International Journal of Technological Learning, Innovation and Development (6 papers in press)
A new approach to R&D intensity classes illustrated on manufacturing industries in South Africa
by Nazeem Mustapha, Lwando Kondlo
Abstract: This paper examines the suitability and usefulness of OECD definitions and cut-off levels for classes of R&D intensity as a classification scheme for developing countries. It does this by developing a method for determining R&D intensity classes from data mining techniques. This improves on the original methodology of Hatzichronoglou (1997) by using clustering methods to define the members and boundaries of a technology class. Previous applications of this methodology relied on arbitrary choices of cut-off levels for technology classes and considerations of stability over time. The approach demonstrated may be implemented on a global level, but is used to examine new categories of high-, medium- and low- R&D intensity at a local level, using data on South Africa. It identifies the electronics- communications sector as the only high-R&D intensity industry, and it determines that only two R&D intensity classes were evident between 2010 and 2015 in South Africa. The results suggest that there is currently no high-tech industry in South Africa, and that a strategy that seeks simply to promote the export growth of such sectors is na
Keywords: research and development; innovation management; manufacturing; developing economy; R&D intensity classes; South Africa; innovation policy; science policy; high technology; taxonomy.
Technology transfer and technological capacity: the regulator's role in the adoption of solar photovoltaic's in Brazil
by Manuella Da Silva, Gilberto De Martino Jannuzzi
Abstract: The adoption of a new technology is highly associated with human capital, support infrastructure and research and development activities. This paper aims to analyze the technology transfer, learning mechanisms and the internal technological capabilities building of power companies in the solar photovoltaics (PV) sector. The research subjects were the electric power companies and the suppliers of technological services and equipments that submit projects to the call of the Brazilian Electricity Regulatory Agency (ANEEL) for R&D Strategic Projects No. 013/2011 Technological and Commercial Arrangements for Insertion of Solar Photovoltaic Generation in Brazilian Energy Matrix. The experience with this call of projects allowed the development of technological knowledge and it is safe to say that this call for strategic projects has stimulated, in the Brazilian solar photovoltaic sector, at least the beginning of the development of an indigenous technological capacity even if Brazil was not yet in the stage of creating technologies.
Keywords: Technological knowledge; Technology transfer; Technological capacities; Learning Mechanisms; Research and Development Policy; R&D; Solar Photovoltaic Sector; Brazil.
Global innovation networks for Chinese high tech small and medium enterprises: the supportive role of highly skilled migrants and returnees
by Jingyi Lin, Monica Plechero
Abstract: Literature investigating highly skilled Chinese migrants has so far focused on their role as drivers of new entrepreneurship as well as innovation in firms and regions, although their role in supporting small and medium enterprises (SMEs) engagement in global innovation networks (GINs) is still underexplored. The participation in GINs is key for high tech SMEs, which rely on sophisticated knowledge but may not have the same absorptive capacity of large firms and multinational corporations. Based on primary data from a case study on 19 SMEs in the IT and new media industry in Beijing, this paper investigates the role of returnees and highly skilled migrants in supporting the engagement of Chinese high-tech SMEs in GINs. The results reveal the important role of those individuals in bringing SMEs in former international knowledge networks and establishing new linkages for sourcing key knowledge.
Keywords: global innovation networks; GIN; knowledge sourcing; small and medium enterprises; SMEs; Beijing; China; highly skilled migrants; returnees; IT and new media industry.
R&D Subsidies and R&D Expenditure in China: Do Financing Constraints Play Intervening Roles?
by Caijiang Zhang, Lu Chen
Abstract: In response to the state of R&D and financing in China, we conducted an empirical study using unbalanced panel data of Chinese listed Growth Enterprises Market (GEM) companies from 2010 to 2017, in order to investigate how R&D subsidies affect R&D expenditure. We find that R&D subsidies can crowd in R&D expenditure, and that financing constraints play intervening roles in the relationship between R&D subsidies and R&D expenditure. The study further implies that R&D subsidies can better ease financing constraints and better crowd in the R&D expenditure of enterprises located in innovative cities. We also find that, in China, there is room for enhancing the easing effect of R&D subsidies on financing constraints. In line with our estimation results, we suggest that the Chinese government provide more R&D subsidies, adjust its R&D subsidy strategy, develop science and technology banks, improve the countrys capital market, and enact more preferential policies for R&D in order to better ease financing constraints and further improve R&D expenditure.
Keywords: R&D subsidies; R&D expenditure; financing constraints; intervening effect.
Validating the Dynamic Relationship between Technological Innovation and Economic Growth in Malaysia
by Hussain Ali Bekhet
Abstract: Technological innovation is a dynamic growth factor to achieve sustainable development. This study aims to explore the long- and short-run relationship between technological innovation and Malaysias sustainable growth from 1980 to 2015. Augmented Cobb-Douglas production function is used to scale the technological innovation and economic growth link. The F-bounds test and VECM Granger causality are employed. The dynamic relationships among the gross domestic product, capital, employment, electricity consumption, technological innovation, technological innovation squared and governance institution quality variables; and the nonlinear relationship between technological innovation and economic growth are studied. The study confirms the existence of long-run relationship among the variables and the link between technological innovation and economic growth has an inverted U-shape. Also, technological innovation, technological innovation squared, and governance institution quality Granger-cause economic growth in the long and short run, together with capital, employment and electricity consumption. Therefore, continuous plans and policies are very much needed to drive technological innovation evolution in Malaysia, so the tide is slowly turning.
Keywords: technological innovation; governance institution quality; elasticity; Granger causality; sustainable growth; Malaysia.
EXPLORING DRIVING FACTORS AND CHALLENGES OF INNOVATION IN SERVICE FIRMS: EVIDENCE FROM KOSOVO
by Lura Rexhepi Mahmutaj, Berim Ramosaj, Besnik Krasniqi
Abstract: Today, successful implementation of innovation within Small and Medium-sized enterprises (SMEs) has been a subject of great interest among authors. The purpose of this study is to explore the driving factors and challenges of innovation in the context of SMEs in the service sector. This study follows qualitative research with twenty-one SMEs in Kosovo from the service sector. Using NVivo software, our findings suggest that the main drivers of innovation are innovation budget, employees skills, top management support and dealing with employees resistance to change. On the other hand, the main challenges, which may impede SMEs to innovate comprise of cost-related factors, market conditions, as well as lack of skilled human resources. The results imply that human skills and technology acquisition, as well as government policies are important contextual factors to improve SMEs innovation performance.
Keywords: SMEs; innovation; service industry; Kosovo; qualitative study.