Bankrupt Innovative Firms

We study how innovative firms manage their innovation portfolios after filing for Chapter 11 reorganization using three decades of data. We find that they sell off core (i.e., technologically critical and valuable), rather than peripheral, patents in bankruptcy. The selling pattern is driven almost entirely by firms with greater use of secured debt, and the mechanism is secured creditors exercising their control rights on collateralized patents. Creditor-driven patent sales in bankruptcy have implications for technology diffusion—the sold patents diffuse more slowly under new ownership and are more likely to be purchased by patent trolls. This paper was accepted by Gustavo Manso, finance.

A discriminant analysis of high and low-innovative firms: the role of IT, human resources, innovation strategy, intellectual capital and environmental dynamism

Purpose This paper aims to examine the effect of technological, organizational and environmental factors on the level of innovation outcomes in manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach Drawing on the technology-organization-environment theory this paper conducts a discriminant analysis of firms’ innovation level based on a data set of manufacturing SMEs. Findings The results show that low- and high-innovative firms can be distinguished in terms of information technology (IT) knowledge and infrastructure, commitment-based human resources (HR) selection practices, exploitative innovation and organizational capital. Practical implications The study findings support the idea that innovation is a complex phenomenon explained by multiple factors. As a consequence, firms need to devote extra efforts to develop IT knowledge and infrastructure, commitment-based HR selection practices and organizational capital because these are crucial for obtaining greater innovation outcomes. In addition, the identification of exploitative innovation as a strong discriminant variable highlights that the most effective way to be a highly innovative SME is through incremental innovation, which permits the firm to capitalize as much as possible on previous exploratory efforts. Originality/value Although many studies have highlighted that innovation is more challenging for SMEs than for their larger counterparts, the vast majority of studies has been conducted in large companies. This paper extends prior literature by analyzing the discriminant variables that may distinguish between low- and high-innovative manufacturing SMEs.

Perceptions of barriers to innovate in Colombian manufacturing firms: an analysis by technological intensity

Purpose The purpose of this study is to investigate the factors that impede innovation in Colombian manufacturing firms, as measured by the level of technological intensity. Design/methodology/approach The authors used data from 1,850 firms to determine the barriers associated with information and internal capabilities, risks and environment. Findings The main results of this study confirm that potentially innovative firms of low technological intensity are more likely to ascribe high importance to obstacles associated with information and internal capabilities, when compared with innovative firms. The abandonment of innovative projects, family-operated enterprises and investment in R&D are all related to an increased perception of obstacles to innovation, while investments in information and communication technologies have an opposite effect. Variables as partnerships and export behaviour, have different effects depending on the level of technological intensity. Originality/value This study investigates the obstacles to innovation of a firm as determined by its characteristics and as measured against its level of technological intensity. Previous studies have investigated barriers to innovation in technologically advanced sectors (Lachman and López, 2019) and technology-based SMEs (De Moraes Silva et al. 2020) or how the technological intensity of the firm determines access to university knowledge for overcoming barriers (Kanama and Nishikawa, 2017). The only study to analyse barriers to innovation by measuring a firm’s technological intensity was conducted into Mexican manufacturing and services sector companies by Santiago et al. (2017).

Productivity and innovation in the Japanese construction industry

Purpose The purpose of this study is to identify the essential elements required for innovation in the construction industry. To this end, the authors assessed the innovation at three levels: the firm growth account level, the firm behaviour level and the level of the firm’s experts. The factors influencing innovation at each level were identified and synthesised into guiding strategies for innovation. Design/methodology/approach Three methods were combined to develop a mode of thinking for innovation. First, at the semi-macro level, the authors identified the factors that influence the total factor productivity (TFP) by regressing the TFP across firms of the construction industry on a variety of extrinsic factors. Second, at the firm level, the authors extracted actual innovative firms from a large amount of public procurement individual data. The authors analysed the behaviours of these innovative firms. Third, the authors conducted a survey of expert-level personnel. In addition, a text analysis was performed to determine what was perceived by experts as a factor that leads to innovation. Findings The authors analysed the TFP, the behaviour of innovative firms and the perception issues between industry experts and stakeholders regarding innovation. As a result, two factors were identified. The first factor was the expectation of a positive solution to the problem through monopoly profits, future benefits and increased efficiency. The second factor was peer pressure from other organisations of a similar nature, peer pressure from users and technical information, as well as competitive conditions, e.g. recent environmental growth, including relevant innovations. Practical implications In the context of innovation, static and dynamic thinking were important requirements. Static concepts were based on the accumulation of knowledge, such as patents and technological progress. Dynamic thinking involved a future outlook, including a competitive environment as a necessary condition. Actual technological innovation was driven by incentives and expectations. Social implications According to the results of this study, the authors make the following recommendations for enhancing the construction-industry innovation in Japan: do not rely on a patent policy to drive innovation, create an environment that encourages competition and develop an ongoing initiative that encourages and rewards innovation. Originality/value This study was novel, in that the nature of innovation was investigated at three levels: the TFP, firm behaviour and expert perceptions. The identification and extraction of the two resulting points – statically necessary and dynamically necessary elements – was a significant contribution of the study.