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1 – 10 of over 16000This paper compares four external technology acquisition channels' (foreign technology transfer, exporting, inter-industry R&D spillover and domestic technology transfer…
Abstract
Purpose
This paper compares four external technology acquisition channels' (foreign technology transfer, exporting, inter-industry R&D spillover and domestic technology transfer) contributions to Chinese high-tech enterprises' innovation in the moderating role of absorptive capacity (AC).
Design/methodology/approach
Using technological catch-up theory and China Statistics Yearbook on High Technology Industry, this research investigates 16 Chinese high-tech industries from 2004 to 2015 via negative binomial regression.
Findings
The results show that indigenous knowledge transfer improves foreign-funded enterprises' (FFEs) innovation, while transnational knowledge transfer is the main channel for state-owned enterprises' (SOEs) technology acquisition. AC strengthens the positive relationship between transnational knowledge transfer and innovation in SOEs and improves FFEs' innovation and exported tacit knowledge absorption.
Originality/value
This study contributes to the literature on external technology acquisition (ETA) and innovation by examining the different mechanism of ETA instead of isolated strategy considering the AC and ownership structure of Chinese high-tech enterprises, which enrich the technological catch-up theory.
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Liang Wan, Biao Luo, Tieshan Li, Shanyong Wang and Liang Liang
– This paper aims to investigate the relation between technological innovation modes and their impact on eco-efficiency of industrial enterprises in China.
Abstract
Purpose
This paper aims to investigate the relation between technological innovation modes and their impact on eco-efficiency of industrial enterprises in China.
Design/methodology/approach
This paper first constructs a model to evaluate and measure the eco-efficiency of industrial enterprises in China from 2006 to 2010. Second, this paper compares the role of technological innovation modes – specifically, domestic independent innovation, foreign technology import and domestic technology transfer – in improving eco-efficiency of industrial enterprises in the Eastern, Central and Western regions of China by logarithmic regression.
Findings
The study finds that domestic independent innovation has a positive significant influence in improving eco-efficiency of industrial enterprises in the Eastern region; domestic technology transfer has a positive significant role in the Central region; and foreign technology import and domestic technology transfer positively affect the Western region.
Originality/value
This paper is the first to identify the role of technological innovation modes in improving eco-efficiency. The findings can help enterprises in the three regions adopt the most effective technological innovation mode. In addition, the results provide valuable insights into policy development to improve China’s overall eco-efficiency and to balance economic and industrial development among the three regions.
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Xing Li and Minyue Jin
Many people in developing countries are suffering from serious diseases, such as HIV and tuberculosis. On the other hand, drug patents impact the availability of the drug…
Abstract
Purpose
Many people in developing countries are suffering from serious diseases, such as HIV and tuberculosis. On the other hand, drug patents impact the availability of the drug for patients. Pharmaceutical technology transfer is widely used by domestic and foreign pharmaceutical enterprises because it promotes the availability of the drug for patients. The purpose of this paper, which is on drug technology transfer, is mainly to discuss how to solve the conflict between drug patent protection and public health from the perspective of the law, but not from the perspective of economics. To fill this gap, the authors introduce a model in the prescription drug market and analyze how a foreign manufacturer that produces brand name drugs authorizes a domestic enterprise that produces common drugs.
Design/methodology/approach
In this paper, the authors consider a situation that if the patent holders are provided a certain amount of compensation, then whether compulsory licensing would be an effective tool to promote competition and improve the availability of drugs. Furthermore, they also consider three different cooperation mechanisms, namely, fixed-fee contract, royalty contract and two-part tariff contract, under the case of technology transfer and give the condition of which contract would be better under different scenarios.
Findings
It is found that the product differentiation and the agent behavior of doctor in the domestic market have a deep impact on the foreign enterprise’s decision on technology transfer. If both fixed-fee contract and royalty contract are permitted, foreign enterprise will choose different transfer contracts under different conditions. Under two-part tariff contract, it is equivalent to a fixed-fee or royalty contract under certain conditions. Furthermore, all contracts can improve patients’ benefits, while the royalty contract and the two-part tariff contract would reduce importer’s social welfare under certain conditions.
Originality/value
Prescription drugs can treat many acute diseases and improve people’s quality of life. On the other hand, it requires investment in pharmaceutical research and development and is hard to afford the drug for the people living in poverty. This paper tries to solve the problem by introducing three cooperation contracts. The authors consider an innovative drug company and a regular drug company. The regular drug company can improve the quality of its drug by signing a technology transfer agreement with the innovative company. Three contracts are discussed in this paper; they are fixed-fee contract, royalty contract and two-part tariff contract. The authors examine the impact of different contracts on the companies’ profit, patients’ benefit and social welfare. It is found that quality differentiation of drugs and doctor behaviors can have large impacts on the company’s decision about technology adoption as well as contract choice strategies. In all of the three contracts, patients’ benefit improves, while the profit of the two companies and social welfare can increase or decrease under different contracts.
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Yue Zhang, Jiang Yu and Yanmei Liu
The purpose of this paper is to explain how institutional elements and market conditions shape and then reshape the development of high‐tech industries in large emerging countries.
Abstract
Purpose
The purpose of this paper is to explain how institutional elements and market conditions shape and then reshape the development of high‐tech industries in large emerging countries.
Design/methodology/approach
This paper develops a new framework to assess the impact of market and institutions on the high‐tech industry evolution in large emerging economies such as China. The qualitative approach based on historical data and interviews are provided to support the framework.
Findings
The framework and empirical research suggest that the institution systems and market dynamics will interact and influence the transformation process of industrial structure and the strategic choice of partnership arrangement between the domestic and foreign firms. The complementary assets which are considered as proxy to the resource accessibility in the market are also identified in the framework and it was verified in the case study.
Practical implications
This study has important implications for business strategy in emerging economies. The authors' observations indicate building close ties with domestic firms is an important asset to minimize the liability of foreignness for multinational firms. The paper has alluded to co‐evolutionary dynamics in the development of high‐tech industry in China by linking market initiative with institutional environment.
Originality/value
First, the study contributes to institutional‐based view of business strategy by explaining the choice of strategic partnerships between indigenous and foreign players arising from institutional and market considerations. Second, the study extends our understanding of technological catch up in newly‐industrializing countries by showing the interrelation between market elements and institutional arrangements and the corresponding changes to meet technological development needs.
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Artie W. Ng, Jay Chatzkel, K.F. Lau and Douglas Macbeth
China's emerging multinationals (CEMs) have gained attention for their increasing activities in mergers and acquisitions (M&As) within the global arena. Harnessing…
Abstract
Purpose
China's emerging multinationals (CEMs) have gained attention for their increasing activities in mergers and acquisitions (M&As) within the global arena. Harnessing previous studies about the significance of their cultural baggage and an underlying strategic intent in reverse technology transfer through cross‐border M&As, the purpose of this paper is to explore the dynamics of CEMs in their process of cross‐border M&As through the perspectives of intellectual capital.
Design/methodology/approach
Building on an interdisciplinary literature review, a theoretical framework is devised to exemplify such dynamics within a CEM during the course of reverse technology transfer and swift transformation into a global enterprise for technological innovation through M&As. A longitudinal case study is adopted to examine how two technology‐based CEMs continue to modify and reconfigure their respective committed intellectual capital resources while undergoing cross‐border M&A transactions.
Findings
The study suggests the relevance of a conceptual framework and unveils a causal development of dynamic capabilities that is evidenced by resource reconfiguration and post‐merger performance. It further reveals a reinforced dynamic capability development process that would enhance reverse technology transfer for domestic rather than overseas market development while pursuing equilibrium of knowledge.
Originality/value
This is an original paper that explores the cultural dynamics of CEMs and what influences their intellectual capital development during their cross‐border M&As. This paper articulates that CEMs need to create their own unique intellectual capital that contributes constructively to their international operations throughout their post‐merger integrations.
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The main purpose of his paper is to identify key barriers for technology transfer (TT) in a transitional economy. Poland is presented as a case study, with an emphasis on…
Abstract
Purpose
The main purpose of his paper is to identify key barriers for technology transfer (TT) in a transitional economy. Poland is presented as a case study, with an emphasis on domestic TT.
Design/methodology/approach
The paper is based on the author's empirical studies, using a few research methods, like: a postal questionnaire, the Delphi method, online questionnaire and a statistical data analysis.
Findings
In the period under analysis, no significant improvement occurred in the field of TT processes in Poland. The poor state of TT is due to the presence of numerous obstacles/barriers. According to empirical research, the most disturbing barriers facing the enterprise sector are: R&D institutions not fully open or prepared to cooperate with firms; inefficient systems supporting corporate innovation and R&D activities; obstacles hindering firms in acquiring outside financial resources; a lack of own financial resources; and a lack of innovative culture and mentality among employees. The lack of relevant communication between the science sector and industry is at the core of all difficulties in TT processes. On the basis of this, recommendations are formulated for all main actors on the innovation scene. At least some of the recommendations can be relevant for other countries in transition like, e.g. China.
Originality/value
This study is a comprehensive examination and analysis of TT processes in the country, with main stress put on existing barriers for the transfer of technologies and recommendations on how to remove the barriers.
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Ashish Arora, Andrea Fosfuri and Alfonso Gambardella
Firms have typically tried to profit from their technical innovations by selling them indirectly, embedded in goods and services. Markets for technology, in which…
Abstract
Firms have typically tried to profit from their technical innovations by selling them indirectly, embedded in goods and services. Markets for technology, in which innovations are sold or licensed, have been much rarer. Yet, trade in technology has grown systematically over the past 20 years, as reflected in the growth of arrangements such as licensing agreements, R&D joint ventures, and contract R&D. Recent estimates indicate that royalties received by American corporations for industrial processes may amount to about a quarter of total U.S. R&D. A number of supporting institutions that facilitate effective dissemination of information, standardization, and contracting are vital to the rise and functioning of markets for technology. Intellectual property rights, and in particular patents, are one such institution. The main objectives of this survey are to review critically the literature on the relationship between trade in technology and patent protection, and to assess the contribution of stricter and better-defined patent protection to the emergence of technology markets. We start our survey by providing a tentative taxonomy of markets for technology and some recent evidence on their extent and evolution. We then explore several reasons why firms would be willing to act as suppliers in the market for technology. The core of the survey revolves around the idea that patents facilitate the development of markets for technology in several ways: They enhance the ability of the licensor to extract rents from its innovation; they reduce costs in technology trade by forcing an increased codification of knowledge; they reduce information asymmetries, opportunistic behaviors, and transaction costs. However, the literature also points to some potential costs of stronger patents, including litigation costs and the problem of “anti-commons.” Finally, we explore the implications of patents and markets for technology for entry, competition and industry dynamics.
The purpose of this paper is to explore the limitations of the national system of innovation (NSI) approach in countries in developing economies with at best incomplete…
Abstract
Purpose
The purpose of this paper is to explore the limitations of the national system of innovation (NSI) approach in countries in developing economies with at best incomplete sets of market institutions.
Design/methodology/approach
This paper employed a grounded theory approach using semi‐structured interviews to explore a case study of one industry segment (the IC design industry segment) in one developing economy, China.
Findings
This paper argues that developing countries have institutions beyond the national system that can affect science and technology activities. Owing to co‐ethnic transnational technology networks and the politics of finance, China's firms experience distinct patterns of performance not explained by the NSI framework. A particular type of foreign firm, the hybrid foreign‐invested enterprise, combines foreign finance with commitment to China to drive China's technological development. Other firms, particularly those closely tied to the Chinese state, contribute less or even negatively to China's development. Strong ties to the state in the context of China actually undermine the incentive for innovation.
Originality/value
This paper deconstructs both NSI and the idea of national political economies more broadly. The paper also offers value in presenting a detailed case study of on‐the‐ground innovation and upgrading in China.
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Daniel Hanne and Martin Zeller
The process by which technological innovations developed in one institution are discovered, acquired, and adapted for use by another institution.
The purpose of this paper is to incorporate the spillover effects of trade on East Asian productivity, namely China, Indonesia, Japan, Korea, Malaysia, Philippines…
Abstract
Purpose
The purpose of this paper is to incorporate the spillover effects of trade on East Asian productivity, namely China, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore and Thailand.
Design/methodology/approach
This study attempts to fill in the gaps of previous studies by developing applications of extensive growth theory that shows the trade spillover effects on productivity growth of ASEAN 5 plus3. It further provides a meaningful statistical analysis in which, the first step of the estimation to get the coefficients of the explanatory variables that has been used by econometric approach. It can be restated here that in addition, a second step that plugs the parameters of the variables into the model in order to compute the contribution rates of productivity indicators including the calculation of the residual of the model (total factor productivity – TFP) and GDP contributions being used by growth accounting approach. The TFP is considered be trade spillover effects indicator that is showed the technology transfer to domestic firms and human capital skills upgrading.
Findings
The paper finds that there was a little contribution of exports and imports to TFP growth in these countries during all the periods of study. It confirms that high physical capital input growth resulted in high gross domestic product (GDP) contribution and low TFP contribution with insignificant technological progress experiences by most of these countries, with the exception of Japan and to some extent, South Korea.
Originality/value
In this respect, the trade spillover effects had transferred technology and developed human capital skills to a greater extent in the cases of Japan and Republic of Korea and their economies considered to be productivity driven economies.
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