Title: INNOVATION COOPERATION AND INNOVATION ACTIVITY Firm level evidence from Slovenia
1 INNOVATION COOPERATION AND INNOVATION
ACTIVITY Firm level evidence from Slovenia
- Andreja Jaklic, Matija Rojec, Joe P. Damijan
- Zagreb, november 2008
2Motivation
- Innovation cooperation increasingly an element of
innovation strategy (Powell et al., 2005) - Sourcing versus making in every slice of value
chain - (Veugelers, Cassiman, 1997, 1999)
- Cooperation an important part of spillovers
(outsourcing experience) - Open source boom
3Interesting!
- Market
- ?Innovation cooperation
- Hierarhies
Long term Information intensive
Transaction costs Knowledge creation Risk
Diversification Incomplete contracts
Asimetrical
4Relevant
- Innovation performance confirmed, essential for
sustainable growth - Increasing internationalization of RD activities
(Le Bas, Siera, 2002, WIR 2005) - Innovation cooperation almost sine qua non for
innovation activity /(incremental permanent
innovation) - Variety of disciplines currently try to examine
the phenomenon from different perspectives - Innovation networks
5For exTE/nEUms relevance
- CEE innovation modest compared to developed EU
economies - Followers, unintentional (laggards), (a few firms
succeed in preserving own RD unit, innovation
groups under pressure to be dismissed) - No (poor) national innovation systems, slow
home-grown innovation - From big bang innovation to small/modest
innovation that accumulates over time (CS most
VA), crucial for followers - From informal cooperation (institutions) to
formal - The importance of external/global/international
v. national/domestic (PRELIMINARY RESULTS) - How important are MNEs/FDI for local
cooperation? - CIS data available!
- Slovenia among top 3 in innovation cooperation
(CIS 2004)
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7Objectives
- THE SCOPE, RELEVANCE and EFFICIENCY of innovation
cooperation - How important is the external innovation
cooperation for innovation activity? - What kind of innovation cooperation exist, which
is most productive? - Does a location of partner involved in innovation
cooperation matter? - Are MNEs different?
8Relations explored
- 1. External innov. cooperation v. own RD
- (Veugelers, Cassiman, 1997, 1999)
- Transaction costs literature (Coase, 1937, Arrow,
1962) - substitutes - Recent studies stress complementary
- Absoption capacity needed
- Sophisticated buyer (Radnor, 1991), transfer of
knowledge possible only if you have own RD
9- 2. International versus domestic innovation
spillovers - 3. Inter-firm (and intra-firm) cooperation versus
cooperation with RD institutes and universities - 4. Public versus private partners in innovation
cooperation
10Data sources limitations
- Country study - Slovenia
- CIS from 1996 to 2004,
- financial statements collected by Agency of the
Republic of Slovenia for Public Legal Records and
- Related Services (AJPES) and information on FDI
status (parent company or foreign affiliate) - Unballanced data, pooled sample, (not panel)
-
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Above 3000 firms targeted, gt80 response
11Types of external partners
- Research institutes
- Private/ Comercial labs and RD institutes
- Public RD institutes
- Universities
- Inter-firm
- Customers,
- Suppliers
- Competitors
- Consultants
- Other firms
Location
- Foreign (EUEFTA, new EUm/CEECs, USA, Japan,
other)
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13Evidence from descriptives
- Table 1 Innovation activity and innovation
cooperation of Slovenian firms by type of
ownership, 2000-2004 (in )
14Location of innovation partner(s)
- domestic partners more frequent than
international cooperation the extent of
international cooperation falls with the distance
larger among manufacturing than services
enterprises
15THE IMPACT TO INNOVATION ACTIVITYProbability to
be innovative firm
- Mit matrix of operational characteristics of
firms - RD/sales, the size (and existence) own RD
department, innovation activity in the past - export intensity, inward FDI
- Controls size, capital intensity, relative
productivity, technological intensity, skill
intensity - Innovation cooperation(total, domestic-internation
al, public private, Technological intensity of
sectors is also included
16Firms probability to innovate (Results of a
probit model)
17Firms probability to innovate (Results of a
probit model)
18The efficiency of innovation cooperationdprobitd
F/dx is for discrete change of dummy variable
from 0 to 1
19Concluding remarks policy and managerial
implications
- INNOVATION STRATEGY should consider
- Innovation cooperation contributes to innovation
activity important channel for enhancing
home-grown innovation - Own RD expenditures, own RD activity organized,
past innovation most important predictors the
role of absorption capacity in using external
innov. coop. - Foreign ownership non-significant, outward
investment robustly significant? MNEs important,
yet IFDI not sufficient
20Concluding remarks (2)
- Both domestic and international innovation
cooperation important for innovation performance - Closer regions more important
- Cooperation with firms more important, ? many
tasks for universities RD institutes - Governments, universities and local business will
have to work together to improve environment for
innovation
21Further research
- Determinants of innovation cooperation, relations
within different types of cooperation - Firm-level determinants
- National innovation systems (mesures, clusters,
technological networks, ...) - Innovation cooperation and RD spending How does
innov. cooperation influence internal RD
(expenditures/organization/platform)? - Innovation cooperation and outsourcing
- Effects on productivity
- Optimum innovation cooperation strategy?
22... future firm level research...
- Observing domestic case studies
- Elan, Kolektor, Gorenje, ST
- Learning (by mistakes and success) is faster,
cheaper, the volume of merchandised ideas larger - Inn. coop. brings broader scope economies of
scope - Innovation in advertising (targeting), financing,
ICT use, e-business - The role of SMEs in innovation networks
- Explore the implementation of organizational
structure incentive scheems into daily
bahaviour