scholarly journals Collaboration with External Organizations and Technological Innovations: Evidence from Spanish Manufacturing Firms

2019 ◽  
Vol 11 (9) ◽  
pp. 2479 ◽  
Author(s):  
Dragana Radicic ◽  
Jonathan Pinto
Keyword(s):  
Technological Innovation ◽  
State Dependence ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
Technological Innovations ◽  
Process Innovations ◽  
Sectoral Analysis ◽  
Product And Process ◽  
High Degree ◽  
Technological Intensity

Based on the two knowledge dimensions of availability and accessibility, this study investigates the influence of cooperation with external organizations on technological, product, and process innovations. Using longitudinal data from Spanish manufacturing firms, we estimate dynamic random-effects probit models and thus take into account that technological innovations exhibit persistent behavior. We find that cooperation with suppliers and universities is positively associated with both product and process innovations. However, sectoral analysis according to technological intensity reveals that cooperation with suppliers increases the propensity to technological innovation in industries with a higher degree of technological intensity, while cooperation with universities increases the likelihood of innovation in industries with a lower degree of technological intensity. Moreover, empirical results indicate a high degree of true or genuine state dependence in both types of innovations. Based on these findings, we discuss the theoretical, managerial, and policy implications of the study.

scholarly journals Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?

2021 ◽  
Author(s):  
Tea Petrin ◽  
Dragana Radicic
Keyword(s):  
Public Support ◽  
Policy Instruments ◽  
State Dependence ◽  
Policy Implications ◽  
Tax Credits ◽  
Large Firms ◽  
Policy Mix ◽  
Process Innovations ◽  
Long Run ◽  
Product And Process

AbstractNowadays, a rising number of evaluations investigates a multifaceted concept of the policy mix. Our study specifically focuses on the mix of two most frequently used supply-side instruments–R&D subsidies and R&D tax credits. Drawing on the longitudinal sample of Spanish manufacturing firms, we investigate whether there is a complementary interaction between these policy instruments with respect to product and process innovations. Moreover, by employing a dynamic random-effects probit estimator, we account for the persistence of innovation and endogeneity of public support. The results, that are separately estimated for SMEs and large firms, uniformly show evidence of no interplay between two policy instruments either in SMEs or large firms. However, among factors that influence the propensity to product and process innovations, by far, the largest effect is generated by true state dependence. These findings provide some policy implications for fostering product and process innovations in the long run.

The impact of technological innovation upon servitization

2019 ◽  
Vol 30 (7) ◽  
pp. 1097-1114 ◽  
Author(s):  
Bang-Ning Hwang ◽  
Mu-Yen Hsu
Keyword(s):  
Service Delivery ◽  
Technological Innovation ◽  
Large Scale ◽  
Manufacturing Firms ◽  
Multivariate Logistic Regression Model ◽  
Technological Innovations ◽  
Manufacturing Firm ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through service provision is becoming an important strategy for most industries. A growing demand for packaged product and service delivery is blurring the traditional boundaries between manufacturing and service firms. This trend is called “servitization.” Prior research had different perspectives on the relationship between technological innovations and servitization. Some argued that as servitization exerts the innovative convergence of products and services, the possession of appropriate readiness and absorption capacity through technological innovations for a manufacturing firm is critical to the success of servitization. In contrast, some argued that the knowledge gained from developing technological innovations cannot be applied to the creation of services due to the fundamental difference between technology and service. These contradicting arguments motivated the authors to study the relationship between technological innovations and servitization a step further. The paper aims to discuss these issues. Design/methodology/approach To address the research gap, the authors conducted an empirical study based on the large-scale samples from the second Taiwan Community Innovation Survey (Taiwan CIS). A multivariate logistic regression model was applied in the research. Findings The authors found that different types of technological innovations, namely product innovation and process innovation, have different impacts on servitization. The innovativeness level of the technological innovation moderates the relationship between technological innovation and servitization. Based on the above findings, this research specifically explains the causes of the contradictory results of the prior research. Originality/value The values of this research are twofold. Its academic contribution rests on bridging the literature of innovation and servitization, and on providing a model to clarify the relationships among technological innovation type, level of innovativeness and servitization. Its practical contribution lies in its establishment of a guideline that illuminates manufacturing firms reinforcing service delivery through their existing technological innovation trajectory.

scholarly journals Do Workers Share Innovation Returns? A Study of the Spanish Manufacturing Sector

2004 ◽  
Vol 2 (2) ◽  
pp. 147-160 ◽  
Author(s):  
Ester Martínez‐Ros ◽  
Vicente Salas‐Fumás
Keyword(s):  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Market Conditions ◽  
Process Innovations ◽  
Demand Growth ◽  
Elasticity Of Demand ◽  
Price Elasticity Of Demand ◽  
Product Standardization ◽  
Theoretical Predictions ◽  
Product And Process

This paper explores whether workers share innovation returns and how the size of innovation returns is affected by market conditions. Using a panel data of Spanish manufacturing firms during the period from 1990 to 1993, we answer affirmatively to both questions. Product and process innovations both generate returns, but such returns are higher for process innovations. The size of innovation returns seems to be affected positively by demand growth, by product standardization, and by low product market concentration. The three empirical results are in agreement with the theoretical predictions, such as Schmoockler’s (1966) theory of demand‐pool innovation, the price‐elasticity of demand effects postulated by Kamien & Schwartz (1970), and the replacement effect suggested by Arrow (1962). At the time of generating returns, process innovations are more affected by market conditions than are other innovations.

scholarly journals Employment Effects of Innovation at the Firm Level

2007 ◽  
Vol 227 (3) ◽  
Author(s):  
Stefan Lachenmaier ◽  
Horst Rottmann
Keyword(s):  
Employment Growth ◽  
Manufacturing Firms ◽  
Firm Level ◽  
Employment Effects ◽  
Process Innovations ◽  
Positive Effects ◽  
Product Innovations ◽  
Patent Applications ◽  
Product And Process ◽  
Positive Effect

SummaryThis paper analyzes empirically the effects of innovation on employment at the firm level using a uniquely long panel dataset of German manufacturing firms. The overall effect of innovations on employment often remains unclear in theoretical contributions due to reverse effects. We distinguish between product and process innovations and additionally introduce different innovation categories. We find clearly positive effects for product and process innovations on employment growth with the effects for process innovations being slightly higher. For product innovations that involved patent applications we can identify an additional positive effect on employment.

scholarly journals COOPERATION FOR INNOVATION AND ITS IMPACT ON TECHNOLOGICAL AND NON-TECHNOLOGICAL INNOVATIONS: EMPIRICAL EVIDENCE FOR EUROPEAN SMES IN TRADITIONAL MANUFACTURING INDUSTRIES

2019 ◽  
Vol 23 (05) ◽  
pp. 1950046 ◽  
Author(s):  
DRAGANA RADICIC ◽  
DAVID DOUGLAS ◽  
GEOFF PUGH ◽  
IAN JACKSON
Keyword(s):  
Positive Impact ◽  
Innovation Performance ◽  
Manufacturing Industries ◽  
Technological Innovations ◽  
Commercial Success ◽  
Process Innovations ◽  
Portfolio Approach ◽  
Product And Process ◽  
Traditional Manufacturing ◽  
Innovation Support

Drawing on a sample of small and medium-sized enterprises (SMEs) in traditional manufacturing industries from seven EU regions, this study investigates how cooperation with external organisations affects technological (product and process) innovations and non-technological (organisational and marketing) innovations as well as the commercial success of product and process innovations (i.e., innovative sales). Our empirical strategy takes into account that all four types of innovation are potentially complementary. Empirical results suggest that cooperation increases firms’ innovativeness and yields substantial commercial benefits. In particular, increasing the number of cooperation partnerships has a positive impact on all measures of innovation performance. We conclude that a portfolio approach to cooperation enhances innovation performance and that innovation support programs should be demand-led.

scholarly journals SEARCHING WIDELY OR DEEPLY? THE IMPACT OF OPEN INNOVATION ON INNOVATION AND INNOVATION PERFORMANCE AMONG INDONESIAN MANUFACTURING FIRMS

2018 ◽  
Vol 33 (2) ◽  
pp. 123
Author(s):  
Arif Hartono ◽  
Ratih Kusumawardhani
Keyword(s):  
Technological Innovation ◽  
Open Innovation ◽  
Innovation Process ◽  
Manufacturing Firms ◽  
Innovation Performance ◽  
External Knowledge ◽  
Process Innovations ◽  
Innovation Surveys ◽  
External Sources ◽  
The Impact

Since the term Open Innovation (OI) was coined by Henry Chesbrough in 2003, OI studies have been frequently conducted. Surprisingly, OI insights, in the context of Indonesian firms, are scarce. Furthermore, there are no existing OI studies that use data derived from innovation surveys. Hence, this study attempts to close the gap in the literature, by providing insights into Indonesian firms’ openness toward external knowledge, and its impact on innovation performance. The main aim of this study is to investigate the impact of OI practices on Indonesian manufacturing firms’ propensity to innovate (i.e. their product, process, organization, and marketing) and innovation performance. Product and process innovations are grouped under the term technological innovation, while organization and marketing innovations are classified as non-technological innovation. Data used in this study were derived from the Indonesia Innovation Survey (IIS) 2011 that covered the period from 2009-2010. Following Laursen and Salter’s (2006) study, OI indicators consist of external search breadth (i.e. the number of external sources or search channels that firms rely upon in their innovative activities) and depth (the extent to which firms draw deeply from the different external sources or search channels) in innovation process. Undertaking logistic and tobit regressions, this study shows that in general, both breadth and depth significantly and positively affect technological and non-technological innovation, as well as innovation performance. However, the over-search on external knowledge, measured by breadth squared and depth squared, negatively and significantly influence innovation and innovation performance. This indicates that too much external knowledge, sourced during the innovation process will diminish the return of innovation. This study also finds an indication of a complementary relationship existing between internal R&D and external knowledge; meaning that the implementation of one knowledge-sourcing strategy (either sourcing from internal R&D or external knowledge) increases the marginal returns from another. Lastly, important implications related to theoretical and innovation strategies are proposed. 

scholarly journals Breadth of external knowledge search in service sectors

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dragana Radicic
Keyword(s):  
Manufacturing Firms ◽  
Innovation Performance ◽  
Single Type ◽  
Service Firms ◽  
Knowledge Sources ◽  
Content Type ◽  
External Knowledge ◽  
Process Innovations ◽  
Knowledge Search ◽  
Product And Process

PurposeThere is a dearth of empirical research on the impact of external knowledge search on innovation performance in different categories of service firms. This study explores the effectiveness of the breadth of external search on product and process innovations in German firms. In particular, the author modelled a non-linear relationship between the breadth of knowledge and product and process innovations.Design/methodology/approachDrawing on the Mannheim Innovation Panel (MIP) data for the German service firms in the period 2014–2016, the author reported findings from a bivariate probit model which took into account mutual interdependence between product and process innovations. Moreover, the model was separately estimated for knowledge-intensive business services (KIBS) and other services. For comparative purposes, the author also estimated the model for manufacturing firms.FindingsEmpirical findings uniformly indicated an inverted U-shaped effect of the breadth of knowledge on both product and process innovations. Furthermore, the results demonstrated that using up to three knowledge sources increases the probability of a joint implementation of product and process innovations. These findings hold for both KIBS firms and other services. However, those service firms that focussed on a single type of innovation experienced diminishing returns to external knowledge when exploiting more than one source of knowledge. These results indicated that a simultaneous introduction of different types of innovation required diverse knowledge sources. In contrast, when focussing on a single type of innovation, service firms experienced diminishing returns when multiple sources were used. However, this finding was only partially found for manufacturing firms. Accordingly, this study’s findings provided support for the demarcation approach, insofar as the breadth of knowledge had a heterogenous impact on innovation in manufacturing relative to service firms.Originality/valuePrevious studies on the breadth of knowledge search mostly examined its influence on innovation performance without separately analysing manufacturing and service firms. The present study focussed on service firms that were further divided into KIBS and other service firms. By investigating potentially non-linear relationships between knowledge breadth and product and process innovations, it illustrated how different innovation strategies were affected by a diverse pool of external knowledge sources.

scholarly journals Relations between Innovation and Firm Performance of Manufacturing Firms in Southeast Asian Emerging Markets: Empirical Evidence from Indonesia, Malaysia, and Vietnam

2019 ◽  
Vol 5 (4) ◽  
pp. 98 ◽  
Author(s):  
Kyunga Na ◽  
Young-Hee Kang
Keyword(s):  
Firm Performance ◽  
Emerging Markets ◽  
Product Innovation ◽  
Southeast Asian ◽  
Manufacturing Firms ◽  
High Tech ◽  
Sales Growth ◽  
Process Innovations ◽  
Product And Process ◽  
Asian Emerging Markets

This study aims to investigate the effects of product and process innovations on manufacturing firm performance in Southeast Asian emerging markets. To this end, using a cross-national sample of 2324 manufacturing firms from the World Bank Enterprise Survey (WBES) dataset of 2015, we test the effects of product and process innovations on the sales growth of manufacturing firms in Vietnam, Malaysia, and Indonesia. This study finds that product innovation is positively related to sales growth while new operating technologies are negatively associated with sales growth. For high-tech firms, product innovation is positively related to sales growth. The findings imply that in Southeast Asian emerging markets, governments and manufacturing firms can enhance performance by investing in product innovation.

A Decision Support System for the Initiation of Technological Innovation in Small Manufacturing Enterprises

2000 ◽  
Vol 14 (4) ◽  
pp. 249-253 ◽  
Author(s):  
Farhad Azadivar ◽  
Yan Xue ◽  
Sharon Ordoobadi
Keyword(s):  
Focus Group ◽  
Technological Innovation ◽  
New Products ◽  
Manufacturing Firms ◽  
Technological Innovations ◽  
Large Set ◽  
Focus Group Discussions ◽  
Group Discussions ◽  
Manufacturing Enterprises ◽  
Innovation Activities

Most large enterprises have departments that are themselves solely responsible for research and development targeted at technological innovations in new products and processes. Smaller manufacturers, however, often do not have a formal process established. Management of technological innovation in these companies is either non-existent or is undertaken by a single authority, often the owner. To assist in this process, through interviews, focus group discussions and site visits with small manufacturing firms, a large set of cases on technological innovation activities that were or were not successful was collected and organized in a knowledge base. It was realized that factors involved in even attempting an innovation were so complicated that success depended mostly on the intuition and experience of the decision maker. The tool described in this paper is a Similarity Based Reasoning (SBR) methodology that attempts to transfer this intuition from those who have it to those who do not.

Fostering technological innovation through management and marketing innovation. The human and non-technological linkage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edwin Alexander Henao-García ◽  
Raúl Armando Cardona Montoya
Keyword(s):  
Technological Innovation ◽  
Technological Development ◽  
Management Innovation ◽  
Content Type ◽  
Logistic Regression Models ◽  
Marketing Innovation ◽  
Process Innovations ◽  
Innovation Activities ◽  
Product And Process ◽  
Human Side

PurposeThis paper aims to analyse the relationships between management innovation, marketing innovation, technological innovation and the personnel involved in science, technology and innovation activities.Design/methodology/approachThe work used data from the Technological Development and Innovation Survey – Colombian Industry VII 2013–2014. Six logistic regression models are tested for the analysis with 2,045 manufacturing firms.FindingsThe results suggest that the probability to pursue technological innovation diminishes in those firms that introduce management and/or marketing innovations. The same happens in firms seeking non-technological innovations with the introduction of product and process innovations. The human side, administrative and technical staff, working on innovation projects plays a key role in the success of different types of innovations.Originality/valueAt this time, there is a need for research studies with new approaches that look at innovation beyond the technological domain and focus on the human side of innovation and other important aspects such as the managerial contribution to innovation. Theoretically, the work contributes to expanding the scarce literature on the proposed relationship and, as far as is known, it is the only one with empirical data for an emerging economy such as the Colombian one. Empirically, useful information is provided for the design of strategies that seek to improve firms' innovation performance.

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