Openness in product and process innovation

Electronic version of an article published as International Journal of Innovation Management, Vol. 16, Iss. 4, 2012, art. 1250020, pp. 1-24. DOI: 10.1142/S1363919612003812 © Imperial College Press. http://www.worldscientific.com/doi/abs/10.1142/S1363919612003812.Open innovation has generally been explored in terms of improved innovation performance vis-à-vis product/service innovation performance. However, process innovation is often ignored in the open innovation literature. In this study, we assess the impact of openness on innovation in products/services, and also on process innovation, drawing on a large-scale sample of Australian firms. In essence, we find that open innovation models are useful for firms seeking to innovate in processes as well as products and services. However, we find that openness to external information sources may, after a time, lead to decreasing marginal returns as measured by innovation performance. We also observe that, within our sample, the proposed complementarities between internal and external knowledge are generally only evident as precursors to the introduction of new products and services, and may not be as beneficial in stimulating process innovations. It is also shown by our study that investment in absorptive capacity has a declining marginal effect on the innovation performance of new processes, but not on the introduction of new products and services.Fang Huang and John Ric

Central-City/Suburban Inequality and Metropolitan Political Fragmentation

To test the proposition that metropolitan governmental structure has social, economic, and racial consequences, the authors assume that the proliferation of local governments in a metropolitan area and the boundary constraints imposed on the central city have adverse effects, especially on the core city. Analyzing 97 large U.S. metropolitan statistical areas (MSAs), they found only limited support for this proposition. Of three measures of fragmentation, only two were of any consequence, one in the opposite direction predicted. The lower the central city’s share of MSA population, the higher the level of fiscal health for the inner city. Also, municipal boundaries have racial consequences.Yeshttps://us.sagepub.com/en-us/nam/manuscript-submission-guideline

ESTIMATING MONETARY POLICY RULES FOR SOUTH AFRICA

The paper combines the estimation of the Monetary Conditions Index (MCI) with the theoretic modelling of optimal monetary policy in South Africa. The idea that monetary policy is not only interested in optimal monetary conditions but also in external stability, provides the basis for the analysis. The paper introduces the concept of the MCI and estimates the relative influence of interest rates and exchange rates on the output gap. The estimated weights are 1.9:1. This estimation results is used to specify operating target rules for South African monetary policy. Copyright (c) 2006 The Author. Journal compilation (c) 2006 Economic Society of South Africa.