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The relationship between industrial policy and exploratory innovation is imperfect.
Abstract
Purpose
The relationship between industrial policy and exploratory innovation is imperfect.
Design/methodology/approach
The authors use Chinese high-tech enterprise identification policy (HTEP) as a natural experimental group to test policy impacts, spillover effects and mechanisms of action.
Findings
First, HTEP promotes exploratory innovation. In addition, HTEP has a greater impact on non-exploratory innovation. Second, HTEP has spillover effects in two phases: HTEP (2008) and the 2016 policy reform. HTEP affects exploratory innovation in nearby non-high-tech firms, and the policy effect decreases monotonically with increasing distance from the treatment group. Third, HTEP affects innovation capacity through financing constraints, technical personnel flow and knowledge flow, which explains not only policy effects but also spillover effects. Fourth, the analysis of policy heterogeneity shows that the 2016 policy reforms reinforce the positive effect of HTEP (2008). By deducting the effects of other policies, the HTEP effect is found to be less volatile. In terms of the continuity of policy identification, continuous uninterrupted identification has a crucial impact on the improvement of firms’ innovation capacity compared to repeated certification and certification expiration. Finally, HTEP has a crowding-out effect in state-owned enterprises and large firms’ innovation.
Originality/value
This paper contributes to the existing literature in several ways. First, the authors enrich the literature on industrial policy through exploratory innovation research. While previous studies have focused on R&D investment and patents (Dai and Wang, 2019), exploratory innovation helps firms break away from the inherent knowledge mindset and achieve sustainable innovation. Second, few studies have explored the characteristics of industrial policies. In this paper, the authors subdivide the sample into repeated certification, continuous certification and certification expiration according to high-tech enterprise identification. In addition, the authors compare the differences in policy implementation effects between the 2016 policy reform and the 2008 policy to provide new directions for business managers and policy makers. Third, innovation factors guided by industrial policies may cluster in specific regions, which in turn manifest externalities. This is when the policy spillover effect is worth considering. This paper fills a gap in the industrial policy literature by examining the spillover effects. Finally, this paper also explores the mechanisms of policy effects from three perspectives: financing constraints, technician mobility and knowledge mobility, which can affect not only the innovation of beneficiary firms directly but also indirectly the innovation of neighboring non-beneficiary firms.
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This study aims to develop a model of learning-by-hiring in which knowledge gains may occur at the time of recruitment but also after recruitment when other incumbent…
Abstract
Purpose
This study aims to develop a model of learning-by-hiring in which knowledge gains may occur at the time of recruitment but also after recruitment when other incumbent organizational members assimilate a recruit’s knowledge. The author’s model predicts that experienced recruits are more likely to catalyze change to their organization’s core technological capabilities.
Design/methodology/approach
The continuous-time parametric hazard rate regressions predict core technological change in a long panel (1970–2017) of US biotechnology industry patent data. The author uses over 140,000 patents to model the evolution of knowledge of over 52,000 scientists and over 4,450 firms. To address endogeneity concerns, the author uses the Heckman selection method and does robustness tests using a difference-in-difference analysis.
Findings
The author finds that a hire’s prior research and development (R&D) experience helps overcome inertia arising from her or his new-to-an-organization “distant” knowledge to increase the likelihood of core technological change. In addition, while the author finds that incumbent organizational members resist technological change, experienced hires may effectively induce them to adopt new ways of doing things. This is particularly the case when hires collaborate with incumbents in R&D projects. Understanding the effects of hiring on core technological change, therefore, benefits from an assessment of hire R&D experience and its effects on incumbent inertia in an organization.
Practical implications
First, the author does not recommend managers to hire scientists with considerable distant knowledge only as this may be detrimental to core technological change. Second, the author recommends organizations striving to effectuate technological change to hire people with considerable prior R&D experience as this confers them with the ability to influence other members and socialize incumbent members. Third, the author recommends that managers hire people with both significant levels of prior experience and distant knowledge as they are complements. Finally, the author recommends managers to encourage collaboration between highly experienced hired scientists and long-tenured incumbent organizational members to facilitate incumbent learning, socialization and adoption of new ways of doing things.
Originality/value
This study develops a model of learning-by-hiring, which, to the best of the authors’ knowledge, is the first to propose, test and advance KM literature by showing the effectiveness of experienced hires to stimulate knowledge diffusion and core technological change over time after being hired. This study contributes to innovation, organizational learning and strategy literatures.
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Fushu Luan, Yang Chen, Ming He and Donghyun Park
The main purpose of this paper is to explore whether the nature of innovation is accumulative or radical and to what extent past year accumulation of technology stock can predict…
Abstract
Purpose
The main purpose of this paper is to explore whether the nature of innovation is accumulative or radical and to what extent past year accumulation of technology stock can predict future innovation. More importantly, the authors are concerned with whether a change of policy regime or a variance in the quality of technology will moderate the nature of innovation.
Design/methodology/approach
The authors examined a dataset of 3.6 million Chinese patents during 1985–2015 and constructed more than 5 million citation pairs across 8 sections and 128 classes to track knowledge spillover across technology fields. The authors used this citation dataset to calculate the technology innovation network. The authors constructed a measure of upstream invention, interacting the pre-existing technology innovation network with historical patent growth in each technology field, and estimated measure's impact on future innovation since 2005. The authors also constructed three sets of metrics – technology dependence, centrality and scientific value – to identify innovation quality and a policy dummy to consider the impact of policy on innovation.
Findings
Innovation growth is built upon past year accumulation and technology spillover. Innovation grows faster for technologies that are more central and grows more slowly for more valuable technologies. A pro-innovation and pro-intellectual property right (IPR) policy plays a positive and significant role in driving technical progress. The authors also found that for technologies that have faster access to new information or larger power to control knowledge flow, the upstream and downstream innovation linkage is stronger. However, this linkage is weaker for technologies that are more novel or general. On most occasions, the nature of innovation was less responsive to policy shock.
Originality/value
This paper contributes to the debate on the nature of innovation by determining whether upstream innovation has strong predictive power on future innovation. The authors develop the assumption used in the technology spillover literature by considering a time-variant, directional and asymmetric matrix to model technology diffusion. For the first time, the authors answer how the nature of innovation will vary depending on the technology network configurations and policy environment. In addition to contributing to the academic debate, the authors' study has important implications for economic growth and industrial or innovation management policies.
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Feifei Zhong, Guoping Liu, Zhenyu Lu, Lingyan Hu, Yangyang Han, Yusong Xiao and Xinrui Zhang
Robotic arms’ interactions with the external environment are growing more intricate, demanding higher control precision. This study aims to enhance control precision by…
Abstract
Purpose
Robotic arms’ interactions with the external environment are growing more intricate, demanding higher control precision. This study aims to enhance control precision by establishing a dynamic model through the identification of the dynamic parameters of a self-designed robotic arm.
Design/methodology/approach
This study proposes an improved particle swarm optimization (IPSO) method for parameter identification, which comprehensively improves particle initialization diversity, dynamic adjustment of inertia weight, dynamic adjustment of local and global learning factors and global search capabilities. To reduce the number of particles and improve identification accuracy, a step-by-step dynamic parameter identification method was also proposed. Simultaneously, to fully unleash the dynamic characteristics of a robotic arm, and satisfy boundary conditions, a combination of high-order differentiable natural exponential functions and traditional Fourier series is used to develop an excitation trajectory. Finally, an arbitrary verification trajectory was planned using the IPSO to verify the accuracy of the dynamical parameter identification.
Findings
Experiments conducted on a self-designed robotic arm validate the proposed parameter identification method. By comparing it with IPSO1, IPSO2, IPSOd and least-square algorithms using the criteria of torque error and root mean square for each joint, the superiority of the IPSO algorithm in parameter identification becomes evident. In this case, the dynamic parameter results of each link are significantly improved.
Originality/value
A new parameter identification model was proposed and validated. Based on the experimental results, the stability of the identification results was improved, providing more accurate parameter identification for further applications.
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Karin Goebel, Sabrine Dias Losekann, Paola Thalissa Bartoski Polla, Karla Bernardo Mattoso Montenegro and Andréa Rodrigues Ávila
This study aimed to analyze the strategies and challenges related to technology transfer (TT) in technology transfer offices (TTOs), specifically regarding actions to offer…
Abstract
Purpose
This study aimed to analyze the strategies and challenges related to technology transfer (TT) in technology transfer offices (TTOs), specifically regarding actions to offer technologies in their portfolios.
Design/methodology/approach
The qualitative research used a multiple case study based on interviews with TTO managers from seven Brazilian public Science and Technology Institutions (STIs): University of São Paulo (USP), State University of Campinas (UNICAMP), Paulista State University (UNESP), Federal University of Minas Gerais (UFMG), Federal University of Paraná (UFPR), Federal Technological University of Paraná (UTFPR) and Oswaldo Cruz Foundation (FIOCRUZ).
Findings
STIs that invest more resources in their portfolio’s active offering and marketing are more successful in TT than STIs with a passive strategy. Although this active strategy has grown in importance, there is a disparity among Brazilian TTOs as some are still passive in commercializing their intellectual property. This research also highlights the need for clear policies to overcome obstacles related to legal uncertainty for researchers who wish to undertake projects as entrepreneurs using the intellectual property of STIs.
Research limitations/implications
The results of this study cannot be generalized since its conclusions are limited to the studied institutions. However, the outcomes indicate some interesting matters for managers of STIs, public policymakers and TT researchers.
Originality/value
Literature on marketing and innovation related to TT between research institutions and companies in developing countries is still limited. Thus, this research contributes to generating knowledge in the field and improving TTOs.
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Shiwangi Singh and Sanjay Dhir
Business research has highlighted the importance of knowledge transfer and innovation in multinational firms for better performance outcomes. However, the existing body of…
Abstract
Purpose
Business research has highlighted the importance of knowledge transfer and innovation in multinational firms for better performance outcomes. However, the existing body of literature is characterized by differentiated theories, antecedents and outcomes. This study aims to address this gap by adopting a systematic approach to analyze knowledge transfer and innovation literature from the perspective of multinational organizations.
Design/methodology/approach
This study follows “preferred reporting items for systematic reviews and meta-analyses” (PRISMA) guidelines for conducting a systematic literature review. The study adopts a systematic approach for analyzing the literature using School of thought (S), Contexts (C), Methodologies (M), Triggers (T), Barriers (B), Facilitators (F) and Outcomes (O) framework (SCM-TBFO framework) devised for holistic literature review. The study analyzes 75 articles from reputed journals from 2000 to 2022.
Findings
In general, knowledge transfer and innovation in multinationals is a relatively new area and is evolving rapidly. There are many opportunities to study the various perspectives that are included in the SCM-TBFO framework. The key schools of thought included the evolutionary theory of innovation, institutional theory and internationalization theory. The studies had differing settings or contexts, including China, Europe, the USA and Taiwan. Further, key methodologies that were used included regression, case studies, structural equation modeling (SEM) and theoretical studies. Knowledge transfer and innovation triggers included competitive advantage, competitive pressure, constant requirements for better products and services, foreign direct investment (FDI) and globalization. Knowledge transfer and innovation facilitators were categorized into strategy-related facilitators, organization culture and orientation-related facilitators, and resource-related facilitators. Knowledge transfer and innovation barriers included autonomy, international knowledge dispersion, risk of knowledge leakage, search breadth, ambiguity and institutional voids. Key outcomes of knowledge transfer and innovation in multinationals included financial performance, innovation performance, knowledge flow, transfer effectiveness, patents and new product development.
Originality/value
By synthesizing the literature, the study aims to provide an overview of the current state of research on knowledge transfer and innovation in multinationals. The study develops a holistic model for fostering knowledge transfer and innovation in multinationals. The proposed novel framework can also be applied to perform a holistic assessment of the current literature in various research domains. Further, the study suggests future theory development and research agendas. The study also provides implications for practitioners using the framework to achieve more desirable outcomes.
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Mingming Zhao, Fuxiang Wu and Xia Xu
Complex technology not only provides potential economic benefits but also increases the difficulty of application. Whether and how upstream technological complexity affects…
Abstract
Purpose
Complex technology not only provides potential economic benefits but also increases the difficulty of application. Whether and how upstream technological complexity affects downstream manufacturers' innovation through vertical separation structure is worth discussing, but it has not been effectively discussed.
Design/methodology/approach
Through theoretical analysis and empirical testing, this article discusses the cost effect and market competition effect caused by upstream technological complexity on downstream manufacturers and further elucidates the impact of upstream technological complexity on downstream manufacturers' innovation.
Findings
Research has found that the impact of upstream technological complexity on the downstream manufacturers' innovation depends on the cost effect and market competition effect. The cost effect caused by the complexity of upstream technology inhibits the innovation of downstream manufacturers. In contrast, the market competition effect promotes the innovation of downstream manufacturers. There are differences in the cost effect and market competition effect of upstream technological complexity on different types of downstream manufacturers, so there is also significant heterogeneity in the impact of upstream technological complexity on innovation of different types of downstream manufacturers.
Originality/value
The conclusions of this article improve the understanding of the relationship between upstream technological complexity and downstream innovation and provide helpful implications for industrial chain innovation.
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Anna Sokolova, Polina Lobanova and Ilya Kuzminov
The purpose of the paper is to present an integrated methodology for identifying trends in a particular subject area based on a combination of advanced text mining and expert…
Abstract
Purpose
The purpose of the paper is to present an integrated methodology for identifying trends in a particular subject area based on a combination of advanced text mining and expert methods. The authors aim to test it in an area of clinical psychology and psychotherapy in 2010–2019.
Design/methodology/approach
The authors demonstrate the way of applying text-mining and the Word2Vec model to identify hot topics (HT) and emerging trends (ET) in clinical psychology and psychotherapy. The analysis of 11.3 million scientific publications in the Microsoft Academic Graph database revealed the most rapidly growing clinical psychology and psychotherapy terms – those with the largest increase in the number of publications reflecting real or potential trends.
Findings
The proposed approach allows one to identify HT and ET for the six thematic clusters related to mental disorders, symptoms, pharmacology, psychotherapy, treatment techniques and important psychological skills.
Practical implications
The developed methodology allows one to see the broad picture of the most dynamic research areas in the field of clinical psychology and psychotherapy in 2010–2019. For clinicians, who are often overwhelmed by practical work, this map of the current research can help identify the areas worthy of further attention to improve the effectiveness of their clinical work. This methodology might be applied for the identification of trends in any other subject area by taking into account its specificity.
Originality/value
The paper demonstrates the value of the advanced text-mining approach for understanding trends in a subject area. To the best of the authors’ knowledge, for the first time, text-mining and the Word2Vec model have been applied to identifying trends in the field of clinical psychology and psychotherapy.
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An important but neglected area of investigation in digital entrepreneurship is the combined role of both core and peripheral members of an emerging technological field in shaping…
Abstract
Purpose
An important but neglected area of investigation in digital entrepreneurship is the combined role of both core and peripheral members of an emerging technological field in shaping the symbolic and social boundaries of the field. This is a serious gap as both categories of members play a distinct role in expanding the pool of resources of the field. I address this gap by exploring how membership category is related to funding decisions in the emerging field of artificial intelligence (AI).
Design/methodology/approach
The first quantitative study involved a sample of 1,315 AI-based startups which were founded in the period of 2011–2018 in the United States. In the second qualitative study, the author interviewed 32 members of the field (core members, peripheral members and investors) to define the boundaries of their respective role in shaping the social boundaries of the AI field.
Findings
The author finds that core members in the newly founded field of AI were more successful at attracting funding from investors than peripheral members and that size of the founding team, number of lead investors, number of patents and CEO approval were positively related to funding. In the second qualitative study, the author interviewed 30 members of the field (core members, peripheral members and investors) to define their respective role in shaping the social boundaries of the AI field.
Research limitations/implications
This study is one of the first to build on the growing literature in emerging organizational fields to bring empirical evidence that investors adapt their funding strategy to membership categories (core and peripheral members) of a new technological field in their resource allocation decisions. Furthermore, I find that core and peripheral members claim distinct roles in their participation and contribution to the field in terms of technological developments, and that although core members attract more resources than peripheral members, both actors play a significant role in expanding the field’s social boundaries.
Practical implications
Core AI entrepreneurs who wish to attract funding may consider operating in fewer categories in order to be perceived as core members of the field, and thus focus their activities and limited resources to build internal AI capabilities. Entrepreneurs may invest early in filing a patent to signal their in-house AI capabilities to investors.
Social implications
The social boundaries of an emerging technological field are shaped by a multitude of actors and not only the core members of the field. The author should pay attention to the role of each category of actors and build on their contributions to expand a promising field.
Originality/value
This paper is among the first to build on the growing literature in emerging organizational fields to study the resource acquisition strategies of entrepreneurs in a newly establishing technological field.
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Hamid Moradlou, Samuel Roscoe, Hendrik Reefke and Rob Handfield
This paper aims to seek answers to the question: What are the relevant factors that allow not-for-profit innovation networks to successfully transition new technologies from…
Abstract
Purpose
This paper aims to seek answers to the question: What are the relevant factors that allow not-for-profit innovation networks to successfully transition new technologies from proof-of-concept to commercialisation?
Design/methodology/approach
This question is examined using the knowledge-based view and network orchestration theory. Data are collected from 35 interviews with managers and engineers working within seven centres that comprise the High Value Manufacturing Catapult (HVMC). These centres constitute a not-for-profit innovation network where suppliers, customers and competitors collaborate to help transition new technologies across the “Valley of Death” (the gap between establishing a proof of concept and commercialisation).
Findings
Network orchestration theory suggests that a hub firm facilitates the exchange of knowledge amongst network members (knowledge mobility), to enable these members to profit from innovation (innovation appropriability). The hub firm ensures positive network growth, and also allows for the entry and exit of network members (network stability). This study of not-for-profit innovation networks suggests the role of a network orchestrator is to help ensure that intellectual property becomes a public resource that enhances the productivity of the domestic economy. The authors observed how network stability was achieved by the HVMC's seven centres employing a loosely-coupled hybrid network configuration. This configuration however ensured that new technology development teams, comprised of suppliers, customers and competitors, remained tightly-coupled to enable co-development of innovative technologies. Matching internal technical and sectoral expertise with complementary experience from network members allowed knowledge to flow across organisational boundaries and throughout the network. Matrix organisational structures and distributed decision-making authority created opportunities for knowledge integration to occur. Actively moving individuals and teams between centres also helped to diffuse knowledge to network members, while regular meetings between senior management ensured network coordination and removed resource redundancies.
Originality/value
The study contributes to knowledge-based theory by moving beyond existing understanding of knowledge integration in firms, and identified how knowledge is exchanged and aggregated within not-for-profit innovation networks. The findings contribute to network orchestration theory by challenging the notion that network orchestrators should enact and enforce appropriability regimes (patents, licences, copyrights) to allow members to profit from innovations. Instead, the authors find that not-for-profit innovation networks can overcome the frictions that appropriability regimes often create when exchanging knowledge during new technology development. This is achieved by pre-defining the terms of network membership/partnership and setting out clear pathways for innovation scaling, which embodies newly generated intellectual property as a public resource. The findings inform a framework that is useful for policy makers, academics and managers interested in using not-for-profit networks to transition new technologies across the Valley of Death.
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