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Exploring data envelopment analysis for measuring collaborated innovation efficiency of small and medium-sized enterprises in Korea

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Abstract

In this research, we focus on the collaboration efficiency that arises from the research and development (R&D) efforts of small and medium-sized enterprises (SMEs) in Korea. Many research studies insist on the importance of the effectiveness of collaboration; however, only a few focus on the efficiency. Thus, this study investigates the effect of collaboration and collaboration type in terms of innovation efficiency for SMEs. First, we evaluate and compare the innovation efficiency of collaboration by applying data envelopment analysis-based global Malmquist productivity analysis. Then, we characterized the collaboration typology through cluster analysis and analyzed the features of the configured collaboration types. Finally, we analyze innovation efficiency to evaluate the performance of the collaboration types. More specifically, we examine the stepwise effect of collaboration for the phases of innovation, and we confirmed that collaboration had different effects on R&D and commercialization. Throughout this research, we found that DEA can be applied to innovation management area in the sense of developing collaborated innovation strategies and collaboration modes, in fact we confirm that the innovation efficiency resulting from DEA may generate suitable managerial strategies for collaboration. Also, four collaboration types identified in this study also showed considerably different innovation characteristics and efficiency. In addition, the results imply that differentiated collaboration strategy is required considering the technological intensity.

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... In the extant literature, studies on ITE have been carried out at both microeconomic (see for instance, Fu, 2012;Lee et al., 2019;Wang et al., 2016) and macroeconomic levels (see for instance, Fu and Yang, 2009;Guan et al., 2016;Kao, 2017), as well as at the mesoeconomic level 9 (see for instance, Bai, 2013;Franco et al., 2016;Li, 2009). We are interested here in studies carried out at the macroeconomic level. ...
... Note that for Africa, only South Africa, an emerging country, is considered. Kao (2017) adopts a twostage innovation production process, as in Lee et al. (2019), and estimates a DEA model 10 . Stage 1 is about the production of innovation while stage 2 refers to the commercialization of innovation output. ...
... Guan and Chen (2012) consider a sample of 22 OECD countries, with largely countries considered by Fu and Yang (2009), and a different study period. They also consider a two-stage innovation process as in Kao (2017) and Lee et al. (2019). The inputs and outputs used are similar to those considered by Kao (2017). ...
Preprint
A stream of literature has developed on the measurement of the efficient production of innovation, that is, innovation technical efficiency. However, the efficiency measured is quite fuzzy as no distinction is made between innovation short-run and long-run efficiencies. Also, African economies have been heavily neglected, despite the need to explore ways to improve the poor levels of innovation they usually exhibit. In this paper, we measure innovation technical efficiency by separating short-run and long-run efficiencies. Overall technical efficiency, that is, efficiency both in the short- and long-run is also assessed. The empirical evidence makes use of data from countries from the Economic Community of West African States, one of the most important economic areas in Africa. To obtain efficiency scores, we carry out a stochastic frontier analysis. Results show that research and development (R&D) and market sophistication positively influence innovation output in West African countries. The effect of market sophistication is stronger. No country is found to be efficient in the short-run and regarding overall efficiency. In the long-run, only Gambia is efficient. The long-run and average short-run efficiencies over the study period are not similar, which shows the need to separate the types of efficiency.
... Besides economic issues, SIPs involve almost no issues related to environmental protection, which makes the meaning of sustainability for SIPs drastically different from the common and conventional ones. It seems that the sustainability of SIPs cannot be truly enhanced by singly emphasizing concepts and measures such as green production, technological progress, and sustainable supply chain design [4], nor by simply promoting cost control and benefit assessment [5]. For the triple bottom line principle of economic, environmental, and social perspectives [6,7], one useful reference for the sustainable development of SIPs may be social responsibility and its relevance under a real situation. ...
... In terms of learning and growth, the SIP's talent team is the focal point. Team size (C1) measured by the number of regular staff is one of the basic inputs in the operation and management of SIPs [48] and an essential factor to evaluate the efficiency and benefit of sustainable development [5]. The appointment systems of engineers and technicians exists a common failing that many SIPs in China employ permanent staff with several on a contractual basis. ...
... At the customer aspect, supporting the scientific aspect (C23) is the main interaction mode of SIP with diverse users, being the natural mission listed in the first. It is also the dominating way of collaborative innovation, which itself is one of the important innovation activities of many organizations and a key measure to maintaining long-term competitiveness [5,61]. An organization such as SIP implementing scientific support, on the other hand, usually requires the participation of long, stable, and mutual trusted customers to capture core issues, to explore research and development processes, and to solve current technical problems effectively, then to further exchange knowledge and resources with potential partners [4]. ...
Article
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Scientific instrument platforms (SIPs) suffer from a lack of opinion and suggestions on sustainable operation management, leading to widely poor operation status nowadays. It is possible to guarantee the quality and efficiency of scientific and technological innovation activities and to improve the economic and social benefits of scientific and technological resources by constructing a framework system to promote the sustainability of the operation and management for SIPs. To meet the examination and evaluation requirements of the current operation and management of SIPs in China, this paper aims to establish an evaluation framework composed of indicators and attributes running through the construction and development of the SIPs from four aspects of learning and growth, process management, customers, and finance. Based on the existing research and operation practice, and according to the knowledge and preference of 627 SIP stakeholders, factor analysis has been adopted to extract and validate the hierarchical structure containing key sustainability indicators. The results show that the attribute characteristics of sustainable operating management for SIPs involve four significant dimensions of target positioning, team building, internal process control, and external service, among which the first and third ones have relatively higher priority. An effective and reliable evaluation tool is identified to be designed and provided for SIP operating management, which can also be used for self-evaluation and unified management of the sustainable operation of SIPs.
... In general, however, performance measurements of multiple input and output production systems cannot be described in the form of specific functions [38]. On the other hand, the nonparametric characteristics of DEA not only allow for multiple inputs and outputs to be used regardless of measurement units, but also do not require prior information on the basic functional form and weight [37][38][39]. Therefore, DEA is particularly suitable for measuring the performance of production systems with multiple inputs and outputs [40][41][42]. ...
... Due to these advantages, DEA is widely used in innovative research [37,39]. This is because innovative activities are complex and multidimensional processes consisting of interactions between various inputs and outputs. ...
... This is because innovative activities are complex and multidimensional processes consisting of interactions between various inputs and outputs. Therefore, the ability to innovate cannot be measured on a single-dimensional scale [37][38][39][43][44][45][46]. ...
Article
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Due to safety issues in the construction industry, interest in research on occupational safety and health (OSH) regulations remains high. Previous studies indicated that OSH regulations not only affect performance in and of themselves, but also indirectly by increasing awareness of such regulations. Studies also demonstrated that OSH regulation can affect innovation and corporate safety. However, the effect of OSH regulation on innovation remains unclear, as the relationship between the perception of OSH regulation and innovation is not fully understood. This study measures the innovation efficiency of companies in the Korean construction industry using data envelopment analysis (DEA), and investigates the relationship between innovation efficiency and companies’ perceptions of OSH regulations. Results indicate that companies that positively recognize OSH regulations tend to be more innovative than those that do not. This study also validates differences in innovation efficiency depending on the perception of OSH regulations by bootstrap DEA. The results of this study suggest appropriate strategies to promote innovation in the construction industry from the perspectives of both government and practitioners in firms.
... Elle est également réputée pour être une source de compétitivité (Carayannis & Grigoroudis 2016), de productivité pour les entreprises (Amable et al. 2016), et de croissance économique (Akcigit & Kerr 2018). L'innovation est véritablement une question de survie pour les entreprises, dans un environnement économique qui se veut de plus en plus concurrentiel, avec des technologies qui évoluent rapidement (Lee et al. 2019). Schumpeter, dans son ouvrage intitulé "Business Cycles : A Theoretical, Historical, and Statistical Analysis of the Capitalist Process", notait l'importance et la singularité de l'innovation, mais également son rôle majeur dans l'explication de nombreux phénomènes économiques, en ces termes : "[. . . ...
... De la même façon, les aspects plutôt politiques (par exemple, la stabilité politique) et institutionnels (par exemple, le contrôle de la corruption) de la gouvernance ne sont pas abordés. Guan & Chen (2012) analysent l'effet de l'existence d'un environnement juridique propice au développement technologique sur l'efficacité du système national d'innovation dans 22 pays de l'OCDE, en considérant comme Lee et al. (2019) et Kao (2017, un processus d'innovation à deux phases : une phase de production d'innovation et une phase de commercialisation de l'output. Les auteurs montrent que l'environnement juridique affecte positivement et significativement l'efficacité à la fois de production et de commercialisation de l'innovation. ...
... L'on note que les travaux effectués sur des données de pays en développement s'avèrent relativement peu nombreux malgré le retard observé de ces pays en matière d'innovation, et la nécessite d'une meilleure gestion des mécanismes permettant une transformation optimale des inputs d'innovation en output. Au niveau des entreprises, Lee et al. (2019) analysent l'effet de la collaboration en matière de R&D et de technologie sur l'efficacité de production d'innovation dans les petites et moyennes entreprises (PME) Sud Coréennes. Cette collaboration s'avère importante pour les PME car celles-ci font généralement face à des contraintes financières rendant difficile l'investissement individuel dans la R&D et la technologie (Brunswicker & Vanhaverbeke 2015). ...
Thesis
This PhD thesis is composed of three essays on the economics of innovation. The first essay studies the determinants of the decision to innovate of formal and informal firms in Côte d'Ivoire, and considers the manager's tenure (MT) and employees' involvement in decision-making (EIDM) as the variables of interest. Results from a maximum likelihood (ML) estimation of a bivariate Probit model show a positive effect of EIDM on both technological and non-technological innovations, and a curvilinear relationship between the MT and these two forms of innovation. The second essay analyzes the determinants of R&D in formal firms in Côte d'Ivoire, by focusing on the competitive pressure from the informal sector (CPIS), the effect of innovation on prices (EIP), and employees' training about innovation and information and communication technologies (TICT). Five microeconometric models are estimated in a ML framework: a bivariate recursive Probit, a Tobit with an endogenous explanatory variable, a standard Probit, a type 1 Tobit, and a type 2 Tobit. Results show that CPIS can have both positive and negative effects depending on the extent of the problem it constitutes for firms. TICT has positive effects on R&D, and firms engage more in R&D when innovation leads them to be price competitive. The third essay studies innovation technical efficiency in the ECOWAS area (Economic Community of West African States) and the effect of governance on it, by distinguishing between residual (i.e. short-term) efficiency, persistent (i.e. long-term) efficiency, and overall efficiency. A stochastic frontier analysis is carried out using a multi-step procedure, and a fractional response model is estimated using both Bernoulli quasi-ML and GEE (Generalized Estimating Equations) methods. Results show that ECOWAS countries are all inefficient considering the three types of technical efficiency, excepted for Côte d'Ivoire which exhibits a long-term efficiency. Short-term and overall efficiencies are affected by the control of corruption (curvilinear relationship) and quality of regulation.
... Bu nedenle özellikle uluslararası firmalarda inovasyon süreci ve bilgi transferi önemli bir rol oynamaktadır. Lee ve arkadaşları [3], teknolojinin ve rekabetçiliğin hızla değiştiği iş ortamında işletmelerin hayatta kalması için inovasyonun kritik bir faktör haline geldiğini belirtmişlerdir. ...
... Araştırmada rekabetçilik, çevre, belirsizlik ve inovasyon faktörleri hedef maliyetlendirme kapsamında değerlendirilmiştir. Kore'de küçük ve orta ölçekli firmalarda araştırma ve geliştirme çalışmalarında inovasyon etkinliğini ölçmek için işbirliği sınıflarının ve iş birliği stratejilerinin incelemesinde Veri Zarflama Analizi ve kümeleme analizi teknikleri kullanılmıştır [3]. Proksch ve arkadaşları [21] ulusal sağlık sistemlerinin inovasyon seviyelerinin belirlenmesi için Ward's tekniğini kullanarak kümeleme analizi gerçekleştirmiştir. ...
... In the literature, data envelopment analysis (DEA) has been widely applied to measure the performance of high-tech industry (see [2,28]). Initiated by Charnes et al. [5], DEA is a nonparametric approach for measuring the relative efficiency of peer decision making units (DMUs) with multiple inputs and outputs (see [13]). ...
... As shown in Table 2, in the cooperative case, the Chinese high-tech industry has similar average efficiency scores in the overall efficiency, RDS efficiency, and CS efficiency, i.e., 0.800, 0.839 and 0.754, respectively. This observation implies that the 4 For more similar assumption (see [28]) 5 The following is the detailed efficiencies of 29 provinces in China (2012-2016): https://data. mendeley.com/datasets/y6h8mskf2w/2. ...
... It is consistent with other studies that show a dramatic contrast in efficiency scores at different sub-processes. For instance, Lee et al. [62] assessed the efficiencies of Korean small firms at two subprocesses, such as R&D and commercialization, over the period of 2009-2014, and the average scores were 10.2-14.6% for R&D and 64.9-65.2% for commercialization. ...
... Although it is not directly comparable, the commercialization efficiency of this study was somewhat smaller than those of other studies. In addition to Lee et al. [62], Alvarez and Crespi [63] explored the efficiency of Chilean small manufacturing firms, and the average score was 65%. Grilo and Santos [64] examined the efficiency of Portuguese technologybased start-ups from 2009 to 2011, and the average score was 75.15%. ...
Article
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Sustainable public procurement plays an important role in addressing not only environmental but also economic and social issues through government acquisitions from technology-based small suppliers. In this context, the objective of this study is to better understand the holistic public procurement process by assessing the operational efficiency of technology-based small suppliers and associating the economic aspect of public procurement with the social aspect, such as women-owned businesses. To this end, we analyzed U.S. Department of Defense Small Business Innovation Research grantees by combining network data envelopment analysis with bootstrap truncated regression analysis. Drawing on the analysis results, we found that (1) there is heterogeneity in the performance of research and development, network building, and commercialization sub-processes, and (2) there is a positive relationship between the overall performance and women-owned small suppliers who excel particularly in network building. The former implies that small suppliers may have different expertise in the chain of public procurement; the latter suggests that woman entrepreneurs with a business network may be able to outperform their counterparts in the public procurement market.
... DEA has attracted considerable attention after the introduction and has been widely used in various sectors including energy [3], innovation [4,5], environment [6], agriculture [7], and banking [8] as a decision support tool. More applications of DEA can be found in Emrouznejad and Yang [9] and Liu et al. [10]. ...
Article
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Ranking of efficient decision-making units (DMUs) using data envelopment analysis (DEA) results is very important for various purposes. We propose a new comprehensive ranking method using network analysis for efficient DMUs to improve the discriminating power of DEA. This ranking method uses a measure, namely dominance value, which is a network centrality-based indicator. Thus far, existing methods exploiting DMU’s positional features use either the superiority, which considers the efficient DMUs’ relative position on the frontier compared to other DMUs, or the influence, which captures the importance of the DMUs’ role as benchmarking targets for inefficient DMUs. However, in this research, the dominance value is the compounded measure of both core positional features of DMUs. Moreover, a network representation technique has been used to ensure the performance of the dominance value compared to the superiority and influence. To demonstrate the proposed ranking method, we present two examples, research and development (R&D) efficiency of small and medium-sized enterprises (SMEs) and technical efficiency of plug-in hybrid electric vehicles (HEVs). Through these two examples, we can see how the known weaknesses and the unobserved points in the existing method differ in this new method. Hence, it is expected that the proposed method provides another new meaningful ranking result that can show different implications.
... Other important studies are those of [19][20][21][22]. The strings for the application of DEA in intellectual property (IP) are more restricted. ...
Article
This investigation aimed to delineate a frontier of maximum efficiency in the potential production of new technologies under the countries’ intellectual property assets, conditioned to the main research inputs (expenses in research and development (R&D) and specialized labor in research). Using data envelopment analysis, we sought to identify technical efficiency measures reached by 74 nations in the relative use of these inputs and measure the existence of possible leftovers of inefficient inputs at the end proposed here. The results elucidate the global context of the sub-optimal application of spending on R&D and the number of researchers in different degrees in time and space, which confirms the hypothesis suggested in this investigation. In this direction, some seem to seek readjustments in the bases of these inputs, moving, each period, to the most efficient specific combinations, whereas others, however, follow the opposite path. This occurs in all income strata and, therefore, regardless of economic size. However, it is still in the poorest countries that there is the greatest risk of the non-optimal use of research inputs in the sense of producing new patented technological inventions, although this is also the reality of some wealthy nations on the planet. This mismatch between the potential capacity for the production of legally protected knowledge and the one effectively used, which makes technological progress—under the mechanism of the intellectual property of these economies—increasingly late and more complex, significantly weakening the displacement of the frontier of the codifiable and its beneficial dissemination on intellectual property systems.
... Fig. 1 presents the general structure of the two-stage process, where the content in brackets can be added or removed according to differences between two-stage structures. This is important since the two-stage structure can be applied to a number of settings, e.g., in bank profitability and marketability processes (Fukuyama and Weber, 2010), front office and on-field competition processes in major-league baseball (Lewis et al., 2013), premium acquisition and profit generation processes of non-life insurance companies (Kao and Hwang, 2008), buyer-seller supply chains (Alvarez-Rodriguez et al., 2019), and research and development as well as commercialization processes of enterprises (Lee et al., 2019). ...
Article
Industrial solid waste (ISW) harms the eco-environment as well as human health; thus, both the generation and treatment processes of ISW are important aspects of a reduction of discharged ISW. Currently, only part of the generated ISW is treated, while the remainder is stored for later treatment, which is referred to as carry-over between two adjacent periods. According to such a two-stage process (with carry-over), a network slacks-based measure model is proposed to measure the overall and divisional efficiencies of 30 Chinese regions during 2011–2015. The main findings are summarized in the following: firstly, failing to consider carry-over underestimates both overall and divisional efficiencies. Secondly, the average annual generation efficiency exceeded the average annual treatment efficiency during the study period; however, this gap increasingly narrowed. Thirdly, the overall efficiency is more closely related to the treatment efficiency than to the generation efficiency. Moreover, synergies were identified between generation efficiency and treatment efficiency for each region. Fourthly, significant regional differences affect both overall and divisional efficiencies, and significant stage efficiency differences also affect both coastal and inland areas. To increase the overall efficiencies of different regions of China, different policies are suggested.
... Only three of these ten measures were known, namely percentage of collaborative projects with third parties , number of alliances dedicated to technological innovation , and externally built network (Kerssensvan Drongelen & Bilderbeek, 1999). This is surprising given the fact that most respondents' firms are mid-sized firms with an international business perspective engaging in various inbound and outbound R&D activities (as defined by Gassmann & Enkel, 2004 internal firm needs, i.e. external to the R&D department, might play a major role in assessing R&D performance or collaboration efficiency (Lee et al., 2019). ...
Article
Full-text available
Research on R&D performance measures applied in firms is still scarce. Based on the established “R&D laboratory as a system” thinking, systematically derive and identify R&D department level key performance measures. Through a mixed‐method approach, grounded in (1) literature and (2) text analysis, 154 R&D performance measures were developed. Amongst those, an (3) online expert survey, as well as (4) three independent focus group workshops with >40 industry experts from more than ten industries identified and validated ten key R&D performance measures. All industry experts involved are members of an innovation network, additionally accounting for innovation network effects. In contrast to earlier research, some of the measures like degree of anticipation of internal customer needs were perceived both by the survey respondents and the focus groups as key measures, indicating that behavioral measures should not be excluded per se. However, the importance of external validity of R&D performance or indicators to measure performance in relation to activities outside the R&D department were not confirmed. Hence, we partly confirm the relevance of the original “R&D Lab” measures, contributing a more granular level, thereby drawing implications for future research and practice.
... As shown in Table 1, all these studies measure efficiency as a ratio between the weighted sum of the outputs and inputs of DMUs (Fuentes et al. 2016). Besides, they all construct the input, contextual, and output variables as critical starting points to evaluate efficiency (Charnes et al. 1978;Li et al. 2018;Lee et al. 2019). The input variables should be the factors or components that contribute to those outputs, while the output variables should reflect the primary objective for evaluation (Li et al. 2019). ...
Article
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The technical innovation efficiency of farmer professional cooperatives has a far-reaching impact on the economic transformation and development in rural China, but it has been rarely studied. Addressing this gap, this article builds an index evaluating system for the technical innovation efficiency of provinces through a three-stage data envelopment analysis model that measures the relative efficiency of the technical innovation of cooperatives in China’s thirty-one provinces. The results show that the Eastern and Central provinces in China are more efficient than the Western provinces in terms of the technical innovation efficiency of farmer professional cooperatives. However, due to the lack of sustainable innovative capability of these cooperatives, investment redundancy is common in technical innovation. Besides, the impact of the external technology environment on the technical innovation of provincial farmer professional cooperatives is significant, and the scale of the rural market greatly incentivizes the cooperative technical innovation. Some policy suggestions are accordingly proposed.
... Furthermore, this also confirms that that IPRs were not significant drivers of technological advancement and that in fact also justified by previous studies (see Acemoglu, Gancia, & Zilibotti, 2012;Cimoli, Fleitas, & Porcile, 2013;Auriol, Biancini, & Paillacar, 2019). Moreover, Jiyoung, Chulyeon, and Gyunghyun (2019) also mentioned that efficiency of R&D increase with the innovation intensity in small and medium enterprises in Korea. They suggested that firms should integrate the R&D outputs into their own innovation process which requires absorption capacity by incorporating innovation capability. ...
Article
With the pace of development and competitiveness, innovation plays an important role to capture the market share. Various countries have effective strategies to enhance Research and Development (R&D) and exchange value added products in international market. So, based on this the aim of this research is to examine the role of R&D, industrial design and charges for intellectual property in innovative exports in South Korean economy. Time series data for the period 1998 to 2017, Ordinary Least Square (OLS) and Generalized Method of Moments (GMM) models are used to determine the dynamic interrelationship among the study variables. In summary, the overall results show that there is co-integration rank of in both trace test and value test at 1% significance level. Moreover, OLS and GMM findings depict that there is significant and positive coefficient for ID & RD which represent that they have positive impact on HT. Whereas, the IP displays a negative and significant relationship with high technology exports accordingly. Lastly, the diagnostic tests show that model is stable for the study time period and result is reliable. The current study also suggests some policy implications which can enhance innovative export products of South Korea while enhancing R&D.
... Many scholars start from "promoting collaboration", and research when companies develop innovative products, how information asymmetry and procurement contract strategies interact in the production process and thus affect the motivation of all parties in the supply chain to cooperate (Kim & Netessine, 2013); and research the impact of retailers' choice of cooperative or non-cooperative suppliers on supply chain performance when suppliers are responsible for investing in eco-efficient innovations (Yenipazarli, 2017). There are also many scholars starting from "promoting innovation", studying innovation sharing and protection among supply chain partners (Nasr et al., 2015), the relationship between innovation, economic development and platform control (Parker & Van Alstyne, 2017), the efficiency of collaborative innovation in the joint R&D of Korean SMEs (Lee et al., 2019), and other issues. This article studies the collaborative innovation of smart logistics value-added services. ...
Article
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In a two-tier supply chain consisting of a smart logistics platform and a smart logistics provider, for value-added service innovation in logistics, there are usually two innovation modes: collaborative innovation (CI) in the supply chain and independent innovation by the provider. In this study, we research the strategic choice of the platform about whether to co-innovate with the provider when the platform requires the provider to innovate new value-added services. By building a two-tier supply chain game model, this study focuses on the influence of leadership and smart level on the platform's CI strategy. This study obtains many interesting findings. Firstly, we give the cost thresholds for the platform to choose CI under different relationships, with higher thresholds under the provider-led relationship compared to Nash and platform-led relationships, the platform is most likely to choose CI under the provider-led relationship, while most difficult to choose under Nash relationship. Secondly, we find that under Nash and platform-led relationships, the platform's participation in the CI will lead to an increase in both parties' profits, so that the CI can be achieved, but under the provider-led relationship, there may be a situation where the platform's profits increase and the provider’s profits decrease when the two parties co-innovate, and since under this relationship it is easiest for the platform to choose to participate in the CI, the platform can choose a cost-sharing contract to solve this problem and achieve CI. Thirdly, with the same leadership, the higher the smart level of the provider is, the more incentive the platform is to participate in CI. If the smart level of the provider is very low or the smart level of the platform is very high, the platform will never participate in CI, regardless of the leadership.
... While constituting elements of inputs, intervening processes, and outcomes may differ according to context; the three-stage input-process-output framework is frequently applied for understanding innovation in varied domains, e.g. Lee, Kim, and Choi (2019), Diéguez-Soto, Garrido-Moreno, and Manzaneque (2018), Parthasarthy and Hammond (2002), Brown and Karagozoglu (1989). Therefore, our research affirms that, by definition, innovation is a multistage process. ...
Article
We offer a qualitative synthesis of 208 definitions of innovation using a grounded theory approach to arrive at a unified definition of innovation. The data analysis provided seven broad themes underlying the definitions of innovations, i.e., creative potential, motivation, action, psychological processes, ecological processes, newness, and outcomes in the form of value creation, competitive advantage, harnessing of technology or invention, and economic growth. A code co-occurrence analysis suggests newness as the most commonly occurring and consistently connected theme across sample definitions. We analyze the association between derived themes within the broad relational framework of input, intervening processes, and output to derive an integrative definition. We define innovation as the operationalization of creative potential with a commercial and/or social motive by implementing new adaptive solutions that create value, harness new technology or invention, contribute to competitive advantage and economic growth. The present research contributes toward a unified definition of innovation.
... 6 Specifically, to guarantee the feasibility of our concerned models, according to Proposition 1, we set ε = 10 −8 . In addition, followingLee et al. (2019), our study focuses primarily on the VRS condition. ...
Article
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This paper proposes a lexicographic decomposition strategy for the two-stage network DEA model. Instead of assigning a priority over the two component stages, our proposed approach employs a lexicographic algorithm in such a way that the system efficiencies of the DMUs are lexicographically computed for each of their possible sequences while maintaining the efficiencies of those units already investigated unchanged. In particular, the system efficiency and the two component efficiencies can be uniquely determined under our proposed decomposition approach. Besides, prior to implement the proposed lexicographic evaluation procedure, we also highlight a potential infeasibility problem arising from the normalization constraint, and develop a modified iterative approach that facilitates us to guarantee a feasible search procedure. Finally, we use a numerical example to illustrate the effectiveness of the proposed approach, and conduct an empirical study to analyze China’s regional high-tech innovation systems for the period of 12th Five-Year Plan (2011–2015).
... Experimental results informed when and how managerial policies enhance the coordination among network members concerning achieving technical efficiency. According to Lee et al. (2019), relatively few studies have analyzed the efficiency relative to the effort made, such as through R&D investments. Thus, they explored the innovation efficiency of small and medium-sized businesses. ...
Article
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This paper evaluates the efficiency level of medical spa businesses operating in Slovakia. The research aims to compile an efficiency ranking of these specific healthcare facilities to apply both methods and analyze their alternative use within the efficiency level measurement. The object of research is the Slovak spa businesses over the years 2014-2018. The study involved the Simplex Method of Linear Programming and the selected Data Envelopment Analysis model. In the study frame, the authors quantified the efficiency of medical spa businesses as the optimization task of SMPL and BCC input-oriented DEA model to identify prosperous businesses from non-prosperous ones. The study applied the Spearman rank correlation to reveal a potential degree of association of business rankings. The calculations were provided by the MS Excel, MS Excel Solver package, and the statistical program Gretl. The findings indicated that the business efficiency measured by SMPL provided similar results to the DEA model. These methods could be considered equivalent. Therefore, their alternative use was confirmed. The obtained results showed that both methods almost equally divided the businesses into two groups: 1) with efficiency score above (10 DMUs) and 2) below the overall achieved average (11 DMUs). According to the average results of both applied methods, the most efficient DMUs were DMU09 (Spa Lúcky, j.s.c.) and DMU03 (Spa Bojnice, j.s.c.), vice versa, the lowest efficiency score was achieved by DMU04 (Spa Brusno, j.s.c.). This research could be considered an important opportunity to identify new gaps in the prior literature and present the need for further development in these specific healthcare facilities, not only in Slovakia. The presented research findings are also beneficial for practice as they may lead to the formulation of recommendations for improvement of the current state of Slovak spa tourism and the spa businesses themselves.
... For example, the efficiency of R&D collaboration increases as technology intensity increases. (Lee et al., 2019); R&D productivity in high-tech sectors declines more slowly than in low-tech sectors (Kim, 2018), and higher levels of technological intensity allow companies to achieve greater capacities for innovation and internationalization (Muñoz Guarasa and Fischer, 2020). ...
Article
Purpose The purpose of this study is to investigate the factors that impede innovation in Colombian manufacturing firms, as measured by the level of technological intensity. Design/methodology/approach The authors used data from 1,850 firms to determine the barriers associated with information and internal capabilities, risks and environment. Findings The main results of this study confirm that potentially innovative firms of low technological intensity are more likely to ascribe high importance to obstacles associated with information and internal capabilities, when compared with innovative firms. The abandonment of innovative projects, family-operated enterprises and investment in R&D are all related to an increased perception of obstacles to innovation, while investments in information and communication technologies have an opposite effect. Variables as partnerships and export behaviour, have different effects depending on the level of technological intensity. Originality/value This study investigates the obstacles to innovation of a firm as determined by its characteristics and as measured against its level of technological intensity. Previous studies have investigated barriers to innovation in technologically advanced sectors (Lachman and López, 2019) and technology-based SMEs (De Moraes Silva et al. 2020) or how the technological intensity of the firm determines access to university knowledge for overcoming barriers (Kanama and Nishikawa, 2017). The only study to analyse barriers to innovation by measuring a firm’s technological intensity was conducted into Mexican manufacturing and services sector companies by Santiago et al. (2017).
... Raab et al. [2] used DEA model to study the technological innovation efficiency of 50 states in the United States in 2002. Lee et al. [3] used DEA Malmquist productivity analysis to evaluate and compare the innovation efficiency differences among different collaboration types of SMEs in South Korea, and different technological innovation intensities require differentiated collaborative strategies. With the deepening of research, some scholars begin to pay attention to the internal transformation process of industrial innovation system to open the "black box" of decision-making units used in single level DEA. ...
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Chapter
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Global economic uncertainty, low growth and business complexity have put firms at risk of survival. Enterprises pursue sustainable growth and innovation through strategic technology management, but they are suffering from a lack of information on TOD(technology opportunity discovery) and the absence of diversification strategy for new business. It is necessary to conduct a TOD to find promising industry and technology that are conditions for future companies. In addition , TOD of healthcare technologies using M&A(mergers and acquisitions) transactions data have not been reported yet. Therefore, this study proposes a new methodology for exploring technological opportunities using M&A transactions data in healthcare industry. First, we theoretically confirm whether all M&A transactions are related to promising areas. Second, we analyze the global M&A trends by a time series analysis of M&A transactions by sectors over the last 20 years. Third, the association analysis was conducted using the number of M&A transactions between sectors, industries, and health-care technologies to determine the degree of M&As connection. As a result, the overall trends of promising industry and healthcare technology could be identified. Also, It is expected that it will be used effectively to establish sustainable management strategy, business diversification strategy and technology strategy (research and development portfolio strategy, technology road map) in the future through the exploration of technology opportunity using the M&A transactions data.
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Purpose The purpose of this study is to measure and analyze the national innovation efficiency of organisation for economic co-operation and development (OECD) countries. This is to determine to what extent OECD countries efficiently use the elements that enable innovation activities possible in generating innovation outputs. Design/methodology/approach An input–output model was constructed to measure efficiency. The inputs and outputs in the research model are the input and output sub-indices of the Global Innovation Index. Data envelopment analysis was used to measure the national innovation efficiency levels of OECD countries. Findings The results show that national innovation efficiency is generally high in OECD countries. However, some countries lag behind in innovation efficiency. OECD countries’ ability to create and provide the elements that enable innovation activities is higher than their ability to create innovation outputs. OECD countries have a good innovation environment and a high level of resources, but they should focus on how to create more innovation outputs. Originality/value This study presents a measurement of national innovation efficiency of OECD countries which contributes “Innovation Strategy” agenda. The results empirically show that overall innovation indices cannot be the only indicator of the performance of national innovation systems. In this study, an innovation efficiency/performance matrix is constructed to present the relative positions of the countries to help in examining countries’ strengths, weaknesses and potentials based on innovation efficiency and innovation performance simultaneously. This study contributes to the literature by presenting a broader perspective and measurement of national innovation efficiency by taking an extensive number of indicators into account.
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Open innovation has so far been studied mainly in high-tech, Multinational enterprises. This exploratory paper investigates if open innovation practices are also applied by small- and medium-sized enterprises (SMEs). Drawing oil I database collected from 605 innovative SMEs in the Netherlands, we explore the incidence of and apparent trend towards open innovation. The survey furthermore focuses oil the motives and perceived challenges when SMEs adopt open innovation practices. Within the survey, open innovation is measured with eight innovation practices reflecting technology exploration and exploitation in SMEs. We find that the responding SMEs engage in many open innovation practices and have increasingly adopted such practices during the past 7 years. In addition. we find no major differences between manufacturing and services industries, but medium-sized firms are oil average more heavily involved in open innovation than their smaller counterparts. We furthermore find that SMEs Pursue open innovation primarily for market-related motives such as meeting customer demands, or keeping LIP with competitors. Their most important challenges relate to organizational and Cultural issues as a consequence of dealing with increased external contacts.
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This research investigates innovation in Brazil, one of the largest emerging economies in Latin America. More specifically, we aim to understand how innovation activities conducted in Brazilian industrial sectors (innovation input) are related to and affect innovation results (innovation output). The paper presents a quantitative analysis of a comprehensive nation-wide, government-sponsored innovation survey (PINTEC), covering more than 30,000 companies and 34 industrial sectors. Data from PINTEC reports were analyzed by means of PCA and 2SLS regression. Our results show that Brazilian industry tends to adopt two main opposite innovation strategies: market-orientation or technology-acquisition. The market-orientation strategy prioritizes internal and external R&D activities as well as commercialization and product launch activities; these activities showed a positive effect on innovation output. On the other hand, a technology-acquisition strategy based on industrial machinery and equipment acquisition showed a negative effect on innovation output. Moreover, our results show that innovation efforts that concentrate investments on software acquisition also generate negative results on innovation outputs. Our results shed light on critical aspects of innovation in the Brazilian emergent economy that provide insights and contributions for both managers and policy makers.
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This paper explains some drawbacks on previous approaches for detecting influential observations in deterministic nonparametric Data Envelopment Analysis (DEA) models as developed by Yang et al. (2010). For example efficiency scores and relative entropies obtained in this model are unimportant to outlier detection and the empirical distribution of all estimated relative entropies is not a Monte-Carlo approximation. In this paper we developed a new method to detect whether a specific DMU is truly influential and a statistical test has been applied to determine the significance level. An application for measuring efficiency of hospitals is used to show the superiority of this method that leads to significant advancements in outlier detection.
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Abstract An efficiency-oriented analysis of regional innovation systems will enhance the public’s understanding of their operational ‘quality’, help policymakers in benchmarking innovation performance, and thereby improve policymaking. This study proposes a coherent two-step analytical procedure for modelling the efficiency performance of regional innovation systems and its determinants. The first step of the procedure involves measuring efficiency associated with a sophisticated network data envelopment analysis model, which accounts for the linkages between the two disaggregated sub-processes, namely an upstream technological creation process (TCrP) and a downstream technological commercialisation process (TCoP), during a technological innovation process (TIP). The procedure simultaneously deals with overall TIP efficiency as well as the two component TCrP and TCoP efficiencies in a united framework. In the second step of the procedure, the paper examines the effects of policy-oriented environmental factors on the respective efficiency scores of the three processes (TIP, TCrP, and TCoP) associated with a flexible partial least squares regression. We apply the two-step hybrid analytical procedure to China’s province-level regional innovation systems. Our empirical study shows that China’s regional innovation systems perform poorly in both technological creation efficiency and technological commercialisation efficiency at the provincial average level. This awkward situation is attributed to unfavourable environmental factors. Our findings indicate that the embedded and contextualised policy-oriented environment does not effectively suit the TIP within China’s regional innovation systems.
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In this paper we explore how small and medium-sized enterprises (SMEs) engage in external knowledge sourcing, a form of inbound open innovation. We draw upon a sample of 1,411 SMEs and empirically conceptualize a typology of strategic types of external knowledge sourcing, namely minimal, supply-chain, technology-oriented, application-oriented, and full-scope sourcing. Each strategy reflects the nature of external interactions and is linked to a distinct mixture of four internal practices for managing innovation. Both full-scope and application-oriented sourcing offer performance benefits and are associated with a stronger focus on managing innovation. However, they differ in their managerial focus on strategic and operational aspects.
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The focus of this paper is on exploring linkages among Open Innovation practices and firm performance. While, in the last ten years, a certain amount of papers facing such issue has been published, most of them treat inbound, outbound, and coupled innovation practice processes separately respect to different dimensions of innovation and financial performance. We argue that the concurrent influence of specific Open Innovation practices on both innovation and economic-financial firms' performance has not been investigated so far into the literature and it is of primary managerial importance. We empirically test our framework on a sample of 105 companies listed on the Industrial Machinery and Component index of NASDAQ.
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Although a large amount of past research has theorized about the character of national innovation systems (NISs), there has been limited process-oriented empirical investigation of this matter, possibly for methodological reasons. In this paper, we first propose a relational network data envelopment analysis (DEA) model for measuring the innovation efficiency of the NIS by decomposing the innovation process into a network with a two-stage innovation production framework, an upstream knowledge production process (KPP) and a downstream knowledge commercialization process (KCP). Although the concept of innovation efficiency is a simplification of the innovation process, it may be a useful tool for guiding policy decisions. We subsequently use a second-step partial least squares regression (PLSR) to examine the effects of policy-based institutional environment on innovation efficiency, considering statistical problems such as multicollinearity, small datasets and a small number of distribution assumptions. The hybrid two-step analytical procedure is used to consider 22 OECD (Organisation for Economic Co-operation and Development) countries. A significant rank difference, which indicates a non-coordinated relationship between upstream R&D (research and development) efficiency and downstream commercialization efficiency, is identified for most countries. The evidence also indicates that the overall innovation efficiency of an NIS is mainly subject to downstream commercial efficiency performance and that improving commercial efficiency should thus be a primary consideration in future innovation policy-making in most OECD countries. Finally, the results obtained using PLSR show that the various factors chosen to represent the embedded policy-based institutional environment have a significant influence on the efficiency performance of the two individual component processes, confirming the impact of public policy interventions undertaken by the government on the innovation performance of NISs. Based on these key findings, some country-specific and process-specific innovation policies have been suggested.
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CHEN K. and GUAN J. Measuring the efficiency of China's regional innovation systems: application of network data envelopment analysis (DEA), Regional Studies. This study applies a relational network data analysis envelopment to the systematic evaluation of the innovation efficiency of China's regional innovation systems by decomposing the innovation process into the two connecting sub-processes, technological development and subsequent technological commercialization. The results show that only one-fifth of China's regional innovation systems are operating on the empirical best-practice frontier during the whole process from technological development to commercialization. Furthermore, it is found that substantial inconsistencies exist between technological development capacity and commercialization capacity in most regional innovation systems, and that downstream commercialization capacity plays a more important role in the innovation performance of regional innovation systems.
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A central part of the innovation process concerns the way firms go about organizing search for new ideas that have commercial potential. New models of innovation have suggested that many innovative firms have changed the way they search for new ideas, adopting open search strategies that involve the use of a wide range of external actors and sources to help them achieve and sustain innovation. Using a large-scale sample of industrial firms, this paper links search strategy to innovative performance, finding that searching widely and deeply is curvilinearly (taking an inverted U-shape) related to performance. Copyright © 2005 John Wiley & Sons, Ltd.
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In this paper, we present a new clustering method that involves data envelopment analysis (DEA). The proposed DEA-based clustering approach employs the piecewise production functions derived from the DEA method to cluster the data with input and output items. Thus, each evaluated decision-making unit (DMU) not only knows the cluster that it belongs to, but also checks the production function type that it confronts. It is important for managerial decision-making where decision-makers are interested in knowing the changes required in combining input resources so it can be classified into a desired cluster/class. In particular, we examine the fundamental CCR model to set up the DEA clustering approach. While this approach has been carried for the CCR model, the proposed approach can be easily extended to other DEA models without loss of generality. Two examples are given to explain the use and effectiveness of the proposed DEA-based clustering method.
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Globalisation has systemically affected the way all firms undertake innovation. First, there has been a growing use of non-internal technology development, both by outsourcing and strategic alliances. Second, products are increasingly multi-technological. This has led to the growing use of networks by all firms, previously a primary competitive advantage of SMEs. These developments have created both opportunities and threats for the SME. On the one hand, large firms have increasingly sought out SMEs as they have developed their use of external networks. On the other hand, by doing so, larger firms are able to avail themselves of the flexibility long enjoyed by SMEs. This is particularly so in the electronics hardware-based sector, where we have evaluated the R&D activities of both large and small firms. Although SMEs continue to have the advantages of flexibility and rapid response, the traditional disadvantages due to size limitations may have worsened due to the demand for multiple technological competences and by increased competition.
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In spite of increasing interest in open innovation, discussion about the concept and its potential application to the SME sector has been excluded from mainstream literature. However, given that the argument about the effect of firm size on the effectiveness of innovation is still ongoing, it is worth addressing the issue from an SME perspective. That is the focus of this article, which seeks, firstly, to place the concept of open innovation in the context of SMEs; secondly to suggest the input of an intermediary in facilitating innovation; and finally to report accounts of Korean SMEs’ success in working with an intermediary. The research results support the potential of open innovation for SMEs, and indicate networking as one effective way to facilitate open innovation among SMEs.
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In this paper, we argue that the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities. We label this capability a firm's absorptive capacity and suggest that it is largely a function of the firm's level of prior related knowledge. The discussion focuses first on the cognitive basis for an individual's absorptive capacity including, in particular, prior related knowledge and diversity of background. We then characterize the factors that influence absorptive capacity at the organizational level, how an organization's absorptive capacity differs from that of its individual members, and the role of diversity of expertise within an organization. We argue that the development of absorptive capacity, and, in turn, innovative performance are history- or path-dependent and argue how lack of investment in an area of expertise early on may foreclose the future development of a technical capability in that area. We formulate a model of firm investment in research and development (R&D), in which R&D contributes to a firm's absorptive capacity, and test predictions relating a firm's investment in R&D to the knowledge underlying technical change within an industry. Discussion focuses on the implications of absorptive capacity for the analysis of other related innovative activities, including basic research, the adoption and diffusion of innovations, and decisions to participate in cooperative R&D ventures.
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Using World Bank ICS data from Brazilian manufacturing firms, this paper identifies innovation strategies of firms - in particular internal technology creation (make) and external technology acquisition (buy)- and their effect on successful process and product innovations. It also explores the importance of innovations for firm growth. Successful process and product innovations occur mostly through technology acquisition, mostly embodied in machinery and equipment, either alone or in combination with internal technology development. The option of only relying on internal development is less performing. The results indicate that innovative performance is an important driver for firm growth. It is particularly the combination of product and process innovations that significantly improves firm growth. Both innovation and growth performance are supported by access to finance. Skills of workforce and management matter, but not necessarily tertiary education levels. The impact of international linkages on innovative and growth performance is mixed.
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This paper develops index number procedures for making comparisons under very general circumstances. Malmquist input, output, and productivity comparisons are defined for structures of production with arbitrary returns to scale, substitution possibilities and biases in productivity change. For translog production structures, Törnqvist output and input indexes are shown to equal the mean of two Malmquist indexes. The Törnqvist productivity index, corrected by a scale factor, is shown to equal the mean of two Malmquist productivity indexes. Similar results are given for making cost of living comparisons under general structures of consumer preferences.
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Evaluating the efficiency of innovation systems can serve as a substantial enabling tool for policymaking serving to identify best practices and develop potential improvements of actions and strategies. It also serves to provide valuable insight in understanding the nature and dynamics of innovation process at its different stages and levels. The main aim of the paper is to present an integrated assessment and classification framework for national and regional innovation efficiency. The proposed model is based on Data Envelopment Analysis and is formulated as a multiobjective mathematical program in order to consider the objectives and constraints of the different stages and levels of the innovation process. Additionally, the model copes with DEA inconsistencies when ratio measures are employed. In the second part of the study, a multicriteria decision aid approach, based on an ordinal regression model, is applied in order to study how environmental factors on innovation and entrepreneurship affect the estimated efficiency scores. The proposed approach is applied to a set of 23 European countries and their 185 corresponding regions. The results show that there are large differences regarding the efficiency scores of the different stages and levels, implying the existence of significant divergences from the expected norm concerning innovation efficiency. The contribution of the paper lies (i) in the proposed multiobjective model, which is able to model the multiple stages and levels of the innovation process and handle ratio measures without requiring the same set of inputs and outputs at different levels and (ii) in the presented application of the model in the efficiency evaluation of innovation systems, including a meta-analysis of the results based on the framework of the Quadruple Innovation Helix. Such an approach may provide a valuable tool for country/region comparison and policy formulation.
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This paper proposes a new approach to tackle the innovation–performance relationship. It addresses the, so far, mixed and inconclusive results of studies analyzing this relationship. We argue that the undifferentiated use of innovation inputs and outputs to measure firm innovativeness is not without problems, and that, from a productive perspective, they should be simultaneously analyzed. This study follows a two-stage empirical analysis using a sample of Spanish manufacturing firms for the period 1992–2005. By examining two inputs and two outputs of the innovation process in the first stage, we estimate technological innovation efficiency by means of an intertemporal data envelopment analysis (DEA) bootstrap and also observe the yearly efficiency changes based on a global Malmquist index. In the second stage we analyze the effect of technological innovation efficiency on firm performance through a generalized method of moments (GMM) system. The results support our arguments that the best measurement of outcomes of technological innovations is through the efficiency with which they are developed. In addition, we test the moderating effect of technological intensity level and firm size on the efficiency–performance relationship.
Article
To cope with fast-changing business environments, firms are increasingly opening up their organizational boundaries to tap into external source of knowledge. By restructuring their R&D system, firms face the challenge of balancing internal and external R&D activities to profit from external knowledge. This paper examines the influence of R&D configuration on innovative performance and the moderating role of a firm's R&D capacity.The findings suggest that firms that increasingly rely on external R&D activities have a better innovative performance, yet up to a point. Beyond this threshold, a greater share of external R&D activities reduces a firm's innovative performance. And such substitution effect is larger for firms with greater R&D capacity. Overall, this paper provides a better understanding of the open innovation paradigm by suggesting that the opportunity cost for further opening up R&D borders is higher for firms with a superior technological knowledge stock.
Article
The K-means algorithm and the normal mixture model method are two common clustering methods. The K-means algorithm is a popular heuristic approach which gives reasonable clustering results if the component clusters are ball-shaped. Currently, there are no analytical results for this algorithm if the component distributions deviate from the ball-shape. This paper analytically studies how the K-means algorithm changes its classification rule as the normal component distributions become more elongated under the homoscedastic assumption and compares this rule with that of the Bayes rule from the mixture model method. We show that the classification rules of both methods are linear, but the slopes of the two classification lines change in the opposite direction as the component distributions become more elongated. The classification performance of the K-means algorithm is then compared to that of the mixture model method via simulation. The comparison, which is limited to two clusters, shows that the K-means algorithm provides poor classification performances consistently as the component distributions become more elongated while the mixture model method can potentially, but not necessarily, take advantage of this change and provide a much better classification performance.
Article
Prior studies suggest that open innovation activities positively influence innovation outcomes in large firms. However, few studies have investigated the implications of small and medium‐sized enterprises’ (SMEs) adoption of open innovation. We address this research gap by investigating the effects of four inbound open innovation activities on innovation performance of SMEs. In doing so, we draw on data from 252 high‐tech SMEs. Our results reveal that different open innovation activities are beneficial for different innovation outcomes. For instance, technology sourcing is linked to radical innovation performance, whereas technology scouting is linked to incremental innovation performance. These findings hold several important theoretical and practical implications.
Article
In response to requests that RTM reprint articles that have drawn unusual reader response, we reprint here another in our series of "RTM Classics." The first classic, "Lucky Alva," appeared in our July-August 1995 issue (pp. 28-30). Its author, Vladimir Haensel (recipient of the 1997 Charles Stark Draper Prize) imagined how the modern corporate environment would have treated Edison when he sought funding for his electric light bulb idea. Our second classic, "Motivating Your R&D Staff," was written by George E. Manners, Jr., Joseph A. Steger and Thomas W.Zimmerer, and reprinted in our Nov.-Dec. 1997 issue, pp. 29-34.
Article
Cluster analysis is a statistical technique that sorts observations into similar sets or groups. The use of cluster analysis presents a complex challenge because it requires several methodological choices that determine the quality of a cluster solution. This paper chronicles the application of cluster analysis in strategic management research, where the technique has been used since the late 1970s to investigate issues of central importance. Analysis of 45 published strategy studies reveals that the implementation of cluster analysis has been often less than ideal, perhaps detracting from the ability of studies to generate knowledge. Given these findings, suggestions are offered for improving the application of cluster analysis in future inquiry.
Article
Product innovation is the result of a constant interaction between the in-house research and development (R&D) department and knowledge exchanges with the firm's environment. Knowledge exchanges come in different forms. They break down into information gathering applied in new product development, research cooperation on particular innovation projects, and managing information outflows allowing the consequent appropriation of the results of product innovation through specific methods. The way firms handle knowledge exchanges affects their performance. This paper looks at three related indicators of performance: (1) research intensity (a measure of innovative input); (2) the share of revenue realized through innovative product sales (a measure of innovative output); and (3) their impact on the growth in total revenue. The bulk of the econometric literature looking into these matters only allows general statistical statements on the behavior of an “average” firm. This paper takes on another view by using the quantile regression method to stress the heterogeneity of innovative firms in their dealing with knowledge exchange and the effect this has on their performance. A first key finding is that research intensity is positively influenced by knowledge externalities, research cooperation, and appropriability, and it is through this that these variables affect innovative revenue and also the growth in total revenue. By using quantile regression these relationships are further refined to screen for differences in behavior between dynamic and lagging innovators. This refinement indicates that, in the case of research intensity, the knowledge externalities gain in importance in the higher quantiles and are insignificant in the lower ones. Next, research cooperation remains important in all quantiles, but a higher significance is observed in the higher quantiles as well. Finally, appropriability is extremely important for the lower quantiles, but it becomes insignificant in the highest. These findings corroborate the assumptions made in the literature on open innovation: knowledge externalities and research collaboration are vital for those opening up their firm for new ideas and who are, at the same time, reluctant to protect their findings through specific appropriation measures. In the case of innovative revenue all variables on knowledge exchange operate through the research intensity irrespective of the quantile, although the impact of research intensity on this type of revenue is higher in the upper quantiles. As for the growth in revenue, the effect of the innovative revenue is, again, higher in the higher quantiles. This suggests that dynamic product innovators have the most efficient R&D process and the strongest growers are so, especially, because they are successful product innovators.
Article
In recent years, Korea's Information and Communication Technology (ICT) industry has grown rapidly. The prosperity of the ICT industry has brought growing recognition that rising productivity and innovative performance have made major contributions to ensuring competitive advantage in international markets. In this context, recent studies stress the importance of external knowledge for improving both innovative performance and productivity. This paper empirically investigates the effects of firms' external knowledge search behavior on their productivity as well as their innovative performance in the Korean ICT manufacturing sector. Based on firm-level data from the Science and Technology Policy Institute (STEPI), this study indicates that incremental innovation and productivity are both related to external knowledge search.
Article
This paper clarifies the role of alternative optimal solutions in the clustering of multidimensional observations using data envelopment analysis (DEA). The paper shows that alternative optimal solutions corresponding to several units produce different groups with different sizes and different decision making units (DMUs) at each class. This implies that a specific DMU may be grouped into different clusters when the corresponding DEA model has multiple optimal solutions.
Article
The outsourcing of research and development (R&D) activities has frequently been characterized as an important instrument to acquire external technological knowledge that is subsequently integrated into a firm's own knowledge base. However, in this paper we argue that these 'gains' from R&D outsourcing need to be balanced against the 'pains' that stem from a dilution of firm-specific resources, the deterioration of integrative capabilities and the high demands on management attention. Based on a panel dataset of innovating firms in Germany, we find evidence for an inverse U-shaped relationship between R&D outsourcing and innovation performance. This relationship is positively moderated by the extent to which firms engage in internal R&D and by the breadth of formal R&D collaborations: both serve as an instrument to increase the effectiveness of R&D outsourcing. Copyright (c) 2010 ZEW Centre for European Economic Research. Journal of Management Studies (c) 2010 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.
Article
An increasing number of studies have examined the impact of collaborative networks on product innovation performance, but have produced inconsistent results. This research contributes to existing literature by examining how absorptive capacity affects the relationships between different types of partners and product innovation performance. The sample used in this research is drawn from the Taiwanese Technological Innovation Survey (TTIS) database. A moderated hierarchical regression approach is used to analyze the models, which are further explored by firm size and industry type. Some interesting findings appear. First, absorptive capacity positively moderates the impact of vertical collaboration on the performance of technologically new or improved products. Second, the effect of absorptive capacity on the relationship between supplier collaboration and the performance of new products with marginal changes varies based on firm size and industry type. Third, absorptive capacity negatively affects the relationship between customer collaboration and the performance of marginally changed products. Fourth, absorptive capacity positively affects the relationship between competitor collaboration and the performance of new products with marginal changes for large firms. Fifth, absorptive capacity negatively affects the relationship between collaboration with research organizations and the performance of technologically new or improved products. On the contrary, absorptive capacity positively affects the impact of collaboration with research organizations on the performance of marginally changed products. These results enrich current understanding of the relationships between collaborative networks and product innovation performance.
Article
This paper presents the strategies that low- and medium-technology (LMT) firms adopt to generate technological innovation and investigates the impact of these approaches on the firms’ innovation performances. These analyses are based on a sample from the Taiwanese Technological Innovation Survey totalling 753 LMT firms. The descriptive statistics show that about 95% of the firms acquired technology by technology licensing, while 32% of the firms engaged in R&D outsourcing. The firms in the sample acquiring external technological knowledge through collaboration with suppliers, clients, competitors, and research organizations are about 20%, 18%, 8%, and 23%, respectively. Using a moderated hierarchical regression analysis, this study reveals interesting results. First, inward technology licensing does not contribute significantly to innovation performance. Second, internal R&D investment negatively moderates the effect of R&D outsourcing on innovation performance. Third, internal R&D investment contingently impacts the different types of partners on innovation performance: by collaborating with different types of partners, firms with more internal R&D investment gain higher innovation returns than firms with fewer internal R&D activities. The results of this study contribute to a sharper understanding of technological innovation strategies and their effects on technological innovation performance in LMT sectors.
Article
This study deepens our knowledge of critical success factors in the innovation process of low- and medium-technology (LMT) industries. To accomplish this, it explores how the innovation process in LMT firms may depend on non-formal R&D activities and the use of external sources. The empirical analysis is based on a representative panel of Spanish manufacturing firms. The results strongly support the view that non-R&D activities such as design, the use of advanced machinery and training are crucial to understanding the innovation process of any firm. The study finds, however, that the impact of these activities is especially important in LMT industries, particularly for the achievement of product innovations. The empirical evidence also reveals the importance of external sources such as the use of consultants, the hiring of personnel, collaboration agreements and external R&D, with the greatest differences between LMT and high-technology (HT) firms being observed in process innovations.
Article
In today's globalized economy, enterprises are facing ever increasing competitive pressures. A commonly adopted strategy for gaining new technologies and remaining competitive is to acquire needed technology from external sources. The goal of this paper is to identify influential factors and their impact using a multi-factorial analysis of the choice of technology acquisition mode. The effect of various factors on these modes was studied by examining a sampling of the electronic industries of Japan, Korea and Taiwan. A patent analysis combined with Logit Regression is made and tested using data of these electronic firms. The results indicate that among the factors analyzed in this study, the technological capability (including technological level, technological innovation and research and development (R&D) activities) of a firm is the most significant factor in influencing the determination of the mode of technology acquisition. Finally, we discuss the significance of results based on resource theory and present our conclusions and their implications. By highlighting the important links between a firm's technological capability, size, previous experience and relevance of its core technology to the mode of technology acquisition in these technology-based firms, we hope to cast light on the contribution of various influential factors on the decision making of these modes for firms in these countries.
Article
External technology acquisition has been viewed as an important method used by firms to achieve higher economic returns. However, only a few studies have evaluated the contribution of external technology acquisition to firm performance. This lack of research is surprising because the benefits of external technology acquisition to innovation output have been emphasized extensively in the literature. This study therefore investigates the extent to which external technology acquisition effects a firm's performance, and how this effect is moderated by internal R&D efforts. This analysis concentrates on the electronics-manufacturing industry, taking advantage of the relative abundance of data on longitudinal investigation variables. A longitudinal sample allows this examination to control extraneous effects and to provide more convincing evidence for the relationship between external technology acquisition and firm performance. The analytical sample comprises a total of 341 Taiwanese electronics-manufacturing firms over the period from 1998 to 2002. The least square dummy variable analysis method reveals that external technology acquisition does not provide a significant contribution to firm performance per se; however, the positive impact of external technology acquisition on firm performance increases with the level of internal R&D efforts. Verifications for robustness and the split-sample analyses both validate the results in the setting of larger firms.
Article
Analyzing and measuring the innovation process from a quantitative perspective is needed for policy making, which can help in grasping and controlling the performance of innovations. There has been little literature to deal with it from a systemic perspective. In this study, a novel measurement framework for the typical innovation production process (IPP) is constructed from the system perspective associated with a relational network data envelopment analysis. It provides systematic and simultaneous efficiency measures for the overall process and internal sub-processes, i.e., upstream R&D process and downstream commercialization process. For confirming our measurement framework, we apply it to a cross-region empirical study of China’s high-tech innovations. The empirical innovation measurement provides in-depth evidences of China’s high-tech innovations inefficiency, and some policy recommendations are developed.
Article
Does a specific innovation pattern of low- and medium-low-technology (LMT) industries exist, and if so, can this pattern be the basis for autonomous, economically successful development? This study based on Fourth Community Innovation Survey (CIS4) data finds, as predicted by Pavitt [Pavitt, K., 1984. Sectoral patterns of technical change: towards a taxonomy and a theory. Research Policy 13, 343-373], that LMT industries are characterised by process, organisational and marketing innovations, by weak internal innovation capabilities and by strong dependencies on the external provision of machines, equipment and software. Suppliers are the most important source for their information and knowledge. On the one hand, firms in LMT industries are an essential pillar of advanced industrial regions. On the other hand, an alternative growth path-based predominantly on LMT industries does not appear to exist. LMT industries are shrinking in Western Europe and companies in these industries are relocating to Eastern Europe. In general, regions with a high proportion of LMT industries have a lower gross domestic product, though so do regions with high proportions of high- and medium-high-technology industries. The economic potential of regions specialised in knowledge-intensive services and characterised by high employment rates and qualified employees is higher than that of industrial regions.
Article
This is a revised version of the paper: Hashimoto, A. and Haneda, S., Measuring the change in R&D efficiency of the Japanese pharmaceutical industry. Dept. Social Systs Mgmt Discussion Pap. Ser. 1128, Univ. Tsukuba, 2005. This paper presents a DEA (Data Envelopment Analysis)/ Malmquist index methodology for measuring the R&D efficiency change of the Japanese pharmaceutical industry. Letting each of ten firms in each year be a separate DMU (Decision-Making Unit) and employing one input and three outputs in the DEA, and using the cumulative frontier shift component on average proposed in the Malmquist index analysis, we quite obviously show the industry-wide R&D efficiency change throughout the decade 1991-2000. The results empirically reveal that the R&D efficiency of the Japanese industry has surely gotten worse almost monotonically for the decade at least as to the pharmaceutical one.
Article
When companies decide to engage in technology transfer through exclusive licensing to other firms, they have two basic options: to use standard licensing contracts or to set-up more elaborate partnership-embedded licensing agreements. We find that broader partnership-embedded licensing agreements are preferred with higher levels of technological sophistication of industries, with greater perceived effectiveness of secrecy as a means of appropriability, and when licensors are smaller than their licensees. Innovative differential between companies, innovative supremacy of the licensor and market and technological overlap between partners appear to have no effect on the preference for a particular form of licensing. Copyright 2009 , Oxford University Press.
Article
This study focuses on the impact of innovation policies and R&D collaboration in Germany and Finland. We consider collaboration and subsidies as heterogeneous treatments, and perform an econometric matching to analyze R&D and patent activity at the firm level. In general, we find that collaboration has positive effects. In Germany, subsidies for individual research do neither exhibit a significant impact on R&D nor on patenting, but the innovative performance could be improved by additional incentives for collaboration. For Finnish companies, public funding is an important source of finance for R&D. Without subsidies, recipients would show less R&D and patenting activity, whilst those firms not receiving subsidies would perform significantly better if they were publicly funded. Copyright © 2007 John Wiley & Sons, Ltd.
Article
This paper constructs a model of saving for retired single people that includes heterogeneity in medical expenses and life expectancies, and bequest motives. We estimate the model using Assets and Health Dynamics of the Oldest Old data and the method of simulated moments. Out-of-pocket medical expenses rise quickly with age and permanent income. The risk of living long and requiring expensive medical care is a key driver of saving for many higher-income elderly. Social insurance programs such as Medicaid rationalize the low asset holdings of the poorest but also benefit the rich by insuring them against high medical expenses at the ends of their lives. (c) 2010 by The University of Chicago. All rights reserved..
Article
Zabala-Iturriagagoitia J. M., Voigt P., Gutierrez-Gracia A. and Jimenez-Saez F. (2007) Regional innovation systems: how to assess performance, Regional Studies 41, 661-672. This paper applies a Data Envelopment Analysis (DEA) methodology to the evaluation of regional innovation system performance based on information provided by the European Innovation Scoreboard (EIS) for 2002 and 2003. Those European regions ranked in the EIS as showing better performance in high-technology areas are ranked somewhat differently according to DEA. The results of the present study show that the higher the technological level of a region, the greater is the need for system coordination. Where this is lacking there is a loss of performance efficiency compared with other similar regions. Policy-making in relation to Regional Innovation Systems (RIS) has in the past depended on systemic analysis. Here, a methodology is proposed that combines quantitative and qualitative analyses to enrich the knowledge base for future policy decision-making. Zabala-Iturriagagoitia J. M., Voigt P., Gutierrez-Gracia A. et Jimenez-Saez F. (2007) Les systemes d'innovation regionaux: comment evaluer la performance, Regional Studies 41, 661-672. A partir des donnees pour 2002 et 2003 fournies par le European Innovation Scoreboard (EIS), cet article applique la methodologie de la Data Envelopment Analysis (DEA) a l'evaluation de la performance des systemes d'innovation regionaux. Il en resulte que le classement des regions d'Europe dont le rang selon l'EIS laisse voir une meilleure performance dans les secteurs a la pointe de la technologie, s'avere differente selon la DEA. Les resultats de cette etude montrent que plus une region est a la pointe de la technologie, plus les systemes devraient etre coordonnes. A defaut de cette coordination, la performance manque d'efficacite par rapport a d'autres regions similaires. Dans le passe, la mise au point de la politique pour ce qui est des Regional Innovation System
Article
Iceland, one of the smallest European economies, was hit severely by the 2008-financial crisis. This paper uses a firm-level Community Innovation Survey (CIS) data set to consider the economy in the period preceding the collapse of its financial system. We examine the linkage between the crisis and innovativeness from the perspective of technical efficiency by means of the Data Envelopment Analysis of 204 randomly selected firms. The results suggest that a substantial fraction of the Icelandic firms can be classified as non-efficient in their production process. The production scale of many manufacturing firms is too small to be considered technically efficient, while services firms typically use excessive resources in their production process. A remarkably weak performance in transforming R&D and labor efforts into successful innovations is observed. Based on the empirical results, suitable policy implications are suggested to remedy the inoptimal production structure and help economic recovery.
Article
Exxon Mobil and ConocoPhillips stock price has been predicted using the difference between core and headline CPI in the United States. Linear trends in the CPI difference allow accurate prediction of the prices at a five to ten-year horizon.
Measuring innovation efficiency . INNO-Metrics Thematic Paper
  • H Hollanders
  • F Esser
Hollanders, H., & Celikel Esser, F. (2007). Measuring innovation efficiency. INNO-Metrics Thematic Paper.
Oslo Manual-Guidelines for collecting and interpreting innovation data . Organisation for Economic Cooperation and Development
  • P S Mortensen
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Mortensen, P.S., & Bloch, C.W. (2006). Oslo Manual-Guidelines for collecting and interpreting innovation data. Organisation for Economic Cooperation and Development, OECD.
Effects of SME collaboration on R&D in the service sector in open innovation. Innovation: Management
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Suh, Y., & Kim, M. S. (2012). Effects of SME collaboration on R&D in the service sector in open innovation. Innovation: Management, Policy and Practice, 14 (3), 349-362. doi: 10.5172/impp.2012.14.3.349.