universities as strategic actors in the knowledge economy the university plays a particular role in the global knowledge economy as provider of both public and private goods related to education research and societal impacts at the same time universities in the plural play many different roles and exhibit a rich experimentation in organizational forms and knowledge foci adapting to local and global conditions there is also an aspect of uneven regional development and agglomeration of competencies as the individuals and organizations must also balance local interests and stakeholders with global networks in science technology and innovation thus we can identify empirically that universities are changing their strategies organizational structures and competencies in order to respond to new external demands and internal management practices bonaccorsi and daraio 2007 the question is how to explain this theoretically and identify empirical trends and pathways little previous research has focused upon how universities are learning to compete and why they try to act strategically this article as well as the selected articles in the special issue focus upon how and why this transition is occurring as well as the impacts for understanding universities as strategic actors in the knowledge economy section 2 provides an overview it introduces the three themes and articles collected in this special issue providing a summary of the main contributions section 3 then provides our perspective on how to analyze and understand universities as strategic actors it discusses relevant literature as a way of beginning to provide our perspective of the necessity and elements involved in a more united theoretical and empirical understanding this includes statement of predictions as well as empirical evidence that these trends are occurring section 4 concludes with relevant research themes for the future

discretionary disclosure of proprietary information in a multisegment firm the seminal unraveling result in the disclosure literature posits that discretion inevitably leads to full disclosure even when such disclosure has detrimental consequences in this paper we revisit optimal disclosure of proprietary information when firms compete in multiple markets the analysis demonstrates that in the presence of multiple segments the unraveling result applies at the firmwide level but not necessarily segment by segment instead when the firm has an ex ante desire to withhold information and segments are sufficiently similar the ex post disclosure equilibrium entails aggregation of segment details aggregation arises because any ex post temptation to disaggregate and reveal particularly favorable news in one segment entails revealing unfavorable news in another segment a desire to balance profits across segments then leads a firm to disclose firmwide information a temptation that cannot be avoided but only in the aggregate

the market evolution and sales takeoff of product innovations in contrast to the prevailing supply side explanation that price decreases are the key driver of a sales takeoff we argue that outward shifting supplyand demand curves lead to market takeoff our fundamental idea is that sales in new markets are initially low because the first commercialized forms of new innovations are primitive then as new firms enter actual and perceived product quality improves and prices possibly drop which leads to a takeoff in sales to provide empirical evidence for this explanation we explore the relationship between takeoff times price decreases and firm entry for a sample of consumer and industrial product innovations commercialized in the united states over the past 150 years based on a proportional hazards analysis of takeoff times we find that new firm entry dominates other factors in explaining observed sales takeoff times we interpret these results as supporting the idea that demand shifts during the early evolution of a new market due to nonprice factors is the key driver of a sales takeoff

the role of the state in evolutionary economics from an evolutionary perspective the role of public policy extends far beyond the mere correction of market failures emphasised by neoclassical economics public policy may facilitate the market process it may also guide the market process in the case of multiple equilibria the state can finally play a more creative role by allowing private agents to satisfy individually or collectively certain goals unattainable through market forces alone however this paper shows that although the scope of useful public policies is broader in an evolutionary approach than in neoclassical economics the government s ability to direct the evolution of the economic system is highly limited this paper also tries to formulate certain normative criteria which could act as public policy guidelines in an evolutionary perspective copyright 2004 oxford university press

technology as a complex adaptive system evidence from patent data this paper develops a theory of invention by drawing on complex adaptive systems theory we see invention as a process of recombinant search over technology landscapes this framing suggests that inventors might face a complexity catastrophe when they attempt to combine highly interdependent technologies our empirical analysis of patent citation rates supports this expectation our results also suggest however that the process of invention differs in important ways from biological evolution we discuss the implications of these findings for research on technological evolution industrial change and technology strategy 2001 elsevier science b v all rights reserved

moving innovation systems research to the next level towards an integrative agenda the concept of innovation systems has been a guiding paradigm of innovation research and strongly influenced research and innovation policy since the early 1990s in spite of this success criticisms have been raised in recent years about whether it is still a suitable framework for addressing the innovation related challenges of the future in the present paper we claim that systemic explanations of innovation success have still a very important role to play in order to address the rising criticism however we have to reconsider the conceptual core of the family of innovation systems is approaches and sketch out a path for renewal the paper retraces the conceptual roots of is approaches assesses their uptake in different policy circles around the world discusses the conceptual core and explanatory ambition and finally formulates a future oriented research agenda for a more integrative innovation systems framework

accounting for change in national systems of innovation a friendly critique based on the u s case abstract this paper advances a friendly critique of the national systems of innovation approach and offers some suggestions for its future development i argue that the approach has difficulty accounting for bounded change in national systems i review three recent changes in the u s innovation system the internet boom and bust of the late 1990s and early 2000s the response to the terrorist attacks of september 11 2001 and the acceleration of productivity growth since the mid 1990s in order to assess the strengths and weaknesses of the framework in this respect future research might be enriched at least in the case of large national innovation systems by absorbing concepts developed in other strands of institutionalist literature such as intercurrence and embeddedness

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

political instability pro business market reforms and their impacts on national systems of innovation abstract we investigate the impacts of political instability and pro business market reforms on national systems of innovation nsi across a range of developing and developed countries evidence suggests that national systems of innovation are most likely to flourish in developed politically stable countries and less likely to prosper in historically unstable countries while research has shown that pro business market reforms can be a valuable policy instrument to boost economic development in less developed countries the extent to which these reforms affect a country s innovativeness has been neglected in the literature in particular the degree to which pro business market reforms may compensate for political instability when it comes to fostering national systems of innovation remains under researched our findings support established arguments concerning the strong influence of political instability on inputs to national innovation systems we find however mixed effects for pro business market reforms while results indicate a negative direct influence on nsi they consistently show a strong moderating effect that counterbalances the negative impact of political instability especially in those developing country environments where science and technology are lagging these results provide important implications for policymakers as well as for our understanding of emerging and transition economies and national technological capability

a growing trend toward knowledge work in canada abstract this paper answers three questions related to the growing trend toward knowledge occupations in canada i what was the magnitude of the trend between 1971 and 1996 ii was the trend a widespread phenomenon or was it restricted to specific industries iii what are the proximate causes of the trends using five censuses 1971 1981 1986 1991 1996 and the input output i o data the paper provides evidence that the canadian economy is becoming increasingly knowledge based although the upgrading trends differ across knowledge occupations moreover we find that this phenomenon is spread across all industrial sectors finally using a decomposition analysis borrowed from wolff and baumol three factors the substitution effect the productivity lag effect and the demand effect have been examined in order to shed some light on these trends we find that these effects vary according to the nature of the knowledge involved in these different groups of occupations thus reflecting not only the importance of the technological change skill bias but also the increasing complexity of controlling and managing the new economic activities

what is new in the new industrial policy a manufacturing systems perspective this paper explores the recent evolution of manufacturing related policies in leading oecd economies germany japan the united kingdom and the united states a novel framework the industrial policy matrix is introduced and then used to illustrate and compare policy approaches in terms of factor inputs intervention levels and degrees of coordination while approaches adopted in different countries vary reflecting their respective contexts there is some evidence of a convergence on the effectiveness of particular programmes and organizations as well as on the characteristics that support the competitiveness of national manufacturing systems including coordination and alignment of related policies partnerships with industry and longer term investment and planning

competitiveness indices and developing countries an economic evaluation of the global competitiveness report developing countries policy makers worry about national competitiveness and closely watch indices ranking international competitive performance this paper analyzes from a development economics perspective if competitiveness is a legitimate concern and if the leading indices deserve the attention they get it assesses the best known index the global competitiveness report of the world economic forum and finds deficiencies at several levels its definitions are too broad the approach biased and the methodology flawed many qualitative measures are vague redundant or wrong these weak theoretical and empirical foundations reduce the value of the indices for analytical or policy purposes

discontinuities and senior management assessing the role of recognition in pharmaceutical firm response to biotechnology despite an increasing emphasis on the role of senior management cognition in shaping organizational action there have been few attempts to link top management mental models to strategic choice in the face of discontinuous innovation this paper uses 23 years of data covering 15 major pharmaceutical firms to explore the degree to which each firm s response to the revolution in biotechnology was shaped by the senior team s recognition of biotechnology s importance controlling for a number of important alternative explanations we show that recognition may be an important predictor of action suggesting that cognition at the most senior level can play a critical role in shaping established firms response to discontinuities copyright 2003 oxford university press

the emergence of technology systems knowledge production and distribution in the case of the emilian plastics district the emergence of technology systems is the result of interdependen t dynamics of generation and diffusion of complementary bits of localised technological knowledge technological communication is the crucial element assessing the collective conditions under which technological knowledge is accumulated and diffused the case study of the emerging emilian technological system in the plastics sector shows that the synchronic and diachronic localised interactions among industrial dynamics institutional r d efforts and technological interrelatedness are the determinants of the systematic production accumulation and distribution of localised technological knowledge in turn explaining the origin and development of the technology system itself

a general model of r d competition and policy this article constructs a model of r d with heterogeneous firms each firm s probability of success is a function of its sunk and recurrent r d expenditures the social gains from an innovation are not fully captured by the successful firm the comparison of the social optimum and the market equilibrium involves balancing spillover and crowding effects pigovian corrective policies as well as strategic policies for a subset of colluding firms are discussed

labor market regulation the diversity of knowledge and skill and national innovation performance abstract the diversity of knowledge and skill is an important element of a national system of innovation we propose a theory of how certain labor market institutions affect diversity and through that route affect levels of innovation specifically unemployment protection up encourages diversity by reducing the risk burden of a broad range of learning or human capital investment for that reason up fosters innovation employment protection ep reduces the risk burden of a much narrower range of learning for this reason it will not enhance diversity to the extent up does and it may actually depress overall diversity and innovation our approach differs from previous research on labor market insurance and skill formation much of which has dealt with a distinction between general and specific skills and which has treated the effects of up and ep as similar estimating the effects of up and ep on patenting for 25 oecd countries over 24 years we find a positive effect from up a negative effect from ep and evidence that the up effect is mediated by diversity of skill

triggers of change structural trajectories and production dynamics the transformation of production structures has been at the centre of the historical dynamics of capitalist economies since the first industrial revolution the article concentrates on production processes as principal loci of structural economic dynamics along increasing and decreasing returns trajectories these trajectories are triggered by structural opportunities and constraints embedded in production systems and their historical realisation is subject to different institutional configurations production units at different levels of aggregation the approach envisioned suggests the possibility of governing economic dynamics by structural policies working on the technological and organisational conditions of production as well as on the configuration of production processes within production units capitalist economies have to rely on a mix of co ordination devices across different production units and aggregation levels for capturing structural opportunities and avoiding structural constraints

on the optimal relation between the properties of managerial and financial reporting systems we develop a theoretical model of the firm that links properties stewardship vs valuation focus of financial reporting regimes with the informational properties of optimal managerial accounting systems we show that contrary to the standard textbook proposition properties of management and financial accounting systems are not independent significantly we provide an explicit connection between exogenous and observable properties of a firm s financial reporting system and the quality of the managerial accounting system on which manager s base real economic decisions as the quality of those economic decisions can also be inferred from publicly available data our theory generates new opportunities for empirical managerial accounting research on large nonproprietary samples further by being able to identify enhanced performance due to improved managerial accounting information our theory provides opportunities to gain a better understanding of the link between particular managerial accounting practices and the quality of the information produced

systems thinking market failure and the development of innovation policy the case of australia innovation policy is increasingly informed from the perspective of a national innovation system nis but despite the fact that research findings emphasize the importance of national differences in the framing conditions for innovation policy prescriptions tend to be uniform justifications for innovation policy generally relate to notions of market failure that are applicable in all nations in all conditions in this paper we develop a broad framework for nis analysis involving free market coordination and complex evolutionary system approaches within this framework we explore the evolving relationship between market failure and systems approaches to innovation policy in the case of australia drawing on information and analysis collected for a major review of australia s nis and the government s 10 year plan in response to it we show how the free market trajectory of policy making of past decades is being extended complemented and refocused by new approaches to complex evolutionary system thinking these approaches are shown to emphasize the importance of systemic connectivity evolving institutions and organizational capabilities nonetheless despite the fact that there has been much progress in this direction in the australian debate the predominant logic behind policy choices still remains one of addressing market failure and the primary focus of policy attention continues to be science and research rather than demand led approaches we discuss how the development and elaboration of notions of systems failure rather than just market failure can further improve policy making in the future

the market failure and the systemic failure rationales in technological innovation systems abstract in this paper we analyse the conceptual relationship between the market failure rationale and the systemic failure rationale as justifications for policy intervention within an innovation systems is analytical framework current policy analyses in the is literature are characterised by two contrasting theoretical positions regarding the way in which both rationales are conceptually interrelated in one strand of the literature the market failure rationale is considered as a valid although insufficient justification for policy intervention that therefore needs to be complemented by the arguments put forward by the systemic failure rationale this perspective implicitly presents the systemic failure framework as a more general approach than the market failure perspective on the other hand a number of is policy contributions explicitly reject the market failure approach and consider it a flawed argument for government intervention in this theoretical view the systemic failure approach is thus proposed as a more appropriate alternative innovation policy rationale despite their relevance as the theoretical bases that currently underpin actual innovation policy design an analysis of the robustness and conceptual coherence of these contrasting perspectives has not been provided so far in this work we set the analytical steps we deem required for this analysis and investigate under which premises the relationship between the market failure and the system failure rationales proposed by these two policy perspectives is valid from a theoretical point of view

science institutions and markets developments in the indian biotechnology sector bagchi sen s and lawton smith h science institutions and markets developments in the indian biotechnology sector regional studies to be competitive indian pharmaceutical and biotechnology companies pursue both imitative and innovation based strategies some undertake contractual clinical research from multinationals now that product patents have replaced process patenting the barriers for innovation are the lack of funds and regulations government funding bodies have to reconcile the goals science for society versus science for profit the regulatory process e g time taken for drug approvals is in need of change in recent years the industry has become more regionalized states are proactive in promoting bioscience complexes through parks and institutes e g bangalore and hyderabad this has implications for clustered economic development bagchi sen s et lawton smith h la science les institutions et les marches des developpements dans le secteur de la biotechnologie en inde regional

universities technology and innovation centres and regional development the case of the north east of england the paper examines the role of technology and innovation centres tics in bridging the gap between the university research base and industry in order to foster economic development in a lagging industrial region the context is provided by an academic literature on the role of universities in regional innovation systems some of which casts doubt on the capacity of universities to operate in this domain particularly within a lagging region the empirical case reports on a bold experiment initiated by the regional development agency in the older industrial region of the north east of england to create and support new tics in the fields of process innovation in high value manufacturing and new and renewable energy and on the engagement of a regionally committed university with these centres the evidence presented suggests that while there are links between the university and the centres both are principally operating in a national science and technology system in which contributing to addressing uneven regional economic development is a secondary concern copyright the author 2012 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

analyzing the functional dynamics of technological innovation systems a scheme of analysis various researchers and policy analysts have made empirical studies of innovation systems in order to understand their current structure and trace their dynamics however policy makers often experience difficulties in extracting practical guidelines from studies of this kind in this paper we operationalize our previous work on a functional approach to analyzing innovation system dynamics into a practical scheme of analysis for policy makers the scheme is based on previous literature and our own experience in developing and applying functional thinking it can be used by policy makers not only to identify the key policy issues but also to set policy goals

gasoline prices and the used automobile market a rational expectations asset price approach this paper examines the impact of changes in gasoline price expectations on the market values of used automobiles an asset model of automobile valuation is used to relate year to year changes in market values to changes in the present discounted value of gasoline expenses econometric evidence from data covering the years 1972 through 1981 substantially confirms the hypothesis of the model that a gasoline price shock causes relative price changes across automobile types in proportion to the differences in their rates of fuel consumption

from simplistic to complex systems in economics the applicability of complex systems theory in economics is evaluated and compared with standard approaches to economic theorising based upon constrained optimisation a complex system is defined in the economic context and differentiated from complex systems in physio chemical and biological settings it is explained why it is necessary to approach economic analysis from a network rather than a production and utility function perspective when we are dealing with complex systems it is argued that much of heterodox thought particularly in neo schumpeterian and neo austrian evolutionary economics can be placed within a complex systems perspective upon the economy the challenge is to replace prevailing simplistic theories based in constrained optimisation with simple theories derived from network representations in which value is created through the establishment of new connections between elements

the advancedness of knowledge in pollution saving technological change with a qualitative application to so2 cap and trade this paper investigates the extent to which advanced knowledge and technology played a role in the so2 compliance process in electric power plants under the us so2 cap and trade program it investigates the hypothesis that advanced knowledge and technology dedicated to pollution abatement played a minor role in that process while relatively unadvanced forms of knowledge and technology played the main role new qualitative evidence in this somewhat well known case is considered interviews with electric power plant r d managers plant level compliance data and the changes undergone by boiler manufacturer coal mining and railroad companies in the supply chain advanced knowledge dedicated to pollution abatement like the type now being emphasised for carbon capture and storage ccs played a minor role while unadvanced knowledge and technology played the main role while there are clearly limits to how far this unadvanced knowledge and technology finding can be generalised to ghg emission control the specific aspects of the so2 case that might be broadly informative of the response to ghg emissions are elaborated in any case the paper shows how innovation in pollution control can be inexpensive and effective without involving very much advanced knowledge and technology for pollution control

selective disclosures in the presence of uncertainty about information endowment abstract this paper analyzes a setting where firms could have private information from various sources and disclose a selective subset of that information investors have uncertainty about how much information firms have using a stylized model where there are two signals about a firm s future value and the firm may be privately informed of none one or all of those signals this paper establishes an equilibrium link between the cutoff value characterizing the partially informed firm s disclosure strategy and the partition of the signal space characterizing the fully informed firm s disclosure strategy the paper also discusses potential extensions of the model

unbundling the structure of inertia resource versus routine rigidity i work to unbundle the structure of inertia into two distinct categories resource rigidity failure to change resource investment patterns and routine rigidity failure to change organizational p

know how and asset complementarity and dynamic capability accumulation the case of r d dynamic capabilities enable firms to create new products and processes and respond to changing market conditions this empirical investigation of dynamic r d capabilities deals with the role of complementary know how and other assets in the context of changing conditions in the u s petroleum industry during the 1970s and early 1980s the analysis suggests that in response to rising oil prices firms with larger amounts of complementary technological knowledge and physical assets also undertook larger amounts of r d on coal conversion a synthetic fuels process 1997 by john wiley sons ltd

transformative technology and institutional transformation coevolution of biotechnology venture firms and the institutional framework in japan abstract japan is developing a national strategy for biotechnology which it sees as a transformative technology of strategic importance significant institutional transformation has occurred including changes to the legal structure of universities partly in an effort to enhance technology transfer these and other institutional changes are proving conducive to entrepreneurship and have developed alongside an increase in the number of biotechnology venture firms this paper presents an overview of these institutional transformations in the light of recent deregulation and legislative changes it posits that the emergence of bioventure firms the increase in their number and arguably their changing nature are manifestations of the coevolution of organizations with changes to the institutional framework finally it gives examples of several bioventures based on interviews conducted with the founders and chief scientists in japan and reveals some of the salient characteristics of these firms

the australian growth miracle an evolutionary macroeconomic explanation an evolutionary macroeconomic approach is applied to explain economic growth in australia from 1901 to 2008 support is found for the hypothesis that there were two distinct developmental phases before and after world war ii the evidence suggests that in each phase growth followed an innovation diffusion trajectory made possible by a growing capital stock in the first phase capital equipment seems to have augmented labour while in the second it reduced labour inputs replaced by cheap fossil fuel inputs this allowed significant transfers of labour into an expanding service sector strong economies of scale were operative in both phases with labour hour inputs dominating in the first phase and fossil fuel consumption in the second the results indicate that the australian economy currently has very strong growth potential over the coming decade although its heavy reliance on fossil fuels is viewed as a threat in the medium term

schumpeterian patterns of innovation using patent data for four countries germany france united kingdom and italy for the period 1968 1986 the authors find that the patterns of innovative activities differ systematically across technological classes while remarkable similarities emerge across countries in the patterns of innovative activities for each technological class this result strongly suggests that technological imperatives and technology specific factors closely linked to technological regimes play a major role in determining the patterns of innovative activities across countries schumpeter proposed two major patterns of innovative activities the first one labelled by nelson and winter 1982 and kamien and schwartz 1982 as schumpeter mark i is proposed in the theory of economic development 1934 in this work schumpeter examined the typical european industrial structure of the late nineteenth century characterised by many small firms according to this view the pattern of innovative activity is characterised by technological ease of entry in an industry and by a major role played by new firms in innovative activities new entrepreneurs come in an industry with new ideas new products or new processes launch new enterprises which challenge established firms and thus continuously disrupt the current ways of production organisation and distribution and wipe out the quasi rents associated with previous innovations the second one labelled schumpeter mark ii is proposed in capitalism socialism and democracy 1942 in this work inspired by the features of the american industry of the first half of the twentieth century schumpeter discussed the relevance of the industrial r d laboratory for technological innovation and the key role of large firms according to this view the pattern of innovative activities is characterised by the prevalence of large established firms and by relevant barriers to entry for new innovators large firms have institutionalised the innovation process with the creation of r d laboratories filled with researchers technicians and engineers with their accumulated stock of knowledge in specific technological areas their advanced competence in large scale r d projects production and distribution and their relevant financial resources they create barriers to entry to new entrepreneurs and small firms

capabilities as real options strategy research consists of a balance between positive and normative theory normative theories suggest particular heuristics or cognitive representations to find appropriate solutions heuristics permit faster solutions to real time problems they also suffer from the potential of negative transfer to inappropriate applications the theory of real options provides the appropriate heuristic framing of competencies and exploratory search a real options approach marries the theory of financial options to foundational ideas in strategy organizational theory and complex systems we join these approaches to identify three pairs of concepts scarce factor and the underlying asset in option theory inertia and irreversibility and the ruggedness of landscape and option values strategic theories of resources largely define a core competence as unique and nonimmutable in doing so this definition has wrongly forgotten barney s initial insight into scarce factor markets as determining the valuation of a competitive asset financial theory of real options derives its heuristics of investing in exploratory search by inferring future value of today s investments from market prices we apply the three conceptual pairs to the evaluation of capabilities as real options through a formal descriptive model the valuation of core capabilities is derived from observing the price dynamics of correlated strategic factors in the market because of inertia managers cannot easily adjust the wrong set of organizational capabilities to the emergence of market opportunities however firms that have made investments in capabilities appropriate to these opportunities are able to respond from this description we define core competence as the choice of capabilities that permits the firm to make the best response to market opportunities the heuristic framing of capabilities as real options guides the normative evaluation of the balance between exploitation and exploration

global value chains meet innovation systems are there learning opportunities for developing countries summary the innovation systems is literature tends not to emphasize the crucial impact of international knowledge and innovation exchange and collaboration through for example inter firm and intra firm networks and global value chains gvc in developing countries this aspect is crucial with integration in gvc playing a growing and very important role in accessing knowledge and enhancing learning and innovation however there is no agreement in the literature about how innovation systems and gvc interact and how this interaction is likely to affect enterprise learning three main conclusions emerge from the theoretical analysis and evidence presented in this paper first learning mechanisms can vary widely within the various forms of governance of gvc they can be the result of the pressure to achieve international standards or be facilitated by direct involvement of the value chain leaders when the suppliers competence is low and the risk of failure to comply is high when the competences of the actors in the value chain are complementary learning is mutual and is based on intense face to face interactions second as we open is to foreign sources of knowledge the relationship between gvcs and is is nonlinear and endogenous and mutually affecting on the basis of our model we would expect a well structured and efficient innovation system would help to reduce transaction complexity and enable transactions based on relational forms of gvc governance third the internal governance of gvc is a dynamic phenomenon that is subject to continuous adjustments and changes and the nature of the is affects this co evolution 2011 elsevier ltd all rights reserved

on the coexistence of positive and negative externalities in the inter powertrain relationships abstract the green knowledge based economy has complicated the dynamical knowledge interactions in the multi technology sector of transportation that involves a constellation of interrelated powertrain technologies including the internal combustion engine hybrid and battery electric vehicles icev bev and hev based on the biological ecology perspective and the technological innovation system tis framework we explore the dynamical inter powertrain relationships in terms of knowledge diffusion over 1985 2016 we measure their knowledge diffusion by extracting patents and publications forward citations from the scopus and derwent databases respectively quantifying by the lotka volterra l v equations our results show that powertrains support and inhibit their knowledge diffusion growth by projecting positive and negative externalities which are carried through the tis co dynamics our results reveal these externalities are manifested in a mix of biological relationship modes such as symbiosis parasitism commensalism and amensalism we therefore challenge the assumed pure competition between icev and bev or their predator prey relationships with hev by elaborating on the notions of creative destruction and creative accumulation our research contributes to the innovation systems literature by accommodating knowledge diffusion co dynamics as an extension to the tis framework making it more outward oriented moreover the co existence of positive and negative externalities builds up a multi cross path interactions view that extends the conventional single path view in the path dependency literature our research drives insightful knowledge for strategising and policy making in regard with investing in new disruptive technologies sustaining the incumbent technology or hybridising them as a transitionary or stationary solution towards sustainable mobility transition

government policy university strategy and the academic entrepreneur the case of queensland s smart state institutes significant new university initiatives are usually analysed from the perspectives of government policy university strategy or the entrepreneurship of particular individuals but rarely from the view of their interdependencies this paper reports on the creation of four smart state institutes at the university of queensland in australia and the concatenation of circumstances decisions and actions that led to their formation in the course of just over a decade these institutes addressing biotechnology nanotechnology neuroscience and the molecular and cellular basis of disease have developed into a cluster of scientific research of global significance raising over 1 billion in investment and employing 1300 staff

the diffusion of adsl and costs of switching internet providers in the broadband industry evidence from the french case the innovative broadband internet industry is characterised by inertia phenomena in terms of technology choice as well as selection of internet service providers isps within the set of firms providing internet very often in europe the incumbent operator has the lion s share of end customers and supplies the dominant technology focusing on the french case this paper shows that although inertia on the supply side partly due to the regulation process in itself helps to explain the technology mix reached to date a more complete picture of the inertia can be obtained when we consider the existence of costs faced by customers when switching between isps we calculate these so called switching costs the closing section of this paper derives several implications in terms of policy

learning innovation increasing returns and resource creation luigi pasinetti s original sin of and call for a post classical economics we draw on the seminal contribution to economics by luigi pasinetti respond to his call to reverse what he saw as the original sin of classical economists exacerbated by neoclassical economists namely the assumption of non increasing returns to scale and move towards building a post classical economics we outline the contours of a post classical framework that draws on key themes and contributions from pasinetti on learning technical progress increasing returns resource creation trade and catching up and contributions from within and without economics that are in line with lend support to and challenge it we advocate the pressing need and opportune timing for a concerted effort to revitalise ideas from the once vibrant cambridge school of economics and help develop a fresh more pluralist and inclusive post classical economics that cuts across divides and opens up opportunities for a less dismal science

technology systems and technology policy in an evolutionary framework the central purpose of this paper is to outline an evolutionary theory of technology policy and to connect it with the emerging literature on national systems of innovation any understanding of technology policy must be based on a clear understanding of the nature of technology and the important differences between science and technology technology can be treated in terms of knowledge skills and artifacts and in each case there are different variety generating mechanisms different selection processes and different institutional structures for policy purposes the degree of connection between these different dimensions of technology is at the core of technology policy c 1995 academic press inc copyright 1995 by oxford university press

evolution roots and influence of the literature on national systems of innovation a bibliometric account the literature on the national systems of innovation nsi is a relatively new field of research that has spread remarkably in the past 20 years this article offers a complementary quantitative description of the state of the art of the literature based on bibliometric methods by explicitly addressing the roots evolution and influence of nsi literature the exercise shows that over time the rate of published articles was quite irregular and that contributions on nsi have not yet converged to an integrated analytical framework although historically detailed descriptions on nsi showed a noticeable increase in the more recent period 2006 2010 analyses using more formal and diversified quantitative methodologies for assessing the performance of nsi remained lacking reflecting its persisting methodological weaknesses the roots of the nsi literature can be found at the core of innovation studies by certain well known scholars in the area of economics of innovation and science policy research even though publications on nsi are falling in relative importance and are highly concentrated on a small set of countries united kingdom denmark and the united states their influence is global they are cited by authors affiliated in organisations around the world notably in latin america and asia such an influence goes far beyond the area of innovation studies and has resonated in fields such as economic geography environmental studies international business and managerial sciences this demonstrates that the nsi literature is not self referential

the functions of technology infrastructure in a competitive economy abstract governments of industrialized nations play varied but important roles in providing the diverse technology infrastructure that supports a modern competitive economy an understanding of the structure and impacts of these roles as well as efficiency differences among alternative implementation schemes is particularly important at this time as competing industrialized nations are revamping their technology infrastructures in response to major shifts in thescope as well as the content of their growth strategies these shifts in scope can be described as evolutionary changes from single stage to multi stage strategies in that several modes of technology based competition are simultaneously pursued that is whereas an economy may have focused on innovation manufacturing high volume or niche markets etc most if not all of these must be pursued together in the future in order to diversify risk and achieve economies of scope effective implementation of the more complex multi stage growth strategy requires a consensus model of the appropriate functions for infrastructure and its institutions such a consensus model is necessary to efficiently guide strategic planning in both industry and government in particular a conceptual basis is needed for defining the critical interfaces between the government and industry roles including effective long range planning communication and cooperation the required technology infrastructure policy model is derived from a microeconomic model of the typical technology based industry existing national strategies have demonstrated the importance of efficiency at the production and market development stages as well as at the r d stage but the trend is towards promoting simultaneous efficiency at all these stages that is the model and the derived infrastructure functions must cover all stages and interfaces in the technology and related product life cycles

universities in emerging economies bridging local industry with international science evidence from chile and south africa emerging economies are now becoming more central in global competition to achieve this many countries have invested to develop into knowledge economies universities have a role to play in this transformation both as generators of new knowledge as well as actors that can interact with the local industry and contribute to its innovativeness this paper explores using two case studies in the chilean and south african wine industry how universities connect international science to domestic industry it finds that this connection occurs through a few bridging researchers who display particular characteristics compared with their colleagues bridging researchers are more talented than average researchers both because they publish more in international journals and or because they have received awards for their academic work this finding may have significant policy implications as policies aimed at strengthening the skills of these researchers should be welcomed in catching up industries copyright the author 2012 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

customer power strategic investment and the failure of leading firms why might firms be regarded as astutely managed at one point yet subsequently lose their positions of industry leadership when faced with technological change we present a model grounded in a study of the world disk drive industry that charts the process through which the demands of a firm s customers shape the allocation of resources in technological innovation a model that links theories of resource dependence and resource allocation we show that established firms led the industry in developing technologies of every sort even radical ones whenever the technologies addressed existing customers needs the same firms failed to develop simpler technologies that initially were only useful in emerging markets because impetus coalesces behind and resources are allocated to programs targeting powerful customers projects targeted at technologies for which no customers yet exist languish for lack of impetus and resources because the rate of technical progress can exceed the performance demanded in a market technologies which initially can only be used in emerging markets later can invade mainstream ones carrying entrant firms to victory over established companies

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 c 2012 elsevier b v all rights reserved less

application specific r d capabilities and the advantage of incumbents evidence from the anticancer drug market this paper examines the proposition that during competence destroying technological changes incumbents are incompetent in researching in house a radically new technology they only retain market leadership if their undestroyed proprietary complementary assets compensate for their research incompetence in contrast to prior research i propose that there is not one but two sets of capabilities necessary to execute research and development r d sets that differ in their market specificity a technology specific set i e technological platforms that are non market specific and an application specific set i e knowledge of the application that is therefore market specific although all markets require both sets of capabilities to execute r d prior research has analyzed cases where the application was not as complex and therefore application specific capabilities did not represent strategic factors because at the start of a technological discontinuity application specific capabilities are undestroyed and have accrued only to incumbents when complex enough these capabilities can represent a source of competitive advantage for these firms even in the face of competition from diversifying entrants reusing previously acquired technological platforms i find evidence consistent with my proposition based on data on outcomes from drug discovery as estimated through clinical endpoints in phase i trials for firms competing in the anticancer drug market one of the most complex markets within pharmaceuticals as the market transitions into the biotechnology revolution the proposition in this paper implies that although technological platforms can help firms move across markets application specific r d capabilities can help firms retain leadership within a market across technological discontinuities

the evolution of technologies and investment in innovation the proposition that old knowledge is an input in the production of new knowledge is itself old knowledge in a general sense we all know that current innovations derive partly from past innovations and will themselves influence future ones but within a technology is there a time dependent pattern to innovations more specifically do the characteristics of innovations change systematically when compared to those that precede or follow them and are returns to investment in innovation and the consequent level of such investment dependent in a consistent way on the location of innovative effort in the evolution of a technology our analysis is partly motivated by an unresolved controversy in the economic literature between what may be characterised as the kuznets and the schmookler views of technical change it may therefore be helpful to review briefly the content of this debate kuznets i 930 and burns i 934 and later salter i 960 among others saw technological opportunities as declining over the life cycle of a new product or industry each new technology is limited in the extent to which it can be developed and the most promising opportunities for development are exploited first both kuznets and burns explained the eventual decline in the growth in output of new industries by a decline in the rate of technical change as a given technology matures kuznets stressed the role of price reducing changes in production processes as a force generating growth in output a reduction in the rate of such change he argued leads to a decline in the negative rate of change of the relative price of a new product and a consequent decline in the rate of growth of its output a parallel argument can be made for quality enhancing product innovations which contribute to the growth in demand for a new product as opportunities for the most important quality improvements are exhausted the growth rate in demand declines and the industry gradually approaches obsolescence as newer technologies emerge at the macroeconomic level it follows that both the rate of change in productivity and the growth of the economy depend upon the combination of new versus old industries that account for aggregate output this view of the evolution of technologies has been sharply criticised by schmookler i966 given the cost required to produce an innovation the profitability it contributes increases with market size the larger the demand the greater is the revenue collected from a new product or alternatively the larger is the aggregate cost saving from a superior production process it follows ceteris paribus that a larger market leads to an increase in investment in inno

governed by history institutional analysis of a contested biofuel innovation system in tanzania initially hailed as a miracle crop for biofuel production jatropha has recently attracted criticism for competing with food production causing adverse biodiversity impacts and jeopardizing land access by rural populations in tropical countries this paper analyzes the contested development of jatropha biofuel sector in tanzania by anchoring two new concepts of organizational models and institutional arrangements to the sectoral systems of innovation perspective the notion of organizational models brings into relief the heterogeneity of actors in an innovation system and the ways in which the actors form networks within and across national borders to organize innovative activities the concept of institutional arrangements refers to the ensemble of formal and informal institutions assembled during tanzania s colonial and post colonial eras which directly govern innovative activities in specific organizational models based on a location specific and historically grounded institutional analysis within the innovation system framework implications are drawn for the future development of tanzania s jatropha sector including its links with european markets and for the regulation of next generation biofuels

developing science technology and innovation indicators what we can learn from the past the science technology innovation system is one that is continuously and rapidly evolving the dramatic growth over the last twenty years in the use of science technology and innovation sti indicators appears first and foremost the result of a combination between on the one hand the easiness of computerized access to an increasing number of measures of sti and on the other hand the interest in a growing number of public policy and private business circles in such indicators as might be expected in societies which increasingly use organised science and technology to achieve a wide variety of social and economic objectives and in which business competition is increasingly based on innovation as highlighted on the basis of 40 years of indicators work frontiers and characteristics that were important last century may well no longer be so relevant today and indeed may even be positively misleading

complex innovation policy systems towards an evaluation mix abstract the mix of contemporary innovation policies impacting on a given territory are typically characterised by quite different underlying rationales and instruments complexity is further increased by multi level considerations thus policies with different characteristics and from different administrative levels are continually interacting with one another in complex policy systems these interactions significantly complicate the evaluation of individual policies and raise a series of difficult questions around how their respective evaluation processes should interact to facilitate learning around the performance of policy systems this paper contributes with a simplified definition of an innovation policy system as the conjuncture of policy mix and multi level dimensions from which a series of steps are proposed for arriving at an evaluation mix relevant for the specific characteristics of a given policy space these ideas are explored with respect to the case of the basque country region of spain and signal an agenda for further applied policy research

national innovation systems and the intermediary role of industry associations in building institutional capacities for innovation in developing countries a critical review of the literature abstract developed over the past three decades the national innovation system concept nis has been widely used by both scholars and policy makers to explain how interactions between a set of distinct nationally bounded institutions supports and facilitates technological change and the emergence and diffusion of new innovations this concept provides a framework by which developing countries can adopt for purposes of catching up initially conceived on structures and interactions identified in economically advanced countries the application of the nis concept to developing countries has been gradual and has coincided in the nis literature with a move away from overly macro interpretations to an emphasis on micro level interactions and processes with much of this work questioning the nation state as the most appropriate level of analysis as well as the emergence of certain intermediary actors thought to facilitate knowledge exchange between actors and institutions this paper reviews the nis literature chronologically showing how this shift in emphasis has diminished somewhat the importance of both institutions particularly governments and the political processes of institutional capacity building in doing so the paper suggests that more recent literature on intermediaries such as industry associations may offer valuable insights to how institutional capacity building occurs and how it might be directed particularly in the context of developing countries where governance capacities are often lacking contributing to less effective innovation systems stagnant economies and unequal development

cross firm real earnings management cross firm real earnings management our analysis is rooted in the notion that stockholders can learn about the fundamental value of any firm from observing the earnings reports of its rivals we argue that such intra industry information transfers which have been broadly documented in the empirical literature may motivate managers to alter stockholders beliefs about the value of their firm not only by manipulating their own earnings report but also by influencing the earnings reports of rival firms managers obviously do not have access to the accounting system of peer firms but they can nevertheless influence the earnings reports of rival firms by distorting real transactions that relate to the product market competition we demonstrate such managerial behavior which we refer to as cross firm real earnings management and explore its potential consequences and interrelation with the practice of accounting based earnings management within an industry setting with imperfect non proprietary accounting information this article is protected by copyright all rights reserved

a penny for your quotes patent citations and the value of innovations the use ofpatents in economic research has been seriously hindered by the fact that patents vary enormously in their importance or value and hence simple patent counts cannot be informative about innovative output the purpose of this article is to put forward patent counts weighted by citations as indicators of the value of innovations thereby overcoming the limitations of simple counts the empirical analysis of a particular innovation computed tomography scanners indeed shows a close association between citation based patent indices and independent measures of the social value of innovations in that field moreover the weighting scheme appears to be nonlinear increasing in the number of citations implying that the informational content of citations rises at the margin as in previous studies simple patent counts are found to be highly correlated with contemporaneous rd however here the association is within afield over time rather than cross sectional

intergenerational hybrids spillbacks spillforwards and adapting to technology discontinuities during technological discontinuities incumbents frequently develop hybrids of competing technical generations although some prior work implies that such intergenerational hybrids may be the result of organizational dysfunction we propose that in some cases hybrids may be sophisticated learning tools that shape organizational adaptation to a technological discontinuity in this paper we suggest two mechanisms through which intergenerational hybrids may affect organizational adaptation spillbacks and spillforwards in an empirical test among the population of automobile carburetor manufacturers during a technological discontinuity we observe that organizations developing intergenerational hybrids capture spillback benefits knowledge spillovers from an emerging technology generation to the current generation furthermore we find that these same organizations also capture spillforwards spillover benefits from developing higher performing intergenerational hybrids that improve their product performance in the future technology generation these results suggest that intergenerational hybrids may be stepping stones for organizations to learn about and adapt to technology discontinuities

investigating a neglected part of schumpeter s creative army what drives new to the market innovation in micro enterprises schumpeterian arguments related to creative destruction place small entrepreneurial firms at the centre of the innovation process the exclusion of micro enterprises with less than 10 employees from most innovation surveys means however that we know relatively little about innovation among this group of firms here using new survey data on a thousand micro enterprises we explore the determinants of new to the market innovation the basis for the schumpeterian creative destruction cd process our results provide strong support for the interactive nature of micro enterprise innovation and suggest the potential value of a model of interactive creative destruction icd contrary to some other recent evidence market based and supplier based collaboration both prove important for new to the market innovation our results suggest the importance of micro enterprises as sources of new to the market innovation and the potential value of including such firms in future innovation studies

a signal jamming theory of predation we propose a new theory ofpredation based on signal jamming in our model the predator s characteristics are common knowledge while the entrant is uncertain of his own future profitability the entrant uses his current profit to decide whether to remain in the market and the predator preys to jam or interfere with this inference problem thus our model differs from those based on reputation effects in which the predator preys to signal information about himself

recent evolutionary theorizing about economic change this famous passage from marshall s principles of economics it first appeared in the fifth edition which came out in 1907 nicely brings out two issues which are as germane to economics today as they were when marshall wrote the first is the heavy reliance by economists in their formal theorizing on the notion of equilibrium the other is the appeal that biological conceptions3x201d have for many economists particularly when their focus is on economic change

sectoral systems of innovation and production the concept sectoral system of innovation and production provides a multidimensional integrated and dynamic view of sectors it is proposed that a sectoral system is a set of products and the set of agents carrying out market and non market interactions for the creation production and sale of those products a sectoral systems has a specific knowledge base technologies inputs and demand agents are individuals and organizations at various levels of aggregation they interact through processes of communication exchange co operation competition and command and these interactions are shaped by institutions a sectoral system undergoes change and transformation through the co evolution of its various elements 2002 elsevier science b v all rights reserved

competitiveness and industrial policy from rationalities of failure towards the ability to evolve this article elaborates a dynamic rationale of industrial policy focusing on how to strengthen the socio economic system s ability to evolve i e how to achieve high real income together with qualitative change it highlights that the ubiquitous rationalities of failure be it of markets governments or systems are rooted in a peculiar habit of accepting hypothetical perfect states as normative benchmarks in contrast a dynamic logic of intervention should start from the question what the system aims to accomplish combining the structuralist ontology of micro meso and macro with the functional principles of evolutionary change the paper proposes a general typology of economic policies based on their respective contributions to the system s ability to evolve

public policies and changing boundaries of firms in a history friendly model of the co evolution of the computer and semiconductor industries in this paper we explore the effects of alternative policies ranging from antitrust to public procurement open standards information diffusion and basic research support on the dynamics of two vertically related industries in changing and uncertain technological and market environments the two industries are a system industry and a component industry and the evolution of these industries is characterized by periods of technological revolutions punctuating periods of relative technological stability and smooth technical progress we have been inspired by the co evolution of the computer and component industries from their inceptions to the 1980s on the basis of that evolution we have developed a history friendly model this co evolution in sum this paper has stressed that various types of policies may sometimes have contrasting effects on the industry mainly on concentration and technical change and innovation it has also shown that the consequences of policies may spillover from one industry to another and from one type of firms to another policies that aim at a specific industry may provoke major changes in a related industry through the product market the changing boundaries of firms or knowledge and technological interdependencies the policy maker has to be aware of that finally a major point of the paper regards the unintended consequences of policies

unraveling the process of creative destruction complementary assets and incumbent survival in the typesetter industry when radical technological change transforms an industry established firms sometimes fail drastically and are displaced by new entrants yet other times survive and prosper drawing upon an unusually rich data set that covers the technological and competitive history of the typesetter industry from 1886 to 1990 this paper uses a combination of quantitative and qualitative analysis to unravel this process of creative destruction it argues that the ultimate commercial performance of incumbents vs new entrants is driven by the balance and interaction of three factors investment technical capabilities and appropriability through specialized complementary assets in this industry specialized complementary assets played a crucial role in buffering incumbents from the effects of competence destruction and an analysis that examined investment or technical capabilities in isolation would have led to misleading results this work thus highlights the importance of considering multiple perspectives when examining the competitive implications of technological change 1997 by john wiley sons ltd

prospective voluntary agreements for escaping techno institutional lock in the paper looks for evolutionary policy responses to techno institutional lock in a persistent state that creates systemic market and policy barriers to technological alternatives we address the coordination role for authorities rather than corrective optimisation and elaborate three evolutionary policy objectives including fostering of i the diversity of technological options ii common vision for the implementation of technological alternatives and iii changes in social and physical networks we use these objectives to analyse documented experiences from environmental voluntary agreements and foresight activities we argue that combining the virtues of these tools into a new policy tool named prospective voluntary agreement can help facilitate an escape from techno institutional lock in the merit of the prospective voluntary agreement lies with the enhancement of collaborative policy cultures and inter sectoral and interdisciplinary stakeholder learning that creates commitment to desired action for escaping lock in d 2005 elsevier b v all rights reserved

goodwin cycles and the bopc growth paradigm a macrodynamic model of growth and fluctuations abstract the paper builds a non linear macrodynamic model to study the relation between the functional distribution of income technological progress and economic growth in the short term the interaction between the productivity regime the demand regime and the distributive conflict generates cyclical paths a la goodwin in the long term output growth rate is constrained by the balance of payments a la thirlwall in which the elasticities of foreign trade are modeled as a function of the complex relation between the wage share and the innovation capabilities of theeconomy

the slow pace of rapid technological change gradualism and punctuation in technological change discussions of technological change have offered sharply contrasting perspectives of technological change as gradual or incremental and the image of technological change as being rapid even discontinuous these alternative perspectives are bridged using the punctuated equilibrium framework of evolutionary biology using this framework it is argued that the critical event is not a transformation of the technology but speciation the application of existing technology to a new domain of application as a result of the distinct selection criteria and the degree of resource abundance in the new domain a new technological form may emerge the new technological form may be able to penetrate other niches and in particular may precipitate a process of creative destruction and out compete prior technologies this framework is applied to an historical study of wireless communication from the early experimental efforts of hertz to the modern development of wireless telephony

evolutionary economics and technology policy in this brief paper i propose to explore the economics of technology policy from an evolutionary perspective as with any evolutionary argument the central concern is with the mechanisms of economic change in this case in relation to the development of new technologies and patterns of organisation and their spread into the wider economic system in this sense we build upon one of the major stylized facts of modern growth structural change at all levels from the microeconomic to the macroeconomic to any observer of the policy making process let alone a practitioner the contrast between the theory which underpins policy and the implementation of policy will seem acute as nelson and winter i982 have rightly insisted research into policy is shaped by policy questions not by an agenda relating to how economic theory can be developed to deal with innovation setting priorities designing instruments and evaluating outcomes do not link easily with the general ideas dealt with below among the general points we will stress two will be of critical importance first that the innovation activities of firms involve a wider range of other institutions supplying the knowledge and skills which underpin the efforts of individual firms we term this the systems perspective on innovation nelson i993 secondly it is not helpful to treat innovation and the diffusion of innovation as separate categories in fact they are inseparable with feedback from diffusion being one of the critical elements shaping how a technology is developed we begin with a brief review of the familiar market failure perspective on policy and build from this into a brief overview of the evolutionary approach the paper concludes with an outline of the systems perspective on technology policy it is taken as read that virtually any economic policy can have implications in principle for the process of innovation however we treat technology policy in a narrow sense even though it spills over into questions of education policy science policy and competition policy

structural cycles and industrial policy alignment the private public nexus in the emilian packaging valley the article investigates changes in the interaction between business organisations local governments and public technology intermediaries resulting from business organisations shifts towards higher value product segment opportunities specifically we analyse how local governments can or not align their industrial policies to the industrial transformations both technological and organisational underpinning firms value creation capture dynamics the concept of structural cycle is introduced here to study the two interdependent processes of technology transition and organisational reconfiguration characterising those firms shifting towards higher value product segments this private public nexus is investigated in the emilian packaging valley context the mixed method study focuses on the case of ima spa its shifts from the food to the pharmaceutical value product segment of the packaging machine industry and its changing relationships with regional public policies and institutions a number of industrial policy implications for sustainable value creation dynamics in local production systems are finally derived

sectoral patterns of technological activity and export market share dynamics this paper focuses on a selected number of oecd countries and manufacturing sectors and shows the importance of sectoral diversity in the innovative process and in the relation between technology and world market share dynamics the econometric exercise confirms the importance of technological variables in the relation with world market shares in two ways first they are in general statistically significant second the taxonomy of technological classes in terms of r d intensity seems to be meaningful in disentangling the role played by sectoral diversity in the relation between embodied and disembodied investment and competitiveness sectoral diversity emerges in the statistical significance of the coefficients and in the time lag structure moreover the values of estimated r d parameters are correlated with the sectoral r d intensity

securities analysts and incumbent response to radical technological change evidence from digital photography and internet telephony a large body of research has explored the factors that impede established firms responses to radical technological changes while it is widely acknowledged that managers face pressures from financial markets to choose strategies that maximize shareholder value little work in the technological change literature has considered the possible influences of public equity markets and the securities analysts who mediate them on incumbent firms challenged with technological change in this paper i begin to address the topic by empirically exploring how securities analysts react to the different strategies undertaken by incumbent firms faced with radical technological change i study the question in two settings the shift to digital technology in photography and the advent of voice over internet protocol voip technology in wireline telecommunications i find evidence that analysts are more attentive and positive toward incumbents strategies that extend and preserve the existing technology than toward strategies that respond directly to the new technology in these settings analysts largely ignore incumbents strategies that directly incorporate the new technology for several years following the discontinuity this study provides insights into the nature and direction of analysts reactions to firms strategies in the context of technological change and is a first step toward better understanding of the potential role of analysts and financial markets in incumbent adaptation

innovation policy rationales lessons and challenges innovation policy has emerged as a new field of economic policy during the last few decades this paper explores the rationales for national innovation policies as laid out in the existing literature on the subject and considers what the lessons and challenges for theory and practice in this area are innovation policy attempts to influence innovation activity often with the purpose of increasing economic growth but it can also have more specific aims such as preventing unwarranted climate change improving national health and so on the increasing attention given to innovation policy at the national level from the 1990s onwards went hand in hand with the development of a new systemic understanding of innovation which in a better way than before accounted for the stylised facts of innovation activity as identified by empirical work the system approach as the paper shows came to have a significant influence on the subsequent policy discourse drawing on recent advances in innovation systems theory a synthetic framework for the analysis of innovation policy is developed and used to highlight issues of particular relevance for the conduct of innovation policy and future scholarly work in this area less

technology acquisition de regulation and competitiveness a study of indian automobile industry abstract this paper has attempted to analyse the effects of de regulation policy introduced in india during the mid 1980s on technology acquisition and competitiveness defined in terms of market share changes in the indian automobile industry during the 1980s following evolutionary theoretical framework the paper argues that asymmetry among firms in terms of technology acquisition through technology imports and in house efforts explain much of the firm level differences in competitiveness asymmetry in technology acquisition is largely due to differences in the firms ability to bring about technological paradigm and trajectory shifts the results of the econometric exercise support the view that even in an era of capacity licensing development of competitive skills crucially depended upon the ability to build specific technology trajectory advantages this is achieved by successfully complementing imported technology with in house technological efforts competitiveness in a de regulated regime would however depend upon the ability of the firm to bring about technological paradigm shifts new firms who depended on intra firm transfer of technology and firms with in house r d efforts to accomplish paradigm shifts appear more successful further in a liberal regime advantages of vertical integration over sub contracting also appear to be important in the determination of competitiveness

evolutionary approaches for sustainable innovation policies from niche to paradigm fostering technological innovation is considered as an important element of policies towards sustainable development in the past 10 years evolutionary policy approaches have been increasingly advocated for several reasons they seem well equipped to underpin sustainable innovation policies they focus on dynamics of change and their drivers they allow for a substantive perspective on technologies beyond mere input output relations taking into account trajectories and different characteristics of innovation and they are able to describe circumstances under which established technologies might persist even when they are to some extent inferior to their new competitors lock in however the policy effectiveness of evolutionary approaches in cases in which radical or systemic changes are involved is not yet proven in this paper we assess the theoretical rationale instrumental aspects and the coping with policy constraints of three evolutionary policy approaches which have also been used in empirical studies strategic niche management transition management and time strategies each approach has its strengths and specific problems and all three have to be further developed and tested out but they hold promise for contributing to non incremental change with economic and environmental benefits by shaping processes of variation selection and retention with the outcomes feeding back into policy they may also be used in other areas in which innovation direction is important for instance health care or food

toward prospective voluntary agreements reflections from a hydrogen foresight project abstract there is substantial interest in promoting the emergence of a hydrogen based energy economy if successful this would represent a policy led discontinuous transition away from existing fossil fuel based systems such a move has few precedents and few policy tools exist to manage such a complex and uncertain endeavour furthermore existing hydrocarbon energy systems can be considered techno institutional complexes tic which have developed through the path dependent co evolution of physical technologies and social institutions these complexes have numerous structures that ensure their perpetuation and create important barriers to the implementation of alternatives like hydrogen based systems the authors explore the application of prospective voluntary agreements pva as a policy tool process that can help facilitate a move towards a hydrogen based economy through foresight and negotiation from this perspective we look at the recent case of the nordic hydrogen energy foresight project for evidence

managerial commitments and technological change in the us tire industry this paper examines the response of the five largest american producers of automotive tires to a radical technological change the introduction of radial tires many theories attempt to explain firms response to radical technological change the effects of new technologies on economic incentives and on established firm capabilities are the factors highlighted in existing theory the tire producers invested heavily in radial technology despite the expected destruction of manufacturing competencies and the prospect of poor financial returns this paper suggests that an additional factor managerial commitments can also play an important role in shaping firms response to disruptive technology it argues that firms are more likely to adopt commitment enhancing than commitment destroying technologies and are likely to choose paths of implementation that are compatible with existing commitments copyright 1997 by oxford university press

technical change growth and trade new departures in institutional economics this article analyses the main theoretical and policy issues emerging from the literature on the evolutionary institutional economics of technical change the four distinguishing characteristics of which are that technology is often proprietary in nature only a part of knowledge is codifiable in handbooks blueprints patents and so on there are fundamental variations in the above two points across different technological fields and the evolution of knowledge is highly path dependent