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We study how the human capital embedded in teams is affected by, and reallocated through, corporate bankruptcies. After a bankruptcy, U.S. inventors produce fewer and less impactful patents. Moreover, teams become less stable. Consequently, compared to inventors that rely less on teamwork, the performance of team inventors deteriorates more. These findings point to the loss of team-specific human capital as a cost of resource reallocation through bankruptcy. Acquisitions by industrial firms and joint mobility of inventors with past collaborations limit these losses, suggesting that the labor market and the market for corporate control help preserve team-specific human capital in bankruptcies. [ABSTRACT FROM AUTHOR]

Public R&D stimulates domestic private and foreign private and public R&D, together enhancing technical change and thereby GDP. In this paper, we evaluate vector-error-correction model (VECM) estimations and simulations of a companion paper in regard to internal rates of return (and related aspects) to additional public R&D of OECD countries and compare them to the macroeconomic literature. We show (i) internal rates of return to public R&D shocks, and (ii) the related payback periods, gain/GDP ratios, and sums of discounted (at 4%) gains. Fourteen of 17 countries show high internal rates of return, short payback periods, and high gains/GDP ratios from positive public R&D shocks if projects are stopped when gains get negative. Three countries show crowding-out effects and require (initial) reductions of public R&D before showing positive results. [ABSTRACT FROM AUTHOR]

Environmental impact reporting has become a lynchpin for global agri-food supply chain decision-making. This importance has become heightened as governing bodies such as the European Union pass traceability legislation in an effort to reduce Scope 3 emissions. Despite this heightened importance, few studies have explored the role of supply chain management software in achieving sustainability goals within the agribusiness sector. This article provides a current perspective on ongoing supply chain and logistics software issues that might restrict the effectiveness of sustainability reporting. We argue that agribusinesses may struggle to achieve sustainability targets effectively without proficiency in supply chain software. This research contributes to the field by offering a nuanced understanding of the technological competencies required for sustainability success in agribusiness. This article highlights the importance of developing and implementing advanced supply chain management software to address the need for enhanced sustainability practices within the agribusiness sector. Using interviews with pre-farmgate and post-farmgate agribusiness employees, we demonstrate how these software skills will likely impact sustainability reporting and governance. Managerial implications also include the need for targeted skill development to facilitate more sustainable agribusiness management practices, as mastering such technological competencies is critical for adhering to evolving global environmental standards. [ABSTRACT FROM AUTHOR]

Based on a database of over 650,000 green public procurement (GPP) contracts, we apply machine learning and text analysis methods to identify GPP. Our study examines the impact of GPP on green innovation using Chinese companies listed on the A-share market. The study has the following findings. (1) GPP significantly promotes green innovation by alleviating financing constraints and incentivizing green practices. (2) Enterprises in the maturity or growth stage, non-heavily polluting firms, and companies in regions with stringent environmental regulations are more likely to benefit from GPP. Additionally, GPP initiatives from local governments, centralized procurement, and university-based programs provide stronger incentives for green innovation. (3) Demand-side GPP and supply-side subsidies for green innovation have coordination effects. Corporate green innovation is positively influenced by the “Demand-side procurement First, Supply-side subsidies Later (DFSL)” and the “Demand-side procurement and Supply-side subsidies Simultaneously (DSS)” policies. [ABSTRACT FROM AUTHOR]

South Korea is considered one of the leading countries in innovation and research and development (R&D), in particular in renewable energy R&D efforts, but it is also one of the more polluting countries. So, understanding the interplay between these variables is of great interest. The main objective of this article is to examine the relationship between carbon dioxide (CO2) emissions, economic growth (GDP), renewable energy consumption (RE), foreign direct investment (FDI), home patents (HP), and foreign patents (FP) in South Korea using data ranging from 1980 to 2018. For this purpose, the autoregressive distributed lag (ARDL) approach and Granger causality tests were employed. Estimates of long-run elasticity point to a positive relationship between GDP and CO2 emissions. FP and RE have a negative influence on CO2 emissions but they have a favorable effect on GDP. FDI and HP have positive impacts on CO2 emissions. Granger causality outcomes demonstrate that CO2 emissions, GDP, RE, and FP have long-term bidirectional causal relationships. In the short-run, there are unidirectional causalities running from FP and FDI to RE and from FDI and HP to GDP. Besides, there is a bidirectional causality between GDP and RE. South Korea should continue to promote renewable energies and facilitate the use of foreign patents, particularly those relating to renewable energies. This will lead to a reduction in its carbon emissions while benefiting its economic growth. [ABSTRACT FROM AUTHOR]

Digital transformation (DX) is complex with many automated parts, underlying integrations and processes that need to fit all together. Tools to support the management of DX activities are, therefore, crucial for every business. However, there are just a few of such tools available these days that can help businesses with the DX management both effectively and comprehensively, but none of them was designed particularly for small- and medium-size enterprises (SMEs) of Vietnam. In this study, we will conduct an overview of recent studies on DX, methods and models for SMEs, and relevant research works regarding information support systems for the management of DX for SMEs. We then propose a novel administrative support system that not only addresses the shortcomings of the current state-of-the-art DX management systems but also meets the requirements of DX for SMEs in Vietnam. In addition to the system design and development, we also implement and benchmark the software product at 11 SMEs in Vietnam (and some results if any).

Purpose: The interplay between individual and collective creativity and its translation into innovation is a critical yet complex challenge in the ever-evolving innovation landscape. This study delves into the intricate relationship between managerial ability, intellectual property rights (IPRs) and research and development (R&D) investments contextualized within the dynamics of leverage, firm life stages and tangibility for pharmaceutical firms in the Asia-Pacific region. By exploring how micro-level factors influence macro-level innovation processes, this study aims to contribute to the broader understanding of creativity and innovation, a theme at the heart of addressing contemporary global challenges. Design/methodology/approach: Econometric methodologies were used to analyse a data set comprising 2,660 firm-year observations spanning the decade from 2011 to 2020. Findings: A key finding was that companies with lower managerial prowess strategically leverage R&D intensity to signal their value to the market and accrue reputational currency. The research unearths a significant positive relationship between managerial ability, IPRs and R&D investment. In environments characterized by strong managerial acumen and robust IPR safeguards, firms exhibit a heightened propensity to allocate resources to R&D endeavours. This underscores the role of intellectual leadership and legal protections in shaping R&D strategies within the pharmaceutical domain. Incorporating firm life stages as a moderating factor reveals that firm maturity fundamentally influences the interplay between managerial ability, IPRs and R&D expenditure. Originality/value: These findings' implications resonate profoundly within policy-making circles and pharmaceutical firms' day-to-day operational strategies, underscoring the pivotal role of intellectual capital and legal safeguards in shaping the future of innovation in the Asia-Pacific pharmaceutical sector. [ABSTRACT FROM AUTHOR]

I examine how the investment and financing of innovation are affected by the contractual allocation of intellectual property rights using a Federal Circuit ruling that strengthened firms' property rights to employee patents. I find that treatment firms' total debt-to-assets ratio and R&D spending increase by 18% and 9%, respectively, as the residual control over patents increases firms' incentives to innovate. These effects are more pronounced when ex ante holdup exposure is high. Furthermore, I find a positive marginal effect of asset complementarity as it limits the decline in employee incentives. Consistently, I show that firms' ex post asset complementarity improves. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

We provide new evidence that disruptions in firms' access to credit during the Global Financial Crisis significantly affected product innovation in the consumer goods sector. We combine highly granular retail scan data with lending data and find that credit-constrained firms introduced fewer new products, those products were less novel, and new products sold less well. Overall, these findings suggest that disruptions to credit markets impair firms' ability to compete for profits through new product offerings. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

While extensive research studies exist on the influence of AI solutions on organizations as a whole, there is a paucity of comprehensive studies examining the adoption of these solutions in product development and subsequent management processes. This article presents an exploratory investigation of the applications, challenges, and determinants of success associated with artificial intelligence (AI) solutions employed in the product development and management processes. To this end, a qualitative thematic analysis is conducted based on twelve in-depth interviews with experts proficient in AI engineering and product management, representing twelve distinct organizations within the Polish IT sector. This article offers insights into four potential applications and expounds on various factors impacting the challenges and success of deployed AI solutions, generating two additional emergent themes. This article delineates practical implications for organizations and product managers and proposes intriguing directions for future research exploring topical areas of study.

The article aims to provide a comprehensive overview of both theoretical concepts and practical applications regarding the transformation of business models in the context of digitalizing the economy. In the current digital landscape, traditional business models may no longer suffice to sustain growth and competitiveness. Therefore, there is a pressing need to identify and adopt novel approaches that leverage digital technologies to their fullest potential. By examining the latest trends and emerging paradigms in economy’s, the article aims to re-think their strategies and embrace digital transformation proactively. This involves not only incorporating technology into existing operations but also reimagining the entire business model to capitalize on new opportunities and address evolving consumer behaviors. Furthermore, the article aims to provide practical insights and actionable recommendations for businesses looking to embark on their digital transformation journey.

The use of new technologies should create new value for all stakeholders in the healthcare system. This article explores the transformative impact of new technologies in e-health, focusing on enhancing patient empowerment and healthcare delivery. It underscores how artificial intelligence (AI) and other innovative technologies may redefine service standards, expand functionalities, boost clinician knowledge and competencies, and relieve clinicians’ workload, thereby enabling broader and more specialized healthcare services. Through a comparative analysis of technology applications in various medical sectors, the study proposes a new, original classification of new e-health technologies according to benefits to the main healthcare stakeholders – patients, clinicians, and the healthcare system itself. The methodology includes bibliographic research and a study of selected cases of technology implementations, discussing both theoretical and practical implications for medical organizations. The classification of new e-health technologies that we propose herein a clear framework for understanding the various ways in which these innovations can be implemented to maximize their benefits across different sectors of the healthcare industry.

The emergence and evolution of engineering biology, and its potential to address multiple global challenges is associated with the rise of biofoundries. These innovation intermediaries are facilities that employ advanced automation and computational analytics to accelerate engineering biology applications. Yet, for biofoundries to fully achieve their promise of generating applications that address grand societal challenges, they need to meet three key challenges: translation of research technology and its commercialization, attention to sustainability, and responsible innovation. Using web content analysis and interviews, this paper explores the functions and capabilities undertaken by existing public biofoundries, the extent to which they address these three challenges, and opportunities and models for enhancement. We also probe the roles undertaken by three other contrasting types of innovation intermediaries to identify practices and opportunities for integration and partnering with public biofoundries. We find that public biofoundries exhibit relatively strong capabilities for research translation, whereas efforts toward sustainability and responsibility are generally less prominent. For biofoundry enhancement, we propose an organisational model based on external partnering where public biofoundries are positioned as intermediaries within regional innovation systems. The framework put forward is reproducible and could be used in other contexts for assessing innovation intermediary organisational functions and capabilities toward meeting societal challenges. [ABSTRACT FROM AUTHOR]

The risk of failure in innovation projects affects organisational behaviour and the performance of firms. This study develops a theory of errors in innovation project-level failure. Error is a set of faults that generates deviations in phases of the R&D process in projects, decreasing the expected results. From a systemic perspective, innovation failure in a project is due to a set of errors that generates a negative outcome. The proposed theory clarifies the general determinants of innovation failure in projects that are due to errors in design, execution and market orientation. Case studies in the drug discovery industry and pharmaceuticals validate the consistency of the proposed theory, giving examples of errors in projects leading to innovation failures. The payoff matrix of success/failure occurrences predicts that the probability of failure in innovation projects can double by setting a difficult goal compared to an easy one. Inductive implications of the proposed theory are that organisations reduce innovation failure in projects with better adaptedness to changes that minimise errors and learn from them. The proposed theory can guide R&D managers, designers, etc. in detecting critical errors in the R&D process to apply strategies of problem solving based on a winning approach by learning from errors that lead to innovation failure in projects to enable the organisation to adapt, take advantage of important opportunities and cope with consequential environmental threats for achieving goals and sustaining the competitive advantage in turbulent markets. [ABSTRACT FROM AUTHOR]

This paper studies research and development (R &D) for product innovation of firms faced with "product life cycles." We represent the concept of product life cycles with bounded revenue and profit functions and describe R &D for product innovation as an activity to control the "birth rate of a new product" (i.e., the probability of product innovation). We then derive the optimal level of R &D, corresponding to the optimal birth rate of a new product, and show that the growth rate of the firm's expected total revenue converges to the optimal birth rate of a new product in the long run. [ABSTRACT FROM AUTHOR]

The main objective of this study is to seek the robust and significant determinants of National Innovative Capacity in technologically advanced economies. In this era of knowledge-based economies having rapidly changing technology, innovation and digitization, it is very important to examine what determines innovation. For this purpose, the role of Information and Communication Technology, Exposure to external technology, R&D expenditure, Human capital, Governance and financial deepening in shaping the national innovative capacity is examined empirically. The aim is to reflect the factors that influence innovation and knowledge creation activities at national level. The study uses a panel of 13 technologically advanced countries with the aim to learn from the best practices. The fixed effect with robust standard errors estimation technique is used for estimation of the model over the period 1996–2015. Moreover, the innovative output index (IQ) is estimated to judge and analyze the national innovative capacity of selected countries. The results suggest that the core variables of estimated model remained significant with expected sings and yielded positive impact on dependent variable. Based on the results, it is suggested that the developing economies should make substantial investments in above mentioned factors in order to go along the path similar to OECD advanced economies. [ABSTRACT FROM AUTHOR]

Although the relationship between firm R&D and performance has been analysed in previous literature from different viewpoints, few studies have analysed how the board of directors, one of the main governing bodies with responsibility at strategic level, may affect this relationship. In particular, previous works have studied some characteristics related to the monitoring role of the board. However, it is also likely that access to external information and resources crucial for firms that want to innovate and improve their performance might be facilitated through the links held by interlocking directors (who also serve as directors in other firms). This paper aims to shed light on this topic by providing the first research focusing on how a board's provision of knowledge and advice proxied by the percentage of interlocking directors may moderate the firm R&D-performance classical relationship. Using a sample of 106 Spanish listed companies in the period 2008–2019, GMM analyses show that R&D investments have a positive effect on firm value, but a larger number of interlocking directors may diminish this positive effect. Our results suggest that firms should be cautious about increasing the proportion of interlocking directors. A larger number of such directors may affect the flow of information within the board and, consequently, positive interactions between the board, firm innovation and performance. In addition, we recommend that policy makers should reinforce incentives to increase firm innovation as it seems to increase firm value and, when drafting corporate governance codes, should reflect in more detail on the role played by interlocking directors. [ABSTRACT FROM AUTHOR]

Project management and project portfolio management (PPM) foster competitiveness by facilitating the implementation of organizational strategy. Although organizations often struggle to develop PPM capabilities, the academic community does not have an in-depth understanding of the conditions for successfully developing these capabilities. In response, we conducted a multiple-case study with 50 interviewees to develop a theoretical model of the PPM capability-building process. This model is built on the notion of organizational sensemaking and identifies aspects that comprehensively explain why it usually takes so long to develop PPM capabilities. We conceptualize the PPM capability-building process as one that is strongly influenced by (1) the effects of structural rearrangements, (2) the appropriate use of external resources during that process, (3) the role of executive support and legitimization, (4) episodes of regression, and (5) the need for internalization and habitualization. In addition, we provide starting points for explaining organizational capability building in more general terms. [ABSTRACT FROM AUTHOR]

We study how young and small firms' R &D investment responds to the tightening of credit conditions. Using detailed R &D information on over 25,000 French companies, we show that financially constrained firms were relatively more likely to scale back their R &D activities during the European sovereign debt crisis (2010–2012), in particular those related to fundamental research. We then exploit variation in the sovereign risk exposure of firms' main bank during the sovereign debt crisis as an exogenous credit supply shock. Results indicate that firms related to banks with larger exposures to risky sovereign debt decreased R &D expenditure by more relative to other firms following the crisis. Our findings indicate that credit supply shocks have significant impact on firms' R &D activities, especially for SMEs and young firms, and highlight an important transmission channel of sovereign risk to firm innovation and productivity. Plain English Summary: We study research and development (R &D) activity by small and medium sized enterprises (SMEs) in France. We find that young and small firms reduced R &D investment, particularly in fundamental research, when faced with limited access to bank credit and higher borrowing costs. In terms of innovation and industrial policy, our results suggest that public support to R &D for small and young firms is decisive, particularly during periods of financial crisis. [ABSTRACT FROM AUTHOR]

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Digital transformation is changing the innovation landscape, not only of firms but also at the macro level. This study aims to analyse how configurations of European Union countries’ innovation inputs that lead to innovation outputs are affected by the levels of national digital transformation. A novel configurational moderation approach is adopted to assess the impact of digital transformation on the 27 EU countries’ national systems of innovation (NSI). Results showed that the presence of all innovation inputs is a sufficient configuration for the presence of high innovation outputs, while three different configurations were found to be sufficient for its absence. The configurational moderation analysis revealed that digital transformation effectively moderates the arrangement of innovation inputs leading to the presence of high innovation outputs, where the human capital and research pillar loses its importance. The results of this study can be understood as benchmarks, against which less innovative countries may compare and develop their NSI. They also shed light on the specific configurations followed by each EU country in achieving innovation outputs, which could be an input for Union-based policies directed at the development of concrete innovation pillars in specific Member States. Furthermore, findings enlighten international business managers about the strengths and weaknesses of EU countries’ NSI, which may aid them in their internationalisation decisions.

Government intention to spur innovation can result in the proliferation of low-quality patents, which is especially pronounced in countries with a low level of government accountability. This study examines the paradoxical effects of government-funded innovation in weakly institutionalized environments. I offer a game-theoretic model, in which the government has a stake in technological development and invests in research and development, although this encourages the growth of low-quality patents. Using Russian patents data between 1998 and 2016, I illustrate this mechanism by demonstrating the causal impact of Russia's government policy, which resulted in a simultaneous increase in the number of patents and a decrease in the absolute number of high-quality patents in the patent pool. This study provides a theoretical background for evaluating the impact of political incentives for investing in the creation of new technologies in the technological development of countries.

This study compares hindering and fostering factors for SMEs in China and Sri Lanka in their internationalization efforts through e-commerce. The study uses qualitative research methods to examine how SMEs in both countries utilize e-commerce platforms for global expansion. Narrative and thematic analysis techniques focus on manufacturing sector SMEs actively engaged in global expansion through e-commerce. Purposive sampling is used to select participants. The findings reveal shared patterns and distinctive characteristics in the digital transformation of SMEs. Chinese SMEs benefit from product popularity and advanced technologies, while Sri Lankan SMEs face challenges accessing financial resources and advanced technologies. Perspectives on innovation and regulatory/cross-cultural considerations vary. Supportive government policies and infrastructure are crucial for SME internationalization. The research provides insights for policymakers, researchers, and practitioners to enhance SME development and promote cross-national collaborations in the digital era.

This study advances our understanding of knowledge spillover of innovation, putting a firm's own R&D investment and knowledge spillovers to a competitive test. We use three matched databases of 15,430 firms in the United Kingdom (UK) during the period 2002–2014 in order to demonstrate that knowledge spillovers emanating from R&D investment within and between industries have different effects on innovation compared to imitation and that the ability to access spillover is conditional on the firm's own investment in R&D. This study furthers our understanding in two different ways. Firstly, it supports the two faces of the R&D story. Second, it demonstrates that the relationship between knowledge spillover and firm innovation depends on the firm's own investment in R&D and reveals the positive effects of knowledge transfer as well as factors limiting the use of spillovers such as industry competition, transaction costs, and eventually innovation type. [ABSTRACT FROM AUTHOR]