4. Basic fact 3: Concentration of R&D activities
(global 1000 leading R&D investors)
5. An overview: research on technology and
innovation
• History of ideas: technology and theorizing [progress, power,
ethics, man vs. nature]
• Technology per se was seen as given-like tastes
• Schumpeter- innovation dynamics key to capitalism-
• Adoption – migrant from sociology
• Induce innovation-innovation as economic activity
• Human capital-the dynamics of learning and accumulation of
knowledge
• Knowledge as a public good
• Innovation as an economic activity
• Technology and catching up
• Innovation and dual structures
• Social innovation
6. The Policy relevance of these
research programmes
• The development of scientific communities
• Emphasis on basic research in the US
• OECD and Innovation Policy processes
• Technological Development in Developing
Countries
• Globalisation and diverging growth trajectories
7. Breaking down innovation
Usually thought of as composing three or four activities,
all of which are required to achieve productivity growth:
– Invention – the conception of a new idea; prototypes
– Development - reducing the new idea to practice
– Commercialization – bringing it to the marketplace
– Diffusion – the result of adoption by consumers
Diffusion can be very slow
The importance of some innovations initially greatly
underestimated
8. A broad definition of Innovation
Innovation is the creation and use of new products
and processes, including:
• use of new equipment or materials
• use of new markets or sources of supply
• new organizational forms
• creation of completely new products
• product modifications and restyling
• selling in new markets or new segments
N. Rosenberg ‘Transportation in boxes is one of the major
innovations for the global economy’
9. Sources of Data
• OECD • Technology spillovers data (variety of
methodologies)
• NSF
• Measurement of technological assets in
• Eurostat
regional clusters
• European Report on S&T indicators
• Agriculture R&D (IFPR)
• CIS and similar surveys
• Research and technology collaboration
• UNESCO report data
• World Bank Innovation Database • Technology Diffusion (GPT) data
• Firm level R&D data [IPTS, 700 larger • Technology transfer payments data
firms]
• Business Environment Data (World Bank)
• Several patents data bases
• Technological infrastructure data (various
• Scientific publications sources, especially for ICT)
• Country level Technology and Innovation • Scientific publications data
statistics
• ECLAC data base for the world economy
• MNC R&D data (UNCTAD and national
• Several sources of information on the
surveys)
quality of education
• Corporate assets: several publications
• Case studies and ad hoc reports with
drawing on annual reports
survey findings on a wide range of topics
• Innovation and technological capabilities
indexes (RAND, Porter, ArCo, UNIDO)
• Knowledge flows studies
A footnote: take the time to visit some of these sources on-line
10. An example
STAN Indicators Database 2005
R&D INTENSITY using PRODUCTION
Indicator:
k
ANBERD
k i
RDIP = x 100
i
PROD ik
Formula:
Where: ANBERD and PROD are the business enterprise Research and
Development and production at current prices, respectively. For zones, data
have been converted to common unit using the Purchasing Power Parities
for total GDP.
For each country (or country group), this indicator expresses the R&D
Description:
expenditures by sector relative to the production.
11. A map of innovation inputs and outputs
Market structure and industry;
Appropriability environment
Demand pull
Firm size and
(taste, market size)
Market share,
Tech. Opportunity R&D and other Diversification,
(science base) Innovation investments And experience
Knowledge
Firm-level capital created
By innovation investment
Patents,
Other IPR
Innovative sales
Innovation output
Diffusion Outcomes: Productivity, Physical capital
process Profitability, Worker skills
And Economic Growth
12.
13. The Innovation Development System: A Framework
CUSTOMERS OTHER KNOWLEDGE
INDUSTRY LINKAGE
SOURCES
Research
Large TNC Knowledge Linkage, Institutes
Transfer and
Development
Export
Organisations
Large Universities
Domestic
Metrology and
Vocational
Standards
Training
SME
Domestic
Foreign
Start-Ups
Technology
Sources
Policy and Incentive Systems Financial and Funding Systems
Legal Frameworks Organisational Structures
INSTITUTIONAL CONTEXT
14. Evolution of Industry Structure
over the Life Cycle
INTRODUCTION GROWTH MATURITY DECLINE
DEMAND Affluent buyers Increasing Mass market Knowledgeable,
penetration replacement customers
demand
TECHNOLOGY Competing Standardization Incremental Well-diffused
technologies process innovation innovation technology
PRODUCTS Wide variety, Quality improves Standard- Comm-
poor quality Dominant design ization oditization
MANUFACT- Short-runs, skill Capacity shortage, Deskilling Overcapacity
URING intensive mass-production Overcapacity
TRADE -----Production shifts from advanced to developing countries-----
COMPETITION Few firms Entry, merger Shakeout & Price wars,
& exit consolidation exit
KEY Product innovation Process techno- Cost efficiency Overhead red-
SUCCESS Establish credible logy. Design for High quality uction, ration-
FACTORS image for firm & mfg. Access to Fast product alization, low
product. Dist. Brands. development cost sourcing
15. Beyond simple metaphors…
Research Programmes on Technology and Innovation
Points of Departure
– From markets to incentives for rational and identical agents and
then to innovation
– From agents (firms with asymmetrical capabilities) to markets
and innovation
– From structural incentives (production system characteristics) to
incentives and innovation dynamics
• Additional Questions:
– What is the driving force behind asymmetrical capabilities (codified
knowledge, corporate structures, core competences, networking…)
– Stylized facts and the level of theorizing [general trends and valid
metaphors: product cycle, waves, critical technologies, paradigms etc.)
16. Critical thinking is needed…Myths and their
implications
(i) Technology is (just) Applied Science Set up R&D Institutes
(ii) Technological Self-reliance is Key, period Indigenization as end in itself
(iii) More Technology is always Good Focus on R&D Spending, not Content
or Value Added
(iv) High tech is the Best technology Expensive, high-tech Champions,
State or Private
(v) Technology is well understood and easily transferred Focus on
Regulation
(vi) R&D is Key, and led by Research Focus on Research, not Development
17. UNU –MERIT
PhD Programme
INNOVATION STUDIES AND
DEVELOPMENT
