Do systemic innovation intermediaries broaden horizons? A proximity perspective on R&D partnership formation

ABSTRACT

As systemic innovation intermediaries (SII) orchestrate interactions between innovative actors, they might alleviate the constraints of proximity effects on R&D partnership formation. We test this for existing and new R&D projects established under the Dutch Topconsortia for Knowledge and Innovation. Regression results show that partnerships between firms belonging to the same SII are less sensitive to cognitive proximity, suggesting that the intermediaries facilitate uncommon distant collaboration. At the same time, we find that SII may strengthen social proximity among partners. The influence of organisational proximity seems independent of SII, while geographic proximity loses relevance after the introduction of the intermediaries. SII thus seem to create bridges between distant firms that otherwise may not have collaborated together, while also enhancing the risk of excessive in-group thinking. We conclude with research and policy implications.     

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.     

Firm size and compositions of R&D expenditures: evidence from a panel of R&D performing manufacturing firms

The effect of firm size on diverse compositions of R&D expenditures is analysed in detail using firm-level data on the Korean manufacturing sector. On the grounds that each type of R&D activity differs in terms of salability in disembodied form and growth potential due to innovation, a distinction between product vs. process, and new vs. incremental R&D is made. Empirical tests show that the firm size is significantly associated with both the new and incremental R&D. Moreover, firm size is found to be significantly associated with other types of R&D compositions such as the share of R&D devoted to incremental innovation and multidimensional combinations of product, process, new and incremental R&D. These findings support the idea that large firms possess innovative advantages over smaller firms and firm size is an important determinant for firms’ heterogeneous R&D activities. We also discuss the limitations and the implications of the findings.     

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.     

Determinants of internal and external R&D offshoring: evidence from Spanish firms

This paper analyses the determinants of R&D offshoring of Spanish firms using information from the Panel of Technological Innovation. We find that being an exporter, international technological cooperation, continuous R&D engagement, applying for patents, being a foreign subsidiary, and firm size are factors that positively affect the decision to offshore R&D. In addition, we find that a lack of financing is an obstacle relatively more important for independent firms than for firms that belong to business groups. For these latter, we also obtain that the factors that influence the decision to offshore R&D differ depending on whether the firm purchases the R&D services within the group or through the market: a higher degree of importance assigned to internal sources of information for innovation as compared to market sources increases (decreases) the probability of R&D offshoring only through the group (market).     

The role of firm R&D effort and collaboration as mediating drivers of innovation policy effectiveness

This paper investigates the impact of firm R&D policies supporting R&D investment and collaboration on company innovation performance. Individual and cooperative R&D investments are considered as intermediate outcomes (input and behavioural additionality, respectively) contributing to the final outcome (probability of product innovation). We use a treatment random coefficient model to estimate the policy additionality on a panel data-set merging the third and the fourth wave of the Italian Community Innovation Survey. Results show a significant and positive policy impact on company propensity to product innovation only for the input additionality and for the interaction between the input and the cooperative additionality. This occurs when company cooperation scores overcome a given threshold, in accordance with the assumption that cooperation entails benefits but also coordination costs.     

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.     

Policy implications for third-tier countries considering ACTD programs: South Korea as a case study

As a certain society's military strength depends on its technological capabilities, decision makers that do not retain the capacity to produce a full spectrum of defense systems to meet the country's requirement (herein Third Tier Countries, or TTCs), need to administer different acquisition policies than countries that furnish a complete range of arms. South Korea, with its limited defense industrial base, has implemented Advanced Concept Technology Demonstration (ACTD) programs since 2007. Provided that other TTCs are considering the ACTD process, analogous cases should be instructive. Thus, this paper is a comparative analysis of Korean ACTDs vis-a-vis those of the United States to draw distinctive ACTD policy implications for TTCs. For a review of 32 programs, four perspectives are suggested: imminent threats, technological capabilities, budgetary constraints, and transition plans. Examined from these dimensions, prioritization and reification of imminent threats should be a beginning point. If there are some identified threats that can be countered by ACTDs, then boundaries in technological capabilities and budgetary constraints ought to be taken into account. Finally, an effective technology transition plan for ACTDs in accordance with other non-military-led defense R&D projects would help in determining the success of the open acquisition process.     

Using multi-hub structures for international R&;D: Organisational inertia and the challenges of implementation

Abstract and Key Results

R&D,Value Chain Location and Firm Performance in the Global Electronics Industry

In today's global electronics industry, innovation is carried out by various value chain participants, including brand-name manufacturers (sometimes called lead firms), contract manufacturers and component suppliers, but there is little understanding of who benefits most from innovation in such networks. This research examines empirically the relationship of R&D spending and location in the value chain (lead vs. non-lead firms) to firm performance in the global electronics industry by using the Electronic Business 300 data set for 2000–2005. Our results show that firms spending more on R&D have higher gross profits, but do not have higher return on equity (ROE) and return on assets (ROA). There is a strong positive relationship between lead firms and performance as measured by gross profit, ROE and ROA, but the relationship between lead firms and gross profit becomes insignificant when the interaction term of R&D and lead firm is included in the analysis. Finally, lead firm status has a positive interaction effect on the relationship between R&D and gross profit. These findings suggest that the relationship of R&D to performance is mixed, but that lead firms can capture higher value (gross profit) from R&D than contract manufacturers and component suppliers.     

Growth of De Alio and De Novo firms in the new and renewable energy industry

Firms entering new markets are either de alio, with business experience in other areas, or de novo, without such experience. De alio firms enter markets in advantageous situations, while de novo firms enter markets with innovation capabilities. This study determines whether de alio or de novo firms achieve faster sales growth as well as the duration of their growth when they enter the new and renewable energy industry. Panel data for global companies that entered the new and renewable energy industry after the 1990s show that de alio firms achieved higher growth rate than did de novo firms in the initial stages, but that entry type’s contribution to sales growth gradually decreased and disappeared four years after entrance. The results indicate that accumulated resources and new entrants’ former experiences in other industries have positive effects, contributing to initial success after market entry for a limited time. This finding suggests that firms improve the R&Cs (resources and capabilities) that are appropriate to their new environments for sustainable development.     

The Munich Feature Film Cluster: The Degree of Global Integration and Explanations for its Relative Success

In this paper we assess the role that a secondary feature film cluster can play in an industrial sector largely dominated by the major Hollywood studios. In order to do this we proceed in two steps. We first evaluate as to how Munich-based firms are integrated into the production, distribution, financing and technological development of globally successful feature films. Then we investigate the factors that explain the relative economic success of this regional industry. Here we argue that major corporate actors that established a core group within the cluster have turned the industry towards specialized niche products and have been significantly supported by public policy measures.     

Globalization at the nano frontier: The future of nanotechnology policy in the United States, China, and India

The field of nanotechnology offers the possibility of transforming the international science and technology (S&T) policy landscape and making a significant impact on the direction of research and development for a wide range of nations and companies. Nanotechnology endeavors in the United States, China, and India remain some of the most interesting because of the opportunities and challenges this field poses for future competition and collaboration between these three nations. This paper examines how nanotechnology will raise new science and policy questions—and lead to new strategic linkages—that will have a major impact on the futures of these nations for decades to come. Then the paper analyzes and compares the current state of nanotechnology in these three countries, discusses some of the main drivers of collaboration, investigates current and potential uncertainties associated with nanotechnology, and offers policy suggestions on ways that these difficulties may be addressed.     

Autonomy, security, and inequality: China, India, the United States, and the globalization of science and technology

Perhaps no three countries have benefited from the globalization of science and technology (S&T) more than India, China, and the United States. All three have leveraged the growing internationalization of innovation to offset weaknesses in their own national innovation systems. Still, globalization raises critical questions of autonomy, security, and equality, and in turn the political struggle over these three issues shapes the pace and scope of the globalization of S&T. Significant deterioration on any one of these criterion could lead to substantially less support among policy makers and the public for the globally networked system of innovation that appears to be emerging.