Exporting and innovation performance: analysis of the Annual Small Business Survey in the UK

This paper analyses the determinants of the export propensity of UK small and medium-sized enterprises (SMEs) based on the 2004 Annual Small Business Survey. Particular emphasis is placed upon the relationship between innovation activities (distinguishing product from process innovation) and export performance. In general the data suggest that some 17 per cent of firms within this group sell outside the UK. Businesses that export are also characterized by high levels of innovation activity (43 per cent of exporters innovate in products, 27 per cent innovate in process and 21 per cent innovate in both). When considering product and process innovation independently we find that both impact positively on the decision to export. However, once we consider the interdependence between both innovation activities, we find no robust evidence that process innovation increases the probability to export beyond product innovation.

Identifying innovation strategies: insights from the Greek food manufacturing sector

This paper examines the concept of innovation that is widely recognised as very important for all companies across different business sectors. The paper initially provides a review of the innovation literature in terms of types, classifications and sources of innovation that have been proposed over time. Then, the paper examines innovation in the context of the food industry, and in particular, it attempts to identify innovation strategies followed by Greek food manufacturing companies based on a specific model. Evidence from the Greek food manufacturing sector indicates that companies tend to innovate along the dimension of offerings that is more related to the traditional view of innovation (product and process innovation).

Strategic innovation networks

This thesis draws on two key areas of the innovation literature, the strategic management of technology (SMOT) and innovation networks. The aim is to integrate these two areas of the management of innovation literature to develop a framework which I describe as the Strategic Innovation Network (SIN). The key proposition that the revised framework (SIN) aims to address is based on the work of Chandler (1962). Chandler's (1962) conclusion that 'structure follows strategy' is examined in relation to the interaction between corporate/technology strategy and network structure. The SIN is intended to address weaknesses in both the SMOT and network literature. The research data is based on five detailed longitudinal case studies. The organisations are defined as mid-corporate firms operating in traditional manufacturing sectors. Each organisation was chosen on the basis that it was aiming to develop its innovative capacity through product or process innovation projects. The research was carried out over an 18 month period with interviews being held regularly to develop the longitudinal aspect of the study analysis. The data for each individual case study is examined using the SIN framework. The longitudinal approach addresses the objective to provide a dynamic model of the innovation processes by mapping the changes in network structure during the course of individual projects. The network structural changes are examined in relation to each organisation's strategy and five key dynamic network stages are identified in relation to the innovation process. These network stages show the influence strategy has on the structures adopted by the five case studies.

The innovation value chain in new technology-based firms:evidence from the U.K.

Innovation is central to the survival and growth of firms, and ultimately to the health of the economies of which they are part. A clear understanding both of the processes by which firms perform innovation and the benefits which flow from innovation in terms of productivity and growth is therefore essential. This paper demonstrates the use of a conceptual framework and modeling tool, the innovation value chain (IVC), and shows how the IVC approach helps to highlight strengths and weaknesses in the innovation performance of a key group of firms-new technology-based firms. The value of the IVC is demonstrated in showing the key interrelationships in the whole process of innovation from sourcing knowledge through product and process innovation to performance in terms of the growth and productivity outcomes of different types of innovation. The use of the IVC highlights key complementarities, such as that between internal R&D, external R&D, and other external sources of knowledge. Other important relationships are also highlighted. Skill resources matter throughout the IVC, being positively associated with external knowledge linkages and innovation success, and also having a direct influence on growth independent of the effect on innovation. A key benefit of the IVC approach is therefore its ability to highlight the roles of different factors at various stages of the knowledge-innovation-performance nexus, and to show their indirect as well as direct impact. This in turn permits both managerial and policy implications to be drawn. © 2012 Product Development & Management Association.

The innovation value chain and export performance:a study of Taiwanese manufacturing industries

This thesis involves the secondary data of 1806 innovative manufacturing firms derived from the database of 2nd Taiwanese Innovation Survey. Three topics are researched. The first topic investigates the innovation value chain (IVC) in Taiwanese manufacturing firms. Previous IVC studies are all done in developed countries such as UK, Ireland, Northern Ireland and Switzerland, and it leaves the gap of those non-developed countries. The result shows the overall knowledge sourcing pattern of Taiwanese manufacturing firms presenting a complementary relationship which is consistent to the previous IVC studies. The main innovation input is still derived from internal R&D which suggests more utilisation of external knowledge may boost innovation outcome. Product innovation does enhance firm growth while process innovation reduces a firm’s productivity. The second topic uses the lens of IVC to investigate the difference of the innovation process from knowledge linkages to value added between high-tech and low- tech sectors. The findings indicate (1) there are significant differences in the IVC between high- and low-tech sectors, however these are defined; (2) how you define ‘sector’ matters i.e. the nature of the high-tech and low-tech differences varies depending on whether the technology definition is carried out at the industry or firm level; and (3) the high uncertainty of innovation cause the difficulty to predict firm performance especially for those firms with high intensity of innovation. The third topic investigates the innovation-exporting relationship and explores the determinants of export performance. Product innovation enhances export performance once a firm enters international markets while process innovation affects negatively on a firm’s likelihood of being an exporter. Furthermore, IP protection is found to affect directly export performance positively.

Identifying innovation strategies:insights from the greek food industry

This paper emphasizes on the concept of innovation which is more and more nowadays recognized as of significant importance for all companies across different business sectors. The paper initially provides a review of the innovation literature in terms of types, classifications, and sources of innovation that have been proposed over time. Then, innovation in the context of the food industry is examined and it is attempted to identify innovation strategies followed by Greek food companies based on a value driven approach of innovation. The paper finally, provides insights from eight Greek food companies, which were selected from four subsectors: fruit and vegetables, dairy products, meat products (cured meats), and bakery products. The criterion used for the selection was market success and outstanding performance (e.g. market share, achieved results). Evidence indicates that companies tend to innovate along the dimension of offerings, which is more related to the traditional view of product and process innovation.

Strategic innovation through outsourcing:the role of relational and contractual governance

There is growing evidence that client firms expect outsourcing suppliers to transform their business. Indeed, most outsourcing suppliers have delivered IT operational and business process innovation to client firms; however, achieving strategic innovation through outsourcing has been perceived to be far more challenging. Building on the growing interest in the IS outsourcing literature, this paper seeks to advance our understanding of the role that relational and contractual governance plays in achieving strategic innovation through outsourcing. We hypothesized and tested empirically the relationship between the quality of client-supplier relationships and the likelihood of achieving strategic innovation, and the interaction effect of different contract types, such as fixed-price, time and materials, partnership and their combinations. Results from a pan-European survey of 248 large firms suggest that high-quality relationships between clients and suppliers may indeed help achieve strategic innovation through outsourcing. However, within the spectrum of various outsourcing contracts, only the partnership contract, when included in the client contract portfolio alongside either fixed-price, time and materials or their combination, presents a significant positive effect on relational governance and is likely to strengthen the positive effect of the quality of client-supplier relationships on strategic innovation.

Firm-level productivity growth in Northern Ireland:the impact of exporting, innovation and public financial assistance

Motivated by the historically poor productivity performance of Northern Ireland firms and the longstanding productivity gap with the UK, the aim of this thesis is to examine, through the use of firm-level data, how exporting, innovation and public financial assistance impact on firm productivity growth. These particular activities are investigated due to the continued policy focus on their link to productivity growth and the theoretical claims of a direct positive relationship. In order to undertake these analyses a newly constructed dataset is used which links together cross-sectional and longitudinal data over the 1998-2008 period from the Annual Business Survey, the Manufacturing Sales and Export Survey; the Community Innovation Survey and Invest NI Selective Financial Assistance (SFA) payment data. Econometric methodologies are employed to estimate each of the relationships with regards to productivity growth, making use in particular of Heckman selection techniques and propensity score matching to take account of critical issues of endogeneity and selection bias. The results show that more productive firms self-select into exporting but there is no resulting productivity effect from starting to export; contesting the argument for learning-by-exporting. Product innovation is also found to have no impact on productivity growth over a four year period but there is evidence of a negative process innovation impact, likely to reflect temporary learning effects. Finally SFA assistance, including the amount of the payment, is found to have no short term impact on productivity growth suggesting substantial deadweight effects and/or targeting of inefficient firms. The results provide partial evidence as to why Northern Ireland has failed to narrow the productivity gap with the rest of the UK. The analyses further highlight the need for access to comprehensive firm-level data for research purposes, not least to underpin robust evidence-based policymaking.

Benefits from competition:some illustrative UK cases

This study provides a powerful demonstration of the real world impact of increasedcompetition. By presenting six market case studies drawn from a variety of sectors itgives evidence of the type and magnitude of the benefits following marketinterventions to develop competition and free up the operation of these sectors. In discussing the types and form such interventions take, whether competition policy,deregulation or liberalisation, this report explores market conditions before and afterintervention, paying careful attention to both the envisaged benefits and the potentialfor negative side effects. Overall, the evidence suggests these benefits materialised,and in a number of instances proved more sizeable than anticipated. Concerns aboutharmful side effects have proved unfounded, with market stimuli impacting not only onthe price and range of goods available but also acting as a motivating force to productand process innovation. As Professor Davies points out, although active competition policy proves an importantcomponent in the competitive process, it is not sufficient in its own right. In order todeliver greater productivity, of which competition is a key driver, the UK needs a pool of resourceful entrepreneurs able to exploit changing market conditions. In order togive these people the best chance of success the framework conditions need to becorrect with strength in the complementary capabilities of innovation, investment, skillsand enterprise. Ensuring the competition framework is world class is central to the DTI’s strategy. The most recent peer review of the UK competition regime demonstrates that the UK isa strong performer, ranked third in the 2004 study, with the US first and Germanysecond. This study provides further evidence of the important role played by thatframework in delivering tangible benefits to consumers.

Patterns of networking in the innovation process:a comparative study of the UK, Germany and Ireland

The research reported in this paper arose from collaboration with Brian Ashcroft (Fraser of Allander Institute, University of Strathclyde) and Stephen Roper (Northern Ireland Economic Research Centre, Queen's University of Belfast). The author is, however, solely responsible for the views expressed. The following sections are included: -Introduction -An Economics Perspective on Innovation Networks -The Product Development Survey -Discussion: Innovation, Networks and Institutions -Conclusions -References Read More: http://www.worldscientific.com/doi/abs/10.1142/9781848161481_0005

Outsourcing in the innovation process: locational and strategic determinants

There is now substantial evidence that locational and agglomeration influences can have a significant positive effect on innovation performance. Networking and boundary-spanning activities are also increasingly recognised as important contributors to innovation success. In this article we attempt to discover whether these factors are associated: in particular, is there any link between plant location, agglomeration effects and the extent of outsourcing in the innovation process? Using data for a large sample of UK and German manufacturing plants, we find that organisational and strategic factors play a much greater and more consistent role than locational influences in shaping the level of outsourcing in the innovation process. Strategic approaches to outsourcing may also benefit plants in obtaining economies of scope in the management or governance of outsourcing within the innovation process.

Implicating trust in the innovation process

In this paper, we describe the development of two new measures of innovation trust, ‘trust that heard’ and ‘trust that benefit’. We report the findings from their use in a survey of design engineers in two large aerospace companies. We test a range of hypotheses covering different plausible roles for trust and confirm a ‘main effects’ model, whereby the variables predict the number of ideas suggested and the number of ideas implemented. In addition, we replicate earlier findings by Axtel et al. (2000), namely that personal and job variables predict idea suggestion, whereas organizational variables predict implementation.

Organizing the innovation process:complementarities in innovation networking

This paper contributes to the developing literature on complementarities in organizational design. We test for the existence of complementarities in the use of external networking between stages of the innovation process in a sample of UK and German manufacturing plants. Our evidence suggests some differences between the UK and Germany in terms of the optimal combination of innovation activities in which to implement external networking. Broadly, there is more evidence of complementarities in the case of Germany, with the exception of the product engineering stage. By contrast, the UK exhibits generally strong evidence of substitutability in external networking in different stages, except between the identification of new products and product design and development stages. These findings suggest that previous studies indicating strong complementarity between internal and external knowledge sources have provided only part of the picture of the strategic dilemmas facing firms.

Organising the innovation process:complementarities in innovation networking

This paper contributes to the developing literature on complementarities in organisational design. We test for the existence of complementarities in the use of external networking between phases of the innovation process in a sample of UK and German manufacturing plants. Our evidence suggests some differences between the UK and Germany in terms of the optimal combination of innovation activities in which to implement external networking. Broadly, there is more evidence of complementarities in the case of Germany, with the exception of the product engineering phase. By contrast, the UK exhibits generally strong evidence of substitutability in external networking in different phases, except between the identification of new products and product design and development phases.