On Innovative Search: the use of internal and external sources of innovation among Finnish innovators

This dissertation explores the use of internal and external sources of knowledge in modern innovation processes. It builds on a framework that combines theories such as a behavioural theory of the firm, the evolutionary theory of economic change, and modern approaches to strategic management. It follows the recent increase in innovation research focusing on the firm-level examination of innovative activities instead of traditional industry-level determinants. The innovation process is seen as a problem- and slack- driven search process, which can take several directions in terms of organizational boundaries in the pursuit of new knowledge and other resources. It thus draws on recent models of technological change, according to which firms nowadays should build their innovative activities on both internal and external sources of innovation rather than relying solely on internal resources. Four different research questions are addressed, all of which are empirically investigated via a rich dataset covering Finnish innovators collected by Statistics Finland. Firstly, the study examines how the nature of problems shapes the direction of any search for new knowledge. In general it demonstrates that the nature of the problem does affect the direction of the search, although under resource constraints firms tend to use external rather than internal sources of knowledge. At the same time, it shows that those firms that are constrained in terms of finance seem to search both internally and externally. Secondly, the dissertation investigates the relationships between different kinds of internal and external sources of knowledge in an attempt to find out where firms should direct their search in order to exploit the potential of a distributed innovation process. The concept of complementarities is applied in this context. The third research question concerns how the use of external knowledge sources – openness to external knowledge – influences the financial performance of firms. Given the many advantages of openness presented in the current literature, the focus is on how it shapes profitability. The results reveal a curvilinear relationship between profitability and openness (taking an inverted U-shape), the implication being that it pays to be open up to a certain point, but being too open to external sources may be detrimental to financial performance. Finally, the dissertation addresses some challenges in CISbased innovation research that have received relatively little attention in prior studies. The general aim is to underline the fact that comprehensive understanding of the complex process of technological change requires the constant development of methodological approaches (in terms of data and measures, for example). All the empirical analyses included in the dissertation are based on the Finnish CIS (Finnish Innovation Survey 1998-2000).

DEVELOPING SOCIAL CAPITAL WITHIN COMPANIES THROUGH ENTERPRISE 2.0

Whereas external social media has been studied, hyped and integrated into companies´ strategies, an insignificant concentration has been put on internal social solutions, which companies provide increasingly to their personnel. An enterprise focusing solely on the benefits of external social media might end up underestimating the true potential embedded in social business. The purpose of this thesis was to examine how social collaboration can be depicted as a structuration process in an Enterprise 2.0 environment. Furthermore, this thesis sought to reveal the benefits, challenges and possibilities of social business. This thesis focused on researching Enterprise 2.0 at the workplace. The studied Enterprise 2.0 solution was IBM Connections. The qualitative research methodology was an extensive case study. Three companies took part into this thesis and all in all 12 employees were interviewed. Additionally, seven IBM Social Business Experts were interviewed in order to receive a better understanding of the phenomenon. Three research questions were designed to fulfill the purpose of this thesis. The research questions were: 1. How are the dimensions of social capital structured through collaboration? 2. How does agency form in Enterprise 2.0? 3. How does social collaboration emerge as a result of the interplay between agency and dimensions of social capital in an Enterprise 2.0 environment and creates outcomes such as trust, identification and knowledge? The main research findings indicate that social collaboration increases trust, identification and knowledge by giving employees more capabilities to do their work. Consequently, social collaboration increases company performance by making individuals and groups more effective. The support of top management is crucial in making Enterprise 2.0 successful, because it is more a cultural than a technological change. Power agency, the lack of top management support and old established work ways such as email and databases work as barriers to social collaboration.

Itse tehty moderni. Gramofoni, polkupyörä ja valokuvaus suomalaisten elämässä 1880-luvulta 1940-luvulle

Tässä tutkimuksessa tarkastellaan aineellista modernia ja materiaalisen kulttuurin muutosta Suomessa 1880-luvulta 1940-luvulle tutkimalla sitä, miten kolme kansainvälistä teknologiaa, gramofoni, polkupyörä ja valokuvaus, otettiin Suomessa käyttöön ja millaisia paikallisia ilmiöitä niiden ympärille kehittyi. Tutkimus koostuu johdanto- ja yhteenveto-osan lisäksi kuudesta artikkelista, joissa käsitellään seuraavia alateemoja: itse tehtyjä polkupyöriä, käyntikorttikuvien käyttöä maalaiskodeissa, maaseudun pyöräilyä ja sen muistelemista, vuoden 1929 gramofonikuumetta, valokuvausta teknisenä harrastuksena sekä maalaisia gramofonin käytön tapoja. Tutkimuksen lähteinä on käytetty laajoja muistitietoaineistoja, sanoma- ja aikakauslehtiaineistoja, arkistoaineistoja, aikalaiskirjallisuutta ja museoesineitä. Lähteistä on etsitty mikrohistoriallista lukutapaa noudattaen johtolankoja gramofoniin, polkupyörään ja valokuvaukseen liittyneihin käytäntöihin. Esitän, että muistitietolähteet, muiden lähteiden kanssa ristiinluettuina, antavat hyvän mahdollisuuden sellaisten arjen käytäntöjen tarkasteluun, joiden tutkiminen muiden lähteiden perusteella olisi vaikeaa tai mahdotonta. Tutkimuksessa käytetyistä teoreettisista kehyksistä niin teknologian sosiaalinen rakentuminen, arjen historia, materiaaliseen kulttuuriin liittyvä teoriapohja, kulutuskulttuurin tutkimus kuin käytäntöteoriatkin kannustavat tarkastelemaan sitä, miten käyttäjien toiminta muokkaa ja määrittää teknologiaa. Näiden teoriasuuntausten pohjalta olen tätä tutkimusta varten kehittänyt itse tehdyn modernin ja kansankeksinnön käsitteet, jotka tarkentavat katseen ajallisesti ja paikallisesti tyypillisiin teknologian muokkauksen ja määrittelyn tapoihin sekä paikalliseen teknologiseen kekseliäisyyteen. Itse tehdyn modernin käsite auttaa hahmottamaan materiaalisia muutoksia ja pysyvyyksiä ajanjaksolla 1800-luvun lopulta toiseen maailmansotaan. Suomalaiset muovasivat omanlaisensa modernin, jossa uutuudet ja muutokset sulautuivat osaksi sitkeinä jatkuvia ja hitaasti muuttuvia maalaisyhteiskunnan toimintatapoja ja muokkasivat niitä vähitellen. Itse tehty moderni sekoitti omavaraisuutta ja kulutuskulttuuria, käsillä tekemiseen perustuvaa taitavuutta ja kursseilla sekä koulutuksessa saavutettua teknistä tietoa, paikallisia aineksia ja kansainvälisiä vaikutteita. Puhumalla kansanomaisista keksinnöistä olen halunnut korostaa tällaisten yhdistelmien mahdollisuutta ruohonjuuritasolla ja massatuotettujen laitteiden sovittamista osaksi pitkälti itse tehtyä ja omavaraista esinemaailmaa.

Esimiesten muuttuvat osaamistarpeet media- ja kustannusalan murroksessa

Organisaatioiden toimintaympäristö on muuttunut ratkaisevasti ja muutos jatkuu. Muutok-sen kiihtyvä nopeus, asioiden epävarmuus ja kompleksisuus aiheuttavat uudenlaisia haas-teita työelämälle, osaamistarpeiden ennakoinnille ja tulevaisuuden suunnittelulle. Esi-miesosaaminen vaikuttaa merkittävästi siihen, miten hyvin organisaatioissa pystytään hyö-dyntämään sen muuta inhimillistä pääomaa ja tämä tutkimus osallistuu keskusteluun siitä, millä tavalla esimiesosaamisen tulisi kehittyä, jotta se pystyy vastaamaan käynnissä ole-vaan yhteiskunnalliseen, sosiaaliseen ja teknologiseen muutokseen. Tutkimuksen tavoit-teena on ennakoida digitaalisen murroksen keskellä olevan media- ja kustannusalan orga-nisaation esimiesosaamisessa tarvittavia muutoksia. Tutkimus on luonteeltaan laadullinen ja primääritutkimusaineisto koostuu kohdeorganisaatiossa esimiesten, toimitusjohtajan ja henkilöstöpäällikön haastatteluista. Tutkimuksen mukaan tulevaisuudessa tarvittavat esimiesosaamiset eivät merkittävästi eroa tämän päivän paradigman mukaisista osaamisista. Monien osaamisten merkitys kuitenkin korostuu. Esimiesten ja muiden työntekijöiden osaamisten nähdään lähestyvän toisiaan ja tulevaisuudessa rajat esimiesten ja tiimiläisten osaamistarpeiden välillä vähenevät entises-tään. Esimiestyössä monet osaamistarpeet, kuten esimerkiksi epävarmuuden sietokyky, kuitenkin korostuvat. Esimiehen merkittävänä tehtävänä nähdään jatkossa entistä vah-vemmin vastuunkantaminen työyhteisössä.

Fluxo de empregos, fluxo de trabalhadores e fluxo de postos de trabalho no Brasil

Job flows, workers flows and employment flows in Brazil. The labor market is in constant flux. When measuring labor market mobility, it is usual to estimate labor market flow statistics, such as worker reallocation and job reallocation. The goal of this paper is to present previously unknown within plant job reallocation statistics for Brazil. The within plant job reallocation is measured as changes in the occupational mix of the plant. The within plant job reallocation allows a decomposition of worker turnover decomposition into matching, technological change and labor demand factors. Using formal labor market data for Brazil, from 1996 to 2001, our results suggest that technological change accounted for a limited share of worker turnover. More than a quarter of worker turnover can be attributed to labor demand shifts and more than 50% of worker turnover is due to matching.

Brasil (1955-2005): 25 anos de catching up, 25 anos de falling behind

Brazil (1955-2005): 25 years of catching-up, 25 years of falling behind. The present paper discusses the Brazilian industrial development under a neo-schumpeterian perspective in the period after 1955. The hypothesis is that, in the last 50 years, Brazil spent the first 25 years catching up and, next, the following 25 years falling behind. The 1955-1980 period, by means of international funding, allowed catching up with the paradigm in maturation within the fourth technological revolution. However, in this period, it was determined the main debilitating elements for the country's entrance in the new techno-economical paradigm of the fifth technological revolution which emerged in the middle of the 70s. It is in the strategy to internationalize the economy, granting the mutinational companies the key-sectors of the national economy dynamics during the catching up period, the main element of dependence in the journey that conditions the current performance, responsible for technology subordination and keeps the Brazilian economy with low dynamism.

Management Material: Understanding the Contradictory Perspectives of Lower Level Managers in a Canadian Call Centre

Call centres have emerged during a time of rapid technological change and represent a form of ready employment for those seeking to replace or supplement "traditional" forms of employment. Call centre work is considered characteristic of the kinds of service work available in the new economy. This paper examines the experiences and practices of lower level managers in a call centre in southern Ontario. Findings are based on analysis of semi-structured interviews. The findings suggest that lower level managers resolve the contradictory social space they occupy by aligning themselves primarily with more powerful executives, in part because they know this might lead to increased job security. The implications of this trend for building a strong labour movement capable of combating neoliberal discourses regarding the need for work restructuring are discussed.

Vertical R&D Sprillovers, Cooperation, Market Structure, and Innovation.

This paper studies vertical R&D spillovers between upstream and downstream firms. The model incorporates two vertically related industries, with horizontal spillovers within each industry and vertical spillovers between the two industries. Four types of R&D cooperation are studied : no cooperation, horizontal cooperation, vertical cooperation, and simultaneous horizontal and vertical cooperation. Vertical spillovers always increase R&D and welfare, while horizontal spillovers may increase or decrease them. The comparison of cooperative settings in terms of R&D shows that no setting uniformly dominates the others. Which type of cooperation yields more R&D depends on horizontal and vertical spillovers, and market structure. The ranking of cooperative structures hinges on the signs and magnitudes of three competitive externalities (vertical, horizontal, and diagonal) which capture the effect of the R&D of a firm on the profits of other firms. One of the basic results of the strategic investment literature is that cooperation between competitors increases (decreases) R&D when horizontal spillovers are high (low); the model shows that this result does not necessarily hold when vertical spillovers and vertical cooperation are taken into account. The paper proposes a theory of innovation and market structure, showing that the relation between innovation and competition depends on horizontal spillovers, vertical spillovers, and cooperative settings. The private incentives for R&D cooperation are addressed. It is found that buyers and sellers have divergent interests regarding the choice of cooperative settings and that spillovers increase the likelihood of the emergence of cooperation in a decentralized equilibrium.

Information Sharing and the Stability of Cooperation in Research Joint Ventures.

The model studies information sharing and the stability of cooperation in cost reducing Research Joint Ventures (RJVs). In a four-stage game-theoretic framework, firms decide on participation in a RJV, information sharing, R&D expenditures, and output. An important feature of the model is that voluntary information sharing between cooperating firms increases information leakage from the RJV to outsiders. It is found that it is the spillover from the RJV to outsiders which determines the decision of insiders whether to share information, while it is the spillover affecting all firms which determines the level of information sharing within the RJV. RJVs representing a larger portion of firms in the industry are more likely to share information. It is also found that when sharing information is costless, firms never choose intermediate levels of information sharing : they share all the information or none at all. The size of the RJV is found to depend on three effects : a coordination effect, an information sharing effect, and a competition effect. Depending on the relative magnitudes of these effects, the size of the RJV may increase or decrease with spillovers. The effect of information sharing on the profitability of firms as well as on welfare is studied.

Religion and Economic Growth: Was Weber Right?

Evidence of falling wages in Catholic cities and rising wages in Protestant cities between 1500 and 1750, during the spread of literacy in the vernacular, is inconsistent with most theoretical models of economic growth. In The Protestant Ethic, Weber suggested an alternative explanation based on culture. Here, a theoretical model confirms that a small change in the subjective cost of cooperating with strangers can generate a profound transformation in trading networks. In explaining urban growth in early-modern Europe, specifications compatible with human-capital versions of the neoclassical model and endogenous-growth theory are rejected in favor of a “small-world” formulation based on the Weber thesis.

Industrial Adjustment: Context, Causes, Impacts and Methods for Analysis

Adjustement is an ongoing process by which factors of reallocated to equalize their returns in different uses. Adjustment occurs though market mechanisms or intrafirm reallocation of resources as a result of changes in terms of trade, government policies, resource availability, technological change, etc. These changes alter production opportunities and production, transaction and information costs, and consequently modify production functions, organizational design, etc. In this paper we define adjustment (section 2); review empirical estimates of the extent of adjustment in Canada and abroad (section 3); review selected features of the trade policy and adjustment context of relevance for policy formulation among which: slow growth, a shift to services, a shift to the Pacific Rim, the internationalization of production, investment distribution communications the growing use of NTB's, changes in foreign direct investment patterns, intrafirm and intraindustry trade, interregional trade flows, differences in micro economic adjustment processes of adjustment as between subsidiaries and Canadian companies (section 4); examine methodologies and results of studies of the impact of trade liberalization on jobs (section 5); and review the R. Harris general equilibrium model (section 6). Our conclusion emphasizes the importance of harmonizing commercial and domestic policies dealing with adjustment (section 7). We close with a bibliography of relevant publications.

Statistical Inference for Computable General Equilibrium Models with Application to a Model of the Moroccan Economy

We study the problem of measuring the uncertainty of CGE (or RBC)-type model simulations associated with parameter uncertainty. We describe two approaches for building confidence sets on model endogenous variables. The first one uses a standard Wald-type statistic. The second approach assumes that a confidence set (sampling or Bayesian) is available for the free parameters, from which confidence sets are derived by a projection technique. The latter has two advantages: first, confidence set validity is not affected by model nonlinearities; second, we can easily build simultaneous confidence intervals for an unlimited number of variables. We study conditions under which these confidence sets take the form of intervals and show they can be implemented using standard methods for solving CGE models. We present an application to a CGE model of the Moroccan economy to study the effects of policy-induced increases of transfers from Moroccan expatriates.

Explaining the Great Divergence: Medium and Message on the Eurasian Land Mass, 1700-1850

Between 1700 and 1850, per-capita income doubled in Europe while falling in the rest of Eurasia. Neither geography nor economic institutions can explain this sudden divergence. Here the consequences of differences in communications technology are examined. For the first time, there appeared in Europe a combination of a standardized medium (national vernaculars with a phonetic alphabet) and a non-standardized message (competing religious, political and scientific ideas). The result was an unprecedented fall in the cost of combining ideas and burst of productivity-raising innovation. Elsewhere, decreasing standardization of the medium and increasing standardization of the message blocked innovation.

Economic Development under Alternative Trade Regimes

How does openness affect economic development? This question is answered in the context of a dynamic general equilibrium model of the world economy, where countries have technological differences that are both sector-neutral and specific to the investment goods sector. Relative to a benchmark case of trade in credit markets only, consider (i) a complete restriction of trade, and (ii) a full liberalization of trade. The first change decreases the cross-sectional dispersion of incomes only slightly, and produces a relatively small welfare loss. The second change, instead, decreases dispersion by a significant amount, and produces a very large welfare gain.