Competition and Innovation: ICT- and non-ICT-enabled Product and Process Innovations

The reason for contradictory predictions of the models studying the impact of competi¬tion on innovation is the varying assumptions with respect to competition or innovation type. Thus, we study how the impact of competition changes with different types of innova¬tive Output. In particular, we distinguish between non-ICT - and ICT-enabled product and process innovations. To allow for such flexibility, we apply Bayesian inference techniques and use direct measures of innovative that control for the heterogeneity of innovation Output. Our analysis provides evidence that supports the hypothesis that the effect of market com¬petition on innovation is not alike for all types of innovation. We observe an inverse U-shape relationship between competition and non-ICT-enabled and a clear U-shape dependency for ICT-enabled innovations. However, the results become considerably weaker, once industry effects are taken into account. Thus, although the impact of competition on innovation varies with the type of innovation, other factors seem to have a stronger impact on the incentives to innovate.Competition, innovation, Information and communication technologies

The Impact of E-Procurement on the Number of Suppliers: Where to Move to?

This paper examines how electronic procurement influences the organization of economic transactions. It seeks evidence for ICT-induced changes in how companies organize their activities and whether ICT lead to more competitive and transparent markets. Testing the relationship between the effect of electronic procurement on procurement cost and sourcing strategy, I provide new evidence that electronic procurement leads to more market transactions. This leads to the conclusion that electronic procurement increases market transparency, lowers search and supplier switching costs and improves the management of supply chain and contradicts the predictions that ICT will lead to a dominance of network-like organizational form and an increasing reliance on hybrid forms of organizing economic transactions. Two implications emerge from these results. The first one is relevant for companies engaging in ICT projects. ICT combined with changes in business strategy leads to a reduction of market transaction costs and, as a result, opens up new possibilities in terms of how business activities can be organized and/or how to structure competition in upstream markets. This effect of new technologies is of clear benefit to companies successfully implementing and using new technologies. The second implication is of great importance for companies whose customers implement ICT to intensify competition among suppliers. Changing environment forces them to adapt to new market conditions and look for new ways of maintaining profitability.information technology and firm boundaries, markets vs. hierarchies, sourcing strategy, electronic procurement

Competition and Innovation: ICT- and non-ICT-enabled Product and Process Innovations

The reason for contradictory predictions of the models studying the impact of competi¬tion on innovation is the varying assumptions with respect to competition or innovation type. Thus, we study how the impact of competition changes with different types of innova¬tive Output. In particular, we distinguish between non-ICT - and ICT-enabled product and process innovations. To allow for such flexibility, we apply Bayesian inference techniques and use direct measures of innovative that control for the heterogeneity of innovation Output. Our analysis provides evidence that supports the hypothesis that the effect of market com¬petition on innovation is not alike for all types of innovation. We observe an inverse U-shape relationship between competition and non-ICT-enabled and a clear U-shape dependency for ICT-enabled innovations. However, the results become considerably weaker, once industry effects are taken into account. Thus, although the impact of competition on innovation varies with the type of innovation, other factors seem to have a stronger impact on the incentives to innovate.Competition, innovation, Information and communication technologies

OSS Adoption: Who is Leading and Why?

Parallelsacht. "OSS Adaption" war Hauptsachtitel der 1. Version, die 14 Tage lang im Netz stand. It is no secret that open source software (OSS) is gaining ground, yet the drivers for OSS adoption still seem rather unclear. This report aims to compare various industries within select countries in the EU and tries to explain their OSS adoption patterns. The results indicate that companies in Poland, the Czech Republic and Hungary are leading OSS adopters. Further, it was found that company adoption of OSS is largely dependent on in-house IT development and expertise. The focus on internal development and capacities is often characteristic of larger firms, which is corroborated by our findings. Finally, the analysis showed that companies tend to OSS, the higher their requirements for open standards and interoperability.Open source software, Adoption: Internal IT capacity, User innovation

Competition and Innovation: ICT- and non-ICT-enabled Product and Process Innovations.

The reason for contradictory predictions of the models studying the impact of competi¬tion on innovation is the varying assumptions with respect to competition or innovation type. Thus, we study how the impact of competition changes with different types of innova¬tive Output. In particular, we distinguish between non-ICT - and ICT-enabled product and process innovations. To allow for such flexibility, we apply Bayesian inference techniques and use direct measures of innovative that control for the heterogeneity of innovation Output. Our analysis provides evidence that supports the hypothesis that the effect of market com¬petition on innovation is not alike for all types of innovation. We observe an inverse U-shape relationship between competition and non-ICT-enabled and a clear U-shape dependency for ICT-enabled innovations. However, the results become considerably weaker, once industry effects are taken into account. Thus, although the impact of competition on innovation varies with the type of innovation, other factors seem to have a stronger impact on the incentives to innovate.JRC.DDG.J.4-Information Societ

Estimating investments in General Purpose Technologies: The case of AI Investments in Europe

In spite of a large interest in General Purpose Technologies, it is unclear how much economies invest in their development and diffusion. For example, various sources provide various figures of investments in Artificial Intelligence (AI). This constantly blurs the understanding of the AI-driven revolution among policy makers and business leaders and constraints informed decision making. The current report presents an original and comprehensive methodology to estimate AI investments. It rests on three assumptions: First, it considers AI as a general-purpose technology (GPT). Second, it includes not only investments in the core AI technology, but in complementary assets and capabilities necessary for its adoption. Finally, the methodology recognises different roles that the public and private sectors play in the process of AI creation and implementation. Using this approach, AI investments in Europe are estimated.JRC.B.6-Digital Econom

The Top World R&D-investing Companies from the ICT Sector: A Company-level Analysis

This report analyses R&D expenditures by top R&D-investing companies from the ICT sector, for the period of 2005-2008. It focuses on the distribution of R&D investments by firms in specific ICT sub-sectors from the five main world regions, paying special attention to R&D investments by ICT companies from the EU. The relationship between R&D growth and company sales growth is also addressed. The analysis suggests that although EU ICT sector companies make very substantial R&D investments, as an aggregate they invest less in R&D than companies from the US or Japan. This is, however, not necessarily because individual US companies are more R&D intensive than EU ones but more because of the presence of a large number of top R&D-investing ICT sector companies from the US. EU companies’ R&D expenditures are concentrated in the Telecom Equipment and Telecom Services sub-sectors, whereas US, and to some extent, Japanese companies show a strong presence in IT Components, Computer Services, and Telecom Equipment. Worldwide, the most important sub-sector in terms of R&D investment is IT Components, which accounts for over one third of global R&D investments in the ICT sector. In the considered period, average R&D and sales growth rates were 16% and 14% respectively, for the sample of analyzed companies.JRC.DDG.J.4-Information Societ

A framework for assessing innovation collaboration partners and its application to BRICs

We develop a framework for assessing innovation collaboration partners. Based on the studies explaining the internationalisation of inventive activity, we identify four elements relevant as drivers of innovation collaboration. These elements include inventive capacity, technological specialization patterns, openness to international innovation collaboration and economic potential of technology. In order to make the framework operational, we propose a set of patent-based indicators that capture the relevant elements. This way the proposed framework serves as a tool to both assess the potential of inventive collaboration and to anticipate benefits of such collaboration. In a second step, we apply the framework to analyse the attractiveness of BRIC countries as potential partners for innovation collaboration. Our analysis shows that BRICs do not only differ in terms of inventive performance, but also in terms of the openness to international collaboration or the economic potential of technology developed by these countries.JRC.J.3-Information Societ

The Global R&D Network. A network analysis of international R&D centres

A firm's decision to establish an R&D centre in a specific location creates externalities affecting other firms and, thus, a random distribution of location choices is unlikely. Expecting that the global distribution of R&D centres fulfils the criteria of a complex network, we apply social network analysis to study the locations of international R&D centres and the relationships between the countries owning and hosting them. We analyse the characteristics of the global R&D network and identify its core members. Further, we include network indices in an empirical analysis of the R&D internationalisation determinants. We find that a country's position in the network, which does not necessarily coincide with its geographical or cultural proximity to other countries, has a significant impact on the formation and intensity of R&D linkages between countries. We provide policy implications addressing the challenges emerging from the increasing internationalisation and network of R&D.JRC.J.3-Information Societ

International Protection of ICT Intellectual Property and Internationalization of ICT R&D

This report looks at foreign ICT patent filings and the dynamics of ICT R&D internationalisation. The number of foreign ICT patent applications is increasing. This process is, however, restricted to a few countries. Applicants from Japan, the US and South Korea file the most foreign patent applications. A very high level of concentration can also be observed for the destination of foreign patent filings. The main destinations of international ICT patent filings are the USPTO, EPO and the Chinese Patent Office. Although Europe represents an important source of innovation and an attractive technology market, European technology owners are relatively inactive in protecting their IP in foreign markets. Considering ICT R&D internationalisation, its level is also increasing. In this context, the emerging roles of Asian countries, such as South Korea, China and India, are of particular interest. Today, Asia is the biggest partner of the US in technological collaboration. In contrast, although European inventors are very attractive as a technology development partners for foreign partners, they are less successful in sourcing technology from abroad to complement and combine with their own domestic resources.JRC.J.3-Information Societ