National innovation policy in Cyprus

This paper analyses the concept of national innovation policy (NIP) and puts forward arguments supporting the need for a NIP for small developing economies like Cyprus. A brief outline is given of the science/technology infrastructure and current innovation related policies in Cyprus while the attitudes of owners/managers of private manufacturing firms towards these policies, based on a research survey, are examined. The survey reveals an ambivalent attitude towards NIP, which is probably due to unrealistic expectations, as well as, inefficiency in design and implementation of innovation policy measures. Case research confirms these conclusions and highlights the importance of NIP for private firms despite the rhetoric of their managers against it. The formulation of a specific NIP for Cyprus is then considered, from which lessons for other developing countries are drawn

Dynamic Capabilities and their Indirect Impact on Firm Performance

This paper investigates the relationship between dynamic capabilities and firm performance. In particular it addresses the question of whether dynamic capabilities impact directly or indirectly on performance. Using data from manufacturing firms, the paper articulates and measures dynamic capabilities as a multi-dimensional construct with three underlying factors: coordination, learning and strategic competitive response. Then, structural equation modelling is employed to explore the relationships among dynamic capabilities, functional competences and firm performance. Empirical findings suggest that dynamic capabilities are antecedents to functional competences which in turn have a significant effect on performance. Direct effects on performance are found to be insignificant. Furthermore, similar effects seem to hold for both higher and lower levels of environmental dynamism. Theoretical and practical implications are discussed.Dynamic capabilities; functional competences; firm performance; indirect impact

Growth, Integration and Spillovers in the Central and East European Software Industry

This paper explores growth and competitive advantage in CEE software firms; it looks at the role of strategic partnerships and industry (spillover) effects. The empirical analysis is based on survey data from 224 software firms from six CEE countries (Bulgaria, Czech R, Estonia, Serbia, Slovenia, Romania). The results of the descriptive analysis are interpreted from the perspective of the role of capabilities in industrial development. The analysis shows that the patterns of growth are a mix of sector, region and sub--region specific determinants and show important national differences. This suggests that the CEE software industry cannot be considered as a homogenous phenomenon. There is no general tendency towards an expansion in exports; based on our sample only Romania is developing an export oriented software industry. Research shows that the CEE software industry is populated by young, dedicated, domestic firms, which are independent, and privately owned and which are mainly oriented towards localisation of software. They are strongly dependent for trade and production on alliances and strategic partnerships with foreign partners and a small share of technology based partnerships. There is an extensive process of industry upgrading underway, involving country and sub-region specific changes. The spillover effects are significant, through links with clients and intensive intra-industry knowledge transfer through high employment turnover and potentially high knowledge transfer from foreign to local projects. Differences between central and eastern Europe are strong in terms of degree of diversification of software supply, industrial upgrading and quality of demand. The pattern of software development in CEE differs from that in other emerging markets in the sense that it is domestic market oriented, but with an emerging export market for services. Its further growth and upgrading will be strongly dependent on the acquisition of organisational capabilities by local firms

The Dynamics of Knowledge Accumulation, Regulation and Appropriability in the Pharma-Biotech Sector: Policy Issues

Discussion of reasons for regulation in the pharmaceutical industr

Is an Environmental Management System able to influence environmental and competitive performance? The case of the Eco-Management and Audit Scheme (EMAS) in the European Union

The EMAS Regulation (Reg 761/01 EC) is an EU scheme for the implementation of an Environmental Management System (EMS) by any organization, implemented by the European Commission since the year 1993. The EMS has been originally proposed both by the European Commission and by ISO as the frontrunner of a series of policy tools that were conceived to enable companies to simultaneously pursue environmental objectives and competitive targets (in a synergetic way). Based on the unique dataset of the EVER project, this paper investigates whether or not an EMS implemented within the EMAS Regulation has an effect on firm performance both from an environmental and a competitive point of view. The econometric analysis shows a positive impact of well-designed environmental management system on environmental performance and, as a consequence, on technical and organizational innovations. Effects on other competitive variable as market performance, resource productivity and intangible asset are not strongly supported

The French defence industry in the knowledge management era: A historical overview and evidence from empirical data

In the defence industry the recent development of ‘market for technology', the creation of new European high-technology companies as well as transformations in government agencies have conducted firms to reposition their technological and organisational skills. Our objective is to show that the transformations that have occurred in the past ten years have not only redefined skills and the organisation of production but have also given a more strategic place to knowledge management practices. Thus, we provide a contextual and historical overview with qualitative interviews in order to better understand the relation between KM and innovative behaviour in this industry. We have also built an original industrial and technological database with various samples that provides quantitative information concerning KM and innovative practices. The results of the statistical analysis reveal the specificity of firms in the defence industry. Taking into account the size of the firms and their technological intensity, we show that the behaviour of firms in the defence industry in terms of KM practices is different to that of other firms. The technological performances, the innovation intensity and the patent intensity also show the specificity of this industry. This structural tendency is explained as an innovative behaviour of the French NIS rather than as a mere “trend”Defence industry, Knowledge management practices, R&D, innovation, technological performance.

Innovation for a circular economy : exploring the adoption of PSS by UK companies in the baby products sector

Several authors have commented on the relatively slow rate at which Product Service Systems (PSS) have been adopted in B2B networks. Despite some prominent examples, such as the provision of integrated lighting systems to Sainsbury’s (supermarket chain) by Parkersell in the UK, and the ‘pay per copy’ (lease and take back) systems provided by copier companies such as Xerox and Canon, PSS has not been widely adopted even though the business case seems sound. Consequently, the question of identifying and overcoming barriers to PSS adoption has become an important research topic. In this study we explore barriers to the adoption of PSS in the UK baby products industry using a qualitative research design employing in-depth interviews with baby products suppliers (manufacturers) and buyers (retailers). The novelty of the approach adopted in this study is that key concepts from the Industrial Networks Approach are used to frame the analysis. Buyers and suppliers of baby products acknowledge the value of the PSS approach, but PSS adoption is found to require considerable adaptation to conventional patterns of inter-organizational interaction

Planting and harvesting innovation - an analysis of Samsung Electronics

This study explores how firms manage the entire life cycle of innovation projects based on the framework of harvesting and planting innovation. While harvesting innovation seeks new products in the expectation of financial performance in the short term, planting innovation pursues creating value over a long time period. Without proper management of the process of planting and harvesting innovation, firms with limited resources may not be successful in launching innovative new products to seize a momentum in high tech industries. To examine this issue, the case of Samsung Electronics (SE), now an electronics giant originated from a former developing country, is analyzed. SE has shown to effectively utilize co-innovation to maintain numerous planting and harvesting innovation projects. Both researchers and practitioners would be interested in learning about how SE shared risks of innovation investment with external partners at the early stage of innovation cycles