, intangible assets, and skilled workers. Such persistence is strengthened if the former foreign affiliate has a longer duration of ownership before the divestment. It suggests that absorptive capacity and time input are helpful for foreign affiliates to persistently absorb knowledge from their owners. Finally, we find that the productivity benefits of foreign ownership are less persistent at former foreign affiliates relying more on external trade.
Eco-innovation is a complex activity that requires diverse knowledge and an extensive R&D and technology portfolio. This paper investigates the strategies employed by firms and the extent to which green and non-green R&D can influence eco-innovation. We address two research questions: Is investment in green R&D valuable and sufficient for successful eco-innovation? What types of investment are needed for eco-innovation? Our findings provide a better understanding of the mix of knowledge fields required for eco-innovation. To investigate internal firm R&D strategies we use unique data that allow us to identify the influence of the stocks of green and non-green R&D on eco-innovation and the importance of complementarity among specific R&D strategies and knowledge for eco-innovation. Our findings will be relevant for policymakers and firms, to promote investment in R&D to enable eco-innovation and ensure a quick transition to a green society.
Existing theoretical and empirical researchers associated innovation with technological transformations and introduced radical/disruptive products and processes. However, considering the approaches and theories would be limited to manufacturing industries, innovation in service industries with non-technological aspects needs to be noticed. This study emphasises the need for a synthesis approach that could play a major role in building/enhancing service business models/frameworks. These frameworks need a stronger focus on using organizational, strategic, and marketing innovation typologies in formulating service business models resulting in low customer engagement and customer experience management. This chapter discusses various new business models that have evolved their features and benefits. Finally, this study concludes by emphasising the need for incorporating non-technical components when innovating in services and services-based firms.
Open innovation, characterized by the collaborative sharing and management of knowledge and technologies, is posited to be a strategic tool for corporate resilience during crises. To empirically assess the validity of this proposition, this paper employs a text analysis technique to construct the open innovation variable and analyzes its impact on the performance of publicly listed Chinese firms during the COVID-19 pandemic. In the event study, we find that firms actively engaging in open innovation before the pandemic experienced fewer losses in the stock market when the pandemic broke out. Utilizing a difference-in-differences framework, we provide evidence that the positive impact of open innovation on firm performance is more pronounced during the pandemic compared to normal periods. We also suggest that firms with higher absorptive capacity and those practicing moderate levels of open innovation can benefit more from open innovation during the pandemic. The results of our study underscore the strategic importance of open innovation, particularly during bad times, and contribute to the broader understanding of innovation management under adverse conditions.
It is not useful, either in theory or in practice, to equate technology with science or with information. Many empirical studies show that most technology is specific, complex, partly tacit, and cumulative in its development. As a consequence, key questions for analysis and policy are, first, the nature and the extent of the interactions between science and technology; and, second, the accumulation in firms of technological knowledge, necessary not only for new and original inventions and applications, but also for effective assimilation of science and technology developed elsewhere.
Manufacturers must recognize and understand the role of customer initiatives.
Research and firm size within industries, 640. — Research elasticities and average firm size, 644. — Market structure and
the level of research, 645. — The role of technical entry barriers, 652. — Conclusions, 656.
The characteristics of information contributing to the resolution of technical problems arising during thirty on-going innovations in British industry have been studied with the aim of determining the patterns of information flow consonant with successful innovation. A number of findings have emerged: 1) Information obtained from literature contributed as much as that from personal contact. The innovation process is most efficient when these two sources are used in a mutually supportive fashion. 2) Different sources are selectively used to obtain different types of information. The choice of appropriate sources and in an appropriate order has a considerable impact on the innovation process. The choice pattern improves with the higher levels of education of the problem-solver and of the research intensity of the firm: 3) No direct correlation was found between the frequency of use of a source and its relative contribution to the innovation. Some vital pieces of information are obtained from sources infrequently used. Implications for researchers and management are drawn.