Low Technological Intensity Research Articles

Smart specialization of industrial regions of Ukraine: organizational and economic support

Industrial regions of Ukraine, especially near-front territories (Donetsk, Luhansk, Kharkiv and Zaporizhzhia regions), suffered the greatest damage and losses as a result of the full-scale war. The needs for their recovery, according to the joint assessment of international institutions and the Ukrainian government, constitute half (50.46% or $207.2 billion USD) of the reconstruction needs for Ukraine. Considering the structural lag of the economy in industrial regions, dominated by sectors with weak innovation activity and low technological intensity, the continuation of pre-war development trajectories is absolutely unacceptable and non-competitive in the context of the Industry 4.0-5.0 which gains traction globally. In the conditions of a significant change in the profiles of industrial regions due to the war, there is an opportunity to revive their economy but on fundamentally new, innovative principles. Smart specialization can be utilized for this purpose, aiming at the structural transformation of the economy and the development of new competitive advantages for regions and countries. Emphasis is placed on the necessity of conducting a critical analysis and rethinking the implementation directions of smart specialization in the industrial regions of Ukraine. This is due to the varying degrees of consideration of its fundamental principles in the regional development strategies for 2021-2027 and the need for the structural transformation of their economies to overcome the consequences of the war for the local population. The purpose of the article is to identify key problems in the field of organizational and economic support for the implementation of the smart specialization approach in the industrial regions of Ukraine and to determine ways to solve them, taking into account purely Ukrainian challenges and EU experience. The role of organizational and economic support for the implementation of the smart specialization approach in national conditions has been substantiated. The scientific understanding of the main organizational and economic problems and shortcomings of the implementation of the smart specialization approach in the industrial regions of Ukraine has been deepened. It is highlighted that freezing these problems and the absence of appropriate actions to address them will prevent structural and innovation transformations in the economies of regions based on the principles of sustainable development, thereby excluding the possibility of overcoming their structural backwardness. Proposals on ways to solve existing organizational and economic problems are substantiated, taking into account purely Ukrainian challenges, and the knowledge obtained in the EU member states during the implementation of this approach over the last ten years. The practical implementation of these proposals will make it possible to adjust the smart-oriented goals and sectoral focuses of regional development strategies, to direct them to the transformation of the economy of industrial regions through the support of sectors and industries that have the potential to develop new competitive advantages.

Information communication technology and manufacturing industry exports based on technology intensity in OECD and non-OECD countries

Studies on the effect of Information and Communication Technology (ICT) on the export of the manufacturing industry, as disaggregated into the low-, medium-, and high-technology intensity, were lacking. However, the trade impact of ICT is mixed and relies on countries’ development and adoption of technology. To this end, this study explicitly contributes to this strand of literature. By using some key and popular ICT indicators we examined the comparative influence of ICT on the manufacturing industry exports defined by their technology intensity/adoption in OECD and non-OECD countries. A panel data technique with the PPML (Pseudo-Poisson Maximum Likelihood) covering the period 2010–2018 was applied for the analysis. Our empirical strategy indicates that internet use only promotes manufacturing exports of high-technology intensity in OECD countries. Low-technology intensity manufacturing exports were negatively affected by an increase in the use of the internet in all the samples of non-OECD and OECD economies. Except for high-technology, an increase in mobile phone subscribers is associated with increased manufacturing exports in all categories of industries and all sample countries. Broadband subscriptions only positively affect exports of low-technology intensity in OECD countries and negatively affect exports of medium-technology in non-OECD countries. The economic complexity index shows a positive influence on exports in OECD and non-OECD countries except for low-technology intensity. Human capital has been found to influence manufacturing exports in OECD countries and reduce exports in non-OECD countries. In both the OECD and non-OECD countries, positive and significant effects of GDP and trade were observed in all categories of technology adoption. These findings imply that in OECD and non-OECD countries ICT is an important aspect worth considering in trade policy making due to its significant influence on exports. ICT services need to be checked by the government to ensure quality, efficient, and effective delivery for better export. Findings also support the practical significance of ICT especially in developing OECD countries.

Formação da força de trabalho na economia primário-exportadora brasileira

Abstract This study presents the results of a research on the jobs that have been generated by an economy undergoing a process of deindustrialization and reprimarization, concomitant with strong influxes in scientific and technological education. The objective was to evaluate the impact of the Brazilian economic structure on public educational policies for the formation of the labor force necessary for this market, especially for those graduating from high school and vocational education. Because it is a period in which insertion into the world of work becomes equivalent to education, the last stage of basic education plays an important role, especially for those who live from work. However, between expectation and reality, occupations have been of low and medium complexity, even in the face of rising juvenile schooling. With low technological intensity of its productive structure, the education for young people tends to be oriented to supply the human resources for this economy. This study is based on data available from the Ministries of Labor, Education, and the Economy, IBGE, IPEA, and ILO, anchored on a theoretical framework related to the themes of education and labor. As a result, it is possible to infer an economic (re)taking of low technological activity underway, and a corresponding pressure on technical-scientific education for the training of workers destined for this growing market.

The role of network relations and previous knowledge in the ACAP of low-tech intensity clusters

PurposeThe mainstream research on knowledge transfer and absorptive capacity (ACAP) in clusters was conducted in high-technology industries in developing countries. However, low technology intensity clusters present a different scenario that might affect this external knowledge transfer and ACAP. This study aims to understand the role of network relations and previous knowledge in the ACAP of a low-technology intensity cluster.Design/methodology/approachThe authors analyzed companies from a low-technology industry in an emerging country. The authors collected 109 questionnaires from companies in the Brazilian footwear manufacturing cluster. Factor analysis led the independent variables to be regrouped into eight variables. This data set was analyzed using regression techniques.FindingsIn a low-tech cluster prevalently populated by small companies, companies have access to novelties and knowledge that influence their products and production through the frequency and stability of the network’s relational ties with the supplier. The quality of relationships with clients may provide access to products, materials, technologies and learning. Small companies consider intra-cluster competition because of limitations in accessing external competition. Although low-tech companies need to exchange knowledge and technology with suppliers and clients outside the cluster, most companies are limited in size because of liabilities. In a low-tech cluster dominated by small companies, access to better purchasing costs, new technologies or innovations is an expected weakness. Intra- and extra-cluster ties positively influenced ACAP, as did organizational capabilities, whereas employees’ skills did not.Originality/valueIndividual skills are not related to ACAP in low-technology intensity clusters. The level of ACAP in small and medium enterprises (SMEs) can be explained by the scope of individuals’ knowledge and other individual capabilities.

Global cancer research in the post-pandemic world.

Global cancer research in the post-pandemic world.

The effect of absorptive capacity on the financial performance of Brazilian and Portuguese companies in a low technological intensity sector

The digital transformation has driven a more assertive absorption of external information and knowledge in all economic activities, especially in the low technological intensity sector, where competition has been fierce. In this way, the use of information and knowledge can provide companies with higher performance before its competitors. Thus, this study seeks to verify the effect of absorptive capacity (ACAP) on the financial performance of Brazilian and Portuguese companies that operate in low technological intensity sectors. The study is part of initial research that addresses ACAP in sectors that do not release innovations in the market. A survey was carried out based on validated scales, but adapted to the low technology sector. Then, a new validation of the scales was carried out and a t-test was performed to check if there are differences and regression analysis to answer the hypotheses. The results showed that ACAP has an effect on financial performance, both in the Brazilian and Portuguese context, being higher in Portuguese companies. In addition, it was also shown that the two dimensions of ACAP have different influences on financial performance, when considering the two contexts. It can be concluded that ACAP can be applied in sectors of low technological intensity, as this has an influence over the financial performance of companies.

The effect of the industry technology intensity on the drivers of manufacturing backshoring

PurposeThe paper aims to explore the influence of the industry technology intensity on the drivers of manufacturing backshoring.Design/methodology/approachAn analysis of backshoring factors in recent cases of backshoring in the European manufacturing industry based on original qualitative and quantitative information collected from different databases. This analysis was performed using different econometric models applied to samples of firms classified by technology intensity of industries.FindingsDrivers of backshoring are conditioned by the technology intensity of the industries. The models that analyse firms classified by technology intensity of the industries have a good explanatory capacity with few key factors. In industries with low-technology intensity, backshoring is a cost-oriented strategy and the drivers are linked to internal process optimisation and external factors related to labour and logistics costs in the host location. In industries with high-technology intensity, backshoring is mainly an innovation-oriented strategy and the key drivers are those related to the internal innovation capacity for improvement of the technological level of manufacturing processes. The research also identifies the more suitable theoretical approaches for explaining backshoring drivers in each type of industry according to its technology intensity.Originality/valueThis research analyses the backshoring drivers by means of models applied to firms classified by the technology intensity of industries. It also reinforces the dynamic perspective of time to analyse backshoring as a reassessment of location decisions made after prior offshoring.

Perceptions of barriers to innovate in Colombian manufacturing firms: an analysis by technological intensity

PurposeThe purpose of this study is to investigate the factors that impede innovation in Colombian manufacturing firms, as measured by the level of technological intensity.Design/methodology/approachThe authors used data from 1,850 firms to determine the barriers associated with information and internal capabilities, risks and environment.FindingsThe main results of this study confirm that potentially innovative firms of low technological intensity are more likely to ascribe high importance to obstacles associated with information and internal capabilities, when compared with innovative firms. The abandonment of innovative projects, family-operated enterprises and investment in R&D are all related to an increased perception of obstacles to innovation, while investments in information and communication technologies have an opposite effect. Variables as partnerships and export behaviour, have different effects depending on the level of technological intensity.Originality/valueThis study investigates the obstacles to innovation of a firm as determined by its characteristics and as measured against its level of technological intensity. Previous studies have investigated barriers to innovation in technologically advanced sectors (Lachman and López, 2019) and technology-based SMEs (De Moraes Silva et al. 2020) or how the technological intensity of the firm determines access to university knowledge for overcoming barriers (Kanama and Nishikawa, 2017). The only study to analyse barriers to innovation by measuring a firm’s technological intensity was conducted into Mexican manufacturing and services sector companies by Santiago et al. (2017).

Relationship between market and institutional networks and technological innovation: an analysis of peruvian manufacturing firms

Firms strive to develop technological innovations. This study focuses on two main objectives: to identify the relationship between market and institutional networks and technological innovation; and to analyze the relationship between the obstacles that firms assess when developing innovations. The literature shows that there has been little interest in researching innovation in emerging economies, in which there is a greater presence of low-technology intensity firms that also develop technological innovations. Using data from 705 Peruvian manufacturing firms, a partial structural equation model was applied. The results showed that when firms are linked to networks, their capacity for technological innovation improves.

Interrelated effects of technological and non-technological innovation on firm performance in EM – A mediation analysis of Peruvian manufacturing firms

PurposeFirm innovative performance in emerging markets must take into account the peculiarities of their competitive environment. Research on the effect of innovation on firm performance focuses mainly on high-tech firms in developed countries. This study proposes a model that empirically examines how technological and non-technological innovation influence Peruvian manufacturing firms' performance.Design/methodology/approachUsing the resource-based view, a model is proposed that allows the mediation effects of technological innovation and non-technological innovation on firm performance among low and medium-low technological intensity manufacturing firms to be analyzed. The study uses structural equation modeling and mediation analysis with data from 503 Peruvian firms researched in the 2012 National Survey of Innovation.FindingsThe model's validation shows that the integrated perspective is relevant for emerging markets like Peru. Moreover, the results confirm that technological and non-technological innovation and their interrelationship are important for understanding the performance dimensions of Peruvian manufacturing firms.Originality/valueThis paper contributes to the literature on innovation in Latin American economies, proposing and validating a model that combines the mediation effects of technological and non-technological innovation to explain the relevant dimensions of firm performance in emerging markets.

Follow the smoke: The pollution haven effect on global sourcing

AbstractResearch abstractWe examine whether and how foreign environmental standards influence global sourcing decisions. Taking a question‐driven approach, we find a negative association between the stringency of a country's environmental standards and its share in US imports for 82 manufacturing industries across 77 countries between 2006 and 2016. This pollution haven effect holds not only for sourcing from owned foreign operations (offshore integration), but also for sourcing from unrelated third parties abroad (offshore outsourcing), and is stronger in industries with high toxic emissions and low technological intensity. These results are robust across alternative measures of environmental stringency and to using the Kyoto Agreement as an instrumental variable. These findings shed new light on how firms use global sourcing, and especially offshore outsourcing, to arbitrage across institutional environments.Managerial summaryPrior work has shown that multinational firms prefer to locate their plants in countries with weak environmental standards: the so‐called Pollution Haven Effect. We extend this research to show that firms not only source from countries with weak environmental standards from their own plants, but also from third‐party foreign suppliers. Using Census data on US manufacturing imports from 77 countries between 2006 and 2016 we show that when the stringency of environmental standards in a country decreased, sourcing from that country increased, and that this effect was just as strong for sourcing from third parties as from owned operations. Our study thus suggests that previous work may have substantially underestimated the pollution haven effect, by focusing on owned global sourcing rather than all global sourcing.

Efeito mediador do desempenho inovador na relação entre aprendizagem, capacidade de inovação e desempenho organizacional

Este estudo teve como objetivo verificar o efeito mediador do desempenho inovador (DI) na relação entre a capacidade de aprendizagem organizacional (CAO), a capacidade de inovação organizacional (CIO) e o desempenho organizacional (DO) na indústria têxtil do Estado de Santa Catarina (SC). Para tal, foi desenvolvida uma pesquisa quantitativa exploratória, com dados primários provindos de survey aplicado em 322 gestores do mesmo número de empresas. O tratamento multivariado dos dados foi realizado mediante análise fatorial confirmatória e modelagem de equações estruturais por mínimos quadrados (PLS). Para testar a mediação foi utilizada a análise dos caminhos de Baron e Kenny (1986). Os resultados confirmaram o efeito mediador do desempenho inovador da relação entre CAO, CIO e desempenho organizacional. Dentre as contribuições teóricas deste artigo têm-se a proposição e validação de um modelo desenvolvendo argumentos a favor da CAO e da CIO para alavancar o desempenho inovador e organizacional em mercados emergentes como o brasileiro. Também o foco no setor têxtil, negligenciado pela literatura de inovação, por se tratar de uma indústria madura e de baixa intensidade tecnológica, mas altamente inovadora. A contribuição prática pretende auxiliar gestores e profissionais na análise dos vetores vinculados à geração de desempenho inovador e organizacional superiores, oportunizando a vantagem competitiva frente aos concorrentes. A contribuição social se relaciona ao benefício que o estudo da inovação outorga à sociedade, pois ela contribui com a evolução de produtos, organizações e crescimento econômico, oferecendo bases para novos empreendimentos, empregabilidade e qualidade de vida.

Brasil e Estados Unidos: Uma análise do comércio internacional e bilateral no período 2005-2016

RESUMO: As relações comerciais entre o Brasil e os Estados Unidos são antigas e datam desde a independência do Brasil. Os Estados Unidos sempre foram um importante parceiro comercial do país, no entanto, seu peso na pauta de comércio brasileira tem se reduzido paralelamente à intensificação da fragmentação internacional da produção e ao crescente destaque da parceria do Brasil com a China. O objetivo do artigo é apresentar uma análise comparativa da inserção do Brasil e dos Estados Unidos no comércio internacional e da relação comercial entre eles no período recente (2005-2016). A análise estatística por meio dos dados da COMTRADE demonstrou que os principais produtos da pauta de exportações brasileira para os Estados Unidos apresentam maior grau de sofisticação tecnológica, do que a pauta para o mundo. Os resultados também apontam para uma maior concentração nas exportações do que nas importações do Brasil e uma tendência de crescimento do grau dessa concentração. O Brasil apresenta uma especialização muito maior em produtos de baixa intensidade tecnológica, porém há uma maior presença de produtos com mais intensidade tecnológica nas exportações para os Estados Unidos, demonstrando a relevância das relações com esse parceiro comercial no período recente.
 PALAVRAS-CHAVE: padrão de especialização comercial, relações bilaterais, pauta de exportação.

A Few Implications of the COVID‐19 Pandemic for International Business Strategy Research

A Few Implications of the COVID‐19 Pandemic for International Business Strategy Research

Follow the Smoke: The Pollution Haven Hypothesis in Global Sourcing

In this study, we empirically examine the pollution haven hypothesis (PHH) in the context of global sourcing. We argue that firms may not only directly invest in establishing operations in countries with weak environmental standards, they may also source from third parties in such countries to take advantage of weaker standards indirectly. Empirical analysis of foreign product flows into the US from 77 countries across 84 industries supports this argument, showing that the share of sourcing from a country increases as its carbon emissions per capita rise. This result holds for both offshore outsourcing and offshore integration, and is robust to the use of the Kyoto agreement as an instrument. Supplementary analyses also show that these results hold irrespective of an industry’s toxic intensity, concentration, or capital intensity, and are more pronounced for industries with low technological intensity. By providing robust empirical evidence for the PHH in the context of global sourcing—especially offshore outsourcing—our study draws attention to an important but hitherto largely neglected aspect of the role of environmental standards in driving international business choices.

Analyzing the Medium-Low and Low- Technology Firms’ Innovative Behavior in an Emerging Economy

Objective. Design a model that shows what factors favor the development of technological innovation in manufacturing companies of medium-low and low technological intensity. Methodology. A sample of 1106 manufacturing companies that participated in the innovation surveys in 2012 and 2015 was used, applying the partial structural equations approach and estimating the invariance between the two groups. Results. The results of this study from the structural model, which allow obtaining the positive and statistically significant coefficients, which allow empirically validating the hypotheses. Conclusions. It was evidenced that non-technological innovation, absorption capacity and technologicalacquisition favor technological innovation in companies with low technological intensity.This article confirms that manufacturing companies should guide efforts to improve their capacity for innovation.

Market orientation and product innovation: the mediating role of technological capability

PurposeThis study aims to examine the relationship between market orientation and product innovation and the mediating role of technological capability in this relationship. It also aims to examine the effect of market orientation on product innovation within the framework of technological intensity classification of the fields of business activity.Design/methodology/approachThe research data were obtained from 186 senior and mid-level managers of 627 manufacturing firms that are widely considered to be innovative, and that are ranked among Turkey's largest 1,000 manufacturing firms (ISO 1000). The data were analyzed using partial least squares structural equation modeling.FindingsCustomer orientation and interfunctional coordination, two distinct dimensions of market orientation, had positive effects on product innovation. Technological capability played a mediating role in the effect of customer orientation and interfunctional coordination on product innovation. In addition, interfunctional coordination positively affected product innovation in firms with low technological intensity, whereas customer orientation positively affected product innovation in firms with medium-high technological intensity.Practical implicationsFor the success of product innovations, firms should establish mechanisms to obtain information about customer needs and expectations and to disseminate and effectively use this information among organizational functions. They also need to improve their technological capabilities to effectively transform market knowledge into product innovation.Originality/valueThe relationship between market orientation and product innovation has been examined in previous studies; however, there is an insufficient number of studies on the mediating role of technological capability in this relationship. This study aimed to eliminate the gap in the literature regarding the mediating role of technological capability. In addition, innovation activities of firms vary depending on the technological intensity, but only a limited number of evaluations have been conducted on this subject. This study contributes valuable knowledge to the relevant literature by examining the impact of market orientation dimensions on product innovation according to technological intensity.

Evaluating the Factors that are Affecting the Implementation of Industry 4.0 Technologies in Manufacturing MSMEs, the Case of Peru

The micro, small, and medium enterprises (MSMEs) sector plays a very crucial role in the economic and social development of Peru. Unfortunately, the tough access to the use of technologies is one of the weaknesses of this type of enterprises, which implies a low technological intensity production, according to the new technological trends. This study analyzes the factors that are affecting the implementation of Industry 4.0 technologies in Peruvian micro, small, and medium enterprises. According to the findings from the semi-structured interviews, it has identified four factors that respond to the main question of this research—lack of advanced technology, lack of financial investment, poor management vision, and lack of skilled workers. Data from 49 enterprises from the manufacturing sector were used for the assessment. The surveys conducted on business managers were evaluated using a multi-criterion decision-making method by the analytic hierarchy process. The findings of the study generate some recommendations that could be beneficial for the sectors involved with micro, small, and medium enterprises in Peru.

Las Mipymes tecnológicas peruanas al 2030. Estrategias para su inserción a la industria 4.0

Introducción: Las Mipymes tecnológicas peruanas constituyen un sector de mucha trascendencia para el desarrollo económico y social del país a mediano y largo plazo, sin embargo, el número de estas en el país es reducido, pues en la actualidad son predominantes las Mipymes no tecnológicas. De ahí que, una de las características de este tipo de empresas sea el difícil acceso al uso de tecnologías y la gestión del conocimiento, generando la producción de bienes de poca intensidad tecnológica y no acordes a las tendencias tecnológicas emergentes, propiciando con ello su escasa competitividad e inserción a la industria 4.0.Método: El objetivo del presente estudio prospectivo consistió en explorar los futuros posibles de las Mipymes tecnológicas peruanas al año 2030, para esto –con la intervención de expertos peruanos y mexicanos en Mipymes y prospectiva– se identificaron las variables claves que incidirán en el futuro de aquellas, se diseñaron escenarios sobre sus procesos de innovación y se eligió el escenario apuesta al año 2030. Asimismo, con el análisis de tendencias se identificaron futuras oportunidades de negocios de base tecnológica orientadas a las Mipymes peruanas.Resultados: El estudio prospectivo permitió identificar dos variables determinantes para el desarrollo a futuro de las Mipymes tecnológicas peruanas, dichas variables son “Educación en emprendimiento” y “Marco normativo articulado y sistémico que impulse el desarrollo tecnológico y la innovación”. Finalmente, para la construcción futura de dichas variables se propusieron diversas acciones a seguir.Conclusión: Las Mipymes peruanas constituyen un conglomerado empresarial de mucha importancia para el desarrollo económico y social del país, pero es trascendental que se conviertan en Mipymes de base tecnológica. Para ello es necesario que el Perú diseñe e implemente un marco normativo sistémico y facilitador del emprendimiento acorde a las nuevas tendencias tecnológicas a partir de la diversidad geográfica, biodiversidad, y riqueza cultural del país.

Nivo proizvodne specijalizacije - Srbija i nove članice EU

The paper examines the level and changes in production specialization (diversification) characteristic of the manufacturing industry of Serbia and the member states that joined the EU in 2004 and after. The authors aim to analyze the direction of structural changes in Serbia's manufacturing industry and make comparison with the situation in the new EU member states, as well as determine whether those changes that show the same trends as GDP per capita movements are characterized by specialization growth, especially in terms of medium-high and high technology manufacturing activities. Industrial sector specialization index is used to determine the level of specialization of manufacturing industry production sectors and activities. Changes in specialization are analyzed by observing the changes in the mentioned index over a five-year period. The level of specialization of manufacturing sector is compared to the level of GDP per capita and its growth rate. In order to analyze the level of specialization of industry sectors and activities in Bulgaria, the Czech Republic, Estonia, Hungary, Lithuania, Romania, Slovakia, Slovenia and Serbia, the comparison method was used. The results of the research indicate that the direction of structural changes in Serbian manufacturing industry does not follow the usual pattern, i.e., the lower level of GDP per capita results in a higher level of production specialization, while the lower level of specialization and smaller number of activities leads to low technology intensity of production, which is not the case with the new EU member states.