Multi-network embeddedness and innovation performance of R&D employees

Taking the perspective of multi-network embeddedness, this paper constructs the collaboration network of R&D organizations, the collaboration network and knowledge network of R&D employees based on the patent data of 879 R&D employees from 224 R&D organizations, and analyses factors that have significant impacts on R&D employees’ innovation performance. The results show that R&D employees’ knowledge combinatorial potential and knowledge diversity have significant positive impacts on their innovation performance. R&D employees’ degree centralities in the collaboration network mediate the impacts of their knowledge combinatorial potential and knowledge diversity on innovation performance. The degree centralities of R&D organizations moderate the impacts of R&D employees’ degree centralities on innovation performance.

     

Once bitten,less shy? The influence of prior misappropriation experience on R&D collaboration

Firms often face the challenge of collaborating for innovation and protecting themselves from misappropriation. Given this tension, we investigate the relationship between prior misappropriation of protected and unprotected intellectual property (IP) and R&D collaboration. We combine more than 600 firm observations from the German Community Innovation Survey with patent data and qualitative interview data. Our results consistently point to (1) less subsequent R&D collaboration after being copied (misappropriation of unprotected IP) and (2) more subsequent R&D collaboration after being infringed (misappropriation of protected IP) in the following three years. Moreover, we find indication that firms that are copied start to collaborate more during the subsequent period (four to six years later). Our study adds to a better understanding of the tension between appropriating innovation rents and remaining open to R&D collaboration. Further, we provide insights on how firms strategically leverage previous misappropriation experience to create value.     

R&;D market value under weak intellectual property rights protection: the case of India

The relationship between R&D and market value has attracted the interest of many scholars within different fields, but scant attention has been paid to the countries with weak protection of intellectual property rights (IPR). This is unfortunate, since this problem is potentially highly relevant for IPR policy in developing countries. In particular, several questions arise when the problem of R&D market value is analyzed in a country where IPR protection is weak. First, there are concerns regarding incentives (i.e., private returns) for firms to invest in R&D when IPR is only weakly protected. Second, significant differences could emerge in the market valuation of R&D investments of domestic and foreign firms, above all in those industries where spillovers are more likely. To examine these issues, this paper investigates the market valuation of R&D investments of a panel of 219 R&D-reporting domestic and foreign firms publicly traded in India with an empirical analysis. First, the market valuation of the R&D capital for the whole sample is positive and higher than those obtained in U.S. or European countries from similar analyses. Second, in the sub-samples of the domestic and foreign firms, the market value of R&D investments of foreign firms is not significantly different from zero, while the valuation coefficient of domestic firms is four times higher than that obtained on the whole sample. Third, in science-based industries the difference between domestic and foreign firms is smaller than in the other industries. The policy implications of these findings are discussed.     

How R&D partner diversity influences innovation performance: an empirical study in the nano-biopharmaceutical field

R&D partner diversity is generally acknowledged to help organizations to improve innovation performance. This study investigates the influence mechanism in depth by introducing technological diversification as mediator and the structural holes of new knowledge elements from R&D partners and the degree centrality of the focal organization’s knowledge elements as two moderators. The empirical analysis is based on patent data in the emerging nano-biopharmaceutical field and includes 554 innovative organizations. Results show that partners’ organizational diversity and geographical diversity have positive effects on focal organizations’ innovation performance through improving technological diversification. The structural holes of new knowledge elements from R&D partners and the degree centrality of the focal organization’s knowledge elements moderate the process in the way that when they are at high levels, the indirect positive effects of partner diversity on innovation performance through technological diversification are strengthened.     

The impact of R&;D collaboration on innovative performance in Korea: A Bayesian network approach

It is well known from previous research activities that R&D collaboration among economic actors for knowledge production is very important. An accompanying analysis of the impact of R&D collaboration on innovative performance has to be conducted for transferring knowledge to the globalized knowledge-based economy. When we first investigated previous research concerning R&D collaboration, we found some limitations in the analysis methodology. In order to overcome these limitations in previous research, we applied a Bayesian network for analyzing the impact of R&D collaboration in Korean firms on their innovative performance.     

World efficiency in the potential production of new technologies under intellectual property assets

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.     

Forms and Determinants of R&D Collaborations: Evidence Based on French Data

The literature on R&D collaboration highlights a broad set of rationales for allying with other organizations. At the same time, it has been reported that there exists a large variety of forms of collaboration. Nevertheless, the relation between the motives to collaborate and the different forms of collaboration has not been examined. In this paper, we attempt to fill this gap by highlighting and explaining the heterogeneity in the forms of collaboration as a result of several interdependent simultaneous choices. Using a sample of more than 3,000 R&D collaborations, a typology of their characteristics allows us to distinguish five discrete forms of collaboration. Then using a multinomial logit estimation, we show how the forms of collaboration vary according to the firms' attributes (size, R&D internal effort, group membership), market and objectives pursued. We also obtain new results on the effects of incoming spillovers as well as appropriability conditions.     

Major factors affecting cross-city R&D collaborations in China: evidence from cross-sectional co-patent data between 224 cities

Scientific research activities cluster in cities or towns. Modern cities can play a crucial role in the national or regional innovation system. Strengthening R&D collaboration between cities can contribute to perfectly integrating various regional innovation systems. Using the cross-sectional co-patent data of the Chinese Patent Database as a proxy for R&D collaboration, this paper investigates the spatial patterns of R&D collaborations between 224 Chinese cities and the major factors that affect cross-city R&D collaborations in China. A spatial interaction model was used to examine how spatial, economic, technological and political factors affect cross-city R&D collaborations. The degree of centrality shows that cross-city collaborative R&D activities mainly occur in favored regions, advanced municipalities and coastal regions. The mean collaboration intensity for intra-provincial cross-city collaborations is 4.74; however, for inter-provincial collaborations, it is 0.69. The econometric findings reveal that spatial, economic, technological and political bias factors do yield significant influences on the frequency of cross-city R&D collaboration. Specifically, as evidenced by the model coefficient, it is more likely that R&D collaborations occur among cities that are connected by high-speed railways.     

Firm market valuation and intellectual property assets

ABSTRACT

This paper investigates the relationship between the innovative activity of the top corporate R&D investors worldwide and their market valuation. The analysis exploits a sample of more than 1,250 publicly listed Multinational Corporations (MNCs) and their intellectual property rights (IPR) – patents and trademarks – filed between 2005 and 2012. The study contributes to the literature on the IPR-market value link by examining the premium resulting from the interactive use of different IPR. Moreover, the empirical setting allows differentiating the effects of an increase in market value derived from additional IPR (within-effects) with respect to the premium received for holding more IPR than the competitors (between-effects). The findings suggest that investors value the simultaneous use of the two IPRs and form their expectations by benchmarking firms. Finally, significant industrial specificities are observed in the individual effects of patents, trademarks and their interactions on the market value of firms.     

When does the diverse partnership of R&D alliances promote new product development? The contingent effect of the knowledge base

Diverse R&D alliance partnerships not only provide access to broad external knowledge but also bring considerable expenses caused by transaction costs and absorption problems. The effective utilization of external knowledge in developing new products is closely related to the internal knowledge base. This study examines how firms' knowledge base properties influence the relationship between diverse R&D alliance partnerships and NPD performance. We empirically find that increases in firms' knowledge complementarity reinforce the positive impact of diverse alliance partners on NPD performance, but increases in firms’ knowledge substitutability attenuate. These findings offer valuable managerial implications that firms should commit more seriously to their internal knowledge base so that they can achieve higher NPD performance when establishing R&D alliances with external actors.     

The Role of Time in Assessing the Economic Effects of R&D

This study investigates the impacts of R&D on firm performance. It extends previous research by constructing alternative stocks of R&D‐Capital that take into account that time plays an important role in assessing the pay‐off of industrial research. The results show that even when we employed R&D‐Capitals that placed more emphasis on the industrial research that had been undertaken 7 years ago, the effects of R&D were very (statistically) significant and relatively high, thereby suggesting that the life of R&D (on average) tends to be long. The results however, vary across organizations depending on both firm size and the technological opportunities that a company faces. It appears that the depreciation rate of R&D investments is higher in the case of technologically sophisticated firms. In contrast, strategic investments in industrial research generate a relatively constant effect on the performance of other firms, supporting the notion that the corresponding returns for such firms decay slowly.     

The importance of geographical distance to different types of R&D collaboration in the pharmaceutical industry

ABSTRACT

Innovation within companies is generated by a combination of different types of knowledge from external and geographically dispersed sources. Although the geographical dimension of collaboration has previously been investigated, studies have not distinguished between different types of knowledge involved in collaboration. This article analyses how the number of collaborations between pharmaceutical multinational companies (MNCs) and external organizations is affected by geographical distance, distinguishing between four knowledge types: basic science, clinical science, core knowledge, and exploration knowledge. We use co-publications as a proxy for collaborations. Our results show that collaborations in basic science and core knowledge areas are more negatively affected by geographical distance than collaborations within clinical science and exploration knowledge areas. This suggests that the importance of geographic proximity depends on the type of knowledge that is being transferred in R&D collaborations. Our results have implications for companies´ collaboration strategies and their choices for the R&D sites´ location.     

Systemic aspects of R&D policy subsidies for R&D collaborations and their effects on private R&D

This paper analyses how context- and time-dependent factors determine the impact of R&D subsidies on firm behaviour with respect to private R&D expenditures. Based on German R&D survey data, we combine propensity score matching with a difference-in-difference estimator in order to measure the causal influence of public direct R&D project funding on firm behaviour. Our results indicate that (i) repeated participation in R&D projects on average leads to a higher increase in R&D expenditures than once-off funding; (ii) the aggregate effect of R&D funding on R&D expenditures of business firms is somewhat higher for business–business collaboration projects than for science–business collaboration projects; (iii) R&D expenditures of business firms that cooperate with science show a higher share of external R&D spending. Results of one particular cluster programme indicate that at least the short-term development of R&D does not so much depend on which programme direct R&D project funding is applied to.     

An Exploration of Total Quality Management Practices In U.S. R&D Organizations

ABSTRACT

This article presents the findings of an exploratory study of total quality management (TQM) practice in selected U.S. R&D organizations. Information was obtained through a nationwide survey of 31 R&D organizations and interviews with 13 R&D organization directors. Research questions are posed through a review of the related literature, and the research method is described. The current state of TQM practice in the surveyed organizations is elaborated, and special attention is given to TQM-related performance measurement. It is shown that under TQM, the perceived success of the R&D organization is a function of the metric being used for assessment and the degree to which measurement occurs. Research topic areas for further study are also proposed.     

Supplier selection for outsourcing from the perspective of protecting crucial product knowledge

This paper considers the supplier selection problem in terms of the characteristics of the products/processes to be outsourced. Emphasis is placed on the possible risk that may arise in sharing or transferring crucial product/process knowledge to suppliers during outsourcing. Two indices are employed to assess the suitability of a supplier for outsourcing a product/process. The first measures the supplier's capability for technological innovation in the products for which they offer outsourcing services, and includes investment in R&D projects and the ratio of R&D personnel to the total work force. The second index measures the supplier's practices in protecting its clients’ intellectual property rights, and includes corporate image, track record in protecting clients’ intellectual property rights, and compliance with internal and external requirements. These two indices are then used to classify suppliers into four major groups, which are in turn assigned to classes of components/processes depending on their strategic importance and vulnerability – a portfolio approach. The proposed portfolio approach has been validated via a substantial empirical study involving data for 401 parts, 216 suppliers, and 36 manufacturing companies operating in China.     

How to interpret the position of private sector institutions in bibliometric rankings of research institutions

This paper analyzes the positions of institutions from the private domain in bibliometric rankings of as many as 27,000 research institutions and highlights factors that are crucial for a proper interpretation of such positions. It was found that among the institutions with the largest output in terms of published research articles, private firms are underrepresented, whereas in the top quartile of institutions with the largest citation impact firms are overrepresented. A firm’s publication output is not a good indicator of its R&D investment: big firms in Pharmaceutics are both heavy investors in R&D and frequent publishers of scientific articles, whereas in Automobiles firms tend to invest heavily in R&D but their publication output is low. This is ascribed to the fact that the former need a validation of their results by the scientific community, while the latter do less so. Private institutions generating the largest citation impact tend to collaborate with the best public research institutions. This reflects the crucial importance of publicly funded research for the private sector.     

Increasing the return on investment from federally-funded research and development

Abstract

Each year, the United States invests approximately $495 billion in research and development (R&D) – about a quarter of the total global investment. While the private sector accounts for about 67% of U.S. investment, the Federal government plays a critical role in funding R&D, particularly in areas that address societal needs in which the private sector does not yet have sufficient clear or strong incentive to make the required investments. The Federal government invests approximately $150 billion each year in R&D conducted at Federal laboratories, universities and other research organizations. As Federal R&D investments wind down or are completed, additional work is often still needed to translate the knowledge accrued from that R&D into products and services that will improve lives and provide economic growth. Technology transfer is the process by which existing knowledge, facilities or capabilities developed through R&D are utilised to fulfill public and private need. The transfer of technology from federally-funded R&D to the private sector is crucial to realising the taxpayer’s return on investment in the Federal R&D ecosystem. However, moving innovations from the lab to the market is more than inventing products for people to buy. Technology transfer is about creating jobs and growing the economy; ensuring a strong, secure, and resilient Nation; and improving Americans’ health and environment, fostering the conditions for America to maintain leadership in global innovation.     

Non-linear dynamics of innovation activities over the business cycles: Empirical evidence from OECD economies

This study examines the non-linear and asymmetries of innovation activities in thirty-six OECD countries for the period 1981Q1-2019Q4. The impulse response function and historical decompositions were estimated to check the cyclical property of innovation activities (R&D expenditures, residential patents, non-residential patents, and international collaboration in technology development) during the boom and recessions. The impulse response function provided three important results. First, the results indicated that the R&D expenditures moves pro-cyclically in response to the gross domestic product (GDP), exports, imports, and gross fixed capital formation in both the boom and recession periods. Second, the findings suggested that patents (residential and non-residential) move pro-cyclically in response to GDP, exports, imports, labor force, R&D expenditures, and gross fixed capital formation shocks in the boom and recession periods. Third, variables including, R&D expenditures, GDP, exports, labor force, imports, and gross fixed capital formation shocks significantly affected patents (residential and non-residential) during the boom and recession periods across the sampled OECD states. Fourth, the results also suggested that the international collaboration in technology development moves pro-cyclically in response to GDP, R&D expenditures, exports, imports, labor force, and gross fixed capital formation shocks in the boom and recession periods.     

Mapping the dynamics of knowledge base of innovations of R&;D in Bangladesh: triple helix perspective

Triple helix (TH) collaborations involving university, industry and government provide a networked infrastructure for shaping the dynamic fluxes of knowledge base of innovations locally and these fluxes remain emergent within the domains. This study maps these emergence dynamics of the knowledge base of innovations of Research & Development (R&D) by exploring the longitudinal trend of systemness within the networked research relations in Bangladesh on the TH model. The bibliometric data of publications collected from the Science Citation Index (SCI), the social sciences and the arts and humanities for analysis of science indicators and the patent data collected from the US Patent Office to analyze the patent success ratio as a measure of innovation within TH domains. The findings show that the network dynamics have varied considerably according to the R&D policies of the government. The collaboration patterns of co-authorship relations in the SCI publications prominently increased, with some variation, from 1996 to 2006. Nevertheless, inter-institutional collaboration negatively influenced by the national science and technology (S&T) research policies in the last 5 years due to their evaluation criteria. Finally, the findings reveal that the R&D system of Bangladesh is still undergoing a process of institutionalizing S&T and has failed to boost its research capacity for building the knowledge base of innovations by neglecting the network effects of TH dynamics.     

Spatial spillovers and value chain spillovers: evaluating regional R&D efficiency and its spillover effects in China

Research and development (R&D) efficiency assessment is an effective way for policymakers to develop strategies to increase the beneficial impacts of R&D. This study measures regional R&D efficiency from a multi-stage R&D perspective. It examines the spatial spillover effects and value chain spillover effects of R&D using panel data from 2009 to 2016 for 30 provinces in China. By estimating a spatial Durbin model, we find evidence of strong spatial dependence in R&D efficiency in China. With respect to R&D value chain effects, we find that R&D value chain spillovers took place intra-regionally but not inter-regionally. This finding indicates that in a knowledge flow context, there are two-way R&D value chain spillovers in which the forward spillover effects are stronger than the backward spillover effects. This finding adds important new knowledge to research on knowledge spillovers: distinguishing between value chain spillovers and spatial spillovers opens new avenues for future empirical inquiries.