Innovating (a Lot) With a Little: High-Tech Innovation in Southeast Europe

Motivation: According to the European Innovation Scoreboard (EIS, 2020), Southeast-European countries are either modest or moderate innovators because they consistently innovate below the EU average. Given that innovation is a key driver of economic growth (Hasan & Tucci, 2010), this implies that Southeast Europe has been economically falling back while simultaneously politically integrating with the EU. However, the EIS categorizes countries according to the inconclusive arithmetic mean of indicators for firm-level innovation (bottom-up) and indicators for inputs and enablers of innovation at the national level (top-down). Besides, it does not separately assess innovation performance of high-technology industries although these are crucial for international competitiveness (Schwab, 2019). Consequently, this paper answers the following research question: What is innovation performance of high and medium-high technology industries in Southeast Europe in comparison to the EU average? Idea: In contrast to the EIS which merges top-down with bottom-up innovation indicators, the core idea of this paper has been to analyse only bottom-up data on comparative innovation performance of high and medium-high technology industries in Southeast Europe. Method and data: The paper methodologically draws on guidelines for collecting, reporting, and using data on innovation by Oslo Manual (OECD & Eurostat, 2018), and uses secondary data from 2010-2016 Community Innovation Surveys of enterprises to compile an own set of 140 data points. Innovation activity within an industry is defined as the ratio of innovative enterprises to the total population of enterprises while innovation performance is the ratio of innovation activity in the respective country to innovation activity of this industry in the whole EU. Tools: All data points have been arranged country-wise as unbalanced contingency panels and plotted to draw conclusions on innovation performance of high and medium-high technology industries in Southeast Europe. Findings: Although all top-down innovation inputs and enablers at the national level are far below the EU average throughout Southeast Europe, several industries in the region reach or surpass the average EU innovation performance: the pharmaceutical industry in Croatia, all medium-high technology industries in Turkey, manufacture of machinery in North Macedonia and Serbia, as well as manufacture of motor vehicles in all countries except for Romania. Contributions and limitations: This is the first known paper to benchmark innovation performance of high and medium-high technology industries throughout Southeast Europe. In addition, the paper reveals the shortcomings of the whole-country method employed by the EIS since it clearly points out that innovation performance of national industries should be assessed instead. Limitations of the paper are the exclusive focus on innovation as a process and partly restricted data availability.

The dynamics of industrial geographic distribution: evidence from Brazil (2002-2014)

ABSTRACT The geographical distribution of Brazilian industries changed between 2002 and 2014, and it was more significant for some industries. Based on Dumais et al. (2002), we explore the dynamics of these changes by a decomposition of the employment variation and concentration index for manufacturing industries grouped by technological intensity, and we identify the direction of the locational movements of the firms among microregions. In general., the results indicate that between 2002 and 2014, there was a trend of convergence among the microregions’ participation in industrial employment, contributing to industrial deconcentration in the country, with the exception of the group of high-technology industries, which became more concentrated. Components of the life cycle of industries, especially the growth of employment generated by new industries in non-metropolitan microregions, are identified as main propelling of this evidence. In general., the results are consistent with the importance of agglomeration economies over historic accidents to explain the industrial concentration in Brazil between 2002 and 2014.

Rethinking Unconditional Convergence in Manufacturing in the Age of New Technologies

We revisit unconditional convergence within manufacturing with a focus on differences in technology intensity across industries. For Latin American and Sub-Saharan African economies, we observe that low-technology and medium-technology intensive industries experience a significantly slower convergence in comparison to high-technology intensive ones. In contrast, we find no evidence of a significant differential for low-technology industries’ convergence in Asian economies, and if anything, we see that medium-technology intensive sectors experience a faster convergence than high-technology industries. In developed economies, we observe that while low-technology industries experience a slightly slower convergence, medium-technology industries converge at similar rates to high-technology industries. We also find that these differences emerge during the period of increased global integration, which exposed developing economies to increased competition both from advanced markets and fast industrializers within the developing world. Finally, we show that differential convergence patterns are stronger after the peak of manufacturing employment share has been reached. We discuss the implications of these trends for the future of development policy making.

Exploring redundancies in multichannel knowledge sourcing in high-technology industries

Purpose Scientific collaborations represent informal external ties that together with formal R&D alliances constitute a multichannel knowledge sourcing network in science-based industries. Although such multichannel knowledge sourcing benefits firms by providing more thorough access to external sources, it also entails potentially significant redundancies worthy of consideration. This paper aims to take a step by first verifying their existence, followed by an examination of key contingencies determining the extent of these redundancies, i.e. firm absorptive capacity, balanced utilization of ties and firm size. Design methodology approach This is an empirical study that uses scientific collaborations and R&D alliances of US pharmaceutical companies to test the proposed hypotheses. Findings This paper verifies the existence of multichannel knowledge sourcing redundancies, followed by an examination of key contingencies determining the extent of these redundancies, i.e. firm absorptive capacity, balanced utilization of ties and firm size. Originality value To the knowledge, this is a first attempt at clarifying redundancies in innovative knowledge sourcing and their implications for firm innovation performance.

New agriculture business model in Taiwan

We offer an integrative introduction, analysis, and commentary for the new agribusiness models (mainly for crop production) in Taiwan, an important economy in Asia. Taiwan’s economy has been relying heavily on agriculture-based business, even against the fact that its high-technology industries occupy major media explosion opportunities. We start with the introductory discussions of Taiwan’s agricultural backgrounds and development. Then we review and analyze the developing agribusiness models at macro and micro levels. Based on those analyses, we propose promising directions for future studies and agribusiness practices.

Technological Disruptions, GVCs, and Industrial Policy

This chapter examines the impact of technological change on global value chains (GVCs) and what initiatives and instruments governments in advanced economies can deploy to support firms and people during the transition. Drawing on an emerging debate on de-globalization, we discuss how global production is slowly shifting from being organized in GVCs to continental platforms with shorter and geographically closer relationships as firms seek to co-locate manufacturing and innovation activities. This offers regions and places the opportunity to upgrade and transform their economies and thereby to anchor high-technology industries, leveraging industrial legacy with frontier technologies. We will discuss the implications for a transformative place-based industrial policy that aims to connect embedded industries to new technologies; to repopulate embedded industries with new firms and start-ups, and to use regulation and procurement to create new markets and allow exploration.