Innovation Output Research Articles

Does CSR contribute to firms’ open innovation? Evidence from China

Purpose Open innovation enables firms to incorporate external expertise and resources into their innovations. However, it is far from easy to obtain sufficient support from external contributors due to potential concerns about the risks of opportunism and appropriation. This paper aims to investigate whether firms’ engagement in corporate social responsibility (CSR) contributes to their open innovation, considering the contingency factors of technological capability, environmental dynamism and state ownership based on capability and motivation perspectives. Design/methodology/approach Using a sample of Chinese listed firms covering the period from 2009 to 2018, instrumental variable and propensity score matching approaches were used to address the endogenous problems. Findings This paper obtains empirical results showing that firms engaged in higher levels of CSR produce more joint outputs (co-owned patents) and that this effect is strengthened by technological capability and environmental dynamism. Among state-owned enterprises, CSR engagement is less impactful with regard to open innovation. It is further shown that open innovation is a primary channel through which CSR engagement enhances innovative efficiency. Originality/value This study enriches the knowledge of the antecedents of open innovation and contributes to the debate regarding the relationship between CSR and innovation by establishing a relationship between CSR and open innovation, whereas most prior studies focus on how the input and output of innovation are affected by CSR initiatives.

Exploring the direct impact of environmental, social and governance (ESG) factors on organisational innovation output and institutional isomorphism: a study in the context of multinational life sciences organisations

PurposeThe purpose of this study was to investigate potential direct impact of environmental, social and governance factors (ESG) on organisational innovation and their role as isomorphic factors in multinational life sciences organisations.Design/methodology/approachThe authors applied necessary condition analysis (NCA), using the R statistical tool to determine the direct impact of environmental (E), social (S), governance(G) and composite ESG factors on innovation, represented by research and development (R&D) expenditure across a sample of 86 multinational life sciences companies.FindingsThe study established that ESG factors have a positive impact on the innovation output of multinational firms in the life sciences industry. Further, the study also established that ESG factors act as isomorphic factors in the organisation of multinational life sciences firms in implementing sustainability practices.Originality/valueThis empirical research study was a novel attempt to establish a direct impact of ESG factors on innovation output of multinational life sciences firms. This was one of the first empirical studies to integrate the institutional theory with the resource-based view and thereby demonstrate that ESG factors had a significant role in contributing to institutional isomorphic behaviour, in the form of sustainable innovation as a strategy. This study established the importance of ESG factors in defining the sustainability agenda of multinational life sciences organisations. Lastly, the study elucidates the benefits of the integration of sustainability as a strategy in multinational life sciences corporations.

Exposure of Academic Misconduct and Universities’ Innovation Output: Evidence from Retractions in China

Exposure of Academic Misconduct and Universities’ Innovation Output: Evidence from Retractions in China

US sanctions and the reshaping of Chinese innovation strategies

PurposeAs the China–US trade tensions escalate, the implementation of US sanctions has imposed severe restrictions on the innovation resources of Chinese firms. This study introduces the theory of peer effect to investigate whether US sanctions stimulate a homogenization of innovation strategies among Chinese companies in the same industry, thereby giving rise to an innovation peer effect.Design/methodology/approachThis study utilizes a sample of 4,078 A-share listed companies from 2015 to 2021 and employs a multi-period difference-in-differences (DID) model for analysis.FindingsThe findings indicate that US sanctions significantly stimulate innovation inputs among companies in the same industry, but concurrently, they suppress innovation outputs. Moreover, a higher degree of internationalization weakens the promotion of innovation inputs by US sanctions and amplifies the inhibitory effect on innovation outputs. A high proportion of long-term loans offsets the negative impact on innovation outputs, whereas a high proportion of short-term loans diminishes the positive impact on innovation inputs.Research limitations/implicationsThis study elucidates how external shocks impact companies’ innovation capabilities within the same industry, offering a fresh perspective on understanding the influence of China–US trade tensions on innovation among Chinese firms.Practical implicationsChinese firms should view US sanctions-induced technological challenges as opportunities, fostering breakthrough innovations through industry-academia collaboration. Balancing risk and reward is also key when navigating technological innovation and global strategies.Originality/valueThis study comprehensively reflects the impact of the US sanctions on Chinese firm innovation. It lays the foundation for analyzing the transmission mechanism of other trade policies under the framework of trade friction theory.

Industrial diversity, formal, and informal institutions: a configurational moderation of the innovation input-output relationship

ABSTRACT This study seeks to uncover configurations of industrial diversity and institutions that act as boundary conditions in the conversion of innovation inputs into outputs. Specifically, we analyse how industrial diversity, rule of law, open markets, power distance, and individualism combine to influence countries’ transformation of innovation inputs into innovation outputs. A novel, two-stage fuzzy-set qualitative comparative analysis is used to identify configurational moderation on panel data from 66 countries. Results revealed three distinct equifinal combinations of conditions that moderate the innovation input-output relationship: (1) the presence of open markets and individualism, coupled with the absence of power distance; (2) the presence of industrial diversity, open markets, and individualism; and (3) the presence of rule of law and power distance. These configurations support the presence of high innovation outputs, even when innovation inputs lose importance. This study reconciles the literature on industrial structure with institutional theory and embeds them in the NSI approach. Furthermore, it helps to clarify the current discussions of whether innovation benefits more from industrial diversity or specialisation, or through one cultural profile or another. Thus, the study sheds light on previous inconsistencies in the literature by harmonising different approaches to innovation.

Does R&D make stocks lottery-like?

Using data from Chinese A-share listed companies from 2008 to 2021, this study examines investors' preferences toward research and development (R&D) and their effect on corporate innovation. The study finds that R&D is positively associated with the characteristics of the stock lottery, and this relationship is not caused by historical performance or information asymmetry, indicating that investors may treat R&D as a lottery. Compared with capitalized R&D expenditures, expensed R&D expenditures demonstrate more substantial effects on lottery characteristics. Furthermore, investors' gambling preferences for R&D promote corporate innovation, independent of investor sentiment and mainly achieved through nonfinancing channels. From the perspective of financing channels, debt financing is more effective in enhancing innovation output than equity financing in Chinese capital markets.

Technological innovations of hidden champions: Evidence from patent data

AbstractThe hidden champion concept has received much interest in practice. As market leaders in niche markets, hidden champions represent the success of the (German) Mittelstand. Innovation is a key element of their strategy and their focus and niche market strategy are associated with specific technological capabilities. However, thus far, little quantitative empirical evidence exists about the innovation output of hidden champions. Drawing on a capability perspective and using patent data, the present study analyzes differences between hidden champions and comparable non‐hidden champion firms in their technological innovation. Our results show that hidden champions have a significantly larger technological innovation output but do not have a higher efficiency in their innovation creation compared to other firms from the same industry, size, and age. Moreover, the innovations produced by hidden champions show higher levels of technological depth and indicate lower levels of technological breadth. The sources of technological knowledge of hidden champions seem to be more inward oriented. Finally, innovations of hidden champions have similar technological impact, novelty and quality compared to those of other firms. Overall, our study supports many of the anecdotal beliefs about the innovation of hidden champions contributing to a better understanding of what makes hidden champions different from other Mittelstand firms. Practical implications for hidden champions and Mittelstand firms are discussed.

Organizational culture and educational aspirations of tribal students in higher education

ABSTRACT This study examines the impact of organizational practices on the educational aspirations of tribal students in higher education and establishes the relationship between organizational culture and educational aspirations. Cameron and Quinn’s model of organizational culture was employed to study clan, adhocracy, market, and hierarchy culture examining current and preferred contexts. The study utilized an explanatory mixed-method approach to collect data from 120 tribal students using close-ended questionnaires from different colleges in Odisha, India along with interviews and focus group discussions. The study found clan, adhocracy, and market culture positively correlated with educational aspirations, while hierarchy culture was negatively correlated in the current context. In the preferred context, clan and hierarchy culture had a negative correlation, while adhocracy and market culture showed a positive correlation. Major aspects of organizational practices include learning environment, interpersonal relationships, transformational leadership, motivation, communication, scholastic, and co-scholastic outcomes. Results suggest organizational freedom, a collaborative environment, and creative and innovative outputs motivate tribal students rather than controlling the environment.

Real Earnings Management and ESG Performance in China: The Mediating Role of Corporate Innovations

ABSTRACTThis study addresses whether the positive consequences of corporate innovation can mitigate the negative repercussions of earning management practices on corporate sustainability. Specifically, it investigates the impact of real earning management (REM) practices on corporate environmental, social and governance (ESG) performance. Likewise, it explores the mediating role of corporate innovation inputs and outputs in this relationship. The study uses a sample of the A‐share listed firms in the Chinese stock market from 2011 to 2021. We measure REM activities as a comprehensive index of corporate abnormal cash flows, abnormal production costs and abnormal discretionary expenses. The Chinese firms' ESG performance is based on Huazheng's ESG rating. Corporate innovation is categorised into innovation input (i.e., R&D expenditure) and innovation output (i.e., patent applications). The study finds that REM practices inversely affect corporate ESG performance and its various pillars. Likewise, firms that engage in higher REM practices are less likely to allocate resources to innovation (i.e., lower R&D expenditure) and have a low innovation output (i.e., fewer patent applications). Nevertheless, firms with higher innovation input and/or higher innovation output exhibit higher ESG performance. Finally, the corporate innovation input and output mediate the relationship between REM practices and ESG performance, suggesting that the positive influence of innovation on ESG performance helps to mitigate the negative consequences of earnings management practices. These results underscore the significance of ethical financial practices and innovation‐driven strategies in enhancing corporate ESG performance.

Is “Collaborative Governance” or “Competitive Collusion” the effect of cross-ownership on corporate innovation

PurposeUsing Chinese A-share listed firms between 2007 and 2020 with 21,380 observations, we aim to examine the impact of cross-ownership on firms’ innovation output and explore the underlying mechanisms.Design/methodology/approachTo test the influence of cross-ownership on firms’ innovation output, this paper constructs an ordinary least square regression model. The explained variables are firms’ innovation output, including the total number of patent applications (Apply) and the number of invention patent applications (Apply_I). Considering the long period of patent R&D, we take the value of the explained variables in the following year for regression. Cross-ownership (Cross) is the explanatory variable; Control is the control variable; and ε is the regression residual term.FindingsWe find that cross-ownership significantly promotes corporate innovation output, indicating that cross-owners play an important role in “collaborative governance.” This finding remains unchanged after conducting a series of robustness tests. We also find that cross-ownership contributes to innovation output mainly through two plausible channels: the relaxation of financing constraints and reducing both types of agency costs. Further analysis shows that cross-ownership has a more pronounced influence on innovation output in those firms with higher equity restriction ratios and facing more competitive markets. Moreover, cross-ownership has a profound impact on firms’ innovation quality and innovation efficiency, thereby increasing firm value.Research limitations/implicationsThis study provides important policy implications. First, cross-owners should actively play their resource and supervision advantages to improve firms’ long-term development capability through the “collaborative governance” effect. Second, listed companies in China should be fully aware of the value of the cross-ownership and use the cross-ownership as a bridge to strengthen the cooperative relationship with firms in the same portfolio. Meanwhile, they need to pay attention to cross-ownership’s “collaborative governance” effect to provide an impetus for the healthy development of enterprises. Finally, government regulators should maintain appropriate supervision of the cross-ownership linkage in the market.Originality/valueOur findings show that cross-ownership significantly contributes to firms’ innovation output, indicating that cross-owners play the role of “collaborative governance.” While paying attention to the collusion effect of the cross-ownership, they shall not ignore its governance effect, for example, the promotion effect on the innovation level. Government regulators should appropriately supervise the cross-ownership linkage, which is conducive to maintaining the market order and driving the healthy development of the capital market.

Does a Financial Crisis Impair Corporate Innovation?

AbstractWe examine whether financial crises affect innovation output in the context of the 1997–98 crisis in Japan by developing the data on patent counts and future patent citations. Innovative outputs of firms that relied more heavily on bank finance fell more, and that bank dependence matters more for small firms. By employing semiparametric propensity score weighting methods, we also show that small firms which had long‐term, precrisis relationships with the failed banks exhibited a large decline in innovative outputs. The results suggest that crisis‐induced disruptions in the provision of intermediated funds reduced the innovative capacity of the opaque, bank‐dependent firms.

Exploiting a non-mainstream financial scheme to innovate: SMEs in the developing world

PurposeThe study aims to explore the role of non-mainstream financial schemes in supporting innovation within SMEs in developing countries, particularly in sub-Saharan Africa. It investigates how informal credit, business group affiliation and foreign and state ownership arrangements influence SMEs’ innovative activities in environments with limited access to formal financial resources.Design/methodology/approachThe research utilizes data from the World Bank’s Enterprise Surveys, focusing on 8,466 firms across 11 sub-Saharan African countries from 2011 to 2020. A logistic regression analysis was conducted to assess the impact of various financial sources on SMEs’ innovation outputs, particularly incremental innovations, due to data constraints on radical innovations.FindingsThe findings reveal that informal credit significantly supports SME innovation, while business group resources can hinder innovative activities by restricting firms to routine tasks. State ownership positively influences innovation, whereas the impact of foreign ownership is inconclusive. These results highlight the critical role of alternative financial mechanisms in the innovation activities of SMEs in resource-limited settings.Originality/valueThis study contributes to the literature by providing empirical evidence on the effects of non-mainstream financial schemes on SME innovation in developing countries. It offers new theoretical insights into how SMEs navigate financial constraints to foster innovation and suggests policy implications for improving financial support systems for SMEs in such contexts. The research underscores the importance of contextualizing entrepreneurship studies to better understand the unique challenges and opportunities faced by SMEs in developing regions.

Antecedent and Consequence of Innovation Output: Evidence from Thailand

The study aims to examine the impact of research and development (R&D) investment (the antecedent) on competitive advantage (the consequence) for the innovation output of private firms in Thailand. The population of this study includes all private Thai firms which have registered with the Office of National Higher Education Science Research and Innovation Policy Council. Path analysis and factor confirmation, including correlation matrix, are used to test the mediator effect of innovation output on the relationship between R&D investment and firm performance competitive advantage. The research data are tested and analyzed by the structure equation model. The results reveal that R&D investment was not found to directly influence competitive advantage, while R&D investment indirectly affects competitive advantage through innovation output. The findings of this study demonstrate that innovative output plays a mediating role between R&D investment and competitive advantage. In addition, dynamic capability theory can be used to explain the influences of R&D investment and innovation output on competitive advantage for private firms in Thailand.

Good stress or bad stress? An empirical study on the impact of time pressure on doctoral students' innovative behavior.

In recent years, with rapid societal advancement and profound transformations in knowledge production, doctoral students are increasingly facing significant time pressures. These pressures not only stem from an escalation in research tasks but also from urgent demands for innovative outputs. Grounded in Affective Events Theory, this study explores the dual impact of time pressure on the innovative behaviors of doctoral students in China. It specifically examines how challenge and hindrance time pressures affect doctoral students' innovative behavior through the mediating role of research self-efficacy and the moderating role of supervisor support. This research employed SPSS 26.0 and Mplus 8.3 for statistical analysis, analyzing multi-time point data collected from 452 Chinese doctoral students between May and August 2023. The results reveal that challenge time pressure significantly positively impacts doctoral students' innovative behavior, while hindrance time pressure has a significant negative impact. Furthermore, research self-efficacy partially mediates the relationship between both challenge and hindrance time pressures and innovative behavior. In this process, the moderating role of supervisor support is significant, enhancing the positive effects of challenge time pressure and mitigating the negative impacts of hindrance time pressure, highlighting the importance of supervisor support in optimizing the impact of time pressure and promoting doctoral students' innovative behavior. These findings not only enrich the theoretical framework in the field of time pressure research but also provide practical guidance for universities and supervisors on how to support doctoral students in effectively managing time pressure and fostering their innovation.

Empirical Determinants of Innovation in European Countries: Firm-level Analysis Based on CIS 2018

This study examines the role of perceptions about environmental regulations and their influence on the innovative performance and productivity of firms in Germany, Southern Europe, and Central and Eastern Europe. Utilizing the CDM model for innovative performance and data stemming from the Community Innovation Survey (CIS), we explore the alignment with the Porter hypothesis, which posits that well-designed environmental regulations can stimulate technological innovation and enhance market competitiveness. Our findings present a mixed view: in Germany, positive perceptions about environmental regulations correlate with the initiation of innovation activities, contributing to an increase in labour productivity. This supports the Porter hypothesis, evidencing that regulations can lead to beneficial ‘innovation offsets’ such as reduced resource use and pollution. Conversely, in Southern Europe and Central and Eastern Europe, the perceptions about these regulations on innovation activities are insignificant, with no considerable correlation observed between perceptions about environmental regulations and innovation output. Our findings are crucial for policymakers, environmental regulators, and business leaders aiming to leverage environmental regulations to boost innovation and competitiveness within their regions.

ESG performance and green innovation of Chinese enterprises: Based on the perspective of financing constraints

Sustainable development needs to rely on green innovation. Enterprise ESG performance rating to alleviate the information asymmetry between enterprises and investors, for the green innovation provides development opportunities. However, there is a lack of research on the mechanism of the two based on the perspective of financing constraints. Therefore, considering the theories of sustainable development, green innovation, financing constraints and stakeholders, the basic mechanism and non-linear mechanism of ESG and green innovation are explored, aiming to provide reference for playing the role of ESG performance in promoting green innovation. The results show that better ESG performance can significantly promote the output of green innovation, and this promoting effect exists for both high-end green innovation and low-end green innovation, and its main channel is to alleviate financing constraints. In addition, this incentive exists a double threshold of digital finance and a single threshold of enterprise scale. Perfect digital finance and larger enterprise scale will strengthen the incentive effect of enterprise ESG performance on green innovation output. Considering financing constraints, this study further clarifies the relationship between enterprises ESG performance and green innovation, enriching the theoretical framework of green innovation and offering a new pathway for advancing green innovation among Chinese enterprises.

Magnetic Resonance-Guided Laser Interstitial Thermal Therapy Using Dual-Wavelength Dual-Output Laser Within Two Probe Trajectories for Treatment of Drug-Resistant Epilepsy.

Magnetic resonance-guided laser interstitial thermal therapy (MRgLITT) is a novel tool and a minimally invasive treatment to drug-resistant epilepsy (DRE). The focus of this research was to evaluate the effectiveness and safety of the newly developed dual-wavelength dual-output MRgLITT system LaserRO within two probe trajectories in treating DRE patients. This is a retrospective analysis conducted at a single center, examining patients with DRE who received treatment with the LaserRO MRgLITT system. The system utilizes a sophisticated laser technology that can be configured as conventional single output for single wavelength or innovative dual outputs for dual wavelengths. The study involved a comprehensive review of patient information, encompassing demographics, seizure history, details related to the surgical parameters, and the subsequent clinical results. Primary outcome was post-operation seizure outcome defined as Engel Scale Class at the end of follow-up time. This study included a total of eight DRE patients received MRgLITT surgery between August 2022 and October 2023. Out of these, there were four mesial temporal lobe epilepsy (MTLE), three focal cortical dysplasia (FCD), and one cavernous malformation (CM) patients. Within the two probe trajectories, seven patients had single wavelength (980 or 1064 nm) laser treatment and one patient had dual-wavelength (980 and 1064 nm) laser treatment. The median age of the patients was 27 (22-31) years, with a median follow-up period of 9.7 (8.4-12.1) months. The mean BMI was recorded at 20.24 ± 2.95 kg/m2, and epilepsy history was 13 ± 6 years. The median intraoperative blood loss was 5 (5-9) mL, operation time was 231 (169-254) minutes, and length of stay (LOS) was 3 (3-5) days. The mean ablation volume ratio was 96.52% ± 3.67%. In terms of outcomes, over a median follow-up time of 9.7 (range 8.4-12.1) months, there were two patients got Engel I, five patients got seizure-free, and one patient decreased 75% seizure. Importantly, no serious complications following the procedures occurred. The preliminary results indicate that the MRgLITT procedure, which operates dual-output laser with single or dual wavelengths (980/1064 nm) within the two trajectories, is both effective and safe as a minimally invasive approach for different types of DRE patients.

The effect of ESG ratings on corporate green innovation strategies: evidence from China

Environmental, social, and governance (ESG) approaches have gained popularity in academia and are typically linked to corporate green innovation. Although some scholars argue that corporate green innovation is merely greenwashing carried out in reaction to market pressure from ESG ratings, most research conducted thus far has shown that ESG exerts a beneficial influence on increasing corporate green innovation outputs overall. This study's analysis of panel data from Chinese A-share listed enterprises from 2010 to 2019 demonstrates that, while ESG ratings increase the likelihood of incremental green innovation in areas of current knowledge, they diminish the percentage of exploratory green patents. The managerial myopia brought about by ESG ratings is a key mechanism leading to this result. Extensive study indicates that analysts and managers who pay greater attention to environmental issues may be able to alleviate the negative effects of ESG scores on managerial myopia and company’s incremental green innovation practices.

Intellectual property protection intensity and regional technological innovation structure: Based on the perspective of economic complexity theory

Exploring the intrinsic link between the intensity of intellectual property protection and the optimization of regional technological innovation structure from the perspective of economic complexity theory. Using panel data and employing the dual fixed effects estimation method, we empirically examine the impact of intellectual property protection strength on innovation factors, the innovation environment, and innovation output. Our study finds that intellectual property protection has a positive incentive effect on knowledge acquisition, knowledge creation, the innovation environment, and substantive innovation, while it inhibits non-substantive innovation. Strong intellectual property protection effectively promotes the optimization of innovation factors, the innovation environment, and innovation output structures, thereby driving the optimization of the regional technological innovation structure. In terms of impact magnitude, the order from high to low is: knowledge creation, substantive innovation, innovation environment, knowledge acquisition, and non-substantive innovation. The “optimal intensity” of intellectual property protection significantly promotes the optimization of the regional technological innovation structure, whereas excessively strong or weak intellectual property protection hinders this optimization. Implementing a strategy of innovation-driven development requires further reform and improvement of the national intellectual property protection system to establish the optimal intensity of protection and promote the optimization of the regional technological innovation structure.

Economic Growth Targets, Innovation Transformation, and Urban Carbon Emissions: An Empirical Study of the Yangtze River Delta

In the face of carbon emissions reduction efforts, which are a common but differentiated global responsibility, it is crucial to explore the potential synergistic path between economic growth and carbon emissions reduction. This study integrates economic growth management and carbon emissions into a theoretical framework, based on city-level panel data from 2005 to 2019 in the Yangtze River Delta and the fixed effects model. We explore the impact of economic growth targets on urban carbon emissions. Then, we explore the mechanism by which economic growth target affects carbon emissions with the mediation effect model and moderation effect model. The results reveal that economic growth targets are beneficial for carbon reduction, and innovation development from innovation transformation is an important mechanism driving carbon emissions reduction, but the effects of different innovation outputs exhibit notable variations. In addition, marketization and industrial structure affect the relationship between economic growth targets and carbon emissions. The heterogeneity analysis reveals substantial spatial and temporal differences. Based on the realities of developing countries’ ongoing economic targets, this study provides a new explanation for the relationship between government policies and carbon emissions, establishing a scientific basis for policymakers to formulate strategic green development policies.