Private Sector Innovation Research Articles

The Role and Dynamics of Actor Relations in Implementing Defense Industry-Based Policies: A Comparative Study of Indonesia and Brazil

This study explores the role and dynamics of actor relations in implementing defense industry-based policies through a comparative analysis of Indonesia and Brazil. The aim is to understand how key actors—government bodies, military institutions, state-owned enterprises, private companies, and international partners—affect policy execution and defense industry outcomes in both countries. Employing qualitative research methods with secondary data sources, the study examines the contributions and interactions of these actors as detailed in the provided table. The findings reveal that Indonesia relies heavily on state control and international partnerships for technology transfer, while Brazil integrates private sector innovation and diverse international collaborations. Key differences include Indonesia’s centralized approach versus Brazil’s market-oriented model, with implications for policy alignment and capability development. The conclusions emphasize the importance of effective communication and stakeholder alignment to address challenges such as misalignment between military needs and industrial capabilities. Recommendations for both countries include enhancing collaboration and technology transfer, managing internal conflicts, and optimizing resource allocation.

Decolonizing AI: Implementing Humanitarian Artificial Intelligence

In this article, we critically examine the implementation of what Carlos Montemayor calls Humanitarian Artificial Intelligence from a decolonizing perspective. We highlight the dichotomy of optimism and fear surrounding AI, elucidating its potential to address fundamental human problems and the risks of monopolistic control. We critique Montemayor’s proposal to align AI with a human rights framework, arguing that it insufficiently addresses global inequalities. Our tripartite analysis focuses on the distribution of AI resources, language inclusion, and content diversity to ensure AI benefits all humanity. We emphasize the need for equitable access to AI, linguistic diversity in AI training data, and the preservation of marginalized epistemologies. We advocate for strategies to mitigate environmental impacts and avoid cultural imperialism disguised as altruism, calling for a balanced approach between private sector innovation and state regulation to foster a truly humanitarian AI.

Research on the Rapid Development of China's Industrial Economy and Its Enlightenment to Vietnam

In recent years, facing profound adjustments in the global economy, China has clearly formulated and implemented strategies for the development of its industrial economy. These strategies include strengthening infrastructure, enhancing workforce quality, and expanding both domestic and international markets, effectively spurring rapid growth in the industrial sector. Despite significant achievements, China's industrial sector still faces challenges such as environmental pollution, limited innovative capacity in key technological areas, insufficient investment in basic research, and inadequate development of international markets. Drawing from China's experiences, it is suggested that Vietnam adopt similar strategies to modernize and internationalize its own industrial economy. This approach could accelerate Vietnam's industrial progress and boost its global competitiveness. However, Vietnam should adapt these strategies to its own unique context, emphasizing innovation-driven growth, high-value industries, and digital infrastructure development. By balancing state-driven industrial growth with private sector innovation, Vietnam can establish a resilient and competitive industrial base for long-term success.

Recent Developments in Indian Central Banking: Flying through Turbulence but Aided by Some Tailwinds

This paper, an extension of our earlier work, presents a narrative of select broad aspects of Indian central banking during the pandemic and thereafter. As elsewhere, Indian monetary policy during the pandemic was characterized by substantial monetary expansion both in terms of rate cuts as well as asset purchase programs. The inflation targeting regime of Indian monetary policy was put to severe stress following the spurt in inflation after the pandemic. Besides, there have been two positive developments in Indian central banking. First, there has been significant improvement in the balance sheets of the Indian banking sector, following the institution of an effective corporate bankruptcy regime, write‐offs of earlier stressed assets, and recapitalization of public sector banks by the government. Second, India has made substantial progress in terms of adopting various facets of its digital financial infrastructure, where public initiatives were accompanied by private sector innovations. The digitalization of payments increased in both quantum and value and has touched the lives of the public through the ease of making daily payments, including the smallest of transactions.

THE INTERPLAY BETWEEN E-COMMERCE OPTIMIZATION, CONSUMER TRUST, AND IMPULSIVE BUYING: A COMPREHENSIVE ANALYSIS

This study investigates the burgeoning e-commerce market in Thailand, focusing on consumer trust, e-commerce optimization, and impulsive buying behaviors among Generation Z. With a significant portion of Thailand's population engaging in online shopping, the study aims to understand the factors influencing consumer trust and the impact of e-commerce optimization on impulsive buying. Using a quantitative approach, data were collected from 721 respondents aged 18-28 and data analysis using SEM-PLS. The main findings show that e-commerce optimization has a significant positive correlation with consumer trust (R² = 0.965) and impulsive buying (R² = 0.988). This research provides practical contributions for e-commerce practitioners to enhance their marketing and operational strategies based on these findings The results indicate a strong positive correlation between consumer trust and e-commerce optimization, The practical implications of these findings suggest that e-commerce platforms should focus on enhancing their security features and user-friendliness to foster consumer trust, which in turn can lead to increased impulsive buying. Additionally, businesses can utilize these insights to design more effective marketing strategies that leverage consumer trust to drive impulsive purchases. This research provides practical contributions for e-commerce practitioners to enhance their marketing and operational strategies based on these findings. Despite challenges such as consumer trust issues and logistical inefficiencies, the potential for e-commerce growth in Thailand remains substantial, driven by government support and private sector innovation.

Effectively financing private sector innovation? Toward a conceptual policy framework

Abstract Our understanding of innovation policies has been enhanced. However, there is still a gap in conceptualizing the effectiveness of one of innovation policy’s most important tools: financial incentives (FIs). Scholars developed an understanding of the effectiveness of direct versus indirect FIs, but there is no clear theoretical framework that delineates what kind of financial instruments impact what kind of innovation under what conditions. This paper analyzes the different working and operational logic of the wide array of employed FI worldwide to develop what is, to the best of our knowledge, the first conceptual framework discerning what financial tools fit what aims and contexts. This framework allows the development of testable hypotheses as well as the development of incentives tailored differently for different national innovation missions and market structures, suggesting that the growing reliance among OECD countries on indirect FIs in the form of tax incentives is less then optimal.

Implications of a U.S. CBDC for International Payments and the Role of the Dollar

Technological advances in recent decades have brought about a wave of private-sector innovation in payments and have led central banks to explore a variety of improvements to their payment systems, including the possibility of issuing a central bank digital currency (CBDC). Survey evidence from the Bank for International Settlements (BIS) shows that over 90% of central banks are exploring CBDCs (Kosse and Mattei, 2022). The Federal Reserve is also exploring the implications of, and options for, introducing a CBDC.

Vanquishing the Paper Trail: An Update on Progress in Moving to a Global Paperless Trading System

One of the most enduring features of global trade across the centuries has been the necessity for paper documentation to accompany goods. The costs and inefficiencies associated with this universal requirement have been recognised by governments and the private sector for well over twenty years now, as have the potential benefits of moving to a paperless trading system where information flows are digitalized. There have been significant developments towards the realization of a seamless paperless trading environment since the Covid-19 pandemic, driven both by private sector innovations and government reforms such as the passage of the Electronic Trade Documents Act 2023 in the United Kingdom. The latter is a particularly significant development that will allow for the legal recognition of key trade documents, a critical step in allowing the development of paperless trading systems. Despite this and other steps forward, implementation of the measures necessary to achieve a truly seamless global paperless trading system is far from comprehensive, and some regions of the world lag behind, as does implementation of certain cross-border paperless trading measures (e.g. electronic exchange of anitary and phytosanitary certificates). paperless trade, cross border paperless trade, digital trade; paper documentation, FTAs and paperless trade, trade facilitation, digital trade

Reducing the gap between rhetoric and reality: Use of Digital Service Standards for public service innovation through digital transformation in Australia

AbstractNearly a decade ago, the Australian Federal Government introduced a Digital Service Standard (DSS) for new and redesigned government services. This was an opportunity to encourage digital services and disruptive innovations to help the government improve citizens outcomes, and indeed there was a significant uptake in the digital services assessments offered by the program with key government agencies across health, human services, taxation, and education on board. However, by the 2020s the number of publicly visible assessments had significantly reduced. The initial broad adoption and recent reduction in numbers present an opportunity to explore the effectiveness of this government innovation management program that was ahead of its time. This paper reviews the impact of the DSS in fostering public service innovation and presents lessons learnt from the program. To perform this analysis, this research evaluates to what extent the DSS applied common private sector innovation management approaches of Innovation Process Management and Innovation Portfolio Management in the public sector. It also looks at the impact of these programs in encouraging specific types of modern digital innovations. The analysis draws on DSS assessments from 2015 to 2021 and considers how the program demonstrated public sector innovation leadership. This paper proposes a framework to improve the DSS by tailoring its approach for new and existing services, adopting specific standards to encourage incremental and disruptive innovations, and promoting more transparent reporting and funding of innovation management programs. This evaluation found that the DSS exemplifies Innovation Process Management in its use of stages and gates, and Innovation Portfolio Management in its use of targeted assessment criteria across innovation portfolios of various government agencies. The analysis also identified design limitations in the DSS as a whole of government innovation management approach due to its limited uptake in multiple large agencies and lack of specific standards to encourage different types of innovation. The impact of this research is to increase the adoption of the DSS and increase the innovation outcomes delivered by this government program. We conclude by reflecting some of the unique considerations in applying private sector innovation management practices in the public sector.Points for practitioners Innovation management techniques are emerging but remain immature in the public sector. Australia has shown leadership in Government Innovation Process and Portfolio Management. Government must remain committed to innovation management programs and sharing the outputs of these programs. Government Innovation Management Programs should build in flexibility to encourage different types of innovation.

Regulating fintech: A harm focused approach

Much of the discourse around fintech regulation focuses on how regulation can best facilitate private-sector innovation. However, financial regulators in the United States do not have a statutory mandate to promote private sector innovation. This Article argues that when devising approaches to regulating fintech, financial regulators should be guided by their statutory mandates – and that these mandates (even mandates for efficiency and competition) should be conceived of as instructions to prevent or mitigate public harm. This Article then uses the framework of “accommodating, taming, or coping” to assess some extant fintech regulatory strategies in light of how they respond to the public harm arising from some fintech business models (particularly crypto business models). This Article is critical of regulatory strategies designed to peel back existing protective regulation to accommodate private sector fintech innovation; instead, it advocates for a taming approach but recognizes that, in practice, protective regulatory responses can more accurately be described as coping. The Article concludes with an exhortation for more precautionary taming regulation of fintech technologies and business models.

Exploring the Future of Agriculture through Nanotechnology: A Review

Agriculture, as one of the oldest and most essential human endeavors, has constantly evolved through the integration of technology. In recent years, nanotechnology has emerged as a pivotal tool, redefining traditional agricultural paradigms. This comprehensive review delves into the multifaceted implications and applications of nanotechnology within agriculture, providing a holistic view of its past, present, and future roles. Historically, nanotechnology's initial foray into agriculture sought to tackle prevalent challenges, from pest control to soil fertility. Despite some early obstacles, this merger has since showcased myriad successful applications, underscored by targeted and efficient solutions that significantly enhance crop yield and food quality. The present-day agricultural landscape is punctuated by nano-fertilizers ensuring optimal nutrient uptake, nanopesticides targeting pests with minimal off-target effects, nanosensors enabling precision agriculture, nano-based food packaging enhancing shelf life, and nanomaterials aiding in disease diagnosis and treatment. However, with innovation come challenges. The environmental and health ramifications of introducing nanoparticles into ecosystems remain a concern. While they promise reduced chemical usage and waste, potential issues like nanoparticle accumulation, unknown long-term effects, and possible toxicity necessitate rigorous research and regulation. Economically, the nano-agri sector promises substantial yield increases, but it also requires significant investments. As the technology permeates the agricultural supply chain, ramifications on job markets, trade dynamics, and global competitiveness become evident. Looking forward, anticipated advancements include smart nanodevices, potent nano-bio interfaces, and self-repairing materials. Nanobots, soil health rejuvenation techniques, and advanced nano-encapsulation are among the many potential R&D avenues. The road ahead requires collaborative efforts from governments, research institutions, farmers, and the private sector. Public-private partnerships, in particular, could prove indispensable, merging public sector oversight with private sector innovation.

Comparing the effectiveness of private and public sector innovation: A review essay of The myth of the entrepreneurial state

Comparing the effectiveness of private and public sector innovation: A review essay of The myth of the entrepreneurial state

Estimating public and private costs and benefits of implementing a milk quality assurance system in Kenya: A case study

Assuring food safety is increasingly important in emerging and developing economies. Despite being a public good, food safety in these economies is often addressed through limited private sector innovations while the public health costs and impact of food-borne diseases are largely unknown. This study estimates annual private and public costs and benefits of a quality-based milk payment system (QBMPS) in Kenya. Private costs and benefits were estimated using a partial budget analysis. From a private perspective, results show that participating farmers benefit most from the QBMPS, with a net profit of about USD 0.02 USD/kg) from an additional investment cost USD 0.0125/kg to produce Grade A milk. The cooperatives and processor have a net loss of 0.025 USD/kg milk, mainly driven by testing and initial investment costs. Disease burden was calculated using the Disability Adjusted Life Years (DALYs), while direct and indirect health costs were calculated using an incidence-based analysis. We estimate an annual disease burden of 53,000 DALYs from milk-related infectious diseases and a generated health benefit of 13 KES/kg due to reduction in disease incidence if 15% of Kenya’s milk goes through the QBMPS. These health benefits justify public and private sector support for a QBMPS.

Demanding Innovation: The Impact of Consumer Subsidies on Solar Panel Production Costs

Private sector innovation is critical to mitigating and adapting to climate change. This paper studies innovation in solar energy technology, a key source of clean energy that has experienced rapid price declines over the past decade. To understand the causes and effects of innovation, I estimate a dynamic structural model of competition among solar panel manufacturers. The model captures important features of the industry, including the role of government subsidies for solar adoption, and I employ a unique measure of technological progress that is observable and verifiable. The results produce two main insights. First, ignoring innovation by firms can generate biased estimates of the effects of government policy. Second, decentralized government intervention in a global market generates spillovers; a subsidy in one country causes international firms to innovate more, leading to lower prices and increased adoption elsewhere. This spillover underscores the need for international coordination by governments and the private sector to address climate change. This paper was accepted by Erica Plambeck, Special Section of Management Science on Business and Climate Change. Funding: The author acknowledges support from the U.S. Environmental Protection Agency [Science to Achieve Results (STAR) Fellowship Assistance Agreement FP-91769401-0] and Harvard [Joseph Crump Fellowship]. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4662 .

The Future of the Law on the Moon

Outer space is rapidly becoming the domain for industrial-scale private-sector innovation and entrepreneurship. By developing and maturing the unprecedented technology for vertical landing and partial reuse orbital-class rockets, Space Exploration Technologies Corporation (SpaceX) has reduced the cost of access to orbital space by a staggering factor of magnitude, i.e., to one-tenth the previous rate. SpaceX is now on the cusp of launching its next-generation launch system called Starship to orbit. Starship is designed to be fully and rapidly reusable (land, refuel, and fly like airplanes) and expected to decrease the cost of access to orbital space to a level comparable to air travel— whereby private-sector industry in outer space would become economically viable. SpaceX is developing Starship at a breakneck speed, planning for an orbital launch in April 2023. Starship would function as the Earth–Moon transportation infrastructure for private-sector lunar activities like tourism, hospitality, mining, research, entertainment, construction, health, agriculture, and manufacturing. And the Moon is just three days away. Assuming a large fleet of reusable Starships would take flight to the Moon in the coming years, lawyers have an urgent and exciting task of laying the legal groundwork on the Moon for the complex modern governance and economy. But the legal discussion on the future of the law of the Moon has not even begun. This Article aims to fix this lacuna by first presenting specific and realistic parameters for discussion: namely, SpaceX would likely give the United States the exclusive, economic, and scalable access to the Moon within a few years, enabling a sizable private sector presence (persons and property) on the Moon engaged in commercial ventures within a decade. A commercialized Moon would require the United States to assert legislative jurisdiction (U.S. federal law taking effect), exercise adjudicatory jurisdiction (personal jurisdiction over persons and property and subject matter jurisdiction regarding controversies that arise), and install a governing body physically on the Moon. After a brief introduction of today’s space industry, Part II surveys the history of U.S. regulation of commercial space exploration. Part III summarizes the current regulatory framework that governs only the launch and landing of space vehicles on Earth. Part IV is a more detailed analysis of the space industry and the economics of space exploration. Part V shows the possibility of domestic jurisdiction in outer space, delimited by binding international space treaties and customs. Part VI focuses on two treaties as providing the foundation of domestic jurisdiction in space. As an example of the governing body, in Part VII, this Article introduces the U.S. Lunar Court and sketches the legal contours of this new adjudicatory body. The Appendix shows detailed calculations of Starship’s expected capabilities and economics based on Falcon 9’s historical data.

Is private-sector innovation still vital to tackle support gaps for those leaving custody?

Is private-sector innovation still vital to tackle support gaps for those leaving custody?

P-049: A ROADMAP FOR DELIVERING A GLOBALLY ACCESSIBLE GENE THERAPY

Purpose: The convergence of innovative biotechnologies is propelling the field of gene therapy with consequential implications for treating and curing genetic and infectious diseases globally. Although dozens of gene therapies for a broad range of disease areas are expected to receive regulatory approval worldwide over the next decade, patients are unlikely to receive equitable access to these medical breakthroughs. In particular, the sophisticated infrastructure required to deliver gene therapies pose critical challenges for low and middle-income countries (LMICs) seeking to integrate gene therapies into resource-constrained health systems. Without critical foresight and targeted investments across LMICs, gene therapies will perpetuate global health inequity. Materials and methods: Using gene therapies for sickle cell disease and human immunodeficiency virus (HIV) in sub-Saharan Africa as use cases, this project examined the necessary infrastructure required for effectively and sustainably delivering gene therapies in low-resource settings. Data was obtained through a series of interviews with expert stakeholders from sub-Saharan Africa, Europe, and the US. Interviewees represented multiple sectors including hospitals and community clinics, gene therapy companies, manufacturing, patient advocacy and community engagement, technical training, and global health priority setting. Interviews were supplemented with an extensive literature review. Results: An analysis of stakeholder interviews revealed the need for core infrastructure across seven thematic areas: research; engagement and education; facilities and manufacturing; information systems, workforce, regulation; and finance. Although assessed individually, these domains are interdependent, highlighting the need to invest and co-develop across all areas simultaneously and synergistically. Conclusion: Building the requisite infrastructure for delivering gene therapies is a multi-decade endeavour. This long horizon should not discourage immediate action; rather, it should be acknowledged and appreciated as an opportunity for strategic preparation assuring future success. By establishing and maintaining infrastructure across several thematic areas, countries can accelerate the development and delivery of gene therapies. Throughout this process, key steps should be taken to improve outcomes: Engage communities early and often: The process of providing gene therapies must be patient-centred. Involving communities in the design and implementation process will lead to effective therapies that are acceptable and accessible. Leverage existing infrastructure: Maximizing the impact of limited resources and removing redundancy requires integrated services, multi-use facilities, and increased coordination. Collaborate internationally: While countries in SSA build research capacity, promote private sector innovation and commercialization, and update regulatory frameworks, international collaboration will facilitate the exchange of scientific equipment, knowledge and training, and policy. Improve and adapt iteratively: The success of gene therapy hinges on iterative cycles of feedback between research and clinical deployment. Infrastructure should support the ability of scientific and societal findings to inform healthcare practices and regulations. While this study focuses on gene therapy delivery and its requisite infrastructure, considerations of health systems strengthening should remain at the forefront. The delivery of gene therapies should expand to align with health priorities set by countries (e.g., attention to non-communicable diseases). A narrow focus on gene therapies can create vertical systems of planning, management, and monitoring and evaluation that are not suited for other health areas and do not maximize the use of limited resources. The authors do not declare any conflict of interest

Government Spending Shocks and Private Sector Innovation

Government Spending Shocks and Private Sector Innovation

Private-sector innovation processes in development cooperation: perspectives from Finnish technology enterprises

ABSTRACT The development community has become an important financer of innovation processes in the Global South. This research scrutinizes Finnish private enterprises receiving development assistance for their innovation processes, targeting the markets of the Global South. Beyond the critical rationales, there is a lack of contextual understanding about the development impacts of private sector – focused development cooperation. The research reveals that the private sector’s role in development is heterogeneous and complex. Although, companies’ involvement has brought innovations, new actors, and funding to development cooperation, it has only fragile ties to the conventional objectives of development – to reduce extreme poverty and inequality. Innovation activities of the Finnish companies focus on rather developed markets of middle-income countries and an educated wealthy minority. Local communities have minor involvement in the design, profit sharing, or value addition of such projects, and their main role is the consumption of end products.

The Military-Civilian Symbiosis: Evidence of Civil Innovation from the Global Drone Industry

Private parties operating in the civil domain are not always capable of engendering innovation and new industry creation because of lacking complementary assets, short-term horizons, underinvestment in fundamental research, and limited ‘translational’ capacity. In this study, we theorize and demonstrate that important innovations often have their roots in an institutional realm that can compensate for these shortcomings: the military. We hypothesize that the military is capable of fostering private sector innovation through technological and human-capital spillover, investments in high-risk innovation projects, and building vital innovation infrastructure. We test our hypotheses in the context of the global drone industry, using a unique longitudinal database tracking the emergence of the industry between 2006 and 2016. Our sample consists of 1341 civil drone systems created by 473 producers situated in 52 countries. We employ survival analysis to test the influence of national-level military drone production, overall military expenditure and arms imports on civil drone market-readiness. Our results show that the military plays an integral role in civil innovation and new industry creation in this setting. As one of the first studies in management to provide systematic, non-anecdotal evidence on the civil innovation role of the military, our work contributions to the institutions-for-innovation and innovation policy literatures.