International Journal of Technological Learning, Innovation and Development (5 papers in press)
Value Stream Mapping in Indonesias Shoe Industry: An Alternative Tool to Map Innovation Ecosystem
by ULLY YUNITA NAFIZAH P, ADHYA RARE TIARA
Abstract: It is believed that open innovation implementation could help SMEs to compete in the global market, especially by exploring the external sourcing strategies. To do so, the mapping of innovation ecosystem is needed as the precursor to any open innovation initiatives. Previous studies show that there is a similarity between the innovation process and the value chain, in terms of their definition. The basis of this idea is that both the value chain and the innovation process use resources to deliver products to the customer, by adding value to the existing products or processes. Interestingly, there have only been a few studies that try to explore the relationship between the innovation process and the value chain. This paper attempts to map an innovation ecosystem using the value chain analysis approach. This paper, particularly, explores the use of Value Stream Mapping (VSM) as an alternative tool to comprehend the innovation ecosystem. Furthermore, this study also focuses on understanding the innovation ecosystem in the form of an industry cluster as a group of relevant businesses, mostly consisting of SMEs, that develop a persistent relationship over a period of time. Specifically, the paper tries to understand the nature of the innovation ecosystem of Cibaduyut shoe industry, which is an Indonesian industry cluster, by performing Value Stream Mapping (VSM). The VSM process produces a Current State Map (CSM) of the existing value chain, which consists of the relevant actors, the relevant flows, and the existing problems. This knowledge, further, will be used for strategizing individual open innovation initiatives and for fostering open innovation implementation through various policies.
Keywords: Industry Cluster; Innovation Ecosystem; Value Chain Analysis; Value Stream Mapping (VSM); Cibaduyut Shoe Industry.
Ownership effects on R&D spending in India: Does external borrowing matter?
by Ritika Jain
Abstract: State owned enterprises (SOEs) act as economic units when they operate in industries alongside private firms. These enterprises have social objectives since they are owned by the government and economic objectives since they operate in industries. Research and development (R&D) is one of the strategies available to SOEs which is a public good. Thus, against the multidimensional redistributive objective function of the government, R&D acts as a bridge between social and economic objectives of SOEs. The current study focuses on this particular feature for Indian public and private firms. Specifically, R&D expenditure by public sector enterprises and private sector enterprises listed on the National Stock Exchange is compared for 2015. The study employs propensity score matching and regression methods and finds that listed public sector enterprises spend more than the listed private sector enterprises in India. The study also suggests that external borrowing acts as a stronger tool to increase R&D spending for private firms more than the state owned ones.
Keywords: innovation; public ownership; propensity score matching; external borrowing; research and development; state owned enterprises; India; NSE.
Structural Change in the International Patenting Level: The TRIPs Agreements Role
by Vicente German-Soto, Joana Chapa Cantu
Abstract: The time series methodology with structural change is implemented to analyse the presence of breaks in the patenting level of both residents and non-residents for a large set of countries and world regions from 1963 to 2011. The international agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs), underwritten in 1994, seeks to reinforce the protection of intellectual property rights and so stimulate the patenting activity, mainly in developing countries. From the estimated breakpoints, we find that the TRIPs convention has effectively prompted innovation in both developed and developing countries. Several economies and some world regions report a positive level shift in patenting after the TRIPs agreement, suggesting that the international transfer of technology is increasing. Residents series for North America and European Union members estimate breakpoints by 1994 and 1997, while non-residents series of the European Union and South Asia select 1994 and 2003, respectively.
Keywords: patents; TRIPs; structural change; time series; property rights.
Internal drivers of competitiveness for micro and small software development companies in south-eastern Mexico
by Francisco Cima, Pilar Pazos-Lago, Ana Maria Canto
Abstract: Developing countries are challenged to achieve continuous growth and to enhance innovation in a context characterized by limited resources and scant technological infrastructure. The software industry has been identified as a key driver of overall sustained business growth, competitiveness, and innovation. This study is aimed at developing a predictive model of performance for software development companies in Mexico by identifying the internal factors that lead to increased competitiveness. Organizational competitiveness is examined using indicators of permanence, growth, and profitability from the perspective of top managers in the industry. The internal factors explored as predictors of competitiveness include quality assessment, technological infrastructure, innovation practices, human resource practices and marketing practices. A cross-sectional survey-based study was used to investigate the software industry in Mexico, and the data collected was analysed using multiple linear regression. The evidence provided by the results indicates that quality assessment and innovation practices are significant predictors of competitiveness for software development companies. This paper has important implications to the software industry, as the findings contribute to increasing knowledge about the key factors that influence the performance of the software companies in the south-eastern of Mexico and in developing countries, where the software industry is considered a critical promoter of overall economic development.
Keywords: software development companies; competitiveness; internal factors; micro and small enterprises; developing economies.
Standards, Regulation and Sustainable Development in a Global Value Chain Driven World
by Raphael Kaplinsky, Mike Morris
Abstract: Regulations and standards have become an increasingly important factor affecting the capacity of producers to participate in global markets. Directly and indirectly, they not only determine the terms of market-entry but also affect the extent to which different producers are able to position themselves in global value chains in a manner which provides for socially and environmentally sustainable income growth. Standards compliance can enhance producer capabilities and assist in meeting many of the SDG objectives. But it may also involve trade-offs between different SDG goals. Standards compliance is simultaneously inclusive (facilitating the participation of low and middle income countries producers in global production and spreading incomes more widely globally) and exclusive (barring small producers from market access and displacing unskilled labour from supply chains). What policy measures will best lead to the most positive outcomes as standards diffuse through global value chains?
Keywords: Global Value Chains; Regulations; tandards; SDGs; Upgrading.