Does Intellectual Capital Affect the Volatility of Returns? An Empirical Investigation on Italian Listed Companies

In modern information economies, economic success increasingly depends on the ability to apply knowledge and to transform it into firm value. While intellectual capital plays a critical role in firm success, it is an intangible asset that is difficult to measure and that is unrecorded by the firm. Difficulties in measuring intellectual capital, as well as the dynamic nature of the firms that rely on it, may lead to greater stock market volatility/risk. Consistent with this expectation, in statistical tests we find that intellectual capital, measured by VAIC, positively relates to the volatility of stock returns section among Italian listed companies. We find this positive relation for two components of a firm’s risk: systematic risk and specific risk. The finding is relevant to both investors concerned with understanding the risk/reward balance of particular investments and regulators concerned with market stability

Dynamics of innovation in European regions

There is interest in both academic literature and regional governments about the innovativeness of regions and the drivers of that competitiveness, especially if considering the impact on economic development and social progress. Innovation is the base for the global competitiveness. Innovative capacity enables regions to increase their productivity and attract investments, thereby sustaining continuous progress in the quality and standard of living. This study aims to measure regions’ innovativeness in different European regions and to evaluate the nature of the innovation process and the relationship existing between its innovativeness’ and its region of origin. It proceeds from the assumption that the competitiveness of a region is reflected in its innovation capacity or innovation dynamic. The literature review regarding regions’ innovativeness produces some insights regarding to the effect of contextual elements on regions performance. Thus, the objective is to compare the European regions to verify the existence of subjacent clusters and find out the characteristics that distinguish the different group of regions. The innovative capacity is considered in terms of innovative output and several factors are analysed to identify and differentiate the dynamics of innovations of the regions. The results point to the existence of five groups of regions, and the factors identified are related to innovation process, namely forms of innovation, factors and objectives of innovation and with aspects related to the innovation framework such as tertiary education and life-long learning, business and public R&D expenses, and level of collaboration for innovating.

Regional Development: The Importance of the Involvement of Inhabitants and Innovative Approaches in Management

Innovation and an innovative approach in management, education and leadership have been changing over decades, according to the dynamic world we are living in. Changes start at an individual level, with the personality, and only those who have changed themselves can start to lead others towards global change. The Latvian National Development Plan defined aspects of polycentric development for all the regions of Latvia. Each region has resources, strengths, weaknesses, opportunities and threats, but human resources are the most important resource for change, creative ideas and sustainable development. The education system changes very slowly, from lecture learning to a more inclusive ‘learning by doing’ approach. This approach has been used in northern countries for a while, but Latvia has just now started to implement the approach. The term ‘innovation’ today is wider than product, process, service or organisational innovation. At a national and regional level of development, it is crucial to encourage inhabitants of the region to stay in or return to rural areas, and create knowledge and enterprises in the region and their home town. The aim of the paper is to evaluate the involvement of residents in management activities and regional development processes, and their willingness to participate in the creation of knowledge and innovative entrepreneurship and co-creation. The paper is a review of literature on theoretical aspects of the creation of innovation in the region in a combination of survey analyses of residents. The methodological approach is based on two steps: a review of research literature, and an analysis of the results of a survey of residents of the region of their willingness to be involved in processes and tasks for regional development, and some aspects of analysis of entrepreneur opinion about innovative solutions in their companies. The article consists of four main parts: 1) the theoretical findings of a systemic approach to innovation and development; 2) the role of the innovation process in development from different perspectives; 3) an analysis of a survey of the region’s residents about their willingness to be involved in processes of regional development; 4) aspects of innovation used in regional entrepreneurship. The significance of the paper is to define aspects of regional development relating to innovation and co-creation.The research was supported by the NATIONAL RESEARCH PROGRAMME “LATVIAN HERITAGE AND FUTURE CHALLENGES FOR THE SUSTAINABILITY OF THE STATE” project “CHALLENGES FOR THE LATVIAN STATE AND SOCIETY AND THE SOLUTIONS IN INTERNATIONAL CONTEXT" (INTERFRAME-LV, Project No.VPP-IZM-2018/1-0005

REGIONAL DEVELOPMENT: THE IMPORTANCE OF THE INVOLVEMENT OF INHABITANTS AND INNOVATIVE APPROACHES IN MANAGEMENT

Innovation and an innovative approach in management, education and leadership have been changing over decades, according to the dynamic world we are living in. Changes start at an individual level, with the personality, and only those who have changed themselves can start to lead others towards global change.  The Latvian National Development Plan defined aspects of polycentric development for all the regions of Latvia. Each region has resources, strengths, weaknesses, opportunities and threats, but human resources are the most important resource for change, creative ideas and sustainable development. The education system changes very slowly, from lecture learning to a more inclusive ‘learning by doing’ approach. This approach has been used in northern countries for a while, but Latvia has just now started to implement the approach. The term ‘innovation’ today is wider than product, process, service or organisational innovation. At a national and regional level of development, it is crucial to encourage inhabitants of the region to stay in or return to rural areas, and create knowledge and enterprises in the region and their home town.The aim of the paper is to evaluate the involvement of residents in management activities and regional development processes, and their willingness to participate in the creation of knowledge and innovative entrepreneurship and co-creation. The paper is a review of literature on theoretical aspects of the creation of innovation in the region in a combination of survey analyses of residents. The methodological approach is based on two steps: a review of research literature, and an analysis of the results of a survey of residents of the region of their willingness to be involved in processes and tasks for regional development, and some aspects of analysis of entrepreneur opinion about innovative solutions in their companies. The article consists of four main parts: 1) the theoretical findings of a systemic approach to innovation and development; 2) the role of the innovation process in development from different perspectives; 3) an analysis of a survey of the region’s residents about their willingness to be involved in processes of regional development; 4) aspects of innovation used in regional entrepreneurship. The significance of the paper is to define aspects of regional development relating to innovation and co-creation.KEY WORDS: innovation, regional development, knowledge, involvement.JEL CODES: R10; M10; M11DOI: http://dx.doi.org/10.15181/rfds.v30i1.203

Determinants of national innovation capacity in developing countries: An empirical survey

Abstract. National innovation capacity is seen as the main source of sustainable growth and prosperity of countries. National innovation capacity, being both an economic and political asset, is defined as the potential of a country to produce innovation. At the same time, measuring the capacity of national innovation provides important information about the dynamics of innovation in the field of economics. Also, it is seen that most of the studies on national innovation capacity have focused on developed countries. In this study, it is aimed to make an empirical analysis of the determinants of national innovation capacity in developing countries in comparison with developed countries. For this purpose, variables considered to be determinants of national innovation capacity are classified under three headings as national technological capability and infrastructure factors, external factors, and institutional factors. In most studies in the literature, national innovation capacity is represented only by the number of patents in the empirical analysis. However, in most of these studies, the disadvantages and deficient aspects of representing national innovation capacity only with the number of patents are mentioned and almost no alternative methods have been suggested. Based on the suggestions and methods in empirical studies, the national innovation capacity index is calculated and represented as a new output variable representing the national innovation capacity in the effort to fill the relevant gap in the literature. In the study, data in the period of 1996-2016 are analyzed by the panel data analysis method for 18 developing countries and 31 developed countries. The effects of national technological capabilities and infrastructure factors of national innovation capacity in developing countries are seen to be weak. At the same time, it is seen that external factors have a positive effect on national innovation capacity in these countries and this indicates the dependence on foreign technologies in the development of technological capabilities.Keywords. National Innovation Capacity, National Technological Capability, Developing Countries, Panel Data Analysis.JEL. O32, O33, C23

Innovation in Industrial Clusters: a Survey of Footwear Companies in Brazil

The aim of this study is to characterize the relationships in innovation and business clustering processes in the productive chain of small and medium enterprises (SME) of Brazil. The object of study are SMEs the local procuctive cluster of the shoes in Franca, State of São Paulo. The conceptual model developed is based on the following constructs: vertical integration, innovation and characteristics of the cluster, and it is focused on identifying the agents that act predominantly in product innovation processes in the cluster. A survey was conducted. It was found that there is cooperation between the companies in the productive arrangement studied, and that shoe manufacturers are those who, predominantly, stimulate innovation within the cluster

Virtual Relations and Value Creation for female enterprises during the Covid-19 pandemic era

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Local labour market diversity and business innovation: evidence from Irish manufacturing businesses

This paper estimates the effect of diversity within local labour markets on business-level innovation. Using survey data and Irish census data, the paper explores whether the diversity of human capital at county level is associated with higher innovation output. Diversity in age, nationality and educational attainment is measured using an index of heterogeneity and its effect on business innovation is estimated using an innovation production function approach. It is found that diversity in nationality and educational attainment is positively associated with the probability of a business product innovating. The findings also suggest that greater external labour market diversity and greater levels of internal third-level education may be substitutes. Where a business is in a diverse location, it may not require higher levels of educational attainment among its workforce to source knowledge for product innovation

Linking Knowledge Management, Business Excellence and Innovation Performance

This research examined the extent to which the management of knowledge and the application of business excellence frameworks can contribute to innovation performance. A model of Knowledge Management (KM) and Business Excellence (BE) framed the study. Intensive case studies were conducted with six Australian service sector organizations that had won business excellence awards to determine the ways in which a business excellence framework can inform knowledge management practices that lead to sustained innovation performance. Analysis of the data revealed the manner in which the Australian Business Excellence Framework (ABEF) informed knowledge management practices and contributed to innovation in the six service sector organizations. Although the research is preliminary in nature, results indicate that principles of the ABEF shaped KM activities through fostering continuous improvement which in turn encouraged a stronger focus on incremental rather than radical forms of innovatio