R&D in China and the implications for industrial restructuring

The nation-wide introduction of foreign technology in China has been going on for over 20 years. This paper examines the R&D incentive of the Chinese innovators by analyzing the patent data for the period from 1985 to 1999. The following findings were obtained. First, individual innovators, as opposed to industrial enterprises and research institutes, have been supplying over 70% of all patent applications filed domestically. Second, innovators in China, including the industrial enterprises, have been devoting their R&D resources disproportionately to small innovations, rather than major ones. Third, the large and medium-sized enterprises are not yet the main force for innovation in China. The impacts of industrial structure on R&D incentive are emphasized. Regression analysis for 37 manufacturing industries in China shows that R&D output, measured by the number of patents per firm, is positively related to the eight-firm concentration ratio. I also analyze the microeconomic channels through which the vertical structure of an industry affects firm incentive to absorb imported technologies. “Excessive competition” and a low degree of vertical integration in Chinese industries are major factors leading to small-scale innovation, high propensity to purchase foreign technologies, and low propensity to absorb them. Establishing enterprise groups that are truly subject to market discipline can speed up the “imitation-first-and-then-innovate” process

Selective Industrial and Trade Policies in Developing Countries: Theoretical and Empirical Issues

This paper analyses the case for selective industrial and trade policies in Africa, drawing upon the lessons of East Asia. It reviews the theoretical arguments for government intervention in the context of technological learning, and relates this to the new environment of rapid technical change and globalisation of production. It also considers the risks of government failure in mounting selective policies, and concludes that the degree of selectivity has to be much less than in East Asia. The case for selective policies nevertheless remains strong, if Africa is to make any industrial progress.

Game Analysis on Economic Risks of Lack of Innovation in Industrial Transferring Regions

By using the model of game analysis, we find it is necessary for government to inject certain subsidies in the enterprise technology innovation in the industrial transferring regions. However, because of the information asymmetry, it is difficult to find the right subsidy strength for the governments in practice. After further analysis of subsidies incentive efficiency, the paper tries to put forward some policy recommendations to promote enterprise innovation and to reduce the economic risk

Cooperation in R&D as a leading indicator of innovative activity growth

Purpose: The article is focused on new trends in cooperation activity in research and development in the manufacturing industries of Russia. Various types of cooperation are considered, special attention is paid to research organizations and universities. Design/Methodology/Approach: In the context of this issue, it seems necessary to consider the conceptual framework and information basis for the analysis of scientific activity, to study the problems of scientific and technical cooperation, based on the works of foreign and domestic scientists and to develop indicators of cooperative activities. Finding: Authors proposed to rank the regions of Russia by the level of cooperation activity based on a specially developed hidden indicator. Comparison of the results obtained with regional layers of the costs of R&D suggests that joint research and development activities are typical for those regions that pay considerable attention to development of science. Ranking regions of Russia in terms of cooperative activity allowed identifying the leaders and outsiders of this process. Practical implications: The results of the study can be used in the development of measures of regional development of the country in the implementation of R&D. Originality/Value: To study the impact of the resource base on the cooperative activities of the organization, the authors proposed a composite indicator that includes a wide range of indicators that consider various aspects of cooperative activity.This work was supported by a grant of Russian Foundation for Basic Research №18-010-00564 Modern Tendencies and Social and Economic Consequences of Digital Technologies Development in Russia.peer-reviewe

Investigating the technology catching-up trajectory of Chinese Hi-Tech SMEs: an integrated framework from industry-, resource-, and institution-based view

Accepted for WLICSMB 2010Purpose This paper intends to review the literatures on the technology catching-up trajectory of latecomers in order to understand the innovation strategies of Chinese Hi-Tech SMEs (Gu & Tse, 2010; Xie & White, 2006; Chen & Qu, 2003; Lee & Lim, 2001; Kim, 1997). It also tries to construct an integrated framework to investigate their innovation strategies and the impact on organizational performance from the Industry-, Resource-, and Institution-based view (Peng, Wang, & Jiang, 2008). Design/methodology/approach The authors have reviewed papers published in the leading journals in the R&D field and proposed an integrated conceptual framework of innovation strategies of Chinese Hi-Tech firms based on Peng, Wang and Jiang (2008)’s institution-based view framework to examine the innovation strategy from Industry-, firm-specific Resource-based, and Institution-based View Originality/Value This paper pays attention to the institution factors in shaping Chinese SMEs to develop innovative capabilities. Chinese firms have comparative advantages, such as better comprehending Chinese local market, better understanding of local business environment comparing to MNEs. Our paper argues that by developing effective innovation strategies and improving innovative capabilities, Chinese SMEs will be able to survive from the severe competitions from state-owned enterprises and foreign firms in China

Technology Support for Small Industries in Developing Countries: A Review of Concepts and Project Practices

technology support, small-scale industry, technological capability, learning, competitiveness, assistance projects, industrialisation

The periphery paradox in innovation policy: Latin America and Eastern Europe Compared

In this paper we are interested in analyzing the dynamics of the innovation policy in non-frontier countries, and their relationship with structural change and development.

Industrial Policies in Developing Countries: History and Perspectives

This paper presents a historical and empirical account of the role played by government intervention in the form of industrial policies in spurring development and growth in developing countries in the last fifty years. Adopting the taxonomy proposed in Cimoli et alt. (2008), it describes the set of industrial policies implemented since the end of WWII to today in a number of developing countries. Which are the characteristics of successful industrial policies? Are there industrial policies, among the ones that have worked in the past, which can be also useful in the present context? Is there a fit-all recipe, or the high degree of country heterogeneity makes impossible to identify any general effective industrial policy? These are some of the questions this papers tries to suggest some answers.Industrial policy,Developing Countries,East Asia,Latin America

POLICIES FOR THE LOCATION OF INDUSTRIAL DISTRICTS IN ITALY AND

Recent global trends have affected significantly territorial and economic policies, especially in advanced-economy democracies, weakening frequently their national sovereignty. This paper, through published data, documentary sources, and interviews, offers a comparative perspective of industrial localisation’s policies in Israel and Italy, focusing on the dualism national decision-making/local practice. Although they have two different political structures, both countries have shifted to greater decentralisation, increased deregulation, and more privatisation. Since the beginning of the State, Israel industrial localisation policy used tools as national and regional planning and fiscal incentives, with the objective of the industrial dispersal. But last years’ profound economic, political, and social changes have led to a transformation of Israeli industrial geography, shifting changes in the government policies, and reinforcing the local-government assertiveness. Developing industrial parks has become a top priority even for rural regional council, with the risk of over-investment in too many industrial parks of too small a size. Similarly, since post-war years Italy concentrated on regenerating the economic periphery, the southern regions, through the “Cassa per il Mezzogiorno”, helping finance and developing irrigation, agriculture and industrial development in the most disadvantaged areas with a policy of investments in infrastructures and financial supports to the localisation of large firms. The change of industrial models, now based on more flexible structures, has brought, almost spontaneously, the “Third Italy” phenomenon, a proliferation of ‘local production systems’ (LPS) where SMEs represent an high share of total employment. Based on an endogenous development model, the success of LPS is not guaranteed unless change and innovation take place among local SMEs and institutions and between the local production system and the external environment, competing areas and other spatial system. For both countries is necessary a comprehensive, strategic and flexible planning and a stable, efficient and no-bureaucratic decision-making process, at an intermediate scale between regional and local.