Innovative Cost Research Articles

Tools and Results of the Study of the Relationship between Production Dynamics and the Dynamics of Costs for Technological Innovation in the Russian Economy

Tools and Results of the Study of the Relationship between Production Dynamics and the Dynamics of Costs for Technological Innovation in the Russian Economy

Product upgrade and advanced quality disclosure in a supply chain

Retailers frequently preannounce the quality of upcoming products, highlighting the importance of information disclosure in supply chains. This study examines the interaction between advanced quality disclosure and product upgrades within a supply chain, where a supplier can release either upgraded products exclusively or alongside regular products in a subsequent period. Using a game-theoretical model, we investigate how the supplier’s upgrade decisions and the retailer’s disclosure strategy affect consumer behaviour, particularly strategic waiting and product cannibalisation. Our results show that when only upgraded products are offered, the retailer discloses quality in advance if the innovation level is high. When both regular and upgraded products are available, the retailer chooses advanced disclosure when the innovation level is either high or low. Even when the product improvement is minimal, advanced disclosure reduces cannibalisation and attracts more consumers to the upgraded products, thereby boosting the retailer’s profits. Additionally, the supplier may choose not to upgrade products when the innovation cost is moderate. These insights suggest that advanced disclosure can mitigate both cannibalisation and consumer waiting, particularly in high-tech industries or incremental innovation scenarios, such as electronics and smart home sectors, where the preannouncement of product information is crucial.

R&D Expenditures and Their Impact on Innovation in the Digital Era: A Kazakhstan Perspective

The article aims to assess the relationship between research and development costs and the level of innovation activity of enterprises in Kazakhstan. The research methodology involves correlation analysis, applying quantitative methods to analyze the collected data from official statistical yearbooks from 2007 to 2022. Correlation analysis with five variables on innovation activity and the impact of research and development costs on that, using Excel and Smart PLS 4 programs were used. According to the results of research, there was a positive impact of R&D expenditure on the level of innovation activity of enterprises mostly, secondly on the ratio of innovative product to gross domestic product, volume of innovative products (goods, services), and showing not so strong correlation on costs of product and process innovations. Digital hubs perform as an ecosystem with a network approach, including organizations in a region to undergo digital transformation in the era of the digital economy and digital technologies. The results of current research might be helpful to academicians and public administration. The originality of the study consists in assessing the impact of R&D expenditure on innovation management in a particular level of innovation activity, the share of innovative products about GDP, costs of product and process innovations, the volume of innovative products (goods, services) to a proper subsequent further contribution. As a result, it is recommended that policy measures focus on enhancing digital infrastructure and supporting R&D investments to ensure sustained innovation performance and economic development.

Challenges and Solutions in Scaling Operations Globally: A Guide for U.S. Food and BeverageExecutives

Abstract—This paper explores the challenges and solutions associated with scaling operations globally in the food and beverage sector from a U.S. executive’s perspective. It examines why expanding internationally makes sense for companies with successful domestic products, highlighting the advantages of U.S. innovation and lower costs of innovation compared to local markets abroad. The paper outlines a strategic roadmap for global expansion, including test markets, partnerships with local firms, and focusing on countries with positive sentiments toward U.S. food safety standards. A hypothetical case study illustrates the growth process, emphasizing the need for internal buy-in, patience, and a long-term view. Potential pitfalls and strategies for success are discussed, along with competitive analysis and the role of disruption in scaling products. Index Terms—Global Expansion, Food and Beverage Industry, Consumer Packaged Goods (CPG), International Operations, U.S. Innovation, Market Entry Strategy, Competitive Analysis, Disruption

Technology innovation to improve SMEs sustainability

Purpose This study aims to analyze the determinants of small and medium enterprise (SME) sustainability through online marketing technology innovation. Design/methodology/approach The study was conducted through a survey in Siak Regency and Dumai City, Riau Province, Indonesia. The study population is small entrepreneurs doing online marketing. The determination of this survey area is by considering: the use of online marketing technology in this area is relatively more developed than other regions; Siak Regency and Dumai City are very prospective to be used as small business development areas based on online marketing; and the sample was determined by purposive random sampling with the criteria of small entrepreneurs who have tried to do online marketing for at least six months. Based on these criteria, there are 301 small entrepreneurs who conduct online marketing as a sample. Findings The sustainability of SMEs is directly and indirectly influenced by government support, human resource quality, innovation costs, economic conditions and business partners through online marketing technology innovations. Online marketing strategy through targeting, segmentation and positioning marketing strategies. Implementation of online marketing technology innovation models: increased government support; improvement of human resources; provision of innovation cost allocation; government policies in maintaining economic stability; and increase in business partners. Research limitations/implications Limited access to data can limit the interpretation of correlations between the variables studied. This limitation is because the available data is limited to certain periods and certain geographical regions. In addition, research time constraints limit the ability to conduct more in-depth interviews and obtain additional data relevant to the topic being studied. Practical implications Practical implications: 1) Targeting marketing strategy is a staged strategy to select a target market. The target market for SME products is intermediary consumers (agents) and end consumers; 2) Segmenting marketing strategy is a stage strategy to determine market segments. The market segment of SME products is based on consumer characteristics, namely, the local market and markets outside the region. SME product market segments based on consumer response characteristics, namely, market segments based on product benefits and consumer loyalty; 3) Positioning marketing strategy is a strategy for the development stage of each product detail placement and the development of a 4P mix strategy, namely, product, price, place and promotion. Social implications The implementation of this research policy is: increased government support in facilitating online marketing; increased human resources in online marketing; provision of cost allocation of innovation in online marketing; government policy in maintaining economic stability; and increased business partners in online marketing. Model implementation requires mentoring and training through cooperation with business partners. Originality/value The sustainability of SMEs requires online marketing technology innovation. These findings can help provide an alternative solution to the weak resources of SMEs. With the discovery of the determining factor for the sustainability of SMEs, it can accelerate the SME digitalization program.

Connection of innovation activity effectiveness and technological novelty of innovation output

The paper studies the relationship between the innovation performance of Russian industrial enterprises and the degree of technological novelty of their innovative products. For this purpose, the innovation function is introduced. That function reflects the dependence of the “output” of the innovation process on its factors measured by the costs of process and product innovations. Hypotheses about the properties of this function are discussed. The relationship between the two types of innovation costs is considered. As an indicator of technological efficiency the ratio of the value of innovative products to the innovative resource costs is used. The dependence of the performance indicator on innovation costs is investigated. The points of local maxima (local technological optimum) of the performance indicator for the size classes of Russian industrial enterprises are found. It is shown that there is a relationship between the effectiveness of innovative activity and the degree of technological novelty of innovative products. As an indicator of the degree of technological novelty the share of the innovative products new to the market in all innovative products is used. It was established that there is a change in the trend of innovative production from the production of radical to incremental innovative products when approaching the technological optimum.

Structural failure analysis with CMS-based ground motion selection using innovative cost function and weight factors

Structural failure analysis with CMS-based ground motion selection using innovative cost function and weight factors

Intelligent machines as information and communication technology and their influence on sustainable marketing practices for beneficial impact on business performance: A conceptual framework

Intelligent machines are the machines or devices that make use of artificial intelligence and robotics technologies. It has the ability to accomplish a specific task in the presence of uncertainty and variability in its operating environment. Certainly, it can be used to support information and communication technology to streamline the creation, collection, processing, transmission, and storage of information for sustainable marketing practices. The flawless application of sustainable marketing practices results in beneficial impacts on business performance. In fact, the issue of unsustainable marketing practices can be effectively managed by intelligent machines. Therefore, this study is undertaken to uncover how intelligent machines can influence sustainable marketing practices for beneficial impacts on retailers’ business performance by proposing a unique conceptual framework. The theoretical contributions discuss two techno-sustainable marketing applications. First, intelligent machines improve incremental innovation. This allows retailers to balance technology risk with sustainable marketing and lower the cost of innovations. Second, intelligent machines increase business efficiency by automating sustainable marketing practices. This allows retailers to efficiently manage the inventory, improve fulfilment efficiency, and optimise stock levels. The managerial implications discuss two goals of sustainable marketing practices. First, it can attract sustainability-minded customers who support the retail business for their own well-being. Second, it builds a strong sustainable brand reputation that can lower the price sensitivity.

Optimal supply chain green innovation and subsidy strategy: producer subsidy versus consumer subsidy

PurposeConsidering two types of subsidies for producers (supplier and manufacturer) and one for consumers based on product greenness and sales quantity, this study aims to formulate optimal supply chain green innovation and subsidy strategies, and to achieve this goal with the support of information systems.Design/methodology/approachThis study introduces a composite green-product supply chain where suppliers focus on green innovation for component greenness and manufacturers focus on green innovation for manufacturing process greenness. Game theory modeling is applied to investigate the differences of product greenness, supply chain members’ profit and social welfare under different government subsidy strategies.FindingsIncreasing the unit greenness subsidy coefficient can boost product greenness and supply chain members’ profits, but does not always raise social welfare. When the government exclusively offers subsidies to producers, subsidies should be allocated to suppliers when there is a significant disparity in supply chain green innovation costs. Conversely, it is more beneficial to subsidize manufacturers. Consumer subsidies have the potential to enhance both environmental and economic performance in the supply chain compared with producer-exclusive subsidies, but may not always maximize social welfare when supply chain members have low unit costs associated with green innovation.Originality/valueThis study examines the optimal decisions for green supply chain innovation and government subsidy strategies. Supply chain members and the government can use the information system to collect and evaluate the cost of upstream and downstream green innovation, and then develop reasonable collaborative green innovation and subsidy strategies.

Research on retailer’s pricing and stocking strategy in two-stage green supply chain considering bounded rationality and non-green product

Due to the bounded rationality of decision-makers and the substitution effect of non-green products, retailers are not always profitable when selling green products. To assist retailers who may be disadvantaged in the game, this study constructs a two-stage green supply chain game model, considering the bounded rationality of decision-makers and the substitution effect of non-green products, and analyzes the impacts of two operational strategies that retailers can adopt—price-cutting strategy and early replenishment strategy. The research reveals that retailers tend to lower prices in the second stage when price reductions stimulate consumer purchases, enhancing their profitability. However, strategic retailers may raise prices in the first stage to create room for discounts later, potentially harming consumer interests. Contrary to expectations, anticipating future demand does not always improve supply chain profitability in the early replenishment strategy, which mainly depends on the market environment. Early replenishment deprives retailers of negotiation leverage in the second stage, and bulk orders may lead manufacturers to over-invest in green innovation. Therefore, this strategy is effective only when green innovation costs are low, consumer environmental awareness is high, or price sensitivity is low.

Green Technology Innovation Guiding Policies under the Synergy of Government and Financial Institutions

Guiding enterprises towards green technology innovation (GTI) is a pivotal strategy for mitigating pollution and energy wastage, thereby facilitating the transition towards a green and low-carbon economy. In order to solve the single irrationality of the existing guidance policy and improve its implementation effect, parameters of environmental regulation and green credit policy are hereby introduced to construct a tripartite evolutionary game model of the government, financial institutions, and enterprises. The evolutionary stability of the government and financial institutions in guiding enterprises' GTI is analyzed. Simulation analysis method is used to visualize the evolution path of the game system under different policy options. The study results show that increasing interest rate subsidies can promote the financial institutions and the government to formulate GTI guidance policies. Besides, there is a significant synergistic effect between interest rate subsidies and green credits, which can efficiently foster GTI within enterprises and decrease their innovation costs. Building on this foundation, further increasing the carbon tax rate can lead to a reduction in government subsidy expenditures, improve the evolution rate of the ideal strategy, and expedite the realization of a green, low-carbon transformation.

How does market competition affect enterprise cooperative innovation? The moderating role of intellectual property protection and government subsidies

Cooperative innovation is an effective strategy for enterprises to obtain innovation resources and reduce innovation costs. However, existing studies have paid less attention to why and when enterprises choose cooperative innovation strategies. Focusing on market competition as a salient feature of the task environment, this study explores the mechanisms through which it affects cooperative innovation. Using a sample of leading manufacturing enterprises in China between 2010 and 2018, we adopt a negative binomial model to test our hypotheses. The results show that market competition has a U-shaped relationship with cooperative innovation breadth and cooperative innovation depth. And the relationship between market competition and cooperative innovation is moderated by the institutional environment factors. Specifically, the main effect is negatively moderated by intellectual property protection. And government subsidies only have significant moderating effects on the relationship between market competition and cooperative innovation breadth, but no significant moderating effects on the relationship between market competition and cooperative innovation depth. Besides, revealing the aforementioned relationship, this study provides theoretical and practical implications on how to strike a balance between innovation resources acquisition from the external partners and the associated risks of cooperation.

Assessing The Impact of Rising Cost of Materials On Construction Activities in Enugu, Enugu State, Nigeria

This study focused on assessing the impact of rising cost of building materials on construction activities in Enugu, Enugu state, Nigeria. The aim of this study is to assess the impact of rising cost of materials on construction activities in Enugu, Nigeria in order to proffer a solution to the rise in the cost of these materials used in everyday construction in Enugu state. With the following objectives; to identify the factors that lead to increasing cost of material in Enugu State, Nigeria; to assess the impact of rising cost of materials on construction activities in Enugu; to proffer solutions to the rise in the cost of building materials. The research design employed was primary and secondary which encompasses descriptions and quantitative analysis on a randomly selected sample of receipt of building materials from the suppliers over the years. The population of the study is 223 professionals in the field and sample size of 143 which was gotten using Taro Yamane formula. The findings of the study reveals that the factors that lead to increasing cost on the building construction activities in Enugu State are; fluctuations in material costs, design changes and scope creep, regulatory compliance and permitting, project delays, weather and environmental factors, technology and innovation costs, interest rates and financing costs, and others. Finally, the study recommends that there will be need for relevant authorities in the building industry to re-examine and educate the people on its existence and equally generate the possible ways of reducing the increasing cost of building materials so as to enhance the building construction industry in Nigeria.

Contesting coercion: U.S.-China strategic competition, the middle technology trap, and Chinese government-guided funds

This study examines the possible emergence of a Middle Technology Trap (MTT) in U.S.-China strategic competition through the lens of the Global Financial Network (GFN) and the Global Innovation Network (GIN). By conducting doctrinal analysis, theoretically informed case studies, and in-depth interviews, we offer a granular study into how the U.S. has been weaponizing its leading position in the GFN to affect China’s level of participation in the GIN. Our findings reveal three U.S. tactics to induce the MTT with China: first, leveraging U.S. private equity and venture capital (PEVC) to enhance its technology advantage over China; second, pushing U.S. investors to withdraw from China’s PEVC market, thereby restricting Chinese access to American capital; and third, inducing Advanced Business Services (ABS) supporting innovation and global business to cease or reduce their operations in China, thereby increasing intermediation costs for innovation. Although Chinese government-guided funds (GGFs) have managed to partially mitigate the “funding gap” from the departure of American PEVCs, they have yet to assume the brokerage role previously played by American PEVCs in both the GIF and the GIN. As such, our study contributes to a better understanding and theoretical advancements of the MTT by linking up the scholarship of innovation and finance with financial statecraft.

Sources of Endogenous Economic Growth in 83 Russian Regions

According to the theory of endogenous growth, technologies play a key role in economic development. Digital technologies, as innovations that create new innovations, change economic activity and create new opportunities for economic growth. Digitalization helps to reduce specific economic costs, changes the nature of work. It also causes the substitution of labor with capital. The study is devoted to characterizing the features of regional development and evaluate digital predictors of economic growth. We used a sample of data from 83 regions in the period 2009-2019, excluding from the sample years 2020 and 2021 because of changes in economic dynamics under the influence of pandemic shocks. Econometric estimates are obtained using least squares and a feasible generalized least squares method based on unidirectional panel data models. A statistically significant influence of the number of university students, innovation costs on the growth rate of gross regional product per capita was found. The impact of the number of granted patents and the number of Internet users of the organization on the regional development was not confirmed. The results of the study emphasize the necessity of state science and innovation policy to reduce technological inequality, strengthen macroeconomic stability, high level of qualifications and technologies. The direction of further research can be the creation of indicator system measuring the quality of political and economic institutions.

Optimal supply chain performance: risk aversion to green innovation

PurposeAlthough many countries are focusing on the management of construction and demolition waste (CDW) resource utilization, the effect of risk aversion of the green innovation-led enterprise on the performance of the CDW resource utilization supply chain is unclear when considering different green innovation contexts (green innovation led by the building materials remanufacturer or by the construction waste recycler). This study aims to investigate how the level of risk aversion of the green innovation-led enterprise affects CDW resource utilization under different green innovation contexts based on contingency theory.Design/methodology/approachUsing Stackelberg game theory, this study establishes a decision model consisting of a building materials remanufacturer, construction waste recycler and CDW production unit and investigates how the level of risk aversion of the green innovation-led enterprise under different green innovation contexts influences the performance level of the supply chain.FindingsThe conclusions are as follows. (1) For the green innovation-led enterprise, the risk-averse behaviour is always detrimental to his own profits. (2) For the follower, the profits of the construction waste recycler are negatively correlated with the level of risk aversion of the green innovation-led enterprise in the case of a small green innovation investment coefficient. If the green innovation investment coefficient is high, the opposite result is obtained. (3) When the green innovation investment coefficient is low, the total supply chain profits decrease as the level of risk aversion of the green innovation-led enterprise increases. When the green innovation investment coefficient is high, total supply chain profit shows an inverted U-shaped trend with respect to the degree of risk aversion of the green innovation-led enterprise.Originality/value(1) This study is the first to construct a green innovation context led by different enterprises in the CDW resource utilization supply chain, which provides a new perspective on green management and operation. (2) This study is the first to explore the operation mechanism of the CDW resource utilization supply chain based on contingency theory, which provides new evidence from the CDW resource utilization supply chain to prove contingency theory. At the same time, this study examines the interactive effects of the green innovation cost coefficient and the degree of risk aversion of green innovation-led enterprises on the performance of supply chain members, expanding the contingency theory research on contingencies affecting enterprise performance. (3) This study will guide members of the CDW resource utilization supply chain to rationally face risks and achieve optimal supply chain performance.

Ефективність використання інноваційного потенціалу підприємств харчової промисловості

The work aims to assess the current state of innovative activity of food industry enterprises to determine its innovative potential and the effectiveness of its use in the conditions of a prolonged economic crisis. Data from the State Statistics Service of Ukraine for 2016-2020 were used since the selected number of enterprises was last updated in 2020 to achieve the goal. A study was conducted on the dynamic change in the share of innovatively active enterprises of the processing industry in the total number of enterprises, innovatively active enterprises of the food industry in the total number of enterprises, and innovatively active food enterprises in the total number of processing enterprises. The simultaneous allocation of positive changes in the value of fixed production assets, long-term biological assets, unfinished capital investments, long-term financial investments, and other non-current assets characterizes the value of non-current assets of food enterprises. An estimate of the innovation costs of food enterprises with positive shifts in the composition of R&D investments made by own forces, R&D made by other enterprises, and other innovation costs (excluding R&D) is provided. The number of innovative products (goods, services) sold by food enterprises was analyzed, with the selection of innovative products (goods, services) new for the market and innovative products (goods, services) new only for the enterprise. Changes in the number of employees involved in scientific research and development were assessed, with the specific weight of research staff (including researchers with doctorates and candidates of science degrees), technical staff and support staff allocated. The practical and analyzed steps of the management team indicate an increase in the efficiency of using the innovative potential of food industry enterprises, the result of which is an increase in innovatively active enterprises, an increase in investments in fixed and human capital, an increase in the costs of innovative research and the volume of innovative products produced and sold. Keywords: innovations, innovative potential, innovative costs, innovative products, food industry enterprises.

The Construction of Order for Social Organizations to Carry out Social Innovation: Evolutionary Logic, Operational Mechanism and Path Choice

Social innovation refers to the innovative phenomenon of bringing new solutions and development opportunities in the field of social development through changes in the way of thinking, technical means and management mode by means of social forces such as organizations, institutions and social groups. During the 30 years of reform and opening up, the innovation practices led by social organizations and the social networks they build have gradually become an important main body of social innovation in China. The article analyzes the course of change of the management system of social organizations from the perspective of historical institutionalism, places the social innovation led by social organizations in the three-dimensional analytical framework of “system-course-behavior”, and examines the logical evolution of the order of social innovation and the mechanism of social innovation along the trajectory of the interaction between the government and social organizations. Under the operating mechanism consisting of the institutional arrangement of the authoritative body, spontaneous exploration and dynamic strategic choice of social organizations, the benign interaction between the government and society can reduce the cost and risk of social innovation, reduce the loss of resources and vicious competition, and achieve the balance and stability of social innovation order.

Interaction of marketing and logistics activities of enterprises in the context of the challenges of the modern business environment of Ukraine

In the article, the directions of implementation of marketing and logistics activities in relation to increasing the control of the enterprise over the subjects and conditions of its external microenvironment were determined. Marketing was presented as a system of information interaction of the enterprise with the external environment, and logistics was presented as a system of establishing business relations with the external environment by constructing logistics chains. For both types of activity, the impact on the external microenvironment comes down to stimulating the desired behavior of subjects with whom the enterprise interacts with the help of informational, organizational and economic levers. The content of logistical support of the enterprise’s marketing activities based on the "7Ps" concept was detailed. It is shown that the support involves, among other things, the use of logistics services resources to perform specific marketing tasks. The content of marketing and logistics measures aimed at ensuring the sustainability of business in an unfavorable business environment in both cases is reduced to the formation of alternative options for resource provision of the corresponding type of activity, optimization of costs and diversification of goods/markets. The study was conducted of the dynamics of changes in the share of relevant types of economic activity in the total volume of products sold, the profitability of operational activities, assessment of changes in the business situation in the field of services, the volume of sold innovative products, costs for innovations. The results show the sufficient potential of the relevant components of the market infrastructure in terms of supporting domestic business entities, and indirectly indicate the sufficient potential of marketing and logistics activities of Ukrainian enterprises in terms of ensuring economic activity in the conditions of an unfavorable business environment.

Optimal strategies for innovation and market allocation in joint production

Capacity sharing is an important way for relevant enterprises to save production materials. This paper constructs a capacity sharing decision-making model that considers market competition intensity, and introduces the independent market size of participating entities into the model design. This paper explores the impact mechanism of factors such as market competition intensity, independent market size of participating entities, and innovation cost coefficient on system decision-making. Research has found that the increase in independent market size has a consistent impact on the innovation and pricing decisions of enterprises sharing production capacity. Although the increase in independent market size enhances the sharing ability of production line innovation costs, it may not necessarily alleviate the problem of excessive competition among participating entities in overlapping markets. It is also necessary to specifically consider the impact of market competition intensity. The specific research conclusions provide decision-making basis for enterprises to participate in the process of capacity sharing, and also provide theoretical basis for relevant government departments to intervene in the process of capacity sharing.