{"title":"Absorptive Capacity and Openness of Small Biopharmaceutical Firms – A European Union–United States Comparison","authors":"Tianjiao Xia","doi":"10.1111/radm.12017","DOIUrl":"https://doi.org/10.1111/radm.12017","url":null,"abstract":"The complementarities between internal capabilities and external linkages have been widely acknowledged in the open innovation literature, yet little is known about the extent to which internal capabilities affect firms' openness within different institutional contexts. This paper therefore empirically explores the relationship between absorptive capacity (ACAP) and openness in the United States and European biopharmaceutical sectors. Based on analysis of data from a large‐scale international survey of 349 biopharmaceutical firms in the United States, the United Kingdom, France and Germany, the results suggest that exploratory openness depends more strongly on the research and development (R&D) aspect of firms' potential absorptive capacity, whereas exploitative openness is more conditional on firms' realized absorptive capacity (RACAP). The results also highlight the major differences between firms' openness and ACAP in the United States and Europe – in the United States, firms' skill levels prove more significant in contributing to firms' engagement with exploratory relationships, whereas in Europe, continuity of R&D proves more important. Engagement with exploitative relationships, however, is more conditional on firms' RACAP in Europe only.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127685446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Location of Industrial Innovation: Does Manufacturing Matter?","authors":"Isabel Tecu","doi":"10.2139/ssrn.2233366","DOIUrl":"https://doi.org/10.2139/ssrn.2233366","url":null,"abstract":"What explains the location of industrial innovation? Economists have traditionally attempted to answer this question by studying firm-external knowledge spillovers. This paper shows that firm-internal linkages between production and R&D play an equally important role. I estimate an R&D location choice model that predicts patents by a firm in a location from R&D productivity and costs. Focusing on large R&D-performing firms in the chemical industry, an average-sized plant raises the firm’s R&D productivity in the metropolitan area by about 2.5 times. The elasticity of R&D productivity with respect to the firm’s production workers is almost as large as the elasticity with respect to total patents in the MSA, while proximity to academic R&D has no significant effect on R&D productivity in this sample. Other manufacturing industries exhibit similar results. My results cast doubt on the frequently-held view that a country can divest itself of manufacturing and specialize in innovation alone.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129957475","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Incentives in a Stage-Gate Process","authors":"R. Chao, K. C. Lichtendahl, Y. Grushka-Cockayne","doi":"10.2139/ssrn.1738531","DOIUrl":"https://doi.org/10.2139/ssrn.1738531","url":null,"abstract":"Many large organizations use a stage-gate process to manage new product development projects. In a typical stage-gate process project managers learn about potential ideas from research and exert effort in development while senior executives make intervening go/no-go decisions. This decentralized decision making results in an agency problem because the idea quality in early stages is unknown to the executive and the project manager must exert unobservable development effort in later stages. In light of these challenges, how should the firm structure incentives to ensure that project managers reveal relevant information and invest the appropriate effort to create value? In this paper, we develop a model of adverse selection in research and moral hazard in development with an explicit go/no-go decision at the intervening gate. Our results show that the principal's uncertainty regarding early-stage idea quality --- a term we refer to as idea risk --- alters the effect of late-stage development risk. The presence of idea risk can lead the firm to reject projects that otherwise seem favorable in terms of positive net present value. A simulation of early-stage ideas, found through search on a complex landscape, shows that the firm can mitigate the negative effects of idea risk by encouraging breadth of search and high tolerance for failure.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"3 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-06-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129933652","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Empirical Evidence for Domain Name Performance","authors":"Karan Girotra, K. Ulrich","doi":"10.2139/ssrn.1714992","DOIUrl":"https://doi.org/10.2139/ssrn.1714992","url":null,"abstract":"This paper provides the first large-scale empirical evidence of the association between specific properties of internet domain names and website performance. We analyze over one million internet domain names, linking their phonological and morphological attributes to the realized demand for their associated websites. We test hypotheses related to how the names sound, how they look, their ease of recall, and the likelihood that they will be typed correctly. We find that certain attributes of names are associated meaningfully and significantly with the demand realized by a website. The websites with the highest demand have names that are short, include dictionary words, avoid punctuation symbols, and use numerals. The use of phonemes associated with disgust is negatively associated with performance for most websites, but positively associated with performance for adult sites. Some of these results from the on-line world are likely to hold off line, while some are not. These findings can be used in conjunction with other criteria as part of the selection process for names.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"140 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-04-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123233022","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Incumbent Performance in the Face of a Radical Innovation: Towards a Framework for Incumbent Challenger Dynamics","authors":"S. Ansari, Pieter Krop","doi":"10.2139/ssrn.2034266","DOIUrl":"https://doi.org/10.2139/ssrn.2034266","url":null,"abstract":"When radical innovations impact an industry, established incumbents are sometimes displaced by new challengers, yet at other times, survive and prosper. What are the factors that influence these possible outcomes? Extensive as the studies are in providing insights into incumbent-challenger dynamics (ICD), the fragmented nature of the literature and the isolated treatment of various constructs at a particular level of analysis, merit a review and analysis. We (1) identify, collate and analyse several constructs from three categories; the industry, the firm and the challenge, (2) discuss the interactions among these constructs and (3) show that incumbent failure or success can be better understood when these constructs are concurrently analysed. We derive several propositions for stimulating research and develop a holistic multi-level framework for understanding incumbent-challenger dynamics. We pull together strategic management theories at the industry level with those at the organizational and inter-organizational levels in the context of disruptive innovations. We contribute by bringing in the challenge dimension across these levels to inform whether an innovation is disruptive in its effects, not just ex post but also ex ante. For illustrative purposes and to concretize our arguments, we draw on both primary data from the Dutch television industry and archival data from four episodes of disruptive innovations.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115034988","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Beyond Refusal to Deal: A Cross-Atlantic View of Copyright, Competition and Innovation Policies","authors":"Ariel Katz, Paul-Erik Veel","doi":"10.2139/ssrn.1898118","DOIUrl":"https://doi.org/10.2139/ssrn.1898118","url":null,"abstract":"Conventional wisdom holds that the European Union has opted to apply its competition law to the exercise of intellectual property rights to a much greater extent than has the United States. We argue that, at least in the context of copyright protection, this conventional wisdom is false. While European antitrust regulation of refusal to license one's intellectual property does seem much more robust and activist than U.S. antitrust regulation of similar conduct, focusing solely on one narrow aspect of antitrust doctrine — the treatment of a unilateral refusal to deal — tells less than half the story. Once various doctrines of copyright law are taken into account, the substantive difference between the European and American approaches not only narrows, but in some key respects is reversed. While European jurisdictions have relatively expansive copyright protection which may require antitrust intervention to check anti-competitive uses of copyrighted works, American copyright law provides stronger internal limits on copyright protection, which thereby lessens the need for resort to antitrust law as an external check on anti-competitive uses of copyrighted works. Furthermore, when the broader impact that antitrust law might have on the exercise of IPRs in the United States is considered (not only in substance, but also in antitrust process), it becomes apparent that in key respects, when innovative-competition is at stake, U.S. law grants overall weaker copyright protection than that available in Europe. We also explain why the two jurisdictions have adopted distinct approaches to resolving similar problems and evaluate those approaches.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"42 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123350912","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Measuring the Economic Efficiency of Italian Agricultural Enterprises","authors":"D. Zaimova","doi":"10.2139/ssrn.1858666","DOIUrl":"https://doi.org/10.2139/ssrn.1858666","url":null,"abstract":"Early microeconomic theory established its framework under the assumption that producers’ behavior is optimal towards input allocation and output level. Since Debreu and Farrell this basic neoclassical approach has been extended, allowing for producers’ decisions to diverge from the optimum production choice. The generally accepted reason for production units not to be efficient regards the presence of technical or allocative inefficiency components in their production function. Therefore one of the main objectives of studying production and cost frontiers is to estimate their efficiency towards input utilization and allocation. This paper aims to measure the technical efficiency of agricultural enterprises in Italy during the period 2003 – 2007 by applying a stochastic frontier analysis to panel data. The developed two-sectored model distinguishes between agricultural production function and non-agricultural production function. The variables included in the first production function are related directly to the final product and are utilized during the production process. The non-agricultural production function includes two categories of variables: the first accounts for the general characteristics of the agricultural enterprises, while the second attempts to describe the opportunities and restrictions of the institutional framework.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126143663","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Interactions with Customers for Innovation","authors":"C. Un, Alvaro Cuervo‐Cazurra","doi":"10.4337/9781848447271.00029","DOIUrl":"https://doi.org/10.4337/9781848447271.00029","url":null,"abstract":"This chapter analyzes the ways in which firms can use their interactions with customers to generate innovations and better foresight future trends in the marketplace. We discuss how the interaction with customers varies depending on the type of innovation the firm is aiming to achieve: Product improvement, product versioning, new product development, and new product discovery. Each of them has distinct knowledge creation challenges in terms of the identification, transfer, and integration of customer knowledge to create innovations that fulfill their needs and preferences.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134124367","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Case Study: Mashups Interoperability and eInnovation","authors":"Urs Gasser, John G. Palfrey","doi":"10.2139/ssrn.1033232","DOIUrl":"https://doi.org/10.2139/ssrn.1033232","url":null,"abstract":"Web services have been wildly hyped for a long while now. Web services, and more specifically mashups, on which we focus here, are an area of enormous innovation. That innovation is manifested through new business models, new technologies, and clever new ways to use and share data. It's also an area where interoperability is the name of the game; the notion that people, data, and code can interact with other people, data, and code is the starting point for these services. The word interoperable is often in the definition of what a Web service is. The focus of this case study is the relationship between innovation in Web services applications and the interoperability (or interoperability potential) that we see. We conclude that the connection between interoperability and innovation is plain in this context. A wide variety of mashups that are useful to individuals, enterprises, and society as a whole have been enabled by interoperability in Web services, and could not exist without it. The drivers of interoperability have been market demand, private ordering, and work done in standards bodies. But the system by which it has come to pass is currently unstable, in the sense that a lawsuit or withdrawal of interoperable interfaces by a key stakeholder could set back innovation considerably. We consider several options for creating greater sustainability over time, such as license interoperability, open standards, and back-up in the form of traditional law enforcement.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"37 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-11-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125684572","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Innovation Networks Taxonomy and Effciency - Toward Innovation Engineering","authors":"A. Messica","doi":"10.2139/ssrn.1023964","DOIUrl":"https://doi.org/10.2139/ssrn.1023964","url":null,"abstract":"Innovation is considered instrumental in creating value and growth in the modern society and as such has been extensively studied in the past decade. In this context innovation networks are considered central for driving innovation in general and technological innovation specifically. Federal and local governments, as well as regional organizations, spend significant amounts of money in order to stimulate and support the formation of innovation networks that take on variety of forms and structures. Most of the research on innovation networks has focused on descriptive analysis. Using metrics borrowed from graph theory, as well as a newly defined metric, I set up the taxonomy and provide a systematic, quantitative, analysis of innovation networks in their broadest sense, topology-wise, as well as their efficiency from information flow perspective. I argue that public policy makers should apply a portfolio, holistic, approach to innovation networks and decide upon a balanced mix of different types of networks in order to maximize the innovation efficiency/intensity versus costs, a process that I refer to as innovation engineering.","PeriodicalId":367043,"journal":{"name":"Product Innovation eJournal","volume":"112 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-10-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"125022938","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}