Independent Innovation Capability Research Articles

How do nonsubsidized incentive affect enterprises' innovation choices? A case from the new energy vehicle industry in China

Faced with the mainstream trend of subsidy reduction, how to effectively guide NEV enterprises to innovate through nonsubsidized incentive is a pressing issue to be addressed in the transformation process of China’s NEV industry. Based on the distinctive characteristics of China's NEV industry, this study proposed corresponding theoretical hypotheses combined with the smile curve theory. Propensity score matching method was used to verify the influence and mechanism of nonsubsidized incentive on the innovation choices of NEV enterprises in segments of production and consumption. The results indicate that nonsubsidized incentive in the production segment stimulates the product innovation of NEV enterprises, especially those with political and industrial chain connections through mechanism of market competition. Nonsubsidized incentive in the consumption segment stimulates service transitions among NEV enterprises, particularly those lacking political connections but possessing industrial chain connections, through mechanism of scale expansion. Therefore, to promote the innovative development of emerging industries, policy should be shifted from ‘transfusion-style’ to ‘hematopoietic-style’, gradually cultivating enterprises' independent innovation capabilities. Meanwhile, policy resources should be allocated according to resource differences among enterprises. This study provides practical policy recommendations for the transformation of China's NEV industry and offers insights into the development of emerging industries for developing countries.

Research on the Influence of FDI on the Ability of Independent Innovation of Henan Province

Since the 1990s, Foreign Direct Investment (FDI) has played a more and more important role in the economic development of Henan Province. Especially in recent years, FDI has always played an important role in the technological progress and economic transformation of Henan Province. This article uses a combination of theoretical and empirical methods. The first step analyzed the relevant domestic and foreign research situation, at the same time demonstrated the article's empirical analysis ideas and analysis methods, and analyzed the current situation of the current FDI introduction in Henan Province, using the entropy method to quantify the status of independent innovation capability in Henan Province. In the empirical study, we selected data from Henan Province for 10 years, selected the comprehensive evaluation value of independent innovation capability of Henan Province as the dependent variable, FDI and foreign trade dependence degree as two main independent variables to conduct linear regression analysis and examine them through cointegration test. The causal relationship between. The research results show that: FDI has a positive effect on the development of independent innovation capability in Henan Province. The article finally proposes corresponding policy recommendations based on the previous theoretical and empirical research.

Exports of intermediate goods and innovation: Evidence from China’s firms

Based on the experience of developed countries, the production and export of intermediate goods have been observed to foster innovation within firms. This study investigates whether China's export of intermediate products has significantly enhanced the independent innovation capability of China’s firms. Using microdata and patent applications as a measure of innovation, we adopt the staggered PSM-DID method to explore the influence of China’s intermediate exports on firm innovation. We find that China's export of intermediate goods positively influences firm innovation, particularly utility patents. Domestic firms benefit more from this effect than foreign firms, and medium-high technology industries experience the most significant innovation impact. The export of intermediate goods stimulates innovation through the following channels: scale economies and employment structure optimization. These findings shed light on China's evolving innovation landscape.

Does Geopolitics Affect the Development of China’s 5G Industry?

Does Geopolitics Affect the Development of China’s 5G Industry?

The impact of executive compensation incentive on corporate innovation capability: Evidence from agro-based companies in China.

This paper aims to examine the impact of executive compensation incentive on corporate innovation capability by dividing executive compensation incentive into short-term monetary incentive and long-term equity incentive. We also investigate the interaction between the two types of executive compensation incentive. Data are collected from China's agro-based companies during 2012-2019, and multiple regression analysis is utilized. The empirical results show that short-term monetary incentive has no impact on innovation capability, while long-term equity incentive stimulates innovation capability. Regarding company ownership, the impact of long-term equity incentive in state-owned enterprises is greater than that in private-owned enterprises. In addition, the complementary effect between short-term and long-term compensation incentive has a positive impact on innovation capability regardless of company ownership. The findings of this paper could help agribusiness managers to design the reasonable incentive system to incentivize corporate executives and enhance the capability of independent innovation.

Analysis of Public Technology Collaborative Innovation Based on Private Technology: A Tripartite Evolutionary Game Approach

Public technology collaborative innovation serves as an essential driving force to implement the innovation-driven strategy as well as promote national and regional economic sustainable development. Moreover, strengthening the construction of public technology collaborative innovation system is likewise of great significance for strengthening the quality and technology level of enterprises, enhancing their independent innovation capability, and achieving strategic transformation. Particularly, collaborative innovation of public technology in accordance with mature private technology enables the efficient allocation of technological and economic resources. In practice, there are still issues including high innovation costs, insufficient motivation, and low efficiency of innovation. Existing research typically ignores the technical cooperation among multiple parties. An evolutionary game model of public technology collaborative innovation is established in this paper to examine the interaction mechanism among the government, enterprises, and technology owners. For the purpose of analyzing the dynamic evolution of public technology collaborative innovation behavior and its influencing factors, numerical simulation experiments were conducted with meaningful results: (1) Setting the cost and benefit allocation coefficient in a scientific manner contributes to system stability and promotes cooperation among game players. (2) Reasonable government subsidies and penalties can assist in the formation of an active technological innovation between the firm and the technology owner. (3) The pricing method of private technology transfer is a significant factor influencing the evolution process. Besides, the adoption of a technology pricing method on the basis of government interests is conducive to the formation of a stable tripartite win-win situation. The research on collaborative innovation of public technology is further expanded in this paper, offering a reference for the formulation of relevant policies aimed at promoting cooperation in public technology innovation.

Industrial robots and firm productivity

Industrial robotics has become a driving force in the development of high-quality manufacturing enterprises. This paper investigates the impact of industrial robotics on the total factor productivity of enterprises and its mechanism of action through the use of data from A-shares of Chinese companies listed on the Shanghai and Shenzhen exchanges from 2007 to 2019. We found that the use of industrial robots significantly increases the total factor productivity of enterprises, findings that still hold when Bartik instrumental variables are constructed. The mechanism of action suggests that industrial robot application improves both the human capital structure and the innovation capability of enterprises, thus increasing total factor productivity. Heterogeneity analysis shows that industrial robot applications are more likely to increase total factor productivity in firms that are non-state-owned and small scale and have political affiliations, low market concentration, low financialization, and high managerial competence. The findings of this study will help to accurately assess the productivity effects of industrial robotics, and the government should continue to promote the integration of industrial robotics and manufacturing development and actively cultivate independent innovation capabilities and professional skills in the field of industrial robotics in order to increase total factor productivity in enterprises.

Impact of Digital Finance on Manufacturing Technology Innovation: Fixed-Effects and Panel-Threshold Approaches

Digital finance (DF) has provided important financial support for the transformation and upgrading of China’s manufacturing industry. Innovation is the engine of industrial upgrading. To solve the dilemma of developing the manufacturing industry, it is necessary to enhance independent innovation capabilities. On this basis, this article studies the impact of DF on manufacturing technology innovation (MTI). It uses the data of listed manufacturing firms in the Shenzhen and Shanghai A-share markets from 2011 to 2020 to establish a fixed-effects model and a panel-threshold model for empirical analysis. The results revealed that, first, DF significantly accelerates technological innovation in manufacturing enterprises and has a significant positive impact on technological innovation. Secondly, DF drives manufacturing enterprises’ technological innovation by alleviating financial constraints (FCs). Thirdly, there is a dual-threshold effect based on market competition between DF and MTI based on market competition, and the promotion effect of DF on technology innovation decreases with the increasing degree of market competition. Finally, DF better enhances the technological innovation of non-state-owned manufacturing firms in the respective regions compared to state-owned firms. In terms of factor-intensive types, DF is more able to advance the innovative technologies of labor-intensive and capital-intensive enterprises, while it has no significant positive effect on technology-intensive enterprises. Policy implications are suggested to boost manufacturing technology innovation and aid future studies.

Digital economy, financing constraints, and corporate innovation

We build a multi-sector Schumpeterian endogenous growth model that incorporates data as a factor of production, and explore the changes in corporate financing constraints brought about by the digital economy and its impact on corporate innovation. Next, we use data on 3328 A-share listed firms in China for the period from 2011 to 2021 to empirically test our model. The results show that the impact of the digital economy on corporate innovation is positive and significant. After multiple rounds of robustness tests and resolution of endogeneity problems, our conclusion holds. In addition, we find that financial constraints act as a transmission mechanism through which the digital economy promotes corporate innovation. After categorizing patents into invention and non-invention patents, we find that the role of the digital economy is more (less) obvious in promoting radical (incremental) innovation. In addition, the role of the digital economy in promoting innovation is stronger for large enterprises than for small and micro enterprises. In summary, from the perspective of financing constraints, this paper studies the impact of the digital economy on corporate innovation using the endogenous growth model and providing empirical evidence. The results are of great significance to attempt to improve independent innovation capability and achieve high-quality economic development.

Quantity or quality? Regional innovation policy and green technology innovation.

As a typical practice of regional innovation policy, national innovation demonstration zones (NIIDZ) plays an important role in empowering green technology innovation. Analyzing the internal logic between NIIDZ and green technology innovation is of great practical significance to enhance China's independent innovation capability and accelerate the ecological civilization construction. Based on the panel data of 280 cities from 2005 to 2020, we use the difference-in-difference model (DID) to evaluate the policy effect of NIIDZ on green technology innovation from the dual perspective of quality and quantity. The results show that NIIDZ effectively contributes to the quantity of green technology innovation (GTI) and the quality of green technology innovation (GTQ), especially GTI. The conclusion is still valid after robustness tests like PSM-DID and eliminating the pilot interference of innovative cities. The test of the intermediary mechanism shows that regional innovation policy can not only directly drive GTI and GTQ but also indirectly promote them through accelerating talent gather, driving industrial clusters, and increasing government financial support. Spatial heterogeneity analysis indicates that the effectiveness of regional innovation policy demonstrates a decreasing trend from east to west, and this positive effect is more significant in cities with a higher level of financial development. Our results provide important policy insights for the Chinese government to further stimulate the effectiveness of green innovation in the NIIDZ, accelerate the construction of an innovative country, and achieve high-quality green economic development.

Complex network analysis on provincial innovation development in China

From the perspective of innovation output, the innovation output networks of 30 provinces (excluding Tibert, Hong Kong, Macao and Taiwan) are constructed based on the modified gravity model in the past 20 years (2001–2020). Combined with the method of principal component analysis and TOPSIS, the innovation development level of each province and seven regions is evaluated by integrating some node statistical indicators. Finally, we employ the temporal exponential random graph model to study the main characteristics that affect the evolution of China’s innovation capability in the past 20 years. The conclusions are as follows: (1) There are reciprocity effect, hierarchy effect and time dependence effect in China’s innovation linkages. There is a positive correlation between innovation output and innovation absorption. (2) In the past 20 years China’s innovation output has shown a pattern of strong in the south and weak in the north, strong in the east and weak in the west. The innovation development of each province and region has changed greatly, and the gap is obvious. At present, the national innovation pattern has formed a big cycle in the eastern, central and western regions. East China and south central regions are the regional centers of innovation output in China; Southwest China is a region with rapid innovation and development; Northwest China has been isolated. (3) Provinces in the same region are likely to have innovation linkages with provinces with coexisting economic output effects. (4) The introduction of foreign capital technology promotes China’s independent innovation capability. (5) The intensity of government investment in scientific and technological research and development has ensured the orderly progress of innovation and stabilized innovation capacity. (6) Talents and education level determine the upper limit of China’s innovation ability. (7) Economic level and innovation ability complement each other.

Research on Ways to Enhance the Independent Innovation Capability of Enterprises

China is in the context of a transition economy, facing increasingly fierce competition, and the role of independent innovation in enhancing the core competitiveness of enterprises has become increasingly prominent. This study reviews the concept, antecedents, evaluation indexes and improvement strategies of the independent innovation capability of enterprises through a review of related domestic literature.

The Role of High-end Manufacturing in Sino US Trade Friction

Since the end of 2017, the US China policy has undergone major changes, and trade friction and technological competition have gradually become the focus of bilateral relations. China strives to strengthen its independent innovation capability, master key core technologies, and become an innovative country. The United States suppressed China on the grounds that "China forces us enterprises to transfer technology and steals US intellectual property rights.". Advanced technology has become the main stage of competition and contest between China and the United States. And high-end manufacturing enterprises play an extremely important role. From the perspective of the economic development of China and the United States, this paper looks for the causes of Sino US trade frictions and the underlying internal logic. Finally, from the perspective of high-end manufacturing development, the paper analyzes the advantages and possible problems of the development of China and the United States.

Evolutionary Analysis of Knowledge-Based Networks of the Electronic Information Industry from a Dual Innovation Perspective

It provides specific theoretical guidance to enhance the enterprise’s independent innovation capabilities by studying the knowledge utilization and the evolution of innovation under different innovation strategies and revealing the law of innovation path. Based on the data of invention patents of 579 electronic information enterprises from 2010 to 2019, this paper constructs a knowledge-based network based on social network analysis to study the evolution process of density, centrality, and structural holes of knowledge. The evolution analysis of 3360 knowledge-based networks shows that the electronic information industry’s overall knowledge integration capacity is in the middle and lower reaches. The widespread knowledge reliance in the electronic information industry is small, the industry is out of the ‘capacity traps’, and diversified development has gradually become a trend. At the same time, cross-domain knowledge reorganization is increasing. The results show that the overall knowledge reliance degree of enterprises applying an exploitative innovation strategy is deeper than that of enterprises applying an exploratory innovation strategy. The knowledge integration capabilities and cross-domain knowledge reorganization capabilities of enterprises applying exploratory innovation strategies are higher than those of enterprises applying exploitative innovation strategy.

Research on the Evaluation and Optimization of Innovation Ability of Private Enterprises Based on DEA Model

As private businesses are an integral part of China’s market economy, it is essential to foster their expansion in a positive manner. Even though some private enterprises have made significant strides in their ability to innovate independently, the majority of them have not yet established an effective endogenous mechanism of independent innovation, and their independent innovation capability and level are insufficient to meet the requirements of economic and social development in the new era. Therefore, it is essential to evaluate the innovation capacity of private businesses. Therefore, the first section of this paper examines the research on measuring enterprise productivity. Second, this paper employs a combination of endogenous dynamics to develop an endogenous dynamics mechanism that encourages innovation in private companies. In addition to employing the DEA model, this paper proposes an evaluation optimization mechanism for assessing the innovation capability of private enterprises in a Chinese province from 2015 to 2021. It concludes that the innovation capability of private enterprises in this province is generally low and that factors such as the number of technical employees, the R&D investment funds of private enterprises, and the number of granted patents have a significant impact.

A Study on Developing Critical Thinking of College Students through CRD in Comprehensive English Class

To cultivate independent innovation capability has become the core goal of the Higher Education in China and also an important indicator to display national strength. The critical thinking ability is the premise and foundation of innovative capability. Therefore, there is a pressing need to to develop critical minds of the college students in daily teaching. This research aims to explore the effective ways of developing critical thinking (CT) competence through collaborative reasoning discussions (CRD). It conducts a detailed analysis of how to integrate the objective of developing CT skills in collaborative reasoning discussions (CRD), so as to provide the reference for the practice of critical thinking research and come up with the proper teaching mode for critical thinking in China.

Driving Sustainable Innovation in New Ventures: A Study Based on the fsQCA Approach

With the external environment becoming increasingly complex and changeable, how we can effectively enhance the innovation of companies in sustainability has become the focus of research. For startups, due to their lack of resources and poor independent innovation capabilities, they need to search for external knowledge from outside to meet their own needs. Therefore, obtaining external knowledge sources and adopting appropriate methods for knowledge search is the key to affecting innovation in sustainability. Moreover, enterprise capability is also an important factor restricting sustainable innovation. In this paper, we construct an integrated framework of resources and capabilities based on theoretical learning and practice between 2018 and 2021, containing technical knowledge, market knowledge, a formal search, an informal search, organizational learning, and strategic flexibility. Taking 450 new ventures in China as the research sample, we adopt the fsQCA method and derive the path driving the sustainable innovation of new ventures. The results show that resources and enterprise capabilities combine to influence sustainable innovation, and there are two configuration paths driving the sustainable innovation of new ventures. In the first pathway, a technical knowledge search, a market knowledge search, organizational learning and strategic flexibility are the core conditions; in the second pathway, a formal search, an informal search, organizational learning, and strategic flexibility are the core conditions.

Impact of dynamic innovation capabilities on organizational agility and performance in saudi public hospitals

Despite the fact that the public healthcare sector has improved significantly, inefficiency persists, and little progress has been made in learning how to solve inefficiencies. Consequently, one of the most important concepts that affect the organizational agility and performance in healthcare are dynamic innovation capabilities. This study aims to investigate the impact of dynamic innovation capabilities on agility and performance in public hospitals in Saudi Arabia. The researcher utilized a dynamic capabilities theory to describe how four important contextual characteristics (sensing capabilities, combination capabilities, networking capabilities and learning capabilities) may affect the agility of healthcare organizations. The population sample for this research included 151 leaders and managers of public hospitals. After responding to the questionnaire, the Statistical Package for Social Science (SPSS) was used to analyse the data. The data collection process involved exploring the independent variables dynamic innovation capabilities that are expected to influence the dependent variable of organizational agility and performance in the public hospitals. The major results of the research showed that there is a positive relationship between the independent variables of the dynamic innovation capabilities and the dependent variables of organizational agility and organizational performance. 
 Keywords: Healthcare Innovation (HCI), Dynamic Innovation Capabilities (DIC), Organizational Agility (OA).

Research on the Influence of Mixed-Ownership Reform on Exploratory Innovation of SOEs: The Mediation Effect of Agency Conflict and Financing Constraint

State-owned enterprises (SOEs) are the leading force in the national economy. The main goal of mixed-ownership reform is to enhance the SOEs’ independent innovation capability, thereby bringing high-quality development of the national economy. Based on the baseline regression and mediation effect model, this study explores the impact of mixed-ownership reform on exploratory innovation of SOEs from ownership structure adjustment and control rights allocation. The results show that the diversity of mixed shareholders, the depth of mixed equity, and the control of mixed equity significantly increase the SOEs’ exploratory innovation investment. And the shareholding ratio of heterogeneous shareholders has a differentiated influence on exploratory innovation. The mediation effect test indicates that the promotion effect of mixed-ownership reform of SOEs in the ownership structure dimension is achieved by reducing the second-type agency conflict and easing the financing constraints. In contrast, the promotion effect in the control rights allocation dimension is achieved by lowering the first-type agency conflict. The findings demonstrate that the mixed-ownership reform have positive effect on the SOEs’ exploratory innovation investment, and the different dimensions of mixed-ownership reform have disparate function routes to exploratory innovation. This study provides guidance for SOEs on how drive national innovation development through mixed-ownership reform. SOEs should guarantee the rights of non-state-owned capital to hold shares and appoint directors, improve internal governance mechanisms, so as to accelerate the development of exploratory innovation activities.

The Impact of Customer Relationship Management on Business Performance : The Mediating Effect of Innovation Capability

The motivation of this research is to assess the relationship existing between Customer Relationship Management (CRM) and Business Performance (BP) alongside the mediating effect of Innovation Capability (IC) as a crucial study in the telecommunication sector in Ghana. The proposed model was blueprinted based on relationship marketing theory, innovation theory, resource-based view theory and related literature of CRM as an independent variable, Business Performance as an independent variable and Innovation Capability as a mediating variable. Data was collected from 579 various departmental heads, branch managers and the permanent staff of six mobile communication companies in Ghana turned out to be analysed by the use of multiple linear regression analysis and Structural Equation Model (SEM). The analysis of the study was enacted by using STATA and AMOS statistical software package to excerpt the results. The results indicated a statistically positive and significant relationship among CRM, innovation capability and business performance. Also, it was found that innovation capability has a significantly positive and partially mediating effect on CRM constructs and business performance.