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The European software sectoral system of innovation
Abstract
Introduction: The global software industry is young, large and very dynamic (Mowery, 1996). Markets for software as a commodity independent of computer systems have been established for little more than three decades, while a vast amount of software continues to be produced by firms to meet their own specialized information processing requirements. Revenues from software sales to European companies and individuals amounted to approximately €47.9 billion in 2000 and are expected to continue to grow at double-digit percentage rates in the near future (European Information Technology Observatory [EITO], 2001). At least 2 million European workers (1.35 percent of the European Union labor force) are directly engaged in the production of software as part of their direct job responsibilities. Software is the collection of instructions that computers follow in executing the tasks of acquiring, storing and processing data and exchanging them with their human operators, as well as the guides and reference information that humans need to specify what can be, should be or is done in these processes. Like food, software can be pre-packaged, constructed from ingredients or served where it is consumed. When it is pre-packaged it is reasonable to think of it as a product, and when it is produced “to order” it may be thought of as a service. The nature of the market for software creation and exchange activities, and the technologies supporting these activities, are shaped by three fundamental issues: the nature of software as an economic commodity; the historical patterns of the division of labor involved in software creation; and distinctions in the design and use of software that define the nature of software markets. © Cambridge University Press, 2004 and Cambridge University Press, 2009.
... Third, the further upsurge of personal computers that brought about a dramatic expansion in the use of computers that went far beyond large firms and government agencies. All these phenomena took place between the late 1960s and late 1970s, permitting the emergence of independent software vendors (Steinmueller 1996(Steinmueller , 2004. ...
... European firms have only been successful in custom and service software, with few reaching the select club of the world leaders (e.g. SAP) (Steinmueller 2004;Malerba and Torrisi 1996). ...
... Moreover, the latter firms take the initiative to develop applications that they try to sell to their customers, with whom they maintain strong interconnections. This case of embedded software is a good example of both the existing division of labour in some software segments (Steinmueller 2004) and the strong interactions between independent software producers and their customers. In this segment, customization, technological complexity and turbulence and the relevance of tacit knowledge (common to the whole software sector according to Grimaldi and Torrisi 2001) underpin the emergence and expansion of networks linking different types of company from distinct sectors. ...
... El software es una colección de instrucciones que siguen las computadoras en la ejecución de tareas de adquisición, almacenamiento, procesamiento e intercambio de datos con sus operadores humanos, así como las guías e información que éstos necesitan para especificar lo que puede, debe o se hace en el proceso (Steinmueller, 2004). ...
... 3) El desarrollo de tecnologías "emergentes" como la Web y el DVD, asimismo, han venido a redimensionar el sector (Steinmueller, 2004), lo que genera impactos en la lógica del modelo de negocio de las empresas, que se manifiesta en la transición de la oferta de software: de venderlo como producto a venderlo como servicio. 4) Por sus características de diseño, el software condiciona la posibilidad de integración horizontal o vertical, lo que tiene implicaciones sobre la dimensión y la especialización del mercado objetivo de las empresas. ...
... Software como producto y como servicio. Por la forma en que se ofrece al mercado, el software se comercializa como producto o servicio: como producto cuando es empaquetado, es decir, cuando se construye a partir de ciertos ingredientes para ser consumido (Steinmueller, 2004); se diseña para mercados masivos de usuarios finales u organizacionales (Aramand, 2008). ...
... In its early stage, the history of software was shaped by that of the computer business. The creation of an independent software industry is generally attributable to both the evolution and strategies of the computer manufacturers and to the further upsurge of personal computers (Steinmueller, 1996(Steinmueller, , 2004, which led to the emergence of a vast packaged software segment comprising large specialised corporations, and coexisting with a renewed segment of custom and service software companies (Cloodt et al., 2010). A number of authors have observed that a technological convergence between computers, software and telecommunications has been taking place over recent decades, giving rise to completely new categories of innovation and new forms of relationship between the three fields (Cloodt et al., 2010). ...
... In short, software is a diversified and mature industry; it encompasses segments (Lippoldt and Stryszowski, 2009) with various degrees of technological sophistication and reliance on scientific advances (Steinmueller, 2004) but a general dependence from universities for highly skilled human resources. Thus, we may define it as a technology-intensive sector relying on a complex and diversified knowledge base, but where tacit knowledge appears to be much more relevant than in most biotechnology activities (Grimaldi and Torrisi, 2001;Aramand, 2008). ...
... Software appears to be less typical of one particular knowledge base (and it was not specifically addressed by the empirical research conducted by these authors). However, the evidence available on the mode of knowledge creation in this sector (Steinmueller, 2004;Lippoldt and Stryszowski, 2009) points to a predominance of a synthetic knowledge base, though it may be possible to identify some traits of an analytical knowledge base in a more science-based sub-set. ...
... It has been observed that the availability of skilful human capital creates a base for development of IT industries by latecomer countries. The software industry is, in principle, a low-capital but knowledge and skill-intensive industry, and the international market for software is big and growing (OECD 2004;Steinmueller 2004). Due to their higher contribution to economic growth the development of software and other high-tech industries has a potential to foster economic development in latecomers (Kuznets 1957). ...
... Due to their higher contribution to economic growth the development of software and other high-tech industries has a potential to foster economic development in latecomers (Kuznets 1957). For the above reasons, the discussion about developing indigenous software industries in the latecomer context has gained particular attention both in academic and policy literature for more than a decade (OECD 2004;Soete 1985;Steinmueller 2004;UNIDO 1988). ...
Software development activities have been identified as a 'window of opportunity' for latecomer companies. Notwithstanding the growth of software development activities in the latecomers, there are single exceptional cases of companies that have successfully launched their own products in global software markets. This suggests that most of the latecomer software companies possess limited technological capabilities. This point has not been explored systematically in the literature so far, as the critical literature review reveals. This paper develops an approach for analysing technological capabilities in latecomer software industries. It outlines the specifics in analysing technological capability in latecomer software companies and makes an account of the array of technical and organisational capabilities associated with development of software technological capability. The research also looks at the diverse learning paths pursued by the latecomer companies in developing software activities. The study improves our understanding about the complexity in developing software industries in latecomer context, and the challenges the latecomer companies face in entering and competing in international markets.
... The fragmentation of the European market is an issue for both, users as well as providers of Cloud Computing. Nevertheless, in the past the discussion on the fragmentation often focussed on the disadvantages for the competitiveness of the European providers (Aumasson et al. 2010, 218-226;Mowery 1996;Steinmueller 2004). Despite of that it is also an issue for customers, business user as well as consumers, because it also relate to issues like the fragmentation of the regulatory framework. ...
... Esta innovación industria. Las empresas encargadas en desarrollo de tecnología utilizan una metodología que se impone a necesidades culturales o el ser humano (Steinmueller, 2004) Debemos entender que el desarrollo de tecnología y de software se fundamenta en la propia administración de un proyecto, un proyecto que conlleva fases que a su vez favorece e incrementa la positivos en el desarrollo económico de una región. El mayor problema que presenta Chihuahua por parte del desarrollo de software es que no se satisfacen las necesidades y no se alcanzan a cumplir los objetivos de sus clientes. ...
Creación de una red universitaria fundamentado en un esquema de clúster de base tecnológica para el desarrollo de software en el Estado de Chihuahua, México. RESUMEN EJECUTIVO: El presente articulo tiene como finalidad demostrar la necesidad que el Estado de Chihuahua presenta en cuanto a la diversificación en la base de sus principales actividades económicas, logrando formular y otorgar el sustento para potencializar las capacidades para desarrollar un clúster de base tecnológica postulado en diferentes municipios del mismo Estado. Esto anterior ante la creación de software especializado basado en clúster que otorgue el fundamento y factibilidad de manera integral en los municipios del Estado de Chihuahua, logrando frenar la fuga de capital humano y potencializar el desarrollo económico. Consolidar este clúster en una herramienta que ayude a la creación de políticas públicas que favorezcan al escenario casi inexistente o aislado de desarrollo de software en el Estado de Chihuahua. Así mismo, que garantice el desarrollo económico y empresarial con base tecnológica en la región, el desenvolvimiento empresarial, social y vinculación en estas ciudades mediante el desarrollo y creación de software. ABSTRACT: The present article aims to demonstrate the need for Chihuahua State presents in terms of diversification on the basis of their main economic activities, formulate and provide sustenance to enhance capabilities for develop a cluster of core tech postulated in different municipalities in the same State. This previous to the creation of specialized software based on cluster that provides the rationale and feasibility in a comprehensive way in the municipalities of the State of Chihuahua, managing to stop the flight of human capital and promote economic development. Consolidate this cluster into a tool that will help the creation of public policies that favour the stage almost non-existent or isolated in software development in the State of Chihuahua. In addition, to ensure the economic and business development with a technological base in the region, business, social development and bonding in these cities through the development and creation of software. Palabras clave: Red universitaria, Clúster, Software especializado, desarrollo económico, vinculación, empresas de base tecnológica.
... The fragmentation of the European market is an issue for both, users as well as providers of Cloud Computing. Nevertheless, in the past the discussion on the fragmentation often focussed on the disadvantages for the competitiveness of the European providers (Aumasson et al. 2010, 218-226;Mowery 1996;Steinmueller 2004). Despite of that it is also an issue for customers, business user as well as consumers, because it also relate to issues like the fragmentation of the regulatory framework. ...
... Las actividades de software y servicios de ti son consideradas estratégicas para el desarrollo económico y social, ya que son transversales y, por lo tanto, permean todas las actividades y cadenas de valor de otros sectores (Steinmueller, 2004;Diegues, 2010). Como consecuencia, los avances técnicos y científicos e incrementos de productividad en esta industria tendrían gran potencial de expandirse hacia otros sectores de la economía nacional, garantizando la innovación en la industria de software y servicios de ti con un efecto multiplicador e importancia estratégica para el desarrollo económico y social del país (Schware, 1992;Tessler, Barr y Hanna, 2003;Sein y Harindranath, 2004;mcti, 2012b). ...
The paper analyzes, from a historical perspective, conditions and characteristics of Brazilian’s software and IT services policy from the military governments to the recent period, trying to understand its conformation and connection to the industrial and science and technology policies and its participating actors. Through literature review, it was observed that, during the military period, the instruments and objectives of an industrial policy was prevalent in information technology policy. The software policy and IT services in the 1990s prioritized external competitiveness and export of private enterprises. In the 2000s, except for two programs, the policy had general support measures for R&D in enterprises and university-industry relationship. Recently, the IT Maior Program was created, focusing on software and IT services industry, with S&T policy features and integrated with industrial policy instruments.
... Las actividades de software y servicios de ti son consideradas estratégicas para el desarrollo económico y social, ya que son transversales y, por lo tanto, permean todas las actividades y cadenas de valor de otros sectores (Steinmueller, 2004;Diegues, 2010). Como consecuencia, los avances técnicos y científicos e incrementos de productividad en esta industria tendrían gran potencial de expandirse hacia otros sectores de la economía nacional, garantizando la innovación en la industria de software y servicios de ti con un efecto multiplicador e importancia estratégica para el desarrollo económico y social del país (Schware, 1992;Tessler, Barr y Hanna, 2003;Sein y Harindranath, 2004;mcti, 2012b). ...
El presente trabajo es un análisis, desde una perspectiva histórica, de condicionantes y características de la política brasileña de software y de servicios de TI desde la dictadura militar hasta el periodo reciente, buscando comprender su conformación y relación con las políticas industrial y de ciencia y tecnología y los actores participantes. A través de la revisión bibliográfica se observó que, en el periodo militar el carácter de política industrial fue predominante en la política de informática. La política de software y servicios de ti, en la década de los años noventa dio prioridad a la competitividad externa y a las exportaciones de empresas privadas. En la década del 2000, salvo por dos programas, la política contó con medidas genéricas de apoyo al P&D en las empresas y la relación universidad-empresa. Recientemente fue creado el Programa TI Maior, dirigido a la industria de software y servicios de ti, con características de política de C&T e integrada a instrumentos de política industrial.
... Studies in the field of SI research do often conclude with 'policy recommendations' after a thorough analysis (e. g. Steinmueller 2004). This may be a result of the research tradition in the field's dominating disciplines like policy research. ...
For more than 20 years, interdisciplinary innovation research utilizes systems of innovation (SI) as a valuable core concept for analyzing innovation phenomena at large scale. Until today, this concept has not been referred to widely in information systems (IS) research. In this paper, we argue that SI may serve as a useful study subject for IS research. For analyzing and intervening into systems of IT innovation, a conceptual and methodological foundation is required. Therefore, we developed the outline of a conceptual and a methodological research framework. This framework has initially been used in a research project on the system of IT innovation for hospitals in Germany. Insights from this study were used to further improve the framework.
... Actually, a specialised supplier model seems to coexist with a complex knowledge based one, with similarities with the science-based regime. In fact, it is a diversified industry, encompassing segments (Lippoldt and Stryzowski, 2009) with various degrees of technological sophistication and reliance on scientific advances (Steinmueller, 2004). Thus, we may define software as a technology intensive sector relying on a complex and diversified knowledge base, but where tacitness appears as more relevant than in most biotechnology activities (Grimaldi and Torrisi, 2001;Aramand, 2008). ...
This paper addresses the role of networks in the organisation of two different knowledge intensive sectors - biotechnology and software. Its main aim is to identify and explain the differences in the architecture of thenetworks, formal and informal, mobilised to access resources and competences by young entrepreneurial firms in those two sectors in Portugal. Then it discusses the diversity of the actual network topologies in the light of their contribution to the organisation of those sectors, taking into account their specific environment. For this purpose, it applies a methodology that permits to assemble a vast array of data capturing the nature and contents of the range of relationships through which key innovation resources flow into the firms. The results show that, when a detailed analysis is carried out, significant inter-sectoral differences emerge, both in the network diagrams and in the measures of composition and structure. We argue that those different topologies make sense regarding the empirical literature and shed light on the specific organisation of the sectors, with their strengths, weaknesses and policy-driven influences.
... The international software industry is highly concentrated, especially in the development of packaged and platform applications, which mainly is dominated by US software suppliers (Steinmueller, 2004). Most software firms innovate by differentiating and customising their products to particular application contexts, which often involves close relationships with customers (users). ...
This article addresses network alignment through an investigation of network governance (coordination) and structure, and examines how regional level network governance and structure influence the effectiveness of technology policy to improve local firms’ innovativeness in a developing country context. It examines whether network governance and structure have a consistent influence on firms’ innovative performance in developing country regions with different levels of socio-economic development. The empirical evidence is based on case studies of the Campinas and Recife regional software networks in Brazil and the innovative performance of the participating local firms. We find that adoption of a general technology policy prescription and formation of networks to improve firm-level innovation and regional catch-up should involve careful consideration of the intended effects: membership of a network may not be a necessary condition for improved innovation at firm level.
... Second, using the fine-grained approach presented, we found that knowledge networks, taken as isolates, are by far the major source of differentiation, since complementary assets networks have very few significant differences. This corroborates Proposition 2. Third, our results show that the access to scientific and technological knowledge appears to be crucial to achieve the most sophisticated innovation in software, an industry that is not usually regarded as science-dependent (Grimaldi and Torrisi, 2001;Steinmueller, 2004;Lippoldt and Stryszowski, 2009). Fourth, the results reveal diversity in geographical patterns of resource access. ...
Abstract: In this paper we deal with the innovation strategies of software for
telecommunications companies that develop innovative products through the
creation, use and adaptation of various resources. In addition to in-house
capabilities and resources, they resort to external sources via market and
non-market transactions. We will focus on non-market exchanges, namely
networks. The main goal is to determine if different innovation strategies
(mostly radical versus mostly incremental) are associated with distinct
networking strategies. With this aim, we adopted a specific analysis of
innovation networks, which deals separately with the two main types of
resource: knowledge and complementary assets. Results reveal that there are
clear-cut differences in the network configurations of radical versus
incremental innovators, particularly in the access to knowledge. They also give
support to the adequacy of using a fine-grained analysis. These findings can
therefore add to the debate on the most favourable networking strategies for
innovation.
Keywords: innovation networks; innovation strategies; radical innovation;
incremental innovation; network configurations; software sector; geographic
patterns of networking; local inter-organisational networking; international
inter-organisational networking; knowledge-intensive services
... The sectoral system of innovation in software, however, is incomplete without the addition of companies that utilize these platforms to deliver enterprise-critical applications. Many of these applications continue to be -produced in-house by organizations using the tools provided as part of the platform or available from the development tools markets (Steinmueller, 2004). ...
... The fragmentation of the European market is an issue for both, users as well as providers of Cloud Computing. Nevertheless, in the past the discussion on the fragmentation often focussed on the disadvantages for the competitiveness of the European providers (Aumasson et al. 2010, 218-226;Mowery 1996;Steinmueller 2004). Despite of that it is also an issue for customers, business user as well as consumers, because it also relate to issues like the fragmentation of the regulatory framework. ...
Cloud Computing and Social Network Sites (SNS) are among the most controversially discussed
developments in recent years. The opportunities of using powerful computing resources on demand via
the web are considered as a possible driver for the growth of the European economy. However, there are
also critics arguing that economic, social and technical risks prevail or even dismiss the potentials of
Cloud Computing and SNS. This project sheds light on these aspects and analysed more specifically, the
latest technological and economic developments, driving factors and barriers in Europe, the main actors
and their respective interests, the impacts on citizens, business and public administrations and, a broad
range of technical, economic, cultural, legal, regulatory issues and their impacts. It showed that at the
moment, there is a chance to achieve multiple Cloud Computing and SNS related goals simultaneously.
There are no contradictions between assuring European citizens, secure, privacy aware, legally certain
and fair use of Cloud Computing and SNS and in increasing the competitiveness of European ICT
industries. Moreover it is possible to exploit the potential of Cloud Computing and SNS to the benefit of
both the European economy and society at large. Based on this a set of options for European policy
makers grouped into four themes with in total 16 options was derived.
Make security a commodity
1. Support the development of open and secure software and hardware and encryption methods.
2. Encourage the use of checklists and security certifications.
3. Assess the economic viability of large hardware security modules.
4. Initiate a dialogue on the structure and governance of the Future Internet.
Establish privacy as a location advantage
5. Proceed with the modernization of data protection.
6. Establish the principles of security and privacy by design.
7. Support the creation of a European Data Protection Board.
8. Ensure the extraterritorial application of European data protection law.
Build a trustworthy environment for digital business and living
9. Stipulate the setting of minimum requirements for contracts.
10. Support the standardization of Acceptable Use Policies and Service Level Agreements.
11. Eliminate jurisdictional uncertainty.
12. Support the development of Cloud specific certifications.
Create an inspiring ecosystem for ICT industries
13. Encourage the creation of European market players.
14. Support standardization and interoperability.
15. Empower people across all strata of society.
16. Reconsider current broadband strategies
... Infelizmente, esses mecanismos não operam com o devido grau de confiança ou estabilidade na indústria de software, pois suas contribuições são episódicas ou transitórias. Isso sugeriria que esta indústria é um sistema setorial de inovação incoerente, porém, na verdade, sua estrutura sendo bem delineada, trará uma significativa reorganização da divisão do trabalho inovativo na produção de software (Steinmueller, 2001 ). Neste sentido, a partir da idéia dos SSI e lembrando que a divisão de trabalho na indústria de software dá-se de forma hierarquizada, setorial e internacionalmente , a produção de software torna-se fundamental para que um país possa estimular a competitividade de suas empresas e construir uma capacitação tecnológica com o desenvolvimento de sistemas de informação adequados às necessidades das empresas locais. ...
There is no doubt that one of the great difficulties of the innovative processin Brazilian software companies is, at least for the time being, their little articulationability with each other, as well as with research and technological developmentcenters and with the several sectors for which it would have the possibility toaccomplish its informational projects. Here, it will be analyzed a software segmentapplied to the construction industry, historically averse to the innovation, provingthat ITs (Information Technologies) are diffusing thoroughly even in traditionalsectors, serving not only as administrative support but also as a strategic tool in thecompanies. Moreover, and, mainly, the study intends to exemplify that typicalcharacteristics of the software are valid even for traditional sectors with almost“craft” processes, and influence the sector competitiveness both national and internationally.Among those software sector characteristics it emphasizes its “transverse”character and its importance in the innovation policies regarding to theother economic sectors.
... It has been stressed that the availability of skilful human capital creates a solid base for development of an IT industry by the latecomers. The software industry is, in principle, low-capital but knowledge and skill-intensive industry, and the international market for software is big and growing (OECD, 2004; Steinmueller, 2004). Further, the software industry possesses a potential to generate high rates of growth and spur economic development in the latecomers (Kuznets, 1957). ...
Little is known about the potential of indigenous software activities in CEE countries. The paper outlines positive developments and challenges before indigenous software activities and disentangles the variety of factors influencing development of indigenous software industries in Bulgaria and with a reference to CEE. Based on a survey data about capabilities accumulation in the Bulgarian software companies and further analysis of the external factors influencing development of indigenous software industries, the study identifies a new phase of development in the indigenous software industries in CEE and highlights areas for policy considerations. 1.
Many scholars have studied various sectoral innovation systems that are categorized as mass-produced goods, whereas there are only a few previous studies that have investigated complex product systems (CoPS). CoPS are defined as high-cost, engineering, and software-intensive goods, systems, networks, infrastructure, engineering constructs, and services. However, many differences between these two categories of industries have been reported by a large number of scholars. To address this shortcoming, this paper intends to study the evolution of Iran’s gas turbine sectoral innovation system as a CoPS industry. To this end, a qualitative approach and a case study research design were employed. To do this, we conducted 17 in-depth interviews, participated in different conferences and conventions, as well as studied various documents as secondary data. Our findings suggest that: firstly, technological capabilities in Iranian gas turbine producers have evolved from assembling to manufacturing, and re-designing existing gas turbines; Secondly, diverse and dynamic governmental policies associated with the gas turbine industry over the last two decades have played a key role in encouraging domestic firms to acquire technological capabilities; and thirdly, the large and growing domestic market not only justified investing in R&D and building infrastructure by the government but also contributed to improved interaction and collaboration between domestic and overseas’ companies. As the main policy implication, our paper suggests that the transition from product-using to product-manufacturing in CoPS industries is not an automatic process. It is important to design the corresponding policies and institutional arrangements following the evolving technological capabilities and demand conditions. Finally, this paper has contributed to sectoral innovation systems and CoPS literature by shedding light on the evolution of the gas turbine industry as CoPS in the context of Iran as a developing country with some restrictions in global technology collaborations.
The concept of sectoral systems of innovation is rooted in studies that have been published about three decades ago. But this concept has been seriously introduced about two decades ago and has been increasingly used in diverse industries in developed and developing countries since then. Each sectoral system of innovation consists of four key components, one of which is formal institution (policies, rules, regulations, and standards) and informal institution (beliefs, norms, and values). An overview of past studies in developed and developing countries suggests that a variety of government policies, especially science, technology and innovation policies, have a significant impact on the formation and evolution of different sectoral systems of innovation. This paper shows that different sectors require a variety of policies, and policies that have positive effects in one sector do not necessarily have such effects in other sectors. In addition, at the end of the paper, the impact of various government policies on the formation and development of gas turbine industry in Iran has been investigated. The review of this experience suggests that the government has contributed to the formation and development of this sector by adopting various policies over time.
This paper revisits the pioneers of innovation systems in the 1980s to evaluate their perception of international forces tensioning national boundaries of those systems. The development of multinational enterprises and consequent changes in their operation beyond national borders is discussed, looking at the formation of a network of international knowledge flows. Those changes are connected to the internationalization of science and consequent formation of another network of international knowledge flows. Both networks, one firm-led and the other university-led, are pushed by the revolutions in information and communication technologies. The combination, overlapping and intertwinement of those two networks of international knowledge flows constitute a new layer in innovation systems – an emergent global innovation system. This new layer rearranges the roles of regional, sectoral and national innovation systems.
This study addresses calls to expand the boundaries of digital innovation research at multiple levels of society to comprehensively study the structure and evolution of innovation processes and outcomes. We contribute by proposing a framework composed of systems of innovation (SIs)¹ as an alternative and holistic conceptual base and unit of analysis, which accounts for the interconnected components located beyond the organizational microenvironments that ultimately affect innovation in organizations. Given the compatibility of SIs and the ontology of critical realism (CR)² as well as some flaws in SI research practice, we also use critical realist research approaches to guide the study of the state and transformation of SIs. We further explain the joint use of SIs and CR by applying them to the area of information systems innovation diffusion.
This study explores the relation between the strategies and business models (BM) configurations and the capability-augmenting efforts pursued software and information services (SIS). Through a multiple case-study research design, examining four SIS firms operating in Argentina, it seeks to understand, in particular, the nature of the dynamic capabilities (DC) developed by these firms, i.e. their ability to integrate, reconfigure and enlarge their base of strategic resources and ordinary capabilities. The findings of the study shed light on the two-way relation between the components of the BM and the nature DC. In the case of standardized product-oriented strategies, firms privilege integrating ‘sense’ DC to grasp market's needs and demands with ‘seize’ DC to develop products able to exploit commercialization opportunities. In service-oriented strategies, ‘sense’ DC are focused on the identification of the features among the wide variety of customers’ demands which are scalable. Whereas ‘seize’ DC are rather focused on project management skills to integrate the architectures and accumulated reusable pieces of codes with capabilities to continuous improvement processes.
Knowledge does matter: but the question is when, how, and why? Moreover, with the advancement of economies and societies, knowledge matters even more and in ways that are not always predictable or even controllable (e.g., see the concepts of strategic knowledge serendipity and strategic knowledge arbitrage in Carayannis et al. 2003). The successful performance of the developed and the developing economies, societies, and democracies increasingly depends on knowledge. One branch of knowledge develops along R&D (research and experimental development), S&T (science and technology), and innovation.
The UK National Innovation system is reviewed from a systems theoretical perspective.An open systems implementation approach using KnowledgeGrid is propoosed.
Latecomer sectors in late-industrializing economies follow different patterns in their development and growth processes, which largely determine the share acquired from the global value chain. The development and growth process of the sectors are generally argued to be the result of the interaction of a macro-level specific institutional context (e.g., system of intellectual property rights, labor market regulations) and micro-level firm strategic choices. In this study, the authors argue that meso-level sectoral systems also play a critical role in the development and growth process of latecomer sectors. Accordingly, they attempt to integrate three theoretical perspectives: Resource-Based View (RBV) of the firm, Sectoral System of Innovation (SSI) perspective, and Technological Capability Perspective (TCP) for late industrializing economies to explain the relative developmental failure of the Turkish automotive industry compared to other successful latecomer industries such as the South Korean automotive industry. In light of theoretical framework, the authors investigate sectoral technological upgrading trajectory and compare Korean and Turkish automotive industry development paths using the case study method. They conclude by discussing how a multilevel framework that takes into account the systemic factors can guide research on sectoral development in late-industrializing countries. In light of a comparative historical analysis of development of the Turkish and Korean automotive industries, it is argued that a pace of industrial transformation can be accelerated by multilevel proactive state intervention.
Developed and developing economies alike face increased resource scarcity and competitive rivalry. In this context, science and technology appear as an essential source of competitive and sustainable advantage at national and regional levels. However, the key determinant of their efficacy is the quality and quantity of entrepreneurship-enabled innovation that unlocks and captures the benefits of the science enterprise in the form of private, public, or hybrid goods. Linking basic and applied research with the market, via technology transfer and commercialization mechanisms, including government–university–industry partnerships and capital investments, constitutes the essential trigger mechanism and driving force of sustainable competitive advantage and prosperity. In this volume, the authors define the terms and principles of knowledge creation, diffusion, and use, and establish a theoretical framework for their study. In particular, they focus on the “Quadruple Helix” model, through which government, academia, industry, and civil society are seen as key actors promoting a democratic approach to innovation through which strategy development and decision-making are exposed to feedback from key stakeholders, resulting in socially accountable policies and practices.
Introduction: This chapter aims to sum up and draw some conclusions about the sectoral systems studied in the book. The concept of the sectoral system has proven a useful tool in various respects: for a descriptive analysis of the differences and similarities in the structure, organization and boundaries of sectors; for a full understanding of the differences and similarities in the working, dynamics and transformation of sectors; for the identification of the factors affecting innovation and the commercial performance and international competitiveness of firms and countries in the different sectors; for the development of new public policy indications. The chapter presents a brief characterization of the sectors examined in this book (section 1), followed by a discussion of the results concerning the role of the three building blocks – knowledge and technologies, actors and networks, and institutions (section 2) – and of the actual geographical boundaries (section 3) of sectoral systems in Europe. Then the main coevolutionary processes (section 4) are examined. Sectoral systems in services are different from those in manufacturing, and their differences are discussed in section 5. Finally, the international performance of Europe in the six sectors and the factors affecting it (section 6), the policy implications of a sectoral system approach (section 7) and the challenges ahead (section 8) are discussed. As mentioned in the introduction, in the chapters of this book concerning specific SSIs sectors have been defined broadly: pharmaceuticals, chemicals, telecommunications, software and machine tools. © Cambridge University Press, 2004 and Cambridge University Press, 2009.
Introduction: This chapter aims to analyze the determinants of European industrial strength in a selected number of sectors vis-à-vis the United States and Japan. We take a comparative bottom-up approach, presenting a series of results from the analysis of the six sectors (pharmaceuticals and biotechnology, chemicals, telecommunications, software, machine tools and three subsectors in services) examined in this book. Our starting point is that differences in firms’ rates of innovation and countries’ economic performance are greatly affected by the features of learning, the knowledge base, the types of actors and networks involved in innovation, and the institutional setting of innovative activities. For the six sectors we enquire, where major differences in the structure and working of sectoral systems across countries are present, whether these differences affect the international performance of countries, and whether characteristics of the sectoral systems have been major factors for industrial leadership in each sector. Section 2 provides a link between the sectoral system approach and the analysis of the determinants of industrial leadership. The sectoral system approach suggests that, in the majority of cases, differences in technological expertise and their impact on sectoral performance cannot be understood in a vacuum or simply on the basis of investment strategies at the level of the firm; rather, that they need to be analyzed with respect to many other relevant dimensions that characterize a sector and its dynamics over time. Section 3 assesses the main relationships between the characteristics of the sectoral system and economic performance in sectors. © Cambridge University Press, 2004 and Cambridge University Press, 2009.
This article objective is to explain background and functioning of the integral collaborative model for software development (ICMSD). ICMSD is a methodological model to assist custom made software development and it is address to enterprises and expert developers who don't count with methodological processes well defined to built software. Software development allow information technologies innovate on productive processes in any organization leading to economic growth regionally or in a country. That is why the urge to generate a model for software development small and medium companies. ICMSD proposes five levels to provide the best practices in software development; and it is supported by Project Management Institute (PMI) to generate quality software aligned to organizational objectives. ICMSD considers the evaluation of software quality through indicators validating its functioning, this indicators are based on quality international standards. Finally ICMSD seeks to generate a knowledge database across social business and social networks, to put into best practices software development projects.
This book offers a sociological overview of the theories and research on economic innovation. Over the past few decades, the economics of innovation has given rise to a lively flow of studies, and innovation studies continues to develop as an interdisciplinary field of research. Sociology in general, and economic sociology in particular, have already made a significant contribution to innovation and continue to play a crucial role in this emerging field. This book presents an integrated sociological approach to the study of economic innovation. It explores the key theories and sociological research on innovation, as well as other contributions to the field of Innovation Studies from economists, geographers, and psychologists. Ramella argues that in order to understand the processes of innovation, it is necessary to look at the actors of innovation, at the relations that exist between them and at the sectoral and territorial contexts in which they operate. For students, this book includes international case studies throughout, as well as further study questions at the end of each chapter.
The information technology is the means to achieve innovation in production processes. Software plays an important role in achieving economic growth in any region. Nowadays the main problem in the development of custom software to generate applications is that it doesn't match the needs and objectives of the companies (strategic planning); it doesn't also directly impact the goals that companies planned because it is only developed and created by TI experts not by a combination between them and management experts as well. This way the development process would be optimized. These software need to be supported or based on some model or methodology that allows the creation of quality software, where a multidisciplinary group is involved in its creation, ie. the methodology works smooth to develop the project. Hence the need to generate a model that helps small and medium companies in the central-western of Mexico to have quality custom software. This study proposes a model for agile software development which take into account the perception of experts in that area. The model is called "Integrated collaborative software development model" (ICSDM) and offers an easy way to interact throught five different steps that brings the best practices in software development. Those steps are based on the principal functions that proposes the "Project Management Institute" (PMI). The ICSDM evaluates the quality of software through a series of KPI's that validate all the elements that contribute to the optimal functioning of software; those KPI's are also based on international quality standards. Finally the ICSDM intends to generate a knowledge base through social business supported by real time communication in social networks of experts opinions and experiences, allowing best practices in software development projects.
We are currently in surroundings with ubiquitous software-embedded products, while there is less understanding on innovations of the invisible embedded software (ESW). Because of its significant role in automobiles and big market share in the Japanese ESW sector, automotive software (ASW) is selected as the case for our research on heterogeneity and typology of product innovation in ESW. Based on the embedded nature of ASW, the role of Japanese automobiles in the USA and the advantage of using patenting in large third countries as a good proxy measure for national innovation activities, we employ ASW-related patents in the USPTO patent database as an indicator of ASW product innovation. Through analysing the heterogeneities of product innovation in terms of function and actors’ innovation activities over the period 1981–2010 by classifying ASW functions into fields of power train control, battery and electric power control, safety control, body control and information communication and telecommunication system, we extract the product innovation typology of ESW and conclude that the heterogeneous requirements for real-time operation and accumulation of specific knowledge are the main reasons of heterogeneity of product innovation in ESW. These results imply different R&D strategies and innovation trajectories.
This paper systematically examines the role of external personal knowledge networks vis-à-vis alternative sources of work-related knowledge. Specific hypotheses on whether the importance of external personal networks varies for job positions, knowledge functions and sources of competitiveness are examined. The study is based on a survey and interviews with 105 R&D workers in 46 information technology (IT) firms in the Greater Cambridge Region (UK).The results show that alternative sources of knowledge are considerably more important than external personal networks. Specifically, the results confirm the hypothesis that the lower the job position, the less important are external personal networks. The most frequent type of knowledge that is uniquely available through personal networks concerns business knowledge of senior managers rather than technological knowledge. Furthermore, the analysis supports the view that external personal networks are most important for exploratory keeping up-to-date than for problem solving. Finally, the paper shows that external personal networks are more important for firms whose competitiveness is primarily driven by being cutting-edge in technology.Overall, the results suggest that academic theorising and R&D management/policy on external personal networks needs to be more context-sensitive and would benefit from differentiating between job positions, knowledge functions and types of firm competitiveness.
Although it is often pointed out that the software industry in Japan is not competitive, the development process of the innovation system in this industry has not been fully explored and we do not know whether or not it has any problems. In this study, we conducted an empirical analysis of the knowledge base of the software industry in Japan and the relationship between the knowledge base and the intellectual property system as the building blocks for a sectoral innovation system. While the number of applications for software-related patents increased rapidly during the 1990s, we were unable to obtain evidence to support the criticism that the sharp increase in the number of applications may lead to an abundance of low-value patents, in light of the examination request rate and the citation rate. The analysis of software-related patents based on the property of applicants and citations showed that the emergence of new technological opportunities, such as video games, had a large impact on the expansion of the knowledge base in the field of software and that new factors were emerging. However, the results suggested that the patent system was used more effectively by existing companies, rather than by emerging companies. Although the role played by universities in the development of software technologies is considered to be limited in Japan, the data suggests that the knowledge transfer on software technologies from the academic sector (including universities and other public research organizations) is increasing, and that the industrial availability of that knowledge is gradually increasing. Meanwhile, the analysis using the individual data of the RIETI Inventor Survey showed that the construction of direct relationships between companies and academic centers through means such as joint invention and research cooperation with university researchers, and the dispatch and job assignments of researchers to universities, did not necessarily lead to high-value software patents for companies, and that patents borne from these efforts could become rather difficult for relevant companies to use. At the same time, however, the analysis indicated that when looking at the information generated by the academic sector as the knowledge base, it would be possible to obtain high-value patents for the industry if this type of information was used for research.
This paper aims at analysing the evolutionary innovation patterns of the online games industry in Korea. Online games, as IT-based and creative service products, are important in the development trajectory of Korea, in that Korea created a new global leadership for the online games industry breaking the traditional catch-up innovation pattern. Two research hypotheses are examined and accepted based on questionnaire surveys and in-depth interviews. First, a quantitative analysis as to the hours of online game playing for 250 games over the last 19 months demonstrates that a few games dominate the online game market in Korea, which implies network externalities in the online games industry. Second, from the perspective of evolution, the innovation focus of online games changes from technology-oriented, through market-oriented, and finally to design-oriented soft innovation. This paper introduces network externalities as the reasons why design-oriented (non-technological) soft innovation has become significant in online games over time. The results of this study suggest managerial and policy implications. Online games companies are recommended to expand the research and development (R&D) capabilities of non-technological and soft innovation in combination with those of technological innovation to improve strategic competitiveness. From the point of innovation policies, the redefinition of R&D scopes is required as a pre-requisite step for diversifying the government R&D support into the areas of non-technological and soft innovation capabilities. The government effort to grow human resources with a high level of creative capabilities relevant to soft innovation also needs to be made.
Software development activities have been identified as a ‘window of opportunity’ for latecomer companies. Based on a critical literature review, this paper argues that studies are yet to scrutinise the exact nature and extent of the capabilities, which the latecomer companies have been able to develop. The main proposition advanced by this research is that the analyses need to investigate the technological capabilities, which the latecomer companies have been able to accumulate. This study outlines the specifics in analysing technological capabilities in latecomer software companies and improves our understanding about the complexity in developing software industries in latecomer context.
The paper introduces the notion of coherence of technological capabilities. It argues that in analysing technological capabilities (TC) the analysis needs to go beyond investigation of constituent capabilities and should take into account the level of coherence among the constituent capabilities. The phenomenon of different degree of coherence of TC is detected while exploring the TC in Bulgarian software companies. Significant differences emerge between the TC of domestic-oriented vs. export-driven companies in the accumulation of constituent capabilities. But it is the analysis of the coherence of TC, which proved capable to capture the real differences in capability accumulation: strong coherence occurs only in ‘export’ TC. This analysis revives the debate about possibilities for leapfrogging by latecomers by developing software industries. Based on the results the study revises the ‘walking on two legs’ hypothesis and also points that the optimistic forecasts about the possibilities for leapfrogging by the latecomer countries by developing indigenous software industries might have been overestimated.
'Mode 3' allows and emphasises the co-existence and co-evolution of different knowledge and innovation paradigms: the competitiveness and superiority of a knowledge system is highly determined by its adaptive capacity to combine and integrate different knowledge and innovation modes via co-evolution, co-specialisation and co-opetition knowledge stock and flow dynamics. The 'Quadruple Helix' emphasises the importance of also integrating the perspective of the media-based and culture-based public. What results is an emerging fractal knowledge and innovation ecosystem, well-configured for the knowledge economy and society.
The traditional Triple Helix innovation model focuses on university-industry-government relations. The Quadruple Helix innovation systems bring in the perspectives of the media-based and culture-based public as well as that of civil society. The Quintuple Helix emphasizes the natural environments of society, also for the knowledge production and innovation. Therefore, the quadruple helix contextualizes the triple helix, and the quintuple helix the quadruple helix. Features of the quadruple helix are: culture (cultures) and innovation culture (innovation cultures); the knowledge of culture and the culture of knowledge; values and lifestyles; multiculturalism, multiculture, and creativity; media; arts and arts universities; and multi-level innovation systems (local, national, global), with universities of the sciences, but also universities of the arts. The democracy of knowledge, as a concept and metaphor, highlights and underscores parallel processes between political pluralism in advanced democracy, and knowledge and innovation heterogeneity and diversity in advanced economy and society. The "mode 3" knowledge production system (MODE3KPS; expanding and extending the "mode 1" and "mode 2" knowledge production systems) is at the heart of the fractal research, education and innovation ecosystem. MODE3KPS universities or higher education systems are interested in integrating and combining mode 1 and mode 2. The concept of open innovation diplomacy (OID) encompasses the concept and practice of bridging distance and other divides (cultural, socioeconomic, technological, etc.) with focused and properly targeted initiatives to connect ideas and solutions with markets and investors ready to appreciate them and nurture them to their full potential. In this sense, OID qualifies as a new and novel strategy, policy-making, and governance approach in the context of the quadruple and quintuple innovation helices.
A widespread assumption in economic geography and the economics of innovation is that firms located in clusters benefit from territorial learning and (technological) knowledge spillovers. However, there have been few empirical investigations of potential mechanisms, and it remains unclear to what extent these benefits actually occur. This paper aims to address this issue and examines to what extent research and development (R&D) workers in the Cambridge Information Technology (IT) Cluster benefit from being located in the Cluster. Grounded in interviews and a survey with 105 R&D workers in 46 innovation-based firms, the empirical results challenge some of the prevalent views. The results show, first, that many R&D workers do not believe that their work benefits from being located in the Cluster, and the reasons for this are explored. Second, the importance of personal knowledge networks is limited, and the majority of those extra-firm personal networks that do exist are non-local. These results suggest that academics as well as policy makers need to be more careful with the assumption of technological knowledge spillovers in innovative clusters. Finally, the paper discusses that the significant advantages of the Cambridge IT Cluster for R&D workers are of a different nature; in particular they concern labor market advantages and benefits from the global 'brand' of Cambridge.
In economic geography, there is a general belief that firms benefit from being located near other organisations. The problem is, however, that the existence of those benefits is often merely assumed instead of actually tested. Using data on the firm level, this book takes a more systematic look at how and to what extent the performance of firms is affected by being located close to other organisations. The empirical results suggest that small software firms in the Netherlands indeed perform better when they are located in regions where computer services are concentrated, when they are established in the same region as the founder's previous workplace, and when they are located near customers. Contrary to what is generally assumed, however, those beneficial effects do not follow from having more regular face-to-face contacts with organisations located nearby. Copyright © Anet B.R. Weterings p/a Faculty of GeoSciences, Utrecht University 2006.
It is beyond dispute that technological change acts as a driver of economic growth. In developing countries where highly suffer from lack of this process, incremental innovation is considered as main source of technology capability building and development. In moving toward this pass and to meet with time pressure of catching up, developing countries acquire the initial required knowledge base through technology absorption from outside sources. On the other hand as development is a lengthy process, it is important that the absorbed knowledge still has the potential of more advancement in future. Therefore a selection instrument with ability of assessing different knowledge base or technologies in a dynamic way is highly attractive for decision makers. In this paper we propose the concept of dynamic technological regime as a selection framework with promising feature of avoiding investment in wrong technologies for developing countries.
This paper surveys the contributions that economists have made to understanding standards-setting processes and their consequences for industry structure and economic welfare. Standardization processes of four kinds are examined, namely: (1) market competition involving products embodying unsponsored standards, (2) market competition among sponsored (proprietary) standards, (3) agreements within voluntary standards-writing organizations, a18d (4) direct governmental promulgation. The major trajectories along which research has been moving are described and related to both the positive and the normative issues concerning compatibility standards that remain to be studied.
From the Publisher:Although the computer software industry is growing rapidly and is of increasing importance for the international competitiveness of other high-technology industries and national economies, it has received surprisingly little attention from scholars. Data on employment, sales, and industry structure for the software industry are rare, and public statistical agencies do not provide reliable, internationally comparable data. The International Computer Software Industry: A Comparative Study of Industry Evolution and Structure offers the first comprehensive, cross-national analysis of the origins, structure, and competitive strengths of the U.S., Japanese, British, Western European, and Russian computer software industries. In addition to chapters dealing with each of these industries, the volume examines in detail the role of U.S. government policy in supporting the emergence of the U.S. software industry, the interaction between software and hardware in technology commercialization, and the changing structure and influence of intellectual property rights within the industry. This edited volume contains research conducted by a group of international experts in the software industry. It will be essential reading for managers and analysts in the software industry, along with scholars and students of technology and of the computer software industry.
This paper presents an empirical study of the shareware industry, an industry in which computer software is distributed under a voluntary payment system. Although the reasons why people might pay for such a public good are addressed, the paper's primary objective is to reveal for instance, how many people actually do pay. The data used in the study was compiled from a written survey of shaieware authors and summary statistics on numbers of registrations, development hours, distribution times, and prices are presented as are estimatcs of rates of return. The overriding finding is that the distributions of registrations and rates of return are highly upward skewed. However, entry into the industry can still be rational, as the expected return may very well be positive. Furthermore, variable costs are negligible and for many authors, the opportunity cost of programming is zero.
The procedures and the nature of “technologies” are suggested to be broadly similar to those which characterize “science”. In particular, there appear to be “technological paradigms” (or research programmes) performing a similar role to “scientific paradigms” (or research programmes). The model tries to account for both continuous changes and discontinuities in technological innovation. Continuous changes are often related to progress along a technological trajectory defined by a technological paradigm, while discontinuities are associated with the emergence of a new paradigm. One-directional explanations of the innovative process, and in particular those assuming “the market” as the prime mover, are inadequate to explain the emergence of new technological paradigms. The origin of the latter stems from the interplay between scientific advances, economic factors, institutional variables, and unsolved difficulties on established technological paths. The model tries to establish a sufficiently general framework which accounts for all these factors and to define the process of selection of new technological paradigms among a greater set of notionally possible ones.The history of a technology is contextual to the history of the industrial structures associated with that technology. The emergence of a new paradigm is often related to new “schumpeterian” companies, while its establishment often shows also a process of oligopolistic stabilization.
This paper analyses the process of growth and restructuring of 38 large European and US software firms during the period 1984-1992. Since the end of the 1960s, an independent software industry has emerged in the US and in Europe stimulated by technological and institutional change. Particularly, the diffusion of small computers and local area networks during the 1980s is largely responsible for the high growth rate of software market compared with other information technology segments. Moreover, software is a pervasive technology in that it tends to be used in all economic sectors. This has spurred the entry of many new firms and vertical disintegration of software activities from computer hardware manufacturing. In the 1980s a wave of M&As, joint ventures and corporate restructuring (new subsidiaries, reorganisations of divisions, etc.) took place in this industry. This paper aims to analyse the objectives of these operations (exploitation of new market opportunities or new joint research opportunities) and their directions (diversification or specialisation).
This paper examines the introduction of Integrated Software Technologies in Product Development focusing on their influence on organisational Experimentation and Prototyping practices. In particular, it explores the role of 'virtual prototyping' techniques, concepts and models in facilitating multi-functional processes coordination and multi-disciplinary knowledge integration. It argues that the role of software in supporting inter-functional cooperation and the coordination of knowledge and activities depends on the organisation's ability to nurture integrating routines which support two-directional translation flows between 'local' (function-based) and 'global' (computer-embedded) knowledge and activity levels. These mechanisms also lie at the heart of dynamic capabilities' creation and maintenance.
Women in ITEC Courses and Careers, report prepared for the Department for Education and Skills and the Department of Trade and Industry
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