The transformative capacity of new technologies. How innovations affect sectoral change: Conceptual considerations

Following up on recent debates about sectoral systems of innovation and production, the paper introduces a heuristic framework for analyzing and explaining distinct patterns of technology-based sectoral change. The concept is based on two interrelated influencing factors. The first is the sectoral-specific transformative capacity of new technologies themselves, that is, their substantial or incremental impact on socioeconomic and institutional change in a given sectoral system. The second is the sectoral adaptability of socioeconomic structures, institutions, and actors confronted with the opportunities presented by new technologies. The first factor the sectoral transformative capacity of new technologies enables us to identify the technology-driven pressure to change and adjust the structural and institutional architectures of the sectoral system. The second, complementary factor sectoral adaptability helps us to discern the distinct social patterns of anticipating and absorbing this technology-based pressure. The specific interplay between the two influencing factors creates distinguishable modes of sectoral transformation, ranging from anticipative and smooth adjustments to reactive and crisis-ridden patterns of change. Even processes of radical sectoral change continue over longer periods of mismatch, characterized by a cumulation of numerous and mostly gradual organizational, structural, and institutional transformations. --

Towards a Theory and Policy of Eco-Innovation - Neoclassical and (Co-)Evolutionary Perspectives

Innovation processes toward sustainable development (eco-innovations) have received increasing attention during the past years. Since existing theoretical and methodological frameworks do not address these problems adequately, research need can be identified to improve our understanding of innovation processes toward sustainability in their different dimensions, complex feedback mechanisms and interrelations. This paper discusses the potential contribution of neoclassical and (co-)evolutionary approaches from environmental and innovation economics to fill this gap. It is argued that both approaches have their merits and limits concerning a theory and policy of ecoinnovation. Neoclassical methods are most elaborated to analyze the efficiency of incentive systems which seems to be essential for stimulating innovation. Evolutionary approaches are more appropriate for analyzing long-term technological regime shifts. On this theoretical basis, a crucial question is if innovations toward sustainability can be treated like normal innovations or if a specific theory and policy are needed. Three specialties of eco-innovation are identified: the double externality problem, the regulatory push/pull effect and the increasing importance of social and institutional innovation. While the first two of them are widely ignored in innovation economics, the third is at least not elaborated appropriately. The consideration of these specialties may help to overcome market failure by establishing a specific eco-innovation policy and to avoid a "technology bias" by a broader understanding of innovation. Eco-innovation policy requires close coordination with environmental policy in all innovation phases. Environmental and eco-innovation policy can be regarded as complementarily. However, an environmental policy neglecting the potentially beneficial effects of a specific eco-innovation policy (especially in the invention phase) may lead to excessive economic costs. Due to the specialties of eco-innovation, it seems moreover to be crucial to strengthen the importance of social and institutional innovation in both eco-innovation theory and policy. --eco-innovation,innovation theory,co-evolution,double externality,regulatory push/pull effect,social innovation,institutional innovation

European Regional Science: Between Economy of Culture and Economy of Catastrophes (Review of the ERSA 2005 Amsterdam Congress Reports)

ERSA Congress can be seen as laboratory of ideas with broad representation not only European, but also scientists from US, Japan, Korea, Brazil, African and Asian countries. With very high speed new thoughts and phenomena from the European regional scientific community appear on the stages of the ERSA annual Congresses. Three new features were characteristic for the 2005 ERSA Congress in comparison with the previous ones. First, special focus on the factors of density in the regional development. That was not surprising as the meeting was held in the city of Amsterdam with the highest density in Europe where land and space are scarce goods. Second, integrative tendencies in attempt to use natural factors to explain traditional phenomena of the regional science. Issues of land and water management coincide with economic growth and regional development in many reports. Third, for the first time theme of networks and network society was embedded in many sections of the Congress and in the very title of the Congress itself. All these aspects as participants demonstrated could be positive creative factors increasing cultural assets of the European regions, efficiency of the knowledge transfer, leisure activities; or negative as the source of disaster and risk for human beings. Density factors (lack of people or lack of space?) divide European regional science into two sciences – urban for the populated regions and regional for the territories scarcely populated with very different themes, methods and tools of research. Housing markets, urban sprawl and commuting patterns are popular topics in the first case; labour markets and human capital in the second case. New Economic Geography models work smoothly in the first regions but are inappropriate in the second. Competition is harder in the labour markets of the populated regions but is softer in the regions with scattered population where it is substituted by the forces of cooperation. Contemporary regional society can be sustainable only as network society. In the reports networks were examined on different levels: a) as transportation networks in the investment national or interregional projects; b) as policentricity urban structures replacing Cristaller’s hierarchy of central places; c) as public-public, public-private partnerships combining public and private stakeholders in the decision-making process. Transition of the European regions from the industrial to network/service has begun 25 years ago. Position of the concrete region on this route determines clearly the type and intensity of its problem and research agenda. The more advanced is the region or nation on this route the more often terms like “reinventâ€, “rethinkâ€, “revisited†are used in the scientific community. Rediscovery of the old concepts, definitions, essence (as Amsterdam Congress demonstrated) is very creative and challenging process of the post-industrial regional science.

What are service sector innovations and how do we measure them?

Services dominate all advanced economies but service innovations are still an underresearched topic. One of the reasons are definitional and measurement difficulties. The goal of the paper is to highlight those by reviewing recent literature and to assess the current state of knowledge and challenges. Theoretical approaches, empirical techniques and selected empirical results are discussed. Apparently the biggest challenge, at this point, is to create a unified conceptual framework, that would encompass both manufacturing ad services. Meeting this challenge will, however, be difficult, given the strong focus on manufacturing, both in the literature and in the way enterprise surveys are designed.innovation, services, manufacturing

The Copying Paradox: Why Converging Policies but Diverging Capacities in Eastern European Innovation Systems?

This paper analyzes the development of Eastern European innovation systems since the 1990s by looking at the theoretical and empirical accounts of two discourses that have had a significant impact on the development of innovation systems: innovation policy and public administration and management. We propose a framework for analyzing the development of innovation policies by distinguishing between two concepts – policy and administrative capacity – that are necessary for innovation policy making and implementation. Using the framework we show how the Eastern European innovation systems have because of past legacies and international policy transfers developed a highly specific understanding of innovation policy based on the initial impact of the Washington Consensus policies and later the European Union. We argue that because of the interplay between the principles and policy recommendations of the two international discourses we can see the emergence of a “copying paradox” in Eastern European innovation systems: that is, despite the perception of policy convergence, we can witness a divergence in the policy from the intended results, and as a result can talk about limited and de-contextualized policymaking capacities.- administrative capacity, catch-up, innovation policy, Eastern Europe

In Search of a Strategy for Innovation Policy of Polish Economy

The paper is divided into three parts. First deals with the characteristics of innovative potential and innovative activity of Polish economy. Second is devoted to the problem of innovation policy in Poland. Considerations presented in this part allow to come to a few conclusions concerning evaluation of innovation policy implemented in Poland. The last part discusses the issue of innovation strategy suitable for development of Polish economy in long run

Networking Innovation in the European Car Industry : Does the Open Innovation Model Fit?

The automobile industry is has entered an innovation race. Uncertain technological trends, long development cycles, highly capital intensive product development, saturated markets, and environmental and safety regulations have subjected the sector to major transformations. The technological and organizational innovations related to these transformations necessitate research that can enhance our understanding of the characteristics of the new systems and extrapolate the implications for companies as well as for the wider economy. Is the industry ready to change and accelerate the pace of its innovation and adaptability? Have the traditional supply chains transformed into supply networks and regional automobile ecosystems? The study investigates the applicability of the Open Innovation concept to a mature capital-intensive asset-based industry, which is preparing for a radical technological discontinuity - the European automobile industry - through interviewing purposely selected knowledgeable respondents across seven European countries. The findings contribute to the understanding of the OI concept by identifying key obstacles to the wider adoption of the OI model, and signalling the importance of intermediaries and large incumbents for driving network development and OI practices as well as the need of new competencies to be developed by all players.Peer reviewe

Role of "Lead Market" factors in globalization of innovation: Emerging evidence from India & its implications

Access to lead markets is generally regarded as an important driver of the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. They are traditionally thought to exist in economies with high per capita income, sophisticated markets and high international visibility. We, however, propose that there is an increasing evidence of lead market tendencies in some emerging economies, e.g. India. We undertake a literature review to crystallize the need for an update/extension of the existing model to better reflect the changed ground realities and propose that factors such as voluminous markets, strong technological capabilities, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies of developing economies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid, worldwide. --Lead Markets,India,Globalization of Innovation,Internationalization of R&D,Frugal Innovations

Product Service System Innovation in the Smart City

Product service systems (PSS) may usefully form part of the mix of innovations necessary to move society toward more sustainable futures. However, despite such potential, PSS implementation is highly uneven and limited. Drawing on an alternate socio-technical perspective of innovation, this paper provides fresh insights, on among other things the role of context in PSS innovation, to address this issue. Case study research is presented focusing on a use orientated PSS in an urban environment: the Copenhagen city bike scheme. The paper shows that PSS innovation is a situated complex process, shaped by actors and knowledge from other locales. It argues that further research is needed to investigate how actors interests shape PSS innovation. It recommends that institutional spaces should be provided in governance landscapes associated with urban environments to enable legitimate PSS concepts to co-evolve in light of locally articulated sustainability principles and priorities

Analysis and measurement of interactions in European Innovation

Innovation Systems constitute an analysis framework, which allows comprehending the socio-economic structure of a territory. It consists of analyzing the existence of actors such as government institutions, clusters, universities, industries… their main competences, and the interactions into Innovation Networks among them. Thus, authorities (regional, national, local…) are endowed of a tool that allows the creation and development of competitive and efficient Innovation Systems. In this context, and due to the importance of interactions inside Innovation Systems, the present research intends to contribute a methodology which helps us to analyze and measure these interactions produced within Innovation Networks. The methodology developed will be tested in a sector which is present in several European Territories. This way, not only the measures defined but also the differences among the Networks analyzed will be observed and tested.Innovation Systems, Interactions, Innovation Networks, Measures.