The paradox of high R&D input and low innovation output: Sweden

This chapter takes its point of departure in the so-called Swedish paradox, according to which the Swedish NSI is plagued by low pay-off in relation to very high investments in R&D and innovation efforts. Using new data, we show that this paradox is still in operation, i.e. the productivity or efficiency of the Swedish NSI remains low. We also specify the paradox in several respects. By focussing upon nine activities in the NSI, we attempt to explain why and how the paradox operates. The paradox is also related to the moderate growth of labour productivity in Sweden. Further, we show that the paradox is linked to globalization: internationalization of production by Swedish firms has proceeded further than the internationalization of R&D. On the basis of this analysis, we identify strengths and weaknesses of the Swedish NSI – many of which are related to the Swedish paradox. We take account of the history of innovation policy in Sweden and – on the basis of the analysis as a whole -- we identify future policy initiatives that might help to mitigate the Swedish paradox.Innovation; innovation system; Swedish national system of innovation; Swedish paradox

How did we assess the outcomes of tradable green certificates? A review

When policy support schemes are in reevaluation process, academic literature play pivotal role. This paper presents a literature review of studies that have assessed the performance of Tradable green certificates (TGC) schemes in stimulating investments in Electricity from Renewable Energy Sources (RES-E). To do so, we conduct an extensive and systemic literature review on the Web of Science database. This paper?s outcomes in addition to the descriptive statistics that provide an overview of the publications, intend to gain insights in two important aspects. First, we categorize the typical research approaches (i.e. analysis criteria) to the assessment of TGC systems performance in different, mainly European countries and summarize their outcomes. Second, we illustrate which of research approaches have had the highest impact on the literature of its nature, based on the average number of citations. This paper provides several intriguing direction for future studies

Connectivity and Performance of Science-based Firms

This paper addresses whether or not there is a relationship between a young science-based firm’s patterns of connections and the associated resource flows, and its performance. Hypotheses derived from the literature are tested in relation to three performance indicators: inventiveness, innovativeness and employment. Analyzing a set of firms in Sweden, Ohio and Massachusetts, working with biocompatible materials and related products, the results indicate that firm performance is significantly influenced by the firms’ pattern of connectivity. In particular, technology-related connections proved important, where a high diversity in types of sources for technological input, a large number of technological relations and a high amount of technology transfer from the parent organization were related to better performance for this specific group of firms. Copyright Springer 2006

New Technology-Based Firms and Industrial Dynamics Evidence from the Technological System of Biomaterials in Sweden, Ohio and Massachusetts

The aim of this thesis is to enhance the understanding of the relationship between industrial dynamics and new technology-based firms (henceforth NTBFs). For a population of biomaterials NTBFs in Sweden, Ohio and Massachusetts, we have analyzed two facets of this issue. First, we addressed the process of a firm\u27s establishment, development and performance in relation to the technological system of which the firm is a part. In particular we analyzed (a) pre-firm activities as related to firm development, (b) firm development through network exchanges, and (c) performance as related to connectivity and system functionality. Second, we set out to conceptualize the mechanisms by which new technology-based firms influence the process of industrial dynamics. We found that pre-firm activities pervasively influenced not only the initial formation of a new firm, but to some extent, its further evolution as well. Analyzing the pattern of networking and the associated resource flows (i.e. the connectivity) confirmed the proposition that innovative activity is a collective process, taking place at the interface between the NTBF and its partners. Many of the connections are regional in character, as networks were established in a path-dependent manner. Further, an NTBF develops in the context of three evolutionary co-selective processes: technology evolution, actor functionality and network evolution. As regards firm performance, we found that it was significantly influenced by a number of dimensions of connectivity. In particular, technology-related connectivity proved important. Our analysis also showed that the functionality of a region is influential for the performance of our groups of biomaterials NTBFs. Turning to the second facet, that of the role of NTBFs in industrial dynamics, the analysis clearly showed that the NTBF is one important actor in the evolution of a technological system and in industrial dynamics. It may influence the workings of specific actors and of the technological system as a whole, through a set of interrelated mechanisms. We have contributed to the analytical framework of technological systems through the discussion of functionality, through an elaboration on the concept of connectivity, and by improving the methodology for identifying and delineating a technological system. Implications for management concern three themes: (1) innovation and firm development as collective processes, (2) being embedded versus locked-in, and (3) the need to invest in the system. The two general policy implications are that focus should be on functionality rather than on actors, and that policy initiatives should have a holistic view of functionality. Based on the weaknesses of each region, we pointed to some specific policy measures regarding the provision of input of technological resources, networking and facilitated financing

Prefirm activities within the life science sector

The author examines prefirm activities and firm formation within a subset of the life science sector, namely firms with a core competence in biocompatible materials. In particular, the author scrutinises whether or not prefirm activities are spatially confined, and which mechanisms are involved in such firm-formation processes. Resting the analysis on the empirical example of firms located in Sweden, Ohio, and Massachusetts, the findings indicate that, even though international components are important, the process of firm formation is indeed a geographically delimited activity. In this, experimentation is essential, the direction and volume of the science base may have large impacts, and structural characteristics in the geographical setting are important. The discussion centres on how to spur clustering of firm formation as opposed to mere colocation of new units, where mechanisms include organisational concentration, application interrelatedness, and a spatially confined search process. The firms in the three regions differ: between the firms in Sweden and Massachusetts there are synergies due to geographical proximity and interdependence, knowledge spillovers, and encouragement of innovation within the group of firms, whereas this is not the case in Ohio. Indeed, in Ohio, the mechanisms which are important in creating an innovative cluster do not seem to be as effective.

New Technology-Based Firms and Industrial Dynamics Evidence from the Technological System of Biomaterials in Sweden, Ohio and Massachusetts

The aim of this thesis is to enhance the understanding of the relationship between industrial dynamics and new technology-based firms (henceforth NTBFs). For a population of biomaterials NTBFs in Sweden, Ohio and Massachusetts, we have analyzed two facets of this issue. First, we addressed the process of a firm\u27s establishment, development and performance in relation to the technological system of which the firm is a part. In particular we analyzed (a) pre-firm activities as related to firm development, (b) firm development through network exchanges, and (c) performance as related to connectivity and system functionality. Second, we set out to conceptualize the mechanisms by which new technology-based firms influence the process of industrial dynamics. We found that pre-firm activities pervasively influenced not only the initial formation of a new firm, but to some extent, its further evolution as well. Analyzing the pattern of networking and the associated resource flows (i.e. the connectivity) confirmed the proposition that innovative activity is a collective process, taking place at the interface between the NTBF and its partners. Many of the connections are regional in character, as networks were established in a path-dependent manner. Further, an NTBF develops in the context of three evolutionary co-selective processes: technology evolution, actor functionality and network evolution. As regards firm performance, we found that it was significantly influenced by a number of dimensions of connectivity. In particular, technology-related connectivity proved important. Our analysis also showed that the functionality of a region is influential for the performance of our groups of biomaterials NTBFs. Turning to the second facet, that of the role of NTBFs in industrial dynamics, the analysis clearly showed that the NTBF is one important actor in the evolution of a technological system and in industrial dynamics. It may influence the workings of specific actors and of the technological system as a whole, through a set of interrelated mechanisms. We have contributed to the analytical framework of technological systems through the discussion of functionality, through an elaboration on the concept of connectivity, and by improving the methodology for identifying and delineating a technological system. Implications for management concern three themes: (1) innovation and firm development as collective processes, (2) being embedded versus locked-in, and (3) the need to invest in the system. The two general policy implications are that focus should be on functionality rather than on actors, and that policy initiatives should have a holistic view of functionality. Based on the weaknesses of each region, we pointed to some specific policy measures regarding the provision of input of technological resources, networking and facilitated financing