Industry Innovations: Development versus Adaptation

2009 ◽  
pp. 125-141 ◽  
Author(s):  
K. Gonchar

The paper addresses the problem of the technological standard and innovations in Russian manufacturing companies. It is based on the most recent firm level data. The analysis shows that the industry is seriously segmented in this respect. Empirical analysis proves that the technological standard and innovations are closely linked to productivity growth and competitive stand of enterprises. In turn they depend on company size, quality of management, finances of the firm. The innovation activity is higher than expected, though only a minor portion of firms targets international market, few innovate nation-wide. We discuss that opposing technological upgrade to product innovation and adapted products to originally designed ones is misleading. In real business these processes are interrelated, happen consistently, almost always require in house development. In the end some policy advice based on the results of the study are provided.

2017 ◽  
Vol 18 (1) ◽  
pp. 64-75 ◽  
Author(s):  
Ben Shepherd

This article uses firm-level data for India to examine the determinants of innovation activity, focusing on variables related to economic openness. Firms that export and those that import are found to be significantly more likely to engage in innovation, defined sequentially as the introduction of new products, new processes, new systems, or devotion of financial resources or time to research and development. Concretely, exporters are 22 per cent more likely to introduce a new product than non-exporters, while the corresponding figure is 66 per cent for importers. Openness to trade is, therefore, a key determinant of firm-level innovation, which is a key component of economic growth.


2018 ◽  
Vol 10 (1) ◽  
pp. 236-277 ◽  
Author(s):  
Lisandra Flach ◽  
Michael Irlacher

We investigate the effects of better access to foreign markets on innovation strategies of multiproduct firms in industries with different scope for product differentiation. Industry-specific demand and cost linkages induce a distinction between the returns to innovation. In differentiated industries, cannibalization is lower and firms invest more in product innovation. In homogeneous industries, firms internalize intra-firm spillovers and invest more in process innovation. Using firm-level data and large exchange rate devaluations, we show that better access to foreign markets increases the incentive to innovate. However, we exploit differential effects across industries and show that the innovation strategies depend on the scope of differentiation. (JEL D22, D25, F14, G31, L60, O14, O31)


2012 ◽  
Vol 17 (Special Edition) ◽  
pp. 103-134 ◽  
Author(s):  
Rashid Amjad ◽  
Ejaz Ghani ◽  
Musleh ud Din Musleh ud Din ◽  
Tariq Mahmood

This study attempts to evaluate exporters’ perceptions of the problems they face in exploiting their full competitive potential in the international market. Using firm-level survey data, we find that a shortage of skilled labor, the energy crisis, institutional rigidities, market imperfections, and weaknesses in physical infrastructure are the key impediments to achieving export competitiveness. Policies geared toward improving the quality of skilled labor, resolving the energy crisis, and reducing transaction costs by improving the institutional and physical infrastructure are key to expanding Pakistan’s exports on a sustained basis.


2021 ◽  
Vol 5 (3) ◽  
pp. 108-116
Author(s):  
Ruzanna Tadevosyan

The paper discusses scientific arguments and counterarguments about companies’ innovative activity, size, and geographic location of the sales market. The study’s foremost purpose is to empirically check if theoretical statements about a company’s size, export, and innovative activity are associated. Therefore, the questions discussed in this paper are a) Does an enterprise-size matter an enterprise innovation activity? b) Is there is a difference in innovation activity by Classification of Economic Activities (NACE groups)? c) Does the geographic location of the sales market matter the company's innovation activity? The research questions are discussed based on Armenian firm-level data. The findings could be applied mainly to the microeconomic environment of Armenia. The study involved R programming language Wilcoxon test, ANOVA, Tukey test, and Chi-square test are applied. The obtained results showed that the enterprise’s size does not matter an enterprise’s innovative activity. Even though larger companies have more resources to innovate, smaller companies are more flexible and agile. Therefore, the enterprise size is not a limiting factor. The results showed that the companies in some fields of the economy are more prone to innovate than others. In Armenia, most innovative enterprises operate in the group M-Professional, scientific and technical activities and the group C-Manufacturing. The research empirically confirms that when considering a company’s innovative activity, the sphere of the economy in which it operates has statistically significant importance in contrast with the company’s size. The findings by the Chi-Square test showed that a significantly higher number of EU exporting companies had made innovations. In contrast, companies selling their products/services in the local market have made significantly fewer innovations than expected if there would be no association between innovations and the geographic location of the sales market. Therefore, the exporting companies are more innovative than those that sell their products in the local market. Besides, the most innovative firms are EU exporting enterprises. In empiric studies, export is used as a proxy of international competitiveness due to its ability to show a country’s capacity in producing and selling in the international market. Therefore, the analysis of Armenian firm-level data showed the association between innovation and international competitiveness.


Author(s):  
Fatma Nur Karaman Kabadurmus ◽  
Sajal Lahiri

This chapter examines empirically the determinants of research and development (R&D) activities by Turkish firms. It focuses on the question of how competition affects product innovation, and not process innovation, in Turkey. In particular, we test if there is a non-linear relationship between R&D activities of a firm and the degree of competition in that industry. We use Turkish firm-level data from the Business Environment and Enterprise Performance Survey (BEEPS) and find strong support for an inverted-U relationship between the two variables.


2016 ◽  
Vol 04 (03) ◽  
pp. 1650023
Author(s):  
Yuhong LI

Peri-urbanized rural areas are villages in which the non-agricultural population and industries are concentrated to a certain extent but rural administration is still practiced. It is an important factor affecting the quality of China's urbanization. On the basis of clarifying the characteristics and formation mechanism of peri-urbanized areas, the paper develops a method of identifying the peri-urbanized rural areas in China that is, the number of industrial employees in the village is not less than 900 and the grass-roots organization is the village committee. It makes an estimation of the peri-urbanization rate with the firm-level data of the first and second National Economic Censuses, and finds that the distribution of industrial employment at village level in China is “scattered” and “fat tailed”. While most of the industrial enterprises in rural areas are scattered, peri-urbanized rural areas centralize more than half of the industrial employees; China's peri-urbanization level is relatively high with a growing and deepening tendency, and it is closely related to the economic development.


2014 ◽  
Vol 11 (06) ◽  
pp. 1450046 ◽  
Author(s):  
Olfa Kammoun ◽  
Mohieddine Rahmouni

This paper documents the relationship between appropriation instruments and the innovation activity in Tunisia. It focuses on the factors that determine the appropriation of innovation activities like the value of sales of the firms, networking, science–industry linkage, competitive pressure and demand pull. To this end, we suggest an econometric analysis of 586 Tunisian firms using simple and bivariate logit regressions. We find significant interaction effects between appropriability and R&D activity. The results confirm that patenting is primarily driven by firm-level factors, not by industry affiliation. Access to external knowledge and firm's specific characteristics are the most linked factors to the innovation protection. Firms that use appropriation instruments have a higher probability of investing in R&D than others. Indeed, the capacity to integrate external knowledge and performing R&D (networking, science–industry linkage, cooperation with other firms, belonging to a group) is related to the use of appropriation instruments. We find that appropriation instruments have a significant effect on product innovation. The effect on process innovation is not significant for Tunisian firms.


2017 ◽  
Vol 5 ◽  
pp. 307-313
Author(s):  
Oleg Mariev ◽  
Andrey Pushkarev

Innovations are essential for international competitiveness. In this research study, we analyze factors that affect the involvement of Russian firms in the innovation process. Our objective is to find out which factors on a regional level are the most important for innovative activity, that would allow for improving the innovation policy. We overview the main groups of factors that were considered to be significantly affecting innovations. We then proceed to analyze the regional-level data, and classify the Russian regions into three groups based on set of their characteristics. Our results suggest that currently the most important external determinants of innovation propensity for the Russian regions are the share of organizations that carried out scientific research, FDI, appropriate infrastructure and the quality of human capital. It implies that the innovation policy should focus mainly on these indicators. We also found substantial differences between regional groups, both in significance of the considered indicators and in their power. Based on the results, we propose several policy recommendations that would facilitate innovation activities of the Russian regions


Author(s):  
Sandra Lechner ◽  
Winfried Pohlmeier

SummaryData collecting institutions use a large range of masking procedures in order to protect data against disclosure. Generally, a masking procedure can be regarded as a kind of data filter that transforms the true data generating process. Such a transformation severely affects the quality of the data and limits its use for empirical research. A popular masking procedure is noise addition, which leads to inconsistent estimates if the additional measurement errors are ignored.This paper investigates to what extent appropriate econometric techniques can obtain consistent estimates of the true data generating process for parametric and nonparametric models when data is masked by noise addition. We show how the reduction of the data quality can be minimized using the local polynomial Simulation-Extrapolation (SIMEX) estimator. Evidence is provided by a Monte-Carlo study and by an application to firm-level data, where we analyze the impact of innovative activity on employment.


2021 ◽  
pp. 1-30
Author(s):  
Ama Baafra Abeberese ◽  
Prabhat Barnwal ◽  
Ritam Chaurey ◽  
Priya Mukherjee

Abstract While recent work suggests democracy does cause growth, the channels through which this effect occurs remain unclear. Exploiting quasi-random variation in the timing of district-level political regime changes induced by the collapse of President Soeharto's government, we study the micro-level drivers of the democracy-growth relationship. Using Indonesian firm-level data, we find that democratization leads to an increase in firm productivity, a critical determinant of economic growth. Further, we find evidence of an improvement in the quality of local business regulations and the business environment for firms.


Sign in / Sign up

Export Citation Format

Share Document