Government Innovation Policy Research Articles

SOVREMENNAYa INNOVATsIONNAYa POLITIKA, ORIENTIROVANNAYa NA MISSII (primer Germanii)

New trends in global economic development, such as the processes of transnationalisation, economic and energy crises, gaps in foreign trade and logistics chains, challenges of modern technological development, intensify the competition of companies in world markets. The governments of the developed countries and large multinational corporations are actively engaged in radical transformation of the modern social and economic world development model on the basis of the 2030 Agenda for Sustainable Development. Germany is at the forefront of this global agenda. According to the German government, the development and introduction of transformative innovations is one of the tools that brings the world closer to sustainable development model. Such innovations do not only lead to technical progress, but also solve important social problems. To force through rapid modernisation German government has chosen a time-tested method – mission-oriented innovation policy (MOIP). State becomes the leading actor of the national innovation system, setting the goals of technological development and mobilising economic resources required to achieve these goals. For the first time, the missions of innovation policy were formalised in government documents in 2018. In early 2023 the new German government updated the drafting and composition of the missions. This article discusses the theoretical foundations of the MOIP approach to the formation of government innovation policy, describes the missions of the innovation policy of Germany, approved in 2018 and 2023, and examines the practical results of the implementation of some missions in 2018‒2022 on the example of renewable energy technologies introduction, building up battery cell production in Germany, developing clean mobility, putting German indigenous artificial intelligence technologies into practical application, digital healthcare, creating sustainable circular economies.

The impact of foreign direct investment on innovation in China's forest products industry

The forestry industry, with its high resource dependence, long production cycles, and extensive development modes, lags behind other industries in terms of innovation. This study examines the impact of foreign direct investment (FDI) on product innovation in China's forest products industry. We use data from 146,526 forest products enterprises spanning the years 1998 to 2013, merged with patent application records from the China National Patent Database, and employ a two-way fixed effects model. Our estimates show that a 10 % increase in FDI is associated with a 0.86 % increase in patent applications, a smaller effect than in other industries. In particular, we examine how this positive effect of FDI on innovation is affected by the specific production and layout features of the forest products industry. We find that this effect is greater in regions rich in forest resources and non-coastal areas. Additionally, enterprises in this industry often focus on strategic innovations, such as product design, rather than substantial technological change, with innovation priorities differing across sub-sectors. Mechanism analyses reveal that FDI promotes innovation in forest products enterprises by increasing R&D investments, optimizing the marketing environment, and alleviating financial constraints. Extended analyses indicate significant spillover effects of FDI-driven innovation across the industry, especially between the upstream and downstream segments of the supply chain. We advise the global forest products industry to consider these unique production and layout features in their development strategies, and suggest a reorientation of government innovation policies toward long-term goals.

Investigating the Impact of Innovation Policies and Innovation Environment on Regional Innovation Capacity in China

Regional technological innovation serves as a key pillar for achieving high-level self-reliance and self-strengthening, a fundamental requirement for promoting balanced regional development, and a vital aspect of implementing the innovation-driven development strategy. We examine the impact of innovation policies on corporate innovation activities and the importance of the innovation environment in enhancing innovation capacity. By analyzing the implementation of innovation policies in three provinces in Central China from 2018 to 2022, this study introduces two indicators—policy intensity and policy volume—to assess the level of government policy support. The findings are as follows: First, local government innovation policies exert a significant positive impact on corporate innovation activities, with particularly strong effects observed in the implementation of R&D subsidies. Second, the implementation of regional innovation policies enhances regional innovation capacity by promoting increased R&D investment by firms. Third, the innovation environment moderates the influence of regional innovation policies on corporate R&D investment, amplifying the effect of R&D investment on regional innovation capacity. In summary, when formulating innovation policies, governments should consider the unique needs of different industries, regions, and enterprises, adopting flexible and diverse policy measures to optimize the innovation environment and accelerate the nation’s technological innovation development.

A novel integrated approach for quantifying the convergence of disruptive technologies from science to technology

With rapid developments in science and technology, knowledge transfer from science to technology and technology convergence from different fields are accelerating. Technology convergence has become a main source of disruptive technologies (DTs). To facilitate enterprise R&D strategic decision-making and government innovation policies formulation, it is necessary to quantify the convergence processes of DTs and understand the DTs' emergence characteristics from science to technology. Existing research on technology convergence measurement mainly used patent citation information, patent co-classification analysis, and text mining. However, since these studies have limited analysis of the sources and causes of technology convergence from the perspective of knowledge memes, resulting in insufficient revelation of the processes and characteristics of DTs' emergence. Knowledge meme theory helps to reveal the relationships between knowledge diffusion, knowledge convergence, and technology convergence. Therefore, in this paper, we proposed a research framework for quantifying the convergence of DTs from science to technology. In this framework, we analyzed the knowledge diffusion and technology convergence of DTs from science to technology based on knowledge meme theory. We also integrated patent citation analysis, text mining, and cascade network models to quantitatively measure knowledge diffusion and technology convergence characteristics. We tried to understand the generation mechanisms of DTs from the perspective of technology convergence. We took smartphones as a case study to verify the framework's validity and flexibility. This paper provides a novel approach for quantifying the convergence of DTs from science to technology, which can help us to understand the emergence and development trends of DTs. This paper will also be of interest to smartphone technology R&D experts.

R&D subsidies, tax reductions and innovation outsourcing of enterprises

As an important part of the innovation behavior of enterprises, innovation outsourcing is characterized by high technology, high threshold, and industry–university–research integration. Its status in the process of China's scientific and technological development has been continuously improved and it has received increasing attention and support through the government's innovation policies. This paper systematically tests the impact of research and development (R&D) subsidies and tax reductions on enterprises' innovation outsourcing. The results show that R&D subsidies and tax reductions can significantly increase enterprises' total amount and share of innovation outsourcing investment. An internal mechanism test shows that R&D subsidies can promote enterprises' innovation outsourcing by improving the adequacy of R&D funds and the quality of R&D staff. In addition, compared to the eastern region and non-state-owned enterprises, government subsidies have a more significant driving effect on innovation outsourcing in the central and western regions and for state-owned enterprises. The conclusions drawn in this paper provide an important empirical basis and policy reference for Chinese enterprises' internal and external innovation behaviors in the context of government innovation policies.

Evaluating social governance innovation policy in China: A study based on fuzzy set qualitative comparative analysis

Social governance is an important aspect of national governance. Strengthening and innovating social governance is an important task to promote social construction, and the necessary policy support is an important means to achieve governance innovation. Based on the policy texts of 31 urban districts (including 22 provincial capitals, 4 municipalities directly under the Central Government and 5 capitals of autonomous regions), the innovation policy of social governance is divided into five dimensions: organizational mobilization policy, public service policy, social regulatory policy, community constructive policy and data informative policy. Using the fs-QCA method, the path of social governance innovation policy on governance performance is discussed. The study finds that the supply mode of two innovative policy combinations have a significant effect on the improvement of social governance performance: One is organizational mobilization policy, public service policy and community constructive policy, and the other is organizational mobilization policy, social regulatory policy and data informative policy.

Local Government Collaborative Innovation Policy

The lack of stakeholder collaboration is considered one of the main triggers for unsustainable regional innovation. This phenomenon often occurs in archipelago countries due to limited access to information in the region. In this context, the current discourse between public administration scholars and policy practitioners emphasizes the importance of collaboration in policy innovation. This study aims to examine local government innovation policies in Indonesia, an archipelago country in Southeast Asia, with a focus on the policy formulation process which involves collaboration to produce innovative policies. This study uses a mixed methods research approach based on a sequential explanatory design consisting of two main stages. The first stage uses a quantitative method, followed by the second stage which uses a qualitative approach. The research data consisted of a combination of primary and secondary data obtained from questionnaires and semi-structured interviews. This data was analysed descriptively using NVivo software and supplemented with statistical analysis results. The results of this study confirm the existence of a pattern of dependence between collaborative actors, in which regional heads have a dominant role in the formulation of innovative policies. However, business actors, academics, and community leaders are rarely involved, indicating that they are highly dependent on regional leadership initiatives. As a result, the resulting innovation policies tend to be unsustainable. Therefore, this research suggests that collaboration forums become the main reference in building and creating sustainable regional innovations. This forum is expected to facilitate common aspirations and innovative arguments, as well as encourage the creation of broader innovative policies. In conclusion, the lack of stakeholder collaboration is one of the main obstacles to creating sustainable policy innovations in the regions. To overcome this challenge, collaboration forums are important to facilitate collaboration and active participation of various stakeholders. With stronger collaboration, it is hoped that sustainable innovative policies will be created, addressing regional problems, and improving people's quality of life.

The effects of Demand-side policy on firm innovation: The Mediating role of R&D activities

Today, innovation is seen as the engine of economic growth. As a result, governments foster innovation activities in both the public and private sectors by using policy tools such as measures, regulations, and incentives. There are two main approaches in government innovation policy: supply-side policy and demand-side policy. Supply-side policy instruments primarily stimulate technological development and diffuse innovation capabilities. On the other hand, demand-side policy supports specific demand and minimizes technological and trade uncertainty at all stages of production. Moreover, a demand-driven procurement policy is one of the main drivers of high-tech industries. At the same time, in line with the growing importance of the knowledge economy and societal concepts, knowledge or technology has become the major determinant of innovation. In this way, companies are encouraged to undertake research and development activities in order to create innovation and advance their technologies. Moreover, the government’s support for investing in research and development (R&D) activities has become an effective solution for the firm’s innovation outputs. These R&D activities are of particular importance in transition and catch-up economies such as the Czech Republic. Therefore, this article aims to analyze the impact of demand-driven policy on business innovation through R&D activities in the Czech Republic. Data from the Community Innovation Survey and partial least squares structural equation modelling are used to achieve the purpose of this article. Our findings show that demand-driven policy (procurement for innovation) significantly and positively affects firm product and process innovation through R&D activities. The findings of our research also have practical implications for firms and policymakers in the Czech Republic. These results could also apply to Central and Eastern Europe, where we can observe similar characteristics of firms, for instance, because of their innovation performance.

Symbolic or substantial? Different responses of state-owned and privately owned firms to government innovation policies

What influences a firm's response to government innovation policies? This study draws upon the institutional logic perspective to propose that China's state-owned enterprises, guided by state logic, are more likely to make a substantial response to such policies—a response that takes the form of the increased volume of invention patent applications, a steady grant rate, and market-related expenses. In contrast, private firms, guided by market logic, are more likely to make a symbolic response in terms of the increased volume of invention patent applications, a reduced grant rate, and increased market-related expenses and revenues. Results from our study, which uses a quasi-experimental approach based on an exogenous government innovation policy and data on publicly listed Chinese companies, support our arguments. These findings deepen the scholars' understanding of the effects of policy on state-owned and private firms.

Entrepreneurship and innovation efficiency: the moderating role of absorptive capacity

PurposeThis study aims to investigate the relationship between entrepreneurship and innovation efficiency (IE), as well as the moderating role of absorptive capacity.Design/methodology/approachThis study uses a sample of industrial enterprises from Chinese provinces from 2005 to 2016, and it tests the research questions using the method of stochastic frontier analysis.FindingsThe results of this study indicate that entrepreneurship promotes IE, and that absorptive capacity plays a positive moderating role. In addition, the effect of entrepreneurship on IE differs between the central and eastern regions and the western region.Originality/valueThis research provides direct policy implications by demonstrating the role of entrepreneurship and absorptive capacity in IE, thereby guiding corporate management practices and the formulation of government innovation and entrepreneurship policies.

MODELING INNOVATIVE DEVELOPMENT OF INTEGRATED BUSINESS STRUCTURES THROUGH OPEN INNOVATIONS

This paper seeks to explore the process of innovative development modeling for integrated business structures using an open innovation platform, both at the microlevel (the investment attractiveness of small and medium-sized businesses is viewed from the perspective of a systemic approach), and at the mesolevel (the investment attractiveness of small and medium-sized businesses relies upon a comprehensive assessment of infrastructure development based on the unity and interaction of criteria for business investment attractiveness across the region). It is argued that despite certain crisis phenomena encountered in the financial and economic performance of integrated business structures, a vast body of scientific knowledge and applied experience in searching for new effective innovative management tools is being accumulated. To survive in modern competitive environment, small and medium-sized enterprises while integrating should invest their owner’s funds or borrowed capital to update, expand and diversify their business, as well as focus their policy towards open innovation. Thus, in the context of the whole range of risks and challenges associated with the role of open innovations within the performance of integrated business structures, maintaining a process of modeling innovative development seems critically important. From this perspective, effective information support to generate and consolidate information data in all areas of financial and economic performance is paramount. Apart from the above, it will also contribute to boosting the efficiency of modern integrated business structures. The study findings demonstrate that socioeconomic growth rates in Ukraine are greatly affected by its investment policy focus aimed at facilitating innovative structural transformation in priority industries, modernization and technical renewal, the implementation of energy- and resource-saving and eco-friendly technologies. It is concluded that the declared investment imperative support in Ukraine within the framework of the government innovation policy will enhance further innovative development of integrated business structures and encourage the overall economic growth.

Symbolic or Substantial? A Firm Response to Government Innovation Policies From Institutional Logic

What influences a firm response to government innovation policies? The stakeholder perspective suggests that firms should commit to government substantially because the government is a legitimate and powerful stakeholder. The agency perspective suggests that some firms may instead respond opportunistically. This study draws institutional logic perspective to reconcile these conflicting arguments. We propose that China’s state-owned enterprises, guided by state logic, are more likely to make a substantial response to government innovation policies. Private firms guided by market logic are more likely to make a symbolic response. In the context of China’s Medium- and Long-Term Plan for Science and Technology Development (2006–2020) (MLP), we took a quasi-experimental approach to test the above arguments by using data on publicly listed Chinese companies from 2003 to 2009. MLP stimulated an increased volume of invention patent applications from state-owned enterprises(SOEs), and a larger percentage were granted. Private-owned enterprises(POEs) also submitted more applications, but a smaller percentage were granted. MLP increased POEs’ market-related expense and revenue but not for SOEs. These findings make important theoretical contributions to government innovation policy and stakeholder theory.

The Japanese Government's Science and Innovation Policy

The Japanese Government's Science and Innovation Policy

Link & Match and Professional Competencies of The Banjarbaru Aviation Vocational School Cadets, South Kalimantan Province

The objectives to be achieved in this research are: 1) Describe and Analyze Link and Match and Professional Competence to be able to create Professional, Reliable and Resilient Human Resources. 2) Describe and analyze Local Government Innovation Policies and Banjarbaru Aviation Vocational High Schools (SMK) in creating competitive innovations and encouraging progress to improve Talent Competencies, Intelligence competencies, Social Competencies, Emotional Competencies and Academic Competencies of Banjarbaru Aviation Vocational High School cadets. 3) Finding and Describing Competitive Innovation Models that are able to create reliable and strong HR Competencies and become winners in the aviation industry.The research approach uses an inductive qualitative method, which starts from the existing data, not from a theory and does not intend to test the theory. The qualitative approach uses data in the form of words, sentences, pictures, behaviors, replicas, manuscripts, interviews, field notes, personal documents, memo notes, and other official documents that are not dominated by numbers. This study also uses a constructivist/interpretive paradigm with an inductive qualitative approach. Data were collected according to the theory of Denzin and Lincoln which used a natural setting as a direct data source.Practical implications: (1) Link and Match and Professional Competence at the Banjarbaru Aviation Vocational School have been able to create Professional, Reliable and Resilient Work Creator Human Resources. This is evidenced that many graduates of the Banjarbaru Aviation Vocational School occupy positions that are in accordance with their professional competence, at least approaching their competency capacity, namely as pilots, flight attendants and aircraft engine technicians. From the right position, it was also found that graduates were able to occupy the main ranking, namely being the best policewomen in the South Kalimantan Police so that they could be used as examples for other cadets. (2) The Local Innovation Policy of the Regional Government does not play a role as it should, because it is still focused on central policies so that the role of the Banjarbaru Aviation Vocational High School (SMK) policy always implements policies regarding link and match by conducting a driver force (creating competitive innovation and encouraging progress to improve Talent Competence, Intelligence Competence, Social Competence, Emotional Competence and Academic Competence of the Banjarbaru Aviation Vocational High School cadets focused on the Teaching Industry or Teaching Factory.Originality/value Research: reconstructing a policy theory called Integrated Holistic Policy (IHP), which gives strength and focus to central policies that are locally innovated by schools. The Competitiveness Innovation Model initiated by the Banjarbaru Aviation Vocational School has been able to create reliable and strong HR competencies and become winners in the aviation industry. The KHI model found in this study becomes a comprehensive and integrated innovation idea from core learning academics and prakerin, so that when cadets enter the roaming of the Aviation Vocational School they have been able to experience a metamorphosis (change) from not knowing to knowing and from knowing to being an expert in change. their knowledge, attitudes and skills. Keywords: Integrated Holistic Policy (IHP) DOI: 10.7176/PPAR/12-4-03 Publication date: June 30 th 2022

Spillovers of innovation subsidies on regional industry growth: Evidence from China

Spillover is an important channel through which government innovation policies boost economic growth. Despite various firm-level analyses on the effectiveness of innovation subsidies, industry-level spillovers of such subsidies and determinants of their strength are not well-studied. Based on the sample of all the subsidized manufacturing and service industries in the Innovation Fund for Small and Medium Technology-based Firms (Innofund) program from 1999 to 2014, we examine the spillover effects of innovation subsidies and explore rich heterogeneities across regions and industries. We find significantly positive spillover effects of the innovation subsidies on the subsidized industries and their upstream and downstream industries regarding the firm number, employment and output growth. Furthermore, we find large vertical spillovers of subsidies from high-tech service sectors to manufacturing sectors for the first time. The spillovers work through market linkages, strengthened by marketization, decentralized governance, and interactions between different techno-industrial policies.

Can government venture capital guidance funds promote urban innovation? Evidence from China

AbstractDue to externalities and market failure, innovation activities are facing insufficient investment. Venture capital guidance funds (VCGFs) are an important policy implemented by China's government to guide private capital to participate in innovation and entrepreneurship activities, and it can have an important impact on scientific and technological innovation. Based on the panel data of 285 cities in China, this paper empirically analyzed the impact of VCGFs on innovation and its mechanism. VCGFs can significantly promote urban innovation and this role is sustained for three years following VCGF establishment. Further research shows that VCGFs do not have a direct impact on innovation but promote innovation by promoting the accumulation of innovative talent and capital, and the capital accumulation effect of VCGFs is the main path through which they promote urban innovation. Corruption is also a factor that restricts the effectiveness of an innovation policy. Thus, China's top‐down anticorruption campaigns can strengthen the ability of VCGFs to promote urban innovation. This paper opens the black box to show the mechanism through which VCGFs impact urban innovation, affirms the important role of the government in the regional innovation system, and clarifies the debate on government innovation policy.

Optimization of Innovation and Entrepreneurship Policy of Scientific and Technological Entrepreneur Talent Using Regional Competitive Advantage Theory.

Under the background of mass entrepreneurship and innovation, innovative entrepreneurship research is urgently needed for entrepreneurs. The aim was to explore the innovative entrepreneurship consciousness of new entrepreneurs. First, the regional competitive advantage theory is discussed. The research method of questionnaire survey is combined with statistical analysis to obtain relevant research data. Quantitative standards are used to measure the impact of regional advantages and policy support on entrepreneurs’ innovation and entrepreneurship. The policy content analysis and questionnaire survey are applied to discuss the impact of regional competitive advantage, educational psychology, innovation and entrepreneurship policy, and entrepreneurs’ innovation consciousness. Meantime, the policies related to entrepreneurs’ innovation and entrepreneurship are further explored. The results show that the proportions of young entrepreneurs suffering anxiety and depression are 29.4 and 27.5%, respectively, which are significantly higher than the national average. Besides, in the test, F=23.11, p<0.005, which indicates that all proposed hypotheses are valid. The results suggest that the overall mental health level of young new entrepreneurs is not high, and their consciousness of innovation and entrepreneurship needs to be strengthened. Under the wave of mass innovation and entrepreneurship, the research results can strengthen entrepreneurs’ innovative entrepreneurship consciousness and may have great theoretical and practical significance for improving and optimizing government innovation and entrepreneurship policies.

University–Industry Collaborative Innovation Evolutionary Game and Simulation Research: The Agent Coupling and Group Size View

Based on the evolutionary game theory, this paper explores the evolutionary stable strategy (ESS) of university-industry collaborative innovation. By utilizing MATLAB software, the analysis of the influence of agent coupling degree, group size, and government policies on the stable evolution of university-industry collaborative innovation is taken into account, while simulating. Our findings indicate that, first, agent coupling degree is positively and nonlinearly related to the stable evolution of university-industry collaborative innovation; second, when an enterprise's size is equal to university's, group size is more significant to the stable evolution of university-industry collaborative innovation than agent coupling degree; third, when a group size of an enterprise and university is different, the combinations of agent coupling degree and group size have various effects on the stable evolution of enterprise group and university group; and fourth, government policies have a significantly positive impact on the stable evolution of university-industry collaborative innovation, and incentive measures are more effective than punitive ones. Research conclusions have developed the relationship among university-industry collaborative innovation agents, expanded the boundary of the stability study of collaborative innovation, and provided new ideas for improving the effectiveness of government innovation policies.

Internal power dynamics: impact of government innovation policies on firm commercialization

This study develops a theory of interactive power dynamics to examine the effect of government innovation policies on firms’ new product commercialization. Our interactive power dynamics model suggests that such policies can disrupt the power relations between interdependent subgroups within a firm (in this context, research and development (R&D) and marketing teams). In the context of China’s Medium- and Long-Term Plan for Science and Technology Development (2006-2020) (MLP 2006), we argue that the growth in power of a firm’s R&D group arising from a need to meet the government’s expectations could reduce cooperation between R&D and marketing, with a consequent negative effect on new product commercialization. We further argue that if the R&D group is already more powerful, this exacerbates the negative impact, but a more powerful marketing group can mitigate it. We took a quasi-experimental approach to test our hypotheses using a large dataset from China and obtained support for our theoretical model. Ultimately, our study offers a number of policy and managerial implications.

The impact of Covid‐19 on innovation policies promoting Open Innovation

Since the eruption of the Covid‐19 pandemic, in response to the global health emergency, governments have focused on designing policies aimed at the development of more innovative products and services. Effective collaboration, communication, and Open Innovation (OI) between government organizations, education and research institutions, and the marketplace have been fundamental to the success of each country's response during the crisis period. Using a comprehensive data set from OECD on innovation policies implemented by governments before and during the Covid‐19 crisis, this paper analyses the extent to which these innovation policies promote OI and how these policy decisions evolve to support an effective response to the pandemic. Through a cluster analysis, we identify four possible government innovation policy strategies (centralizers; conservative OI promoters; collaborative supporters; open collaborators) and analyze how these strategies evolve before and during Covid‐19. Our findings confirm that even though there is an increased use of innovation policies promoting OI during the crisis, there is little evidence of consistency between the policy strategy used pre‐Covid and during the crisis for each country. However, there is an increased use of four types of innovation policy instruments, i.e., those entailing formal consultation with stakeholders and experts; fellowships and postgraduate loans and scholarships; networking and collaborative platforms; and dedicated support to research infrastructures. Although the paper limits the scope of the analysis to the early government reactions in selected OECD countries, it captures an important moment in time (i.e., reaction to a severe shock), which opens avenues for future studies.