This handbook looks to provide academics and students with a comprehensive and holistic understanding of the phenomenon of innovation. Innovation spans a number of fields within the social sciences and humanities: Management, Economics, Geography, Sociology, Politics, Psychology, and History. Consequently, the rapidly increasing body of literature on innovation is characterized by a multitude of perspectives based on, or cutting across, existing disciplines and specializations. Scholars of innovation can come from such diverse starting points that much of this literature can be missed, and so constructive dialogues missed. The editors of The Oxford Handbook of Innovation have carefully selected and designed twenty-one contributions from leading academic experts within their particular field, each focusing on a specific aspect of innovation. These have been organized into four main sections, the first of which looks at the creation of innovations, with particular focus on firms and networks. Section Two provides an account of the wider systematic setting influencing innovation and the role of institutions and organizations in this context. Section Three explores some of the diversity in the working of innovation over time and across different sectors of the economy, and Section Four focuses on the consequences of innovation with respect to economic growth, international competitiveness, and employment. An introductory overview, concluding remarks, and guide to further reading for each chapter, make this handbook a key introduction and vital reference work for researchers, academics, and advanced students of innovation. Contributors to this volume - Jan Fagerberg, University of Oslo William Lazonick, INSEAD Walter W. Powell, Stanford University Keith Pavitt, SPRU Alice Lam, Brunel University Keith Smith, INTECH Charles Edquist, Linkoping David Mowery, University of California, Berkeley Mary O'Sullivan, INSEAD Ove Granstrand, Chalmers Bjorn Asheim, University of Lund Rajneesh Narula, Copenhagen Business School Antonello Zanfei, Urbino Kristine Bruland, University of Oslo Franco Malerba, University of Bocconi Nick Von Tunzelmann, SPRU Ian Miles, University of Manchester Bronwyn Hall, University of California, Berkeley Bart Verspagen , ECIS Francisco Louca, ISEG Manuel M. Godinho, ISEG Richard R. Nelson, Mario Pianta, Urbino Bengt-Ake Lundvall, Aalborg

The Oxford Handbook of Innovation

This paper compares the contribution of R&D to innovation in terms of the various innovation output measures provided by the third Community Innovation Survey (CIS 3) for French manufacturing firms and in terms of accounting for interindustry innovation differences.

/pdf/the-importance-of-r-d-for-innovation-a-reassessment-using-3fh5lib0i7.pdf

The Importance of R&D for innovation: a reassessment using French survey data

Government subsidies play a vital role in enhancing firms’ investment in research and development (R&D). The study’s aim is to investigate the relationship between government subsidies (including g...

Government subsidies, R&D investment and innovation performance: analysis from pharmaceutical sector in China

Prior studies suggest that external corporate social responsibility (CSR) practices could lead to positive responses from employees, but little attention has been paid to its potential negative impacts on employees' responses. To have a comprehensive understanding of the relationship in question, we propose that there is a S‐curve relationship between external CSR and labor productivity. Found on samples of Chinese listed firms during the period from 2011 to 2017, we have drawn some conclusions as follows. First, there is a S‐curve relationship between external CSR practices and labor productivity, with labor productivity declining at low and high levels of external CSR but increasing at moderate level of external CSR. Second, internal CSR will moderate the relationship between external CSR and labor productivity that firms affiliated with high internal CSR are more likely to perform better in terms of labor productivity than firms with low internal CSR. However, the proposed negative moderating role of government subsidy on the relationship in question is not supported. It is the match between government subsidy and external CSR that may predict labor productivity.

External corporate social responsibility and labor productivity: A S‐curve relationship and the moderating role of internal CSR and government subsidy

According to the research-based view of the firm, innovation is a key capability that can foster a sustainable competitive advantage and explain firm heterogeneity in export performance. However, few studies have focused on the effect of innovation on export performance in the context of low levels of innovation, which developing markets are characterized by. Since exports are considered the first market entry mode, it is critical to understand the effect of innovation on exports. In this paper, we test the effect of innovation on export performance in small and medium-sized enterprises (SMEs) in Peru that have received government innovation subsidies, with a theoretical model that incorporates innovation inputs, innovation types, and performance. We test the model using partial least squares structural equation modeling from 237 SMEs. The findings show that government innovation subsidies, human capital, and cooperation have a positive effect on innovation types. Likewise, innovation types positively affect production and export performance. Production performance mediates the relationship between innovation types and export performance. This research article advances the study of innovation and export performance in an emerging market context, which are characterized by a weak innovation system and low investments on innovation. Likewise, it holds policy implications for both science, technology and innovation policy and foreign trade policy. 

Innovation Drivers for Export Performance

Background: To enhance the innovation activities at the firm level, government subsidies plays an important role. Objectives: The objective of the study is to explore whether firms in service sector that receive government subsidies engage more in marketing and organizational innovation activities than their counterparts. Second, focusing on the subsidized firms in the service sector, the impact of innovations (marketing as well as organizational) on firm performance—measured as the probability of submitted copyright applications by firms, has been analyzed. Methods/Approach: The propensity score matching approach and probit model have been used to analyze the innovation activities of subsidized and non-subsidized firms. The empirical analysis is based on the micro level data from Mannheim Innovation Panel, covering the Community Innovation Survey of 2011. Results: Empirical results show that public subsidy has a significant positive effect on marketing and organizational innovation. In addition, within the firms that have received government subsidy, the impact of only marketing innovation is found to be significant on firm performance. Conclusions: These findings employ that subsidized firms are more likely to perform better than their counterparts. Furthermore, public subsidy programs increase the probability of applying for a copyright in small and medium firms.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

/pdf/the-effect-of-government-subsidy-on-non-technological-2jqfhdgm0m.pdf

The Effect of Government Subsidy on Non-Technological Innovation and Firm Performance in the Service Sector: Evidence from Germany

The study examines how quality certification and firm-level attributes (firm age and size) support firms’ innovative ecosystems that use trademarks in developing countries. The study combines data ...

Trademark and product innovation: the interactive role of quality certification and firm-level attributes

Background: Firms increasingly depend on external actors for the process of generating innovation. Interaction with these actors might occur through an official collaboration agreement or via external actors as the source of information. Objectives: Although open innovation has received more attention, still less is known about its effect on organizational innovation. To fill this gap, this study investigates the impact of various external knowledge sources on the willingness of small and medium-sized enterprises to introduce organizational innovation. Methods/Approach: To achieve the proposed objective, the German Community Innovation Survey conducted in 2017 is used for the econometric analysis. Results: Different external sources of knowledge are relevant for the introduction of organizational innovation in small firms (customers in the private sector, competitors, conferences, and crowdsourcing) compared to medium-sized firms (customers in the private sector and industry associations). Conclusions: External knowledge sources are more important for small firms compared to medium firms, and those small firms are more likely to use various sets of external knowledge.

/pdf/the-effect-of-external-knowledge-sources-on-organizational-44ytnehoia.pdf

The Effect of External Knowledge Sources on Organizational Innovation in Small and Medium Enterprises in Germany

PurposeKnowledge competencies and (R&D) activities are one of the most important sources of innovation and have been widely discussed in the literature. In comparison, the role of the competitive environment for the innovation activities of firms is still open to debate and has not been fully understood yet. Therefore, this paper intends to provide new evidence on the interaction between knowledge competencies and R&D activities of firms on the one side and their competitiveness in the market environment on the other. In particular, the moderating function of market competition is explored. In this respect, the analysis covers the main innovation types as well as both sectors, manufacturing and services.Design/methodology/approachThe empirical analysis is based on a three years panel dataset of German manufacturing and service firms obtained from Mannheim Innovation Panel (MIP) and Community Innovation Surveys (CISs: 2011, 2013 and 2015). For the estimation, a binary instrumental variable treatment model with Heckman selection method is used. Also, it provides a suitable approach to estimating the binary variables in order to cope with endogeneity concerns.FindingsThe estimation results show that R&D activities and knowledge competencies are positively related to innovation activities of different types conditioned on firms' specific perception of their competitive environment, in terms of outdated products/services as well as strong competition from abroad. Most importantly, the results from the moderation estimation reveal that there is a significant difference between the manufacturing and service sector. Service firms engage more in internal R&D activities on generating product innovations while the manufacturing firms conduct more external R&D on specific types of innovation. Further, the authors find that strong competition from abroad positively and significantly reinforces the effect of knowledge competencies on innovation activities for more types in services than in manufacturing. In contrast, outdated products and services tend to decline the effect of knowledge competencies for some innovation types in both sectors. The authors also observe a positive and significant reinforcement effect on knowledge competencies. However, it is found more beneficial for service firms since they can employ more innovation strategies.Originality/valueThe focus of the study is mainly on the impact of firms' competitive environment on innovation activities in various types through its interaction with knowledge competencies and R&D activities, across manufacturing and service firms.

/pdf/the-role-of-market-competition-for-knowledge-competencies-r-1eaet7a0.pdf

The role of market competition for knowledge competencies, R&D and innovation: an empirical analysis for German firms

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The Effect of Government Subsidy on Non-Technological Innovation and Firm Performance in the Service Sector: Evidence from Germany

Trademark and product innovation: the interactive role of quality certification and firm-level attributes

The Effect of External Knowledge Sources on Organizational Innovation in Small and Medium Enterprises in Germany

The role of market competition for knowledge competencies, R&D and innovation: an empirical analysis for German firms