Absorptive capacity in a two-sector neo-Schumpeterian model: a new role for innovation policy

2019 ◽  
Vol 29 (2) ◽  
pp. 507-531
Author(s):  
Isabel Almudi ◽  
Francisco Fatas-Villafranca ◽  
Carlos M Fernández-Márquez ◽  
Jason Potts ◽  
Francisco J Vazquez
Keyword(s):  
Absorptive Capacity ◽  
Innovation Policy ◽  
Capacity Constraints ◽  
Knowledge Evolution ◽  
Sector Model ◽  
Innovative Capabilities ◽  
Innovative Capacity ◽  
Downstream User ◽  
Targeted Approach

Abstract We propose a new co-evolutionary computational two-sector approach to the design of national innovation policy that recognizes the importance of intersectoral absorptive capacity constraints in innovation linkages between sectors in an economy. We show how the innovative capacity of an upstream producer sector can be constrained by the absorptive capacity of the downstream-user sector. This suggests that the low productivity performance of modern innovation policy might in part be understood as a consequence of sectorally unbalanced knowledge evolution, where the problem lies in underinvestment in innovative capabilities in the downstream sector. Our computational two-sector model suggests an important role for innovation policy to create a balanced, sectorally targeted approach.

Process Innovation with Ambient Intelligence (AmI) Technologies in Manufacturing SMEs

2012 ◽  
pp. 1026-1042
Author(s):  
Kathryn J. Hayes ◽  
Ross Chapman
Keyword(s):  
Absorptive Capacity ◽  
Ambient Intelligence ◽  
Manufacturing Industry ◽  
Innovation Policy ◽  
Capacity Constraints ◽  
Capacity Limitations ◽  
Industry Standards ◽  
Ict Industry ◽  
Research Organisations

This chapter considers the potential for absorptive capacity limitations to prevent SME manufacturers benefiting from the implementation of Ambient Intelligence (AmI) technologies. The chapter also examines the role of intermediary organisations in alleviating these absorptive capacity constraints. In order to understand the context of the research, a review of the role of SMEs in the Australian manufacturing industry, plus the impacts of government innovation policy and absorptive capacity constraints in SMEs in Australia is provided. Advances in the development of ICT industry standards, and the proliferation of software and support for the Windows/Intel platform have brought technology to SMEs without the need for bespoke development. The results from the joint European and Australian AmI-4-SME projects suggest that SMEs can successfully use “external research sub-units” in the form of industry networks, research organisations and technology providers to offset internal absorptive capacity limitations.

Process Innovation with Ambient Intelligence (AmI) Technologies in Manufacturing SMEs

2011 ◽  
pp. 65-82
Author(s):  
Kathryn J. Hayes ◽  
Ross Chapman
Keyword(s):  
Absorptive Capacity ◽  
Ambient Intelligence ◽  
Manufacturing Industry ◽  
Innovation Policy ◽  
Capacity Constraints ◽  
Capacity Limitations ◽  
Industry Standards ◽  
Ict Industry ◽  
Research Organisations

This chapter considers the potential for absorptive capacity limitations to prevent SME manufacturers benefiting from the implementation of Ambient Intelligence (AmI) technologies. The chapter also examines the role of intermediary organisations in alleviating these absorptive capacity constraints. In order to understand the context of the research, a review of the role of SMEs in the Australian manufacturing industry, plus the impacts of government innovation policy and absorptive capacity constraints in SMEs in Australia is provided. Advances in the development of ICT industry standards, and the proliferation of software and support for the Windows/Intel platform have brought technology to SMEs without the need for bespoke development. The results from the joint European and Australian AmI-4-SME projects suggest that SMEs can successfully use “external research sub-units” in the form of industry networks, research organisations and technology providers to offset internal absorptive capacity limitations.

ICT SMEs, Performance, Absorptive Capacity and Transformative Capacity

2019 ◽  
Vol 118 (3) ◽  
pp. 178-188
Author(s):  
Yeon-Sung Cho ◽  
Kyung-Il Khoe
Keyword(s):  
Firm Performance ◽  
Market Orientation ◽  
Empirical Analysis ◽  
Absorptive Capacity ◽  
Latent Variables ◽  
Equation Modeling ◽  
Transformative Capacity ◽  
The Impact ◽  
The Empirical Analysis ◽  
Innovative Capacity

This study intends to integrate the relationship of market orientation, innovative capacity and firm performance to Information and Communication Technology(ICT) SMEs. The purpose of this study is to identify the role of absorptive capacity and transformative capacity that affect the performance of ICT SMEs. Hypotheses were established between five latent variables. A total of six hypotheses were established including the moderated effects of absorptive capacity and transformative capacity. Of the data collected after the survey, 112 valid surveys were selected as the final sample, except for 17 questionnaires with high non - response and insincere response. The empirical analysis of this study used smartpls3.0, Partial Least Squares (PLS), a variance-based structural equation modeling. The empirical analysis of this study revealed that the impact of market orientation on innovative capacity was significant. Moreover, the innovative capacity had a positive effect on the performance of ICT SMEs. In addition, the absorptive activity had a positive moderated effect between the market orientation and the innovative capacity. On the other hand, the transformative capacity showed a positive moderated effect in relation to innovative capacity and firm performance. Our empirical results have demonstrated the importance of knowledge based capacity in the ICT SMEs.

scholarly journals Firm’s strategic choices and network knowledge dynamics: how do they affect innovation?

2018 ◽  
Vol 22 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Jose Antonio Belso-Martinez ◽  
Isabel Diez-Vial
Keyword(s):  
Absorptive Capacity ◽  
Knowledge Networks ◽  
Knowledge Network ◽  
Strategic Choices ◽  
Network Growth ◽  
Content Type ◽  
Endogenous Factors ◽  
The Impact ◽  
Innovative Capacity ◽  
Over Time

Purpose This paper aims to explain how the evolution of knowledge networks and firms’ strategic choices affect innovation. Endogenous factors associated with a path-dependent evolution of the knowledge network are jointly considered with a firm’s development of international relationships and increasing internal absorptive capacity over time. Design/methodology/approach In a biotech cluster, the authors gathered data on the firms’ characteristics and network relationships by asking about the technological knowledge they received in the cluster in 2007 and 2012 – “roster-recall” method. Estimation results were obtained using moderated regression analysis. Findings Firms that increase their involvement in knowledge networks over time also tend to increase their innovative capacity. However, efforts devoted to building international links or absorptive capacity negatively moderate the impact of network growth on innovation. Practical implications Practitioners have two alternative ways of increasing innovation inside knowledge networks: they can increase their centrality by developing their knowledge network interactions or invest in developing their internal absorptive capacity and new international sources of knowledge. Investing in both of these simultaneously does not seem to improve a firm’s innovative capacity. Originality/value Coupling firms’ strategic options with knowledge network dynamics provide a more complete way of explaining how firms can improve their innovative capacity.

Absorptive Capacity, R&D Intensity and Innovation Results

2010 ◽  
pp. 152-165
Author(s):  
Jorge Cruz-González ◽  
Miriam Delgado-Verde
Keyword(s):  
Absorptive Capacity ◽  
Dynamic Capabilities ◽  
Software Industry ◽  
Explanatory Power ◽  
Rapid Change ◽  
Sustainable Competitive Advantage ◽  
Key Factors ◽  
Resource Based View ◽  
The World ◽  
Innovative Capacity

The dynamic capabilities Perspective has emerged in the last decade to improve the explanatory power of the Resource-Based View of the firm with regard to obtaining sustainable competitive advantage by firms operating in rapid change environments. However, some aspects of its conceptualization, especially in relation to the factors that make up them, do not appear to be entirely clear. Accordingly, the aim of the present chapter is to provide a conceptual synthesis of the construct, trying to identify the key factors involved in the development of dynamic capabilities by firms. Based on a sample of 177 companies around the world operating in the software industry, the authors derive an empirical study. Their findings suggest that firms that jointly develop absorptive capacity and innovative capacity achieve better results.

The Impact of Corporate Culture on the Absorptive Capacity and Innovative Capacity of Companies

2013 ◽  
Vol 4 (3) ◽  
pp. 36-51
Author(s):  
Enric Serradell López ◽  
Carlos Grau Alguero
Keyword(s):  
Cultural Values ◽  
Corporate Culture ◽  
Absorptive Capacity ◽  
Significant Influence ◽  
Latent Variable ◽  
Management Strategies ◽  
Radical Innovation ◽  
Structural Equations ◽  
The Impact ◽  
Innovative Capacity

The purpose of this study is to gain a better understanding of the influence of corporate culture in the absorptive and innovative capacities of Spanish enterprises. This is an exploratory study conducted involving top managers from a sample of 53 large Spanish companies. An empirical analysis is performed using a structural equations model and bootstrapping methodology. The paper highlights the role of corporate culture as a concept that has a significant influence on the absorptive capacity and also on the innovative capacity of enterprises. The absorptive capacity is presented as a system that makes a work of observation, identification, collection and use of information and knowledge from abroad, which is considered essential to achieving and sustaining competitive advantage. The research performed shows how the different components of absorptive capacity, found in the literature are significant configuring the capacity as a latent variable with economic sense. Furthermore, regarding the sample studied, corporate culture has a significant influence on the innovative capacity. The model explains the influence of culture in the innovative capacity, and in the two components of it, incremental and radical innovation. The investigation has found also some interactions not included in the model proposed, as for example the relationship between the recognition as the part of the absorptive capacity component more related with radical innovation. The empirical model performed need to be replicated with other samples for further findings and possible generalization. Deconstructing corporate culture in eight dimensions permits to use some of them in a prescriptive way. The adoption of certain cultural values and attitudes and the use of management strategies designed to promote these values and attitudes, encourage the company to more easily benefit from the opportunities of their environment, increasing the ability to manage information of the environment.

Macroeconomic Policy Frameworks for Resource-Rich Developing Countries--Analytic Frameworks and Applications

Policy Papers ◽  
2012 ◽  
Vol 2012 (71) ◽  
Author(s):  
Keyword(s):  
Developing Countries ◽  
Policy Analysis ◽  
Absorptive Capacity ◽  
Scale Up ◽  
Macroeconomic Policy ◽  
Capacity Constraints ◽  
Policy Frameworks ◽  
External Sustainability ◽  
Analytical Frameworks ◽  
Fiscal Frameworks

This supplement presents the analytical frameworks underlying the IMF’s staff’s enhanced policy analysis and advice to resource-rich developing countries (RRDCs). The proposed macro-fiscal models, which are applied to selected country or regional cases, are aimed at addressing questions regarding how to deal with resource revenue uncertainty and how to scale up spending within relevant frameworks that ensure fiscal and external sustainability while addressing absorptive capacity constraints. The country applications confirm the importance attached by both IMF staff and country authorities of using the appropriate macro-fiscal frameworks to address the specific challenges faced by RRDCs.

Innovative capacity and sustainable food tourist influx to African-ethnic restaurants: The dynamic capabilities perspective

2020 ◽  
pp. 146735842096602
Author(s):  
Samson Omuudu Otengei ◽  
Wilber Manyisa Ahebwa
Keyword(s):  
Fast Food ◽  
Dynamic Capabilities ◽  
New Technology ◽  
Theoretical Explanation ◽  
Policy And Practice ◽  
Sustainable Food ◽  
Study Approach ◽  
Innovative Capabilities ◽  
Adoption Of New Technology ◽  
Innovative Capacity

The paper presents findings on how innovative capacity influences sustainable food tourist inflows to African-ethnic Restaurants (AERs) in East Africa. Informed by the Dynamic Capabilities Theory, a multiple case study approach was adopted to capture what the owner- managers bring to the research inquiry. This helped in an in-depth understanding of patterns and relationships of meanings. The study reveals that continuous food quality improvement, adoption of new technology, innovative authenticity assurance, customer involvement and personalized service, and engagement of dynamic tour and travel agents are strategically relevant in influencing sustainable food tourist inflows to AERs. Continuous use of popular flavourings, fresh materials, and adoption of best culinary practices such as “marinating” are a major reason for tourists’ re-visits to AERs. The findings further reveal that adoption of new technology for fast food preparation, attractive food presentation, and apposite service temperature lead to tourist attraction. It also emerged that the ability to respond to guest unique requests and specification is a valuable capability. In addition, the use of traditional paraphernalia, indigenous ingredients and, hiring creative traditional chefs is critical in retaining food tourists. Moreover, provision of diversity through an elaborate African buffet, eclectic cuisine, and regular menu reviews was found to be vital in attracting visitors to AERs. Thus, the study through innovative capabilities-based model, provides a theoretical explanation for food tourists’ influx to AERs, and presents implications for policy and practice.

scholarly journals FDI ATTRACTION AND INNOVATION POLICY: AN ABSORPTIVE CAPACITY APPROACH

2015 ◽  
Author(s):  
Bruno Brandäo Fisher
Keyword(s):  
Absorptive Capacity ◽  
Multinational Firms ◽  
Innovation Policy ◽  
Value Added ◽  
Developed Countries ◽  
Policy Framework ◽  
High Tech ◽  
Mediating Role ◽  
Interaction Terms ◽  
Strategic Issue

AbstractForeign Direct Investment represents a strategic issue within countries' industrial policies, provided there is a widespread expectation this particular kind of investment can cause positive shocks on host markets' overall capabilities. Our argument, in consonance with dedicated literature, is that these contributions do not take place without "frictions", and that there is a significant complementarity between FDI's effects and the innovation policy framework (particularly those initiatives that influence the existent level of systemic absorptive capacities). Using panel datasets for developing and developed countries we estimate production functions taking labor productivity, industrial value added, and high-tech exports as output indicators of National Innovation Systems. Through the application of interaction terms we find that levels of absorptive capacity measured by aggregate R&D expenditures determine the effective generation of benefits arising from multinational firms, while human capital conditions seem to play a marginal mediating role in this process.  RESUMENLa inversión directa extranjera representa una cuestión estratégica dentro de las políticas industriales, lo que se justifica por la expectativa generalizada respecto a los shocks positivos en las capacidades generales de los mercados anfitriones de este tipo particular de inversión. Nuestro argumento, en consonancia con la literatura especializada, es que estas contribuciones no tienen lugar sin "fricciones", y que hay una complementariedad significativa entre los efectos de la IDE y el marco de políticas de innovación (en particular las iniciativas que influyen en el nivel existente de las capacidades sistémicas de absorción). A partir de un conjunto de datos de panel para países desarrollados y en desarrollo, se estiman funciones de producción que tienen la productividad del trabajo, el valor añadido industrial y las exportaciones de alta tecnología como indicadores representativos de los Sistemas Nacionales de Innovación. A través de la aplicación de los términos de interacción, encontramos que los niveles de capacidad de absorción medido por el gasto agregado en I+D determinan la generación de efectivo de los beneficios derivados de empresas multinacionales, mientras que las condiciones de capital humano parecen jugar un papel mediador marginal en este proceso.  

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