An Analytical Modelling Approach for Assessing the Impact of Competition on a Homogenous Product Firm’s Investment Decision in Innovation

2018 ◽  
Vol 19 (3_suppl) ◽  
pp. S39-S53
Author(s):  
Arnab Adhikari ◽  
Samit Paul
Keyword(s):  
Investment Decision ◽  
Market Competition ◽  
Analytical Modelling ◽  
Innovation Activity ◽  
Fixed Costs ◽  
Innovation Capability ◽  
Analytical Methodology ◽  
Optimal Output ◽  
Innovation Activities ◽  
The Impact

Since the 2000s, the world has experienced a phenomenal growth of innovation initiatives in the homogenous product business. In this context, market competition is considered as one of the most important factors that influence innovation. Still, there is an absence of studies that capture the impact of competition on the innovation activities of homogenous product firms. Also, there is a dearth of analytical works that facilitate the theorization of the impact of competition on a firm’s innovation activities. It motivates us to propose an analytical methodology to assess the impact of the competition on a firm’s innovation in the context of the homogenous product market. We present a quantity competition based Cournot model to determine a homogenous product firm’s optimal output quantity and profitability. Here, we introduce a novel ‘innovation factor’ that describes a homogenous product firm’s innovation capability. We also devise the criteria regarding firm’s incentive to make an investment decision in innovation activity. According to our findings using analytical modelling and numerical analysis, a firm’s profitability decreases with increasing degree of competition. Also, a firm’s incentive to engage in innovation activity depends on the degree of competition, its innovation capability and fixed costs associated with the innovation.

The Covid-19 pandemic and technical efficiency of Russian firms: a stochastic frontier production function approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Parul Singh ◽  
Kashika Arora ◽  
Areej Aftab Siddiqui
Keyword(s):  
Technical Efficiency ◽  
Production Function ◽  
Market Competition ◽  
Stochastic Frontier ◽  
Innovation Activity ◽  
Peak Period ◽  
Role Of Government ◽  
Content Type ◽  
External Assistance ◽  
The Impact

Purpose This paper aims to undertake the efficiency analysis in the form of stochastic frontier to estimate a Cobb–Douglas production function by controlling for the heterogeneity across Russian firms by including firm size, ownership, age, innovation activity and market competition. Design/methodology/approach During the peak period of Covid-19, certain firms witnessed either a decrease or increase in sales. Using this segregation of firms from World Bank’s Covid-19 impact surveys follow-up to the Enterprise Survey for Russia, this study empirically investigates the determinants of technical efficiency of these firms focusing on the role of government assistance. Findings The findings suggest that by segregating firms in terms of sales, different internal factors can enable in steering through pandemic situation besides just depending on external assistance. Originality/value One of the few papers to analyse the impact of the pandemic on Russian firms by considering World Bank Covid Survey.

scholarly journals Learning-by-export effects in the russian software industry

2018 ◽  
pp. 38-49
Author(s):  
E. O. Bozheva
Keyword(s):  
New Technologies ◽  
New Products ◽  
Spillover Effects ◽  
Absorption Capacity ◽  
Innovation Activity ◽  
Local Market ◽  
Transfer Of Knowledge ◽  
Foreign Markets ◽  
Innovation Activities ◽  
The Impact

Learning-by-export effects exist due to the nature of the creation, accumulation, transfer of knowledge, as well as the companies’ absorption capacity to accumulate and adapt the best experience, competences borrowed from abroadwithin the organization. The length and direction of exports have a significant impact on the innovation activities of organizations, while innovations do not always encourage the leaders to initiate export activities. In the course of empirical research, we have identified the following rules in relation to Russian IT-firms:1) New IT-exporters have no visible link between the introduction of new products, technologies and the start of exports. Investments in research and development, which may have been initiated after entering foreign markets or at the same time, have not yet yielded results. 2) Stable export activity encourages IT-companies to apply new technological, process and marketing innovations that were not previously part of the firm's plans, much more often than firms in the local market. 3) The impact of external knowledge effects on the productivity of IT-companies depends on the geographical direction of exports: a) the markets of the near abroad (CIS countries) and Russia itself;b) the markets of the far abroad. 4) Investments in R&D, marketing and production of new products are more typical for companies located in capitals (Moscow and Saint-Petersburg). On the contrary, the relationship between the presence of an international office and the introduction of innovations has not been proven. The size of companies has only affected the production of new technologies: if a company is a medium-sized enterprise or a larger one, the probability of innovation is increased by 22%. 5) The smaller the firm, the lower its desire to participate in extensive innovation networks, increase the number and diversity of external relations. The size of the company determines the level of influence of cooperation with other market participants on its internal innovation processThe article discusses the classification of knowledge spillover effects, the methodology of the study, the analysis of the economic impact of the process "flow" as a result of entering foreign markets. The paper’s emphasis is on assessment of recipients’ capabilities to accumulate new knowledge in the course of export activities, to extract advantages in terms of future development such as increasing innovation activity and, consequently, attractiveness, resulting in higher performance efficiency.

Monopoly and corporate innovation: evidence from antitrust law

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minggui Yu ◽  
Yujing Huang ◽  
Huijie Zhong ◽  
Qing Zhang
Keyword(s):  
Economic Growth ◽  
Law Enforcement ◽  
Market Competition ◽  
Private Enterprises ◽  
Chinese Government ◽  
Antitrust Law ◽  
Content Type ◽  
Innovation Activities ◽  
Corporate Innovation ◽  
The Impact

Purpose There are two opposite views about whether the Antitrust Law is conducive to the development of the economy. One view is that the Antitrust Law can restrain monopoly, maintain market competition and benefit economic growth. The other view is that the Antitrust Law inhibits innovation by monopolistic firms and fosters rent-seeking, which is bad for economic growth. To provide a possible perspective for clarifying the controversy, this paper aims to answer the following two questions: first, will the Antitrust Law inhibit corporate innovation? Second, does the antitrust enforcement agency discriminate against private enterprises? Design/methodology/approach Based on the samples of A-share listed companies from 2003 to 2013, the authors use the implementation of China’s Antitrust Law in 2008 as a policy shock, take the monopoly enterprises in each industry as the treatment group and competitive enterprises as the control group, using the difference-in-differences method to test the impact of the implementation of the Antitrust Law on corporate innovation activities. Findings The results show that compared with competitive enterprises, the patent output of monopolistic enterprises was significantly reduced after the implementation of the Antitrust Law, which indicates that the Antitrust Law does inhibit the innovation activities of monopolistic enterprises. Further research finds that the innovation suppression effect of the Antitrust Law is more prominent in state-owned enterprises, which means that the government does not have “selective law enforcement” against private enterprises in the process of law enforcement. Therefore, the results provide evidence for the idea that government intervention is neutral. Originality/value First, the paper enriches and expands the research on the factors affecting corporate innovation from the perspective of market structure. Second, it enriches and expands relevant research on the consequences of implementing the Antitrust Law from the perspective of corporate innovation. Third, it not only provides the relevant empirical evidence for clarifying the dispute about the Antitrust Law but also is helpful to clarify whether the Chinese Government has “selective law enforcement” against private enterprises.

scholarly journals Methods of assessing the efficiency of innovation activities of industrial enterprises

2019 ◽  
Vol 265 ◽  
pp. 07029
Author(s):  
Nikolay Voytolovskiy ◽  
Andrey Butyrin ◽  
Andrey Chizhik
Keyword(s):  
New Technologies ◽  
Economic Indicators ◽  
Innovation Activity ◽  
Innovative Product ◽  
Economic Activities ◽  
Industrial Enterprises ◽  
Innovation Activities ◽  
Innovation Projects ◽  
Implementation Of Innovations ◽  
The Impact

The purpose of this study is to improve the methods for assessing the efficiency of innovation activity of an enterprise. The paper proposes a system of economic indicators to assess the market attractiveness of innovation projects and the readiness of the enterprise to implement them. Using these indicators, it is possible to predict the potential of an innovative product on the market, as well as to determine the financial and economic opportunities of the enterprise. The presented methods for assessing the impact of innovations on the development efficiency of the enterprise’s economic activities allow determining the growth rates of the main economic indicators of the organization. The developed mechanism for a comprehensive assessment of the implementation of innovations at the enterprise allows determining the commercial effectiveness of the introduction of innovations and the impact of new technologies on the intercompany results of the enterprise, resulting in the possibility of taking into account the commercial and intercompany efficiency of investment in projects.

scholarly journals Exploring the Impact of Strategic Flexibility on Business Model Innovation under the Open Innovation Activity: The Moderating Roles of Multiple Factors with Competitive Ties and Cooperative Ties

2020 ◽  
Vol 13 (7) ◽  
pp. 80
Author(s):  
Wang Xin
Keyword(s):  
Business Model ◽  
Open Innovation ◽  
Business Model Innovation ◽  
Innovation Activity ◽  
Strategic Flexibility ◽  
Internal Resources ◽  
Resource Flexibility ◽  
Innovation Activities ◽  
The Impact ◽  
The Relationship

This paper proposed a research model exploring the link among strategic flexibility, innovation openness, business model innovation, and introduced two moderating roles into this model. The result shows that innovation openness plays a partly mediating role between strategic flexibility and business model innovation. Collaborator ties negatively moderating the relationship between resource flexibility and innovation openness, positively moderating the relationship between coordination flexibility and innovation openness; The moderating effect of competitor ties is the same. In addition, the results of three interaction shows that the relationship between resource flexibility and innovation openness is negatively moderated by high collaborator ties and high competitor ties, while positively moderated by high collaborator ties and high competitor ties. It’s suggested that enterprises effectively integrate the relationship between internal resources with external competitors and cooperators according to their own strategic flexibility characteristics, embedded open innovation activities in business.

scholarly journals Opportunities to increase innovation activity in small and medium-sized industrial enterprises

2017 ◽  
Vol 1 (1) ◽  
pp. 45-51
Author(s):  
Siyka Dimitrova Demirova ◽  
Sibel Ilhanova Ahmedova
Keyword(s):  
Present Article ◽  
Economic Performance ◽  
Innovation Policy ◽  
Market Competition ◽  
Innovation Activity ◽  
Competitive Advantages ◽  
Industrial Enterprises ◽  
Innovation Activities ◽  
Research Analysis

In the context of increased market competition, SMEs continue to face market and consumption-induced problems related to the acquisition and maintenance of competitive advantages. In this regard, an important factor for the efficiency and improved economic performance of SMEs is the implementation of innovation and the introduction of an active innovation policy. The purpose of the present article is, on the basis of an research analysis, to set out the guidelines for enhancing the innovation activities in the small and medium-sized industrial enterprises.

scholarly journals PRIORITIES OF ECOLOGIZATION OF INNOVATIVE DEVELOPMENT OF THE ODESA REGION

2019 ◽  
Vol 21 (4(73)) ◽  
pp. 37-45
Author(s):  
O. L. HETMAN
Keyword(s):  
Public Administration ◽  
Market Competition ◽  
National Development ◽  
State Regulation ◽  
Social Needs ◽  
Innovation Activity ◽  
Innovative Development ◽  
Innovation Development ◽  
The Public ◽  
The Impact

Topicality. Globalization and Glocalization processes influence on National Economics and lead to the interdependence of national economies, the unification of the world economy. Globalization influence is manifested through transnational corporations, market competition, weakening of state regulation, exacerbation of environmental, social problems, etc. At the same time, modern processes of glocalization also have an impact on national development. The current situation changes the vector of state and regional government and influences the choice of the main areas of branding of the territory, one of the elements of which is the ecologization of innovative development. Eco-innovative perspective of the regional development requires a number of own new and active measures, involvement of all levels of the public administration, science, business, public representatives for taking into account social needs and interests. Therefore, the analysis of the impact of ecologization of innovative development and competitiveness of the region and determining priority areas of ecologization for the Odesa region is relevant today for the intensifies local and global positions of the region in an innovative domain.Aim and tasks. The aim of the article is analysis of the impact of ecologization of innovation development on competitiveness of the region (on the example of Odesa region) and outlining of priority directions of ecologization of innovative development.Research results. Analyzing the research of foreign and domestic scientists, we came to the conclusion that the final result of ecologization of innovation activity in the region is a positive socio- ecological and economic effects that ensure a balanced sustainable development of the region and the state as a whole. The identified priority directions of ecologization of innovative development of the Odesa region for preservation and strengthening of its differences in the system of action of factors of globalization, considered theoretical bases of ecologization of innovative development as an element of branding of the territory, made analysis of ecological component in innovation activity of the Odesa region. It has been concluded that ecologization of innovation development accelerates the processes of glocalization and strengthens the local and global position of the region in the innovation sphere.The modern accelerator of the glocalization of economic processes is the ecologization of innovation development, in the nature of which there are incentives for self-development, reproduction, generation of innovative ideas, production of new technologies, goods and services, ensuring the balancing of the socio-ecological and economic potential of the region and the country as a whole, which determines the direction, peculiarities and nature of the processes of glocalization.Conclusion. The concept of our investigation is that priorities of ecologization of innovation development setting should be made on the basis of identifying areas of concern in the region's development that require greening of innovation, taking into account the globalization component and developing infrastructure, that corresponding to the planned objectives of the new innovation strategy of Ukraine till 2030. The ecological compatibility of innovations intensifies local and global positions of the region in an innovative domain and is one of modern tools to advance glocalization processes. It is one of the best tools corresponding to overcoming obstacles for expanding product limits of strategic markets as well as their integration into global chains of the added value. Ecologization of innovative development of regions on the principles of gloсalization requires a number of own new and active measures, involvement of all levels of the public administration, science, business, public representatives for taking into account social needs and interests.

scholarly journals PECULIARITIES OF SPECIALIZATION OF REGIONAL ECONOMIC SYSTEMS IN THE CONTEXT OF SMART-SPECIALIZATION OF REGIONS

2021 ◽  
Author(s):  
Katerina Goncharova ◽  
◽  
Olga Varlamova ◽  
Оlena Lantuh ◽  
◽  
...  
Keyword(s):  
Sustainable Growth ◽  
Innovation Activity ◽  
Competitive Advantages ◽  
The Sustainable Development ◽  
Research And Innovation ◽  
Innovation Activities ◽  
The Face ◽  
Smart Specialization ◽  
Definition Of ◽  
The Impact

The article considers the economic essence of smart specialization of the region and identifies the impact of such specialization on increasing the competitiveness and innovation activity of the region. It is established that the main advantage of smart specialization at the regional level is to increase its competitiveness and innovation activity, as the presence of innovation in today's globalized world is a major factor in economic growth. The necessity of introduction of the concept of smart specialization in Ukraine in the field of regional policy is substantiated, first of all in the direction of involvement of universities, other educational establishments and research centers in definition of comparative advantages of regions and formation of strategies of their development on the basis of specialization. Smart specialization involves identifying strengths and developing the competitive advantages of regions based on the existing structure of the regional economy. In order to develop the economy and technology through innovation in the face of global competition, it is necessary to avoid duplication of research and innovation activities by different regions. In a broader context, smart is a specialization that includes the process of developing an innovative concept, identifying competitive advantages, and defining strategic priorities. The main principles of regional smart specialization were outlined. This model of regional development is aimed on solving such problems as: boosting the region innovation and competitiveness potential, as a basis for a sustainable growth model; increasing interregional cooperation, which is a key element in globalized economies; strengthening the focus on less developed and industrial transition regions. The examples of smart specialization were provided in the article. It is substantiated, that smart specialization is a new model of regional and interregional partnership, which has significant potential for providing the sustainable development of the Ukraine’s regions. The priorities of this model’s implementation were grounded.

scholarly journals INNOVATIVE ASPECTS OF SUSTAINABLE DEVELOPMENT OF THE ECONOMY OF UKRAINE

2021 ◽  
pp. 218-226
Author(s):  
Ludmila Ulyanova ◽  
Yuliia Chaika
Keyword(s):  
Sustainable Development ◽  
Development Strategy ◽  
Business Environment ◽  
Economic Life ◽  
Production Costs ◽  
Innovation Activity ◽  
Innovation Activities ◽  
Global Innovation ◽  
Analysis And Synthesis ◽  
The Impact

Introduction. To date, innovations have not had a significant impact on the Ukrainian economy, and at the same time the general macroeconomic situation does not contribute to the intensification of innovation in the business environment. Under the current conditions, Ukraine is forced to use and borrow production and management technologies from leading countries, to catch up with them in technological, innovative and technical development. In this regard, the country needs to focus on the continuous implementation of innovation as a priority of the country's sustainable development strategy. Purpose of the work is to consider the relationship and interdependence of innovation and sustainable development, to determine the impact of innovation on the economic, social and environmental components of development. Considerable attention is paid to identifying the features of innovation in Ukraine based on the analysis of the Global Innovation Index, the share of enterprises implementing innovations and the volume of sold innovative industrial products. Method (methodology). A systematic approach, methods of analysis and synthesis are used to identify the impact of innovation on the components of sustainable development. Historical and statistical methods are used in the analysis of the peculiarities of innovation in Ukraine. Results. Innovation processes and innovation activities affect the economic, social and environmental components of sustainable development. Impact on the economic component will reduce production costs, increase productivity, profitability and increase profits, improve product quality, create new sectors of the economy, increase GDP and increase the country's competitiveness, replenish the budget, increase the share of innovative products in general and in exports in particular . The impact on the social component will be manifested in better meeting the needs of society, improving the duration, quality and standard of living, improving the quality of education. Changes in the environmental component will take place under the influence of innovations in the form of conservation of natural resources and reduction of emissions into the environment. The analysis of the peculiarities of innovation activity in Ukraine showed that innovations in Ukraine are underdeveloped and need to be intensified to build sustainable development. The obtained results can be used in the development of a strategy for sustainable development of Ukraine and the implementation of its policy in economic life.

scholarly journals Innovation Activity and its Sources in Industry in the West Pomerania Province

2020 ◽  
Vol 20 (2) ◽  
pp. 168-182
Author(s):  
Jadwiga Gorączkowska
Keyword(s):  
Innovation Activity ◽  
The West ◽  
Internal Resources ◽  
Process Innovations ◽  
Innovation Activities ◽  
Product Innovations ◽  
Product And Process Innovation ◽  
Product And Process ◽  
The Impact ◽  
Logit Modeling

Abstract Research background: Innovation activities, especially the implementation of new products and processes are desirable phenomena in economic development. For this reason, phenomena that contribute to the implementation of new solutions in enterprises should be identified. These include sources of innovation activity. Purpose: The main purpose of the article is to identify those sources of innovation activity that significantly affect product and process innovation. Research methodology: The research of the impact of sources of ideas and information for innovation on the implementation of product and process innovations was conducted in 2018 for the period 2015–2017 in the West Pomerania Province. The study was representative. It was attended by 270 entrepreneurs whose business profile corresponds to section C PKD (Polish Business Classification) – manufacturing. Logit modeling was used in the study. Results: As a result of the analyses it was noticed that in the region the implementation of process innovations was significantly influenced by foreign R&D centres, suppliers (but only when entrepreneurs began to cooperate with them), as well as by conferences, fairs and exhibitions. In the case of product innovations, internal resources were included in this group. Novelty: In the analyzed region, no advanced econometric analysis of the impact of sources of innovative activity on product and process innovations that would be representative was carried out.

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