Innovation Capacity Of Firms Research Articles

Personal income tax and corporate innovation: The key role of inventors’ financial incentives

Despite the importance of the personal income tax around the world, little is known about its impact on innovation. We construct a large database of inventors who patented at publicly listed companies during the 2008–2016 period and exploit the revised Personal Income Tax (PIT) Law of 2011 in China as a quasi-natural experiment to establish the causal effect of the personal income tax on corporate innovation. Using a difference-in-differences identification strategy, we show that a lower personal income tax rate has a significantly positive impact on patent quantity and quality. Further, the revised PIT Law raises the efficiency of R&D activities, induces more explorative innovation, and improves the success rate of patent applications, providing consistent evidence for the intentional effort channel. Moreover, this positive innovation effect is more pronounced in firms with an R&D team that is more sensitive to the salary incentive system, greater innovation dependence, better governance, and firms located in regions with better innovation environments. Taken together, our findings shed light on how inventors and firms respond to decreasing personal income tax rates and confirm that the net return to innovation can be vital to the innovation capacity of firms.

How top leaders’ support affects open government data (OGD)-driven innovation capacity of firms: Based on the TOE framework perspective

Abstract The innovation value of open government data (OGD) drives firms to the participation in OGD-driven innovation. However, to fully excavate the innovation value of OGD for firms, it is essential to explore the factors and mechanisms that affect OGD-driven innovation capacity. On the basis of the technology–organization–environment (TOE) framework, a theoretical model affecting OGD-driven innovation capacity is proposed for analysis by partial least squares structural equation modeling with 236 sample data from China. The results indicate that top leaders’ support positively impacts on OGD-driven innovation capacity in firms. And we also prove that technical competence, organizational arrangement, and innovation support partially mediate the relationship between top leaders’ support and OGD-driven innovation capacity on the basis of the TOE framework. Consequently, the findings provide new research perspectives and practical guidance for promoting OGD-driven innovation capacity in firms.

Analysis of Innovation and Performance Relationships of Companies Serving in the Information and Communication Sector

Objective. Explorer the relationship between strategic orientation, Porter’s generic competitive strategy, innovative capacity of firm, and products technical performance in the Turkish ICT —Information and Communication Technology— sector. Methodology.This study employed a quantitative research design in which 573 questionnaires applied to people who work in various ICT companies located in Turkey. The research data were examined using mediation effect and path analysis techniques. SmartPLS version 3.2 was used for the abovementioned analyses. Results. The findings revealed a positive and significant correlation between strategic orientation with the innovative capacity of firms and the products technical performance. The results also indicate that Porter’s generic competitive strategies play a mediating role in the relationships between strategic orientation, innovative capacity of firms, and products technical performance. Conclusions. The importance of integrating strategic orientation and competitive strategies in order to innovative capacity of firms or products technical performance is concluded, particularly in ICT companies.

Study on the Impact of Service Trade Pilot on Corporate Green Innovation

In this paper, we analyze data for 240 prefecture-level cities in China from 2000 to 2020. We use the Services Trade Pilot (STP) as a quasi-natural experiment and construct a multi-period DID model to investigate the impact of the STP on the green innovation of firms within Chinese cities. The STP has a significant positive effect on the green innovation capacity of firms located in each city. However, the impact of STP on promoting green innovation varies depending on the economic development level and region. It has a more significant effect in cities with higher economic development levels and eastern China, compared to cities with lower economic development levels and in the western region.

Improving the firm innovation capacity through the adoption of standardized innovation management systems: a comparative analysis of the ISO 56002:2019 with the literature on firm innovation capacity

Objective of the study: Investigate how firm innovation capacity can be improved by adopting ISO 56002: 2019.Methodology/approach: The methodology adopted is a comparative analysis of the ISO 56002: 2019 with the literature on firm innovation capacity. The methods employed in the study included a review of the literature on the dynamic capabilities and firm innovation capacity, and qualitative documentary research that consisted of three phases: pre-analysis, organization of documents, and the analysis of results, using information from the texts of the guidelines and processes indicated by ISO 56002: 2019, which additionally involved the ISO 56000 family of standards.Originality/Relevance: The adoption of innovation management standards generates several theoretical challenges when exploring details of their implementation systematically and routinely and empirical challenges such as understanding the advent of ISO 56002: 2019 for innovation management.Main results: Similarities were found between the determinants of innovation capacity and the ISO 56002: 2019 Clauses, as each of the seven factors found a relationship with one or more ISO 56002: 2019 clauses.Theoretical/methodological contributions: The findings obtained can be used by researchers interested in studying different innovation management models, innovation capacity, and, particularly, the dynamics of continuous improvement of the performance of an innovation management system and its interrelationship and interaction with other factors.Social/management contributions: Contrary to common sense in which the normalization of innovation management seems to be counter-intuitive, it is suggested that the adoption of ISO 56002: 2019 allows the innovation process to be managed, systematized, and replicated improving firm innovation capacity.

Drivers of exceptional job creation – a dynamic probit approach using portuguese firm-level data

It is a well-established fact that a small number of firms, known as Gazelles, drive a disproportionately large amount of net job creation. This fact has attracted considerable attention from researchers, who have been focusing on trying to understand what differentiates this type of firms from their slow-growth peers. In this paper, we expand the ongoing survey on Gazelles by focusing on the Portuguese case. Particularly, we examine how is high-growth associated with the firms´ age, access to equity and external finance and the workforce human capital. We also test whether high-growth is linked with the firms´ ability to export and innovate through R&D. In this paper, we also explore whether high-growth episodes display some form of state dependency by adding a dynamic component in the form of the lagged value of the Gazelle status. As for results, we find no supporting evidence in favour of persistency, as past growth events are negatively associated with current growth. This is in line with the recent literature on the topic that points to the lack of persistence in the growth process as a consistent enough result worth of being considered as a stylized fact about Gazelles. Nevertheless, we do find that younger firms are more likely to grow at the fastest pace and that human capital is an important determinant for high-growth. Results also point to the fact that fast-growing firms were not hampered by lack of access to adequate external funding during the period, and that they relied primarily on equity to finance their growing needs. Moreover, we find that, once firms’ experience in the market is considered, being an exporter is a relevant factor when it comes to high-growth events. Similarly, the innovative capacity of firms seems to be crucial in outstanding job creation episodes. Finally, our results suggest that it is an enhanced innovative capacity, the availability of equity, as well as the ability of experienced firms to export that might set the difference between the average growth performance and the exceptional growth performance, pointing to nonlinearities in the growth process of firms.

Knowledge sharing, knowledge leaking in strategic alliances and firm innovation capacity: an empirical study

This study aims to examine the influence of firms’ alliance knowledge on their innovation capacity, under the contingencies of both intentional and unintentional leakage of business-critical knowledge. Based on a survey of 410 staff from 205 allied firms in Tunisia, this study applies the linear regression to investigate the research model. The results show that external knowledge sharing appears to have a positive effect on firms’ innovative capability while high levels of intentional and unintentional knowledge leakage by a focal firms’ employees, turns out to negatively moderate such a relationship. In this paper, actors of focal firm need to distinguish between the firms' critical knowledge, and the one which can be legally shared and exchanged with other partners. Sharing critical knowledge, intentionally or unintentionally, might hurt the focal firms’ innovative capacity. Although the issues of knowledge sharing and innovation have been exhaustively treated in the literature, very little are the research works which have undertaken to study the links between knowledge sharing, knowledge leakage and the firms’ innovation capacity. Thus, this study is designed to foster further enrichment to the literature, by proposing more clear differentiation between unintentional and intentional knowledge leakages and their impact on the firm’s innovation.

Knowledge sharing, knowledge leaking in strategic alliances and firm innovation capacity: an empirical study

This study aims to examine the influence of firms’ alliance knowledge on their innovation capacity, under the contingencies of both intentional and unintentional leakage of business-critical knowledge. Based on a survey of 410 staff from 205 allied firms in Tunisia, this study applies the linear regression to investigate the research model. The results show that external knowledge sharing appears to have a positive effect on firms’ innovative capability while high levels of intentional and unintentional knowledge leakage by a focal firms’ employees, turns out to negatively moderate such a relationship. In this paper, actors of focal firm need to distinguish between the firms' critical knowledge, and the one which can be legally shared and exchanged with other partners. Sharing critical knowledge, intentionally or unintentionally, might hurt the focal firms’ innovative capacity. Although the issues of knowledge sharing and innovation have been exhaustively treated in the literature, very little are the research works which have undertaken to study the links between knowledge sharing, knowledge leakage and the firms’ innovation capacity. Thus, this study is designed to foster further enrichment to the literature, by proposing more clear differentiation between unintentional and intentional knowledge leakages and their impact on the firm’s innovation.

Innovative capacity dynamics: KIBS dimensions

The objective of this paper is to explain how the elements of a conceptual model based on KIBS (Knowledge Intensive Business Services) can be applied in an integrated way to assess the innovative capacity of firms in the service sector. The building of the model is based on a bibliometric analysis of the central theme KIBS, in the databases Scopus and ISI Web of Knowledge (Web of Science). We propose a conceptual model, which brings together several dimensions that have not yet been tested in economic sectors. These dimensions are: KIBS, knowledge creation, knowledge transfer, innovation and innovative capacity. The research presents interesting features from the scientific papers analyzed, highlighting gaps that gave origin to the proposed model.

Corporate governance drivers of firm innovation capacity

AbstractWe investigate the predictive factors of firm innovation capacity (FIC), proxied by intangible assets, as a means towards sustainable competitive advantage in a world of global change and innovation. The primary aim of this paper is to identify the key factors shaping a firm's innovation capacity management style. We use panel data for 1,942 firms (20,171 observations) in Germany, France, Italy, the United Kingdom, United States, and Spain, over the period 1999 to 2014. Our results show that capabilities driven by corporate governance mechanisms currently constitute the pivotal support for firms' innovation capacity (FIC). Our main findings are that corporate governance drivers such as executive incentives (E‐P) and the presence of independent nonexecutive directors (INEDs) have a bearing on FIC. Meanwhile, managerial performance (MP) and institutional shareholder activism (AI) emerge as basic motivational instruments and mechanisms of alignment between firm ownership and control. The influence of incentives and INEDs is found to be negative and that of institutional shareholder activism and MP to be positive. With respect to the business context, we find evidence of higher efficiency in firm disciplinary mechanisms in the Anglo‐American than in the Continental corporate governance model.

Znaczenie e-learningu w procesie zarządzania wiedzą i innowacjami w przedsiębiorstwie

The aim of the article is to present the significance of e-learning in the process of knowledge and innovation management in a firm and the presentation of the findings of empirical research, namely defining the innovation capacity of firms. Enterprises are divided here into those which use e-learning (category A) and those which do not use e-learning (category B). The basic problem presented in the article is the recognition of the innovation capacity gap, which is a difference between the desired innovation potential and the potential the firm actually has. The thesis was assumed that e-learning is a method of improving organisation and management fulfilling relevant cognitive and formal criteria, the method designata. The second thesis contains the claim that goal-specific and methodical acquisition and application of knowledge is increasingly more possible via the Internet with the use of e-learning technology. The set of the key determinants of innovation capacity being the basis of this capacity assessment system was isolated during two-stage own research. In the discussed case, 12 assessment criteria were adopted, to which appropriate assessment weights and scales were assigned, and then a model of enterprise innovation capacity assessment was presented. The empirical part of the article verifies the innovation capacity concept and shows the empirical research findings which were presented in the innovation capacity assessment chart.

Institutional imprinting, entrepreneurial agency, and private firm innovation in transition economies

We study private firm innovation at an advanced stage of institutional transition in Central and Eastern Europe and the Commonwealth of Independent States. We adopt an integrated view, where the institution-based view of strategy is complemented by institutional imprints and entrepreneurial agency to argue that innovation at that stage of transition depends on private firm founding conditions earlier during the transition and on recent strategic initiatives to exploit specific opportunities, improving the innovation capacity of firms. In a ten-country sample of 2322 private firms, we find that firms founded earlier and those of larger size at inception are better at innovation because of imprints favoring network-based approaches. Innovation is even greater when these firms’ top manager has less industry experience, suggesting complementarity between network- and resource-based approaches. Additionally, firms that upgrade their management knowledge and improve their operational efficiency achieve higher innovation, and the effect of the former is augmented with a greater foreign market focus. Our findings also suggest that the role of entrepreneurial agency is stronger than that of institutional imprinting. These results have important implications for the institution-based view of strategy and private firm innovation in transition economies of CEE and CIS.

When not investing in formal R&D, how do they manage innovative capacity? Evidence from Indian manufacturing firms

Drawing upon multiple theories, our research attempts to examine the role of various organisational characteristics that potentially influence distinct strategic choices for management of innovative capacities of firms. We use data from the World Bank with a sample size of 2,206 Indian manufacturing firms across industries collected from 20 industrial hubs. We examine how various organisational characteristics influence strategic choices and subsequently how these strategic choices affect the innovative capabilities of the firm. Results indicated that organisational characteristics play a significant role in its strategic choice for innovation. Our research contributes to the existing discourse on market entry strategies, technology transfer arrangements, and innovation management. Our research inherits a number of limitations such as omitted variables, selective firm level characteristics, mutually exclusive event that we have highlighted at the end before drawing tentative conclusions.

Innovation policies: the national and regional dimensions

The article discusses the article by Lucchese, Nascia and Pianta (this volume). It does so from the standpoint of innovation policy mixes. We highlight four main points. First most discussions on innovation policies underestimate the central role played by public investment banks (with their tools to support firm innovation). Second we have witnessed a massive move from sectoral policies to procedural policies and indirect, criteria based policy instruments (such as tax credits or support to investments in machinery) no longer focused on industries as such but on firm innovation capacity. Third higher education constitutes probably the most important framework condition supporting innovation and this raises important questions on the overall funding of universities and on their role in vocational training. Fourth I argue that the more procedural policies become, the greater the need for place-based policies, discussing thus the importance of regional innovation policies and the role of ‘clusters’, a missing dimension in the overview of Italian policies provided by Lucchese, Nascia and Pianta.

THE DETERMINANTS OF ORGANISATIONAL CREATIVITY METHODS: AN EMPIRICAL STUDY BASED ON A FRENCH SURVEY

This paper analyses the determinants of different organisational techniques dedicated to creativity by stressing the crucial role played by the dynamic innovative capacities of firms in this process. In particular, we show that the impact of creativity methods varies with the type of innovator (product versus process; single versus complex). We use a bivariate probit estimation on a sample of 4,570 manufacturing firms drawn from the 2010 French Community Innovation Surveys (CIS 2010) to study how the innovation profiles of firms impact the propensity to use organisational creativity methods. The estimation results show a strong but differentiated impact of the innovation profiles of firms (products/process, single/complex) on the use of different creativity methods. These empirical results display the accuracy of modern research on the determinants of intra-firm organisation of creativity.

Types of embedded ties in buyer-supplier relationships and their combined effects on innovation performance

Purpose– This paper aims to analyze the impact of three types of embedded ties, namely, specialized complementary resources, idiosyncratic investments and knowledge sharing, on the innovation capacity of firms. It also examines the particularities of the machine-tool industry.Design/methodology/approach– The evaluation of the embedded buyer-supplier ties is based on the potential sources of relational rents proposed by Dyer and Singh (1998). It also draws on Uzzi and Lancaster (2003) and Noordhoffet al.(2011), among others, to discuss the positive and negative aspects of embedded ties. Using data from a survey of 202 European machine-tool firms acting as buyers and sellers, the study proposes and evaluates a structural equation model.Findings– Only knowledge-sharing routines exert a significant positive effect on product innovation performance. Neither an increase in idiosyncratic investments nor in complementary resources and capabilities enhances innovation performance. Moreover, knowledge-sharing routines mediate in the effect of idiosyncratic investments on innovation performance.Research limitations/implications– The machine-tool industry has unique characteristics that make generalization difficult. There is also considerable difficulty associated with testing the interrelations among these embedded ties in greater depth in the long run. It is plausible to consider that these interrelations operate within a gradual process.Originality/value– This research contributes to a better understanding of the role of embedded ties on innovativeness. To the best of the authors’ knowledge, no previous international empirical research has been published analyzing the mediation effects among specialized complementary resources, idiosyncratic investments and knowledge sharing, and their effects on the innovation capacity of firms.

A influência da estrutura sociorrelacional do empreendedor na capacidade inovativa de empresas incubadas de base tecnológica

O objetivo desse trabalho é avaliar as influências das interações sociais dos empreendedores na capacidade de inovação das empresas em uma incubadora de base tecnológica. O processo inovação organizacional pode sofrer influências positivas quando o gestor possui habilidade em unir conhecimentos complementares e entender o processo de interação com outras organizações. Assim, analisou-se a estrutura sociorrelacional dos empreendedores, de maneira a vincular o poder das conexões dos atores à sua capacidade de inovação. Para o alcance dos objetivos propostos foram aplicados dois questionários com 33 empresários de 12 empresas incubadas e 3 diretores da incubadora: um baseado na Pesquisa Nacional de Inovação do Brasil (PINTEC) e outro para mensuração das relações interpessoais Foram obtidos 12 questionários válidos de cada escala. As variáveis de interação social foram correlacionadas com as do processo de inovação. Os resultados demonstram que as interações sociais apresentam relação significativa com (a) número de colaboradores, (b) satisfação com o processo de incubação, (c) compra de serviços de P&D, (d) fontes de informação e (e) inovações organizacionais e de marketing. As limitações deste trabalho constituem-se na amostra reduzida a uma única instituição. Para futuras investigações, sugere-se a utilização de outras medidas de desempenho de inovação, a replicação da pesquisa a outras incubadoras e com outras startups não incubadas.

The Effects of Location on Firm Innovation Capacity

This research seeks to ascertain the extent of the effects of location on the innovation capacities of companies across different industrial sectors. We thus answer the question: Does company location near an urban centre enable innovation capacities? This article argues that company location does wield an effect on innovation capacities, and it is therefore correspondingly relevant to fill this current gap in the literature. Based upon a sample of 884 companies, the econometric models estimated report location as a variable bearing influence on the innovative capacities prevailing in companies. Our results also confirm that the greater the geographic proximity of a company to urban centres, the greater their capacity to innovate. The study also enabled the identification of different levels and types of innovation in accordance with the respective company location.

Human Capital and Innovation Capacity of Firms in Defense and Aviation Industry in Ankara

Elaborating the literature on innovation as the important indicator of industrial competitiveness, this paper suggests that innovation and human capital are related, key issues. In the context of the paper the relationship between human capital and innovation capacity in defense and aviation industry in Ankara which is a special sector among others in many respects is researched. The paper rest on data of field survey realized with SMEs of the sector in Ankara. The results of the study illustrate that defense and aviation industry shows different structure than other sectors in innovation capacity and innovation activities. On the other hand, the paper provides the clues of the positive relationship between innovation activities and human capital in defense and aviation industry.

Capacidade Inovadora em Empresas do Setor de Tecnologia da Informação

Current research characterizes the innovation capacity of firms from the Information Technology sector through an approach based on the information technology sector and identifies factors that define their innovation capacity. The innovation capacity model by Hii and Neely (2000) was employed, with four variables: (1) a culture based on innovation; (2) adequate physical, human and organizational resources; (3) capacity (competence) to coordinate and introduce resources; (4) networking with clients, suppliers and strategic partners. The descriptive and qualitative research studied a micro (Firm Y) and a small (Firm X) software-producing companies and data were analyzed by content analysis. Results show that the two firms featured several variables of the model although with different degrees of perception.