Investment In Innovation Activities Research Articles

Knowledge accumulation at the regional level and the role of intellectual property rights

ABSTRACT There has been a growing debate on the role of intellectual property rights (IPR) in the accumulation of knowledge and more recently on the role they play in ensuring long-term economic growth by supporting knowledge creation and expansion, incentivizing investment in R&D and innovation. This research aims to reveal the effects of industrial property rights on regional economic development in Turkey. In addition, and recognizing the heterogeneity across regions within the same country, we conduct the analysis with a caveat, by differentiating the effect across developed and developing regions. Our results suggest that industrial property rights have played a dual role, first by promoting the effort on investment in innovation activities measured as R&D intensity, and the amount of R&D employees, and second, by contributing to economic development. However, the impact differs between developed and developing regions.

Legal security of the system of infrastructure support of innovative activities under the conditions of European integration processes

Problem setting. The European integration vector of the development of Ukraine in modern conditions should be directed to the key needs of the state, one of which is the aspiration to join the EU, which should be based on established processes of approximation of current legislation to international legal standards and dynamism of entry into the European scientific, educational and digital spaces. Martial law outlined new priorities for state support, however, the implementation of innovative activities is of key importance for ensuring the competitiveness of the national economy, the innovative path of which is actualized precisely through the relevant strategic orientations and measures, which must be of a systemic nature. analysis of recent researches and publications. Legal issues of implementation of support for innovative activities and problems of infrastructural support of the innovation process have been studied by many scientists. In the scientific works of S. V. Hlibko topical issues regarding the improvement of the legal regulation of the innovation process were investigated. O. V. Rozghon conducted a study of conceptual provisions regarding the substantiation of the essence of the category “international technology transfer” and a bibliographic analysis of the study of this category. Yu. M. Zhornokui analyzed legislative and doctrinal approaches in European countries regarding the formation of organizational and legal forms of venture investment in innovative activities. the purpose of the research is to study the topical legal issues related to ensuring the systematic nature of infrastructure support for innovation in the context of European integration processes. article’s main body. In today’s conditions of intensification of integration and globalization processes, one of the main factors in increasing the competitiveness of Ukrainian enterprises is their capacity for innovative activity, the economic effect of which is positive only in the case of the systemic nature of the implementation of innovative changes based on e formed innovation strategy. Proper strategic planning and systematic measures to support activities in the innovation market have a decisive influence on the state of the national economy, including its innovative direction. Today, there are indeed legal problems regarding the lack of a systematic approach to ensuring the innovative development of the national economy and regions of Ukraine, which require an urgent solution in the conditions of the general trend regarding the passive-static state of the current legislation in the field of innovation, taking into account the need for the intensification of European integration processes. The legal support of the national innovation ecosystem should have effective means of supporting and stimulating the implementation of innovative activities and the corresponding infrastructural support of the innovation process, taking into account modern challenges, real needs and generally defined strategic guidelines of the state in this area. At the same time, the construction of an effective innovation policy should also take place according to the principle of adaptive formation, taking into account the real needs of regulatory regulation, the current state of innovation development, the need to ensure effective interaction between all subjects of the innovation infrastructure and components of the national innovation system. conclusions and prospects for the development. The study of current legal issues regarding the provision of systematic infrastructural support for innovative activities in the context of European integration processes allows us to conclude that a dynamic push is now urgently needed for the development of all components of the country’s general innovation ecosystem, a decisive role is played by the use of a systemic approach, which will provide the opportunity to optimize the use innovation potential of Ukraine and significantly increase the competitiveness of the national economy based on the construction of an effective national innovation ecosystem.

Legal security of the system of infrastructure support of innovative activities under the conditions of European integration processes

Problem setting. The European integration vector of the development of Ukraine in modern conditions should be directed to the key needs of the state, one of which is the aspiration to join the EU, which should be based on established processes of approximation of current legislation to international legal standards and dynamism of entry into the European scientific, educational and digital spaces. Martial law outlined new priorities for state support, however, the implementation of innovative activities is of key importance for ensuring the competitiveness of the national economy, the innovative path of which is actualized precisely through the relevant strategic orientations and measures, which must be of a systemic nature. analysis of recent researches and publications. Legal issues of implementation of support for innovative activities and problems of infrastructural support of the innovation process have been studied by many scientists. In the scientific works of S. V. Hlibko topical issues regarding the improvement of the legal regulation of the innovation process were investigated. O. V. Rozghon conducted a study of conceptual provisions regarding the substantiation of the essence of the category “international technology transfer” and a bibliographic analysis of the study of this category. Yu. M. Zhornokui analyzed legislative and doctrinal approaches in European countries regarding the formation of organizational and legal forms of venture investment in innovative activities. the purpose of the research is to study the topical legal issues related to ensuring the systematic nature of infrastructure support for innovation in the context of European integration processes. article’s main body. In today’s conditions of intensification of integration and globalization processes, one of the main factors in increasing the competitiveness of Ukrainian enterprises is their capacity for innovative activity, the economic effect of which is positive only in the case of the systemic nature of the implementation of innovative changes based on e formed innovation strategy. Proper strategic planning and systematic measures to support activities in the innovation market have a decisive influence on the state of the national economy, including its innovative direction. Today, there are indeed legal problems regarding the lack of a systematic approach to ensuring the innovative development of the national economy and regions of Ukraine, which require an urgent solution in the conditions of the general trend regarding the passive-static state of the current legislation in the field of innovation, taking into account the need for the intensification of European integration processes. The legal support of the national innovation ecosystem should have effective means of supporting and stimulating the implementation of innovative activities and the corresponding infrastructural support of the innovation process, taking into account modern challenges, real needs and generally defined strategic guidelines of the state in this area. At the same time, the construction of an effective innovation policy should also take place according to the principle of adaptive formation, taking into account the real needs of regulatory regulation, the current state of innovation development, the need to ensure effective interaction between all subjects of the innovation infrastructure and components of the national innovation system. conclusions and prospects for the development. The study of current legal issues regarding the provision of systematic infrastructural support for innovative activities in the context of European integration processes allows us to conclude that a dynamic push is now urgently needed for the development of all components of the country’s general innovation ecosystem, a decisive role is played by the use of a systemic approach, which will provide the opportunity to optimize the use innovation potential of Ukraine and significantly increase the competitiveness of the national economy based on the construction of an effective national innovation ecosystem.

Return on investing in innovative activities: the brazilian manufacturing industry

Objective of the study: This study analyses the relationship between innovation investment and the number of firms that innovate in various sectors of the Brazilian manufacturing industry.Methodology/approach: The estimated multiple linear regression model with panel data based on triennial investments covering 1998–2017 was considered.Originality/Relevance: This study indicates that investment in RD, both internal and external, does not influence the number of companies that have implemented certain types of innovation.Main results: Investment in training and machinery/equipment acquisition showed a positive and significant relationship with the number of companies implementing some type of innovation in the analyzed sector.Theoretical/methodological contributions: These findings contribute to better management of resources spent on innovation activities while filling a theoretical gap in the impacts of different innovative activities, considering the Brazilian manufacturing industry.Social/management contributions: The return on innovation investment is uncertain in the organizational context. Understanding the return on investment in innovation activities contributes to decision-making regarding resource allocation, especially in organizations with financial constraints.

Does oil price uncertainty affect corporate innovation?

This study examines the relation between oil price uncertainty (OPU) and corporate innovation productivity. Using firm-level innovation data of US firms, we find that OPU is negatively associated with future innovation outcomes, proxied by the number of patents and subsequent citations, and the dollar value of innovation. However, this negative relation is more pronounced for non-green innovation than for green innovation and predominantly driven by oil supply shocks. Our supply-side explanation suggests that since oil supply shocks induce uncertainty about future economic growth opportunities and cost of operation, firms tend to decrease their investment in innovation activities. This negative relation is pronounced more in manufacturing firms and firms located in non-oil-producing states, and the pre-financial crisis period. Further analysis suggests that increases in the cost of external financing and cash holdings appear to be the underlying mechanisms through which OPU impedes firm innovation. The results survive from several model specifications, alternative variable definitions, and controlling additional firm and macroeconomic factors. Overall, OPU seems to have an important implication in shaping firms' investment in innovation. Several implications are discussed.

МИРОВЫЕ ТЕНДЕНЦИИ И ПРОБЛЕМЫ ИННОВАЦИОННОГО РАЗВИТИЯ ЭКОНОМИКИ РОССИИ

Based on the analytical analysis of regulatory legal acts of various countries, international trends in innovative development were identified (the struggle for highly qualified personnel, increased research and development costs, technological sovereignty). Focusing on the identified trends and using the methods of comparative, statistical analysis, the problems of Russia’s innovative development were identified (insufficient investment in innovative activities, low level of participation of the business sector of the economy in research and development, insufficient number of highly qualified personnel). To solve these problems, the tools of transformation of the national innovation system are proposed.

KNOWLEDGE CAPITAL AND INNOVATION ACROSS FIRMS IN ASIAN ECONOMIES: A BALANCED INVESTMENT APPROACH

The difference between knowledge capital and innovation and their combined impact on firm market performance remains a puzzle. Firms can utilise their accumulated stock of knowledge to create value, and at the same time, allocate their resources each year to create innovation, hoping to sustain their performance and make a better future. Using time fixed effects panel regression with industry and country dummies, this study investigates how knowledge capital and innovation impact firm performance by analysing the sample of 2,958 listed companies of Asian countries during 2015–2019. We observe that different sectors exhibit strong variations in their levels of knowledge capital and innovation. This study finds that more knowledge capital negatively impacts firm performance, but up to a certain point. The U-shaped relationship found suggests that learning and accumulating capabilities to exploit knowledge capitals’ potential is essential to achieve higher firm value. We also find that firms’ more spending on innovation positively impacts firm performance, but only up to a certain level. An inverted U-shaped relationship found suggests a balanced investment in innovation activities to attain improved firm performance. Implications for management and potential for further research are provided.

U.K. economic policy uncertainty and innovation activities: A firm-level analysis

Our study investigates the effects of economic policy uncertainty (EPU) on firm-level innovation activities. Utilizing the news-based government EPU index of Baker et al. (2016) and a panel sample of 213 UK largest non-financial firms over the period 1999-2018, we find robust evidence that the government EPU has caused a substantial reduction in UK firms’ investment in innovation activities. Moreover, our results further show that such a lower level of corporate investment leads to a decline in their shareholder value, which forms a triangle linkage among EPU, investment and market value.

Firm-level political risk and corporate innovation: evidence from US listed firms

PurposeThe study examines the association between firm-level political risk and corporate innovation and also this study explores how financial constraint and growth level of a firm influence this association.Design/methodology/approach A sample of 14,140 firm-year observations of the US firms from 2003 to 2020 is used. Unlike prior studies, this study uses a firm-level measure of political risk recently developed by Hassan et al. (2019) and measure innovation by patent and patent citation data and a text-based measure. A regression technique is used for empirical testing.FindingsThis study finds that firm-level political risk is negatively associated with innovation and also document that firm-level political risk has a negative impact on innovation for financially constrained and high growth firms. The overall results are robust after addressing the issue of potential endogeneity using entropy balancing and two-stage least squares regression techniques. This study also documents qualitatively consistent results after using alternative measures of innovation as well as firm-level political uncertainty.Research limitations/implicationsThe findings of this study could help the managers to make better investment decision and improve economic efficiency through understanding the effect of firm-level political risk on innovation activities.Originality/valueThe study concentrates on firm-level political risk and innovation and presents new insights that political risk at the microlevel is an important determinant for investment in innovative activities.

Digitalization, competition strategy and corporate innovation: Evidence from Chinese manufacturing listed companies

Digital transformation is permeating from the service sector to the manufacturing industry and is becoming an increasingly important factor in enterprise operating decisions. Based on data from A-share listed Chinese manufacturing companies, this study examines the nexus between the digitalization of the manufacturing industry and corporate innovation investment. Empirical evidence indicates that manufacturing enterprises have significantly increased their investment in innovation activities in the process of digital transformation, and this conclusion is still valid after employing a series of robust analyses to overcome endogeneity. Digital transformation also has an indirect effect on manufacturing enterprises' market competition strategy. Manufacturing digitalization significantly promotes enterprises to implement differentiated competitive strategies, while inhibiting the implementation of a cost-competitive strategy. Manufacturing enterprises with higher viability are more adaptable to digital transformation and tend to implement differentiated competitive strategies. Hence, the innovation incentive effect is greater for high-viability enterprises, regardless of the scale of operation, the ownership, or productivity. These findings provide useful policy implications for promoting the integration of digital transformation and innovative development in the manufacturing industry.

SIMULATION MODELING OF INVESTMENT EFFICIENCY IN THE INNOVATIVE ACTIVITY OF THE ENTERPRISE

In this article we will consider the main problems we face in determining the effectiveness of attracting investment in innovation activities of the enterprise. Many researchers have long been developing better mechanisms for evaluating the effectiveness of investment activities. These include simulation techniques and a multi-step approach. As part of this study, we adapt these techniques for the process of evaluating the economic efficiency of innovation, taking into account the identified features. The methods of evaluating the effectiveness of innovation activity in relation to the investment aspect are proposed, the peculiarity of which is the fact that the amount of project money flows and the amount of investment costs, in particular working capital, needed for introducing the assets of an innovative project into for the production with the use of the newest technologies and innovations are taken into consideration. It is proved that the evaluation of the efficiency of investments in the innovation project predetermines processing of expert assessments applying special tools, which involves checking the conditions of consistency and consensus of experts’ ideas. The final stage of the expertise involves making a decision on selection of one or several innovation projects for implementation in the conditions of the enterprise under consideration. It is established that the basis of selection should be the rating of the innovation project, the cost of its implementation and the budget of the enterprise’s innovation development. The final decision on the appropriateness of introduction of the innovation project does not require rigid formalization, but should be taken by senior management board of the enterprise as a result of qualitative assessment of the efficiency of investment in innovation projects. Simulation modeling is proposed, which will allow to make a decision on the effectiveness of attracting investment in an innovative project.

The influencing factors of industry innovation networking: evidence from Shanghai's high-tech industry

The influence factor of innovation network is an important research field of human geography. This paper aims to examine the factors, paths, and mechanisms influencing networking of Shanghai's high-tech industry with focus on the biomedical, new material, equipment manufacturing and electronic information. Based on the data from high-tech firms' annual reports by Shanghai's Science and Technology Commission, the results highlight firm development stage, firm scale, and industry position as the main factors promoting innovation networking. In addition, government intervention plays the largest role in the new material industry mainly through investment in innovation activities and taxation intervention in innovation network construction. The impact of firm ownership, spatial location, and intermediary services on the four high-tech industries' innovation networks is relatively smaller. Finally, this study summarises the impact mechanisms for innovation networking in Shanghai's high-tech industries.

A framework to evaluate how European Transmission System Operators approach innovation

This article looks at the innovation of European electricity Transmission System Operators (TSOs), which play a key role in meeting growing demand for greener and affordable power and for the development of a smarter and reliable electricity system. Due to the radical transformations occurring in the sector TSOs must increasingly invest in research and innovation and evolve by embracing new technologies, new activities and new business models. This study analyse TSO innovation approach by focusing on projects and initiatives related to some key technologies that are gaining attraction across Europe. The study also investigates whether TSOs operating under more favourable regulatory frameworks for innovation are more innovative than others. The results indicate that TSOs tend to have a conservative approach to innovation, developing projects which have the lowest impact on their current business model, while TSOs operating within more favourable regulatory frameworks are indeed more active than others. These results are aligned with previous studies on electricity network companies according to which they tend to avoid investments in innovative activities, unless they are adequately encouraged or incentivized thus bringing the attention on the urgent need for Regulators and policymakers to review and correct their regulation and incentives for innovation.

CUMULATIVE MODEL OF INCREASING GROSS VALUE ADDED OF THE HIGH-TECH SECTOR OF THE NATIONAL ECONOMY

Topicality. The high-tech sector plays a crucial role in the socio-economic development of the world's states and is a key factor in their competitiveness. Ukraine is a state with a strong scientific and innovative potential, which is able to provide access to the world's leading positions. However, Ukraine lags significantly behind in the development of its high-tech sector from many other countries of the world, which requires the development of strategic measures to overcome the current situation.Aim and tasks. Based on the analysis of mutual influence of gross value added of the high-tech sector and the reproductive process of the national economy on an innovative basis to develop a conceptual basis for the formation of a system of incentives for increasing the gross value of high-tech areas of entrepreneurial activity.Research results. The article reveals the role of high-tech sector in the national economy and on this basis a cumulative model of increasing gross value of the high-tech sector of the national economy is proposed. The model reveals appropriate mutual influences and allows to approach the development of incentives for increasing the gross value of the high-tech sector from systemic positions.Conclusion. Gross value added, created by the high-tech sector, is a source of competitive advantages for the national economy: it provides a technological basis for innovation development of all sectors of the economy, workplaces for highly skilled labor, reduction of capital outflow due to the involvement of its investment in innovation activities, increase of budget revenues. Stimulating the development of the high-tech sector should be systematic and cover all elements of the cumulative model of increasing gross value added of the high-tech sector of the national economy, namely: foreign economic integration, increase of productivity of domestic industries on an innovative basis, increase financial resources for expanded reproduction of innovation potential and development of the innovation system.

Fake it until you make it? Understanding “innovation theater” in organizations.

Research suggests that despite increased support from the top management, organizations are not becoming more innovative as a result of their investment in innovation activities (e.g. accelerators, hackathons, intrapreneurship programs). Existing literature points out that this is caused by the fact that sometimes these efforts are only symbolic actions rather than substantial ones. This is known as “innovation theater”. This phenomenon has been poorly understood in academic research, although previous studies have analyzed similar phenomenons such as “symbolic actions” or “corporate hypocrisy”. It is not clear how this phenomenon emerges in organizations, what are its roots or what consequences it has for organizations. We conduct a deep qualitative study to analyze “how” and “why” this phenomenon occurs. We found different ways in how innovation theater is manifested (e.g. spaces to simulate, external alliances, internal structures) and we suggest this occur because of individual, unit, organizational and environmental drivers. We also identified negative and positive consequences of innovation theater at individual and organizational levels. Taking together these results and building on previous research, we propose a theoretical model which explains how and why innovation theater emerges in organizations through stages of maturity. This paper contributes in different ways to corporate innovation, innovation theater and symbolic actions literature. Mainly for being the first academic research that analyzes the phenomenon.

ТЕХНОЛОГИЯ ИННОВАЦИОННОЙ ДЕЯТЕЛЬНОСТИ: ФОРМИРОВАНИЕ НОВОЙ ПАРАДИГМЫ

The article is devoted to the study of the topical scientific and practical problem of the macroeconomic theory of innovation, which has a significant impact on technological development and the formation of a new paradigm, ensuring the stability of the development of high-tech industries. The purpose of this article is to determine the technology of innovation and the formation of a new technological paradigm. To achieve this goal, the following tasks were completed: scientific approaches to the development of innovation technologies and the formation of a new technological paradigm were analyzed, the role of investments in innovative activities was determined. The scientific discussion is assessed in accordance with the state policy of innovative development, the fundamental differences in the theoretical argumentation of the supporters of neoliberalism, liberalism and classicism are revealed. The position of economists who support the monetarist theory and evaluate it from the point of view of an effective regulator is analyzed. Innovative technological development is determined by qualitative changes in the institutional framework and timely, high-quality transformation processes in the public administration system; depends on the chosen vector of economic theory based on knowledge and practical experience. The definition of the technological paradigm as the foundation of evolutionary transformations based on methodology, methodology, technologies, general strategy of socio-economic development and formed approaches is given. The state policy of innovative and technological development is a methodological basis for economic development using various theories of attracting investment in innovation. The effectiveness of innovation in technological development has been proven throughout the entire historical development of the Russian economy and directly depends on the fundamental prerequisites for the effective use of new knowledge.

FORMATION OF THE CONCEPT OF ECONOMIC CATEGORY "PERSONAL SAVINGS FOR INNOVATIVE ACTIVITIES INVESTMENT”FORMATION OF THE CONCEPT OF ECONOMIC CATEGORY "PERSONAL SAVINGS FOR INNOVATIVE ACTIVITIES INVESTMENT”

The article is devoted to the formation of concept "personal savings", which includes the main classification criteria. Problems associated with appraising the significance of personal savings as an investment resource for innovative activities were considered. Studies of economists and scientists in the field of "personal savings" were analyzed, and the main approaches to this category were defined. The theoretical concept of "personal savings", which reflects the use of this category for the resource base of investment in innovative activities of various business entities, was proposed.

The Linkages Between Investments in Innovation and Business Performance in Serbia

Motivation: Driven by an increasingly competitive marketplace, the savviest businesses invest heavily in corporate innovation as a kind of competitive intelligence that gives a business what it needs to operate with poise and precision. The strategy of investments in innovation by firms can potentially explain the heterogeneity of their income increase based on market success. Such a stimulus for growth has been a motivation for the research question being examined in this paper, namely the link between corporate financing and investment decisions of Serbian firms based on the bank loans as sources of innovation and hence improved enterprise performance. The paper is based on the research of Hottenrott et al. (2014), together with Ferrando & Preuss (2017) and Aerts & Schmidt (2008) concerning the relationship between external finance and business innovation activities. This paper provides information about a bank loan as a financing source that firms use to fund their innovative activities, with the research question whether that has the subsequent impact on the company's performance. The idea of the paper is that investments of enterprises in innovation significantly affect their revenue. Data: Empirical research has been provided by a survey in Serbia in 2017. The sample comprised 152 enterprises, mostly privately owned, of all sizes. Descriptive statistics: Cronbach's Alpha coefficient, regression analysis is used as the research tool and method. The link between business finance and innovation, and furthermore the link between innovation and income of Serbian firms have been investigated. Three groups of factors show that the degree of income and market success of the enterprise increases with the level of investment in innovative activities. These are: sources of financing and financing conditions as independent variables, and company's income revenues, as the dependent variable. Findings: Firms that use bank loans as financial instruments for innovation activities and investments are more likely to develop new products, methods and processes, and successfully increase their revenues and income based on developing this kind of added value. The findings indicate that tangible asset investment of SME’s is positively related to the use of bank finance, to new product development and to enterprise performance improvement. Contribution: Results of the research show that financial investments in business innovation directly contribute to the business sector performance improvement. It also demonstrates the theory of innovative enterprise, the significance of financing, and the impact of banking on the overall development of the economy. The results point to the need for further research in the area of​​ access to finance, as well as the parallel development of non-banking sources of financing.

Os esforços inovativos das grandes empresas farmacêuticas no Brasil

Este artigo compara os esforços inovativos das grandes empresas farmacêuticas nacionais (GEFNs) e transnacionais (GEFTs) atuantes no Brasil. A metodologia descritiva utiliza dados não publicados das últimas três edições da Pesquisa de Inovação (Pintec) – 2008, 2011 e 2014 – e uma revisão da literatura sobre a indústria farmacêutica e suas estratégias de inovação para explicar os esforços inovativos descritos pelos dados. Os resultados mostram a evolução positiva das GEFNs em termos de esforços de criação de capacidades inovativas, e a manutenção do padrão de baixos esforços inovativos das GEFTs no Brasil. Conclui-se que as GEFNs estão alterando seu padrão de investimentos em atividades inovativas. Tais resultados corroboram estudos empíricos, que mostraram o avanço na complexidade das capacidades inovativas dessas empresas, e apontaram outras estratégias utilizadas, como parceria com centros de conhecimento e internacionalização da P&D.

Los efectos de la financiación pública en el desempeño innovador y económico empresarial

The existence of market failures induces that private investment in innovation activities is less than socially optimal. Hence, state intervention can be essential to promote innovation activities aimed at correcting this problem. This article, by estimating a system of equations in its reduced form, evaluates whether public financing stimulates investment in innovation and improves innovative and economic business performance in Ecuador, using the Innovation Activities Survey of the National Institute of Statistics and Censuses, versions 2009-2011/2012-2014. Public support was found to increase investment in innovation, fundamentally promoting exogenous innovation. Regarding the effects on the ability to innovate in product or process and the effects on productivity, results were found different according to the period of analysis and the economic sector.