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The origins of the basic inventions underlying DuPont's major product and process innovations, 1920 to 1950
... Dessa forma, seu conceito inicialmente estava fortemente relacionado à tecnologia empregada na consecução das atividades de inovação, sendo considerado por Mueller (1962) um processo econômico e social no qual novos produtos ou processos são desenvolvidos, ou produtos e processos existentes são melhorados, por meio da inserção de conhecimento científico acumulado, e por Gibbons e Johnston (1974), um processo no qual ciência e tecnologia se associam a fim de gerar novas possibilidades, de modo que o conhecimento científico ultrapassa os limites do método e recai na melhor utilização da ciência como promotora de saltos significativos de mudança social e econômica. ...
... Inovação consiste num processo econômico e social no qual novos produtos ou processos são desenvolvidos, ou produtos e processos existentes são melhorados por meio da inserção de conhecimento científico acumulado (MUELLER, 1962). ...
... Dessa forma, seu conceito inicialmente estava fortemente relacionado à tecnologia empregada na consecução das atividades de inovação, sendo considerado por Mueller (1962) um processo econômico e social no qual novos produtos ou processos são desenvolvidos, ou produtos e processos existentes são melhorados, por meio da inserção de conhecimento científico acumulado, e por Gibbons e Johnston (1974), um processo no qual ciência e tecnologia se associam a fim de gerar novas possibilidades, de modo que o conhecimento científico ultrapassa os limites do método e recai na melhor utilização da ciência como promotora de saltos significativos de mudança social e econômica. ...
... Inovação consiste num processo econômico e social no qual novos produtos ou processos são desenvolvidos, ou produtos e processos existentes são melhorados por meio da inserção de conhecimento científico acumulado (MUELLER, 1962). ...
O intenso fluxo de informações no ambiente competitivo obrigou as organizações a buscar como estratégia de inovação parcerias e fontes de conhecimento canalizadas em diversos agentes aos quais se comunica, compondo o que se denomina modelo de inovação aberta. Diante disso, o cliente passa a adquirir um novo papel dentro da cadeia de inovação das empresas, redefinindo a forma pela qual os serviços são prestados e alterando o padrão de competição das empresas. Com base nessas considerações, o artigo busca explorar como o cliente percebe-se dentro do paradigma da inovação aberta em sua relação com as empresas de serviços. Esta pesquisa é quantitativa com abordagem descritiva, partindo do método hipotético-dedutivo e tendo como estratégia de pesquisa uma survey realizada com estudantes universitários. Os dados foram coletados mediante o uso de questionário com perguntas fechadas e analisados por meio de análise fatorial exploratória, como forma de validar os construtos e suas dimensões e buscar por fatores capazes de demonstrar se as três hipóteses levantadas são válidas ou não: (i) os clientes atualmente percebem seu papel dentro da cadeia de inovação das empresas; (ii) os clientes valorizam empresas de serviços que inovam abertamente; e (iii) o modelo de inovação aberta modificou o ambiente de negócios na perspectiva do cliente. Como resultado obteve-se a validação das hipóteses levantadas e a elaboração de um modelo intitulado “Modelo dos Seis Fatores de Percepção”, que representa a percepção do cliente perante o modelo de inovação aberta.
... The DuPonts also exploited a license to the synthesis of ammonia using the process invented by Georges Claude and exploited by his Société anonyme de l'Air Liquide-a company still existing nowadays. From yet other French companies, DuPont de Nemours purchased rights for titanium pigments, for acetate flake, cellulose and the cellulose acetate yarn process (82). ...
... As shown by March and Simon (1958, p. 188), innovations come mostly from borrowing and acquiring external solutions rather than from internal generation. offer a number of examples of research whose outcome confirms the above claim (for instance (Hamberg, 1963;Johnston & Gibbons, 1975;Mueller, 1962;Myers & Marquis, 1969;von Hippel, 1988). That is why there is a close relationship between absorptive capacity and IC . ...
... According to (March, 1958), most innovations result from borrowing rather than invention, an observation which is supported by research on the sources of innovation. (Mueller, 1962); (Hamberg, 1963); (Von Hippel, 1988). Cohen & Levinthal (1990) defined absorptive capacity as the ability to recognize the value of new information, assimilate it and apply it to commercial ends. ...
... According to (March, 1958), most innovations result from borrowing rather than invention, an observation which is supported by research on the sources of innovation. (Mueller, 1962); (Hamberg, 1963); (Von Hippel, 1988). Cohen & Levinthal (1990) defined absorptive capacity as the ability to recognize the value of new information, assimilate it and apply it to commercial ends. ...
... These novel linkages expand problemsolving capabilities and skills within individuals and organizations, raising at once the efficient absorption of new information (Cohen & Levinthal, 1989;Crescenzi & Gagliardi, 2018;Rodrigo-Alarcón et al., 2020;Teece et al., 1997), and the stimulation of creativity (Shalley et al., 2004) and learning capabilities (McCombs, 1991). Recognizing useful external knowledge and exploiting it can give firms an edge over their competitors, and new products have been shown to incorporate knowledge that exists or was originally produced outside the successful innovator (March & Simon, 1958;Mueller, 1962;Mansfield, 1968;Rosenberg & Steinmuller, 1988). ...
Plain English Summary
COVID-19 has imposed restrictions on labor mobility and this turns out to be relevant for productivity and economic growth. Business visits (BVs) are a proper proxy (unique information is taken from the US National Business Travel Association) to measure short-term mobility. Sectoral data in 14 countries over the period 1998–2013 are used. Results do reveal that BVs have a positive impact on labor productivity. However, this effect is more relevant in those sectors and economies at a lower stage of productivity evolution, i.e., the lower the initial productivity level, the larger the effect of BVs on productivity. Therefore, BVs play a relevant role in sectors and countries lagging behind in terms of productivity. Policy makers should foster, in the post-pandemic recovery, short-term labor mobility through adequate incentives and tax exemptions, particularly in those sectors where BVs are less frequent and where productivity growth is below the average.
... The capacity to create sustainable businesses within existing corporate organizations depends on the firms' ability to recognize and exploit new information from diverse sources (Cohen & Levinthal, 1990;Lis & Sudolska, 2020;Lumpkin & Dess, 1996;Miller, 1983). Most innovations in organizations are products of borrowed ideas rather than inventions (Mueller, 1962). Borrowing ideas for innovations is stressed in knowledge and strategic management (Lane & Lubatkin, 1998) both of which are very vital for growing businesses in fierce competitive and turbulent business environment (Kuratko & Morris, 2018). ...
This study offers insight through Structural Equation Modeling (SEM) into the joint impact of corporate absorptive capacity and corporate new business venturing on the performance of manufacturing firms in Nigeria as moderated by the quality governance mechanisms. Using the structured survey design, and respondents’ data from 330 employees of manufacturing firms, we provide evidence that both absorptive capacity and corporate new venturing entrepreneurship dimensions do not directly yield significant positive impact on firms’ performance. Rather, the significant effect depends on the quality of the corporate governance mechanisms. Firms’ absorptive capacity as measured by acquisition, assimilation (potential absorptive capacity), transformation, and knowledge exploitation (realized absorptive capacity) only resulted in value creation when mediated by key governance mechanisms including frequency of board meeting, and the presence of independent directors. Similar effect was detected on the effect of corporate new business entrepreneurship dimensions including innovation, proactivity, new business venturing and strategic renewal on firms’ performance in manufacturing sector. The path analysis showed that optimal board size, frequency of board meeting and the presence of independent directors jointly shape the way corporate new business entrepreneurship dimensions affect firms’ performance. By implication, weak governance occasioned agency problems that reduce the potential of corporate entrepreneurship to influence corporate financial performance positively. Overall, firms that wish to reap the benefit of knowledge management and new business venturing should develop their governance structures. Thus, board size and independent directors are expected to be optimal to enhance and achieve sufficient monitoring while frequency of board meeting should be given a priority to encourage knowledge sharing that will translate into higher financial performance.
... The skilled sta®, formalized organizational structure, and stable revenues of large¯rms generally allow them to better capture and exploit more innovative opportunities from several sources [King et al. (2003)]. In manufacturing industry, however, a large¯rm's¯nancial capability, various experience, and production scale economies lead to greater excellence in process innovation rather than product innovation [Afuah and Utterback (1997); Klepper (1996);Bracher et al. (1988);Mueller (1962); Arora and Gambardella (1994)]. Large¯rms tend to focus on maintaining their current competitive advantages and returns with risk aversion [Shimizu (2007)]. ...
The purpose of this study is to enrich the stream of research on Technology Forecasting (TF) activities in a firm for practitioners and researchers, a unique context where TF could lead to technological innovation. This paper offers a classification of the approaches and presents technological, industrial, methodological and organizational (TIMO) aspects of TF methods that are inherent in TF activities. Furthermore, this study provides empirical evidences to support organizational and managerial implications regarding TF activities associated with technology planning in a firm. Finally, research findings in regimes of technological changes suggest insights on technological, organizational and managerial processes within the firm.
... 56 In the years leading up to the Depression, the biggest technical problem facing the oil industry was the efficient production of gasoline. In 1909, the value of petroleum products distributed in the United States was split roughly equally among kerosene, fuel 55 Mueller (1962). 56 Gibb and Knowlton (1956, p. 541). ...
... Jewkes, Sawers and Stillerman (1969) studied one hundred significant products invented during the period 1900-1950, and they found that most of these inventions had been made by small firms. A similar result was found in a study by Mueller (1962) of the origins of products manufactured by Dupont. Most of the patents for these products had been purchased from small firms. ...
... In a classic study of 17 R&D laboratories, Allen and Cohen (1969) found that vendors, 'unpaid outside consultants' and informal contacts with government bodies and universities are important sources of R&D knowledge. Research of major product and process innovations at Du Pont between 1920 and 1950 by Mueller (1962) showed that the original knowledge sources of the most critical inventions were outside the firm. More recent research in strategy supports these arguments, suggesting that knowledge existing outside a firm's boundaries may be critical to firm success (Cassiman & Veugelers, 2006;Escribano, Fosfuri, & Tribó, 2009;Menon & Pfeffer, 2003). ...
Individual actions such as mobility across firms, participation in consortia, and various geographically local, professional, or ethnic activities lead to the development of social communities. These communities provide individuals with potentially useful knowledge for innovation. This chapter examines the informal and often individual sources of external knowledge. A review of the literature, both conceptual and empirical, on informal knowledge flows is presented and the impact of informal knowledge flows on organizational innovation is assessed. The process through which firms can scan for, absorb, and integrate knowledge obtained from informal sources is examined. The chapter attempts to unbundle the process of knowledge absorption from informal and individual sources and analyzes its components to determine how firms can develop capabilities in search, transfer, and integration that enhance innovation and create competitive advantage.
... This idea seems to resonate with empirical findings that a relatively large number of major innovations are not developed by big, incumbent firms but by small, innovative, entrepreneurial firms (e.g. Christensen 1997;Coombs, Narandren, and Richards 1996;Ghemawat 1991;Henderson and Clark 1990;Jewkes, Sawers, and Stillerman 1958;Lejarraga and Martinez-Ros 2014;Mueller 1962;Mueller and Tilton 1969). ...
The effect of firm size on diverse compositions of R&D expenditures is analysed in detail using firm-level data on the Korean manufacturing sector. On the grounds that each type of R&D activity differs in terms of salability in disembodied form and growth potential due to innovation, a distinction between product vs. process, and new vs. incremental R&D is made. Empirical tests show that the firm size is significantly associated with both the new and incremental R&D. Moreover, firm size is found to be significantly associated with other types of R&D compositions such as the share of R&D devoted to incremental innovation and multidimensional combinations of product, process, new and incremental R&D. These findings support the idea that large firms possess innovative advantages over smaller firms and firm size is an important determinant for firms’ heterogeneous R&D activities. We also discuss the limitations and the implications of the findings.
... Paradoxalement, ce sont ces exceptions qui ont été le mieux étudiées ; cf. Freeman[1982] à propos de la Standard Oil etMueller [1962] s'agissant de Du Pont. Tableau 1 . ...
[fre] L'integration de la R&D industrielle : nouvelles perspectives d'analyse Cet article poursuit deux objectifs : d'une part, il s'agit de mettre en evidence la specificite de la R&D integree a la firme, par rapport aux formes externes correspondantes : a la capacite d'innovation, la R&D interne associe une capacite d'apprentissage. Le second objectif decoule de ce premier resultat : il s'agit d'elaborer les principes d'une theorie de l'organisation de la R&D industrielle, qui ne soient pas reductibles aux categories de l'economie des couts de transaction. Avec les notions de quasi-rente composite et d'irreversibilite, nous pourrons saisir la contradiction, inherente a tout processus de mise en forme organisationnelle, entre la necessite d'integrer des ressources, comme condition de changement, et la necessite de laisser ces ressources sur le marche, comme condition de reversibilite. [eng] The integration of industrial R&D : toward a new analytical perspective This article has been written in a twofold perspective. Firstly we attempt to show the specificity of the in house research, in comparison with extramural R&D : In house R&D has two faces, innovation and leaming. The second perspective derives from this first resuit : we attempt to formulate the principles of a theory of R&d's organization, not reductible to the categories of the economics of transaction costs. Thus, the notions of quasi-rent and irreversibility permit us to formulate the contradiction, inherently associated to every organisational process, between the necessity of integrating ressources, as condition for changing, and the necessity of keeping these ressources on the marketplace, as condition for maintening a certain degree of reversibility.
... Similar kind of studies was also done by various scholars in the 1980s and 1990s, and the situation seemed to be very much the same (Mazzoleni & Nelson, 1998). The claim that IPRs induce commercialisation is also challenged by studies which concluded that innovations of large firms are actually based on inventions which are bought by them from smaller firms and private inventors (Mueller, 1962). ...
... According to March, 49 most innovations result from borrowing rather than invention, an observation which is supported by research on the sources of innovation. Mueller, 50 Hamberg, 51 Von Hippel, 52 Cohen & Levinthal 53 defined absorptive capacity as the ability to recognize the value of new information, assimilate it and apply it to commercial ends. ...
... Perceived market needs accounted for 75 per cent of the ideas for innovation (Baker et al., 1967). This is confirmed by the work of Carter and Williams (1957), Myers and Marquis (1969) and Mueller (1962), and the survey of Rogers and Shoemaker (1971 : 372-373). Controls also are said to facilitate innovation. ...
... Central to explanations of innovation and entrepreneurship is the construct of ACAP. ACAP refers to the "ability of a firm to recognize the value of new external information, assimilate it, and apply it to commercial ends" (Cohen & Levinthal, 1990, p. 127); thus, ACAP facilitates the innovation process (Mueller, 1962;von Hippel, 1988). This firm capability is believed to be a function of the firm's prior and related knowledge (Cohen & Levinthal, 1990). ...
Although innovation is a critical component of entrepreneurship (e.g., innovation is a dimension of firms’ entrepreneurial orientation [Covin & Slevin, 1989]), it seems that the fields of innovation and entrepreneurship run in parallel, with little interaction occurring between the two. While it is unfortunate there has not been more interaction, cross-fertilization, and the co-production of knowledge, the current situation represents a research opportunity—a research opportunity that we begin to explore in this chapter. Innovation refers to the creation of a new product, process, or service that an organization has created for the market; it represents the commercialization of an invention, where invention is an “act of insight” (Li & Atuahene-Gima, 2001, p. 1124). Innovation has been found to lead to enhanced performance in new ventures (Capon, Farley, & Hoenig, 1990; Li & Atuahene-Gima, 2001), superior firm performance (Hull & Rothenberg, 2008; Thornhill, 2006), and dynamic firm capabilities (Eisenhardt & Martin, 2000; Teece, Pisano, & Shuen, 1997). Not surprisingly, innovation scholars have been interested in understanding what makes some firms more innovative than others. Indeed, the innovation literature has produced a long list of antecedents (for a meta-analysis, see Damanpour, 1991) including inter-firm cooperation (Shan, Walker, & Kogut, 1994), network position (Tsai, 2001), market orientation (Atuahene-Gima, 1996), and industry structure (Teece, 1996). The corporate entrepreneurship literature has also found that innovation outcomes are associated with growth (Burgelman, 1984), higher profitability (Zahra & Covin, 1995), and competitive advantage (Covin & Miles, 1999). (We note this latter point to reinforce our earlier point that while innovation and corporate entrepreneurship cover much of the same ground, one makes little reference to the other and vice versa [for an exception, see Morris, Kuratko, & Covin, 2010].)
... Central to explanations of innovation and entrepreneurship is the construct of ACAP. ACAP refers to the "ability of a firm to recognize the value of new external information, assimilate it, and apply it to commercial ends" (Cohen & Levinthal, 1990, p. 127); thus, ACAP facilitates the innovation process (Mueller, 1962;von Hippel, 1988). This firm capability is believed to be a function of the firm's prior and related knowledge (Cohen & Levinthal, 1990). ...
... In this study I restrict my interest only to the non-cooperative (or competitive) R&D game. 4 See Poyago-Theotoky (1999), Kang (2006), Liao (2007). 5 See Arrow (1962), Hamberg (1963), Müller (1962) and Nelson (1959). ...
This paper analyzes the role of absorptive capacity in R&D spillovers through strategic R&D investments in a game-theoretic framework. In the model, a firm's effective R&D is composed of idiosyncratic R&D, which produces its own innovations, and identical R&D, which improves absorptive capacity. The model shows that in the presence of absorptive capacity firms have a tendency to underinvest (overinvest) in idiosyncratic (identical) R&D relative to the social optimum. As the spillover becomes larger, firms decrease their own R&D while they become more inclined towards strategic exploitation of rivals' efforts. Since the former effect overpowers the latter, the total amount of R&D decreases as the spillover increases. This is socially undesirable, providing a potential justification for a governmental subsidy for idiosyncratic R&D and a tax on identical R&D. The findings may have important implications for newly industrialized or emerging countries that consider a redirection of national R&D policy and intellectual property rights (IPR) regime.
... March and Simon (1958, p. 188) pointed out that most innovations result from borrowing rather than from pure invention. This statement was supported by extensive research on the sources of innovation (Cohen & Levinthal, 1990;Hamberg, 1963;Mueller, 1962). By applying knowledge from outside, firms can enlarge their innovation capability with positive effects on research efficiency (Stock, Greis, & Fischer, 2001), the probability of success in R&D and on the quality of new products and processes (Cohen & Levinthal, 1989;Harabi, 1995). ...
In 1989, absorptive capacity was introduced as an important factor for organizational innovation and change. Since then, the concept has been enhanced through reconceptualizations and extended by various empirical studies. However, previous research paid sparse attention to determinants of absorptive capacity and especially the single dimensions of the knowledge absorption process. Consequently, it remains unclear why some firms are better able to absorb new external knowledge than others. This paper focuses on organizational structure as one important determinant of absorptive capacity. Using case studies of two German high-tech firms, the paper discusses four structural factors influencing the acquisition, integration and exploitation dimensions of absorptive capacity: division form, R&D centrality, gatekeeper positions and interface positions. The paper enhances our understanding of the knowledge absorption process and provides propositions for future research.
... The skilled sta®, formalized organizational structure, and stable revenues of large¯rms generally allow them to better capture and exploit more innovative opportunities from several sources [King et al. (2003)]. In manufacturing industry, however, a large¯rm's¯nancial capability, various experience, and production scale economies lead to greater excellence in process innovation rather than product innovation [Afuah and Utterback (1997); Klepper (1996);Bracher et al. (1988);Mueller (1962); Arora and Gambardella (1994)]. Large¯rms tend to focus on maintaining their current competitive advantages and returns with risk aversion [Shimizu (2007)]. ...
It is often thought that there exists a trade-off between economic activities and a level of environment, i.e., economic growth causes pollution which deteriorates the environment condition. However, the literature shows that researchers has given little attention to this relationship, especially in regional level. Basically pollution is generated not only from the producing sector but also from the consumption sector. Thus, to understand the pollution problem this two sectors must be simultaneously taken into account. It indicates that a conventional input-output technique can be properly utilized for analyzing pollution problems. This paper analyzes the relationship between regional economic activities and regional environment, specifically focusing on the water pollution problem of Nakdong River region, Korea. Multi-region input-output technique is employed for" this. The paper forecasts a water pollution level of Nakdong River at the year 2000, based on the regional economic activities by that year. In addition, the current policy on Nakdong River planned by the central government is assessed. The paper represents a first step toward the further development of general model which tackles various regional environment problems.
... The similarities between Collaborative Innovation and Open Innovation are apparent (Chesbrough, 2003;Drechsler & Natter, 2012;Mueller, 1962;Von Hippel, 1988), as they are both concepts showing that the sources for innovation are no longer largely internal in an organization, but have spread to many loci in the outside environment. Along the same lines, Sanderson, Percy-Smith, and Dowson (2001) suggest the need for local governments to build relationships with other partners so that they can become learning and intelligent organizations. ...
The present paper aims to determine the level of implementation of innovations in Spanish local government as well as to identify which types of innovations are most common. The paper also considers the link between innovative behavior and organizational size. However, since innovations cannot occur as isolated phenomena but rather as a part of corporate strategy, the study compares the innovative behavior of the local governments analyzed with their typologies or strategic profiles. In order to achieve the aforementioned aims, the paper uses a survey of the Human Resource Managers of Town Halls in the largest Spanish municipalities. The results of this survey show that the most frequent innovations in the local governments analyzed are collaborative; the largest town halls show more propensities to innovate and they focus on external relationships which are collaborative and on the basis on Information and Communication Technologies. The study reconfirms that town halls with a prospective profile are the most innovative.
... The research on the role of innovation sources in firms has a long history that consists of a large number of academic papers (Chesbrough, 2003; Gibbons & Johnston, 1974; Mol & Birkinshaw, 2009; Mueller, 1962; Von Hippel, 1988, 2006). Von Hippel (1988) defines functional sources of innovation as the types of economic actors (users, suppliers, producers, or others such as universities) that contribute towards the development of product, process, or service innovations. ...
The service innovation literature lacks empirical studies that focus on the links between service firms and universities. This paper aims to contribute to a better understanding of these links. This paper applies the Portuguese version of the Community Innovation Survey (CIS 2006) to obtain data on 967 service firms. The model uses a random intercept in an ordered probit regression to empirically assess which factors influence the collaboration of service firms with universities for innovation related activities. The regression also considers the unobserved firm heterogeneity. The results demonstrate that innovation success, radical innovations, and innovation intensity are crucial to the development of links between innovative service firms and universities.
Venture capital investors are specialized financial intermediaries that provide funding for technological innovation with the goal of realizing a capital gain within a few years. We are the first to examine the association of venture capital funding with a company's choice of innovation strategies. We employ a unique data set of over 10,000 innovative Dutch companies, some of which received venture financing. The data include detailed information on patent applications, innovation activities, and other company characteristics. We find that companies backed by venture capital focus on the buildup of absorptive capacity by engaging in both in-house R & D and in the acquisition of external knowledge. Companies that receive public funding, instead, are able to relax their financing constraints and perform more innovation activities without focusing solely on absorptive capacity. Our results also suggest that the correlation between venture capital funding and the build-up of absorptive capacity is not only due to a selection effect. We derive implications of these findings for corporate strategy and public policy. © The Author 2017. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved.
Die Ungewißheit über den Aufwand und das Ergebnis der Forschungstätigkeit ist nach allgemeiner Auffassung deren kennzeichnendes Merkmal; es ist vielleicht das wichtigste Kennzeichen zur Unterscheidung auch der industriellen Forschungs- und Entwicklungstätigkeit von anderen Unternehmensaktivitäten. Hohe Ausschußquoten in der Produktion, die zum Beispiel bei der Handfertigung bestimmter Aluminiumelektroden vierzig Prozent erreichten oder bei den ersten Fertigungen deutscher Farbfernsehempfänger fünfzig Prozent betragen haben sollen, stellen Ausnahmen dar, die man nur in der sogenannten Anlaufzeit erwartet, die sich durch Lernen schnell verringern können und die man durch geeignete Entscheidungen abzustellen versucht. Ebenso werden extreme Schwierigkeiten bei Investitionen im Sachanlagevermögen eher als Ausnahmen betrachtet, wie die Schlagzeilen zu den sich über einige Jahre hinziehenden und das Schicksal eines ganzen Unternehmens beeinflussenden Probleme beim Aufbau und Betrieb einer Papiermaschine in einem deutschen Unternehmen der Papierindustrie zeigten.
Over the years the term technical progress has been given a wide range of meanings and interpretations. Here we shall use the term in two main senses which will subsequently form the subject-matter of the two main sections of this Survey. First we shall use the term to refer to the effects of changes in technology, or more specifically the role of technical progress in the growth process. Secondly, we shall use the term to refer to changes in technology itself, defining technology as useful knowledge pertaining to the art of production. In this context, we shall be concerned with the knowledge-creating activities of research, invention and development, together with the process of absorption of new knowledge into the productive system. These two interpretations of the term technical progress correspond broadly to the division in the economic literature between “macro”-studies which attempt to quantify the rate of technical progress as a determinant of the growth of output, and “micro”-studies which seek to explain the process of technical change—usually in a disaggregated way in firms and industries. In some places our Survey will overlap with the recent theoretical survey of growth by Hahn and Matthews [112], but in the main it is its complement, except that to emulate its thoroughness and masterly exposition would be a technological feat in itself! Our instructions were to make this Survey Anglo-centric. But for reasons that economists will appreciate it has come inevitably to stride the Atlantic with by far the larger foot in North America.
Questionnaires were sent out to 124 large Swedish firms, asking how they determined budgets for research and development (R & D) and who decided about the size of these budgets. 94 firms answered and 69 of these undertook R & D. It was found that, as a rule, firms decide upon individual projects and do not specify in advance a fixed level for the R & D budget. The decision about individual R & D projects and/or the R & D budget was most frequently made by the president of the company. The implication of our results for various kinds of research on the economics of R & D are discussed.
In our response to Nelson's important argument regarding the fit of research methods with the subject matter of various natural and social sciences, we highlight the complementarities offered by combining qualitative analysis with modeling and statistical analysis, focusing on economics. The argument is illustrated using a discussion of two studies on the economics of innovation.
For over three decades now historians of technology have been exploring the dynamics of technological change. Unravelling the paths by which new technologies are discovered and implemented has proved to be an intellectually engaging enterprise that has largely sustained the discipline. Much of the fascination with the process of technological change results from its complexity. On the other hand, this complexity has discouraged the development of more general approaches to the subject. Lacking explicit alternatives, most historians of technology have fallen back upon a linear model of technological change which links invention, development and commercialization in a sequential progression. Because the last two steps depend on the first one (invention), it is invention that has received the most scrutiny by historians. In fact, the concept of invention is tightly bound up with the linear model. Below it will be argued that the use of the linear model has distorted our understanding of technological change and that an alternative model, a Darwinian evolutionary one, more accurately expresses the complexity that emerges from the narrative histories.
Our surprisingly limited understanding of the processes whereby technological progress is effected may be traced in part to the long prevailing belief that each major technological advance was essentially unique, being ascribable either to inexplicable genius or to an extraordinarily lucky accident. Oddly enough, however, growing realisation of the organised structure of science and increasing success in extending its boundaries have likewise failed to enrich our grasp of how technical advances take place— no longer because these are still regarded as incomprehensible, but because they are now assumed to be quite transparent. Thus, technological gains are widely regarded as the virtually inevitable product of organised research and development, with reasonably regularised yields roughly proportioned to the resources applied and effects centred around the guiding objectives of improved products and lowered costs.*
Recent accounts suggest the development and commercialization of invention has become more “open.” Greater division of labor between inventors and innovators can enhance social welfare through gains from trade and economies of specialization. Moreover, this extensive reliance upon outside sources for invention also suggests that understanding the factors that condition the extramural supply of inventions to innovators is crucial to understanding the determinants of the rate and direction of innovative activity.
This paper reports on a recent survey of over 5000 American manufacturing sector firms on the extent to which innovators rely upon external sources of invention. Our results indicate that, between 2007 and 2009, 16% of manufacturing firms had innovated–meaning had introduced a product that was new to the industry. Of these, 49% report that their most important new product had originated from an outside source, notably customers, suppliers and technology specialists (i.e., universities, independent inventors and R&D contractors). We also compare the contribution of each source to innovation in the US economy. Although customers are the most common outside source, inventions acquired from technology specialists tend to be the more economically significant in term of their gross commercial value. As a group, external sources of invention make a significant contribution to the overall rate of innovation in the economy. Innovation policies, both public and private, should pay careful attention to the external supply of invention, and the efficiency of the mechanisms affecting the relationships between inventors and innovators.
In this paper, we try to investigate how the acquisition of the Cypriot financial institution Laiki Bank with the Greek Marfin Investment Group has affected the profitability of the new bank that created after the merge. In order to do so we have selected data from the financial statements of the banks for four years before the acquisition and four years after until today. In order to achieve our goals in this paper we have measured the ratios of ROE, ROA applying the DuPont ratio analyses, which have been demonstrated with the aim of graphs to show the change periodically. In the first chapter we give some definitions about banks mergers and acquisitions and the advantages and disadvantages of them. In the second chapter we describe how we can measure the profitability of a bank using the ratios of ROE, ROA and the Dupont Analysis. In the third chapter we report the historical elements, facts and financial statements about the two banks Laiki and Marfin before and after the merge. Finally we measure the ROE and ROA ratios before and after the merge between those two banks and try to find out if these two ratios have improved after the merge or not, so we can justify the merge. The results have shown magnificent growth of the new bank MarfinLaiki Bank it's self from the first year of the acquisition and year-by-year even bigger growth.
Abstract
The main field of this work is to study the profitability and efficiency of the Cooperative Greek Banks using DuPont Analysis and make a comparative analysis before and after the Financial Crisis that occurred worldwide.
The analysis of the banking crises, efficiency and profitability has been the study of several researchers all over the world. The DuPont Analysis measures the wealth of the stockholders with the ROE index and the effectiveness of the management with the ROA index and one index affect the other. It is compared the formation of a comparable size, both between individual banks, and over time.
The DuPont analysis for the Cooperative banks became for a time period of 10 years. Thus means 6 years before the world financial crisis (2001-2006) and 4 years after the Financial Crisis (2007-2010). The financial information obtained by the available published financial statements of the Greek Cooperative Banks and the Union of the Greek Cooperative Banks.
In the first chapter we refer to the Cooperative Banks generally and what is the contribution of these banks to the total economy of a country. In the second chapter we explain the methodology used by DuPont Analysis. The definitions and the tables and the diagrams are included here and in the next chapter. In the third chapter we quote the results of the Cooperative Greek banks for their profitability based on the methodology of DuPont Analysis. In the end, we write the conclusions of this work.
Key words: banks, financial institutions, profitability, DuPont analysis.
JEL Classification Codes: G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages.
The purpose of this paper is to study the efficiency of Greek banks operating in Bulgaria, using the DuPont Analysis and make a comparative analysis with the whole banking sector in Bulgaria. The analysis of the banking sector has been the study of several researchers. Through DuPont Analysis of profitability ratios it is compared the formation of a comparable size, both between individual banks, and over time. The analysis is carried out for the seven years 2004-2010 under the financial information obtained by the Central Bank of Bulgaria, and also by the available published financial statements of Greek banks operating in Bulgaria. This period includes the three years (2008-2010) embodied in the recent global financial crisis which affects Greece as well, so the results arising from the application of DuPont Analysis is too close to reality. In the first chapter we refer to the Greek banks operating in Bulgaria. What are these banks that were established in Bulgaria and what are the reasons and the expectations of them? In the second chapter we explain the methodology used by DuPont Analysis. The definitions and the diagrams are included here and in the next chapter. In the third chapter we present the results of Greek banks operating in Bulgaria for their efficiency based on the methodology of DuPont Analysis. In the end, we write the conclusions of this work.
The main field of this work is to study using DuPont Analysis the efficiency and profitability of world systemic banks and make a comparative analysis before and after the Financial Crisis that occurred worldwide and try to understand why these banks chosen as to be systemic for the hall world. The analysis of the banking crises, efficiency and profitability has been the study of several researchers worldwide. The DuPont Analysis measures the wealth of the stockholders with the ROE index and the effectiveness of the management with the ROA index and one index affect the other. It is compared the formation of a comparable size, both between individual banks, and over time. The DuPont analysis for the world systemic banks became for a time period of 8 years. Thus means 3 years before the world financial crisis (2005-2007) and 5 years after the Financial Crisis (2008-2012). The financial information obtained by the available published financial statements of the world systemic banks, Financial Stability Board (FSB) and GFIs. In the first chapter we refer to the world systemic banks and which are these banks that they support and affect the world economy. In the second chapter we explain the methodology used by DuPont Analysis. The definitions and the tables and the diagrams are included here and in the next chapter. In the third chapter we quote the results of world systemic banks for their profitability based on the methodology of DuPont Analysis. In the end, we write the conclusions of this work.
This chapter discusses the case of USA, in which economic catch-up with such European countries as Britain and Germany occurred during the final decades of the nineteenth century. Throughout this catch-up process, its growth trajectory changed from the one that relied on expanding capital and labor inputs to a more knowledge-intensive one. It acquired knowledge needed for this transition from outside as well as from within. The patent law was enacted in 1790, soon after its independence, and influenced the development of corporate structure and strategy. The chapter discusses the technology transfer and intellectual property protection in the textile industry that occurred mainly in 1810-60, the "Golden Age" of the independent inventor, such as Edison, in 1860-1900, the patent regime and economic catch-up in organic chemicals in 1900-30, and the relationship between patent policy, antitrust policy, and the structure of industrial R&D.
The second volume of The Cambridge History of Capitalism provides an authoritative reference on the spread and impact of capitalism across the world, and the varieties of responses to it. Employing a wide geographical coverage and strong comparative outlook, a team of leading scholars explore the global consequences that capitalism has had for industry, agriculture, and trade, along with the reactions by governments, firms, and markets. The authors consider how World War I halted the initial spread of capitalism, but global capitalism arose again by the close of the twentieth century. They explore how the responses of labor movements, compounded by the reactions by political regimes, whether defensive or proactive, led to diverse military and welfare consequences. Beneficial results eventually emerged, but the rise and spread of capitalism has not been easy or smooth. This definitive volume will have widespread appeal amongst historians, economists, and political scientists.
Este trabajo presenta los resultados de un estudio sobre capacidad de absorción del conocimiento y resultados de innovación en una muestra de empresas españolas pertenecientes al sector de fabricantes de componentes para la automoción. El modelo e hipótesis de investigación han sido empíricamente testados mediante la técnica Partial Least Squares (PLS).
Palabras clave: Capacidad de absorción. Resultados de la innovación. Gestión del conocimiento. Partial least squares.
Capacidad de absorción del conocimiento y resultados de la innovación: un estudio empírico en empresas españolas del sector de la automoción - DOI: 10.5102/un.gti.v5i2.3618.
The severe economic problems in most Western countries during the last decade have helped to reveal a decisive weakness in economic theorizing: none of the different schools of economic thought, whether Marxist or non-Marxist, have a satisfactory theory of long-term economic development. There is virtually no economic theory or paradigm which, beyond pure speculation, would allow any well founded economic forecast of what will happen to economic growth and employment in the next ten years or so. In judging the character of the present economic crisis, even the most basic questions are still open: Have some medium-term business cycles run out of their normal course since the mid-1970s, due to exogenous shocks and policy mistakes (end of the Bretton Woods system, oil price shock, budget deficits)? Will there be a return towards full employment and price stability once these policy mistakes are corrected and the shocks absorbed, as the McCracken report of the OECD (1977) puts it? Or do the low growth rates since the mid-1970s rather indicate a return to a “normal” long-term growth path once the postwar reconstruction boom had faded (reconstruction hypothesis)? Or, to sketch still another possible interpretation: can the economic problems of the last decade be taken as evidence that capitalism has reached the final stage of its life cycle, its last stage of decadence and stagnation? Are we experiencing the Final Crisis of Capitalism?
Introduction There is little doubt that over the last three decades the world economy has witnessed the emergence of a cluster of new technologies – that is, a new broad techno-economic paradigm in the sense of Freeman and Perez (1988) – centered on electronic-based information and communication technologies. Such information and communication technologies (ICTs) gave rise not only to new industries but, even more important, to deeply transformed incumbent industries (and for that matter also service activities), their organizational patterns, and their drivers of competitive success. Granted such “revolutionary” features of the emerging ICT-based (and possibly life-science-based) technologies in manufacturing and services, what has been their impact on the vertical and horizontal boundaries of firms? What is the evidence supporting the view according to which the new techno-economic paradigm is conducive to a progressive fading away of the Chandlerian multidivisional corporation, which was at the center of the previous techno-economic paradigm, in favor of more specialized, less vertically integrated structures? Is it true that large firms are generally losing their advantage in favor of smaller ones? More generally, how strong is the evidence of a “vanishing visible hand” (Langlois, 2003) in favor of a more market-centered organization of economic activities?
The primary objective of this study is to investigate the potential impact of external technology and resource complementarity on business model innovation and firm performance. In addition, this study determines whether or not absorptive capacity mediates the relationships among contextual variables. Structural equation modeling was used to conduct CFA to evaluate measurement models, while OLS regression analysis was used to test the hypotheses. Data from 253 product teams sampled from Taiwanese high-tech firms were used and the empirical results reveal the mediating role of absorptive capacity in the relationship between technology complementarity and both business model innovation and firm performance.
Purpose
– This study aims to examine the potential impact of external complementary resources on inbound open innovation and whether transformative capacity acts as a mediator in the process. If small and medium enterprises (SMEs) are to successfully implement inbound open innovation, they require injections of external complementary resources.
Design/methodology/approach
– Structural equation modeling was used to conduct confirmatory factor analysis to evaluate measurement model, while ordinary least squares regression analysis was used to test the hypotheses; research data are collected using surveys of 200 Taiwanese-owned SMEs in mainland China.
Findings
– Empirical results indicate that when SMEs seek to implement inbound open innovation, technological complementarity is the most important factor in resource complementarity. In addition, transformative capacity has a significant mediating role on the relationship between resource complementarity and inbound open innovation.
Originality/value
– The contribution of this paper lies in explaining the role played by transformative capacity in the process of inbound open innovation for SMEs through empirical analysis.
Cohen and Levinthal (1989) introduced the notion of absorptive capacity and demonstrated that knowledge spillovers can induce complementarities in R&D efforts. We show that this idea has rich implications when analysing important aspects of the growth process such as cross-country convergence and divergence, the international co-ordination of climate change policies, and the role of openness in the production of ideas. We also show that the notion of absorptive capacity sets an agenda for new empirical and theoretical analyses of the role of R&D spillovers in innovation and growth.
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