Innovation Processes In Firms Research Articles

Capital tax incentives and firm innovation: evidence from accelerated depreciation in China

PurposeThis study aims to investigate the influence and impact mechanism of capital tax incentives on firm innovation.Design/methodology/approachThis study employs the difference-in-differences (DID) method, in conjunction with the exogenous impact of accelerated depreciation (AD) pilot policy. This study selects Chinese listed companies from 2010 to 2017 as the research sample.FindingsFirstly, AD exerts a substantial positive effect on the quantity and quality of the innovation output of firms, and the positive impact results primarily from heightened investment in fixed assets, particularly, machinery and equipment. Secondly, the influence of the policy is pronounced in non-state-owned enterprises, mature enterprises, less capital-intensive enterprises and non-high-tech industries, which all exhibit strong innovation incentives. Lastly, the tax incentive policy significantly stimulates firm innovation in the short term, but its long-term impact on innovation incentives lacks statistical significance.Originality/valueThis study highlights the significance of capital tax incentives in facilitating the innovation process in firms.

How female entrepreneurship may boost business innovation and internationalization

AbstractThis study sought to analyze the role female entrepreneurship plays in the internationalization and innovation process of firms. Additionally, this study aims to contribute to a better understanding of how the countries of Europe and Central Asia are grouped in terms of female entrepreneurship. Our analysis used secondary data collected from the Enterprise Surveys—The World Bank database to which multivariate statistical analysis were applied. The results suggest a non‐significant statistical relationship between female entrepreneurship and internationalization, which may be explained by high capital access constraints female entrepreneurs face. There are cultural and social barriers that affect the decision of women entrepreneurs to internationalize. Our results also show interdependence between internationalization and innovation. The results also suggest that the countries of Europe and Central Asia can be divided into two clusters. The difference between the two clusters can be justified by the role of women in the countries concerned. The originality of this article is related to the analysis of the possible contribution of women entrepreneurship to the internationalization of firms, which is still an understudied area, because of the exclusion of women entrepreneurs from the market due to the male norms that dominate the socioeconomic contexts. Additionally, the findings of this research can contribute to the implementation of a strategic policy framework to encourage female entrepreneurship.

Managing Responsible Innovation Process – the Case of Six Start-ups in Digital Health

Digital innovations hold the promise of increasing productivity and offering better outcomes, higher quality and reliability for users. However, harnessing these potential opportunities depends on how well firms can manage innovation to overcome stakeholders’, users’ and public concerns and address their needs and expectations. Responsible innovation (RI) is suggested as a way to govern innovation development to ensure socially desirable innovation solutions. Its principles suggest a broader stakeholder inclusion during the decision-making process, anticipation of societal needs and reflection of concerns (Owen et al., 2013; von Schomberg, 2013). However, there is a lack of empirical studies examining whether the principles of RI can be applied to a firm’s innovation development process. This research explores the innovation process in firms in the digital health and welfare sector to address the following research question: Can the responsible innovation approach be instrumental for the governance of the innovation process in firms? This work aims to answer this research question through longitudinal case studies of six digital start-ups in the healthcare and welfare sectors during 2016–2019. We followed innovation development in these firms, observing the pivotal moments and the emergence of new need–solution pairs through the lenses of four RI constructs—inclusion, anticipation, reflexivity and responsiveness. This paper’s key contribution is analysing the usefulness of RI governance for digital innovations. We found that continuous relationships between the innovation agents (the firm) and the stakeholders (distributed agencies) contribute to creating a pool of need–solution pairing, which allows for desirable innovation outcomes

Organizing Digital Innovation

Although digital technology has altered the innovation processes of firms in every industry, the existing literature continues to describe innovation as a sequence of two discrete and unidirectional activities: creation and diffusion. This study proposes that digital innovation should instead be understood as a development process that continues across the entire life cycle, often in collaboration with users. Drawing on in-depth interviews with 22 managers, the paper proposes an empirically grounded framework that explicates digital innovation as a continuous and iterative effort. The paper specifies principles for organizing digital innovation over time as centered on adaptation (containing core and peripheral elements) and user comprehension (containing user proximity and user sensing) of an already launched digital object. For managers, the key implication is that this process is not the exclusive preserve of any specific unit but should instead involve the whole organization.

Suppliers versus start-ups: Where do better innovation ideas come from?

In the innovation process of firms, suppliers increasingly play a key role as external sources of ideas. Although the beneficial impact of supplier integration has been acknowledged, there is also evidence that not all such innovation efforts are successful, particularly regarding the identification of truly innovative solutions. Therefore, in recent years, large firms have begun to move beyond their existing supply base, drawing on innovation ideas from start-ups, that is, with young firms with whom they have no pre-existing bonds. Yet there is no empirical evidence regarding whether start-ups’ ideas actually outperform those of established suppliers. We address this question by presenting a unique, real-world comparison of 314 supplier and start-up ideas – ideas that were identified, evaluated, and followed up over the course of an open innovation initiative conducted by a large automotive manufacturer. We find that start-ups’ ideas are characterized by a higher degree of novelty and to some extent higher benefit for end customers but, on the downside, are less likely to be implemented than suppliers’ ideas. Overall, our study adds new dimensions to the discourse on open innovation and provides valuable insights regarding the outcome of supplier and start-up involvement in the front end of the innovation process.

Responsibility versus Profit: The Motives of Food Firms for Healthy Product Innovation

Background: In responsible research and innovation (RRI), innovation is seen as a way in which humankind finds solutions for societal issues. However, studies on commercial innovation show that firms respond in a different manner and at a different speed to the same societal issue. This study investigates what role organizational motives play in the product innovation processes of firms when aiming for socially responsible outcomes. Methods: This multiple-case study investigates the motives of food firms for healthier product innovation by interviewing firms about the organizational motives behind product reformulation and innovation. Results: This study highlights the importance of having both instrumental and moral motives in the innovation process when aiming for socially responsible outcomes, and how both these motives interact and contribute to responsible innovation in industry. Furthermore, the study results question the nature of relational motives as a separate category from the other two categories of motives, as suggested by corporate social responsibility (CSR) scholars. Conclusions: If commercial innovation needs to contribute to solutions for societal issues, the importance of moral motives has to be stressed without annihilating the instrumental objectives of firms. Both motives contribute to the success factors of responsible product innovation in industry.

External knowledge sourcing and new product development

PurposeThe purpose of this paper is to analyze the role of external knowledge in the innovation process of firms in the food and beverage (F&B) industry and the effects of two external knowledge sourcing modes on new product development (NPD) performance.Design/methodology/approachThe paper applies a quantitative approach, relying on data from 157 Italian firms operating in the F&B industry to test the hypotheses through OLS regression models.FindingsResults suggest that the surveyed firms actively engage in open innovation with strong ties with market-based sources. Moreover, the authors found that market-based sources are associated with income from incremental innovation and time to market, while science-based sources are associated with income from radical innovation. Finally, the authors found that the R&D intensity enhances the benefits of the above external knowledge sourcing modes.Originality/valueDespite the large amount of studies assessing the effects of external knowledge sourcing on performance in the open innovation field, few studies focused on a specific industry, especially with regard to F&B. Moreover, this paper considers different types of NPD performance measures given that different external knowledge sourcing modes exert different effects.

Firms’ Absorptive Capacity for Research-Based Collaboration—an Analysis of a Norwegian R&D Brokering Policy Program

The objective of this article is to explore how policy supported instruments aimed to stimulate research-based innovation influence long-term innovation activity in firms with different knowledge bases. In an effort to contribute to the renewal of existing industry, some policies aim to stimulate firms to adopt and apply research-based knowledge in innovation processes. This article includes a qualitative study of a specific ‘R&D brokering policy instrument’ in Norway aimed at increasing R&D-based innovation processes in firms. R&D brokering policy instruments include funding schemes that are designed to foster and transfer technology and knowledge between firms and research communities. The study shows that the absorptive capacity for R&D collaboration varies depending upon the dominant knowledge base of firms. It is well-acknowledged that no policy fits all regions. This study also implicates that no R&D brokering policy instrument fits all industries equally well.

R&D SPILLOVERS AND PRODUCTIVITY IN ITALIAN MANUFACTURING FIRMS

In this paper, we analyse the relationship between Research and Development (R&D) spillovers and productivity. To this aim, we develop a non-overlapping generation model to evidence the theoretical idea of the spillovers between firms and then we implement an empirical investigation based on data from 9th and 10th Survey on Italian Manufacturing Firms (IMM) conducted by Capitalia to test for this idea. The results provide evidence of higher productivity in R&D and skill intensive industries and this can be interpreted as the signal of the relevance of spillover effects. Indeed, in-house R&D does not capture all aspects of innovation, which often occurs via other channels, especially in SMEs. Small and medium firms, such as Italian firms, are much more able to innovate by exploiting knowledge created outside of them. Thus, the results of our paper suggest that R&D spillovers reinforce in-house R&D in affecting SMEs productivity. Moreover, the contribution of this paper is also to stress the importance of skill composition of the labour force in the innovation process of firms.

Industrial Ph.D. Programs for the Strengthening of the Industry's Production of Innovation in Colombia

Today's firms face a new global economy powered by knowledge rather than physical resources and natural raw materials. Universities are crucial actors in ensuring economic development, not only by training highly qualified human capital, but also by producing new knowledge with innovation potential. University–industry research collaborations (UICs) have been increasingly recognized as an innovation mode. Highly qualified people, mainly at Ph.D. level, are fundamental for the increase of the knowledge pool from which firms and society as a whole can benefit in terms of the production of innovation. The demand for more specialized researchers in business/industry has led to new versions of doctoral programs, such as Industrial Ph.D. Programs (IPPs), which are well-established in a number of countries. After using an analytical international and comparative education methodology, we have found that the cooperation with industry to develop Ph.D. programs in Colombia is relatively weak and requires to be enhanced. In this paper, we argue for the alignment of the so-called third academic mission of economic development with the traditional academic missions of teaching and research through the implementation of IPPs as a mechanism for strengthening the innovation process of firms and country's economic growth.

Connectivity in the Technology Transfer Process among Local ASEAN Firms

This study focuses on the role of human factors in the innovation processes of firms in four member states of the Association of Southeast Asian Nations (ASEAN), i.e., Indonesia, Thailand, the Philippines, and Vietnam. Firms are required first to obtain new information related to innovation and then to integrate it with their indigenous resources. The innovation process thus consists of the absorptive process, through which outside information is employed to enhance innovation capability, and the transforming process, through which innovation capability creates innovation. This study identifies essential factors that promote these capabilities. In the absorptive process, two types of personnel are examined, i.e., employees who have experience working with multinational companies (MNCs) and those indigenous to the firm. As for the transforming capability, organizational learning processes, including quality control (QC) and cross-functional teams, are examined. Mail surveys were conducted from 2013 to 2014, and the total number of samples was 665. Based on the data, structural equation modeling (SEM) is employed. The analysis demonstrates that MNCs have the largest impact as external linkages. The most important mediators for locals to connect with MNCs are top management and factory managers who have experience working with MNCs, whereas indigenous employees, such as local engineers, managers, and line leaders, are identified for connectivity with locals. The direct and indirect effects of external linkages on innovation are also estimated. In the transforming process, cross-functional teams have a larger impact on innovation than QC.

Quality and quantity in the innovation process of firms: a statistical approach

The aim of this paper is to construct a technological index to measure the efficiency level of firms, in such a way that it takes into account simultaneously both the quantity and quality of scientific research. To this end, we use a statistical approach based on fuzzy theory. We explore data for 682 international firms relative to three economic areas, namely the USA, Japan and Europe. Data concerning firms’ patents were obtained from the European Patent Office. We implement a statistical analysis based on fuzzy theory through three steps: (1) choice of the variables; (2) construction of the membership function (mf); (3) calculation of the weights associated with each mf; (4) aggregation of the mf.

The innovation process in firms with border region location

The paper focuses on how the uncertainty in innovation processes created by intertwined technological and commercial forces is managed in border region (BR) firms. The aim of the research is to study the firms' capability to innovate, and to investigate the firms' innovative status within a framework of high-involvement innovation. In the three cases in the study, the managers of the researched firms focus on the need for innovation management and organisational change to thrive in the manufacturing industry in Ostfold and Vastra Gotaland characterised by global competition and advanced technology. The empirical findings show that diffusion of innovations is not only dependent on the flow of information on user characteristics in a user-producer interaction, but also on the organisational structure of a firm. A producer organised as a cost-centre in a corporation might be a factor that influences the close relationship needed to innovate successfully. The major findings describe the innovative status of the researched firms, and provide analysis of and discuss the firms' capabilities to involve employees in innovation. Based upon the firms' level of high involvement innovation and organisational culture, the framework applied provides insight into how to identify capabilities, or cluster of behaviour, required to develop the investigated organisations.

MULTI-CULTURAL TEAMS AS SOURCES FOR CREATIVITY AND INNOVATION: THE ROLE OF CULTURAL DIVERSITY ON TEAM PERFORMANCE

Multi-cultural teams are seen as a wellspring of creativity and innovativeness. Yet, we still miss an in-depth study of their potential and challenges during the innovation process in firms. This is a serious omission as many international firms are in need of improving their global innovation position by the inclusion of insights from team members of different nationalities with knowledge about markets and culture. To derive first insights, we conducted a longitudinal qualitative study in a large global company with 70 personal interviews in five innovation teams over a period of two years. These data, based on semi-structured interviews, provide us with rich information about effects of cultural diversity in teams in the innovation process. Data were analysed through a thematic network analysis and two coders inductively forming categories. Results indicate that cross-cultural teams have a high potential of creativity, but are confronted with difficulties arising from different working- and communication styles which have to be proactively managed from the beginning. While progressing, teams learn to cope with this diversity related to some more surface-level cultural dimensions and members even align. Yet, diversity of power distance induces conflicts that deeply impact the innovation process. Based on these findings, we develop a set of propositions, which lead into a conceptual model on the effects of multi-cultural team work on creativity and innovation. Finally, we discuss further implications for research and practice.

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.

RESOURCES, CAPABILITIES AND COMPETENCES FOR ECO-INNOVATION

The existing literature on the determinants for the development and adoption of ecoinnovations has generally focused on analysing the influence of business strategies and external drivers (public policy and stakeholder impacts) on innovation processes in firms. Internal factors to the firm such as resources, capabilities and competences (RCCs), which are important drivers of business strategies and innovation performance, are seldom considered in the literature. This paper builds an integrated framework that incorporates the impact of those firm’s internal factors and their interactions with external drivers on the development and adoption of eco-innovations. The relevance of those factors regarding several dimensions of eco-innovation is illustrated with case studies. It is shown that, while all RCCs are relevant for the development and uptake of ecoinnovations, their relevance differs across eco-innovation dimensions.

Patterns of innovation and collaboration in small and large firms

This paper explores the patterns of innovation and collaboration by using unique regional survey data on more than 600 Swedish firms. The data also include the smallest firms, which have been largely neglected in the existing literature on innovations. In the context of collaboration, however, small firms are of particular interest because external interactions and joint projects can be expected to play a very central role in innovation processes in firms where internal resources are very limited. The results show that the probability of innovation is higher among collaborating firms, yet not all types of collaborations matter. Extra-regional collaborations appear as most important in promoting firm innovation, and collaboration seems to be most favourable when the partners involved have some organizational or knowledge relatedness. Small firms, in particular, seem to gain from such extra-regional linkages.

Open innovation in the performing arts. Examples from contemporary dance and theatre production

Scholarship on open innovation examines the different shades of opening up the innovation process of firms, where the most important feature is sourcing in knowledge. In this paper I examine the implications of adapting open innovation frames to a field where it was not investigated before: performing arts (contemporary dance and theatre). I draw on case studies and demonstrate that open innovation strategies are viable for artistic production. Independent companies purposefully mining out external knowledge in production, and commercializing on the spillovers of their body of knowledge, put themselves on the shelf of firms adopting and adapting to open innovation.

Open Innovation in SMEs: Drivers and Inhibitors

Open innovation has of late emerged as a popular innovation management concept that advocates opening up of the innovation processes in firms. Despite researchers writing against open innovation being a new concept, research into open innovation activities of firms, as evidenced by the growing number of related research papers and books, has proliferated. In this concept paper, through a scrutiny of published open innovation research work, we look at the concept of open innovation in general and then zoom in on the factors that drive and inhibit its implementation especially in SMEs. The analysis shows that the drivers of open innovation include meeting customer demand, while employee resistance in the form of not-invented-here (NIH) and not-shared-here or not-sold-here (NSH) syndromes can inhibit open innovation. The paper, with implications for practice and theory, ends with a summary of open innovation and its drivers and inhibitors.

Network diversity structure, closeness and innovation of South African micro-entrepreneurs

This study qualitatively explores the embeddedness of the innovation process of South African microbusinesses by investigating how small local entrepreneurs in the Greater Johannesburg area utilise their social networks to source entrepreneurial value. A comparative grounded theory analysis enabled the original conceptualisation of Network Diversity Structure and formulates the central proposition that the network dimensions of diversity and closeness enable the innovation process among manufacturing microbusinesses more so than in service microbusinesses. Furthermore, the study proposes that both a structural and relational/experiential dimension of closeness, enables micro-entrepreneurs to create meaning and knowledge collaboratively with other entrepreneurs and actors. This socially facilitated process of exchanging ideas, information, and resources is central to the innovation process of firms traditionally limited by both their size and historical social institutions.