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.     

Optimal R&D investments of the firm

This paper examines irreversible decisions on innovative activities where it takes time to complete an R&D project. The total amount of R&D investments that the firm needs to undertake in order to obtain the breakthrough in the innovation process is uncertain. R&D investments are limited by the restriction that they must be self-financed. It is shown that R&D investments are more valuable when the level of uncertainty is large. Especially, it is very attractive to undertake R&D investments if a project faces many uncertainties during its early phases. Furthermore we study how R&D behavior is influenced by different levels of the discount rate and the financing limit. Moreover, the effects of R&D subsidies, spillover benefits and a payoff that decreases over time are analyzed. Received: 9 October 1997 / Accepted: 19 March 1998     

Evaluation,ranking and selection of R&D projects by multiple experts: an evidential reasoning rule based approach

As a typical multi-criteria group decision making (MCGDM) problem, research and development (R&D) project selection involves multiple decision criteria which are formulated by different frames of discernment, and multiple experts who are associated with different weights and reliabilities. The evidential reasoning (ER) rule is a rational and rigorous approach to deal with such MCGDM problems and can generate comprehensive distributed evaluation outcomes for each R&D project. In this paper, an ER rule based model taking into consideration experts’ weights and reliabilities is proposed for R&D project selection. In the proposed approach, a utility based information transformation technique is applied to handle qualitative evaluation criteria with different evaluation grades, and both adaptive weights of criteria and utilities assigned to evaluation grades are introduced to the ER rule based model. A nonlinear optimisation model is developed for the training of weights and utilities. A case study with the National Science Foundation of China is conducted to demonstrate how the proposed method can be used to support R&D project selection. Validation data show that the evaluation results become more reliable and consistent with reality by using the trained weights and utilities from historical data.     

The role of government-industry-academia partnership in business incubation: Evidence from new R&D institutions in China

it is very important to encourage the incubation of new companies for innovative economic growth. Many countries in the world are encouraging “innovation orchards” in the form of government-industry-academia partnership to facilitate the incubation of new technology enterprises. The research focuses on the impact of this partnership between the government, industry, and academia in establishing new R&D institutions on business incubation. Specifically, the research aims to investigate what is the separate effect of the government, enterprises, universities, and public institutions in the establishment of new R&D institutions on enterprise incubation, and the role of cooperation between government-enterprise-academia in the enterprise incubation of new R&D institutions. In empirical tests using data from the 2020 official survey of the Ministry of Science and Technology of China, the results show that for each single cooperator, participation in the establishment of governments, academia has a positive impact on start-ups, while the participation of enterprises has no significant impact. In terms of cooperation, the co-established new R&D institutions are better in business incubation than the single establishment of new R&D institutions. The cooperation between government and academia in the establishment of new R&D institutions has a positive effect on business incubation, and other types of cooperation between government-industry, industry-academia, and government-industry-academia have no significant impact on business incubation. The research conclusion can provide a policy reference for optimizing the holding mode of new R&D institutions.     

Optimal diversification for R&;D project portfolios

Diversification of R&D projects not only can reduce overall risk, but also can create value-enhancement effect. A useful guideline for optimal diversification of R&D projects is important to R&D organizations. This paper extends financial portfolio analyses for R&D management particularly incorporating the technology risk. This study uses a survival model to describe the technology risk since termination of an R&D project can be caused by any technology risk factors. A formula of optimal R&D resource allocation that can dynamically achieve the greatest diversification effect is offered. Furthermore we provide an alternative method for estimating correlations between R&D portfolios, which has a critical influence on diversification effect. The method can be useful in risk assessment when measure the exposure of R&D portfolio to particular sources of uncertainty. The evaluation framework for R&D portfolios optimization also can be applied in project-selection decisions.     

A fuzzy ANP-based approach to R&D project selection: A case study

Research and development (R&D) project selection is a complex decision-making process. It involves a search of the environment of opportunities, the generation of project options, and the evaluation by different stakeholders of multiple attributes, both qualitative and quantitative. Qualitative attributes are often accompanied by certain ambiguities and vagueness because of the dissimilar perceptions of organizational goals among pluralistic stakeholders, bureaucracy and the functional specialization of organizational members. Such differences in perceptions often hinder the attainment of consensus and coordination. Therefore, failures are frequent in R&D investment planning. To perceive the preferences of the various stakeholders and to map them into an analytical decision-making framework are challenging tasks. Further, risks and uncertainties are also associated with the investments and returns of R&D projects. This paper illustrates an application of fuzzy ANP (analytic network process) along with fuzzy cost analysis in selecting R&D projects. Fuzzy set theory is incorporated to overcome the vagueness in the preferences. The method adopted uses triangular fuzzy numbers for pair-wise comparison and applies extent analysis followed by defuzzification to determine the weights for various attributes.     

Productivity of R&D institution: The case of Indonesia

This study analyzes the performance of Indonesian R&D institutions based on R&D productivity. By applying an institutional approach, the effects of collective determinants such as quality of researcher, R&D budgets, locations and ages of R&D institutions on productivity are considered. Our findings show that these performance variables had strong and significant effects on R&D productivity. A national innovation system should be developed in developing countries with different models from those used in developed countries. The non-economic dimension is essential in developing national innovation systems in developing countries such as Indonesia.     

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.     

Public R&D project portfolio selection problem with cancellations

OR Spectrum - In this study, we address a public R&D project portfolio selection problem with project cancellations. For several reasons, a funded R&D project may be halted before...     

Status of physics research in India: An analysis of research output during 1993–2001

The paper reviews the present status of Indian physics research, in particular its nature of research system, nature of institutions involved, type of education offered and outturn at postgraduate and Ph.D level, the extent to which extra-mural funding support is available from various governmental R&D agencies, and the nature of professional organizations involved. The study is based on analysis of Indian physics output, as indexed in Expanded Science Citation Index (Web of Science) during 1993–2001. The study also discusses various features of Indian physics research such as its growth in terms of research papers, institutional publication productivity, nature of collaboration, and the quality and impact of its research output.     

Heterogeneous Partners,R&D cooperation and corporate innovation capability: Evidence from Chinese manufacturing firms

In this paper, we examine the differential impact of cooperation with heterogeneous partners on firms' innovation capabilities. We use the number of joint patent applications of Chinese manufacturing firms from 2008 to 2018 to measure cooperation with different types of partners and the number of corporate patents to measure the innovation capability of firms. The results indicate that R&D cooperation with other enterprises, universities, and research institutions all have a significantly positive impact on the innovation capability of enterprises. However, R&D cooperation with universities or research institutions has a higher positive impact on innovation capability than that with other firms. Different internal and external factors moderate the relationship between heterogeneous partners and the innovation capability of firms. Specifically, firms with higher absorptive capacity will benefit more from R&D cooperation with corporate partners. In contrast, in industries with higher market concentration or where firms are at the technological frontier, cooperation with universities will positively impact their innovation capabilities. Further research demonstrates that absorptive capacity has a more positive moderating effect when the cooperation is between firms in the same industry, compared to R&D cooperation between firms in different industries.     

Fusion of technology management and financing management - Amazon's transformative endeavor by orchestrating techno-financing systems

Amazon became the world R&D leader in 2017 by rapidly increasing R&D investment. Its R&D investment in 2017 was double that of 2015, 5 times that of 2012, and 10 times that of 2011. This rapid increase continued in 2018, and Amazon accomplished a skyrocketing increase in its market capitalization, closing to being the world's biggest company.Such a rapid increase in R&D and subsequent market value has raised questions about how to conduct R&D and secure a large amount of funds needed for high-risk investments. Amazon has provided hypothetical answers to both of these questions.Amazon has been conducting innovative R&D to transform routine or periodic alterations into significant improvements during the R&D process and claiming huge expenses for such transformation activities as expenses for R&D.The company's ample free cash flow generated by sophisticated cash conversion cycle (CCC) management endorsed a large amount of investment for such a high-risk strategy.Increased R&D induced business advancement and lean cost structure construction leading to a further increase in cash flow has stimulated interactions between vendors, customers, and Amazon via the Amazon marketplace. Activated interaction-accelerated CCC advancement, a subsequent free cash flow increase, and user-driven innovation have thus simultaneously accelerated R&D transformation.All of these components - R&D transformation and technopreneurial strategy consisting of technology management, as well as marketplace development and CCC-driven cash flow generation consisting of financing management - function together as a consolidated sophisticated machine. Thus, Amazon has succeeded in fusing technology management and financing management by orchestrating all techno-financing systems.In light of increasing concerns regarding R&D expansion without the dilemma of a productivity decline that most digital economies are now confronting, this paper demonstrates the above hypothetical answers.Following the authors' preceding analysis of Amazon's unique technology management toward a new concept of R&D in the digital economy, an intensive empirical analysis focusing on the development trajectory of Amazon's techno-financing system over the last two decades was conducted.An insightful suggestion as to neo-open innovation that fuses technology management and financing management is thus provided.     

Co-evolutionary coupling leads a way to a novel concept of R&D - Lessons from digitalized bioeconomy

Given the increasing role of research and development (R&D) in competitive markets in the digital economy while confronting the dilemma between R&D expansion and a productivity decline, transformation of the R&D model has become a crucial subject for global digital leaders.The authors of this paper postulate that neo open innovation harnessing the vigor of external innovation resources which then developed into a new concept of R&D that self-transforms during an R&D process initiated by Amazon by coupling with users.The authors further develop these postulates by proposing the embedding of a growth characteristic identical to biological coupling.An empirical analysis focusing on the forefront endeavors of global bioeconomy firms and also by Amazon was conducted.A notable endeavor toward a circular economy initiated by its global leader UPM- Kymmene Corporation (UPM) demonstrated the significance of a coupling effect with downstream digital commerce leader Amazon. This effect can be attributed to harnessing the function of the growth characteristic identical to biological coupling through co-evolution of the dual coupling of bioeconomy and digitalization and of upstream and downstream operations.This co-evolutionary coupling is expected to provide a novel concept of R&D that grows its function in a self-propagating way during the R&D process.An insightful suggestion supporting to a novel concept of R&D in the digital economy is thus proposed.     

R&D policy instruments – a critical review of what we do and don’t know

In recent years, the term “policy instrument” has been used frequently with regard to R&D policy and innovation policy. This article examines the development of the term as part of a body of research known as “policy design”. Over the last 50 years, there has been substantial progress in setting policy design on a more systematic basis, with the development of established concepts and analytical frameworks, including various taxonomies of policy instruments. However, with just a few exceptions, this body of research seems to have had little impact in the world of R&D policy. The paper reviews the literature on R&D policy instruments, identifies a number of challenges for R&D policy instruments in the light of four transitions and sets out a research agenda for the study of R&D policy instruments, before ending with a number of conclusions.     

Assessing the Effects of International Trade on Private R&D Expenditures in the Food Processing Sector

This study empirically investigates the effects of imports and exports on private research and development (R&D) expenditures in the food processing sector. An analytical framework discussing the various effects of international trade on R&D activities is presented. This is followed by an empirical analysis that uses a dynamic empirical specification for current R&D expenditures and for a cumulative measure of R&D stock. The empirical investigation is applied to a panel dataset covering Organization for Economic Cooperation and Development's countries. The empirical results show that increases in import intensity levels induce reductions in private R&D expenditures whereas increases in export intensity levels promote larger private R&D expenditures. These outcomes imply that the R&D-enhancing effects of exports are countered by the R&D-reducing effects of imports.     

A Business Intelligence Approach to Monitoring and Trend Analysis of National R&D Indicators

The economic growth and competitiveness of countries is strongly influenced by their national research and development (R&D) systems. Hence, national R&D managers must make appropriate decisions to develop their R&D systems. For this purpose, an integrated view on the dimensions of national R&D systems is much needed. Due to the distribution of relevant data sources for national, R&D indicators and the complexity of national R&D systems, establishing an integrated view is challenging. In this article, we propose a business intelligence architecture to monitor, analyze, and forecast national, R&D indicators. Data for these indicators are integrated from heterogeneous data sources. In a case study focusing on Iranian R&D indicators, a prototype system is designed and implemented to evaluate its effectiveness in practice. After monitoring the indicators using online analytical processing, trends for the indicators across 11 years are forecasted using time series analysis models. The prototype system provides an integrated view of the Iranian R&D system, so that national R&D managers can use the developed system for monitoring and trend analysis of Iranian R&D indicators. As a result of the analysis of these trends, implications and recommendations for the future of the Iranian R&D system are presented.     

Assessing the Effectiveness of Quantitative and Qualitative Methods for R&D Project Proposal Evaluations

Abstract:

R&D project success and value is often difficult to predict at the proposal stage. Evaluation methods and their effectiveness vary considerably and are influenced by specific organizational cultures and managerial skill sets. A two-year field study examined the strength, challenges, and limitations of various R&D project evaluation and selection methods. The results suggest that for many project situations, the decision-making process must go beyond analytical methods. It should include both quantitative and qualitative measures and be linked with the internal and external support groups, as well as be strategically aligned with the enterprise. This article identifies specific managerial actions and organizational conditions for evaluating and selecting R&D proposals, aimed at optimizing future value and chances of success.     

Effect of R&D product and process expenditures on new product introductions

This study examines the relationship between the introduction of new products and R&D process and product expenditures of 15 industries. The objective is to determine the degree to which product and process R&D expenditures, uniquely or jointly, contribute to the development of new products. The findings suggest that concurrent R&D expenditures on products and processes lead to higher R&D output, as measured by new product announcements, than R&D expenditures on products or processes alone. As a by-product, the analysis clearly shows that the relationship between the number of new products introduced and product and process R&D expenditures can be represented by a function resembling the Cobb-Douglas production function     

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.     

Bibliometric analysis on additionality of Japanese R&D programmes

To justify public investment in R&D activities especially those conducted by private companies, the effect to change their behavior into what could not be realized without public funds is required. This paper studies the "additionality" of Japanese R&D programmes by analyzing the patent applications of five case study projects. Changes and continuations in research themes between the results of the project and the results in five years before and after the project were measured using a similarity index. Also, the similarities between research groups in a project were measured. These show how each project was constituted by researchers with various types of knowledge. As a result, although all projects contained core research groups who continued their research in the project, the effect of mobilizing other researchers into new fields was shown to vary depending on the characteristics of the projects. This revised version was published online in August 2006 with corrections to the Cover Date.