Technology Imitation Research Articles

Can Intellectual Property Rights Affect Multinational Enterprises’ Entry Modes? The Chilean Case

Multinational Enterprises (MNEs) can choose between exporting, introducing foreign direct investment (FDI), and licensing to a domestic firm among other modes of entry to a new market. Yet, this decision may be affected by the strength of intellectual property rights (IPR). Thus, this paper analyzes the effect of stronger IPR on the entry modes chosen by MNEs. We propose a theoretical model that predicts that in the presence of stronger IPR, MNEs would choose licensing instead of FDI as an entry mode. We test the predictions of the model using plant-level data for Chile for the period 2001–2007. We exploit the exogenous reform of IPR in 2005, controlling for the activities of industries where high levels of technology transfer and imitation are important factors. The main results show that stronger IPR change the mode of entry chosen by MNEs. In this case, FDI is replaced by licensing. This is explained by Chile’s high absorptive capacity during this period. We test whether this effect differs across high- and low-tech industries and conclude that the displacement of FDI is less severe in high-tech industries.

SIMULATION MODELING IN THE CONTEXT OF TRAINING MANAGERS IN THE SPHERE OF CIVIL PROTECTION

Civil servants and policy makers are compelled to recognize the fact that conflicts and crises can potentially occur in any area of their responsibility. Crisis situations require their consistent efforts to restore public confidence and integrity of management mechanisms, while emergencies may also require efforts to limit the extent of damage to people, their property and the environment. Historical experience shows that the emergency is easily transformed into political crises and, in turn, into political conflicts where power is losing control of the development of events.
 The effectiveness of the control system of the emergency, operating in a complex and aggressive environment, is heavily dependent on people, especially those who are in charge of management. When working in organizations in the stationary mode, the conditions change in the usual pace, and employees of the management system can gradually adapt to the conditions, using the accumulated knowledge and experience. The analysis of the current situation in the world and the increasing complexity of existing systems give reason to believe that the frequency and level of negative consequences of sudden emergency have a tendency to increase. Therefore, leadership style, willingness of people to risk, their qualifications, behavior, reaction to unexpected changes, individual and group behavioral norms should be continuously analyzed and improved when organizing a management system.
 Among the innovative technology of training is technology imitation modeling, in the process of using which is the formation of professional qualities of specialists through immersion in a specific situation, modeled for educational purposes. The game character of imitation modeling is the main feature that is carried out due to the presence of various roles. In the process of role interaction, the solution of educational and simulated practical problems, the exchange of values, knowledge, skills, during which the implementation of specific educational tasks is carried out.
 Consequently, simulation is a relatively new, promising method for studying complex phenomena and processes by creating and analyzing their models with the active participation of the researcher during the simulation experiment. Since the increased complexity and uncertainty of internal and external influences of the system of higher education is beyond doubt, the use of simulation in the study of this system and the processes of its development is absolutely justified.

The contradiction of Indian innovation: an epistemological explanation

PurposeThe purpose of this paper is to examine the value of decolonial approaches (DAs) such as epistemic locus (Mignolo, 1995, 2000) in studying innovation.Design/methodology/approachThis paper is based on a case study of a stem cell surgical innovation developed in India. A critical hermeneutic analysis method has been followed for data analysis.FindingsEpistemic locus influences the framing of the problem, perceptions of risks/opportunities as well as the envisioning of alternate institutional systems. Persistent and strategic effort at building connections changes local improvisation into a globally legitimate innovation.Research limitations/implicationsIt indicates the value of using DAs for innovation studies especially epistemic locus, enactment and connections in understanding knowledge generation and innovation.Practical implicationsInnovation in Global South can be encouraged by giving more space to the innovator to attempt or experiment. More conscious conversation of epistemic locus of the researcher could help.Social implicationsCountries have to move beyond a mere technological imitation to include discussions on epistemic imitation. Epistemic imitation prevents one from seeing what one has and one only looks at conditions from the eyes of the dominator.Originality/valueThis study documents the development of an innovation from an Indian epistemic locus which differs from a western epistemic locus and the impact this has on an innovation.

TRIPS AND INDIAN PHARMACEUTICAL INDUSTRY

The TRIPs Agreement has led to a reinforcement of the protection of intellectual property, particularly in many developing countries. From the point of view of transfer of technology, the imitation of technologies from industrialized countries and the marketing of the resulting products will now be more difficult. The MNCs are also expanding vigorously in the generic segments. They are trying to grow not only organically, but through mergers and acquisitions and strategic alliance with Indian generic companies.
 90% of the Indian Pharmaceutical Industry was dominated by the Global companies that imported most of the drugs. During the early 1970s, the Indian players gradually gained prominence as a result of the Indian Patent Act, 1970 which allowed Indian companies to reverse engineer Patented Molecules and launched them in the domestic markets.

Unpacking Coopetition and Innovation: Contingency Roles of Pluralistic Network Embeddedness

Extant research suggests the “double-edged sword” nature of coopetition in technology-driven industries. Specifically, coopetition may enhance value creation in firm technological innovation by providing complementary resources and learning opportunities. However, close interactions with competitors may spur competitive attacks, such as knowledge misappropriation, technological imitation, and learning races, leading to value destruction in firm innovation. The contextual conditions under which coopetition may enhance value creation or exacerbate value destruction remain unclear. In this study, we elucidate the contingency factors stemming from multiple network embeddedness of technology-driven firms, namely, centrality and structural hole spanning in a collaboration network and a knowledge network on the organizational level. We expound the direct effects of the structural characteristics of a firm’s network positions on its innovation economic value, and the moderation effects on the impacts of firm coopetition pursuits on innovation outcome. In so doing, we clarify the network-based conditions under which innovation-driven firms may augment value creation and mitigate value destruction as they pursue coopetition strategies, hence making a contribution to the current coopetition research. Additionally, our results contribute to the network pluralism literature by elucidating how doubly embedded firms achieve differential innovation outcomes under the structural influences from collaboration network and knowledge network.

Technological Imitation and Corporate Innovation

This study examines the relationship between technological imitation and firms' innovation activities and their incentives to innovate using US firm-level patent data for the period 1977-2005, finding that there are inverted-U shaped relationships between technological imitation and industry-average innovation activities and between technological imitation and firm-level market value of innovation. Our results suggest that positive externalities from the interactions among firms during the process of technological innovation dominate the negative effects of free riding concerns on firms' innovation activities and incentives to innovate up to quite a high level of technological imitation, while the free riding concerns dominate the positive externalities when the level of technological imitation is extremely high. Thus, creating innovation clusters and allowing different innovators to cooperate, imitate and compete with each other would be very effective in promoting corporate innovation.

Foreign Shares, Human Capital and Wage Inequality: Evidence from Indian Manufacturing Firms

The interactions between Foreign Direct Investment (FDI) and human capital formations have strong implications for labour demand and supply factors in developing economies through various ways like training, direct technological diffusion, innovation and imitation. Indian economy has featured rising wage inequality and demographic dividend simultaneously since the last decade. In line with the similar research, the objective of the paper is to empirically assess this effect in Indian manufacturing firms using unbalanced panel data for the period 2001-2015. This paper uses fixed effects panel data estimation technique to get the estimates. The findings reflect that FDI is found out to be stirring up wage inequality with positive relation between relative wages and interaction term of training and FDI suggestive of positive demand side effect of FDI only through this channel.

Automated updating of medium-scale soil maps

An approach towards an automated updating of medium-scale soil maps via imitation of traditional mapping technologies is suggested. It is based on formulation of the rules of mapping in the form of classification trees for separating different soil cover patterns and on creation of the maps of soil-forming factors with the use of satellite data. Algorithms for mapping alluvial soils (Fluvisols), eroded (abraded), and anthropogenically transformed soils are presented. This approach was tested for the southern (Trans-Oka) part of Moscow oblast. The model for an automated soil mapping was realized using ILWIS software. The polygons of alluvial soils were mapped with a higher accuracy via the automated separation of floodplains according to the digital terrain model. The total area of alluvial soils shown on the medium-scale soil map decreased from 373 to 340 km2. Calculations of slope angles according to digital terrain models allowed us to localize soil cover patterns with participation of eroded soils with a higher accuracy; their area decreased insignificantly: from 791 to 781 km2. Anthropogenically transformed soils of building areas were mapped for the territory of Moscow oblast on the basis of satellite data for the first time. Their areas were delineated taking into account land use types and comprised 551 km2, i.e., 15.4% of the total area (3570 km2) of the Trans-Oka part of Moscow oblast.

Technology Evaluation and Imitation: Do They Have Differential or Dichotomous Effects on ERP Adoption and Assimilation in China?

Enterprise resource planning (ERP) software is a platform for innovation with high failure rates due to its complexity. In China, failure rates of ERP are also high, with key differences between China and Western countries in terms of development, cultural, and organizational structure. Even when Chinese firms successfully adopt ERP, many fail to assimilate ERP and consequently never experience the full benefits of the innovation. The purpose of this study is to examine the predictors of adoption versus assimilation in Chinese firms. The existing literature largely assumes a dichotomy of choices when implementing organizational innovations in business: technological evaluation and imitation. We argue that this dichotomy does not apply well to a Chinese ERP context. China has achieved tremendous success in manufacturing and industrial processes through technological leapfrogging offered by imitation. At the same time, Chinese firms are under increasing pressure to innovate. Therefore, we argue that forces of imitation and evaluation are likely both at play when Chinese firms adopt and assimilate innovations—including ERP. Accordingly, we examined how two behaviors, interorganizational social technology imitation and rational technology evaluation, influence Chinese organizations in adopting and assimilating ERP systems. Our findings suggest that both social technology imitation and rational technology evaluation are determinants of Chinese ERP adoption and assimilation. Hence, this study offers new ways for IT and innovation researchers to explore social behavior (i.e., imitation) in IT diffusion processes and to consider the merits or risks of such behavior alongside the conventional rational approach (i.e., evaluation).

Technology Diffusion on the International Trade Network

AbstractTechnological innovations generate knowledge spillovers—non‐innovators benefit through the adoption, imitation, and extension of new technologies. International trade facilitates technology diffusion by providing importing countries access to technical knowledge that they can potentially internalize. Previous studies of the effect of trade on technology diffusion typically only consider the impact of direct (bilateral) trade on indirect measures of technology (e.g., total factor productivity). We contend that the analysis of trade's impact on technology diffusion would be more accurately assessed by using direct measures of specific technologies (e.g., intensity levels) and by allowing for the influence of both the direct and indirect effects of trade in the analysis. The latter is accomplished by modeling the international trade system as a weighted network, which quantifies both direct and indirect trade linkages. Combining trade data with data on the adoption of specific technologies, we find that the network effects of trade play a significant role in technology diffusion. In most cases, countries that are better‐connected on the trade network have higher technology intensities. Further support for the importance of trade is provided by the finding that for “outdated” technologies, better‐connected countries have lower technology intensities because of their adoption of newer, substitute technologies.

The effects of forward and reverse engineering on firm innovation performance in the stages of technology catch-up: An empirical study of China

Due to the lack of novel technology, most emerging economies are adopting a technology catch-up strategy by first imitating and then innovating, which leads to a complex but important interaction between technology imitation and indigenous R&D activity, both of which play important roles in the innovation production process of emerging economies. Accordingly, this study proposes a new analytical framework that takes into account both forward engineering, mainly characterized by R&D novelty, and reverse engineering, mainly characterized by technology imitation. Based on this framework, this study offers an in-depth analysis of Chinese high-tech firms. The empirical results show that reverse engineering positively interacts with forward engineering; Firms with input in reverse engineering have more innovation output and a greater level of innovation commercialization than firms without input in reverse engineering. Forward engineering has a greater direct contribution to innovation output and innovation commercialization than reverse engineering. By comparison, the reverse engineering functions on innovation output mainly through indirect effect, which intensifies the role of forward engineering by providing the knowledge base for novel R&D activity. However, the ethicality and legitimacy of intellectual property behind reverse engineering frequently lead to international prosecutions, which may be the main reason that reverse engineering has an insignificant effect in the overseas market. Our study indicates that governments should initiate technological policy for technology development, and firm managers should improve indigenous innovation capacity.

On Endogenous Product Cycles Under Costly Trade

The catchup and convergence of developing economies with the Western world is a major experience in modern history. In this paper we explore the role played jointly by technological imitation and trade liberalization in a North-South endogenous growth model. We prove that a gradual trade liberalization between South and North will promote convergence at any level of initial trade costs if the Southern economies are fully industrialized, their R&D potential is relatively low and the elasticity of substitution among manufactures is high enough.

Влияние типологических особенностей и имитации технологий на интенсивность конкурентной борьбы в кластере

Влияние типологических особенностей и имитации технологий на интенсивность конкурентной борьбы в кластере

Catch-Up Cycle: A General Equilibrium Framework

Successful economic latecomers have certain stylized facts: an inverse U-shaped growth rate, high growth rates of per capita output with high capital returns, and rapid structural changes. In this paper, we document for the first time a catch-up cycle that successful latecomers likely experience. The economic growth literature is inadequate to explain economies’ catching-up. We argue that technology imitation, together with diminishing marginal return of capital are the two driving forces of the catch-up cycle. This paper also sheds light on the different policy choices in various stages of the catch-up cycle.

Product Technology Imitation Over the Product Diffusion Cycle: Which Companies and Product Innovations do Competitors Imitate More Quickly?

We contribute to the imitation literature by shedding light on product imitation dynamics over the market evolution, a hitherto-overlooked level of analysis. First, we introduce product diffusion within a more integrative theory of product imitation. Second, we investigate the time to imitation of a new product technology: our baseline hypothesis is that the time to imitation decreases as the product diffusion in the market increases. Third, we extend our prediction by differentiating by the type of innovator—i.e., the market leader and a member of the same strategic group—and by the type of product technology—i.e., functionality-defining technologies and substitute technologies. We hypothesize that, over the product diffusion cycle, product technologies launched by market leaders are copied more quickly than ones launched by non-market leader firms; product technologies launched by members of a focal firm's own strategic group are copied more quickly than ones launched by outsiders; and substitute technologies are copied more quickly than functionality-defining technologies. We test our hypotheses in the context of the UK mobile phone industry, by exploiting a unique database on twenty-two product innovations introduced by thirteen mobile handset manufacturers between 1997 and 2008. The model estimations provide support for most of our hypotheses.

Technology innovation and entrepreneurial state: the development of China's high-speed rail industry

China proactively promotes indigenous technology innovation towards developing an innovation-based economy. This contradicts the developmental state literature that puts emphasis on technology imitation. Drawn from the strategic entrepreneurship perspective, this article explores the role of the government in China's technology innovation process. Carrying out a case study in the high-speed rail (HSR) industry, it suggests that it is best to understand the Chinese government as an entrepreneur in moving China's HSR industry towards technology innovation-driven development, through three dimensions of state-led strategic entrepreneurship: alertness to opportunities, resource exploration and consolidation, and strategic learning. This article highlights the importance of strategic entrepreneurship to the government in an emerging economy context and contributes to the literature by building a conceptual framework of ‘entrepreneurial state’.

Assessing the Effects of Trade-induced Technology Imitation on Economic Growth in Africa

Abstract The study aims at quantifying the effects of trade-induced technology imitation (proxied by the share of imports in the “easy imitation” SITC category) on economic growth in Africa, using a production function approach in a panel system-GMM estimator. Indicators of trade-induced technology imitation have been built on the Standard International Trade Classification (SITC) using raw data from the United Nations’ COMTRADE Statistics. Findings suggest that economic growth tends to be greater in countries with higher ratios of technology imitation, since technology imitation requires creative effort on the part of a firm's employees and will consequently develop capabilities such as skills and efficiency. Another finding is that the lower the level of GDP per capita, the higher the growth effects of technology imitation relative to other forms of technology progress.

Comment on “Innovation and Economic Growth in East Asia: An Overview”

Hu (2015) aims to provide an overview of the technological progress that East Asia has achieved over the past decades. The paper adopts South Korea as a case study to illustrate a nonlinear process of technological and economic catching up, and discusses the determination of technological innovation using a large sample of countries. Technological advancement in an economy depends on both innovation of new technology as well as imitation of the technology produced elsewhere. For many East Asian economies lagging behind in the technological ladder, the imitation and adaptation of advanced technologies provide good opportunities to catch up to more advanced countries. In contrast, for the advanced East Asian economies that have already narrowed the technology gap, technology creation becomes more important. Hu (2015) makes several contributions to the existing literature by assessing the dynamic process of technological imitation and innovation in East Asian economies, particularly in South Korea, and the role of policies and institutions for technological development. Despite its contributions, Hu's paper is hampered by several shortcomings. First, the paper does not explain technological diversity among East Asian economies. Hu uses the experience of South Korea, which transitioned successfully from technological imitation to innovation, as an interesting case study. In the case study, four major contributing factors to the South Korean success that Hu points out are the government's proactive role, its good-quality human capital in science and engineering, its well-developed link to a global production network, and as a more controversial point an international environment that was lax in enforcing intellectual property rights. It would be interesting to know to what extent the experiences of other East Asian economies, such as China, Indonesia, Malaysia, Singapore, and Taiwan, are different from that of South Korea in terms of the development of capabilities in technological adaptation and innovation. Some appropriate measures of national technological capacities, such as the number of patents, the payments and receipts of royalties and license fees, and research and development (R&D) expenditures, could be used to compare technological progress across East Asian economies over time. Discussions of national science and technology system and policies could also help evaluate to what extent the South Korean experience is applicable to other economies, considering that South Korea's technological innovation activities have been concentrated in large enterprises. Second, Hu's paper has very little discussion about the impact of technological innovation on economic growth. As is emphasized in recent endogenous growth theory, the role of technological progress is critical for economic development and growth (Romer, 1990; Hall & Jones, 1999). Lee and Hong (2012) present growth accounting results for East Asian countries that show the importance of total factor productivity (TFP) in output growth. There are also a number of recent papers available that measure TFP growth and assess the role of human capital, foreign direct investment, and R&D investment in TFP growth across countries (Lee & Shin, 2012; Park, 2012). Third, there are some improvements that could be made to the data and estimation techniques related to knowledge production function. Hu's paper constructs an unbalanced panel dataset consisting of input and output measures of innovation across countries over the period from 1996 to 2007, and estimates two types of knowledge production function. Based on the empirical findings, Hu argues that institutional and policy variables, such as the protection of intellectual property rights, high-tech products' share of exports, the openness to international trade, manufacturing's gross domestic product share, and the schooling attainment for adult population, while interacting with a country's stage of economic development, play important roles for the production of technology output. More explanations of the empirical specifications and data are needed to enable readers to understand the definitions and functional forms of the knowledge production function. The regressions must be subject to a number of methodological problems, such as endogeneity of the right-hand side variables, omitted variables, measurement errors, and sample selection. Appropriate empirical techniques should be adopted to address these issues. In addition, it is preferable to use period averages of the dependent variables, and to allow sufficient time for the influence from changes in input variables to affect the output variables.

Emerging Economies of East and South East Asia: Some Salient Points about Technology’s Role in Economic Development

This area of East and South East Asia is characterized by the following traits: very large population; tendency and ability for detail; imitation rather than creation; ability for organization; tendency for corruption; tendency for autocratic regimes; in the process of an industrial revolution; technological imitation; nationalism without boundaries; wide range of GDP per capita and poverty; litter and pollution problems without solutions; natural disasters; exports oriented; high urban development; Chinese culture influence; FTAs (Free trade agreements) and ASEAN; FDI rather high; disparities between East Asia and other Asian areas; production networks through Japan‟s and South Korea‟s roles in international division of labor.

The environment and directed technical change in a North-South model

A key question in the economics of climate change is the importance of global policy coordination in reducing carbon emissions. In this paper, we study this question using a two-country (North–South) extension of Acemoglu et al. (2012) which introduces directed technical change into a general equilibrium model of climate change. We find that, first, the optimal policy necessarily requires global policy coordination, with the implementation of research subsidies and carbon taxes in both North and South. Second, under certain circumstances, appropriately chosen environmental regulations in the North alone can prevent the worst environmental disasters. In particular, such disasters can be prevented by a combination of carbon taxes and clean research subsidies under the restrictive conditions that (a) the two inputs are substitutable in both countries; (b) there is no international trade between the North and the South; and (c) the South imitates technologies invented in the North. Third, international trade between the North and the South typically makes it more difficult to prevent environmental disasters through unilateral policies in the North, because environmental regulation in the North may induce full specialization by the South in dirty input production, as imitation of clean technologies by the South then ceases to be profitable. Hence, given current circumstances, global policy coordination is highly desirable.