Showing papers in "International Journal of Technology Management in 2017"
TL;DR: In this paper, the authors present a roadmap of robotics, which covers key aspects of industrial and service robotics, discuss technology foresight insights and interlinkages to robotics, and identify three critical technology roadmaps: the technological future of robots, digitalization and ICT technologies.
Abstract: In this article we discuss the futures of work and robotics. We evaluate key future trends in the field of robotics and analyse different scenarios regarding the futures of human beings and work life. Subsequently, we present a roadmap of robotics, which covers key aspects of industrial and service robotics, discuss technology foresight insights and inter-linkages to robotics, and identify three critical technology roadmaps: the technological future of robotics, digitalisation and ICT technologies. Finally, we analyse economic, social, and political key challenges of the digital transformation of work and labour policy in the European Union in general and against the backdrop of the European robotics strategy in particular.
45 citations
TL;DR: In this article, the authors investigate how a set of small and medium sized enterprises (SMEs) can engage in business model development within a regional innovation ecosystem, and find key drivers and challenges that these companies encountered while creating and capturing value both for them and the ecosystem at large.
Abstract: We investigate how a set of small and medium sized enterprises (SMEs) can engage in business model development within a regional innovation ecosystem. Based on a case of Danish manufacturing SMEs that developed their local ecosystem in an innovative automation project, we find key drivers and challenges that these companies encountered while creating and capturing value both for them and the ecosystem at large. While the value creation process is enabled by common goals and financial support, companies need to balance their core activities with their commitment to the joint initiative. Moreover, ecosystem development is centrally dependent on the value-capture process, which also takes place at the inter-organisational level. Such open innovation process implies a purposive management of knowledge flows at the level of the innovation ecosystem that fits a multi-layered structure of the business model. Our findings also highlight the underlying connection between the business model and ecosystem concepts.
44 citations
TL;DR: It is argued that outward investment to acquire strategic assets abroad at the scale the authors observe today is a recent addition to the instrument set deployed by emerging economies for development.
Abstract: International knowledge flows and innovation are becoming ever more important to the competitiveness of multinational corporations. Emerging market multinationals (EMNCs) in specific are deploying increasingly activist measures to harness foreign sources of knowledge and innovation as a strategy to build up their firm-specific resources and capabilities. In the following, we argue that EMNCs' strategic asset-seeking investments constitute a particularly interesting class of investments, as it presents important challenges to international business theory, firm strategy and public policy. We argue that outward investment to acquire strategic assets abroad at the scale we observe today is a recent addition to the instrument set deployed by emerging economies for development. We proceed to discuss how this type of investments does not sit well with mainstream international business theory and propose ways in which this disagreement can be reconciled through recognition of other EMNC advantages, particularly abilities to leverage country-specific assets, and possession and development of dynamic capabilities. Finally, we identify a set of core themes in the recent literature on strategic asset-seeking investments and relate them to the contributions in the current special issue. We conclude with outlining an agenda of future research.
33 citations
TL;DR: Not only the importance of RDI cooperation networks but also how the consequent commercialisation of new products and services generates positive consequences for economic growth is demonstrated.
Abstract: This paper sought to analyse the dynamics underlying university technology transfer and commercialisation mechanisms. We adopt a qualitative research methodology, which incorporates different case studies, interviews and applied research of the actors involved in universities, business incubators and start-ups. While limited to three case studies, this paper does highlight the technology transfer mechanisms and the support provided to commercialisation, including the identification of the difficulties and opportunities present within the context of cooperation networks. By surveying those running incubators and incubator company managers in conjunction with analysis of research, development and innovation (RDI) cooperative projects backed by European funding, we were able to gain insights into the different processes of transferring and commercialising technology. Falling within the framework of the third component of universities' mission, this article demonstrates not only the importance of RDI cooperation networks but also how the consequent commercialisation of new products and services generates positive consequences for economic growth.
30 citations
TL;DR: The results demonstrate that NTBFs that take more than five years to enter the international market capitalise on their competence for innovation and abilities in international marketing, in the internationalisation process.
Abstract: This paper offers an analysis of the factors influencing the accelerated internationalisation of new technology-based firms (NTBFs) from emerging economies. This type of firm is typically called 'born global', and they have been reported primarily in high-tech sectors. Existing international business (IB) theories have focused consistently on NTBFs from developed countries, however NTBFs from emerging markets remain under-studied. A survey was applied to small Brazilian NTBFs. The results indicate that NTBFs that have an entrepreneur, or a group of executives with international management skills, are more likely to have an accelerated internationalisation. In contrast to previous research in the field, the results demonstrate that NTBFs that take more than five years to enter the international market capitalise on their competence for innovation and abilities in international marketing, in the internationalisation process. Therefore, this research contributes new perspectives on studies on NTBFs from emerging markets.
25 citations
TL;DR: The evidence from this empirical study suggests that stakeholder integration in service systems creates interdependencies between stakeholders and implicates that indirect ways of stakeholder Integration have to be taken into account for project and stakeholder management.
Abstract: This paper explores the integration of internal and external stakeholders in service innovation. Building upon the co-creative paradigm, the resource and knowledge integration of stakeholders in dynamic and complex service systems is gaining importance. This case study analyses the practice of stakeholder integration in a service innovation project at a German provider for medical appliances. We show that stakeholder integration is realised in the modes of reactive integration for the majority of stakeholders, whereas mutual integration is realised with members of the organisation, only. Customers are integrated as reactive resources throughout the innovation process, also informally and indirectly. The evidence from this empirical study suggests that stakeholder integration in service systems creates interdependencies between stakeholders and implicates that indirect ways of stakeholder integration have to be taken into account for project and stakeholder management.
22 citations
TL;DR: Two key findings are found: more intense participation in the ecosystem is associated with higher business model differentiation, sophistication, and extent of change, and entrepreneurs participating more intensely in thecosystem report a greater breadth of benefits.
Abstract: Technology entrepreneurs are launching and growing new businesses within business ecosystems, but little is known about how ecosystem participation impacts new venture business models. This research is an exploratory study of new venture business models within Lead To Win - a business ecosystem developed as a 'job-creation engine' for Canada's capital region. The three-phase research design is comprised of: 1) a field study of the Lead To Win field setting; 2) a multiple case-study of participating new ventures launched by six founders; 3) development of evidence-based propositions relating ecosystem participation and new venture business models. There are two key findings. First, more intense participation in the ecosystem is associated with higher business model differentiation, sophistication, and extent of change. Second, entrepreneurs participating more intensely in the ecosystem report a greater breadth of benefits.
18 citations
TL;DR: In this article, the authors explore how business models relate to IP protection mechanisms for value capture and derive a business model protection framework based on a sample of 24 cases, and reveal that the choice of IP protection is contingent on the applied business model.
Abstract: As an overarching concept a business model describes how a firm creates and captures value for itself, its customers, and its partners. Although research has highlighted the importance of value creation and capture of business models, it primarily focused on the value creation mechanisms and neglected aspects of value capturing: until to date, little is known about how firms attempt to protect their business models from competition, which is a critical component of value capture. Drawing on a sample of 24 cases, we explore how business models relate to IP protection mechanisms for value capture and derive a business model protection framework. Our empirical study reveals that the choice of IP protection is contingent on the applied business model. Whereas some razor and blade business models are characterised by a high degree of both formal and informal protection, firms operating franchising business models put higher emphasis on informal protection strategies. Firms running the pay-per-use business mode...
18 citations
TL;DR: In this article, the authors examined whether and how university knowledge affected industrial R&D in the period when university-industry collaborations encountered institutional barriers in Japan and found that university research in a region positively affected valuable innovations in the region, measured by US patents filed by the Japanese firms, with a five-year lag.
Abstract: This study examined whether and how university knowledge affected industrial R&D in the period when university-industry collaborations encountered institutional barriers in Japan. Estimation results of the regional knowledge production function using panel data (1983-1997) revealed that university research in a region positively affected valuable innovations in the region, measured by US patents filed by the Japanese firms, with a five-year lag. University-industry joint research did not act as a conduit of university spillover, which suggested that informal channels, such as voluntary transfer of academic inventions in return to donation, worked in the pre-reform period. Intermediaries as part of regional innovation policy, such as local public technology centres, increased valuable innovations not through intermediation of university-industry joint research, but through technology diffusion, such as technical consultation.
18 citations
TL;DR: The purpose of this review is to survey and consolidate the key findings and point out the need for moderators in studying the relation between technology sourcing and innovation performance in the field of technology management.
Abstract: In seeking to strategically boost their innovation capabilities, technology-driven companies can mobilise internal as well as external sourcing strategies. A number of researchers in the field of technology management have assessed the impact of these two organisational choices on innovation performance. Empirical findings are striking but relatively scattered and give the impression of diverse and sometimes contradictory conclusions. The purpose of this review is therefore to survey and consolidate the key findings we can draw from this stream of empirical research. In particular, we point out the need for moderators in studying the relation between technology sourcing and innovation performance. Going forward from this current state of affairs, we suggest future avenues of research on innovation performance in the field of technology management.
16 citations
TL;DR: The modern MNE has to be a 'meta-integrator', able to leverage knowledge within and between its different constituent affiliates, which requires efficient internal markets and well-structured cross-border hierarchies, and needs to strengthen their ownership advantages to achieve internal embeddedness.
Abstract: The modern MNE has to be a 'meta-integrator', able to leverage knowledge within and between its different constituent affiliates, which requires efficient internal markets and well-structured cross-border hierarchies. The current generation of EMNEs need to strengthen their ownership advantages to achieve such internal embeddedness, which are hard to acquire, and must be learnt. I frame this discussion in the ongoing debate about the nature of ownership advantages. The ability to be competitive in an era of globalisation depends as much on the EMNE's technological assets as it does on its ability to achieve economies of common governance. The EMNE has to be able to promote internal knowledge flows, both to and from the parent, as well as between affiliates located in different countries. This is essential to achieve organisational, scale and scope economies.
TL;DR: It is demonstrated that OFDI is positively related to innovation performance and is stronger when foreign firms have acquired an ownership interest in an EM MNE and when they have higher R&D intensity.
Abstract: This study investigates whether and to what extent EM MNEs employ OFDI for knowledge-seeking and knowledge-integration purposes to improve their innovation capability at home. Extending previous studies that have identified the knowledge-seeking motives and also provided some evidence for their validity, our study aims to examine how such OFDI can benefit the innovation performance of EM MNEs at home. Using survey data from a sample of manufacturing firms in China, we demonstrate that OFDI is positively related to innovation performance. We also find that the positive relationship between OFDI and innovation performance is stronger when foreign firms have acquired an ownership interest in an EM MNE and when they have higher R&D intensity. Finally, theoretical and managerial implications are discussed.
TL;DR: In this article, the authors argue that entrant firms may be more prone to act entrepreneurially, i.e., more inclined to proactively create or transform markets and build ecosystems, and that this capability is sometimes critical in order to succeed in a technological transition.
Abstract: Why do entrant firms sometimes gain the upper hand under conditions of discontinuous technological change? Previous research on this topic has either looked at the role of established competencies and/or firm incentives to invest in a new technology. In this paper we explore an alternative explanation. Drawing upon evidence from the ongoing transition from CCTV to digital, IP-based video surveillance, we argue that entrant firms may be more prone to act entrepreneurially, i.e., more inclined to proactively create or transform markets and build ecosystems. As new technologies frequently require altered behaviour among customers and stakeholders, this capability is sometimes critical in order to succeed in a technological transition. Our contribution therefore lies in pointing out that not only may incentives to allocate R&D resources differ among entrants and incumbents, firms might also have different incentives to engage in entrepreneurial activities of creating or transforming markets.
TL;DR: It is useful for government and university authorities to formulate guidelines and policies to implement and reinforce the concept of entrepreneurial universities, in order to extend debates concerning the creation of entrepreneurship ecosystem.
Abstract: In recent times, the propensity to establish a reciprocal association between universities and industries through an interchange of knowledge is becoming greater. In developing countries, the perception of academicians in entrepreneurial universities, however, is mixed. This research aims to satisfy a clear gap in the main field of research whereabouts only recent studies analysed the challenges imposed by knowledge management. The main objective looks into the factors contributing towards advancement of entrepreneurial university paradigms in a developing country, Malaysia. This study carried out a survey among academicians who are currently employed in 15 public and private universities. The majority of the respondents believe their university contains strong elements of entrepreneurism. With respect to previous literature, this study is useful for government and university authorities to formulate guidelines and policies to implement and reinforce the concept of entrepreneurial universities, in order to extend debates concerning the creation of entrepreneurship ecosystem.
TL;DR: The authors combines Hofstede's theory of cultural differences with exploration/exploitation theory in a culture, exploration, exploitation (CEE) model and uses the model to organize existing theory and research on the relationship between national culture and innovation.
Abstract: This paper combines Hofstede's theory of cultural differences with exploration/exploitation theory in a culture, exploration, exploitation (CEE) model then uses the model to organise existing theory and research on the relationship between national culture and innovation. A literature review found near consensus on the theory about culture and exploratory innovation as captured in the CEE model but mixed empirical support. Future research on culture and innovation should be designed to account for the exploratory/exploitative distinction in both theory and methodology. The dearth of research on exploitative innovation and on how cultural differences are enacted in the operational processes of organisations should be remedied. The CEE model with it is widely agreed upon theoretical propositions drawing upon two highly influential theories provides an improved theoretical platform for ongoing research on culture and innovation.
TL;DR: A case study of Thales Alenia Space, a leader in the aerospace industry, and its ecosystem partners is presented and a counterintuitive insights about ecosystem management are made.
Abstract: In this paper, we focus on how focal firms influence business ecosystem stability through patent management. We present and discuss a case study of Thales Alenia Space, a leader in the aerospace industry, and its ecosystem partners. We make two counterintuitive insights about ecosystem management. First, a focal firm can use patents in a new way in order to ensure the stability of its ecosystem. Second, patent licensing facilitates an inverted pattern of knowledge creation and commercialisation between large and small firms, in which small firms are able to commercialise innovations created by large firms in unexpected markets. Furthermore, this article contributes to the literature on patent management by providing new evidence on the external leveraging of knowledge.
TL;DR: The findings indicate that firms benefit from research partnerships with and services from universities, when they also seek knowledge from other counterparts and when they possess higher levels of internal absorptive capacity.
Abstract: University-firm links have stimulated a lot of attention. In fact, with the increasing knowledge and technologies created within university laboratories, firms have identified business opportunities by accessing the knowledge developed by external actors and commercialising universities' inventions. In this case, they adopt a knowledge acquisition strategy to foster innovation, reducing risk and exploiting new technological opportunities. This underlines a shift in the role of universities from education providers to scientific knowledge and technologies producers in the current knowledge-driven economy. In this context, the main goal of this paper is to assess the impact of knowledge acquisition on firms' innovation commercialisation, with a specific focus on knowledge developed by university scientific research. By applying hierarchical regressions on a sample of 185 Italian knowledge-intensive firms (KIFs), the findings indicate that firms benefit from research partnerships with and services from universities, when they also seek knowledge from other counterparts and when they possess higher levels of internal absorptive capacity.
TL;DR: The paper found that the inverted-U shaped relationship between export intensity and product innovation is strengthened by more intense competition in the home market.
Abstract: Recent studies have found contradictory evidence about the relationship between a firm's exporting intensity and its success in product innovation. Data on 6,197 firms in the Chinese auto industry were analysed to demonstrate that the relationship is actually inverted-U shaped, at least in that specific context. Exporters in emerging economies can be technology and market leaders in their domestic markets, but internationally they tend to be technology and market laggards. When the export intensity is low firms that also export can benefit from knowledge gained in overseas markets, improving their product innovation. When the export intensity is very high, focused exporters tend to focus on the overseas markets where they may not have competitive advantages in product innovation, developing fewer product innovations. Furthermore, the paper found that the inverted-U shaped relationship between export intensity and product innovation is strengthened by more intense competition in the home market.
TL;DR: It is outlined that knowledge breadth is curvilinearly related (inverted U-shaped) to the likelihood that academic patents are bought by firms, whereas knowledge maturity has a negative effect.
Abstract: The present research examines how to improve the effectiveness of markets for university inventions from a demand side perspective. Specifically, it is examined whether and how the likelihood that university patents are purchased by companies is dependent upon the characteristics of patents' underlying knowledge. Two knowledge characteristics are analysed, i.e., knowledge breadth and knowledge maturity. Furthermore, the moderating effect of the level of scientific knowledge is further considered. On the basis of a sample of 1,222 university patents related to the biotechnology sector and registered at the US Patent and Trademark Office, this study outlines that knowledge breadth is curvilinearly related (inverted U-shaped) to the likelihood that academic patents are bought by firms, whereas knowledge maturity has a negative effect. Moreover, the level of scientific knowledge positively moderates the influence of knowledge breadth when it is at a low/moderate level, while it exerts a negative moderating effect when knowledge breadth is at a high level. Instead, the effect of knowledge maturity becomes stronger when university patents are based upon scientific knowledge.
TL;DR: It is argued that the length of time that firms spend in a science park affects their local knowledge network, and this study provides new insights about the role of science parks in both increasing their innovative capacity and promoting the exchange of knowledge among co-located firms.
Abstract: This paper analyses the effect of the evolution of local knowledge networks on the innovative capacity of firms co-located. Using a network dynamic approach, this paper argues that the length of time that firms spend in a science park affects their local knowledge network. By the identification of three stages of local development-incubation, growth and maturity-, this study provides new insights about the role of science parks in both increasing their innovative capacity and promoting the exchange of knowledge among co-located firms. In this sense, science parks have been increasingly considered as a nurturing environment for business start-ups and lead to the development of growth-oriented firms, not being a consensus about how the length of time the firm spends in the park may affect these benefits.
Journal Article•
TL;DR: In this paper, the authors discuss how the school environment affects teachers' performance in public primary schools in Bugisu sub region in Uganda and conclude that an improvement in school environment leads to a significant increase in teachers performance and teachers are at times victims of their work environment.
Abstract: This paper discusses how the school environment affects teachers’ performance in public primary schools in Bugisu sub region in Uganda. The paper is based on research that was conducted in 2015 involving teachers, head teachers, District Education Officers, District Inspectors of schools, and members of the school management committees. Of the 630 subjects who were sampled, 559 returned the survey instrument suggesting a response rate of 88.73%. The school environment was found to have a statistically significant effect (0.000 at p < .05 level) on teachers’ performance. We conclude that an improvement in the school environment leads to a significant increase in teachers’ performance and teachers in Bugisu sub region are at times victims of their work environment. The findings are compared with both local and international empirical studies to suggest policy and managerial recommendations.
TL;DR: It is found that the introduction of a competing business model can create novel sources of value for the company and its customers and intensify the pressure on firms to innovate their business models.
Abstract: In today's highly competitive business environment, the reasons for companies to engage in business model innovation (BMI) are manifold. The pressure on firms to innovate their business models results in either an adaptation of the incumbent business model, or the introduction of a new competing business model. Based on extant theory, we found that the reasons for a firm to engage in BMI can be clustered into three categories: 1) increased profitability; 2) improved strategic positioning; 3) customer attraction. By conducting an exploratory single case study approach, we confirmed these categories by identifying the distinct reasons for eBay to introduce a competing business model. We then highlight the impacts on the focal firm as a result of the new business model. We find that the introduction of a competing business model can create novel sources of value for the company and its customers. In total, the study emphasises that when firms launch competing business models, intended and unintended consequences can be both positive and negative.
TL;DR: The results suggest that through external cooperation firms can overcome the problems that a focus-oriented training can have regarding product innovation performance.
Abstract: Training has traditionally been considered as an effective mechanism to leverage human capital and as a consequence improve firms' innovation performance. However, studies specifically analysing the effect of training on innovation performance are scarce and the results inconclusive. This paper examines the influence of specific innovation training on product innovation performance and analyses how external cooperation can moderate this relationship. The empirical analysis used here is based on a representative panel of 176 Spanish firms in high-tech industries. The findings suggest that the positive impact of innovation training on product innovation performance occurs when firms are cooperating with external agents. Thus, our results suggest that through external cooperation firms can overcome the problems that a focus-oriented training can have regarding product innovation performance.
TL;DR: The findings show that both the effectiveness in intra-chaebol knowledge sharing and explorative and exploitative nature of knowledge shared within a chaebol have a substantial influence on the Chaebol EMNE subsidiary's performance.
Abstract: Do explorative and exploitative nature of knowledge shared within emerging multinational enterprises (EMNEs) (here, Korean chaebol MNEs) affect the EMNE subsidiaries' financial performance? The international business and strategy literature has emphasised the importance of intra-multinational enterprise (MNE) knowledge sharing yet researchers have remained largely silent about explorative and exploitative nature of knowledge shared within EMNEs. Further, when we consider explorative and exploitative nature knowledge shared within emerging economy business groups (EEBGs) (here, Korean chaebols), we still do not know much about how the foreign subsidiaries within EEBGs mobilise their knowledge sharing across networked units in order to promote innovations. Using a sample of 646 subsidiaries in China of 175 Korean MNEs within 37 chaebols, we examine how intra-EMNE sharing of explorative and exploitative knowledge affects an EMNE subsidiary's financial performance. Our findings suggest that there is a positive interaction effect between increased sharing of both explorative and exploitative knowledge and a negative effect of the relative imbalance between sharing of explorative and exploitative knowledge. Our findings show that both the effectiveness in intra-chaebol knowledge sharing and explorative and exploitative nature of knowledge shared within a chaebol have a substantial influence on the chaebol EMNE subsidiary's performance.
TL;DR: An evolutionary framework is offered illustrating how pre-liberalisation asymmetries between EMNEs and developed-market multinational enterprises (DMNEs) have led to unique EMNE capabilities that impel growth in DMs.
Abstract: Growth of emerging-market multinational enterprises (EMNEs) in developed markets (DMs) leads to two questions: What are the unique capabilities of these firms? And how do these capabilities foster growth in DMs? Drawing upon resource-based theory (RBT) and the dynamic capabilities view (DCV), I offer an evolutionary framework illustrating how pre-liberalisation asymmetries between EMNEs and developed-market multinational enterprises (DMNEs) have led to unique EMNE capabilities that impel growth in DMs. The typology offered here offers frugal-innovation, political, and market-sensing as unique EMNE operational capabilities. These operational capabilities combine with post-liberalisation, dynamic capabilities: relational-learning and acquisitions capabilities to underpin three sets of strategic choices. The theoretical framework offered here has implications for our understanding of EMNE-specific capabilities and prediction of their growth strategies in DMs.
TL;DR: This study investigates how customer value is created within the co-design process and suggests that creative achievement is the primary value component of co- design.
Abstract: Mass customisation (MC) is a business strategy that seeks to gain a competitive edge through enhancing product-centred offers with individualisation services. In its core process of customer co-design, toolkits enable customers to translate their needs into product specifications. The present study investigates how customer value is created within the co-design process. Data from 211 customers of a luxury shoe individualiser were retrieved and subsequently analysed using SEM-PLS. We find creative achievement and perceived fun to be significant components of co-design value. Both have significant impact on product perception. Product perception fully mediates the relationship between co-design value and the intention to purchase as well as the intention to recommend the MC offer to others. Furthermore, in contrast to previous works, our study suggests that creative achievement is the primary value component of co-design. We recommend further studies that take into account multiple customer segments or product categories as well as studies which depart from conceptualising MC as technology-based self-service, e.g., by including peer assistance and professional assistance.
TL;DR: Whether and how a transformation from being a service provider to being a solution provider influences the provider's relationship with the customer, affects customer-induced service and solution innovation, and shapes the providers' absorptive capacity is investigated.
Abstract: There is a rich body of literature investigating the integration of customers into innovation processes. The various strands of this literature converge on the notion that integrating customers creates access to use-related knowledge that is needed to better target future customers. In a similar vein, solution selling has emerged as a means to provide solutions that fulfil customers' demands as an alternative to selling products and services to an unknown, anonymous customer. Here, most research adopts a producer-centric view. Yet, little research exists that: 1) combines customer integration and solution selling; 2) considers service companies. Thus, the authors' aim was to investigate whether and how a transformation from being a service provider to being a solution provider influences the provider's relationship with the customer, affects customer-induced service and solution innovation, and shapes the provider's absorptive capacity. The authors employ a case study design and investigate a German medium-sized IT consulting firm. The main result is the identification of testable propositions stemming from expert interviews and additional company data. At the end of the article, the authors discuss theoretical and managerial implications.
TL;DR: It is argued that as in innovation development processes, experimentation may generate knowledge and reduce the uncertainties associated with this emergence of an innovation ecosystem.
Abstract: Little research has focused on the way an innovation ecosystem emerges and specifically what processes and tools support it. We argue that as in innovation development processes, experimentation may generate knowledge and reduce the uncertainties associated with this emergence. Based on a longitudinal study of hydrogen energy solutions that require a novel ecosystem, we outline four specificities of the experiments performed, designated as complete solution experiments, and their role in this emergence. They: 1) involve all the players required so as to deliver and operate a complete solution; 2) target real customers using the innovation in real conditions over a significant period of time; 3) are highly refined (components and complements are representative of an industrial offer); 4) are transparent on how the data generated will be exploited and shared with all the players who commit to the experiment, who are thus assured that they will acquire validated information.
TL;DR: The case is built for the increasing relevance of the concepts of localised technological change and technological accumulation in explaining the rapidly evolving technological capabilities of EMNCs.
Abstract: This paper challenges the continuing validity of three distinct propositions of the product cycle model of Vernon (1966, 1979) or its extension to Third World Multinationals by Wells (1983, 1986). This is in light of recent developments in the role of rapidly evolving technological capabilities in the emergence and evolution of MNCs from emerging economies (EMNCs). The model states that EMNCs have a narrow scope for innovation confined to imitating and adapting the innovation of the technologically leading companies as standardisation proceeds in the product life cycle. It also proposes that innovations are almost always located in the home country of national firms. Furthermore, firms exploit through international operations their unique home country-derived technological advantages. In challenging these product cycle propositions, the paper builds the case for the increasing relevance of the concepts of localised technological change and technological accumulation in explaining the rapidly evolving technological capabilities of EMNCs.
TL;DR: Through multivariate regression the study confirms that potentials for market exploitation are particularly important host country factors for attracting Chinese FDI and there is no strong correlation between aggregate national R&D spending and Chinese knowledge-seeking investments.
Abstract: The present study of direct investment from mainland China into Europe complements and extends prior studies by building on a firm-level database comprising of 548 Chinese subsidiaries in 26 countries in EU and EFTA. The study identifies and characterises three segments of subsidiaries, predominantly related, respectively, to private companies' market-seeking activities, state-owned companies' production- and technology-seeking activities, and efficiency-seeking activities in Eastern Europe. Through multivariate regression the study confirms that potentials for market exploitation are particularly important host country factors for attracting Chinese FDI. There is no strong correlation between aggregate national R&D spending and Chinese knowledge-seeking investments, reflecting that such investments tend to be individual and highly idiosyncratic cases. Rather than a wholesale adoption or dismissal of extant FDI-theories vis-a-vis new ones, extant theories are found to apply differentially to the different identified segments of Chinese outward FDI.