Innovation Dynamics Research Articles

INNOVATING URBAN CHINA: The Rise of the Local Venture State and the Making of New Entrepreneurial Spaces

AbstractIn this article we centralize the analytic of the local venture state (LVS) to offer a novel framework for investigating China's new urban entrepreneurialism, which emerged after the 2008 global financial crisis. As a spatiotemporally specific response to the crisis, the LVS goes beyond GDP‐driven developmentalism, seeking to simultaneously promote economic development, indigenous innovation and social equity using a variety of financialized policy instruments. Ethnographic case studies of new entrepreneurial spaces in Beijing's Zhongguancun area situate the LVS at the interface between Zhongguancun's urban space and China's innovation system. They reveal the rationalities behind the rise of the LVS and discrepancies among policy intentions, the implementation thereof and actual local results. Underlying the mixed results of the LVS, we argue, is the complicated power dynamics within the LVS and a fundamental contradiction between the dynamics of technological innovation and those of wealth redistribution. In our examination of China's LVS vis‐à‐vis global struggles to tackle the protracted economic crisis and achieve a more socially inclusive model of urban development, we stress the need to theorize urban entrepreneurialism from the global East with the aim of enriching the literature of urban China and of variegated urban entrepreneurialism.

Harnessing Collaborative Innovation: How Knowledge Sharing Drives Performance in Philippine Hardware MSMEs

The study examines the mediating effect of knowledge sharing on the relationship between collaborative innovation capabilities and innovation performance within hardware companies in the Philippines. It seeks to fill the gap in local research by exploring how collaborative efforts and knowledge-sharing practices influence the innovation outcomes of micro, small, and medium enterprises (MSMEs) in the hardware sector. A quantitative approach was employed, surveying operational managers from 80 hardware companies in Metro Manila. The study used Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the relationships between collaborative innovation capabilities, knowledge sharing, and innovation performance. The study found that collaborative innovation capabilities have a significant positive effect on innovation performance. Additionally, knowledge sharing acts as an important mediator, enhancing the effectiveness of collaborative efforts in driving innovation outcomes. This study provides valuable insights into the hardware industry in the Philippines, where there is a lack of local research on the dynamics of collaboration, knowledge sharing, and innovation. It offers practical implications for hardware MSMEs, highlighting the importance of fostering collaboration and implementing effective knowledge-sharing systems to drive innovation and maintain competitiveness in a fast-paced market.

Unveiling the Nexus: Foreign Ownership, Innovation Dynamics, and Firm Performance through a Resource-Based Lens in Vietnam

This study investigates the complex relationships between firm resources, innovation, foreign ownership, and firm performance in the context of Vietnam's emerging market. Using a comprehensive dataset of 17,430 firm-year observations from 1,245 manufacturing firms across Vietnam for the period 2010 to 2023, we employ system GMM estimation to address potential endogeneity concerns. Our findings reveal non-linear effects of firm resources and foreign ownership on performance, measured by both ROA and Tobin's Q. Specifically, we observe inverted U-shape relationships for human capital and foreign ownership, diminishing returns for physical capital, and a positive squared term for R&D intensity. Moreover, we find that foreign ownership positively moderates the effects of firm resources on performance. These results are robust to alternative measures and subgroup analyses. Our study contributes to the literature by providing a nuanced understanding of firm performance drivers in Vietnam's unique institutional context, extending the applicability of resource-based and knowledge-based views to this emerging market. The findings offer valuable insights for managers and policymakers in Vietnam, highlighting the importance of balanced resource allocation, strategic innovation investments, and the potential benefits of foreign ownership in enhancing firm performance.

Data analytics-driven innovation: UTAUT model perspectives for advancing healthcare social work

In today’s dynamic and increasingly complex healthcare landscape, leveraging data analytics in decision-making processes has become indispensable for fostering innovation and enabling more effective, data-driven approaches to healthcare delivery. This study explores the factors influencing the adoption of data analytics techniques in healthcare social work practice. It is guided by the Unified Theory of Acceptance and Use of Technology (UTAUT) model and is aligned with key principles of open innovation dynamics. The analysis, conducted through binary logistic regression, revealed that facilitating conditions, effort expectancy, and self-efficacy are the most influential predictors of healthcare social workers’ intention to adopt data analytics. This underscores the critical role of organizational support, perceived ease of use, and individual confidence in fostering the adoption of innovative data-driven practices within healthcare social work. The results also indicate that social influence has a limited impact on shaping adoption decisions. The study’s findings have significant practical implications for healthcare decision-makers, social workers, and other stakeholders aiming to advance service delivery and improve patient outcomes through innovative data-driven solutions.

From local markets to global legitimacy: A materialization perspective on technological innovation system's dynamics

The Technological Innovation Systems (TIS) literature has made considerable strides in exploring the spatial aspect of technological innovation dynamics over the past decade. Abandoning the purely national focus on TISs, scholars have theorized TIS dynamics simultaneously along multiple geographical scales, such as regional, national, and global. Yet, the conceptual and empirical insights on the local scale of TISs have been limited. This paper elaborates a local spatial perspective on TISs and elucidates how the local scale interacts with broader scales through structural couplings. We use technological materialization to define the local scale and illustrate our perspective with a case study on a local biorefining TIS evolution in France. Using event-history analysis, we explore how the local scale evolved through functional interactions both within and across the local and broader scales. The results reveal shifting configurations of TIS functions and their interactions at various scales in different periods: while the local scale was characterized by materialization of biorefining technology and local market formation, broader scales played more versatile roles by providing resources to, forming end markets for, and establishing the legitimacy of the local scale. Policy should promote biorefinery-internal markets through technological materialization and disseminate local success stories at broader scales.

Robo-advisory financial services and the dynamics of new innovation in Saudi Arabia

Many individuals seek guidance from experts to obtain financial services. Robo-Advisors (RAs) have recently replaced human financial advisors due to concerns about high professional fees, behavioural bias, conflicts of interest, etc. From this study, we wanted to know the adoption intentions and various determinants impacting RAs in the Kingdom of Saudi Arabia (KSA). Partial Least Squares Structural Equation Modelling (PLS-SEM) is employed to examine the data with a sample size of 1361 respondents from the KSA to determine the adoption factors for RAs. The study revealed that usefulness, perceived benefits, and policy interventions positively affect the adoption of RAs in KSA. The current research provides a comprehensive behavioural framework to understand RA's adoption by Saudi Arabian investors while also including the dimension of policy initiative by the governing authority.

Rethinking the trade-off relationship between innovation quantity and quality: the evidence from public energy R&D programs in South Korea

This study examines the relationship between quantitative and qualitative aspect of innovation in South Korea’s public energy research and development programs. Through an analysis of 1170 projects, the study confirms a complementary association between the quantity and quality of patents. The findings underscore the importance of a strategic approach to managing innovation, challenging the notion of a trade-off and advocating balance. It also discusses how this relationship varies across technological fields. This emphasizes the need to consider moderating variables in future research on this domain. This study thus not only contributes theoretically by expanding the discourse on innovation dynamics but also offers practical insights for policymakers and industry practitioners.

An open innovative inventory management based demand forecasting approach for the steel industry

This research focuses on accurately forecasting steel wire mesh demand to ensure timely order fulfillment. Various univariate time series forecasting methods were employed, including Prophet, Support Vector Regression (SVR), 1-Dimensional Convolutional Neural Network (1D-CNN), Recurrent Neural Network (RNN), Gated Recurrent Unit (GRU), and Long Short-Term Memory (LSTM). These RNN-based models were implemented to enhance the dynamics of open innovation. The study also employed the split test method to assess the impact of data size on model performance. Following a comprehensive comparative analysis, LSTM outperformed other models at 80:20 data split ratio, achieving the lowest RMSE of 51,473 and MAPE of 1.43. The robust performance of LSTM underscores its ability to expertly predict complex demand patterns. Moreover, forecast accuracy was enhanced using ensemble models, with RNN-LSTM delivering the best results (RMSE of 45,931 and MAPE of 1.20) at the same data split ratio. This accurate forecasting supports steel wire mesh companies in making informed decisions regarding inventory management. The study additionally demonstrated the integration of forecasting results into inventory strategies to improve decision-making for cost optimization.

Financial incentive instruments of regional economy’ «green» transformation

Transformation and development of the economy towards greening is an important measure for different regions to address the global challenges of climate change and rising pollution levels, and a necessary pathway to achieve sustainable development. Whether it is modernization and transformation of green technologies in traditional industries or green management of the public environment, external financial support is needed to compensate for the insufficient investment of micro-economic actors. The purpose of the study is to analyze the key financial instruments that stimulate the green transformation of the regional economy, as well as an attempt to determine the directions of using these instruments to increase the effective supply of green funds and ensure their increasing role in promoting economic transformation on the path of building an ecological civilization. The methodological basis of the study was formed by analytical and comparative methods, as well as relevant works of scientists devoted to the study of the problems of stimulating environmentally-oriented transformation processes, primarily in the regional context. The results of the analysis show that, given the important supporting role of finance in the green transformation of the economy and the fact that the relevant research is still at the initial stage, the systemic mechanism of financial stimulation of the regional economy’ green transformation should be based on three elements: financial support, capital allocation and risk diversification. It is demonstrated that the development of green economy cannot be separated from the increasing innovation dynamics of "green" financial products, so it is necessary to increase efforts in the field of development and implementation of financial innovations, to provide priority financial support to key sectors of the green economy.

How does venture capital play a role in corporate green innovation? Evidence from China

This research underscores the critical role of green innovation in advancing corporate sustainability and green transformation. Analyzing 9048 panel data points from China between 2010 and 2021, we applied a series of fixed effect models to assess how venture capital (VC) influences corporate green innovation. The study examined the effect of VC on two key business aspects: the costs of debt financing and the propensity for corporate risk-taking. The findings confirm that venture capital is essential in promoting corporate green innovation by lowering debt-related financial burdens and diminishing firms' inclination to take risks. Additionally, our heterogeneity analysis indicates that venture capital's impact is more pronounced within eastern China and among state-owned enterprises, suggesting regional and ownership-based variations in green innovation dynamics.

Analysis of the functional dynamics of innovation for inclusive development systems: An event history analysis of the Nigerian growth enhancement support scheme

Several studies have explored and examined the performance of technological innovation systems by assessing the functional dynamics. However, few studies have examined this in the context of innovation for inclusive development systems (I4IDS). This paper, therefore, aims to contribute to the conceptual and methodological basis of the functional dynamics of I4IDS by analysing Nigeria's Growth Enhancement Support (GES) Scheme. This paper seeks answers to the following questions: How can the functions of innovation systems be used to analyse the dynamics of I4IDS? What inducement and blocking mechanisms determine the evolution of I4IDS? and Which motors of innovation can be identified within the domain of I4IDS? This article uses a qualitative and empirical approach, the event history analysis, to explore how the GES Scheme's structural and functional components interact within the innovation system framework. By using events as the unit of analysis, we identify and map the functions, analyse the interactions, and build a narrative that examines over time, the functional dynamics of I4IDS. Through this, it becomes practicable to assess the different forms of cumulative causation and how these influence the build-up or breakdown of I4IDS, as well as identify the dominant forms of cumulative causation (motors) in each episode. As a contribution to knowledge, the trend pattern is depicted by the giver-receiver-participate framework while the typology of motors of innovation literature is expanded to a new motor relevant to the I4IDS context: demand-pull motor. We believe that the use of motors of innovation in the I4IDS context will contribute to the theoretical underpinnings of the emerging literature on the systemic evaluation of innovation systems.

A fuzzy multi-criteria decision-making for optimizing supply chain aggregate production planning based on cost reduction and risk mitigation

In an increasingly complex and uncertain business environment, decision makers require robust strategies for supply chain aggregate production planning that account for the interdependencies and coordination across multiple echelons of the supply chain network. Traditional approaches often inadequately address the uncertainties and risks inherent in supply chain operations, leading to suboptimal performance and increased costs. This study introduces a business model incorporating open innovation dynamics to achieve cost-effectiveness and resilient supply chain performance in the face of uncertainties. A Multi-Objective Fuzzy Linear Programming model was proposed by integrating the Chance-Constraint Programming and Zimmermann’s approach designed to assist decision makers in optimizing the production plan, material flows and resource allocation across the entire supply chain network. The model focuses on both cost and risk minimization based on unsymmetrical triangular fuzzy numbers. Specifically, it targets the downside risk of uncertainty, aiming to reduce the likelihood of negative outcomes or financial losses due to fluctuations, unpredictability, and unforeseen circumstances, which can drive-up supply chain operation costs. The efficacy of the model is demonstrated through a case study. It highlights various imprecise factors such as costs, customer demands, and machine operating hours. The findings underscore the model's capability to provide decision makers with a comprehensive supply chain aggregate production plan that not only optimizes the supply chain network and enhances operational efficiency and reliability but also significantly reduces costs and mitigates unsymmetrical skewness of risks associated with operational uncertainties.

Innovation in libraries: A service-oriented perspective

This article is devoted to the question of innovation in libraries. Ignored by ‘service studies’, this question occupies an important place in library and information science, but is all too often approached in a way that is factual and descriptive. Drawing on advances in service economics and management, this article adopts a perspective of the library as an ‘architectural’ or ‘assembled’ service bringing together a number of core and peripheral services, and mobilizing competences and different types of technology to collaboratively generate, utilities for the user or community. We discuss how such a representation of the product can systematically account for the full complexity of the forms and dynamics of innovation in libraries. We have thus identified and empirically illustrated three general innovation logics (horizontal, vertical and diagonal), which differ according to the components of the library service on which they act, and which operate according to different modalities, reflecting different innovation trajectories.

How position in the network determines the fate of lexical innovations on Twitter

This study analyzes the diffusion of lexical innovations on Twitter to understand how the social network position of adopters impacts their success. Looking at both successful and failed neologisms, we categorize them into "changes" which become established and "buzzes" which decline over time. Using a corpus of 650 million French tweets, we reconstruct user networks and characterize adopters of innovations during different diffusion phases based on prestige, centrality, clustering, and external ties. In the early innovation phase, change and buzz adopters have similar peripheral profiles. During propagation, changes spread to prestigious, central individuals while buzzes do not, which predicts their eventual success or failure. By the establishment phase, changes reach highly central users with closer external ties. The results align with sociolinguistic theories about weak ties for innovation and strong ties for establishment. Additionally, logistic regression models based on early adopter profiles can predict the fate of innovations. This work sheds light on the diffusion dynamics of online lexical innovations and the crucial role of user network factors.

Interdependencies in industry 4.0 maturity: Fuzzy MCDA analysis for open innovation in developing countries

The emergence of Industry 4.0 (I4.0) is reshaping industries worldwide, driven by rapid technological progress and the need for open innovation. This study focuses on understanding the interdependencies of driving factors of I4.0 maturity in developing countries using Fuzzy Multi-Criteria Decision Analysis (MCDA) methods. By analyzing Indonesia, Pakistan, and Venezuela, the research aims to foster open innovation and address the unique challenges these nations face in adopting I4.0 technologies. I4.0 maturity models are essential for evaluating current maturity levels and identifying areas for improvement. However, the complexity and interdependence of various factors—ranging from data science and technology to policy, governance, and open innovation dynamics, such as social open innovation and the role of SMEs—complicate this process. This study employs Fuzzy TOPSIS and Fuzzy DEMATEL to identify the critical factors influencing I4.0 maturity and analyze their interdependencies and prioritization. The results indicate that 'Data and Information' and 'Willingness to Change' are crucial across all countries, while strategic differences between large enterprises and SMEs highlight the need for tailored approaches. This research highlights the importance of continuous IT investment, digital leadership, collaborative ecosystems, and agile strategies in fostering open innovation and driving I4.0 adoption. This research contributes to the theoretical and practical understanding of I4.0 maturity, offering valuable insights for practitioners and academics to explore the dynamic interactions of I4.0 factors and their impact on operational efficiency.

Technological Paradigms in Education: Unveiling the Dynamics of Innovation in Pedagogical Practices

This paper employs a genealogical approach to examine the interplay between technology and educational practices, tracing the evolution of teaching and learning methods. The study begins with an examination of historical educational practices that preceded technological advancements. It highlights the centrality of oral traditions, memorization, and the preservation of intangible cultural heritage. The discussion then turns to contemporary educational settings, arguing that the integration of technology should be guided by a process of thoughtful consideration rather than being driven by mere trends.

Roles of organizational flexibility and organizational support on service innovation via organizational learning – A moderated mediation model

The study aims to determine if organizational flexibility and support generate innovation in IT solutions, providing firms with enhanced competitiveness. It also explores the mediating role of organizational learning in its flexibility and innovation dynamics and the moderating influence of employees' perceived organizational support on its flexibility and learning. The paper argues that the inimitable internal resources of flexibility, learning capabilities, and a supportive climate can help service-oriented firms innovate to enhance their competitive advantage. A quantitative approach was adopted to conduct a cross-sectional survey of 1350 IT solution-providing companies concentrating on Software Export zones based in India. The structural equation modeling technique was adopted to test the validity and reliability of the measurement models, followed by the proposed direct, mediating, and moderating relationships among organizational flexibility, learning, support, and service innovation. The findings illuminate the significant positive influence of firm-level resources of organizational flexibility on learning, leading to amplified innovation in its services. Additionally, perceived support from the organization's side towards the employees mitigates the positive relationship between organizational flexibility and organizational learning, indicating a negative association. This study also highlighted the untested influence of organizational support as a mitigator of learning in flexible organizations.

Exploring the Dynamics of CO2 Emissions, FDI, and Technological Innovation on Economic Growth: Evidence from BRICS Nations by Using CS-ARDL

Exploring the Dynamics of CO2 Emissions, FDI, and Technological Innovation on Economic Growth: Evidence from BRICS Nations by Using CS-ARDL

Unpacking the dynamics of workplace innovation among nurses: The synergistic relationship between psychological ownership and high-performance work systems

ABSTRACT The study investigated the influence of high-performance work systems on the relationship between psychological ownership and workplace innovation among nurses in the health sector of Ghana. A sample of 327 nurses was selected using convenience sampling technique. The data obtained from self-reported questionnaires were evaluated using partial least squares structural equation modelling. The results indicate that psychological ownership and high-performance work systems positively influence workplace innovation, and high-performance work systems enhance the nexus between psychological ownership and workplace innovation. The findings suggest that the management of health care entities should focus on creating a workplace culture that cultivates psychological ownership among employees and implements high-performance work systems to foster workplace innovation.

XAI in geographic analysis of innovation: Evaluating proximity factors in the innovation networks of Chinese technology companies through web-based data

This research explores the nonlinear interactions among multidimensional proximities, including geographical, cognitive, organizational, institutional, social, and technological aspects, and their impact on innovation within networks of over three million technology firms in China. Utilizing an innovative combination of web-based hyperlink and textual data analysis, supplemented by patent information, we delve into how these proximity dimensions influence corporate innovation capabilities. Our methodology integrates text-based deep learning techniques and employs the XGBoost model along with the SHapley Additive exPlanations (SHAP) algorithm and partial dependence plots to uncover the nuanced effects of proximity on innovation. The findings reveal that while geographical distance often correlates with larger cognitive and organizational proximities, underdeveloped regions exhibit stronger technological, institutional, and social proximities compared to their developed counterparts. The study further identifies social structure and technological differences as pivotal factors impacting collaborative innovation, with both positive and negative effects fluctuating alongside changes in proximity dimensions. Notably, we uncover that geographical proximity has a pronounced boundary effect on innovation, highlighting the critical role of spatial considerations in the digital age of innovation networks. This research contributes to the understanding of urban innovation dynamics and offers valuable insights for policymakers and urban planners aiming to foster innovation ecosystems.