The Catalysing Role of In-House R&D in Fostering Complementarity Among Innovative Inputs

While several studies have investigated the relationship between internal and external sources of innovation, no clear-cut result has emerged so far, suggesting the possibility that the nature of such interaction—far from being an absolute property of the innovative process—may instead be a relative one, contingent upon the nature and the level of innovative inputs a firm has invested in. Using microdata from the third Italian Community Innovation Survey, we test under what conditions the nature of the interactions between four different innovative inputs (internal and external R&D, embodied and disembodied technological acquisition) is one of complementarity or substitutability. Two are the main findings of our study: (i) internal R&D and embodied technological acquisitions turn out to be complementary only after a minimum threshold of in-house R&D expenditure has been overcome, being substitutive otherwise; (ii) investing in internal R&D also affects the nature of the relationships between alternative external sources of innovation, whose interaction proves to be complementary only for firms that invest in internal R&D.     

Relations between national research investment and publication output: Application to an American Paradox

The term “European Paradox” describes the perceived failure of the EU to capture full benefits of its leadership of science as measured by publications and some other indicators. This paper investigates what might be called the “American Paradox,” the decline in scientific publication share of the U.S. despite world-leading investments in research and development (R&D) — particularly as that decline has accelerated in recent years. A multiple linear regression analysis was made of which inputs to the scientific enterprise are most strongly correlated with the number of scientific papers produced. Research investment was found to be much more significant than labor input, government investment in R&D was much more significant than that by industry, and government non-defense investment was somewhat more significant than its defense investment. Since the EU actually leads the U.S. in this key component, this could account for gradual loss of U.S. paper share and EU assumption of leadership of scientific publication in the mid-1990s. More recently the loss of U.S. share has accelerated, and three approaches analyzed this phenomenon: (1) A companion paper shows that the SCI database has not significantly changed to be less favorable to the U.S.; thus the decline is real and is not an artifact of the measurement methods. (2) Budgets of individual U.S. research agencies were correlated with overall paper production and with papers in their disciplines. Funding for the U.S. government civilian, non-healthcare sector was flat in the last ten years, resulting in declining share of papers. Funding for its healthcare sector sharply increased, but there were few additional U.S. healthcare papers. While this inefficiency contributes to loss of U.S. share, it is merely a specific example of the general syndrome that increased American investments have not produced increased publication output. (3) In fact the decline in publication share appears to be due to rapidly increasing R&D investments by China, Taiwan, S. Korea, and Singapore. A model shows that in recent years it is a country’s share of world investment that is most predictive of its publication share. While the U.S. has increased its huge R&D investment, its investment share still declined because of even more rapidly increasing investments by these Asian countries. This has likely led to their sharply increased share of scientific publication, which must result in declines of shars of others — the U.S. and more recently, the EU.     

Dynamics of the modern Venezuelan research community profile

Summary The main characteristics, human resources, organizational development, R&D output and outcome of the Venezuelan scientific and technological community, are studied in depth for three specific dates - years 1954, 1983 and 1999 -, aiming to reveal its strengths and weaknesses and to establish its dynamics. During the first half of the twentieth century, Venezuela had no major organized or institutionalized scientific activity. From 1954 thru 1983, the State built a considerable number of institutions mostly for research and development activities. Initially, researchers came from classical professions but were later substituted by graduates in scientific and technological disciplines. Biomedical and basic sciences are the areas of knowledge favored by researchers while, in terms of intellectual creation, social sciences and humanities seem to be the less productive, despite being one of the fields of knowledge embraced by most professionals. Although from 1983 on there has been no major input to the national S&T system, the research community showed a few years of growth in absolute terms in the number of publications, however national productivity decreased during the last decade of the century. It is believed that this reflects an aging, asphyxiated and self-consuming community using its reserves at a maximum rate. The S&T system constructed exhibits a dominance of the public sector that privileged, financially, the hydrocarbon related technological/service industry at the expense of academic research in universities while maintaining agribusiness related service and developmental research at the same level of expenditure throughout the last twenty years of the twentieth century. While the generation - practically from zero - of a modern R&D community in Venezuela, together with higher education, could well be one of the most significant accomplishments of democracy in Venezuela, this remarkable social achievement has been put in peril by neglect and changes in public policies. Downturn of the national S&T system is bound to worsen due to a virtual collapse, on February 4, 2002, of the R&D centre of the nationalized oil industry.     

Trends in Russian research output in post-Soviet era

Recently, the Russian government has ordered evaluation and reform of the basic research system. As a consequence, the number of research staff at the Russian Academy of Sciences will be reduced by 20% by 2007. The basis for research evaluation and institute budgeting will be bibliometric indicators. In view of these changes we look at the Russian publication output and argue that

A quantitative analysis of Indian science and technology manpower employment and economic development

In this paper an attempt has been made to analyse the science & technology (simply S & T) manpower employment in relation to economic development based on quantitative analysis. The results derived from various analyses have shown the existence of correlation between S & T employment generation and economic development. A number of multiple regression analyses have indicated in quantitative terms the extent of growth expected in the Gross National Product (GNP), industrial output and R & D expenditure to absorb the available supply of S & T personnel.     

The Difference Effect of Environmental Regulation on Two Stages of Technology Innovation in China’s Manufacturing Industry

This paper divides technological innovation into two stages: technology development and technology transfer. Then the authors use the panel data of 28 manufacturing industries during 2003–2012 to test the econometric regression model for the industry of the sub stages, which is a regulation on technological innovation in the environment. The results show that: (1) environmental regulation has a significant role in promoting China’s manufacturing technology research patent achievements, and technology into new products, and this indicated that “Porter hypothesis” in the manufacturing sector has been verified; (2) R&D and transfer expenditure have a positive impact on technological innovation. Finally, the authors put forward the corresponding policy recommendations for industry of the environmental regulation on the impact of technological innovation in phases.     

Evaluating research,technology and development in Canadian industry: Meeting the challenges of industrial innovation

Canadian firms respond to the challenges and opportunities of global competition by increasing their research productivity and the rate of innovation. The competitive edge for Canadian industry must now be based on a new appreciation of the dynamics of R & D, as well as management practices and strategies which are relevant to the systems which underpin innovation. New R & D and management models are being adopted by firms to cope with the dynamic and complex nature of innovation, the growing importance of transactions and linkages within innovation systems and the range of financial, human, social and environmental factors which now impact on technology assessment and decision-making. Given this new paradigm, evaluation techniques are being created and adopted by Canadian industry which provide them with a greater understanding of the value of their research and enhance the agility of their technology management. But, these developments are not confined to industry. Of equal importance is the convergence of evaluation methods used in both industry and governments to assess research and technology. The methods used by industry are now the techniques employed by governments to assess their own R & D and to formulate industrial S & T policies and strategies.     

Patent evolution in relation to public/private R&D investment and corporate profitability: Evidence from the United States

Summary In this paper we analyze the (historical) co-evolution of technological development and economic progress (by relating public and private R&D investment, patenting, and corporate profitability). We relate to the work ofSchmookler(1966),Griliches(1990),Pakes&Griliches(1980) andPakes(1986) who all have studied the techno-economic interplay by considering patents as in indicator of technological performance. We use United States industry and government data over the period 1953-1998 (45 years). Co-evolution analysis over this period reveals a strong interdependency among the variables. Patent evolution is strongly related to the development of private R&D and corporate profitability; the levels of public and private R&D expenditure in combination with the level of technological output (i.e. patents) have a strong predictive and explanatory power towards corporate profitability (R² value of 94.9%). Causality tests reveal a joint determination between R&D investment and corporate profitability (L=2; p<0.01).     

The innovative behaviour of Italian firms: A survey on technological innovation and R&D

This paper is based on the findings of a survey on technological innovation in the Italian industry.All Italian manufacturing firms were screened in the analysis and, at the end of a screening process, 8,220 of them, which had introduced relevant technological innovations over the period 1981–1985, filled out either a mail questionnaire or were covered through a personal interview.Data and preliminary comments on the following problem-areas are set in the paper: type of innovation introduced in the firm (product, process), impact of innovations on the firm's products and sales, cost of innovation, technological relevance of innovations introduced, impact of innovations on the utilization of input factors, factors linked to the introduction of innovation, performance of R & D.Data show that technological innovation is a complex aspect of company life; it relates to both products and production processes: in more than half of the cases firms introduced both product and process innovations, whereas only products or processes were introduced in about 20 per cent of cases, respectively. It is also apparent that the majority of innovations are new only for the firm, and that only a limited share are new for the sector or for the country. Looking at the techno-scientific quality of the innovations introduced, quite often innovations were classified as technical improvements or enhancements, and in a very limited number of cases they were considered as applications of a scientific breakthrough.The breakdown of the innovation costs shows that, on average, more than half of the cost is attributed to investment (machinery, equipment, etc) one fourth to engineering and design activity, one fifth to R & D and the remaining 5 per cent to marketing activities.The most important factor linked to the introduction of innovation appears to be the acquisition of plant and machinery. This confirms the result of previous analyses which show that the introduction of new technologies hinges upon new machinery and equipment, often the sole means for the acquisition of technology produced by other economic agents — a diffusion and adaptation process is occurring. R & D was mentioned in a limited number of cases.In the paper a quantitative and qualitative analysis of the R & D performed by the firm is reported. In particular, it is shown that the number of R & D performing manufacturing firms is more than double that which emerges from the annual survey on research and development activities carried out by the Italian Central Statistical Office.     

The evolution of the knowledge structure of fuel cells

Summary This study evaluates the scientific output of Iran over the past two decades. The information has been extracted by searching ISI in December 2003. Science production in Iran has been reviewed (1967-2003) and compared with 15 countries in the year 2000. During these years Iran&apos;s relative share in the scientific output in the world increased from 0.0003&percnt; in 1970 to 0.29&percnt; in 2003. Comparing the ratio of science output to GNP, Iran stands on thirteenth place among 16 countries in the year 2000. The present article discusses that Iran has had an increasing growth in presenting articles after the Iraq-Iran war, which marks the period of stability and development.     

Data envelopment analysis as a tool for constructing scientometric indicators

It is shown that Data Envelopment Analysis (DEA) ca be used to construct relative scientific and technological indicators. The method is explained and illustrated using countries as objects of study; GDP, active population and R&D expenditure as inputs, and publications and patents as outputs. Using these parameters the efficiency of countries is assessed.     

International indicators of science and technology: How does the U. S. compare?

Because the basic determinants of innovative success are poorly understood, the data in SI-76 cannot support an unambiguous summary assessment of U. S. science. While some nations now rival the U. S. in relative expenditure for R&D, U. S. absolute expenditure still dwarfs that of any nation except the U. S. S. R., and the U. S. remains preeminent by most measures of technological capacity. However, the technology gap continues to narrow, bringing both costs and benefits to the U. S. Advances abroad threaten the U. S. position in some markets and exacerbate the nation's trade adjustment problems. But the nation may also benefit substantially from new opportunities to import as well as export advanced technology.Some of the material in this paper is adapted from R. McCULLOCH,Research and Development as a Determinant of U. S. International Competitiveness, National Planning Association, Washington, D. C., 1978.     

The scientific wealth of European nations: Taking effectiveness into account

In this study we continue the application of Data Envelopment Analysis (DEA) to assess the efficiency and effectiveness of the R&D effort of European countries. We use GDP, active population and R&D expenditure as inputs, and publications and patents as outputs. Being effective means that, in order to obtain a maximum efficiency score countries are forced to perform on every output goal. A discussion of each country's performance and a comparison with May'sScience results concludes our analysis.     

Do R&D Spinoffs have Higher R&D Productivity? Evidence from Taiwanese Electronics Firms

The startup mode of spinoffs founded by R&D employees (R&D spinoffs) within the same industry is widespread in high-tech industries. The founders usually own specific human capital and key technological capability, enabling them to take the operational risk and to appropriate rewards of innovations under the industrial environment of rapid technological change. Whether high-tech R&D spinoffs, compared to their other spinoff counterparts, have better R&D productivity remains less well explored. According to the conceptual discussion of the advantages of intangible innovation assets embodied in company founders, this study argues that the founders' innovation cognition, knowledge externalities, absorptive capability and routine experience can help R&D spinoffs to have higher R&D productivity. We thus propose three hypotheses that are then empirically tested. Based on a sample of Taiwanese electronics firms, the empirical findings show that R&D spinoffs invest with a higher R&D intensity and on average have more patents issued. More importantly, the microeconometric estimates show that the patent and output elasticities of the R&D of R&D spinoffs are significantly higher than those of other firms, indicating that they actually have higher R&D productivity.     

Science and technology policies: A tale of political use,misuse and abuse of traditional R&;D indicators

Future political priorities for science and technology (S&T) policy formulation usually rest on a rather simplistic interpretation of past events. This can lead to serious errors and distortions and can negatively affect the innovation system. In this article we try to highlight the riskiness involved in policy making based on traditional R&D indicators and trends. We would emphasise that this approach does not take account of structural aspects crucial for the analysis of the innovation system. We examine the implications for science, technical and human resources policies of the political challenge of R&D convergence in a peripheral EU region. Three scenarios are developed based on application of the same criteria to the trends observed in traditional R&D input indicators.     

Disruptive Technologies and the Tax Law

Abstract

Recent studies of the innovation process within firms draw a distinction between “sustaining” and “disruptive” technological change. Government incentives designed to encourage research and development (R&D) activities may interact with the organizational structure of firms developing disruptive technologies. This study finds evidence from companies involved with design and manufacture of microelectromechanical-systems (MEMS) that practical concerns in raising capital may supersede utilizing tax incentives. This finding raises the policy issue of aligning R&D incentives with the most common organizational structures.     

A bibliometric analysis of the effectiveness of Korea’s Biotechnology Stimulation Plans,with a comparison with four other Asian nations

This study investigates the scientific output and publication patterns of Korean biotechnology before and after the start of the Korean Biotechnology Stimulation Plans (1994–2007), and then compares the results with publication data from the same time periods for Japan, the People’s Republic of China, Taiwan and Singapore. For this study, 14,704 publications, published by at least one researcher from one of the five Asian nations (indexed by SCI Expanded during the years 1990–1993 and the years 2000–2003), were considered. A marked increase of Korean research output in biotechnology was largely influenced by an increasing tendency for researchers to enter the field of biotechnology and by increased expenditures for R&D activity through the Korean Biotechnology Stimulation Plans. In addition, the SCI Expanded coverage of national journals affected the scientific output and publication patterns of Japanese and Korean researchers. Looking at the Korean publications by collaboration type, international collaboration leads to more publications in mainstream journals of high impact factors than local and domestic collaborations for the two periods. However, although the Korean Biotechnology Stimulation Plans were followed by a remarkable increase in South Korea’s research output, this increase has not been accompanied by growth in the quality of those publications in terms of impact factors of journals for Korean publications.     

Inter-country R&;D efficiency analysis: An application of data envelopment analysis

This study examines the relative efficiency of the R&D process across a group of 22 developed and developing countries using Data Envelopment Analysis (DEA). The R&D technical efficiency is examined using a model with patents granted to residents as an output and gross domestic expenditure on R&D and the number of researchers as inputs. Under CRS (Constant Returns to Scale), Japan, the Republic of Korea and China are found to be efficient, whereas under the VRS (Variable Returns to Scale) framework, Japan, the Republic of Korea, China, India, Slovenia and Hungary are found to be efficient. The emergence of some of the developing nations on the efficiency frontier indicates that these nations can also serve as benchmarks for their efficient use of R&D resources. The inefficiency in the R&D resource usage highlighted by this study indicates the underlying potential that can be tapped for the development and growth of nations.     

Post-Catch-Up Strategy for Medium-Sized South Korean Firms: Improving Technological Capabilities by Balancing R&D Intensity and Open Innovation

Abstract

This study examines how R&D intensity and open innovation affect the technological capabilities of firms in newly-developed countries, such as South Korea. East Asian latecomers are transitioning from a catch-up phase toward becoming leaders, and they are engaging in open innovation activities to drive this transition. This research quantitatively analyzes three kinds of open innovation activities—outside-in, inside-out, and coupled—to investigate their influence upon technological capabilities, while also considering the effect of R&D intensity. Data from 75 South Korean medium-sized firms were analyzed, and two major findings are reported. First, technological capabilities are enhanced by some open innovation activities and by R&D intensity. Second, R&D intensity negatively moderates the impact of open innovation activities on technological capabilities. Therefore, it may be concluded that firms with relatively low R&D intensity will gain the most benefit from increasing their open innovation activities.