Innovative Cost Research Articles

Determinants of the Use of Big Data Technologies by Organizations in Russian Regions

A scientific discussion is unfolding around data as a new factor of production that contributes to the transformation of traditional sectors of the economy, industrial integration, and ensures interregional interaction. At the same time, the question of the relationship with such traditional production factors as labor and capital needs to be answered. The study aims to identify the determinants of organizations' use of Big Data at a regional level. The main hypothesis of the study suggests that the key determinants of organizations' use of big data technologies are digital labor, digital capital and the socio-economic characteristics of regions. In the study we proposed a modified knowledge production function which was tested on open data from the Federal State Statistics Service for 85 regions of Russia in 2021-2022. Panel models were constructed using the method of least squares, generalized feasible least squares. The study presents illustrative material made using cartograms and graphical methods. The results of the study distinguished the spatial heterogeneity in the use of Big Data technologies in Russia's regions and differentiation of the regions by volume of digital capital and digital labor. Panel data models with random effects confirmed the positive impact of digital labor and digital capital on organizations' use of Big Data. Among the socio-economic characteristics of regions as determinants of the use of big data technologies, significant effects were obtained for the share of urban population, gross regional product and share of innovation costs. The study identifies the determinants of the development of the data economy in Russian regions, considering geographic, technological, and economic differentiation. The theoretical significance of the study lies in the proposal of the author's concept of a modified knowledge production function, which can be used as a fundamental basis for the development of the theory of data economics. The practical significance of the study lies in the validity of the value of Big Data, the use of which can help institutions and government authorities find new opportunities for the development of the data economy, taking into account regional differentiation, improving the methodology for monitoring the use of digital technologies by organizations, and identifying the key factors influencing the use of Big Data technologies by organizations.

An innovative cost taxonomy: identifying and classifying costs of technology solutions

An innovative cost taxonomy: identifying and classifying costs of technology solutions

Людський капітал у повоєнному відновленні енергетичної галузі

Restoring the energy infrastructure damaged due to military aggression requires consistent political leadership, effective planning, financial resources, and human capital. The purpose of the article is to analyze the current state of human capital formation and justify the directions of its increase. The issue of human capital formation is presented in the article through the prism of the need for the post-war recovery of Ukraine's energy industry on an innovative basis. Within the framework of the economic mechanism of human capital formation for the needs of the energy transition, a critical component is the system of education and science. The authors assessed the "Human capital and research" factor for post-war recovery based on an input-output analysis of the components of the Global Innovation Index for Ukraine. The study showed a decrease in the contribution of the "Human capital and research" factor to the development of the innovative sphere of Ukraine during 2021-2023. The decomposition of the "Human capital and research" factor allowed us to conclude its further weakening by the following components: the total volume of education funding in % of GDP; the average performance of students according to the PISA assessment; coverage of the population by higher education; expenditure on research and development in % of GDP; the success of Ukrainian universities, measured regarding the success of the top 3 universities in the world according to the version of the QS World University Rankings. Based on the results of the analysis, steps aimed at strengthening individual components of human capital are proposed: diversification of non-state participation in both financing and provision of education, in particular through state stimulation of training at the workplace; support of employment with intensive use of knowledge; determination of priority areas of specialist training. State instruments for the implementation of these steps are: the provision of direct budget support in the form of grants and innovative transfers; the provision of state guarantees for enterprise loans obtained for the implementation of innovation and investment projects; the provision of state support for the export of carbon-free energy products; reduction of the corporate income tax base by the volume of innovation costs and personnel training costs.

Environmental reclamation of limestone mining sites in Italy: Financial evaluation, challenges and proposals for sustainable development

Currently the environmental restoration of former extraction sites of limestone materials to be used in construction sector is still an open issue, challenging the opportunities for a more sustainable development of local communities.The present study evaluates the multiple causes underlying the abandonment of former limestone quarries and the lack of their reclamation as well as proposals to promote their environmental restoration.We primarily frame the issue in both the European and Italian regulatory framework. Then, the present study applies an innovative Cost Revenue Analysis to a case study of a generic environmental restoration project of a former extractive limestone site. Such analysis deepens on investment and operating costs, revenues, Net Present Value and Revenue/Costs ratio. Results show that restoration activities, performed in agreement with current regulations, involving the creation of terraces in embankments by means of excavation materials from external construction sites or even acting directly on the existing quarry, are currently discouraging for entrepreneurs, since they do not generate enough revenues to cover the costs of restoration. As a result, we suggest some solutions to strengthen the current regulatory and political framework, to make the restoration activities more convenient in financial terms. Such solutions would be also beneficial for the society and environment.

The impact of imperfect financial markets and stock holdings on corporate innovation: Evidence from China

According to previous research on developed countries, companies engaged in more corporate innovation are likely to have larger stock holdings. Companies are more likely to reserve stock holdings in a transitioning economy like China due to the prevalence of financial market flaws. This research suggests stock ownership and banking ties to the government as two alternative credit financing channels that Listed Chinese companies may employ to mitigate the effects of market imperfections by attracting foreign investment. Financial limitations can be efficiently mitigated through external finance facilitation channels (EFFCs) by lowering debtors and businesses have different levels of knowledge. However, the EFFC effect is diminishing due to the improved market environment brought about by China's ongoing financial reform. This research, therefore, considers potential avenues for reducing the EFFC effect, with practical policy implications for reforming China's financial markets to lower corporate innovation costs.

Implementation of industrial enterprises’ green innovation strategy under technology spillover

ABSTRACT In recent years, advanced emerging technologies have paved the way for new opportunities in green innovation strategies within industrial enterprises. This research aims to examine the impact of technology spillover on the strategic management of industrial enterprises’ green innovation initiatives and evaluate the role of government intervention. By employing an evolutionary game model and simulation approach, we identify a direct relationship between industrial enterprises’ strategic choices in green innovation and the degree of technology spillover. With significant technology spillover, industrial enterprises demonstrate an increased tendency to access innovation resources and technical support, leading to a preference for breakthrough green innovation strategies. Enhanced innovation capabilities and a higher innovation cost elasticity coefficient help reduce the risks associated with breakthrough green innovation, further amplifying the positive effects of technology spillover on such initiatives. Moreover, when the government provides considerable cost subsidies and incentive funds, industrial enterprises show a stronger predilection towards breakthrough green innovation strategies. This research adds to the body of knowledge concerning technology analysis, strategic management of green innovation, and the sustainable progression of industrial enterprises.

Research on the diffusion of green innovation behavior based on complex network evolutionary game

AbstractThe strategic choice of green innovation subjects and the evolution of green innovation networks have a two‐way feedback effect. This study aims to construct a comprehensive framework for analyzing the evolution of green innovation networks from micro to macro levels. The gravity model demonstrates the structural complexity of green innovation networks. Additionally, an evolutionary game model based on green innovation networks is constructed to discuss the network's diffusion mechanism of green innovation behavior and its influence on network characteristic indicators. The research findings reveal that (1) the green innovation networks in China exhibit a continuous growth trend but the connectivity of urban nodes varies significantly; (2) the green innovation network's marginal nodes are the “vulnerable groups” in the evolutionary game and the active green innovation strategy cannot be completely spread; and (3) the cost of passive green innovation and the demand for green consumption are the internal and external driving forces that promote the spread of the active green innovation strategy in the network. Finally, this study concludes with several suggestions, including the establishment of a mechanism to promote green innovation reform with the city, industry, and enterprises as the node, fulcrum, and focus, respectively. Additionally, it suggests increasing domestic demand for green consumption. These findings and suggestions can provide a reference for the development of green innovation in other countries or regions.

ІННОВАЦІЇ ЯК КЛЮЧ ДО ЕКОНОМІЧНОГО РОЗВИТКУ І КОНКУРЕНТОСПРОМОЖНОСТІ ПІДПРИЄМСТВ БУДІВЕЛЬНОЇ ГАЛУЗІ

The article is devoted to the role of innovations in economic development and increasing the competitiveness of enterprises in the construction industry. Currently, innovations are actively developing in construction, in particular, the introduction of the latest technologies, solutions and materials. Special attention is paid to innovations and "ecological construction". These phenomena and processes are an important factor in increasing the productivity and competitiveness of construction enterprises and the construction industry in general. The article describes the sources of financing of innovative activities, which are divided into own funds of enterprises, funds from the state budget, funds from non-resident investors, and funds from other sources. The article analyzes the costs of innovation for industrial enterprises over the past 10 years, and presents a diagram of changes in the size of innovation costs for industrial enterprises. The article analyzes the sources of financing the innovative activity of industrial enterprises, because construction enterprises belong to the complex of heavy industry branches and provide it with the most important materials. Analysis of the sources of innovation financing for industrial enterprises during 2010-2020 proves that the main source of investment financing is the company's own funds. The article also presents the structure of sources of financing of innovative activities of industrial enterprises. Summarizing the importance of innovations for the economic development and competitiveness of enterprises in the construction industry, a number of advantages are highlighted, namely: innovations act as a driving force for development, contribute to the competitiveness of enterprises and the economic development of the industry.

Cement and concrete decarbonisation roadmaps – a meta-analysis within the context of the United Kingdom

Decarbonisation is the most urgent issue facing the cement and concrete industries, with an aim to reach net-zero carbon dioxide emissions by 2050. In response to this, several decarbonisation roadmaps have been published in recent years, to explore routes for how different decarbonisation strategies can be used to achieve this aim. However, there is a lack of understanding around the similarities and differences between these roadmaps. In this study a meta-analysis of nine cement and concrete sector roadmaps was conducted, with a detailed focus on five roadmaps covering Europe emphasising their applicability within the context of the United Kingdom. Whilst there are some similarities amongst roadmaps in terms of the decarbonisation strategies which are consistently recommended, there are also key differences. Industry roadmaps oriented towards cement-based strategies, whilst non-industry roadmaps were more inclusive of concrete-based strategies. The significance of this study is to highlight the difficulties faced by policymakers and investors in choosing which strategies to prioritise, when there is still considerable uncertainty in the roadmap literature. Recommendations are made for a greater focus on consideration of the construction sector practices which provide more autonomy to practitioners to adopt and implement concrete-based strategies and dematerialisation in future iterations of industry roadmaps, and more research into the capital and operating costs of technological innovations

ОЦІНЮВАННЯ ВПЛИВУ ІННОВАЦІЙ НА СОЦІАЛЬНО-ЕКОНОМІЧНИЙ РОЗВИТОК ПІДПРИЄМСТВ В УМОВАХ ЕКОНОМІКИ ЗНАНЬ

The current state of world economic development leads to the emergence of new paradigms for innovations and the promotion of knowledge related to economic activity, which necessitates the determination of the parameters in which innovations will impact on the socio-economic functioning and development of individual enterprises as subjects of the development in the knowledge economy. The aim of the research. The purpose of this article is to evaluate the impact of innovativeness on the socio-economic development of enterprises in the conditions of the knowledge economy and to highlight the directions of such influence. The subject of the research is the influence of innovations on the development of the enterprise. The methods of the research. In the researched analysis of literary sources, correlation analysis and generalization were used. The hypothesis of the research: innovations contribute to the socio-economic development of enterprises. The statement of basic materials. The main research material. According to the Global Innovation Index (GII), Ukraine took 55th place among 37 countries with a group of economies with income below 132 economies. The main innovative advantages of Ukraine and weak points are identified. As a result of the correlation analysis of costs for innovations of industrial enterprises and the volumes of net profit of enterprises, it was found that innovations affect the volumes of net profit, however, this is not a key factor, but rather one of the factors of growth of the enterprise's profit. As a result of the correlation analysis of the costs of industrial enterprises for innovation and the volume of enterprises sales, it was determined that innovations contribute to the increase of the volume of sales, and, therefore, the growth of the scale of the enterprise, which, in turn, indicates socio-economic growth. A study of the place in the market of the most innovative enterprises of Ukraine determined that innovations contribute to the increase of capital. The originality and practical significance of the research. The conducted research confirms the need for the development of innovations to increase the company's profitability, strengthen competitive advantages and strengthen its position on the market. Conclusions and perspectives of further research. Innovation provides positive business outcomes, allowing them to have sustainable long-term growth, lower costs and automated work for employees. At the same time, innovation leads to increased costs that businesses incur in training staff to adapt to the innovation, or in other cases where the company has to hire new and skilled employees who can be trained and follow the innovation

Innovation and mergers in generalized asymmetric oligopolies

AbstractThis paper addresses the impact of horizontal mergers on innovation, in an industry with a generic number of low‐cost and high‐cost competitors who first decide their level of process innovation and then compete in quantities in the product market. We derive the Nash equilibrium expressions for this game as a function of all the parameters involved, including number of players of each type, production costs, cost reductions achieved, and associated process innovation costs. Model results and parameter dependency are then illustrated in with a simulation of horizontal merger effects.

Innovative activity and economic efficiency of the food industry enterprises of Ukraine

The development and implementation of innovations in the food industry and the production of modern food products at the current stage is a key factor in progress in the field of quality of life, one of the components of which is the balanced and caloric nutrition of the population. It has been established that, in this regard, Ukraine is significantly behind the EU countries in terms of the main parameters: production and sale of products new to the market, costs for innovation, the share of innovatively active enterprises, etc. Therefore, according to ratings agencies, it is in the group of "slow innovators" or outsiders. In order to radically change the situation, research has established that it is necessary to significantly increase funding in the innovation field, expand scientific research, development of innovative products and modern technologies, production of the latest equipment and a network of innovatively active enterprises with the aim of increasing the production of innovative products. The production activity of food industry enterprises is measured by natural and economic indicators, and therefore it is appropriate to analyze it in the time period from 2015, that is, when the agrarian crisis was in full swing, and in the following years, its consequences were overcome and noticeable progress in development took place. It was established that the production of food products doubled in value, and the profitability of production was clearly divided into two periods: the first two years were unprofitable, and the profitability was relatively low, but the following were characterized by profitability and increased profitability. A noticeable decrease in profitability was observed at the end of the studied period and this is explained by the crisis that was provoked under the influence of the coronavirus epidemic.

Codevelopment Versus Outsourcing: Who Should Innovate in Supply Chains

Outsourcing has long been a strategy to decrease cost. Increasingly firms recognize the value in their supply chains and call on suppliers to innovate, both in products and processes. Innovation to increase quality and demand or to reduce costs is critical to firm and supply chain success. In a two-stage supply chain, we investigate the impact of focal firm and supplier innovation costs (and capabilities) on the type of outsourcing chosen and the resulting investments in process and product innovation. The focal firm determines whether to perform design (including product innovation in the form of quality enhancement) and manufacturing (including process innovation in the form of cost reduction) in-house, to outsource manufacturing/process innovation while insourcing design/product innovation, to outsource both manufacturing/process innovation and design/product innovation, or to codevelop product innovation while outsourcing manufacturing/process innovation. We also examine the conditions under which codevelopment is favorable, given the supply chain faces potential positive and negative synergies from either the colocation of the innovation activities or costs of collaboration. After characterizing the optimal outsourcing decision, we find that the decision to outsource is more nuanced than simply which activities to outsource but must include options to collaborate on particular activities and specifically product innovation. We offer the insight to managers that codevelopment, despite the costs of collaboration, can benefit the firm and result in higher profits. This occurs through the improvement of demand via higher quality products.

Possible green-technology innovation motivated by China’s pilot carbon market: new evidence from city panel data

ABSTRACT Whether the carbon market can promote green technology innovation is a controversial topic because of an incomplete understanding of the mechanism and inconsistent datasets. This study first comprehensively explores the theoretical mechanism of the carbon market on green technology innovation from four aspects: the compensation effect, cost control motivation, crowding-out effect, and spillover effect. A sample of 209 cities in China is employed to empirically test the impact of China’s pilot carbon market on green technology innovation and its regional and industry heterogeneity using quasi-natural experiments. We found that China’s pilot carbon market has significantly promoted green technology innovation at the city level, especially in provincial capital cities, achieving a maximum effect two years after the shock. However, there is no significant spillover effect on the surrounding non-pilot cities, and Chongqing has realized the suppression of green technology innovation under the domination of the crowding-out effect. At the industry level, the pilot carbon market significantly promotes green technology innovation in the transportation, construction, chemical, and power industries but exhibits crowding-out effects in the steel industry. Finally, we propose policy implications for maintaining reasonable and stable carbon prices to stimulate compensation effects, scientifically determining the order of industry inclusion to avoid crowding-out effects, and accelerating inter-regional supply chains and technological cooperation to release spillover effects. Key policy insights: It is recommended to scientifically determine a reasonable carbon price range and introduce institutions, individuals, and other trading entities to improve the liquidity of the carbon market and the effectiveness of carbon prices. Considering the high cost triggered by the complex processes of the steel industry in developing countries, its inclusion may inhibit green technology innovation; thus, it is necessary to be cautious about including the steel industry in the carbon market. To build a carbon market in developing countries, the order of industry inclusion must be determined based on scientific calculations of the costs of green technology innovation in the industry. Avoid using self-declaration for carbon quota allocation and focus on improving national basic innovation capabilities to ensure the supply of green technology innovation.

The impact of government subsidy on photovoltaic enterprises independent innovation based on the evolutionary game theory

Achieving a green, low-carbon economy necessitates clarifying the impacts of government photovoltaic (PV) subsidies on enterprise independent innovation in China. This study constructs a tripartite evolutionary game model among government, enterprises, and energy regulatory service centers (ERSC). It analyzes equilibriums' asymptotic stability and explores mechanisms affecting the system's evolution toward an ideal state. The results indicate that the strategic choices of the government, enterprises, and ERSC interplay with each other. Specifically, the primary influencing factors for enterprise innovation are costs, benefits, and penalties which promote innovation to an extent, while government subsidies have minimal effect. Under ERSC's policy guidance and services, enterprises controlling independent innovation costs given moderate punishment intensity enables system evolution toward sustainable innovation despite subsidy cancellation, achieving enterprises' ultimate carbon reduction goal in China. The originality in this study lies in the analysis of ERSC's influence on equilibrium, which models the impact of policies on enterprises, and ERSC plays an essential role in coordinating the government-enterprise information gap. Chinese government should strengthen regulatory system construction and increase financial support. This model can generate social benefits, reduce costs, and provide policymakers with an analytical framework and insights for policy formulation in China.

Automation and artificial intelligence in radiation therapy treatment planning.

Automation and artificial intelligence (AI) is already possible for many radiation therapy planning and treatment processes with the aim of improving workflows and increasing efficiency in radiation oncology departments. Currently, AI technology is advancing at an exponential rate, as are its applications in radiation oncology. This commentary highlights the way AI has begun to impact radiation therapy treatment planning and looks ahead to potential future developments in this space. Historically, radiation therapist's (RT's) role has evolved alongside the adoption of new technology. In Australia, RTs have key clinical roles in both planning and treatment delivery and have been integral in the implementation of automated solutions for both areas. They will need to continue to be informed, to adapt and to transform with AI technologies implemented into clinical practice in radiation oncology departments. RTs will play an important role in how AI-based automation is implemented into practice in Australia, ensuring its application can truly enable personalised and higher-quality treatment for patients. To inform and optimise utilisation of AI, research should not only focus on clinical outcomes but also AI's impact on professional roles, responsibilities and service delivery. Increased efficiencies in the radiation therapy workflow and workforce need to maintain safe improvements in practice and should not come at the cost of creativity, innovation, oversight and safety.

Technological innovation and the quality of environmental information disclosure: Evidence from a-share companies listed on China's Shanghai and Shenzhen stock exchanges

High costs of technological innovation and insufficient technological innovation capabilities may impede the ability of firms to communicate relevant environmental protection information to the public. This study aims to analyze the impact of technological innovation on the quality of environmental information disclosure conducted by firms. A non-balanced panel dataset comprising A-share listed companies in Shanghai and Shenzhen from 2007 to 2020 was subjected to ordinary least squares (OLS) regression analysis in the study. The model included year-fixed and industry-fixed effects to eliminate the influence of unobservable factors during the sample period. The results revealed a statistically significant positive relationship between the quality of environmental information disclosure by enterprises and the quantity and quality of technological innovation. The study's findings indicate that technological innovation offers a more sustainable path for the advancement of environmental information disclosure. By utilizing environmentally friendly and energy-saving technologies, the negative impact of the environment on technological innovation can be mitigated, leading to a more sustainable approach to environmental information disclosure. The practical implications of this study include fostering innovation to enhance disclosure quality, which benefits policymaking and industry practices. The understanding of the positive relationship between technological innovation and environmental information disclosure is enriched by the empirical evidence from this study, emphasizing its role in promoting sustainability and transparency.

Large size heat pumps advanced cost functions introducing the impact of design COP on capital costs

Power-to-heat technologies offer low-carbon heat and integrate electricity and heating sectors. Moreover, high-temperature heat pumps can supply process heat for industries, like food, and feed early district heating networks. However, their viability is often jeopardized by high capital costs. Fluid selection affects variable and capital (TCI) costs, impacting the Coefficient of Performance (COP) and equipment sizing. Therefore, identifying the best fluid and estimating capital costs with simple and reliable cost functions are crucial for assessing heat pump market opportunities. This paper presents a multi-objective optimization, based on a detailed technoeconomic model, to find the optimal heat pump solution for different applications. Moreover, the proposed Pareto analysis is employed to derive new cost functions considering the working fluid, source/supply temperatures, and the impact of design COP on TCI, with a formulation facilitating understanding and quantification of each factor. This methodology promotes heat pump adoption in industrial electrification, especially for high-temperature applications, potentially replacing natural gas boilers. Three case studies demonstrate the robustness of the approach to assessing capital costs, showing low deviation (<8%) between the detailed technoeconomic model and the fast-to-applicate new cost functions. The innovative cost functions ensure easy but accurate assessments, fostering confidence in transitioning to heat pump solutions.

Twin Green and Digital Innovation by SMEs in the Construction Sector

The Twin green and digital innovation is a fundamental element of the European SME Strategy and European Green Deal. While larger corporations have initiated a transition towards more sustainable and data-driven business, only a limited part of SMEs in Europe are actively investing in Twin innovation. Most SMEs presume elevated costs of Twin innovation and are unaware of the potential impact on their business performance. The study describes a usable generic framework to analyse the Twin innovation options, the impact on business performance and a roadmap for implementation by SMEs in the construction sector. The paper offers practical tools for SME owners and directors seeking to engage in Twin innovation. The findings are also relevant for other researchers in this field interested to gain a better understanding of twin innovation, as well as policy makers who seek to steer support programs towards innovation in SMEs.

Synergy between Electric Vehicle Manufacturers and Battery Recyclers through Technology and Innovation: A Game Theory Approach

Power battery recycling (PBR) has triggered profound changes in the industrial chain of electric vehicles (EVs). The PBR innovation network provides information channels and resource conditions for enterprises, but the mechanism of its impact on the synergistic innovation benefits and sustainable development ability of EV and PBR enterprises still needs further exploration. In this paper, we collect patent data for PBR from 2012 to 2020, identify the structural characteristics of innovation networks, and construct a synergy game model for PBR technology, aiming to analyze the synergistic effect of network embedding and knowledge spillover in PBR enterprises on technological innovation. First, we find that the PBR innovation network exhibits the small-world effect, which has a double-edged sword effect on technological cooperation innovation. Second, structural holes benefits of the main body of PBR technological innovation have a significant impact on cooperation innovation behavior. Third, the enhancement of the relevance and deep complementarity of knowledge cooperation is sufficient to make up for the input cost of PBR technological cooperation innovation, with additional benefits created by the increase in the output of structural holes. However, companies tend to be more inclined toward non-cooperative innovation as the knowledge spillover effect of the innovation network increases.