catch up cycles and changes in industrial leadership windows of opportunity and responses of firms and countries in the evolution of sectoral systems this study proposes a framework that aims to explain why successive changes in industry leadership called also the catch up cycle occur over time in a sector in catch up cycles latecomer firms and countries emerge as international leaders whereas incumbents lose their previous positions new leaders are then dethroned by newcomers to identify factors at the base of catch up cycles this article adopts a sectoral system framework and identifies windows of opportunity that may emerge during the long run evolution of an industry this study proposes three windows related to the specific dimensions of a sectoral system one dimension is related to changes in knowledge and technology the second dimension pertains to changes in demand and the third includes changes in institutions and public policy the combination of the opening of a window technological demand or institutional policy and the responses of firms and other components of the sectoral system of the latecomer and incumbent countries determines changes in industrial leadership and catch up sectors differ according to the type of windows that may open and the responses of firms and other components of systems empirical evidence of catch up cycles is presented from six sectors namely mobile phones cameras semiconductors steel mid sized jets and wines

deregulation technology imports and in house r d efforts an analysis of the indian experience abstract this paper analyses the effects of the deregulation policy introduced in india in the mid 1980s on the relationship between technology imports and in house r d efforts using appropriate statistical techniques it examines the interactions between policy regime economic environment and the determinants of inter industry variation in technology imports in indian manufacturing in doing so it introduces r d efforts as one of the main determinants literature suggests that there is simultaneity in the relationship between technology imports and r d efforts to tackle this problem lagged r d expenditure intensity is adopted as a proxy for in house r d efforts the empirical results reveal that technology imports were only weakly related with the past in house r d efforts in the protective regime deregulation promoted complementarity between technology imports and r d efforts significantly the results also suggest that after deregulation the impact of product differentiation demand conditions and technology related factors increased significantly in determining the inter industry patterns of technology imports thus unlike in a regulated regime where technology imports are viewed important for filling gaps in domestic technological capabilities in a deregulated regime technology upgradation seems to be the major role of technology imports

do stronger intellectual property rights increase innovation summary do stronger intellectual property rights ipr increase innovation recent decades have seen a global transformation in ipr standards underpinned by the theory that stronger iprs spur increased incentives to innovate this study tests the impact of ever more rigorous ipr systems on innovation through an index of economic complexity of 94 countries from 1965 to 2005 our results confirm that stronger intellectual property systems engender higher levels of economic complexity nevertheless only countries with an initial above average level of development and complexity enjoy this effect

what makes basic research economically useful abstract economic analysis has helped us understand the strong economic dimension in the explosive growth of science and more recently the reasons for continuing public subsidies however the growing domination of the market failure approach has led to the analytical neglect of two major questions for policy makers how does science contribute to technology are the technological benefits from science increasingly becoming international on the former too much attention has been devoted to the relatively narrow range of scientific fields producing knowledge with direct technological applications and too little to the much broader range of fields the skills of which contribute to most technologies on the latter national systems of science and of technology remain closely coupled in most major countries in spite of the technological activities of large multinational firms empirical research is needed on concentration scale and efficiency in the performance of basic research where techniques and insights from the applied economics of industrial r d are of considerable relevance there is no convincing evidence so far of unexploited economies of scale in basic research this evidence shows that many policies for greater selectivity and concentration in basic research have been misconceived economists and other social scientists could help by formulating more persuasive justifications for public subsidy for basic research and by making more realistic assumptions about the nature of science and technology

the impact of technology and structural change on export performance in nine developing countries summary this paper focuses on nine large developing countries structural decomposition analysis shows that they tend to concentrate innovative activities in industries stagnating at the world level international trends partly offset national improvements in patent shares the same occurs for world export shares although countries display greater adaptation to world demand econometric analysis suggests that technological activity is related to export gains in high technology sectors if a country expands in industries with increasing technological opportunities in medium technology sectors if it moves away from low opportunity sectors in low technology sectors if it is initially specialized in growing sectors in high tech and low tech sectors export performance is also affected by the growth of technical capabilities foreign direct investments productivity and the initial level of technical skills and in medium tech by the growth rates of foreign direct investments

upgrading in global value chains lessons from latin american clusters it has been shown that clustering helps local enterprises in industrial districts overcome growth constraints and compete in distant markets in advanced and less developed countries nevertheless recent contributions have stressed that more attention needs to be paid to external linkages and to the role played by global buyers to foster upgrading at cluster levels in this study we contribute to this debate focusing on the analysis of the relationships existing between clustering global value chains upgrading and sectoral patterns of innovation in latin america we find that sectoral specificities matter and influence the mode and the extent of upgrading in clusters integrated in global value chains

openness to international markets and the diffusion of standards compliance in latin america a multi level analysis abstract this study contributes to the debate on the role of openness to international markets for the diffusion of compliance with international standards in developing countries relying upon aggregated data for 1995 2005 as well as upon firm level and secondary data from the chilean salmon farming industry the determinants of iso 9000 and iso 14001 diffusion at country industry and firm level in latin american are analysed our evidence suggests that openness to international markets acts at different levels at both the country and industry level it creates awareness and access to new knowledge therefore providing economic incentives or penalisations for evaluating certification this effect competes and complements the deliberated efforts and policies in explaining diffusion of certification at firm level however openness to international markets alone does not provide sufficient opportunities to acquire the knowledge required to comply with these standards in this case standards compliance depends on firm s capability to use relational and search assets as well as on national and industrial efforts and policies to spread standards usage

industry and firm specific factors of innovation novelty this article investigates the underlying factors that might shape the firm s choices with respect to degrees of innovation novelty using a sample of 2983 firms observed under the portuguese community innovation survey we assess the relative relevance of a set of firm and industry specific factors in explaining firms choices about incremental or radical innovation the results indicate that both the firm s idiosyncratic historical factors giving rise to heterogeneous r d capabilities and the industry context have power to shape the firm s innovation choices even though firm specific factors appear to be more powerful the estimated impacts on firm s innovation novelty are nonetheless significantly moderated by the type of firm and industry

technological learning in singapore a test case of leapfrogging some technology analysts have suggested that developing countries dcs might be able to leapfrog earlier technological paradigms and catch up in the field of electronics this paper provides a partial test case of the leapfrogging argument using evidence from singapore s electronics industry it shows that technology was accumulated through a gradual process of learning rather than by leapfrogging indeed corporate learning was incremental painstaking long term and cumulative also in contrast with the leapfrogging hypothesis firms tended to enter electronics at the mature phase of the product cycle rather than the early stage furthermore much of the technology accumulated by singapore s electronics industry was pre electronic in character involving crafts mechanical and precision engineering electro mechanical interfacing and basic manufacturing skills rather than the software computer and r d skills usually associated with electronics the evidence from singapore suggests that industri

patterns of technological accumulation the comparative advantage and relative impact of asian emerging economies in low carbon energy technological systems abstract this paper highlights the specificities of the patterns of low carbon energy technological innovations in selected asian emerging economies china and the members of asean 4 thailand malaysia indonesia and the philippines are included in this analysis for their identical structure of developing economy we outline a synthetic framework to cluster together the technologies with similar characteristics and analyse the changes of these characteristics over time this is in order to elucidate the scope of sectoral composition and specialisation of the selected economies and thereby understand the relative impact of science based low carbon energy technologies on the niches of technological excellence the findings show that china was keen to pursue its diversification strategy and develop its capability in low carbon energy technologies since the turn of the millennium however china has been gradually losing its momentum in more traditional areas like biomass hydroelectric power natural gas and fossil fuels the asean 4 economies on the other hand are showing interest in building a number of niches of technological excellence this highlights a contrasting relative technological advantage between larger and smaller economies our findings also indicate that many of the low carbon technologies in selected economies have yet to attain strong scientific grounding for development the findings of this paper are expected to provide some insights into low carbon energy technological development of emerging economies and be useful for other developing economies to establish their strategic moves for energy technology development

a structuralist perspective on the role of technology in economic growth and development abstract this paper presents an integrated view of what is termed a structuralist perspective to economic growth and development that stands in contrast to the mainstream orthodox or neoclassical view in the structuralist view structural changes are causes of growth rather than outcomes of a process of capital accumulation and of rising per capita incomes moreover the growth process may be punctuated by periods of discrete shifts in resource allocation creative destruction and growth acceleration rather than being smooth throughout structural changes need not be automatic they require a skill specific infrastructure of new capabilities which when established generate new comparative advantages market failures may be pervasive due to problems of human capital accumulation critical mass and discrete choice among alternative growth paths thus in addition to creating a favorable environment for business and assuring through macroeconomic policy adequate investment successful growth may require an adequate industrial and technological policy particularly at nodes of structural change the paper surveys the structuralist insights appearing in the literature starting with the early postwar economic development literature and including recently developed formal models it also proposes a kinked or scalloped aggregate production function as a simple tool for structuralist analysis

agreements between firms and the technological life cycle model evidence from information technologies abstract contrarily to most previous contributions which have addressed the issue of cooperative agreements essentially in a perspective of comparative statics in this paper a model is proposed that relies on the technological trajectory notion suggested by evolutionary theories and emphasizes the relevance of the technological and market dynamics in explaining why and to what extent firms have recourse to agreements in particular it is claimed that the propensity of firms towards collaborative ventures and the characteristics of the cooperation depend upon the phase of the technological life cycle of the industry branch in which the cooperation takes place based on a cross sectional analysis of 45 industry branches in the information technology industrial system the paper also provides empirical evidence supporting the argument that the propensity towards agreements and the nature of the agreements concluded do change during the technological life cycle to this end it takes advantage of the arpa database developed at the polytechnic of milan and containing detailed information on over 2 000 agreements concluded in the 1980 1986 period all over the world in the semiconductor data processing and telecommunications industries

modeling the virtuous circle of innovation a test on italian firms this article investigates the virtuous circle between innovative inputs outputs and economic performance with a three equation model highlighting feedback loops and simultaneous relations an empirical test is conducted of innovative expenditure innovative sales and economic results in a sample of italian manufacturing firms comparing occasional and serial innovators the data for 1998 2007 are drawn from a rich panel of italian firms with 20 or more employees compiled by the italian national institute of statistics including three waves of community innovation surveys the model extends that developed at the industry level by bogliacino and pianta industrial and corporate change 2013a 22 3 649 678 innovation and demand in industry dynamics r d new products and profits in a pyka and e s andersen eds long term economic development economic complexity and evolution springer verlag berlin 2013b and confirms those earlier findings for the core of persistent innovators there are complex links at play in different phases of the innovation process and in the feedback between economic success and sustained innovation expenditure

innovation and productivity across four european countries nber working paper seriesinnovation and productivity across four european countriesrachel griffithelena huergojacques mairessebettina petersworking paper 12722http www nber org papers w12722national bureau of economic research1050 massachusetts avenuecambridge ma 02138december 2006we would like to thank laura abramovsky manuel arellano rupert harrison jordi jaumandreu elizabeth kremp pierre mohnen helen simpson the analysis contained in this paper was fundedby the european commission the esrc and esf under grant res 000 23 0901 and the advancedinstitute of management research aim all errors and omissions remain the responsibility of theauthors the views expressed herein are those of the author s and do not necessarily reflect the viewsof the national bureau of economic research 2006 by rachel griffith elena huergo jacques mairesse and bettina peters all rights reserved short sections of text not to exceed two paragraphs may be quoted without explicit permission providedthat full credit including notice is given to the source

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

industrialisation catching up and economic growth a comparative study across the world s capitalist economies various hypotheses are examined seeking to explain inter country convergence at the upper end but divergence at the lower end of the world income rankings a model of disequilibrium growth with sector specific technological progress and spillover is developed and then estimated on two samples of capitalist economies 1960 85 it is found that the degree of disequilibrium between agriculture and industry is greatest in the least developed economies but their rate of labor transfer has been slow technological spillover has stimulated productivity growth in less developed agricultural sectors but not in the industrial sectors of the least developed economies copyright 1991 by royal economic society

complementarities of innovation activities an empirical analysis of the german manufacturing sector abstract innovation strategies in manufacturing often involve internal rd it is based on data from the german part of the community innovation survey cis 3 the results provide evidence for significant complementarities between internal r d and r d cooperation but cast doubt on the complementarity of internal and contracted r d since a productivity effect on firms patenting probability or sales with new products cannot be found

an evolutionary approach to technological innovation in agriculture some preliminary remarks abstract this article proposes an interpretation of the process of technological innovation in agriculture we begin with a criticism to the idea of agriculture as a particular environment in economic analysis we argue that some dynamic concepts from economics of innovation especially as seen by the evolutionary literature can be used as an adequate theoretical reference to study innovation in agriculture we then suggest an interpretation in terms of technological trajectories in order to explain the complexity of the technological regime in agriculture finally we discuss the present stage of transformation in this technological regime and the perspectives of the arising new trajectories

connections to distant knowledge interpersonal ties between more and less developed countries less developed countries benefit from being connected to technologically and economically advanced countries the well documented mechanisms for this cross national flow of knowledge all involve interfirm connections such as trade foreign direct investment fdi and alliances we examine the potential of a different mechanism interpersonal ties abroad that has only recently become practicable owing to advances in communication and transportation technologies globalization and increased migration we investigate when business knowledge obtained from interpersonal ties in more developed countries is more useful than locally sourced knowledge using a sample of south african managers we find that knowledge from more developed countries is not always more useful rather overseas knowledge is preferable when novel and accessible that is when new to the industry knowledge is needed when there is already a strong tie and when the knowledge does not involve a long discussion conversely local knowledge is preferable when new to the industry knowledge is not needed when the interpersonal tie is a weak tie and when a longer discussion is warranted this study demonstrates the value of connections between individuals in countries at different levels of development as sources of useful knowledge and suggests that international business research will benefit from exploring further the networks of individuals in addition to those of firms

how institutions create historically rooted trajectories of growth this paper is concerned with approaches to growth theory that argue for historically created institutionally rooted national development trajectories there are varied ways of organizing market economies and there is more than just one kind of capitalism the institutional approach begins with the observation that markets embedded in political and social institutions are the creation of government and politics indeed all economic interchange takes place within institutions and groups markets do not exist or operate apart from the rules and institutions that establish them and that structure how buying selling and the very organization of production takes place consequently there are multiple market capitalisms and in a global economy international competition among members must be understood as an interplay of these various national market systems focus is on the historically rooted national institutions which frame the choices of individuals and structure the terms on which issues such as agency problems and contract problems are confronted the approach proposed in this paper is a necessary complement to an institutionalism more familiar in economics this historical institutionalism frames problems and provides answers to puzzles that concern microeconomic based institutionalism the particular historical course of each nation s development creates a political economy with a distinctive institutional structure for governing the markets of labor land capital and goods the institutional structure induces particular kinds of corporate and government behavior by constraining and by z laying out a logic to the market and policy making process that is particular to that s political economy these typical strategies routine approaches to problems and shared o decision rules create predictable patterns in the way governments and companies go v about their business in a particular national political economy the paper then applies 1 these notions to the debate about national systems of innovation empirically there is evidence of distinct national technological trajectories the questions are why the j trajectories exist and why they have particular form national systems arguments need an institutional theory that would permit us to apply both evolutionary and new growth arguments about economic development to particular national cases

public sector organizations and agricultural catch up dilemma in emerging markets the orchestrating role of embrapa in brazil abstract how can an emerging economy beset by political economic and resource challenges jump start the technology catch up process in the agricultural sector and then forge an ecosystem to facilitate the continual generation and dissemination of innovations equally important how can it maintain the viability and salience of its catch up initiatives subsequent to the entry and inevitable dominance of multinational companies we answer these questions by studying catch up in brazil s soy seeds sector over four decades 1973 2015 in an environment of political and economic uncertainty embrapa a public sector organization forged partnerships to first develop absorptive capacity and innovation capabilities and then build an ecosystem of diverse organizations to generate and disseminate catch up outcomes to farmers and other end users embrapa also developed critical tacit knowledge and complementary assets that along with its emphasis on environmental sustainability and protecting national interests helped maintain its salience even after the entry and market dominance by multinational agribusinesses in addition to demonstrating critical roles for public sector organizations and public private networks in technological catch up in an emerging economy s agricultural sector our study calls into question the prevalent notion of technological catch up as a rush to reach the technological frontier at any cost

the size distribution of innovating firms in the uk 1945 1983 a survey of 4 378 significant innovations shows that firms with fewer than 1 000 employees commercialized a much larger share than is indicated by their share of r and d expenditures innovations per employee have been consistently above average in firms with more than 10 000 employees and have become so in firms with fewer than 1 000 intersectoral variation in the size distribution of innovating firms can be explained as a function of r and d based technological opportunities and of technological ease of entry by user firms with principal activities outside the sector copyright 1987 by blackwell publishing ltd

public policy and catching up by developing countries in global industries a simulation model this paper examines the effects of different public policies strengthening capability building favouring firms learning protectionism and support of entry of new domestic firms on the catch up of a latecomer with respect to an incumbent country in changing and uncertain technological environments the effects of these policies are analysed with a simulation model first separately and then jointly to assess possible complementarities we reach several results first we confirm that capability building and firms learning are important drivers of catch up second we find that when a large technological discontinuity takes place entry support favours catch up while protectionism has the opposite effect protectionism favours catch up only when no technological discontinuity opens up third we find that depending on the technological conditions different policy complementarities exist therefore different policy mixes should be at the base of a country catch up strategy these results add to the previous literature on public policy and catching up by developing countries in an industry by distinguishing the different effects of various types of public policy and relating them to the technological conditions that are present in an industry

measuring innovative performance is there an advantage in using multiple indicators abstract the innovative performance of companies has been studied quite extensively and for a long period of time however the results of many studies have not yet led to a generally accepted indicator of innovative performance or a common set of indicators so far the variety in terms of constructs measurements samples industries and countries has been substantial this paper studies the innovative performance of a large international sample of nearly 1200 companies in four high tech industries using a variety of indicators these indicators range from r d inputs patent counts and patent citations to new product announcements the study establishes that a composite construct based on these four indicators clearly catches a latent variable innovative performance however our findings also suggest that the statistical overlap between these indicators is that strong that future research might also consider using any of these indicators to measure the innovative performance of companies in high tech industries

exploring the dynamics of water innovation foundations for water innovation studies the urgent need for innovation to address multifaceted and intertwined water related challenges is becoming increasingly clear acknowledged and responded to with cumulating sources and amounts of funding nevertheless the water sector has been claimed to be less innovative than other sectors this special volume on the dynamics of water innovation is based on the realization that in general there is a striking absence of academic studies on the dynamics of water innovation this sv is therefore designed to lay the foundations for the field of water innovation studies in an effort to integrate the emerging insights together the contributions in this sv capture the current understanding of the dynamics of water innovation and provide insights into how the water innovation process can be fostered the purpose of this introductory article is threefold namely to frame the discussion on water innovation dynamics in order to contextualise the contributions of this sv to provide systematic guidance for studying water innovation dynamics and to suggest the way forward for water innovation studies it captures the extent of the field of water innovation studies with a review of the literature of the last three decades and frames water innovations based on five decades of innovation research and drawing on three areas management strategy and policy we provide an innovation studies taxonomy that consists of four organising dimensions type of innovation stage of innovation level of analysis and measurement this taxonomy enables researchers to study the dynamics of water innovation from different combinations of conceptual and thematic angles drawing on the field of innovation studies in a systematic fashion finally we reflect on the way forward for water innovation studies with suggestions for future research 2017 the authors

a multilevel analysis of innovation in developing countries innovation is a multilevel phenomenon not only characteristics of firms but also environment within which firms operate matter although this has been for long recognized in the literature a quantitative test that explicitly concerns the hypothesis that framework conditions affect innovativeness of firms remains lacking using a large sample of firms from many developing countries we estimate a multilevel model of innovation that integrates explanatory factors at different levels of the analysis apart from various firm s characteristics national economic technological and institutional conditions directly predict the likelihood of firms to innovate

implications of financial crisis for east asian trend growth the article sets the asian financial crisis in the context of the developmental state model of asian development and sees it as in part the downside risk of a financial liberalization that was badly handled but nevertheless appropriate as a stimulus to better productivity performance the east asian economies are shown still to have a large labour productivity gap with the leading oecd countries and substantial scope for further rapid catch up growth historical experience suggests that the policy response to the crisis is fundamental not only to immediate recovery prospects but also to realizing this remaining fast growth potential

contribution of new technology based firms to the strengthening of technological capabilities in intermediate economies this paper argues that the main contribution of new technology based firms ntbfs is their technological dynamism which invests them with two major roles a challenging role implicit in their creation whereby they break with the inertia of existing organisations and a more long standing technology transfer role acting as a source of new technologies which they acquire and deliver by several means the performance of these roles can be particularly valuable in less advanced economies contributing to a strengthening of the indigenous capabilities in new technologies empirical research on a sample of portuguese ntbfs has shown that these firms have indeed performed an important function by accessing new technological knowledge both from local public research and from more advanced countries which they further developed turned into marketable applications and commercialised but the conditions found in an intermediate economy such as portugal present ntbfs with particular problems the limited number of knowledgeable users prepared to adopt their products and the firms difficulty to reach other type of clients can be a major obstacle to their development therefore if the country is to profit from ntbfs challenging behaviour and technological competences their acquisition and diffusion efforts should be backed and complemented by demand oriented policies

real options logic revisited the performance effects of alternative resource allocation regimes we delineate three dimensions of resource allocation behavior that allow us to distinguish between real options logic and alternative resource allocation regimes sequencing low initial commitment and reallocation we then measure these in a product innovation context to test for the performance effect of real options logic vis a vis its alternatives sequencing which distinguishes dynamic allocation regimes more generally is associated with higher new product sales low initial commitment and reallocation do not show individual direct effects on new product sales however when assessed as a match we find that the fit between low initial commitment and reallocation yes yes no no increases performance significantly after controlling for such fit as well as sequencing we find no significant performance difference between real options logic and other regimes our findings imply that insufficient identification of real options logic picks up confounding effects which may provide an explanation for the inconclusive results in prior studies of real options and performance in addition to bounding the concept more precisely we contribute to theory by situating real options logic within the broader set of allocation regimes conducive to innovation performance in uncertain competitive markets

sectoral patterns of technical change towards a taxonomy and a theory abstract the purpose of the paper is to describe and explain sectoral patterns of technical change as revealed by data on about 2000 significant innovations in britain since 1945 most technological knowledge turns out not to be information that is generally applicable and easily reproducible but specific to firms and applications cumulative in development and varied amongst sectors in source and direction innovating firms principally in electronics and chemicals are relatively big and they develop innovations over a wide range of specific product groups within their principal sector but relatively few outside firms principally in mechanical and instrument engineering are relatively small and specialised and they exist in symbiosis with large firms in scale intensive sectors like metal manufacture and vehicles who make a significant contribution to their own process technology in textile firms on the other hand most process innovations come from suppliers these characteristics and variations can be classified in a three part taxonomy based on firms 1 supplier dominated 2 production intensive 3 science based they can be explained by sources of technology requirements of users and possibilities for appropriation this explanation has implications for our understanding of the sources and directions of technical change firms diversification behaviour the dynamic relationship between technology and industrial structure and the formation of technological skills and advantages at the level of the firm the region and the country

market stimulating technology policies in developing countries a framework with examples from east asia abstract this paper proposes an analytical framework for technology development based upon evolutionary approaches and drawing upon asian development strategies the analysis rests on the concept of market stimulating technology policies comprising a broad array of policies to promote industrial and technological development some market and others government determined these policies may be functional horizontal or vertical and can be analyzed at three levels national strategic and specific the paper suggests that strategic choices are involved at all stages that cannot be resolved entirely by recourse to free markets

heterogeneous technologies strategic groups and environmental efficiency technology gaps for european countries abstract this paper measures technology tg and environmental efficiency technology gaps eetgs in 25 european countries over two distinct periods 2002 and 2008 examining the possible effect of adopted environmental regulations and the kyoto protocol commitments on environmental efficiency technology gaps however the introduction of the metafrontier in our analysis puts into our discussion the role of heterogeneous technologies and its effect on the above mentioned measures employing a directional distance function we investigate whether there is an actual difference in terms of environmental efficiency and efficiency performance among european countries considering the technological frontiers under which they operate the construction of individual frontiers has been realized employing a large number of variables that are highly correlated with countries learning and absorbing capacity new technological knowledge and using economic theory and classical frontier discrimination like developed vs developing north vs south and participation in the eurozone or not the overall results indicate a crucial role of heterogeneous technologies for technology gaps in both periods moreover a significant decrease for both measures although in different percent has been recorded emphasizing the key role of knowledge spillovers

bertrand equilibrium with capacity constraints and restricted mobility this paper considers price competition among firms when there are capacity constraints and buyers have limited ability to visit firms a natural method of allocating buyers among firms arises in the equilibrium of the buyers search game sufficient conditions are given under which the buyers equilibrium varies continuously with the prices charged by firms capacity constraints are used to guarantee that this ensures existence of mixed strategy equilibria for the pricing game played by sellers we show that natural pure strategy equilibria arise when the game is made large in appropriate ways since bertrand s criticism of cournot it has been known that models where sellers compete with prices may have undesirable properties when the commodities traded are homogenous in the simplest models with constant marginal costs price may be driven down to the competitive level even when there are only two firms more problematic if sellers are subject to capacity constraints nash in prices equilibrium may not exist at all these problems all arise because of a discontinuity in firms profit functions that arises when the prices of two or more firms are equal there have been many attempts to resolve this problem the simplest is to constrain sellers prices to be equal and to force them to compete in quantities this is the basis of most of the literature on monopolistic competi

teaching an old dog new tricks firm learning from environmental regulation abstract we examine a new mechanism by which environmental regulation can increase efficiency intra firm knowledge spillovers due to environmental regulation county level non attainment of the national ambient air quality standards creates spatial variation in the degree of regulatory stringency as states impose stronger environmental regulation in non attainment counties we use this spatial variation to examine how the efficiency of electricity generators responds to increases in regulation we show that in response to increased regulatory stringency electricity generators find technical efficiency enhancements and then transfer these enhancements to other units within their fleet we find that a change in regulatory stringency translates to within firm spillovers of 3 4 and that these gains occur at least 3 years after the increase in regulatory stringency

location decentralization and knowledge sources for innovation when firms seek to innovate they must decide where to locate their innovation activity this location choice requires firms to make a simultaneous choice about the organizational structure of innovation activity almost by definition multiple locations per firm imply some degree of decentralization we compare predictions of the knowledge based view with the predictions of organizational economics regarding the location and decentralization of r d using firm level data on r d locations in finland we examine the conditions under which firms with multiple r d locations also have greater innovation output our results indicate that multilocation of r d activity is positively associated with imitative innovation output and is strongly correlated with greater external knowledge sourcing we also find that the positive association between multiple r d locations and innovative output does not apply to new to the market innovations the results are consistent with the interpretation that multilocation of r d enables firms to access a broad set of external sources of knowledge in pursuit of imitative rather than new to the market innovation moreover these findings imply heterogeneity in r d strategies between firms pursuing new to the market innovation and firms pursuing imitative innovation it is thus important to distinguish between new to the market and imitative innovations because their determinants may differ

the policy implications of the globalisation of innovation abstract the paper develops a taxonomy of the globalisation of innovation based on three categories a the international exploitation of technology produced on a national basis b the global generation of innovations c the global technological collaborations the most evident changes implied by the increasing globalisation of innovation and technology are the tougher and increased competition and the greater collaboration between actors both across and within national boundaries the advantages just as the costs of these tendencies can be substantial leading to a higher risk of winners and losers the paper analyses the different impact that each category might have on the economic and innovative performance of countries and regions with the aim of defining the implications for national policies it is suggested that public policies play a different role in each of the three processes of the globalisation of innovation and that a single strategy does not exist neither from a firm s nor from a government s perspective the paper emphasis that none of the three categories in this taxonomy renders national policy obsolete on the contrary public policies are necessary on a far wider range than those currently implemented in the majority of countries

multinational corporations economic and human rights impacts on developing countries a review and research agenda developing countries are attracting a significant portion of global foreign direct investments governments of such countries often compete fiercely for attracting multinational corporations mncs in the expectation of the advantages they will bring to their economies often prioritising economic goals over fundamental human rights for a long time economists have analysed the economic impacts of mncs while a parallel strand of work in political science business ethics and international law investigates the repercussions of mnc operations on human rights despite the significant relatedness and complementarities these two bodies of literature have so far poorly interacted this paper addresses this limitation and systematically analyses and integrates existing micro level empirical evidence on the economic and human rights impacts of mncs on developing countries it provides a critical analysis of what is known and highlights what we do not know about the factors that mediate the positive and or negative impacts of mnc operations on host developing countries based on a critical analysis of the literature it discusses avenues for future research in this field and sets the grounds for a new interdisciplinary research agenda on this subject

leading companies and networks of strategic alliances in information technologies abstract strategic alliances joint ventures and a wide array of cooperative r d pacts have received considerable attention in recent years in this paper an attempt is made to understand not only some recent trends in inter firm cooperation in information technologies but also to reveal the role played by a large group of companies the research is based on a large databank with information on thousands of alliances and their participating companies applying a number of statistical techniques it is possible to identify the major players within information technology and its sub fields the analysis enables us to recognize the major international networks of inter firm alliances the changes over time and different positions taken by world leading companies in several industrial and technological settings

scope and patterns of innovation cooperation in spanish service enterprises abstract examining 2148 innovating service firms from the spanish technological innovation panel 2004 this paper utilizes latent class analysis to appraise the scope of innovation cooperation in services in the spanish economy in accordance with the growing weight of external information flows throughout innovation processes the empirical evidence indicates that the nature of the service activity affects both the partner chosen and the cooperation intensity the results lead to the creation of a typology of cooperation composed of three broad profiles service firms intensive in techno scientific cooperation intensive in interactions with clients and a profile with low intensity in cooperation called lonely innovators the probability that a firm belongs to the latter profile is 59 which makes it reasonable to affirm that innovation cooperation is not a common practice in spanish innovating service enterprises innovation output variables have been included in order to examine the relationship between patterns of cooperation and innovation performance the findings also underline the co existence of different cooperation patterns within the same industry

no money no honey financial versus knowledge and demand constraints on innovation the paper adds to the literature on the barriers to innovation in two ways first we assess comparatively what mostly constrains firms ability to translate investment in innovation activity into new products and processes whether it is mainly finance as most of the literature would suggest or whether it is mostly knowledge and market related aspects second we suggest a method to correct for the sample selection bias that often affects empirical contributions to this scholarship by filtering out firms that are not interested in innovation from those that struggle to engage in it we obtain a relevant sample of potential innovators which allows us to analyse the comparative effect of financial and non financial barriers on innovation success we find that demand side factors particularly concentrated market structure and lack of demand are as important as financial constraints in determining firms innovation failures this evidence redirects attention from financial to non financial barriers by considering traditional demand market structure and regulation factors involved in reduced firm innovation performance the empirical analysis is based on an unbalanced panel of firm level data from four waves of the uk community innovation survey cis between 2002 and 2010 merged with data from the uk business structure database

profits r d and innovation a model and a test in this article we investigate both conceptually and empirically the relationships between three interconnected elements of the schumpeterian engine of progress the ability of industries rd the ability of innovations to lead to high entrepreneurial profits the commitment of industries to invest profits in further technological efforts we build a simultaneous three equation model with appropriate lags and we test it at industry level for 38 manufacturing and service sectors on eight european countries over two time periods from 1994 to 2006 the results show that the model effectively accounts for the dynamics of european industries

multinational experience and the creation of linkages with local firms evidence from the electronics industry the paper focuses on the nature and determinants of multinational firms creation of linkages with local firms with specific reference to the electronics industry the study of the recent evolution of international operations in this sector seems to highlight a relevant and somewhat generalisable pattern of industrial organisation and dynamics it is argued that the nature and intensity of multinational companies involvement into linkages with local counterparts are strongly influenced by a combination of factors that are partially inter dependent but still rely on different decision making centres on the one hand host countries long term investment policies in the field of human capital training and accumulation and on the other hand firms decisions to take roots in local contexts through the creation of foreign subsidiaries it is further suggested that human capital and subsidiaries will particularly favour the development of collaborative linkages with local firms compared to previous work of the authors on this subject this paper utilises an expanded and updated data set covering international operations of the top european and us electronics companies over the 1984 1995 period and attempts a more detailed and in depth analysis concerning the nature determinants and evolution in time of international growth strategies

what are the most promising conduits for foreign knowledge inflows innovation networks in the chinese pharmaceutical industry we study innovation networks in emerging markets where foreign actors have been identified as key sources of knowledge spillovers as well as progenitors of industry clusters focusing on connectivity as a channel for international knowledge sourcing we widen our lens beyond mnes to include critical innovative actors such as research institutions i e universities and research centers we examine the geographic dispersion of co inventor networks generated by us patents associated with the chinese pharmaceutical industry previous research has highlighted the role of organizationally driven mne networks as enablers of foreign knowledge inflows to less developed countries however our results emphasize the critical role of individually motivated networks arising from advanced economy research institutions in connecting china to global knowledge networks

an overview of innovation intensity in the indigenous oilfield services firms in nigeria the study examined the types and intensity of innovations in the indigenous nigeria s oil and gas servicing sub sector the study used primary and secondary data sources 100 firms were purposefully selected and sampled focusing on the period between 2001 and 2010 a total of 400 questionnaires were ad min istered of wh ich 70 were returned and found suitable for analysis the responses were aggregated such that the unit of analysis was the firm secondary data were sourced fro m the internet and other published sources the data so obtained were analy zed using descriptive and inferential statistics of the 4 types of innovation that the study examined o rganizat ional innovation was the most prevalent 46 while diffusion based innovation was least 10 product and process innovations were implemented respectively by 17 and 22 of the firms innovation intensity was lo w only two patents were granted to the firms within the period 2007 2010 level of organizat ional learning was lo w the nu mber of r d staff was low while the impact of innovation on firms performance was expressed in increase in profit process improvement and new product development in conclusion our study found out that the overall innovation capability of the firms was expressed in organizational innovations

uneven and combined development understanding india s software exports abstract the evolution of the indian software sector is explained by the larger context of uneven and combined development the imperatives of a market driven global order suggest an open ended process of development making some economic and technological convergence realizable but also generating contradictions at various levels this paper focuses on differential innovative capability the uneven diffusion of technical education in india and the increasing economic integration of the software industry as sources of uneven development the combined nature of the development process is reflected in the coexistence of the successful software sector with several lagging sectors with all of them being functionally integrated as part of indian social formation to cope with the contradictions of such change a balanced development will be critical to make development more inclusive deep structural problems that plague those outside the orbit of the successful software industry must be resolved

latecomer firm strategies in complex product systems cops the case of iran s thermal electricity generation systems this paper examines the strategies of a local supplier of high technology capital goods or complex product systems cops in a middle income developing economy iran in its efforts to acquire technology and catch up with market leaders the study draws upon both the development and business strategy literatures to develop a novel conceptual framework of latecomer strategy which is then applied to the iranian firm engaged in the design production and implementation of electricity generation systems although exploratory the study shows that the firm was able to exploit its linkages with local clients favorable government policies and a growing domestic demand to overcome barriers to entry and learn how to manufacture and design complex power generation systems this paper contributes to the catch up literature by highlighting the insights that a latecomer strategy perspective can provide into catch up in cops noting in particular differences between strategies of catch up in the iranian case with those of asian electronics and complex goods in latin america and the reasons behind an imbalanced progress in accumulation of production capabilities and technological change capabilities the evidence shows the importance of marketing capabilities and strategy in cops in order for the transition to leadership to take place implications for policy and strategy are discussed and opportunities for further research are outlined

public policies and the art of catching up matching the historical evidence with a multicountry agent based model in this paper we study the effects of industrial policies on international convergence using a multi country agent based model which builds upon dosi et al 2019b the model features a group of microfounded economies with evolving industries populated by heterogeneous firms that compete in international markets in each country technological change is driven by firms activities of search and innovation while aggregate demand formation and distribution follows keynesian dynamics interactions among countries take place via trade flows and international technological imitation we employ the model to assess the different strategies that laggard countries can adopt to catch up with leaders market friendly policies industrial policies targeting the development of firms capabilities and rd protectionist policies focusing on tariffs only we find that markets cannot do the magic in absence of government interventions laggards will continue to fall behind on the contrary industrial policies can successfully drive international convergence among leaders and laggards while protectionism alone is not necessary to support catching up and countries get stuck in a sort of middle income trap finally in a global trade war where developed economies impose retaliatory tariffs both laggards and leaders are worse off and world productivity growth slows down

accounting for innovation and measuring innovativeness an illustrative framework and an application the purpose of this paper is to propose and illustrate an accounting framework for innovation we characterize the intensity of innovation by a sales weighted measure of innovation the share of sales in innovative products but other output indicators of innovation could be considered as well comparing statistics on the share of innovative sales across countries industries or firms measures but does not explain the intercountry interindustry or interfirm differences in innovation intensity to have a more meaningful basis of comparison we need a model if an exact model of innovation in its various dimensions existed and if we knew it we would be able to understand fully why innovation differs among countries industries or firms of course such a model does not exist nevertheless it is worth trying to account for innovation differences if only very roughly in such an endeavor what remains to be explained is as important to consider as what can be explained because it reflects the extent of innovative ability or capacity or innovativeness to motivate our approach better and make it more explicit we find it appealing to draw a comparison with the standard framework for growth accounting and the underlying model of a production function production output is viewed as resulting from a process of transformation of inputs into output that can be represented and analyzed in terms of a production function based on the production function an accounting framework can be constructed in which changes in output between periods years decades or differences between spatial units firms industries countries are ascribed to changes or differences in the inputs and in a residual that is known as total factor or multifactor productivity tfp or mfp or simply productivity likewise innovation output can be viewed as resulting from innovation inputs such as r d efforts and other contextual determinants such as the pressure of competition this linkage can be represented in terms of an innovation function and an innovation accounting framework on the basis of which changes in innovation output between periods or differences between spatial units can be ascribed to changes or differences in the factors of innovation and in a residual that we call innovativeness or the unexplained ability to turn innovation inputs into innovation output innovativeness is thus to innovation what tfp is to production innovativeness is conditional on a model of an innovation function and a set of factors of innovation just as tfp is conditional on an assumed specification of the production function and measured factors of production both correspond to omitted factors of performance such as technological organizational cultural or environmental factors and to other sources of misspecification errors although tfp is commonly interpreted as being mainly an indicator of technology the produc

industrial policy changes and firm level technological capability development evidence from northern brazil summary much has been written about the impacts of the policy changes of the 1990s on industrial performance particularly in latin america most of the studies are based on aggregated analyses that argue for or against such reforms in the policy regime this study offers an alternative view to this debate based on a longitudinal empirical scrutiny of technological capability development in 46 local and foreign firms from three sectors in northern brazil there were inter sector and inter firm variations in terms of the manner and rate of capability development for specific technical functions overall the patterns of firm level capability development exhibited a positive response to the structural reforms but such responses were not a mere consequence of trade openness a combination of government policy foreign competition and intra firm capability building efforts proved essential for speeding up capability development in some of the sampled firms thus policies for accelerating industrial technological capability development in a developing area such as the one examined here would involve not only macro level incentives and competition but very importantly measures that facilitate intra firm capability building efforts

linking the technological regime to the technological catch up analyzing korea and taiwan using the us patent data this article examines the relationship between the technological regime and the technological catch up using us patent data this study first extends the notion of technological regimes as more appropriate for the catching up context before it goes on to develop the quantitative expressions of technological regime variables then it investigates in which technological classes technological catch up tends either to occur or not to occur and what affects the speed of the catch up this study has found that catching up is more likely to happen in those technological classes with shorter technological cycle time and more initial stock of knowledge and that among those candidate classes the actual speed of catch up varies depending on appropriability and knowledge accessibility this implies that the factors that determine the occurrence of catch up and the speed of catch up are different comparing the level of technological capability of the advanced and catching up economies the article has found that catching up countries tend to achieve high levels in the technological sectors with shorter cycle time easier access to knowledge and higher appropriability whereas the advanced countries show the exactly opposite performances the study also confirms the organizational selection hypothesis such that the firms of different organizations and strategies show divergent degrees of fitness in the different environment or technological regime we find that the korean firms find themselves more fitted to technological regimes featured by low appropriability and high cumulativeness persistence whereas the taiwanese firms are more fitted to technological regimes featured by high appropriability and low cumulativeness persistence our findings are consistent with the following characterization of the firms in korea and taiwan the korean firms dominated by the so called chaebols especially in patent registrations are characterized as less flexible large diversified conglomerates and pursing more independent r d and learning strategies the taiwanese firms are characterized as more flexible network based specialized firms and pursuing more cooperative r d and learning strategies copyright 2006 oxford university press

creative adaptation the role of new technology based firms in portugal this paper reviews two recent research studies on portuguese new technology based firms ntbfs attention is given to the role and contribution of ntbfs to innovation the main argument is that by and large ntbfs are less concerned with the introduction of major innovations and more with creative adaptive improvements to products and services based upon new technologies first introduced elsewhere the empirical research found that portuguese ntbfs are a recent phenomenon associated with diffusion of electronics and information technologies eit during the late 1980s they perform a wide variety of knowledge intensive activities which enhance local users adoption processes and they are associated with different forms of technology transfer through external linkages overall ntbfs undertake a frequently unobserved role as technology searchers and acquirers that pushed by idiosyncratic local niche market opportunities selectively choose among and enhance technologies developed elsewhere introducing them into the local market

a technology gap approach to why growth rates differ abstract this paper contains a discussion and test of the technology gap approach to development and growth the basic hypotheses of the theory are tested on pooled cross sectional and time series data for 25 industrial countries for the period 1960 1983 the sample includes in addition to 19 oecd countries 6 of the most important industrial economies from the non oecd area the findings of the paper confirm that there exists a close correlation between the level of economic development measured as gdp per capita and the level of technological development measured through r d or patent statistics furthermore for the group of 25 countries as a whole technology gap models of economic growth are found to explain a large part of the actual differences in growth rates both between countries and periods as expected both the scope for imitation growth in innovative activity and efforts to narrow the gap investment appear as powerful explanatory factors of economic growth however when the non oecd countries and later usa and japan are removed from the sample the explanatory power of the technology variables especially growth in innovative activity diminishes

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

interactive innovation in financial and business services the vanguard of the service revolution abstract the concept of the reverse product cycle as a theoretical model of innovation in services is developed further in this paper using the vanguard sector of financial and business services as a case study example of how innovation operates as an interactive process the parallels between the emerging service revolution and the nineteenth century industrial revolution are explored in order to identify the key characteristics of the vanguard sectors in each technological revolution the particular nature of the new techno economic paradigm based on information technology is then identified leading to a discussion of the unique conjunction of factors favouring financial and business services as the vanguard sector of the service revolution the central part of the paper then offers an elaboration of the reverse product cycle model stressing the interactive nature of the innovation process as it reflects the prevailing technological opportunities market conditions and industry structures within the adopting sector the example of retail banking is used to illustrate how the innovation cycle proceeds from increases in efficiency through improvements in service quality to the generation of new network service products there is then a discussion of the question of the optimal industry structure for innovation suggestion that in the reverse product cycle large corporations are likely to dominate the early stage of incremental process innovations whereas later in the cycle there is an important role for small entrepreneurial firms to advance more radical process and product innovations the concluding section summarises six major characteristics of the service revolution and suggests how it may proceed from its first to its second phase as the focus of innovation shifts from the vanguard sector of financial and business services to a much broader range of higher level knowledge based services many of which are currently delivered by the public sector

determinants of the adoption of information technology a case study of electrical and electronic goods manufacturing firms in india abstract this study measures the intensity of adoption of information technology it and identifies its determinants in this paper it is argued that the degree of it adoption will be determined by the variables such as entrepreneurship skill intensity government policy openness of economy competitive environment and other firm specific factors the results of ordered probit model suggest that the qualification and information base of entrepreneurs and their attitude towards innovative activities and market share are significant determinants of the degree of it adoption the results also indicate that size of operations and skill intensity of the firms influenced the extent of it use

differences in the rates of return to r d for european and us young leading r d firms this paper examines the sources of europe s lagging business r d performance relative to the us particularly the role played by missing young leading innovators in high technology intensive sectors in europe it investigates through econometric analysis differences in the rates of return to r d of european and us large r d firms it finds that while in the us young firms succeed in realizing significantly higher rates of return to r d as compared to their older counterparts including in high tech sectors european firms fail to generate significant rates of return even if they are yollies and even if they are in high tech sectors these findings can at least partly explain why europe has less r d intensive young leading innovators in high technology intensive sectors

the patterns of technological capabilities of countries a dual approach using composite indicators and data envelopment analysis this study explores the patterns of technological capabilities for a sample of 42 countries over the period 1995 2007 introducing a novel methodological approach we exploit duality between data envelopment analysis and composite indicators to address the inconsistency between the two methodologies the empirical findings point to the end of the hegemony of north america western europe and japan showing that a process of convergence in technological capabilities has occurred limited to the 42 countries included in this study based on our methodology a classification is provided highlighting differences in the patterns of technological capabilities of countries

learning and catching up in different sectoral systems evidence from six industries this article claims that catching up is a learning process that requires a long time and often differs significantly across economic sectors in the factors leading to success or failure we support these claims by examining the major factors affecting catching up by several countries in six industries india and brazil for pharmaceuticals korea china and brazil for autos india ireland israel china brazil and other countries for software korea and india for telecommunication equipment korea taiwan china and malaysia for semiconductors and china brazil costa rica and nigeria for some agricultural crops the article uses the framework of sectoral systems and argues that there are significant differences across these sectors in the variables and mechanisms involved in catching up the article identifies the common factors affecting catching up and the main differences across sectoral systems it then discusses the interplay between national systems and sectoral systems copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

managing technological development lessons from the newly industrializing countries this survey looks at the technological development of the newly industrializing countries to draw some important lessons for firms and governments in other developing countries first inventing products and processes is not at the center of the technological development needed for successful industrialization it is at the fringe what is at the center is acquiring the capabilities needed for efficient production and investment second some countries have overemphasized the drive for technological self sufficiency and paid a high price in poor productivity what makes the best economic sense is to combine foreign and local technological elements and to do this in a way that progressively develops local capabilities in areas where they can be more efficient third the acquisition of technological capability does not come merely from experience though experience is important fourth the economic environment through its influence on the technological efforts of firms is very important in determining the productivity of a country s resources

do patent rights matter 40 years of innovation complexity and productivity abstract does the rigorous protection of patents advance or retard economic development two decades ago a new global standard of intellectual property swept across developing and industrialized nations through the implementation of the wto s trips agreement many years later the issue of patent rights remains contentious in this paper we focus on the effects of patent rights systems on total factor productivity growth using dynamic panel regression analysis for 70 countries from 1965 to 2009 we show that the effects of stronger or more rigorous patent systems are insignificant for productivity growth in both developing and industrialized countries why does the strength of patents appear to have no impact on productivity classic economic theory suggests that stronger patent systems incentive innovative output with important spill over effects for productivity and growth we offer an alternative explanation using data from the economic complexity index we find that while patents rights are increasingly irrelevant to productivity the relationship between economic complexity and productivity is highly positive and significant our results are consistent with the contributions of the absorptive capacity theory in that they suggest it is not the discovery and ownership of novel products and processes at the innovative frontier that induces productive growth but the ability to adapt replicate and diffuse along the international productive chain

the roles of science in technological innovation abstract one of the central issues in science policy during the past decade has been the extent to which the national levels of expenditure on scientific education and research influence the standard of living this paper provides empirical evidence to show that the pay off from this investment in science is more complex and indirect than previously supposed

accessing vs sourcing knowledge a comparative study of r d internationalization between emerging and advanced economy firms research and development r d internationalization is on the rise for advanced economy multinationals amnes as well as emerging economy multinationals emnes we study emne r d internationalization by comparing it to that by amnes in the context of an emerging knowledge intensive industry we find that these two are fundamentally different processes while the internationalization of amnes r d activities can largely be explained in terms of the twin strategies of competence exploitation and competence creation emne r d internationalization is rooted in the firms overall catch up strategy to get on par with industry leaders an in depth comparison of knowledge flows reveals that within amnes headquarters often serves the primary source of knowledge for r d subsidiaries in contrast within emnes headquarters accesses knowledge from r d subsidiaries in advanced economies for innovation catch up within this dichotomy the innovative capabilities of emne headquarters develop more slowly and with greater difficulty than those of amne subsidiaries

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

continental national and sub national innovation systems complementarity and economic growth the purpose of this paper is to discuss the relevance of innovation systems to economic growth rates over the last two centuries the focus is on complementarity or lack of it between sub systems of society and on models of active learning in catching up economies the paper discusses variations in rates of growth of economic regions and the extent to which variations may be attributed to innovation systems the analysis is applied to britain in the 18th century the united states in the second half of the 19th century and the innovation systems of catching up countries in the 20th century

crossing the innovation threshold through mergers and acquisitions firms are resorting more and more to mergers and acquisitions m a to bridge the gap between where they are and where they would like to be in relation to innovation and performance this paper investigates whether involvement in m a triggers distinct patterns of innovative behaviour across firms and whether this effect is conditional on firm size the analysis combines data from four waves of the community innovation survey cis and the business register of dutch manufacturing firms we observe that m as influence the probability that firms will begin innovation activities or persist with them and these effects vary at different points in the firm size distribution in particular by using m a firms are able to persist with the innovation efforts and output over time and this effect is especially strong for large firms for small firms m a help them to cross the innovation threshold increasing the probability of the transition from a non innovator to an active innovator however the m a effect does not mitigate the tendency of small firms to be occasional innovators

the organization of innovation in a transitional economy business and government in chinese electronic publishing abstract the national innovation system that emerged in china in the 1990s integrates government science and technology efforts typically through the intermediation of public research institutes with the business activities of industrial enterprises in illustrating the institutional and organizational characteristics of this innovation system the case study of founder group world leader in pictographic language electronic publishing systems demonstrates both the strategic role of the state in the process of change and the increasing importance for economic success of the integration of investment strategy and organizational learning in industrial enteprises that compete for domestic and global markets

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