Innovation Input Research Articles

Innovation Input, Enterprise Type and Operating Profit

The national development strategy requires enterprises to take technological innovation as a tool to realize the transformation and upgrading of industrial structure and the transformation of development mode. Technological innovation is not only a weapon for enterprises to improve their competitive strength, but also a key means to stabilize themselves in the complex and severe living environment. High-tech enterprises are the key to improve the national innovation level. The performance of innovation input-output of different types of high-tech enterprises is different, which should be analyzed concretely. In order to explore the strongest driving force of enterprise technological innovation and analyze the effective input mode of enterprise technological innovation output maximization, this paper studies the micro data of enterprises in zhongguancun demonstration zone from 2009 to 2016 as samples. The research finds that: There is a significant positive correlation between innovation input and business profit growth. Second, the type of enterprise plays a moderating role in the relationship between independent innovation input and operating profit, but not in the relationship between government innovation input and operating profit.

Does environmental information disclosure drive corporate sustainable growth? A new insight into U-shaped relationship

Due to the increasing rate of economic development and the increasingly serious problem of environmental degradation, environmental information disclosure has become an important basis for promoting carbon peaking and carbon neutrality, and an important way for enterprises to carry out green governance to achieve sustainable development. This study uses empirical research methods to analyze the relationship between environmental information disclosure and corporate sustainable growth in the context of green governance using panel data of Chinese A-share listed companies in Shanghai and Shenzhen from 2012 to 2021. The empirical tests conclude that there is a U-shaped relationship between environmental information disclosure and corporate sustainable growth, which decreases and then increases, and the U-shaped relationship is transmitted through innovation inputs. The U-shaped relationship between environmental information disclosure and corporate sustainable growth is weakened by firm size and enhanced by equity incentives. In addition, further group analysis reveals that the above U-shaped relationship is more significant in non-state enterprises than in state-owned enterprises.

How can lean tools support the innovation process of SMEs?

PurposeAdopting lean principles can unleash several opportunities for firms seeking to increase the efficiency and effectiveness of their product development (PD) process. This study aims to investigate the implementation paths of lean tools in the innovation process of small and medium-sized enterprises (SMEs).Design/methodology/approachA set of 47 lean tools are identified from the literature and ascribed to the five lean thinking principles, i.e. Value, Map, Flow, Pull and Perfection. Their practical adoption – in terms of “when” and “how” – is then explored in a multiple case study of three SMEs in the manufacturing industry.FindingsSMEs adopt multiple lean tools in different phases of their innovation process. They are still at the beginning of the holistic adoption of lean PD, but some core lean tools, such as A3 reports and visual management, are adopted systematically. Results reveal that specific sets of lean tools and supporting principles are more valuable in certain phases of SMEs innovation process. Specifically, the lean tools concerning the principle of Value and Map can enable the phases of Innovation inputs, Concept development and Solution implementation; the ones ascribed to Flow and Pull the phases of Concept development, Testing and experimentation, and Solution implementation; the Perfection tools to the final phases of Testing and experimentation, Solution implementation and Market introduction.Practical implicationsResults provide a reference for SMEs already adopting lean tools in their production process to be extended to the PD process, especially when the delivery of new products is pivotal. Innovative SMEs could evaluate the introduction of specific lean tools in one or more definite phases of their PD process.Originality/valueThe study contributes to the literature on the complementarity between lean and innovation by studying the context of SMEs with a process perspective, thus unveiling the potential paths of a widespread application of lean innovation in SMEs.

“Risk” or “Opportunity”? The High Sensitivity of Corporate Green Innovation to Environmental Policy Uncertainty: Evidence from China

China is constantly promoting green economic transformation through environmental policy adjustment. However, what impact the uncertainty brought about by environmental policy adjustment will have on corporate green innovation has become an issue worth paying attention to. Based on the option theory, this paper establishes a logical framework to explain the impact of environmental policy uncertainty on corporate green innovation through risk-taking and uses the China environmental policy uncertainty and the data of A-share listed companies for empirical tests. The findings are as follows: in the Chinese institutional context, environmental policy uncertainty enhances corporate green innovation inputs and outputs, and effectively motivates corporations to improve their green innovation levels. The findings are as follows: in the Chinese institutional context, environmental policy uncertainty is perceived by firms as an opportunity rather than a risk, enhancing corporate green innovation inputs and outputs and effectively motivating corporations to improve their green innovation levels. The mechanism test shows that environmental policy uncertainty increases the level of corporate risk taking, thus stimulating green innovation. The mediating effect of corporate risk taking is supported. The heterogeneity analysis verifies the asymmetric influence of environmental policy uncertainty on corporate green innovation. This study reveals an important link between the external institutional environment and corporate green innovation in emerging economies, and the policy implication is that governments need to facilitate the transition to a green economy through sound environmental policy adjustments.

Does China's centralized volume-based drug procurement policy facilitate the transition from imitation to innovation for listed pharmaceutical companies? Empirical tests based on double difference model.

Introduction: The normalized implementation of the centralized volume-based procurement policy for pharmaceuticals is a concerted push for supply-side structural reform of the pharmaceutical industry in China. The impact of the centralized drug procurement policy on pharmaceutical companies' transition from imitation to innovation is investigated to test whether a positive effect occurs in the innovation landscape of the pharmaceutical market. Methods: The double difference method and a series of robustness tests were used based on data from a sample of listed pharmaceutical companies in Shanghai and Shenzhen A-shares between 2015 and 2021. Results: The study found that the centralized drug procurement policy significantly contributed to the increased intensity of innovation input in the Chinese pharmaceutical industry. In terms of regional and firm nature heterogeneity, it was found that firms in the seven provinces belonging to the three economic regions had a better increase in innovation input intensity than other regions. Firms of state-owned nature had a better increase in innovation input intensity than private companies. The mechanism test found a partial mediating effect of nearly 10% for the cost of sales rate on the innovation input intensity of listed companies and a negative mediating effect on corporate operating profit. Discussion: Further research found that the effect of centralized drug procurement policy on the improvement of innovation quality of listed pharmaceutical companies was evident. The innovation development of Chinese pharmaceutical companies no longer focused on the accumulation of innovation quantity.

Optimization Analysis for Innovative Inputs under the Objective Discrepancy between Government and Enterprise

Aiming at the improvement of innovation efficiency after enterprise obtaining subsidies, this paper constructs two-stage innovation benefit model about research and development (R&D) and transformation and achieves Nash equilibrium of innovative inputs to solve the objective discrepancy of innovation between government and enterprise. The main conclusions are as follows: there are three kinds of resource allocation structure in the way of achieving Nash equilibrium. The allocation structure is determined by the sensitivity of benefits (differentiated by social benefits and enterprise benefits) to R&D and transformation. After obtaining subsidies, enterprise optimizes resource allocation and results in crowding out effect, which is the inevitable choice for enterprise to seek benefits. Relative to the enterprise budget, when the proportion of government subsidies is few, the way of subsidies does not affect benefits. When the government invests more subsidies, which are designated for R&D, there is the possibility of dual losses of social benefits and enterprise benefits. The conclusion defines the proportion of subsidies to enterprise budgets so as to differentiate the allocation structure of innovative inputs. The practical significance is to provide a precise method of resource allocation from the microlevel of enterprise project, which alleviates the objective discrepancy between the government and enterprise.

Analysis of the China’s Interprovincial Innovation Connection Network Based on Modified Gravity Model

With the arrival of the era of innovative economy, innovation is of great significance for the development of China, and even the world. Based on statistical data and taking 2009, 2014, and 2019 as node years, this study uses the entropy weight method and a modified gravity model to study the pattern and evolution characteristics of China’s interprovincial innovation network. The results showed that: 1. The weights of innovation output, innovation input, and innovation environment were 0.253, 0.340, and 0.407, respectively. Currently, innovation output is the most representative of the interprovincial innovation connections, but the weight of innovation environment has been increasing year by year, and its importance is constantly highlighted. 2. The overall spatial structure of China’s interprovincial innovation network shows a “core periphery” feature, radiating from coastal provinces such as Jiangsu, Beijing, and Zhejiang to inland provinces, and exhibiting an overall pattern of “strong in the east and weak in the west”. 3. In terms of evolutionary characteristics, Guangdong and Jiangsu ranked in the top two in terms of outward innovation scale from 2009 to 2019. The combined total innovation connections of the top five provinces in 2009, 2014, and 2019 accounted for 70.79%, 64.29%, and 64.24%, respectively. Although the phenomenon of uneven innovation connections exists, it has slowed down. In addition, China’s interprovincial innovation network is gradually becoming enriched, with the most significant change being the number of innovation links, with a gravity level increasing from four in 2009 to twenty-six in 2019. The interprovincial innovation links continue to strengthen, but the focus has not changed significantly; it is still concentrated in the Bohai Rim region and the Yangtze River Delta region. 4. In terms of maximum gravitational lines, Guangdong Province had the highest number of maximum gravitational lines in 2009, 2014, and 2019, with a total of six. The maximum gravitational line change from 2009 to 2019 took place from 2014 to 2019, transitioning from “Jilin-Liaoning” to “Jilin-Heilongjiang”.

Sustainable Enterprise Development in the Manufacturing Sector: Flexible Employment and Innovation in China

Since the COVID-19 outbreak, the scope and market size of flexible employment in sustainable enterprise development have significantly increased worldwide, yet academic literature offer little information about the outcomes and moderators of flexible employment in China. The paper advances current knowledge and empirically addresses this gap by examining the effects of flexible employment on enterprise innovation input and output, with information technology capability and labor regulation as unexplored moderators. Based on data from 1179 manufacturing enterprises in China, this paper uses the OLS method to conduct empirical tests. The results show that (1) flexible employment has positively contributed to sustainable enterprise development by facilitating innovation inputs and outputs; (2) superior enterprise information technology capabilities and strict labor regulations were significant moderating factors in this relationship. The findings provide credible evidence for enterprises to pursue flexible employment as an inexhaustible impetus for sustainable economic and enterprise development.

Can upgrading information infrastructure improve the innovation ability of companies? Empirical evidence from China

The development of information technology has become a new driving force for companies' innovation. Upgrading the information infrastructure lays a foundation for companies to use information technology to innovate; therefore, this study examines the impact of information infrastructure upgrading on companies' innovation ability and the intermediate mechanism. Using a sample of China's listed companies of A-share from 2011 to 2018, this study used the staggered difference-in-difference method to investigate the impact of information infrastructure upgrading on innovation input, innovation output and quality. The results show that upgrading information infrastructure has a ‘double-edged sword’ effect on the innovation ability of companies. Companies' innovation input and output significantly increase, but innovation quality decreases. Additionally, further analysis indicates that financial constraints and managerial myopia are intermediary mechanisms for this effect. Our research results provide theoretical and empirical evidence for companies to enhance their innovation ability.

The double‐edged sword effect of organizational resilience on ESG performance

AbstractBuilding on conservation of resources theory, we construct a dual‐pathway approach which aims to reveal the mixed effects of organizational resilience on environmental, social and corporate governance (ESG) performance. Specifically, this paper argues that organizational resilience will both stimulate innovation input, enhancing ESG performance (positive pathway) and promote strategic change, inhibiting ESG performance (negative pathway). Meanwhile, the indirect effect of organizational resilience on ESG performance via innovation input and strategic change is also moderated by industry concentration, and both indirect effects are stronger when industry concentration is low. Data of Chinese A‐share listed firms from 2010 to 2020 support the proposed theoretical framework. This study provides theoretical and managerial implications for organizational resilience research.

Analyzing the innovation ability of listed companies in the core area of the Huaihai economic zone.

The strategic position of the core area of the Huaihai Economic Zone is very important. The evaluation and analysis of the listed companies' innovation ability in this core area effectively reflect the level of innovation ability of regional enterprises and uncover the differences and influencing factors of the enterprise innovation ability level across different cities and industries; this would provide a reference for further improving the enterprise innovation ability level in the Huaihai Economic Zone. Given this context, data are collected from the CSMAR database on 37 listed companies in eight cities in the Huaihai Economic Zone core area from 2017 to 2021, and an innovation ability evaluation index is constructed from the innovation input and innovation output dimensions of listed companies. The results show that the innovation ability of listed companies in the region is weak; the main reason for the lack of innovation ability of listed companies is the lack of capital investment and talent investment; the innovation primacy of Xuzhou listed enterprises is not high. Finally, in view of the improvement of the innovation ability of listed enterprises in the core field, corresponding suggestions are put forward from the aspects of increasing innovation investment, optimizing the innovation environment and improving the innovation leading force in Xuzhou.

Incentive effect of tax preferences towards the technological innovation of enterprises--Based on China's GEM listed companies.

The long R&D process, the high risk, and the externalities of technological innovation are challenges that enterprises have to meet when making decisions on R&D investment. Governments share this risk with enterprises through preferential tax policies. We summarized China's preferential tax policies related to enterprises and R&D innovation, and used panel data of listed enterprises from 2013 to 2018 in the Growth Enterprises Market (GEM) of the Shenzhen Stock Exchange to explore the incentive effects of current tax policies on the R&D innovation of enterprises. Through empirical analysis, we found that tax incentives significantly motivate R&D innovation input and promote output. In addition, we found that the income tax incentives are greater than that of the circulation tax, since the profitability of enterprise has a positive correlation with R&D investment. Meanwhile, the size of the enterprise is negatively correlated with the intensity of R&D investment.

How does supply chain transparency affect firm innovation?

The supply chain is an important perspective to understand the company’s business mode and strategic decision-making. It is of great significance to study how supply chain information disclosure affects innovation. Based on the panel data of A-share listed companies in Shanghai and Shenzhen, this paper empirically examines the influence of supply chain transparency on enterprise innovation level. It is found that supply chain transparency significantly reduces the innovation performance of enterprises. This conclusion still exists under a series of robustness tests. Among them, the political correlation characteristics of enterprises and the scale of capital investment play an important role in regulating. Further analysis of the mechanism shows that the change of innovation input and its influence on the quality of internal control play an important role in mediating. The results of this paper not only enrich the research results of supply chain transparency on the economic behavior of enterprises, but also have a certain practical significance for scientific evaluation of the significant impact of supply chain transparency on the innovation ability of enterprises.

Business environment, technological innovation and government intervention: influences on high-quality economic development

PurposeThis paper aims to explore the impact of business environment on high-quality economic development (HQED) and clarify the role of technological innovation and government intervention in this relationship.Design/methodology/approachBased on China’s provincial panel data from 2010 to 2019, this paper adopts the system generalized method of moments to empirically analyze the influential mechanism and heterogeneity of the business environment on HQED. Furthermore, the authors construct a dynamic panel threshold model to test the threshold effect of government intervention.FindingsThe results indicate that optimizing the business environment can significantly promote HQED, technological innovation plays a partial mediating role in the impact of business environment on HQED, mainly by enhancing the intensity of innovation input and increasing innovation output to facilitate HQED. Government intervention can regulate the impact of business environment on HQED, and there is a double threshold effect, and it possesses an inverted U-shaped feature of first promoting and then inhibiting.Originality/valueThis paper examines the influence path of business environment on HQED from the perspective of technological innovation and government intervention, filling the gap in the study of provincial business environment. Moreover, the conclusions furnish a theoretical basis for optimizing the business environment and facilitating the HQED in China.

Co-creating community-led frugal innovation: An adapted Quadruple Helix?

Frugal innovation often requires cooperation among heterogeneous actors with diverse values, capabilities, interests, and norms. This qualitative, action-oriented case study presents the dynamics and interplay among the quadruple helix actors for community-led frugal innovation, thereby emphasizing the role of academia in its process. The findings of this study depict that informal actors can bring significant innovative inputs into the innovation system if the right kind of mechanisms are employed and trust-building exercises are undertaken. In addition, this study stimulates one to reflect on the challenges and complexities faced by academicians in publicly funded research institutions, especially for bringing informal actors into the innovation system and creating shared values. The quadruple helix model has been primarily discussed; most discussions involve advanced country settings. This study, conducted in a developing country setting, demonstrates that an intermediary actor linked to (but not identical to) the existing academia can significantly shape cooperation and its related activities in the desired direction. The findings indicate the necessity for adapting existing behavioural norms or institutional rigidities that exist among academic institutions if one wishes to galvanize the rich potential of community-led frugal innovations in India. Policy recommendations are discussed to create a conducive environment for such innovations.

Internet development and regional innovation efficiency: the moderating effect of intellectual property protection

ABSTRACT Promoting innovation is a critical route to high-quality economic development. The objective of this study is to analyse the impact of internet development (INT) on regional innovation efficiency (RIE). Using the super-Epsilon-based measure model under metafrontier (M-Super-EBM), the RIE is evaluated based on panel data of 284 Chinese cities from 2010 to 2018. On this basis, we adopt a two-way fixed effect model to examine the role of INT on RIE. Additionally, we further construct a moderating model to probe the effect of intellectual property protection (IPP) in the influencing mechanism of INT on RIE. The empirical results show that China’s RIE displayed an upward trend during 2010–2018. Cities in coastal provinces had the largest RIE. The development of the internet significantly improves China’s RIE, and the promotion effect is mainly achieved by increasing innovative input and output. The synergetic effect of INT and IPP on RIE is significantly positive. Moreover, a U-shaped relationship is also validated between IPP and RIE. The estimated results remain valid after a series of robust checks. Hence, it is of immense significance to accelerate the internet application and strengthen the IPP intensity for the improvement of innovation efficiency.

High-Tech Accreditation, Technology Spillover, and Innovation

Innovation is the foundation of business survival. The two primary factors that impede enterprise innovation are funding limitations and technology spillover. China’s continuous qualification recognition of high-tech enterprises provides financial subsidies to supported enterprises, thereby resolving a portion of the problem of financing constraints. This paper establishes the duopoly Cournot competition model and incorporates technology spillover into the research process of government subsidies and enterprise innovation R&D. It has been discovered that government subsidies can increase the innovation input of enterprises in proportion to the magnitude of the technology spillover effect and the marginal technology efficiency. In addition, utilizing China’s A-share listed companies in Shandong Province from 2015 to 2021 as the research object, this paper develops a fixed-effect model to conduct an empirical test of the specific impact of high-tech enterprise qualification recognition in Shandong Province on enterprise innovation. The test results indicate that recognizing the qualifications of high-tech businesses is advantageous for boosting the innovation level of businesses. Nevertheless, this type of industrial policy has a more evident stimulative effect on catering innovation.

Research on the influence of enterprise innovation input on stock returns in short- and long-term markets-- Based on the data of listed companies in China’s science and technology sector

Based on the data of listed companies in China's science and technology sector from 2014 to 2021, this paper studies the short-term market and long-term market performance of innovation input of these companies. The findings are as follows: (1) In the short-term market, innovation input and stock return are negatively correlated, which may be related to the lagging effect of innovation input on the company. After the lagging of innovation input, the correlation becomes positive and significant. This conclusion is still valid after the change of explanatory variables;(2) In the long-term market, enterprise innovation input and stock return generally show positive correlation, but it may also be affected by the bottleneck period of R&D, resulting in the first decrease and then increase, and this phenomenon is still valid after the change of explanatory variables.

Measuring the Impact of R&D&I Subsidies on Innovative Inputs and Outputs in Polish Manufacturing Firms

This research investigates the impact of R&D and innovation (R&D&I) subsidies on the innovative inputs and outputs of Polish manufacturing companies. We combine unique survey data that incorporates a representative sample of Polish manufacturing companies with data on the state aid from the State Aid Data Sharing System (SUDOP). Our results confirm the positive role of R&D&I subsidies on the likelihood of applying for a patent, filing for intellectual property protection for utility models, industrial designs, trademark registrations, and the introduction of process innovations, consistent with the existing literature. However, the results also indicate an insignificant impact of the intervention on firms’ R&D expenditures and product innovations. The extension of the analysis with the moderating effects of internal factors that affect the firms’ innovative behavior indicates that the R&D&I subsidies for exporters lead to the crowding-out effect and for non-exporters generate additional R&D expenditures and increase the propensity for R&D cooperation. Furthermore, R&D&I support for enterprises with foreign ownership reduces their propensity for patent applications and product innovations. In contrast, for beneficiaries with a predominance of domestic capital, it positively impacts many output variables.

Characteristics and influencing factors of economic resilience in industrial parks

Economic resilience has been a popular issue in recent years. Along with the consideration of severe shocks caused by the financial crisis of 2007–2008 and globalization of industry and the upgradation of knowledge and technology, economic resilience has brought in much attention. About 50 years of development of planned industrial parks in Taiwan has resulted in considerable economic scale; however, due to changes in interior demands and the exterior environment with time, rearrangement and industrial transformation have made the development of industrial parks difficult. Accordingly, the resilience of planned industrial parks in Taiwan, when encountering a variety of shocks, need to be reviewed and examined. This study selects 12 planned industrial parks from Tainan and Kaohsiung, in southern Taiwan, as subjects and had a complete understanding of economic resilience and factors that influence economic resilience from literature reviews. Four quadrant model constituted by the indicators of economic resistance and recovery as well as discriminant analysis are implemented to analyze the resilience of industrial parks with different backgrounds and various shocks, as well as the elements influencing the resilience. Analytical results indicate that planned industrial parks with industrial structures based on specialized variety or with a steady input of knowledge and innovation to research and development benefited the industrial parks in better resilience, while complete infrastructure planning and governance are fundamental conditions for resilience.