Investment In Innovation Research Articles

Exploring SMEs’ innovation investment strategy to increase innovation output in economic crises

This study explores SMEs' innovation investment strategy by assessing their innovation investment level and the relative innovation investment effort during crises. The relative effort is measured by the positive values of the difference between the innovation investment made for the SME and that expected considering its external and internal characteristics. This study adopts a sequential multistage approach with a Spanish SME panel. The results show the relevance of the relative effort for generating product innovations during crises. Furthermore, the relative effort is significant above a level of innovation investment which reconciles the results of previous studies.

Towards carbon neutrality: The role of innovation and resources efficiency in China's economic transformation

This study investigates the necessary paradigm shift in redefining productivity. It achieves this by examining the complex interplay between technological innovation, efficiency in natural resource utilization, and the pursuit of green economic recovery as a path towards carbon neutrality. The research employs the Autoregressive Distributed Lag (ARDL) model to analyze the dynamics across these domains, focusing specifically on China for the period 2010–2022. Through comprehensive analysis, the study reveals significant results that illuminate potential pathways for achieving sustainable development. The findings highlight the crucial role of promoting technological innovation and optimizing natural resource use efficiency in driving green economic recovery and mitigating carbon emissions. These results emphasize the importance for policymakers to prioritize investments in innovation, resource efficiency, and green initiatives. This prioritization facilitate the transition towards carbon neutrality and foster long-term environmental sustainability and economic resilience.

Digital transformation, total factor productivity, and firm innovation investment

In the context of the digital economy, empowering firm innovation investment through digital transformation is an important strategy for promoting innovation development in China. This study investigates the effects and mechanisms of digital transformation on firm innovation investment from the perspective of total factor productivity, using a sample of manufacturing companies listed on the A-share market in China from 2012 to 2021. The following three main findings were obtained. First, results of both fixed- and random-effects regression methods revealed that digital transformation significantly promotes firms’ innovation investment. This conclusion remains robust after controlling for endogeneity issues using the instrumental variable method and replacing the explanatory variable measurement methods. Second, stepwise regression analysis revealed a negative mediating mechanism of total factor productivity (TFP) in the impact of digital transformation on the level of firm innovation investment. The main reason for this is that an improvement in TFP intensifies the competition for capital and labor input between the production and innovation departments. Third, the group regression for heterogeneity analysis found that the overall effect of digital transformation on firm innovation investment is significantly positive in groups with low financing constraints and high human capital, but not significant in groups with high financing constraints and low human capital. Moreover, the negative mediating mechanism of TFP is significantly valid in all groups, further validating the competition between the production and innovation departments for capital and labor input. Based on the findings of this study and from the perspective of governance by the Chinese government, three policy recommendations are proposed to empower firm innovation development through digital transformation.

The relationship between succession planning and survival of family business in Delta State, Nigeria

This seminar paper focused on the Relationship Between Succession Planning and Survival of Family Business in Delta State, Nigeria. The specific objectives are to: examine the impact of leadership succession planning on the survival of family business in Delta State, Nigeria and establish the impact of mentoring on the survival of family business in Delta State, Nigeria. The population of this study consists of the management and staff of the selected SMEs, which include; Dominion Gas, Blessed Plastics, Vinco Supermarket, Roban Stores, Gabs and Anny Stores who are currently on their payroll regardless of years of experience as of January 2024. The sample size of One hundred and seventy-four (174) was obtained using the Taro Yamani sample size formula. A stratified sampling technique was used. The study was driven by primary data. The data were analyzed using correlation and regression analysis as analytical tools. Findings revealed that Leadership Succession Planning (β =.259, P < 0.00), Mentoring (β =.136, P < 0.01), Innovation Investment (β =.130, P < 0.01), and Quality of Service (β =.075, P < 0.02). These are the dimensions with the strongest positive effects on the survival of the family business. The study concluded that A business mentoring program will help both mentors and mentees to develop their potential and upgrade their expertise. Effective mentoring can be associated with positive work behaviours, improve performance and contribute to succession planning because those who have been mentored are more likely to become mentors themselves. The management should also provide equitable opportunities for employees to feel motivated to improve the quality of their varied services. This will allow all employees, regardless of the output quality, to increase the efficacy of different brands, which may encourage customer retention.

Developing technology policy in Africa

This article suggests a revised perspective for technology policies in Africa, one that focuses more on the direct facilitation of economic production at domestic levels. Up until now there has been a strong tendency for public investment in science, technology and innovation (STI) to be confined to national science councils and higher education bodies with little direct impact on national production. The article argues that STI investment as conventionally understood needs to be supplemented by policies that stress facilitation of its use, an argument also made strongly by a recent World Bank publication and indirectly by UNCTAD in its recently published report on African development. This is likely to be especially important in small-scale and informal sectors and will certainly require support on the part of local and national governments (and aid related bodies). Hopefully we will then begin to enjoy a scenario in which the gross financial inequalities that have beset Africa for so long will begin to be modified to the ultimate benefit of all.

President’s Column: How Members Can Help Improve the Industry’s Public Image

Editor’s Note: This is a summary of the April episode of the President’s podcast. We encourage you to listen to the episode to hear the full conversation. In this podcast episode, I am joined by Paige McCown, senior manager of communication and energy education, to discuss the importance of how SPE engages with external stakeholders to help improve the industry’s public image, particularly through programs like energy4me. I start the episode by emphasizing how the industry’s public image is a critical concern for our future, and it’s a common question among members about what SPE can do to help. Although environmental scrutiny of the industry has always been present, it has become more pronounced with the increased focus on climate change and emissions. The energy industry has made many positive impacts across the world, from providing energy for almost everything we do to producing everyday products and conveniences. I also believe that the industry is best positioned to solve today’s energy challenges. However, two main problems related to our public image hinder our ability to meet these challenges: our ability to attract the best talent, and our ability to attract investments in technology and innovation. The discussion turns to ways to change public perception. I review some of the topics discussed at the Presidents Panel that I participated in at IPTC 2024. These include how engaging students at a young age and making them aware of the benefits of the industry helps change the narrative at an early age. Also, it is important to engage teachers, guidance counselors, and communities in promoting our positive aspects. The conversation moves to how SPE is equipping its members to engage in these efforts. I highlight SPE’s energy4me program which provides an exploration and production curriculum and hands-on activities to teach the science behind the industry. To accompany the program, SPE worked with DK Publishing to publish the Oil and Natural Gas book, available in nine languages, which helps convey the importance of the industry and provides talking points for members to use in their communities. SPE deploys the program through workshops at key events, virtual workshops, and the Energy4me Ambassador program. Sections and chapters across the globe are active in this program, so in 2022 SPE created the Corporate Ambassador program. Companies like ExxonMobil, EOG Resources, and Aramco Americas participated in the program. The program can help some companies meet their corporate responsibility and community outreach goals. I also spend time discussing how local sections and chapters are using the program in their communities. We highlight various initiatives including STEM education programs, workshops for teachers and guidance counselors, and outreach events like Family Science Day. The Calgary section YPs organize an annual Family Science Day, aimed at educating students about oil and gas and putting on fun experiments.

Harmonizing eco-control and eco-friendly technologies with green investment: Pioneering business innovation for corporate sustainability in the Indonesian context

This research investigates the intricate relationships between Eco-Control, Eco-Friendly Technologies, Green Investment, Business Innovation, and Corporate Sustainability within the Indonesian manufacturing landscape. The primary objective is to shed light on the interplay of these factors in achieving sustainable business practices. This study employs a quantitative approach, gathering data from a diverse sample of 160 manufacturing companies in Tangerang City, Indonesia, spanning eight sectors. Each sector contributes 20 top management representatives, providing insights into their respective Green Investment, Business Innovation, and Corporate Sustainability practices. The analysis supports the acceptance of hypotheses relating to these constructs' direct and mediating relationships. Green Investment is pivotal in mediating the path from Eco-Control and Eco-Friendly Technologies to Corporate Sustainability. These findings offer valuable insights for businesses in Indonesia, highlighting the importance of Green Investment and Business Innovation in fostering Corporate Sustainability. Practical implications suggest the need for strategic investments in green initiatives and innovation. Despite comprehensive sampling, this study acknowledges potential data accuracy and generalizability limitations. This study recommends further research to explore nuances across sectors and enhance understanding of sustainable practices.

Blockchain in banking: A comparative review of developments in the USA and Nigeria

This review paper systematically examines the adoption and impact of blockchain technology within the banking sectors of the United States of America (USA) and Nigeria, offering a comparative analysis of developments across these divergent economic and regulatory landscapes. Through an extensive literature review, the paper synthesizes findings from a range of sources, including peer-reviewed journals, industry reports, and case studies, to explore how blockchain technology is being integrated into banking operations, the challenges encountered, and the opportunities it presents in both contexts. The analysis reveals that in the USA, the integration of blockchain into banking has progressed significantly, supported by a mature technological infrastructure, a clear regulatory environment, and substantial investments in financial technology innovations. This has facilitated enhancements in transaction efficiency, security, and cost reductions. Conversely, Nigeria’s adoption of blockchain technology in banking is at a nascent stage, primarily focused on addressing financial inclusion and improving the efficiency of cross-border payments. Despite this, regulatory uncertainties and infrastructural deficits pose challenges to its broader adoption. The paper concludes that while blockchain technology offers the potential to transform banking operations globally, its adoption and impact are heavily influenced by specific national contexts. The study underscores the need for adaptive regulatory frameworks and infrastructure development to fully harness the benefits of blockchain in the banking sector. It advocates for further research into blockchain’s practical applications in banking, emphasizing the importance of cross-country studies to understand its global implications.

Using a two-price market value framework to value differences in metabolizable energy concentration of pasture across seasons

CONTEXTInternationally, there have been focused efforts to develop methods of ranking pasture cultivars to assist livestock producers make informed decisions about investments in pastures. The Australian Forage Value Index (FVI) currently ranks cultivars for the dairy industry based on the value of differences in seasonal dry matter (DM) yield only. Metabolizable energy (ME) is the most important nutrient supplied by pasture for livestock production; its inclusion in the FVI may provide useful information for decision making. OBJECTIVEThe objective was to apply a two-price market value framework to value differences in both seasonal DM yield and ME concentration for valuing and ranking pasture cultivars. METHODSThe two-price market value framework allocates a replacement cost or salvage value to extra ME supplied by pasture during seasons when pasture is typically in deficit or surplus, respectively, of animal demand. The replacement cost and salvage value were calculated using a single (Method 1) or multiple (Method 2) nutritional components, and compared. The estimated market values for extra ME were combined with corresponding market values for extra DM yield and applied to a data set of 20 perennial ryegrass cultivars. Cultivars were ranked based on their extra annual market value compared to base cultivar Victorian. Rankings were first calculated based on the value of seasonal differences in DM yield, and then re-calculated using differences in both seasonal DM yield and ME concentration. RESULTS AND CONCLUSIONSReplacement costs of a MJ of ME of $0.023 and $0.010 were estimated for seasons of pasture deficit using Methods 1 and 2, with corresponding salvage values of $0.018 and $0.007 for seasons of pasture surplus. Compared with rankings based on the value of differences in DM yield alone, including the value of differences in ME concentrations had little effect on the rankings of individual cultivars. This result is strongly influenced by the fact that those cultivars that lead the ranking based on seasonal yield also have relatively high values for ME. SIGNIFICANCEThe two-price market value framework is one method for estimating the value of nutrients supplied by pasture and offers a simplified alternative to more common approaches for valuing pasture. The approach used here has potential for broader application and could be particularly useful for informing decisions about investments in research and innovation into traits which alter the nutritive concentrations of pastures swards and pasture species.

Regional innovations influence on the ecological footprint of the Russian Federation territories: case of the Siberia and Volga regions

Relevance. Ensuring the development of the country regions on the principles of environmental and economic balance, taking into account the national development goals of Russia until 2030.This article models the relationship between economic development and environmental progress. The relationship between investment in innovation and uncontrolled emissions in certain regions of Russia in the period from 2010 to 2022 is explored. Aim. To study the intensity of innovation influence on the ecological footprint, as well as the efficiency of functioning of environmental-innovative activities, in regions of different types using the example of the Siberian Federal District and the Volga Federal District. Methods. Panel regression with fixed effects, correlation analysis, DEA method, cluster analysis, analysis of variance. Results and conclusions. Using the example of 24 Russian regions, it is shown that the intensity increase of the research and development of regional companies does not always lead to an increase in the environmental footprint and an increase in emissions intensity. The obtained results indicate that the economic and environmental dimensions of sustainable development contradict each other and suggest that regional governments should consider the negative environmental externalities of economic development when designing policies to promote regional growth. It is noted that the growth of investments in the research and development of more developed regions reduce the emissions intensity level. Large industrial centers of Siberia and the Volga regions are investing in innovation to increase the intensity of emissions. The hypothesis about the high degree of the economic space heterogeneity in terms of the influence of the research and development intensity of regional companies on the degree of environmental pollution in the regions of the Russian Federation is confirmed. The necessity is emphasized to take into account the regional specifics of the industrial structure of the economy. A highly significant heterogeneity was revealed in the efficiency of environmental-innovative activities functioning in the regions of the Siberian Federal District and Volga Federal District. Moreover, the effectiveness of environmental-innovative activities of the regions is insignificantly correlated with the identified imbalance of this activity.

Evolutionary Game Analysis of Low-Carbon Incentive Behaviour of Power Battery Recycling Based on Prospect Theory

Power batteries, the core component of the rapidly evolving electric vehicle industry, have increasingly become a focal point of attention. Recycling power batteries can mitigate environmental pollution and utilize resources efficiently, which is crucial for fostering a low-carbon economy and achieving sustainable development. Utilizing prospect theory, this study proposes a tripartite game model for low-carbon innovation in power battery recycling, involving government agencies, power battery manufacturers, and recycling enterprises. This paper initially identifies the evolutionary stability strategy, subsequently simulates the evolutionary process through parameter assignment, and explores parameter sensitivity along with comparative effects. This study indicates the following: (i) Government incentives are pivotal in motivating manufacturers and recyclers towards low-carbon innovation. (ii) Reducing technology costs and enhancing spillovers significantly boost low-carbon innovation’s appeal. (iii) Moderate carbon taxes can encourage businesses to engage in low-carbon innovation, while excessively high taxes may increase operating costs and hinder investment in innovation. Lastly, policy recommendations are made in order to support environmental preservation and the industry’s sustainable growth in the power battery recycling sector.

Contribution of Science and Technology to the Country’s National Security

In the face of Nepal's constant vulnerability to major geopolitical forces, the country has yet to fully harness technology to safeguard its national interests. This paper highlights how states, in demanding times, have wielded scientific technology to safeguard their security and address their interests. This paper draws attention to the importance of investment in innovation and research for the survival of a nation. Drawing upon historical, technological, and geopolitical perspectives, this paper explores the pivotal role of scientific and technological breakthroughs in shaping military strategies, and war efforts. The paper examines key moments when innovations such as the development of bow and arrow, gunpowder, RADAR, proximity fuse, cryptography, and computer malware have provided nations, civilizations, and communities with a vital advantage in safeguarding their security. Furthermore, the paper explores the mutual relationship between scientific research, innovation, and economic growth. It highlights how investments in science bolster a country's defence capabilities and foster innovative ecosystems that drive economic prosperity. Ultimately, this paper seeks to provide a comprehensive overview of the contributions of science to national security and well-being. Analyzing the relationship between innovation, strategy, and global dynamics; the paper highlights the imperativeness of nations to adapt, collaborate, and harness scientific advancements, to safeguard their interests in an increasingly complex world. Through an enriched understanding of the past and present contributions of science in national defence, Nepalese policymakers, military leadership, and the country’s scientific community can navigate the intricate landscape of national safe guardianship to ensure a secure and prosperous future for Nepal.

Analyzing the nexus between environmental sustainability and clean energy for the USA

Environmental sustainability is a key target to achieve sustainable development goals (SDGs). However, achieving these targets needs tools to pave the way for achieving SDGs and COP28 targets. Therefore, the primary objective of the present study is to examine the significance of clean energy, research and development spending, technological innovation, income, and human capital in achieving environmental sustainability in the USA from 1990 to 2022. The study employed time series econometric methods to estimate the empirical results. The study confirmed the long-run cointegrating relationship among CO2 emissions, human capital, income, R&D, technological innovation, and clean energy. The results are statistically significant in the short run except for R&D expenditures. In the long run, the study found that income and human capital contribute to further aggravating the environment via increasing CO2 emissions. However, R&D expenditures, technological innovation, and clean energy help to promote environmental sustainability by limiting carbon emissions. The study recommends investment in technological innovation, clean energy, and increasing R&D expenditures to achieve environmental sustainability in the USA.

The carbon emission reduction effect of renewable resource utilization: From the perspective of green innovation

In the face of pressing global challenges posed by climate change, resource constraints, and environmental pollution, understanding the role of renewable resource utilization in carbon emission reduction has become paramount. This study aims to investigate this relationship, particularly within the context of the dual carbon goals, which emphasizes both carbon peak and carbon neutrality. Focusing on the national "urban mineral" demonstration bases as a case study, this research employs the directional distance function incorporating non-expected output alongside the Malmquist index to assess the dynamic changes in urban carbon dioxide emission performance. A multi-period difference-in-difference model is utilized to examine the impact of these demonstration bases on CO2 emissions. The Baseline results reveal that renewable resource utilization significantly enhances carbon emission performance. The channel analysis indicate that the establishment of national "urban mineral" demonstration bases positively influences carbon emission performance through three primary pathways: green technology agglomeration, green technology spillover, and energy structure optimization. Based on these findings, this study advocates for policies that promote renewable resource utilization and carbon emission reduction. Specifically, it highlights the need for increased investment in green technology innovation and diffusion, as well as the optimization of energy structures to mitigate carbon emissions. These findings provide valuable policy implications for governments and stakeholders seeking to reduce carbon emissions and promote sustainable development.

Analysis of innovation drivers with a mapping innovation approach

Objective of the study: This study aims to identify and analyze the drivers of innovation in Ecuador. Methodology/Approach: The significance of innovation drivers was investigated through an exploratory systematic review using a mapping innovation approach. Statistical methods were used to apply an empirical analysis based on the Ecuadorian survey on Science, Technology, and Innovation Activities (released 2017). Originality/Relevance: As far as we are aware, this is the first study to investigate the drivers of innovation from a comprehensive approach of mapping innovation in Ecuador. Main results: The management of innovation drivers in Ecuador often presents issues for 98% of non-innovative companies. The most relevant innovation driver in Ecuadorian companies is cooperation with external sources where partner geolocations worldwide play a significant role. Theoretical/ Methodological Contribution: This study extends the framework of innovation drivers. The strengths and limitations of Ecuadorian innovation were identified from four perspectives of innovation drivers: internal innovation drivers, external innovation drivers, knowledge for innovation development, and investment in innovation. Social/Management Contribution: This study contributes to the understanding of innovation drivers in developing countries.

Does culture moderate the innovation input–output relationship? A two-stage configurational analysis

PurposeThis study analyses configurations of national culture as boundary conditions of countries’ national systems of innovation (NSI). Drawing from the NSI approach, we argue that culture’s role is that of a contingency factor shaping the relationship between investments in innovation and national innovation outputs.Design/methodology/approachWe assessed the moderation effect of national culture through a systematic, two-stage approach using fuzzy-set Qualitative Comparative Analysis (fsQCA), which allows the analysis of changes induced by the moderator variables. Analyses were conducted with a diverse sample of 61 countries over a period spanning 12 years, from 2011 to 2022.FindingsFindings reveal that investments in innovation, but not individual cultural dimensions, is a necessary condition for high innovation outputs. Furthermore, several configurations of cultural dimensions were identified as moderators of the relationship between investments in innovation and innovation outputs.Originality/valueThis study provides insights into cross-national innovation research by exposing the role of cultural configurations, rather than just individual cultural dimensions, as boundary conditions involved in the achievement of high levels of innovation.

From Innovation to Green: Does China’s Innovative City Construction Contribute to Green Development?

ABSTRACT China’s government has launched the innovative city pilot (ICP) policy since 2008 and taken green development as the principle goal of innovative city construction. However, whether or not the ICP policy shapes green development remains largely unknown. Leveraging variation in the timing of the ICP policy implementation across cities, we investigate the causal impact of innovative city construction on green development, as measured by green total-factor productivity (GTFP). Our staggered difference-in-differences (DID) estimator shows that cities which implement the ICP policy experience a 5.3% increase in GTFP. This effect appears one year after the introduction of ICP policy and shows an upward trend over time. Our mechanism analysis further confirms that the ICP policy effect is driven by green innovation effect, which is realized through the support of innovation policy and increased investment in innovation. Finally, substantial heterogeneity is explained by geographic location, environmental constraint, resource endowment, city size and different levels of innovation. Our paper underscores the pivotal role of innovative cities in promoting green development, which warrants nationwide expansion.

Does innovation help to explain the effect of export on productivity? Evidence from the French dairy industry

Abstract While there is strong evidence that becoming an exporter increases a firm’s productivity, underlying mechanisms that explain such a relationship remain largely unexplored. This paper analyses the contribution of the complementarity between exporting and investment in technology as a potential driver of export-related productivity gains. We employ firm-level data on production and trade combined with information on new products in the French dairy industry to conduct a causal mediation analysis between exporting, innovation investment, innovation output and productivity. Our estimation result show that starting exports increase the productivity by eight percentage points. Our mediation analysis reveals that innovation (investment and output) explains 31 per cent of this productivity growth.

Research on the Impact of Employee Stock Ownership Plan on Enterprise Innovation

This article takes A-share listed companies in China from 2014 to 2022 as research samples to explore the relationship between the implementation of employee stock ownership plans and corporate innovation in listed companies. Research has found that compared to listed companies that have not implemented employee stock ownership plans, listed companies that have implemented employee stock ownership plans have higher innovation investment, and employee stock ownership plans are beneficial for promoting enterprise innovation. Compared with non high-tech enterprises, implementing employee stock ownership plans in high-tech enterprises can increase the R&D intensity of the enterprise. The research conclusion of the paper provides empirical evidence for improving the innovation capacity of enterprises and building an innovative country.

Enterprise innovation and audit pricing: An evidence study from China's A-share listed companies.

Driven by innovation strategy, Chinese enterprises' innovation investment, and research and development capability have been continuously improved, and the audit risk caused by this has attracted widespread attention from the academic community. This study takes China's A-share listed companies from 2013 to 2021 as samples to empirically test the relationship between innovation input and audit pricing of Chinese enterprises. Research shows that the higher the innovation investment, the higher the audit cost. High-quality corporate governance, sufficient research and development personnel, research and development subsidies, and operating cash flow can all play a negative moderating role. A good innovation environment will weaken the positive influence between innovation input and audit fees. This study theoretically confirms the risk-oriented audit pricing mechanism, which is of great significance for optimizing enterprise innovation risk management and improving audit service levels.