The purpose of this paper is to investigate how R&D originality functions in an open innovation process after the introduction of knowledge spillovers (KSs).
Abstract
Purpose
The purpose of this paper is to investigate how R&D originality functions in an open innovation process after the introduction of knowledge spillovers (KSs).
Design/methodology/approach
To examine the research framework, the authors use hierarchical regression based on questionnaire data from 211 emerging enterprises in China.
Findings
Consistent with the proposed framework, the authors find that the KS effect mediates the positive relationship between openness and innovation performance. In addition, R&D originality weakens the impact of the KS effect on innovation performance.
Research limitations/implications
One limitation is that the questionnaire survey the authors choose for data collection has some natural defects; furthermore, the testing method and research framework need to be improved.
Practical implications
Several implications of the findings for managerial practices are discussed.
Originality/value
First, the research expands the existing theoretical construct by introducing the KS effect into the open innovation process; second, the authors reveal the negative impact of R&D originality on the open innovation process.
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Brahim Gaies, Rosangela Feola, Massimiliano Vesci and Adnane Maalaoui
In recent years, the topic of women's entrepreneurship has gained increasing attention from researchers and policymakers. Its role in economic growth and development has been…
Abstract
Purpose
In recent years, the topic of women's entrepreneurship has gained increasing attention from researchers and policymakers. Its role in economic growth and development has been widely recognized in several studies. However, the relationship between gender in entrepreneurship and innovation is an underexplored aspect in particular at a country-level perspective. This paper aims to answer the following question: Does female entrepreneurship impact innovation at a national level?
Design/methodology/approach
Using a panel dataset of 35 Organization for Economic Co-operation and Development (OECD) member countries over the period 2002–2019, the authors carried out a comprehensive econometric analysis, based on the fixed-effect model, the random-effect model and the feasible generalized least squares estimator, as well as a battery of tests to prevent problems of multicollinearity, heteroscedasticity and autocorrelation of the error terms. In doing so, the authors found consistent and robust results on the linear and nonlinear relationship between women's entrepreneurship and innovation, using selected country indicators from the Global Entrepreneurship Monitor (GEM) consortium, the Worldwide Governance Indicators (WGI) and the World Development Indicators (WDI), including female self-employment, female nascent entrepreneurship and R&D investment and controlling for the same relationships in the case of men's entrepreneurship.
Findings
This study shows that the level of R&D investment, which according to the literature can be considered as a proxy of innovation, is higher when the level of women's entrepreneurship is low. However, exploring more in depth this relationship and the relationship between male entrepreneurship and innovation, the authors found two important and new results. The first one involves the different impact on R&D investment of female self-employment and female nascent entrepreneurship. In particular, female self-employment appears to have a linear negative impact on the R&D, while the impact of female nascent entrepreneurship is statistically nonsignificant. The second one affects the nonlinearity of the negative effect, suggesting that very different challenges are possible at different levels of women's entrepreneurship. In addition, analyzing the role of human capital in the relationship between R&D investment and women entrepreneurship, it emerges that higher education (as the main component of human capital) makes early-stage women's entrepreneurship more technologically consuming, which promotes R&D investment. A higher level of education lessens the significance of the negative relationship between the simplest type of women entrepreneurship (female self-employment) and R&D investment.
Originality/value
The originality of the study is that it provides new evidence regarding the link between women's entrepreneurship and innovation at the macro level, with a specific focus on self-employed women entrepreneurs and early-stage women entrepreneurship. In this sense, to the best of the authors' knowledge, this study is among the few showing a nonlinear relationship between women's entrepreneurship and country-level innovation and a negative impact only in the case of female self-employment. Moreover, this study has relevant implications from a policymaking perspective, in terms of promoting more productive women's entrepreneurship.
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To explore the effects of contingency and the position of R&D professionals on R&D performance measurement.
Abstract
Purpose
To explore the effects of contingency and the position of R&D professionals on R&D performance measurement.
Design/methodology/approach
Adopting a bottom‐up approach that reflects R&D professionals' opinion, this study investigated the relationship between preferred performance measures and contingency factors (project phase, structure, technology, and the position of R&D professionals). Fifty two senior researchers at a Korean telecommunications laboratory were surveyed.
Findings
The results suggest that the goal achievement dimension and technology factors are more important in earlier phases of an R&D project while production, economy/market, and external evaluation factors become more significant in later stages.
Practical implications
The findings suggest that the weights of R&D performance measures should be aligned with the contingency factors and the position of R&D professionals.
Originality/value
While most studies have adopted a macro‐level approach, this study examined R&D performance measurement at the micro‐level. While most previous works are conceptual, this study made an empirical investigation that enables statistical tests. And the findings provide useful recommendations for human resource managers who are interested in measuring the performance of technology innovation.
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This study investigates the motivations and consequences of classification shifting from cost of sales to research and development (R&D) in high-technology industries.
Abstract
Purpose
This study investigates the motivations and consequences of classification shifting from cost of sales to research and development (R&D) in high-technology industries.
Design/methodology/approach
This study conducts a multivariate analysis using logistic and ordinary least squares regression methods on panel data of high-technology firms for the period 1988–2012 to examine the effect of R&D classification shifting on gross margin benchmarks and future performance.
Findings
The results show that R&D classification shifting increases the likelihood of meeting or beating gross margin benchmarks. They also show that firms engaged in R&D classification shifting exhibit lower future R&D productivity, stock returns, and operating performance. The findings indicate that the short-term benefits of achieving gross margin benchmarks are offset by the long-term negative impact of R&D misclassification.
Practical implications
This paper provides insights that can help regulators develop clearer guidelines for the appropriate classification of R&D costs.
Originality/value
Moving beyond the core earnings management paradigm, this study demonstrates the use of R&D classification shifting as a tool to manipulate gross profits and R&D in high-technology industries. Most prior studies focused on the determinants of R&D classification shifting, while few investigated the impact of the practice. The findings in this study provide initial evidence of the consequences of R&D classification shifting for future R&D productivity and firm performance in high-tech industries. Using five methods, this study also validates R&D classification shifting and addresses the alternative explanation of R&D overinvestment.
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As high-tech industries are the main responsible for research and development (R&D), the purpose of this paper is to investigate some of the possible determinants of R&D…
Abstract
Purpose
As high-tech industries are the main responsible for research and development (R&D), the purpose of this paper is to investigate some of the possible determinants of R&D investment in this type of industry.
Design/methodology/approach
The analysis is based on a sample of European high-tech industries represented both by countries of civil law origin and common law origin. The authors used data from 155 high-tech firms in the period between 2011 and 2016. The sample was collected from Amadeus database. The panel data methodology was used to test the dependence of R&D expenses ratio according to different variables. Specifically, the authors have used the generalized method of moments (GMM) estimation method.
Findings
The results point out that there are differences in the explanation of the R&D ratio depending on whether the authors are dealing with countries of civil legal origin or common legal origin. The evidence also suggests that the intangible assets, contrary to the expect result, have a negative influence on R&D. Probably in this recovery time, as de global financial crisis and the sovereign debt crisis for Eurozone countries, the high-tech firms are using their intangible assets to create value and not for more investments in R&D. Companies are not renewing their asset stocks.
Originality/value
As high-tech companies are traditionally rich in R&D, this research can contribute with additional pieces to the knowledge of the factors that contribute to this. Thereby, this study may be interesting for managers, investors and civil society. This study adds value as it is unique in addressing this topic on this new dimension, with respect to the sample and indicators presented.
Propósito
Como las industrias de alta tecnología son las principales responsables por la I + D, proponemos investigar algunos de los posibles determinantes de la inversión en I + D en este tipo de industria.
Diseño/metodología
Nuestro análisis se basa en una muestra de indústrias europeas de alta tecnología representadas tanto por países de origen civil como por derecho consuetudinario. Utilizamos datos de 155 empresas de alta tecnología en el período comprendido entre 2011 y 2016. Nuestra muestra se recopiló de la base de datos Amadeus. La metodología Panel Data se utilizó para evaluar la dependencia del índice de gastos de I + D de acuerdo con diferentes variables. Específicamente, hemos utilizado el método de estimación del Método Generalizado de Momentos (GMM).
Resultados
Nuestros resultados señalan que existen diferencias en la explicación de la relación de I + D dependiendo de si estamos tratando con países de origen legal civil u origen legal común. Nuestra evidencia también sugiere que los activos intangibles, al contrario del resultado esperado, tienen una influencia negativa en la I + D. Probablemente en este tiempo de recuperación económica, desde la crisis financiera mundial y la crisis de la deuda soberana para los países de la zona euro, las empresas de alta tecnología están utilizando sus activos intangibles para crear valor y no para más inversiones en I + D. Las empresas no renuevan sus activos.
Originalidad/valor
Dado que las empresas de alta tecnología son tradicionalmente ricas en I + D, esta investigación puede contribuir con piezas adicionales al conocimiento de los factores que contribuyen a esto. Por lo tanto, este artículo puede ser interesante para gerentes, inversores y la sociedad civil. Este artículo agrega valor, ya que es único al abordar este tema en esta nueva dimensión, con respecto a la muestra y los indicadores presentados.
Objetivo
Como as indústrias de alta tecnologia são as principais responsáveis pela investigação e desenvolvimento, neste trabalho propomos investigar alguns dos possíveis determinantes da I&D nesse tipo de indústria.
Metodologia
A Nossa análise é baseada em uma amostra de indústrias europeias de alta tecnologia representadas por países de origem do direito civil e de direito comum. Foram utilizados dados de 155 empresas de alta tecnologia no período compreendido entre 2011 e 2016. Os dados foram recolhidos da base de dados Amadeus. Foi usada a metodologia de Dados em Painel para testar a dependência entre as despesas de I&D e as diferentes variáveis explicativas. Especificamente, usamos o método de estimação Método generalizado de momentos (GMM).
Resultados
Os nossos resultados apontam que existem diferenças na explicação do índice de I&D, dependendo de estarmos lidando com países de origem legal civil ou de origem legal comum. As evidências também sugerem que os ativos intangíveis, ao contrário do resultado esperado, influenciam negativamente a I&D. Provavelmente neste período de recuperação económica, desde a crise financeira global e a crise da dívida soberana dos países da zona do euro, as empresas de alta tecnologia estão a usar os seus ativos intangíveis para criar valor e não para mais investimentos em I&D. As empresas não estão a renovar os seus ativos.
Originalidade/valor
Como as empresas de alta tecnologia são tradicionalmente ricas em I&D, este trabalho pode contribuir com peças adicionais para o conhecimento dos fatores que contribuem para esse facto. Assim, este artigo pode ser interessante para gestores, investidores e sociedade civil. Trata-se de uma investigação que agrega valor, pois é único ao abordar este tópico nesta nova dimensão, com relação à amostra e às variáveis apresentadas.
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Yu-Cheng Lai and Santanu Sarkar
The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore…
Abstract
Purpose
The purpose of this paper is to understand the impending relationship between the impact of the US–China trade war on Taiwanese firms' spending on R&D and their offshore investment in technologically advanced countries (TAC), the authors examined if changes in these firms' R&D ratios and the growing presence of skilled workers in Taiwan's labour market during the trade war have affected their offshore investments in TAC.
Design/methodology/approach
Using a model built on pooled cross-sectional time-series data from 2012–2019, the authors examined whether a change in R&D ratios of domestic firms in Taiwan and the growing presence of skilled workers in Taiwan's labour market have affected the offshore investment by these firms during the trade war. Using data from the Manpower Utilisation Survey, the authors applied differences–in–differences–in–differences and differences–in–differences–in–differences–in–differences estimation methods and found that the trade war indeed gave a boost to Taiwan's job market, particularly for skilled workers.
Findings
From the estimation results, the authors noticed a rise in employment opportunities alongside a decline in the earnings of skilled workers in industries where more firms have spent on R&D as well as invested in offshore operations. However, firms in Taiwan that had not heavily spent on R&D from industries where investment in foreign operations was otherwise high have also attracted skilled workers during the trade war.
Practical implications
An in-depth analysis of the impact of the trade war on domestic firms' spending on R&D and their investment in offshore operations in TAC should be helpful to policymakers interested in understanding the effects of the trade war and subsequent changes in firms' spending on R&D on labour market outcomes. If changes in the R&D ratios and a steady supply of skilled workers influenced the outflow of Foreign Direct Investment (FDI) to TAC, this insight could be helpful for those devising policies and measures to curb the impact of the trade war on domestic spending on R&D.
Originality/value
The study findings not only provide broad lessons to policymakers in Taiwan, but the country case study can guide growing economies that are equally careful while perceiving trade war as a significant deterrent to domestic R&D spending and the outflow of FDI.
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Eugenia Y. Huang and Shu‐Chiung Lin
This paper seeks to identify the variables that affect the innovation performance of R&D teams, and to investigate the interactions between these variables.
Abstract
Purpose
This paper seeks to identify the variables that affect the innovation performance of R&D teams, and to investigate the interactions between these variables.
Design/methodology/approach
A research framework is first established through a literature review, and is then adjusted according to case studies of five high‐tech companies in Taiwan. The adjusted model is then tested through a survey of high‐tech companies in Taiwan.
Findings
It is concluded that the style of the upper management team and the leadership of the R&D manager are the main forces that determine R&D management practice, but that the educational background, work experience, and expertise of R&D managers do not distinguish the level of discipline or the sophistication of R&D management practice. Some aspects of R&D management practice, for example, the generation and utilization of technical reports and the cultivation of professional knowledge, can be reinforced by office support and alliance. With adequate resource support, more sophisticated R&D management practice does lead to better innovation performance as measured by the number of new products, patents, and technical reports.
Research limitations/implications
The findings are derived only from the high‐tech industry in Taiwan. This regional limitation is inevitable in a single study. In the future, more regions can be investigated and compared.
Practical implications
R&D management practice links closely to innovation performance. Disciplined and sophisticated practice improves innovation performance in many ways under different contingencies.
Originality/value
R&D management practice was never a focus of study. This paper approaches the topic of innovation performance from this perspective and confirms its importance in many ways.
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Philip Kofi Adom, Dosse Mawussi Djahini-Afawoubo, Saidi Atanda Mustapha, Stephane Gandjon Fankem and Nghargbu Rifkatu
The agriculture sector in Africa is a major employer, but production levels have fallen short of demand. To match future demand, public investment in research and development (R&D…
Abstract
Purpose
The agriculture sector in Africa is a major employer, but production levels have fallen short of demand. To match future demand, public investment in research and development (R&D) is required. The purpose of this paper is to investigate how foreign direct investments (FDIs) moderate the effects of public R&D on Africa’s agricultural production.
Design/methodology/approach
This study estimates an unbalanced panel fixed effect model that consists of 28 African countries covering the period 1980–2014.
Findings
Public R&D increases production in the agriculture sector, however, the effects reverse after ten years. Though FDIs have direct positive effects on production, indirectly, it reduces the productivity potential of public R&D due to the possible dependency syndrome associated with FDIs. Traditional inputs like land, capital, and labour and good political institutions positively drive production, but adverse changes in the weather reduce production.
Practical implications
There should be a frequent update of R&D and improvement in maintenance culture. FDIs should be seen as complementary efforts, and not as substitute efforts to domestic investment efforts in R&D.
Originality/value
Insufficient domestic investment has increased the dependence on FDIs. In this regard, FDIs effect on production could be tricky since it increases the volatility in agricultural R&D. This paper contributes to the literature by examining how FDIs moderate the effects of public R&D on output.
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Avinash Shivdas and Sougata Ray
The economic value generated by a firm is determined by the efficient management of its resources within a given business environment. The Indian pharmaceutical industry is highly…
Abstract
Purpose
The economic value generated by a firm is determined by the efficient management of its resources within a given business environment. The Indian pharmaceutical industry is highly competitive and has attracted huge investments in research and development (R&D), including financing of biotechnological ventures, clinical trials, contract research activities in addition to traditional product development and filing of regulatory requirements. This study aims to identify the specific resources that are significant drivers of performance.
Design/methodology/approach
Data analysis uses panel regression based on an extended version of the Cobb-Douglas production function, where the dependent variable firm performance is measured using annual sales whilst the independent variables include labour, capital, R&D investments and marketing efforts. This study uses data spanning a period of 7 years (2012–2018) collected from 151 Indian pharmaceutical firms.
Findings
Contrary to the general understanding that R&D investments tend to create profitable opportunities, it is observed that R&D expenditures have a negative impact on sales in the short to medium time period. This study also highlights the finding that in addition to the positive impact of labour and capital, marketing efforts are more likely to have a greater positive influence on firm performance than R&D.
Originality/value
The uniqueness of the paper lies not only in the counterintuitive findings but also in the methodology used to capture the impact of the lagged effect of R&D investments on firm performance. Specifically, a regression model-based both on panel data and time-series averages is used to examine the said impact.
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Gang Chen, Luke L. Mao, Nathan David Pifer and James J. Zhang
This study investigated the effectiveness and applicability of China’s innovation-driven policies on encouraging sports firms to invest in research and development (R&D…
Abstract
Purpose
This study investigated the effectiveness and applicability of China’s innovation-driven policies on encouraging sports firms to invest in research and development (R&D) activities.
Design/methodology/approach
Through a series of multiple linear regression models, this study examined the direct and interaction effects of innovation-driven polices and firm characteristics on R&D investment for sport firms listed on the New Third Board in China.
Findings
Results showed that financing constraints and certification as a high-tech enterprise were not themselves significant predictors of R&D investment; instead, the number of R&D staff and a firm's total assets were identified as key internal factors predicting the level of a firm's R&D investment. Other effective policy tools for stimulating Chinese sport firms' R&D investments included pre-tax deductions of R&D expenses, government R&D subsidies and income tax relief for high-tech enterprises, although their effects were heterogeneous.
Research limitations/implications
This study observes a new theoretical discovery that when the financing constraints do not limit R&D investment, innovation-driven strategies remain effective tools to stimulate the R&D investment of sports firms.
Practical implications
The findings provided practical guidance for both government–industry policymakers and sport business managers to prioritize the identified areas of significance when promoting R&D.
Originality/value
First, this study focused on sport firms, which constitute a quickly growing industrial sector in China. The findings offered important insights for the government as well as corporate management with regard to promoting new industries and new enterprises. Second, this paper analyzed the effects of three special innovation-driven policies on R&D investment and explored enterprise innovation development in more detail. Third, this paper discussed not only the effects of innovation-driven policies on R&D investment but also the heterogeneity of their effects. The related conclusions could help improve the development, implementation and assessment of innovation-driven policies.