High-technology Sectors Research Articles

The medium-high and high technological intensity sectors in Mexico and Brazil: a structural decomposition analysis between 2000-2014

We develop a structural decomposition analysis (SDA) to identify the importance of mid-high and high technological intensity (MH&HT) manufacturing and services to the changes in gross output for Brazil and Mexico between 2000 and 2014. We break down the output changes in the composition and level of final demand, the production technique (technical coefficients), and the trade pattern (share of imports in the total supply of inputs and final goods). The results show that the MH&HT importance tends to be pro-cyclical in the two economies, increasing during periods of more remarkable economic growth (2000-2008 for Brazil and 2010-2014 for Mexico). This relation tends to be perceived for manufacturing and less so for services.

Product and process innovation patterns in Polish low and high technology systems

Research background: While the Sectoral Innovation System (SSI) anticipates technology-related similarities in innovation patterns in the same sectors across countries, the distance to the frontier suggests that there are important differences with respect to the level of national technological development. Most contemporary analyses of sectoral innovation systems are focused on well-developed economies. In contrast, the evidence from developing countries including new EU members are scared and lack dynamics. Purpose of the article: The purpose of this paper is to identify and compare product and process innovation patterns in Polish low and high technology systems. The main assumption is that divergence and convergence in innovation patterns of low- and medium-low technology (LMT) and high technology (HT) systems evolve over time and are strongly influenced by the characteristics of firms, their linkages with other system participants, existing demand, and institutional conditions. Methods: According to the third edition of the Oslo Manual (OECD, 2005), we employ a harmonized questionnaire and methodology to collect unique micro data on innovation. The survey concerns 5252 firms including 873 firms from HT sector. The scope of the research relates to product and process innovation at least new to the firm. Findings & value added: Our results show that although the intensity of product and process innovation is higher in HT system, both business support institutions and public financial instruments better support firms in LMT sectors. On the other hand, existing demand and market structure favor the emergence of new innovations at the firm level (imitations), but with more emphasis on LMT. The key source of innovation is suppliers, with foreign suppliers in HT and national ones in LMT. In contrast to leading economies, LMT plays a key role in long term economic growth in Poland.

Towards sustainable transportation: The development of hyperloop technology in Saudi Arabia

Saudi Arabia aims to achieve the principles of sustainable development goals (SDG) in all aspects of life in accordance with its ambitious vision 2030, especially in the field of sustainable passengers and freight transportation. Hyperloop technology can be considered as an excellent sustainable solution for the future of transportation in Saudi Arabia as a result of the availability of auxiliary ingredients, such renewable energy resources and the necessary infrastructure required enhancing the future mobility technology. Hyperloop can reduce the travel time between Saudi cities at a cost equivalent to ticket prices compatible with forms of mass passenger transportation. Accordingly, the Hyperloop technology can be more efficient in terms of energy consumption through the application of renewable energy resources, which makes this technology very attractive to the Saudi Arabia. The present paper discusses the feasibility of Hyperloop technology in Saudi Arabia in technical and economic perspectives including basic performance and cost analysis. Moreover, the integration of different renewable energy recourses, such as solar and hydrogen energy is also discussed. Three major energy systems were reviewed in depth: electrical energy derived from typical fossil fuels and two renewable energy systems based on solar energy, which can be utilized as a primary source of energy or to produce green hydrogen. The overall estimated cost of the three distinct power supply systems was compared using 2022 prices as a benchmark. In comparison to the electrical system and the solar-hydrogen system, the overall cost of the Hyperloop-hydrogen system is the most expensive power supply system. It is expected that the use of Hyperloop technology in Saudi Arabia will be a motivating factor in achieving the Kingdom’s Vision 2030 in the transportation sector and as a catalyst for high technology through its requirements for artificial intelligence programs and computer-based operational systems. It can also achieve a significant increase in Gross Domestic Product (GDP) by providing jobs and opportunities for young Saudi men and women in the high-technology sector.

Walking the Tightrope: Coopetition Capability Construct and Its Role in Value Creation

Prior research emphasizes the paradoxical nature of coopetition and the need for specialized capabilities—coopetition capability—to deal effectively with opportunities and challenges stemming from the simultaneous pursuit of cooperation and competition and to create superior value. However, we know little about the underlying conceptual properties of coopetition capability (construct clarity) and lack a reliable and valid scale to measure it (construct validity). We conduct a study in three phases to address this critical gap. First, building on paradox literature, we conceptualize coopetition capability as a multidimensional construct reflected by three underlying dimensions: coopetition mindset, analytical acumen, and executional skills. Second, we develop a 15-item psychometrically valid scale using a sample of 647 coopetitive alliances in high-technology sectors. Finally, using a matched sample of 536 coopetitive alliances, we extend the focal construct's nomological network by examining two relationships: coopetition experience's impact on coopetition capability and the effect of coopetition capability on the relationship between the coopetition paradox and value creation. Overall, our paper lays a foundation for deeper theory development and empirical research on coopetition by providing much-needed construct clarity and psychometrically valid measures for coopetition capability.

Ürün Yenilik Stratejileri: Firma Düzeyi Analizi

In this study, we examine the association between firms’ innovation process and their product quality improvement and new product introduction strategies. Our focus is on the distinction between firms’ product quality improvement and variety extension objectives. We use data from Turkish Statistical Institute (TURKSTAT) Innovation Survey between the years 2014 and 2016. According to the descriptive results, firms report that product quality is more important than product variety. Additionally, high technology sectors such as computer and pharmaceuticals have market concentration ratios. Estimations results show that there is a positive relationship between patent applications by firms and probability of product innovation for small and medium sized firms. Moreover, most of the product variety objectives indicators and technology level are significant and positively related with probability of product innovation for type of firms. Probability of innovation increases with variety objective whereas indicators related with quality objective are insignificant.

Foreign direct investment, efficiency, and total factor productivity: Does technology intensity classification matter?

Purpose ― We examine whether the foreign direct investment (FDI) in promoting technical efficiency is controlled by the sector classifications based on the technology intensity (High Technology, Medium-High Technology, Medium-Low Technology, and Low Technology). Methods ― We use the Indonesian firm-level dataset of the large and medium manufacturing survey from 2007 to 2015 and employ the time-varying stochastic production frontier. Findings ― We reveal that FDI, technology intensity and absorptive Capacity significantly affect firms' production and efficiency. We also found that the Indonesian manufacturing industry from 2007 to 2015 experienced positive Total Factor Productivity growth, where High-Technology sectors experienced the largest magnitude among others. Meanwhile, technological progress stemming from FDI is enjoyed more by Low Technology sectors. Meaning to say, technology intensity classification does not matter to technological progress. Implication ― The host country's government should focus on industries with high technical capabilities to accelerate FDI gains for the firms. Simultaneously, human capital improvement also needs to be intensified, for instance, through training or human development, so that firms with lower technical capability can catch up and, consequently, receive similar benefits from FDI activities. Originality ― Our study accommodates the research gap by including the FDI effect in both productivity and efficiency in a single equation. Many studies merely categorize technology intensity following the stochastic production frontier estimation to obtain technical efficiency or TFP growth. In this sense, those studies did not control the impact of the technology-specific effect.

Peculiarities and Dynamics of Financing Innovative Activity in High-Tech Industries of the Russian Federation

Relevance. One of the conditions for strengthening the position of the country on the global markets is the production of high-tech goods, determining the possibility of quality satisfaction of modern needs. Activation and intensification of processes in the Russian economy contribute to the enterprises - generators of innovation and belonging to the sector of high-tech production. Applying advanced technologies, demonstrating the innovative activity, the enterprises are called to determine the strategic vector of innovative economy formation. Therefore, consideration of the issue of studying the structure of funding sources of this sector, existing problems and prospects will allow making forecasts adequate to modern realities.Purpose ‒ to analyze the current state of the process of financing high-tech industries as the basis for structural changes in the industrial sector of the economy and the source of stable socio-economic development of the state.Objectives: to examine the structure and sources of financial investments in the high technology sector, analyze the dynamics and effectiveness of funding of innovation activities in the high technology sectors of the Russian economy in current conditions.Methods. The research was based on the methods of comparative analysis, economic and statistical analysis, and methods of expert evaluations.Results. The efforts of the state to introduce advanced technologies affect all sectors of the economy and, primarily, the high-tech sector. This is because industrialized countries are currently undergoing the processes of restructuring and modernization of industry, with special attention being paid to knowledge-intensive and high-tech industries. It is possible to ensure the competitiveness of domestic industrial products with the development and implementation of correct strategies of economic development, elaborated legislative base in the relevant area, and sufficient financing for conducted transformations.Conclusions. Despite the active attention of the state to the high-tech sector of the economy, the issue of timely and sufficient financing thereof remains open, which creates objective difficulties for solving the tasks set by the President to preserve the scientific and technological potential of the Russian Federation, ensure conditions for innovative development of the real sector of the economy and improve the competitiveness of the Russian industry at the national and international levels.

‘The Forgotten Sector’: An Integrative Framework for Future Research on Low- and Medium-Technology Innovation

Despite apparent significance, innovation in low-technology (LT) and low-to-medium technology (LT/LMT) sectors has enticed relatively less consideration from scholars and policy-makers than high-technology (HT) sectors, thus, earning the label ‘the forgotten sector’. In this paper, we critically review the extant research on this forgotten sector, with the vital objective of proposing an integrated research framework from a diffuse literature base. We believe our findings can be utilized by innovation scholars to do more coherent research on the LT/LMT sector in the future. Our research presents important contributions and implications for scholars, business, and policy-makers as we propose a multi-level, integrated thematic framework that highlights the importance of LT/LMT sectors in innovation ecosystems (NIS) and offers avenues for future research.

Examining the formation of entrepreneurial resources in emerging market international new ventures

While emerging market international new ventures (INVs) in high-technology sectors are gaining traction as entrepreneurial actors, the literature has remained silent as to the formation of key entrepreneurial resources that fuel INV performance. Thus, the issue of an entrepreneurial team and their core competences are a key issue to advance our understanding of emerging market INVs. The current article utilized resource-based view to bring forward human capital of entrepreneurial teams, international entrepreneurial culture (IEC), and entrepreneurial marketing (EM) as key entrepreneurial resources. The authors empirically examine a theoretical model using survey data from a sample of high-technology INVs from India. The results of the empirical examination reveal that human capital shapes IEC and EM, respectively. Also, EM fosters performance of emerging market INVs. This article provides useful implications for managers regarding the value of human capital in the entrepreneurial team, and their role in developing key entrepreneurial resources that spur superior performance.

Historical roots of innovative entrepreneurial culture: the case of Italian regions

ABSTRACT This paper investigates persistence in entrepreneurship across Italian provinces over the period 1927–2017. We distinguish between a ‘general’ dimension (sociopsychological) and a ‘specific’ dimension (learning) of the role model effect. Based on data obtained from a comprehensive survey conducted in 1927 by the Italian National Statistical Institute, we find different drivers of persistence across sectors: the only driver of persistence in high-technology sectors is the share of entrepreneurs using motive power (‘specific’ role model effect), while the share of industrial entrepreneurs (‘general’ role model effect) is an important driver of persistence in low-technology manufacturing and service sectors.

What Encourages Longer Educational Careers in Tertiary Education? A Three-Level Approach for the Case of Romanian Universities.

Students’ commitment and engagement in the educational process are shaped by a dense combination of factors, with effects on educational attainment and on the length of their educational careers. Decisions of prolonging education by enrolling in master’s degrees are beneficial for both individuals and societies, as such programs provide higher levels of specialized skills Longer educational careers are favored by a mix of factors acting at the level of individual, university, or wider environment. We focus our study on exploring factors conducive for students’ intentions to pursue master’s degrees considering longer educational careers as desirable outcomes. Thus, this article investigates how the individual and environmental factors interplay and shape the predisposition of students to prolong their educational career by enrolling in master’s degrees. For this, we applied three-level logistic regression models for a sample of 502 students enrolled in their final year of bachelor studies grouped by universities and universities grouped by counties. The empirical results revealed that the final grade, the father level of education, the type of working contract, and job seniority are individual-level determinants influencing the decision of enrolment in a master’s program. At the university level, the type of university and the university performance score positively impact the students’ decision to enroll in a master’s program. At the county level, the empirical evidence pointed out the significance of determinants such as the proportion of students enrolled in bachelor studies; participation rate in education and training; employment level in high-technology sectors (HTC), total-knowledge intensive sectors (KIS), and knowledge-intensive high-technology sectors (KIS_HTC); proportion of persons with tertiary education employed in science and technology; proportion of scientists and engineers; local development; R&D expenditure, personnel, and researchers in the business sector; average gross earnings; density of active firms; birth rate of companies; proportion of innovative enterprises or those introducing product innovations on the decision to enroll in a master’s program.

Internationalization of China’s medical device industry: a case study in Brazil

Purpose The singularity of being the first Chinese manufacturer of drug-eluting stents to arrive in Brazil and the country being selected as the company's first experience outside its home country motivated the interest in the study of this case, vis-à-vis with the characteristic of internationalization medical device companies according to the Uppsala model. Considering this context, the following research question was outlined: “How did Microport internationalize before the distribution of its stents product in Brazil?” The aim of the study is to investigate Microport's internationalization process for the distribution of its drug-eluting stents in Brazil. Design/methodology/approach Exploratory research under the qualitative method was adopted. It chose the single case study as a procedure for data collection, as it is a revealing, exemplary subject that offers opportunities for access to unusual research. The company MicroPort was chosen because in the period when Chinese medical device companies were focused on gaining market share in China, MicroPort began its international expansion, choosing Brazil as the first country to have its own subsidiary. It consists in the case of the internationalization of a high-tech EMNE in an emerging country that has institutional and cultural differences. Findings Taking advantage of new technology in highly internationalized environments favors its insertion; the internationalization of medical technology can expand according to the Uppsala Model, which does not explain internationalization, but rather its evolution. Cultural and behavioral issues reinforce that the development of the market for medical devices depends on local perspectives and values. The formation of an ecosystem in the local market for internationalization is observed. One implication of the study is that MicroPort's experience and the application of the Uppsala model for international expansion can serve as an important learning experience for Brazilian multinational companies. Research limitations/implications Empirical analysis carried out in the context of a single company. Although the results can be used as lessons learned from the application of the Uppsala model for international expansion of EMNE in an emerging market, caution should be exercised when generalizing its findings. Future studies could carry out comparative cases considering other emerging multinational companies, from the same sector or even from different industries, investing in other emerging markets. There is a limitation of the fact that the case studied does not explore the concepts of the later stages of the Uppsala model. Practical implications High-tech EMNEs internationalizing in other markets need to adopt aggressive strategies. The need to adopt different strategies for supply chain operations according to the specificities of the markets in which they operate. Important contributions to the Uppsala model, with regard to the process of passing stages, learning and networking. The findings of this study have similarities to the process described as a sequence of distinct phases of activities. Social implications A local top management team is essential to deal with institutional issues of government agencies when EMNE is internationalized in a culturally distant market. When there are major institutional differences between the country of origin and the host country, the autonomy in the management of the foreign subsidiary positively influences the acceleration of the internationalization process of companies in the high-tech sector. When there are major institutional differences between the country of origin and the country of destination, the use of local social networks positively influences the acceleration of the internationalization process of companies in the high-technology sector. Originality/value Regardless of these limitations, the study provided an exciting case of internationalization of a Chinese company in Brazil operating in a high-tech medical sector. The challenges for the internationalization of EMNEs continue, which makes it opportune for future studies to include more research in this area. The propositions suggested in the study may be the first step.

China’s geoeconomic strategy in the rare earth industry:Case studies

This paper analyses the essence of China’s geoeconomics strategy in the rare earth industry, by analyzing two case studies, Japan, and the USA. China is the leading producer and exporter of rare earth elements, mineral substances that are critical to high technology sectors, clean industries, or defense. Available data suggest that China has been using its leading position to promote the development of the country’s main industries, but also to achieve geopolitical goals. The Chinese industrial and trade policies have made clear to importing countries the urge to keep global value chains’ resilience in strategic sectors for economic and national security.

The role of productive and technological capabilities in export dynamics in developing countries

Productive and technological capabilities are major engines of export. But how they affect export behaviour at the microeconomic level is less clear and many questions remain. This paper empirically investigates their role in export dynamics in 40 developing countries. The analysis shows that, within sectors, countries with greater productive capacities have more exporters, and the exporters are larger and charge higher prices for their products. The results also confirm a positive relationship between technological capabilities and diversification: within sectors, exporters in countries with stronger capabilities tend to export a higher number of products and to more destination markets. Lastly, technological capabilities also play a specific role in the diversification of products and market destinations of high-technology sectors. Thus, even comparing exporters’ behaviour only among developing countries, productive and technological capabilities are found to be strongly related to the extensive and intensive margins of exports, and to diversification and product quality.

Disempowerment without expropriation: Egypt’s old oligarchy under Sisi

ABSTRACT What happens to oligarchs when they get politically disempowered? This article looks into changing private property relations in economies dominated by oligarchs in the global south during unstable times of popular unrest and frequent regime change. It considers the case of Egypt after the 2011 revolution. Paradoxically, the old oligarchs retained their assets despite losing political influence. I argue whether oligarchs survive regime change without being expropriated depends on the perceived importance of their assets by the new rulers for the regime’s political, financial and security stabilization. In turn, this depends on how well-established are the oligarchs in critical areas like foreign currency-earning and high-technology sectors. Moreover, the older, more concentrated and transnationalisssed the old oligarchs’ assets are, the higher the perceived cost of expropriation becomes for the new regime. In Egypt, the military-backed regime that seized power in mid-2013, had to count on the oligarch-dominated private sector for economic recovery as it did not enjoy alternative stable revenue sources of its own. The final outcome of such institutionally-bounded rationality by the regime was the old oligarchs’ disempowerment but not their expropriation, pushing for a differentiated oligarchy. This contributes to the literature on state-business relations in the global South.

Learning to not belong: entrepreneurial learning experiences of women high-tech entrepreneurs

PurposeThe influence of gender on high-tech entrepreneurship is of growing interest worldwide, as scholars argue that women face gendered barriers specific to this field. Although some gender-focussed research exists on the interplay of context and entrepreneurial learning, these issues have yet to be intensively studied, and the research aims to address this gap.Design/methodology/approachThe research draws upon empirical evidence from the entrepreneurial learning of nine women opportunity entrepreneurs in the high-technology sector in Norway. It employs a qualitative phenomenological approach, with retrospective and in-depth interviews to capture and analyse the entrepreneurs' lived experiences and learning histories.FindingsThe entrepreneurs in this study highlight gendered learning experiences, leading them to make conscious and strategic decisions of both alignment and resistance to negotiate their enterprise in a highly masculine sector. Their prior learning histories of not belonging seem to underpin their preparedness for entrepreneurship in the sector. Counter to prevailing theorizing, not belonging is an enabling condition, allowing women entrepreneurs to subvert and challenge a highly masculinized context. This condition empowers them to mobilize their “otherness” to create change within their own ventures and make the rules on their own terms.Originality/valueThis interdisciplinary research deepens the understanding of the interplay between gender, entrepreneurial learning and context through the concept of belonging and extends theorization of the gendered dynamics in entrepreneurial learning histories. The paper proposes a framework of gendered entrepreneurial learning in a masculinized industry context, which highlights important implications for future gender and entrepreneurial learning research.

Regulator Reputation and Stakeholder Participation: A Case Study of the UK’s Regulatory Sandbox for Fintech

This article contributes to the discussion about managing the risks and uncertainties of emerging technologies through increased stakeholder participation. Authorities have increasingly invited stakeholders from high-technology sectors to participate in assessing the risks of, and designing responses to, new technologies. Yet authorities often struggle to attract stakeholders from such sectors to participate; a critical challenge identified but still undertheorised in the literature. Responding to this gap, this article presents a case study of the UK’s regulatory sandbox for financial technologies, applying a document study, questionnaire and interviews to explore fintech firm motivations and apprehensions about participation. Drawing on the bureaucratic reputation literature, the study finds that fintech firms have a range of practical, reputational and normative motivations to participate, and these motivations are inextricably tied to the regulator’s strong reputation with the sector as procedurally correct, high-performing and morally committed to facilitating innovation. On this basis, recommendations for practitioners and hypotheses for future research into the drivers of stakeholder participation in regulatory decision-making surrounding emerging technologies are proposed.

The Dilemma of Intellectual Property Agreements and R&D in Developing Economies: A Game Theory Approach.

This paper models and predicts how the strengthening of intellectual property (IP) protection will impact R&D in developing economies. International agreements such as TRIPs and free trade agreements are enhancing the level of international control on IP. This is changing deeply the R&D environment in developing economies by restraining illegal channels of knowledge accumulation such as imitation, reverse engineering and piracy. An asymmetric and non-cooperative two-stage (R&D-Production) game is proposed to model a developing market where two local firms compete with a more innovative foreign firm. Equilibrium R&D expenditures and profits of the competing firms are compared for different levels of: market technology, technological gaps and IP protection. The proposed model shows clearly that a stringent enforcement of IP agreements will dramatically decrease the innovative abilities of developing economies especially in high technological sectors. The maintain and increase of their R&D skills will not be possible without a reduction of their technological gap and strong incentives to initiate regulatory (or permit tacit) R&D cooperation between local firms.

THE ROLE OF MERGERS AND ACQUISITIONS IN THE DEVELOPMENT OF OPERATIONAL CAPITAL GROUPS FROM HIGH AND LOW TECHNOLOGY SECTORS

This article presents the analyses the role of M&A transactions in the development of operational capital groups from the perspective of high and low technology sectors. Two main research questions were asked: 1. what is the role of M&A in the development and competitiveness of operational capital groups; 2. is there specificity in the role of M&A transactions of operational capital groups in high and low technology sectors? The purpose of this article is to tentatively find, based on two case studies, the specific role of mergers and acquisitions in the development of operational capital groups in low and high technology sectors. In order to initially answer the questions asked, two case studies, one each from the high-tech and low-tech sectors, were conducted. Finally, it was recommended that a larger study be conducted on operational capital groups, which could confirm the validity of the preliminary answers to the research questions asked.

Will bad air quality affect the siting of foreign-invested manufacturing enterprises? The evidence from China

ABSTRACT Albeit notably increasing studies dedicated to investigating the impact of air pollution on enterprises’ productivity and profit, few have oriented onto explicitly probing how the enterprises, particularly those foreign-invested firms, made their location choices concerning air quality. Accordingly, this study contributes to explain the impact of air pollution on the site selection of foreign-invested manufacturing enterprises with a unique firm-level dataset of China. The study also discloses the heterogeneity of air pollution effects attributable to enterprises’ various features regarding ownership property, host country, industrial classification, and investment scale. Our result justifies a statistically significant and negative impact of air pollution on the siting of foreign-invested manufacturing enterprises. The heterogeneous effects of air pollution manifest that the location choice would be remarkably more sensitive for the sole-venture enterprises, and for those headquartered in developed countries, engaged in high-technology industries, and at small and medium investment scales. The study finds that the siting of small-scale firms in high-technology sectors appears to be the most sensitive to air pollution, signifying that air pollution severity would be a pivotal factor pushing aside high-quality foreign-invested enterprises to invest in polluted areas in general.