Effect of private and public investment in R&D on innovation in Mexico’s biotechnology firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rubén Oliver-Espinoza ◽  
Federico Stezano
Keyword(s):  
Public Investment ◽  
Innovation Process ◽  
Probit Model ◽  
Innovation Activity ◽  
Marginal Effect ◽  
Public Financing ◽  
Content Type ◽  
Biotechnology Firms ◽  
Private And Public ◽  
Private Financing

Purpose In light of the controversy between the theoretical importance of financing biotechnology firms’ research and development (R&D), and the firms’ contradictory and ambivalent empirical results, this paper aims to contribute to the debate by providing empirical evidence from Mexico’s case. Design/methodology/approach The authors use the probit model to determine if firms’ achievements in innovations are related to both private and public financing, and if so, to calculate their marginal effect on the firms’ innovation (n = 40 from 53 firms: 75.5% response). The survey was applied in 2015. Findings Although a large proportion of the firms innovate and dedicate resources to R&D activities, neither private financing (different from the R&D portion of sales) nor public financing has an impact on innovation activity. Research limitations/implications It is necessary to increase the number of studies that corroborate the type of link established between innovations in biotechnology firms and financing. Analyzing the financing/innovation links at various stages of the innovation process would also be relevant. Originality/value The research results support the perspective that the theoretical relationship between the financing and achievements of innovation is not conclusive and point to relevant considerations for the public policy agenda of the case study.

Does foreign direct investment influence R&D activity in the host country? Evidence from Vietnam

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Van Ha ◽  
Mark J. Holmes ◽  
Gazi Hassan
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Investment ◽  
Direct Investment ◽  
Probit Model ◽  
Innovation Activity ◽  
Heckman Selection Model ◽  
Content Type ◽  
Domestic Firms ◽  
The Impact ◽  
Local Firms

PurposeThis study focuses on the linkages between foreign direct investment and the research and development (R&D) and innovation activity of domestic enterprises in Vietnam.Design/methodology/approachThe Heckman selection model approach is applied to a panel dataset of nearly 7,000 Vietnamese firms for the 2011–2015 study period to investigate the impact of foreign presence on the R&D of local firms through horizontal and vertical linkages. Probit model estimation is employed to examine how foreign investment influences the innovation activity of local companies.FindingsWhile there are a small number of firms carrying out R&D activities in Vietnam, foreign or joint domestic–foreign venture firms are less inclined than domestic firms to undertake R&D. Domestic factors that include capital, labor quality, location and export status of firm have a significant effect on the decision of domestic firms to participate in R&D activity. Only forward linkages and the gross firm output are found to have an impact on the R&D intensity of domestic enterprises, while other factors appear to have no significant influence on how much firms spend on R&D activities.Practical implicationsIn order to promote the R&D activity of domestic firms, policy should focus on (1) the backward linkages between local firms in downstream sectors with their foreign suppliers in upstream sectors, and (2) the internal factors such as labor, capital or location that affect the decisions made by domestic firms.Originality/valueGiven that foreign investment may affect R&D and innovation activity of local firms in host countries, the impact is relatively unexplored for many emerging economies and not so in the case of Vietnam. The availability of a unique survey on Vietnamese firm technology and competitiveness provides the opportunity to address this gap in the literature.

Cyient: enabling innovation through idea tree initiative

2020 ◽  
Vol 10 (3) ◽  
pp. 1-26
Author(s):  
Nidheesh Joseph ◽  
Upam Pushpak Makhecha
Keyword(s):  
Innovation Management ◽  
Innovation Process ◽  
Cost Savings ◽  
Cost Effective ◽  
Process Models ◽  
Innovation Activity ◽  
Business Unit ◽  
Content Type ◽  
Academic Level ◽  
Digital Format

Learning outcomes The case would help students to learn the concept of high involvement innovation activity and how to apply it in large service organizations to increase innovation involvement. The case will help the students to reflect on the significance of organizing structure and culture of an organization for enabling innovation and innovation process models. The case would further help the students to develop the skill to plan and implement simple, innovative innovation process models which will increase the ideation capabilities of the organization. The students will also be able to understand the role of informal learning in innovation and how to facilitate it. Case overview/synopsis Cyient – a global services firm – had always focused on innovation as a key strategic capability winning various annual client awards for over a decade. However, in 2012, Cyient missed the innovation awards which led to the introduction of Idea Tree initiative in Aerospace & Defense (AED) business unit of Cyient. Cyient was able to co-create patents and offer cost savings to its clients through the Idea Tree initiative. This cost-effective and unique initiative resulted in re-organizing the structure (from formal to a quasi-formal), culture (open to new ideas, mistakes and failures) and process (stage-gate) inside Cyient AED business unit. However, Idea Tree also suffers from challenges such as lack of a digital format, lack of corporate presence across Cyient and its highly informal nature. In this context, the CEO wants to review the Idea Tree initiative to decide on its future in Cyient. Complexity academic level The case is suitable for teaching multiple facets of innovation for MBA and Executive MBA classes in core Strategy, Managing Organizations and Entrepreneurship and for elective courses such as Innovation Management, Organizing for Innovation or HRM for Innovation. The case is suitable for both fresher and experienced participants. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 6: Human Resource Management.

scholarly journals Towards a framework for ethical innovation in children’s social care

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martha Hampson ◽  
Carlie Goldsmith ◽  
Michelle Lefevre
Keyword(s):  
Social Care ◽  
Social Research ◽  
Code Of Ethics ◽  
Innovation Process ◽  
Ethical Framework ◽  
Innovation Activity ◽  
Future Research ◽  
Specific Context ◽  
Content Type ◽  
Organisational Ethics

Purpose Substantial government investment has accelerated innovation activity in children’s social care in England over the past decade. Ethical concerns emerge when innovation seems to be propelled by a drive for efficiency and over-reliance on process output indicators, as well as, or even instead of, improving the lives of children, families and societies. No ethical framework exists at present to act as a check on such drivers. This paper reviews the literature with the aim of considering how best to address this gap. Design/methodology/approach This paper draws on a review of innovation in children’s social care, conducted as part of an Economic and Social Research Council-funded project exploring innovation in services for young people exposed to extra-familial risk and harm. Findings This study proposes a new conception of “trustworthy innovation” for the sector that holds innovation in children’s social care to the standards and principles of the code of ethics for social work. This study offers an ethical framework, informed by the interdisciplinary school of organisational ethics, to operationalise this extended definition; the analytic framework guides policymakers and the practice sector to question at every stage of the innovation process whether a particular model is ethically appropriate, as well as practically feasible within a specific context. Implications for local decision-making and national policy are set out, alongside questions raised for future research. Originality/value This paper is the first to offer an ethical framework for innovation in children's social care. The conception of “trustworthy innovation” offers a guide to policymakers and the practice sector, which they can use to ethically test every stage of the innovation process and make decisions about whether a particular model is ethically appropriate, as well as practically feasible within a specific context.

Farmer’s adoption tendency towards drought shock, risk-taking networks and modern irrigation technology: evidence from Zhangye, Gansu, PRC

2020 ◽  
Vol 12 (4) ◽  
pp. 431-448
Author(s):  
Yongfeng Tan ◽  
Lu Qian ◽  
Apurbo Sarkar ◽  
Zhanar Nurgazina ◽  
Uzair Ali
Keyword(s):  
Risk Taking ◽  
Arable Land ◽  
Probit Model ◽  
Gansu Province ◽  
Bank Loans ◽  
Marginal Effect ◽  
Content Type ◽  
Drought Impact ◽  
Irrigation Technology ◽  
The Impact

Purpose The purpose of this paper is to measure Farmer’s adoption tendency towards drought shock, risk-taking networks and modern irrigation technology. Design/methodology/approach Based on this assumption, this paper evaluated the data gathered from 498 household surveys of Zhangye, Gansu province, PRC, by using the binary probit model. First, the empirical data was analyzed for evaluating the impact of drought shock and risk-taking tendencies on the adoption of modern irrigation technology by farmers. Second, the authors introduced informal risk-bearing networks with formal risks. Final, based on the empirical results, the sustainability test, along with the marginal effect analysis and the degree of impact was carried out. Findings The results show that the drought shock has a significantly deferent effect on the modern irrigation technology of the farmers. The probability of using technology for each level of drought loss is reduced by 15.02%. The risk-taking network has a significant role in promoting the modern irrigation technology of farmers. The probability of adoption for each additional unit of rural household labor security supply, the likelihood of adoption by farmers increased 23.11%, the probability of approval for each level of relative support, and neighborhood assistance by farmers increased by 13.11% and 17.88% respectively. This study further revealed that insurance purchases enabled farmers to adopt new irrigation technology with the probability increased by 24.99%; easily available bank loans increased the probability of farmers using irrigation technology by 31.89%. From the perspective of interactions between farmers, the risk-taking network can alleviate the inhibitory effect of drought impact towards the adoption of irrigation technology. Among the control variables, the number of years of education, the age of farming, the degree of arable land, the distance from home to the market, and the price of water all has significant effects on the adoption of modern irrigation technology by farmers. Originality/value The novelty of the study is that it illustrated the interactive influence of drought shock and risk-taking networks on the farmer’s adoption tendencies of modern irrigation technologies, the inner relationship among drought impact, the risk-taking network and the farmer’s adoption behavior and provide an interactive relationship between the formal risk-taking network and the non-risk-taking network in farmer’s technology adoption.

How individual’s characteristics influence financial inclusion: evidence from MENAP

2018 ◽  
Vol 11 (4) ◽  
pp. 553-574 ◽  
Author(s):  
Fadi Hassan Shihadeh
Keyword(s):  
Probit Model ◽  
Individual Characteristics ◽  
Financial Inclusion ◽  
Marginal Effect ◽  
North African ◽  
Bank Account ◽  
Content Type ◽  
Access To Credit ◽  
The Poor ◽  
Medical Issues

Purpose This study aims to analyze the financial inclusion of individuals living in the Middle East, North African, Afghanistan and Pakistan (MENAP). It intends to show the influence of these individuals’ characteristics on financial inclusion, using the World Bank Global Findex Database 2014 for 16 countries in the region. Design/methodology/approach A probit model is used to examine the marginal effect of financial inclusion of the characteristics of individuals living in the MENAP region. These characteristics include gender, age, income and education. Individual characteristics that are linked to the main financial-inclusion indicators include having a formal account and formal saving and borrowing. The barriers to having a formal account, alternative borrowing sources and motivations for borrowing are also linked to the respondents’ characteristics. Findings The results indicate that females and the poor are less likely to be included in financial systems, while education level enhances financial inclusion. As disadvantaged people consider access to credit is important to improving their lives, the study finds that the poor are more likely to borrow for medical issues than for other needs. While Islam is the majority religion in the MENAP region, it is not considered a barrier to having a formal bank account. Furthermore, people in different income quintiles are more likely to use informal financial sources, while the educated are more likely to use formal ones. Practical implications The results show that policymakers in MENAP should make more of an effort to enhance financial inclusion as a way to enhance economic development in the region. Also, governments institutions, such as central banks, financial ministries and other institutions, could build on these results to enhance financial inclusion as a way toward development in the MENAP region. Originality/value To the author’s best knowledge, this is the first study to examine the influence of individuals’ characteristics on financial inclusion in the MENAP region.

The spinner innovation model: understanding the knowledge creation, knowledge transfer and innovation process in SMEs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Mota Veiga ◽  
Ronnie Figueiredo ◽  
João J. M. Ferreira ◽  
Filipe Ambrósio
Keyword(s):  
Knowledge Transfer ◽  
Knowledge Creation ◽  
Innovation Process ◽  
Strategic Decision ◽  
Primary Data ◽  
Public And Private ◽  
Content Type ◽  
Private Knowledge ◽  
Private And Public ◽  
Innovation Model

PurposeThe objective of this article is to empirically study the influence of the characteristics of small- and medium-sized enterprises (SMEs) in the processes of knowledge creation, knowledge transfer and innovation in conjunction with the utilisation of private and public knowledge (KM) in accordance with the “spinner innovation model” (SIM).Design/methodology/approachThe article deploys a sample of primary data generated by a questionnaire applied to the managers of hotel SMEs in Portugal. This involved the application of the covariance and multiple regression analytical methods.FindingsThe results demonstrate that some of the SME characteristics return significant impacts on private and public KM: the processes of knowledge creation, transfers of knowledge and innovation. The results also identify how private KM statistically predicts the processes of knowledge creation and transfer and innovation while public KM shapes and influences the creation of knowledge.Research limitations/implicationsAs with any other such study, the key limitation stems from the sample made up of 82 hotel directors, which represents only a low rate of response even though the project deployed all of the procedures available to avoid such an outcome.Practical implicationsThe SIM approach to the innovation process may assist strategic decision-makers to improve their tools and relations, avoid repeated working overlaps in existing processes as well as enabling more competitive approaches in terms of innovation.Social implicationsFurthermore, the responses ascertained reflect only the universe of study, conditioned by the context that produced them; hence, any generalisation of the results requires due caution.Originality/valueThis is the first study to empirically analyse the influence of the characteristics of SMEs over the processes of creating and transferring knowledge and innovation based upon applying the SIM and observing the extent of public and private knowledge in the hotel sector of Europe, more specifically, Portugal.

Paradoxical influence of family ownership on innovation-focused organizational change

2019 ◽  
Vol 9 (4) ◽  
pp. 429-450
Author(s):  
Izabela Szymanska ◽  
Anita Blanchard ◽  
Kaleigh Kuhns
Keyword(s):  
Organizational Change ◽  
Family Business ◽  
Innovation Management ◽  
Research Question ◽  
Family Members ◽  
Innovation Process ◽  
Innovation Activity ◽  
Monitoring And Control ◽  
Content Type ◽  
The Family

Purpose The purpose of this paper is to focus on efforts of a large department store to increase its business advantage by boosting innovation. The first broad research question of this study investigated how the family and non-family members influence the process of organizational change aimed at greater innovativeness in a successful retail family business. The second research question was how the family enterprise handles the tension between change stemming from innovation and progress and the need for stability continuity tradition and maintenance of family control. Design/methodology/approach This study is an in-depth inductive analysis (Glaser and Strauss, 1967) of an important and unique case (Yin, 1994). Findings The results of the study indicate that the push toward innovation was initiated by family members and that it was focused largely on creating structural support for the innovation activity keeping this activity tightly under monitoring and control by upper management. The attempts at equipping employees with innovation-relevant decision-making authority or consulting the clients in designing novel projects were absent, while the move to change the organizational culture was measured. Originality/value This study makes several contributions to the academic literature. It offers an empirical assessment of the effects of emotional attachment and ownership concentration on innovation management, a phenomenon postulated by Kotlar et al. (2016). These two characteristics pulled innovation-boosting initiative in opposite directions creating a unique dynamics. This research also provides an example of organizational identity that hinders the innovation process in the context of a family business that survived and developed over generations.

Meeting up for management control: bracketing interaction in innovation development

2019 ◽  
Vol 16 (1) ◽  
pp. 144-178 ◽  
Author(s):  
Sirle Bürkland ◽  
Frederik Zachariassen ◽  
João Oliveira
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Innovation Process ◽  
Management Control ◽  
Innovation Development ◽  
Content Type ◽  
Biotechnology Firms ◽  
Innovation Projects ◽  
Regulative Mechanism ◽  
Instrumental View

PurposeThe purpose of this paper is to examine meetings as a form of meta-practice and investigate their role related to management control of innovation development.Design/methodology/approachThis research draws on case studies of two biotechnology firms operating in pharmaceuticals and medicine, which represent different contexts regarding the uncertainty and complexity of innovation development.FindingsThe study suggests two distinct roles of meetings in the context of innovation development: meetings as regulating and ordering; and meetings as a resource. In the first role, meetings serve as a regulative mechanism that brings together multiple elements of control into a system. Meetings as a meta-practice regulate and order by bracketing elements of innovation in time and space, rendering the innovation process more manageable and allowing actors to handle the complexity of knowledge. In the second role, meetings are used as a resource, sporadically intervening in the ongoing activities of innovation projects. The study explains how these two roles relate to the uncertainty and complexity of innovation development and have different implications for management control.Originality/valueThe study challenges the instrumental view of meetings by taking a closer look at their structuring potential in the organization. Understanding the roles of meetings provides another perspective on the functioning of management control and opens new avenues for studying the practices of control and decision-making.

Going public in Mexico

2018 ◽  
Vol 31 (1) ◽  
pp. 156-176
Author(s):  
María de las Mercedes Adamúz ◽  
José Luis Rivas
Keyword(s):  
Initial Public Offerings ◽  
Design Methodology ◽  
Probit Model ◽  
International Literature ◽  
Market Conditions ◽  
Going Public ◽  
Public Companies ◽  
Content Type ◽  
Public Offerings ◽  
Private And Public

Purpose The purpose of this paper is to examine the factors that affect the likelihood of being public using a comprehensive database of private and public companies in Mexico, from all sectors, during 2006-2014. Design/methodology/approach The authors estimate a longitudinal probit model to identify the ex ante characteristics of public Mexican firms that differentiate them from those Mexican firms that continue to remain private. Findings The authors find that larger, younger and less levered Mexican firms are more likely to be public in Mexico. They additionally test the influence of market conditions and location on the probability of being public. They find that location matters but they find no evidence that initial public offerings (IPOs) are driven by favorable Mexican market conditions. Originality/value This paper contributes to the Mexican and international literature on IPOs because it uses an original database built from information of private and public Mexican firms. The study contributes to a better understanding of the determinants of the decision of going public in Mexico.

Job satisfaction: how crucial is participative decision making?

2016 ◽  
Vol 45 (1) ◽  
pp. 183-200 ◽  
Author(s):  
Gail Pacheco ◽  
Don Webber
Keyword(s):  
Job Satisfaction ◽  
Decision Making ◽  
Positive Impact ◽  
Unobserved Heterogeneity ◽  
Probit Model ◽  
Marginal Effect ◽  
Bivariate Probit ◽  
Content Type ◽  
Bivariate Probit Model ◽  
The Impact

Purpose – The purpose of this paper is to empirically examine the role of perceived ability to participate in decision making in the workplace, with respect to job satisfaction. Design/methodology/approach – Data from the fourth wave of the European Value Survey, is utilised, and a bivariate probit model is employed to account for unobserved heterogeneity. Findings – Empirical analysis comparing univariate and bivariate probit models reveals that the results from the former are negatively biased; potentially indicating that prior research may have underestimated the impact of participative decision making (PDM) on job satisfaction. Additionally, it appears clear that the magnitude of the marginal effects for both socio-demographic and work characteristics do not differ when comparing workers with above and below average participation. More importantly, the authors find a substantial negative marginal effect of below average participation on job satisfaction (close to three times the magnitude of the next largest marginal effect estimated in the model), indicating how crucial it is for employers to actively pursue programmes that enhance PDM. Originality/value – This study contributes to the growing literature aimed at understanding drivers of satisfaction in the workplace. Adding to the scant empirical investigation of the influence of PDM on job satisfaction, the authors find strong evidence of a direct and positive impact, which is further amplified after controlling for unobserved heterogeneity.

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