Direct and indirect knowledge spillovers and industrial productivity

This paper analyses the importance of externalities related to the spread of innovation across sectors. Such spillover effects arise from R&D activities and input–output (IO) linkages among sectors in the country. We borrow Spatial Econometrics techniques to make consistent estimates of the impact of these systematic direct and indirect spillovers on sector’s productivity and the possibility of other types of productivity spillovers in the error term. We find that direct spillovers emanating from IO horizontal linkages determine sector’s productivity, while the indirect effects prove to be negligible. Furthermore, the technological intensity of IO linkages and the productive structure of the underlying economy are key factors determining the effectiveness of economic policies focused on increasing total industrial productivity.     

Local Knowledge Spillovers and Development: An Exploration of the Software Cluster in Uruguay

The paper contributes to the understanding of the nature of local knowledge spillovers and their importance for innovation in clusters in developing countries. Using detailed primary data about a cluster of software firms in Montevideo, Uruguay, the paper finds plenty of evidence of the existence of pure unintentional knowledge spillovers. In addition, it supports previous theoretical studies that have contended that there are also many knowledge flows that are to some degree produced purposively by local parties—these flows can be placed somewhere in between pure spillovers and pure market transactions. While the respondents themselves place most value on knowledge flows that are more or less purposively co-produced with customer transactions, a more objective statistical analysis shows that good product/service-innovation performance is associated with intensive use of flows with more pronounced spillover characteristics. The respondents possibly underrate the latter because of their invisibility and spontaneous nature. Heavy use of knowledge flows lying close to the market-transaction side of the spectrum is found to be associated with relatively advanced organizational capability, but not with product innovation. Overall, the findings point towards the relevance of cluster-based policies to promote innovation in a less developed country context. Various policy measures to stimulate the local circulation of knowledge are suggested.     

Agglomeration and innovation of knowledge intensive business services

ABSTRACT

For some time now, the research focusing on Knowledge Intensive Business Services (KIBS) has been very active. Observing that knowledge as a production factor is only becoming more and more pronounced, this focus is well-grounded. It is therefore important to examine how these knowledge-hubs gain and propagate their knowledge. We hypothesize that KIBS (as many other sectors) benefit from intra-industry knowledge spillovers facilitated by geographical concentration. Our focus is the innovative capacity of KIBS, which we measure through trademarks registered by KIBS firms. While there may be several mechanisms facilitating knowledge spillovers, we can identify local intra-sectoral labor mobility as one. Accessibility measures are used to assess the geographical attenuation of the spillover effects. Results show that the distance decay of spillovers is fast. Only local concentrations of KIBS seem to be of importance. Over longer distances, we instead observe negative consequences for trademarking, indicating possible spatial competition effects.     

The effects and time lags of R&D spillovers in Brazil

Government's innovation investments for science intensive sectors, such as the capital goods industry for developing countries play an important role in technology dissemination; however, few studies have addressed this issue. This study is conducted in the framework of a developing economy (Brazil), and aims to estimate the spillover effects throughout the industry resulting from public investment in innovation, as well as the spillovers of R&D and management investment performed by the capital goods industry through the rest of the industrial sector, and also the time lapse between the occurrence of innovative investment and output growth due to such expenditures. The results of the estimated econometric model exhibit significant and positive spillover effects by the government R&D expenditures for the capital goods industry with a three-year lapse, as well as a one-year lag for the occurrence of output effects on the other companies of the manufacturing sector, resulting from innovative investments by the capital goods industry.     

External Knowledge and Innovation Performance in Clusters: Empirical Evidence from the Uruguay Software Cluster

The importance of geographic proximity for innovation has been widely stressed in the cluster literature. Yet, new insights from the inter-organisational network and cluster literatures underline the role of non-local linkages in enabling firms in networks to enhance learning and to innovate. This paper contributes to this literature by examining the importance of local and non-local knowledge networks for the innovation performance of firms in clusters. Our analysis is based on primary data from a survey of 95 software firms clustered in Montevideo, Uruguay. The results highlight that the most innovative firms in clusters heavily rely on non-local knowledge networks. Moreover, the number of indirect local ties to other firms is a better predictor of innovative performance than the number of direct local ties. Finally, our findings confirm the presence of knowledge gatekeepers in clusters and emphasise their role in enhancing innovation in clusters by absorbing knowledge from extra-cluster sources and diffusing it to other local firms.     

Personal and Contextual Antecedents of Knowledge Sharing and Innovative Performance among Engineers

This research investigates the impacts of proactiveness, openness to experience, and extraversion on innovative performance among engineers. The work also examines the mediating role of knowledge sharing. Using a person–situation interaction perspective, the study further explores the moderating role of perceived organizational support (POS) in personality–knowledge sharing relationships. Data collected from engineers (N = 183) across various public and private engineering firms in Pakistan reveal that knowledge sharing mediated the relationship of proactiveness and extraversion with innovative performance. In addition, highly proactive and extraverted engineers are more likely to share knowledge when the POS is high. Contrary to the expectations, engineers who highly exhibit openness to experience are less likely to share knowledge under high POS. These findings provide significant contributions to the theory and practice of engineering management by highlighting the essential link of personality traits with knowledge sharing and innovation among engineers.     

Business Group Affiliation and R&D

This paper analyzes whether belonging to a business group enhances firms' propensity for and intensity of R&D based on the greater opportunities to finance and co-ordinate R&D strategies and internalize knowledge spillovers. Compared with the existing literature, this paper has the following novelties: (a) it examines how the organization and diversification of business groups influence the R&D investment of affiliated firms; (b) it analyzes the role of R&D spillovers among affiliated firms; and (c) it distinguishes between propensity for and intensity of R&D. We find that less diversified groups are more likely to centralize R&D, while in more diversified groups firms are more likely to be autonomous. We find that controlled companies are more likely to benefit from knowledge spillovers than firms at the head of the group. Finally, we find that R&D autonomy is significantly associated with both a higher propensity for and intensity of R&D in controlled companies.     

The structure and evolution of ICT global innovation network

Abstract

We look at the structure and evolution of an information and communication technology (ICT) global innovation network (GIN) by mapping the locations of R&D centres belonging to a group of multinational ICT enterprises. We found that the number of countries and connections have increased in a very short time, and that most of the newcomers have come from Africa, Asia and South America. We show that a country’s network position affects the creation and intensity of R&D linkages with other countries in the network. This suggests that the evolution of the ICT GIN is driven by, among other things, the preferential attachment mechanism, i.e. countries tend to connect to those countries which have more links. A country’s position in the network also moderates the effect of standard determinants of innovation i, such as geographic distance. Hence, network position explains the creation of R&D linkages between such distant countries as the US, China or India.     

Winning combinations: search strategies and innovativeness in the UK

Searching for the most rewarding sources of innovative ideas remains a key challenge in management of technological innovation. Yet, little is known about which combinations of internal and external knowledge sources are triggers for innovation. Extending theories about searching for innovation, we examine the effectiveness of different combinations of knowledge sources for achieving innovative performance. We suggest that combinations involving integrative search strategies – combining internal and external knowledge – are the most likely to generate product and process innovation. In this context, we present the idea that cognitively distant knowledge sources are helpful for innovation only when used in conjunction with knowledge sources that are closer to the focal firm. We also find important differences between product and process innovation, with the former associated with broader searches than the latter. Using a large-scale pooled sample of UK firms, we find overall support for our conjectures, particularly in terms of product innovation.     

Globalization and de-globalization in nanotechnology research: the role of China

The share of nanotechnology publications involving authors from more than one country more than doubled in the 1990s, but then fell again until 2004, before recovering somewhat during the latter years of the decade. Meanwhile, the share of nanotechnology papers involving at least one Chinese author increased substantially over the last two decades. Papers involving Chinese authors are far less likely to be internationally co-authored than papers involving authors from other countries. Nonetheless, this appears to be changing as Chinese nanotechnology research becomes more advanced. An arithmetic decomposition confirms that China??s growing share of such research accounts, in large part, for the observed stagnation of international collaboration. Thus two aspects of the globalization of science can work in opposing directions: diffusion to initially less scientifically advanced countries can depress international collaboration rates, while at the same time scientific advances in such countries can reverse this trend. We find that the growth of China??s scientific community explains some, but not all of the dynamics of China??s international collaboration rate. We therefore provide an institutional account of these dynamics, drawing on Stichweh??s [Social Science information 35(2):327?C340, 1996] original paper on international scientific collaboration, which, in examining the interrelated development of national and international scientific networks, predicts a transitional phase during which science becomes a more national enterprise, followed by a phase marked by accelerating international collaboration. Validating the application of this approach, we show that Stichweh??s predictions, based on European scientific communities in the 18th and 19th centuries, seem to apply to the Chinese scientific community in the 21st century.     

A cross-country comparison of innovation efficiency

The purpose of this paper is to highlight the weakness of innovative activities and guide the improvement of innovation efficiency at country-level through carefully comparing innovation efficiency across countries. Following the conceptual framework which divides innovation processes into knowledge production process (KPP) and knowledge commercialization process (KCP) and applying dual network-DEA models, this paper tries to take economic benefit of R&D outputs into account. Moreover, we construct the production frontier of the innovation processes and two component processes under different assumptions (e.g., constant returns-to-scale, variable returns-to-scale and non-increasing returns-to-scale) for 35 countries over the period 2007–2011. Based on the production frontier, we do not only estimate technical efficiency and scale efficiency for each country but also investigate and verify whether returns-to-scale of each country are decreasing or increasing. Furthermore, we add together the radial movement and the slack movement to acquire input redundancy. We decompose the input redundancy into two parts: redundancy caused by technical inefficiency (R_TI) and redundancy caused by scale inefficiency (R_SI), and carry out a detail analysis of the input redundancy. We find specific circumstances of inefficiency and redundancy vary with the different countries’ characteristics and development stages. Moreover, innovation efficiency statistically mainly depends on the KCP efficiency. In particular, the study reveals that China suffers scale inefficiency is attributed to insufficient macro-level coordination, malfunctioning funding system, and flawed evaluations and incentives. Finally, public policy implications are proposed for the inefficient countries.     

Collaboration in Innovation Between Foreign Subsidiaries and Local Universities: Evidence from Spain

Collaboration between foreign subsidiaries and universities is relevant for multinational companies (MNCs) that aim at absorbing knowledge from abroad, as well as for universities and policy-makers attempting to maximize the spillovers associated with foreign direct investment (FDI). In this paper, we explore how MNCs collaborate with universities in the foreign countries where they locate and provide new empirical evidence for Spain as a host country. Using a probit model with panel data comprising 9,614 firms for the period 2005–2011, we explore differences between the propensity to collaborate with universities of foreign subsidiaries and Spanish firms. Subsequently, building on a new survey to 89 foreign subsidiaries and on a more detailed analysis of five case studies, we discuss the variety of motivations that drive collaboration with universities and relate the scale and scope of such collaborations with the dynamic mandates of foreign subsidiaries in global innovation networks.     

Bridging Knowledge Gaps: Returnees and Reverse Knowledge Spillovers from Chinese Local Firms to Foreign Firms

Adopting a knowledge-based perspective and embeddedness theory, this study examines the impact of reverse knowledge spillovers from local Chinese firms to foreign firms using a sample of high-tech firms in Zhongguancun Science Park in China. It also investigates whether returnees in foreign firms help bridge knowledge gaps between local firms and foreign firms. The results show that the presence of returnee CEOs and returnee employees enhances the impact of reverse technological and marketing spillovers on the innovation and financial performance of foreign firms. The findings call for more studies on the social dimensions of knowledge spillovers across international boundaries and have important theoretical and practical implications.     

Reverse innovation,international patenting and economic inertia: Constraints to appropriating the benefits of technological innovation

In this paper we compare the role of outward-bound international patenting in “reverse innovation” and in conventional international modes of innovation. Through analysis of panel data from 148 countries over 18 years we reveal that, while all countries may in principle appropriate economic benefits from endogenous technological innovation by increasing their level of outward-bound international patenting, the ability of a country to do so may be hampered by the pre-existing level of its economy. We classify countries in to four strategic innovation quadrants—Slow Movers, Traders, Inventors and Cosmopolitans—based on the relative change over time in their competitiveness in international patenting and their per capita wealth. The mix of wealthy countries and less wealthy countries varies greatly between quadrants, with the wealthy countries dominating the Cosmopolitans quadrant and the less wealthy countries dominating the Slow Movers quadrant. We conclude that, for lower income countries to improve their success in appropriating the benefits of reverse innovation, innovators and would-be innovators based in those countries need to develop sophistication and prowess in international patenting strategy and intellectual property management tailored to the unique conditions of each country.     

Mapping collaborative knowledge production in China using patent co-inventorships

Only a few cases of systematic empirical research have been reported investigating collaborative knowledge production in China and its implications for China’s national and regional innovation system. Using Chinese patent data in the US Patent and Trademark Office (USPTO), this paper examines the geographic variations in intraregional, inter-regional and international knowledge exchanges of China from 1985 to 2007. Degree centrality reveals that intraregional and international collaborations are the main channels of knowledge exchange for the provinces and municipalities of China while inter-regional knowledge exchange is relatively weak. Besides, over the two decades, the knowledge exchange network has been expanding (connecting an increasing number of provinces and countries), becoming more decentralized (increasing number of hubs) and more cohesive (more linkages). A blockmodel analysis further reveals that the inter-regional network of China begins to show characteristics of a core-periphery structure. The most active knowledge exchange occurs between members of the core block composed by the most advanced provinces while the members of the peripheral block from less favored regions have few or no local and extra-local knowledge exchange. Building a strong knowledge transfer network would much improve the innovation capacities in less favored regions and help them break out from their “locked-in” development trajectories.     

National and international university departmental Web site interlinking

Although many link patterns have been identified at the university level, departmental interlinking has been relatively ignored. Universities are multidisciplinary by nature and various disciplines may employ the Web differently, thus patterns identified at the university level may hide subject differences. Departments are typically subject-oriented, and departmental interlinking may therefore illustrate interesting disciplinary linking patterns, perhaps relating to informal scholarly communication. The aim of this paper is to identify whether and how link patterns differ along country and disciplinary lines between similar disciplines and similar countries. Physics, Chemistry and Biology departments in Australia, Canada and the UK have been chosen. In order to get a holistic picture of departments' Web use profiles and link patterns, five different perspectives are identified and compared for each set of departments. Differences in link patterns are identified along both national and disciplinary lines, and are found to reflect offline phenomena. Along national lines, a likely explanation for the difference is that countries with better research performances make more general use of the Web; and, with respect to international peer interlinking, countries that share more scholarly communication tend to interlink more with each other. Along disciplinary lines, it seems that departments from disciplines which are more willing to distribute their research outputs tend to make more general use of the Web, and also interlink more with their national and international peers.     

National Systems of Innovation: Institutional Linkages and Performances in the Case of Korea and Taiwan

This paper focuses on the measurement of scientific and technological performance of Korea and Taiwan in what has been the most successful technology catch-up within developing economies context. The performance measures are based on the publication data for scientific knowledge production and patent data for technological capabilities. In addition, this analysis also reveals on the features of innovation system of these two countries, focusing on the linkages between public and private sector in the scientific and technological knowledge creation. By examining the scientific and technological performance and the changing structure of innovation system, it provides empirical evidence on the positive interaction between scientific and technological activities.     

Aerospace Clusters: Local or Global Knowledge Spillovers?

The literature about regional innovation systems, clusters and industrial districts insists on the importance of local knowledge spillovers. Nevertheless, more recently a few authors have put in question the importance of local knowledge spillovers. This paper provides an analysis of some of the most dynamic aerospace clusters in the world, located in Montreal, Seattle, Toulouse and Toronto. We start by discussing theories of clustering, then provide research questions as well as empirical evidence on the international nature of knowledge spillovers. Local knowledge spillovers are less significant, of a different nature, and they may make a scanty contribution to explain the geographical agglomeration of firms. Conversely, international spillovers help to explain the relative dispersion of industry across nations. Resilient geographical clustering is related to the anchor tenant effects as creators of labour pools and owners of very large manufacturing plants creating regional inertia. We thus reject the local knowledge spillover explanation of aerospace clusters in favour of another one based on anchor firms and their effects on the local labour pool.     

International collaboration and innovation in professional and technological knowledge-intensive services

Abstract

In this paper, we explore the impact of international collaboration on innovation in technological and professional knowledge-intensive business services. We propose that the benefits of international collaboration differ depending on the activity sector and the location of the foreign partner. Specifically, we argue that the nature of knowledge and innovation processes in professional and technological knowledge-intensive business services may explain different effects of international collaboration on innovation performance. Our empirical analysis is based on a large sample of knowledge-intensive business services for the period 2004–2007. We specify two bivariate probit models to test our hypotheses. The results confirm the hypotheses and show that proximity to international partners is more important for professional knowledge-intensive services, while diversity in international collaboration is more important for technological knowledge-intensive services.