Innovation Input Research Articles

ESG performance and firms' innovation efficiency: the moderating role of state-owned firms and regional market development

PurposeAlthough the impact of environmental, social and governance (ESG) on firms' innovation has attracted attention, the existing research findings diverge. The authors believe that failure to consider both innovation input and output is an important reason for the divergence of conclusions in the extant literature when discussing the impact of ESG and firm innovation. Thus, based on signaling theory, this study aims to reconcile these divergent findings by examining the impact of ESG performance on firms' innovation efficiency.Design/methodology/approachTo seek empirical evidence to support the authors’ theoretical view, the authors conduct an empirical test based on the Tobit model using 8 years of data from Chinese listed companies.FindingsAlthough ESG performance effectively improves firms' innovation efficiency, the institutional-level signaling environment (including state-owned firms and regional market development) weakens the positive effect of ESG performance on firms' innovation efficiency. Further tests suggest that financing constraints partially mediate the relationship between ESG performance and firms' innovation efficiency.Originality/valueBy systematically revealing whether, how and under what circumstances ESG performance improves firms' innovation advantages, this study bridges the gap in the existing literature and highlights important implications to suggest how firms can better capture the value associated with ESG.

Spatio-temporal characteristics of land ecological security and analysis of influencing factors in cities of major grain-producing regions of China

The increasingly critical ecological environment in the major grain-producing regions (MGPRs) of China has attracted widespread attention, but there is limited research at the city level. This study presented a land ecological security (LES) evaluation index system based on the pressure, state, response (PSR) model. It used the panel entropy weight method, kernel density function method, Moran index model, and spatial econometric model to measure LES of 158 cities in MGPRs from 2005 to 2020, and analyzed the spatial and temporal evolutionary trends, spatial divergence characteristics, and influencing factors of LES. The results are as follows. (1) From 2005 to 2020, the overall trend of urban LES level was rising, but it experienced an N-shape fluctuation trajectory of “rise-fall-rise”. The state index and response index were on an upward trend, while the pressure index had a certain degree of decline. (2) LES was characterized by the spatial distribution of “high in the north and low in the south” and “high in the east and low in the west”, while spatial heterogeneity became increasingly significant, with greater spatial differences within the northern cities and within the central cities. (3) There was a significant spatial spillover effect of LES, but the effect decreased with the expansion of spatial divergence. The spatial association patterns mainly exhibited “high-high” (HH) and “low-low” (LL) agglomerations. (4) The response layer was the main obstacle subsystem, while green space per capita, environmental governance investment, precipitation per capita, arable land per capita, and agricultural development were the main obstacle factors. (5) Economic development, fiscal decentralization, industrial advancement, and innovation input were the positive factors of LES, whereas financial development and industrial development were the negative factors of LES. The findings provide effective policy reference for the sustainable utilization of urban land resources.

Innovation performance and its determinants: what does it take to succeed?

PurposeThis paper aims to depart from the national innovation system (NIS) arguments that countries' institutional arrangements and performance result from various complementary factors that generate innovative activities and products within economies.Design/methodology/approachTo further explore these dimensions, the main objective of this paper is to address the determinants of global heterogeneity in the innovation outcomes of the nations. Thus, the research employs descriptive data analysis and multivariate regression models, using data from the Global Innovation Index (GII) to analyze innovation systems cross-regionally concerning institutional arrangements and performance. Since 2013, the GII, has annually measured and ranked the innovation inputs and outputs of more than a hundred countries based on a comprehensive and sophisticated approach and a multidimensional perspective.FindingsThe author found the empirical results remarkably interesting in many respects. The different indexes of innovation inputs affect the country's performance level, but not all show a statistically significant impact on innovation outputs. Institutions and infrastructure indexes do not affect the innovative performance of the economies. The main determinants of innovation performance worldwide are business sophistication, human capital & research (HC&R) and market sophistication. In short, the research presents an original contribution, mainly because it explores different views on NIS disparities worldwide, using complementary methodological strategies and based on comprehensive data on innovative inputs and outputs in the countries.Originality/valueThe findings add new evidence-based knowledge on the determinants of innovation performance in different realities, such as political, economic and administrative. These realities formulate innovation policies and implement them worldwide.

Research on the mechanism of digital economy to enhance the innovation efficiency of high-tech industry in the context of big data

Abstract Investigating how the digital economy can improve the innovation efficiency of the high-tech industry in the context of big data. This study uses a three-stage DEA technique to measure the innovation efficiency of high-tech businesses. The index system is created by selecting innovation inputs and outputs and adjusting them with exogenous environmental factors. A thorough and organized method for evaluating digital economy indices has been developed, and weights are allocated to the indexes based on spatial autocorrelation. In the end, the Tobit model is utilized to investigate the impact of the digital economy’s growth on the innovation capacity of high-tech industries. The innovation efficiency of high-tech sectors is positively influenced by the digital economy index, increasing by 0.2102% for every 1% increase. The digital infrastructure regression coefficients for the eastern, central, and western areas are 0.00045, -0.0015, and 0.00076, respectively.

Hedge fund ownership and the innovation of high-tech firms: Evidence from the Science and technology innovation board in China

High-tech firms stand apart from traditional firms due to their emphasis on innovation. This paper provides empirical evidence indicating new mechanisms through which hedge fund holdings enhances innovation of high-tech firms listed on the Science and Technology Innovation Board in China. Different from that of traditional firms, this paper finds that hedge fund ownership enhances innovation output by increasing innovation input and improving innovation efficiency of high-tech firms in China. The positive relationship is especially evident among firms with long-term holdings by hedge funds, low agency costs, a high degree of equity checks and balances, and those that are privately held enterprises.

Can digital transformation improve the quality of enterprise innovation in China?

PurposeDigital transformation and innovation-driven development have become an international consensus. The purpose of this paper is to examine the effects of relationships, mechanisms and economic consequences between digital transformation and enterprise innovation quality in order to provide a benchmark for developing countries to implement digital transformation strategies and innovation-driven strategies and provide a major support for economic recovery in the post-coronavirus disease 2019 (COVID-19) era.Design/methodology/approachUsing microdata from A-share listed enterprises in Shanghai and Shenzhen from 2010 to 2021, this study examines the relationship between digital transformation and enterprise innovation quality and further reveals the internal logic and economic consequences of digital transformation to improve enterprise innovation quality through the mediating effect and moderating effect models.FindingsThe results demonstrate that digital transformation is beneficial for improving enterprise innovation quality. The heterogeneity test demonstrates that digital transformation has a larger effect on improving enterprise innovation quality in non-state-owned enterprises and eastern enterprises in China. The mechanism test demonstrates that digital transformation can improve enterprise innovation quality by improving internal control quality and analyst attention. Furthermore, with the increase in enterprise innovation inputs, digital transformation plays a significantly stronger role in improving enterprise innovation quality. The extended analysis demonstrates that digital transformation can significantly improve enterprise financial performance by improving innovation quality.Research limitations/implicationsFirst, the construction of the core explanatory variable digital transformation index in this study is based on the Python data analysis software, which calculates the frequency of digital transformation in the text of the business situation analysis portion of the annual report of the listed companies and then obtains the degree of digital transformation of the company in this year. There may be some deviation from the degree of digital transformation in the actual production and operation of enterprises. Second, in addition to internal control quality and analyst attention, are there other mediating mechanisms for the impact of digital transformation on the quality of enterprise innovation? Third, whether the moderating effect of innovation input on digital transformation and innovation quality is related to human capital factors of the research and development (R&D) team, such as the technical background of R&D personnel, etc.Originality/valueThis study enriches the relevant theories of digital transformation and broadens the research boundaries of digital transformation and enterprise innovation. This study's result provides an empirical basis for enterprises to improve enterprise innovation quality and financial performance from the perspective of digital transformation at the micro level and points out specific practical directions, combining theory with practice.

The Impact of Green Innovation Capacity on Urban Economic Resilience: Evidence from China’s Yangtze River Delta Region

Urban green innovation plays a crucial role in achieving sustainable urban economic development, and urban economic resilience is an important manifestation of urban economic development. This prese nt study aims to investigate how green innovation contributes to urban economies’ resilience, which is essential for long-term urban agglomeration expansion and sustainable economic development. To decrease subjectivity and achieve comprehensive evaluation, this study first constructs an index system for evaluating green innovation capability on urban economic resilience, which contains 21 indicators in three areas, including innovation input, innovation output, and green innovation foundation, and the performs a scientific evaluation using the TOPSIS method. On this basis, using the Super-SBM model, the green innovation efficiency value of cities in the Yangtze River Delta (YRD) is calculated. Finally, ArcGIS 10.8 software is used to classify the economic resilience of the 26 cities in the YRD city cluster and analyze the spatial layout characteristics of urban economic resilience. The results show that: (1) the decision evaluation model used in this study is stable and effective, and it can effectively address the issues of subjective assessment processes and information redundancy; (2) green innovation capacity has a positive contribution to urban economic resilience, and its contribution is more significant for cities with strong economic strength; and (3) the green innovation capacity of the YRD city cluster is unevenly distributed, with Shanghai, Suzhou, Hangzhou, and Nanjing having high levels of green innovation capacity and strong urban economic resilience, thus forming the core area of cities radiating outward, showing a “core-edge” spatially. Finally, suggestions for improving the overall economic resilience of urban agglomerations are provided.

How does digital empowerment affect venture capital: an empirical study of Chinese manufacturing listed corporations in Growth Enterprise Market

ABSTRACT Amid a growing interest in venture capital research, little attention has been given to exploring the influence of digital empowerment on this domain. Particularly in the midst of heightened uncertainty factors contributing to global financial fragility and instances of capital retreat, these matters demand comprehensive examination. Drawing on resource-based theory and information asymmetry theory, this study collected extensive data from 1,985 Chinese manufacturing listed enterprises in the Growth Enterprise Market (GEM) from 2016 to 2020. Leveraging the hierarchical regression technique, the research delved into the intricate relationship between digital empowerment and enterprise venture capital, while also considering the mediating role of innovation input and the moderating effect of government subsidies. The findings demonstrate that digital empowerment and innovation input yield a significantly positive impact on venture capital. Moreover, innovation input partially mediates the connection between digital empowerment and venture capital. Furthermore, government subsidies positively moderate the relationship between digital empowerment and innovation input. These research conclusions not only contribute to the advancement of venture capital theory but also furnish a theoretical foundation for enterprises seeking to secure additional venture capital and for governments to promote innovation and entrepreneurship strategies.

Bank price competition and enterprise innovation——Based on empirical evidence of Chinese A-share listed companies

This paper mainly discusses the influence and mechanism of bank price competition on corporate innovation activities. Taking China's A-share listed companies from 2013 to 2021 as a sample and constructing a Lerner index to measure bank price competition based on the data of 130 banks in China, a fixed effect model is used to analyze the influence of bank price competition on enterprise innovation. At the same time, the influence mechanism of bank price competition on enterprise innovation activities is analyzed from the perspectives of financing cost, credit availability and bank risk preference. The study found that the deepening of bank price competition can effectively increase the R&D investment of enterprises and promote the innovation output of enterprises. At the enterprise level, bank price competition can reduce the financing cost of enterprises and improve the availability of credit for enterprises, thereby alleviating the financing constraints faced by enterprises, encouraging enterprises to enter the innovation sector, and increasing R&D investment and innovation output. Moreover, bank competition can also improve the risk preference of banks so that innovative projects and enterprises with higher risks can obtain more credit support. In addition, the study also found that bank price competition can significantly promote the innovation input and output of private enterprises and small and medium-sized enterprises, but the promotion effect on the innovation input and output of state-owned enterprises and large enterprises is not obvious.

Correlation between Innovation Inputs and the economic growth of countries

Correlation between Innovation Inputs and the economic growth of countries

The characteristics and countermeasures of coupled and coordinated development between technological innovation and ecological environment in China's Gansu province.

The investigation of the coupling and coordination association between scientific and technological innovation and the eco-environmental system is of vital practical significance for promoting the high-quality economic development of China's Gansu province. The evaluation index system is constructed based on the explanation of the coupling and coordination mechanism of a "Binary system". Subsequently, a comprehensive evaluation model is developed using the entropy method, whereas the coupling coordination relationship between "Binary systems" is analyzed in the context of the coupling coordination degree model. The study findings indicate that the innovation drive has become the primary driving force that leads the high-quality economic development in Gansu province. Furthermore, the comprehensive development level and coupling and coordination degree of all systems in Gansu province demonstrate a sound trend of steadily rising. Additionally, there is an issue of uncoordinated development between scientific and technological innovation and eco-environment systems in Gansu province. Thus, this research study proposes certain policy suggestions, such as optimizing the environment of Sci-tech innovation, insisting on the priority of ecology, increasing the input of Sci-tech innovation, and building up a contingent of talents.

Family Ownership After Going Public: Exploring Nonlinear Effect on Innovation Inputs and the Role of Institutional Investors

Understanding the drivers of innovation in family firms is essential for their survival. While previous studies have mainly investigated innovation behaviours in private or public family firms, we focus on their R&D investment in the year following an IPO. Observing family firms in this context is crucial because it allows to analyse their propensity to innovate when financing constraints are relaxed. This work aims to investigate whether a relationship exists between R&D expenditures and family ownership in the setting of Initial Public Offerings (IPOs). Using a sample of IPOs in the period 2013–2018 by 132 French and Italian family and non-family firms, results reveal the existence of a U-shaped relationship in this regard. In addition, the curvilinear relationship is positively influenced by institutional investors. This study contributes to the debate around family firms’ innovation propensity, as well as to the literature on the heterogeneity among family firms.

Analysis of Regional Division of Labor in Value Chain Patterns and Driving Factors in the Yangtze River Delta Region Using the Electronic Information Manufacturing Industry as an Example

The electronic information manufacturing industry is characterized by a very significant intra-product specialization and can display the characteristics of a regional division of labor. Looking at the existing literature, most studies have mainly examined the position of different countries in the spatial division of labor from the perspective of global value chains, with fewer empirical analyses at the city level or regional scale. Furthermore, deepening the regional division of labor in value chains is an effective way to promote regional industrial synergy and high-quality economic development. Based on the number of listed enterprises and the total number of parent–subsidiary investment connections in the electronic information manufacturing industry, this study reveals the characteristics of the deeper regional division of labor among cities by analyzing the Value Chain Division Index (VCDI). Subsequently, we used the fractional response regression model to analyze influencing factors. We found that, firstly, the core cities are dominated by the production of high-value parts, while the peripheral cities are mainly dominated by the production of middle- and low-value parts. Specifically, northern Anhui, northern Jiangsu, and southwestern Zhejiang are obviously in a disadvantaged position regarding the regional division of labor in the value chain. In the production of middle- and high-value parts, there are close investment connections between the core cities, and only a few peripheral cities maintain a certain degree of connection with the core cities. Therefore, there is a need to further strengthen industrial investment connections between the core and peripheral cities. Secondly, the regional division of labor in the value chain in the Yangtze River Delta region shows the following characteristic: a “one super, many strong” pattern. That is to say, the VCDI value of Shanghai is the highest, and the VCDI value of Suzhou, Ningbo, and Wuxi is also relatively high, while the VCDI value of peripheral cities is relatively low. Furthermore, we found that there is a relatively obvious regional division of labor among cities, but the core cities have strong homogeneity in the high-value areas. Therefore, it is necessary to further strengthen the dislocation of competition between core cities. Thirdly, the model results show that rising land prices and construction in the development zones at the provincial and national levels both have significant contributing effects on the enhancement of the regional division of labor in the value chain, while the innovation inputs, innovation outputs, and their interaction terms show a negative effect. There is a need to further enhance the efficiency of innovation transformation and improve the quality of innovation transformation in order to promote upgrading in the value chain.

Agglomeration of the Digital Services Industry and Digital Transformation: Evidence from China

ABSTRACT This study examines the relationship between the agglomeration of the digital service industry (ADS) and listed companies’ digital transformation in China. We analyze panel data from 282 prefecture-level cities and listed companies for 2010–2019. The results reveal that ADS has an indirect positive effect on listed companies’ digital transformation by improving firms’ innovation inputs and decreasing their operating costs. These findings hold after using instrumental variables to solve the endogeneity problem and conducting robustness tests. Digital services is the only producer service industry whose agglomeration influences listed companies’ digital transformation. The impact of ADS on digital transformation is strongest in manufacturing, non-state-owned, and small and medium-sized enterprises.

Evaluating innovative factors of the global innovation index: A panel data approach

This study examines the connection between innovation inputs, outputs, and efficiency. Additionally, to establish the connections between the global innovation mechanisms. Furthermore, a closer look at how factors are distinguished and found to be significant based on a country's level of income. To develop the technique in this quantitative research, we utilized panel data from 105 countries and gathered data from the GII, WIPO, and WDI. In light of this, panel-corrected standard errors with robust regression and panel quantile regression techniques were used to obtain the long-run estimations. There were also two methods used to compare the results: two-stage least squares for robustness endogeneity and augmented mean group for cross-section dependency. This research demonstrates that the method is reliable and suggests that countries are open to expansion in innovation inputs, outputs, and efficiency. It also suggests that countries should record problems associated with how well innovations are implemented. In addition, a proper evaluation must be carried out, which includes the development of innovation strategies that consider the varying economic situations of the countries included in this research. Performance in innovation is essential for global success, and this paper investigates the relationship between GII, input, output, and efficiency with creative performance.

Resource industry dependence and high-quality economic development of Chinese style: Reexamining the effect of the “Resource Curse”

In resource-dependent regions, the meaning of high-quality economic development has yet to be clarified by published research, despite substantial scholarly interest in the topic. With the help of the economic development index developed by the Chinese government, this paper accurately measures high-quality economic development in 30 provinces in China and investigates how resource dependence and government governance capability affect regional high-quality economic development. Research has found that resource industry dependence has a significant inhibitory effect on high-quality economic development. Additionally, the analysis of the mechanisms revealed that resource industry dependence reduces high-quality economic development through a series of effects including crowding out innovation, weakening coordination, lagging green development, hindering global openness, and sharing in weakening. Further research has revealed that government governance capacity weakens the impact of resource industry dependence on high-quality economic development. A detailed analysis of three subsystem indicators of government governance capacity, namely policy planning, capability commitment, and performance assessment, indicates that they all have a weakening effect. To this end, the paper proposes policy recommendations, including increasing innovation inputs, advancing industrial restructuring, promoting green development, enhancing marketization levels, and constructing a diversified employment system. These measures aim to transform resource disadvantages into resource advantages and facilitate high-quality economic development.

Research on the Ecological Innovation Efficiency of the Zhongyuan Urban Agglomeration: Measurement, Evaluation and Optimization

The objective of carbon peaking and carbon neutralization put forward higher requirements for the intensive use of energy and resources, and green and efficient development has become an essential part of high-quality development. Ecological innovation focuses on resource preservation and application and the improvement of the ecological environment while driving economic development through innovation; therefore, ecological innovation has become a solution to balance resource conservation, environmental protection, and efficient development effectively and has received widespread attention. This research takes 30 cities of the Zhongyuan Urban Agglomeration as research subjects and constructs an urban agglomeration’s evaluation index system to measure ecological innovation efficiency. By utilizing the entropy-weight TOPSIS model and super-efficiency SBM-DEA model, the ecological innovation performance of the Zhongyuan Urban Agglomeration is measured and evaluated from 2006 to 2020; then, redundancy analysis is applied to analyze the correlation between ecological innovation inputs and outputs. The final results illustrate that: (1) The overall ecological innovation performance level of the Zhongyuan urban agglomeration is relatively low, and the ecological innovation ability of some cities is inadequate; (2) From the temporal perspective, the temporal evolution of the Zhongyuan urban agglomeration showed a less obvious U-shaped trend, and the innovation output benefits of the core development region are considerably superior to those of the co-development region, and the ecological innovation transformation efficiency of the Zhongyuan urban agglomeration shows a fluctuating trend; (3) From the spatial perspective, there are eight cities at the “high output and high efficiency” level but 19 cities at the “low output and low efficiency” level, and the ecological innovation performance of most cities in the north is obviously better than that in the south from the perspective of spatial distribution. Therefore, to further improve the ecological innovation ability and performance of the Zhongyuan urban agglomeration, relevant policies should be fully practiced and implemented, such as building Nanyang as a sub-central city, constructing an efficient ecological economy demonstration area in the south of Henan province, effectively integrating Zhengzhou and Kaifeng, and the innovative radiation of Zhengzhou as a national central city to other cities.

Innovation Potential in the Western Balkans Relative to the European Union and Selected Neighbouring Countries

Although Western Balkan economies are still on the list of EU candidates or potential candidate countries, they do have some integration with EU economies. The EU is the leading trading partner of the Western Balkans and is one of the top destinations for the fl ow of people. The Western Balkan economies have been trying to address their populations’ ongoing emigration (the so-called “brain drain” phenomenon) by implementing targeted economic policies. Since one of the main contributors to economic growth is the ability to create innovation, it is crucial to building innovation potential. The main challenge for innovation policy is to provide a favourable environment for entrepreneurship and economic growth to create jobs. Thus, this paper aims to examine innovation potential – an innovation input – as it creates the conditions needed for innovation development. The results of analysing the data (on research and development spending, human resources, an environment friendly to innovation, and intellectual property rights) indicate that the Western Balkan countries are lagging behind the EU in many aspects of innovation potential, so they should still develop their strategies towards creating higher innovation potential. Thus, they will be able to have a higher level of innovation and, as a result, be more competitive in economic terms.

Does energy-consuming right trading have double dividend effect on firm's economic performance and carbon emission?

Whether the market-based environmental regulation policy can achieve a win-win situation of economic growth and carbon emission reduction has always been an academic controversial topic. Taking the pilot policy of energy-consuming right trading (ECRT) of China in 2016 as a quasi-natural experiment, this paper uses the difference-in-differences (DID) method to investigate the policy impact of ECRT on the economic performance and carbon emissions of firms. An economy-environment composite index has been conducted for testing double dividend effect of ECRT. The empirical results show that ECRT can improve the economic performance and reduce carbon emissions of firms significantly. The double dividend effect is more significant in high-carbon emission firms, non-state-owned firms and prior to COVID-19 pandemic. ECRT policy has Porter innovation mechanism, in which innovation input is the main contribution of economic dividend effect and green technology innovation is the main contribution of environmental dividend effect. The conclusions of this paper provide empirical evidence and policy implications for realizing the common development of economy and environment, accelerating the process of emission reduction and building a national energy trading market.

Shades of grey: Risk-related agency conflicts and corporate innovation

We investigate how risk-related agency conflicts affect valuable risky investments. Using an exogenous negative shock to shareholders' litigation rights from an unanticipated court ruling that exacerbates risk-related agency conflicts by shielding managers from shareholders' governance through litigation, we show that innovation inputs and quality decline significantly for treated firms. Small firms lacking counteracting governance mechanisms, such as institutional investors, suffer significantly, while large firms with high institutional investments emerge unscathed. Our results are consistent with theories that predict managerial incentives for ‘playing safe’ lead to value-destroying and risk-reducing actions, especially when counteracting incentive mechanisms are muted.