Organizational design as a driver for firm innovativeness in Serbia

The area of innovation and innovation activities includes numerous aspects and changes needed to increase and improve the innovation potential of firms. Besides technological changes, organizational changes also play a very important role. Although these changes are considered within a wider innovation concept that is not limited merely to technological changes, they can significantly influence business improvement. Statistical data processing of an official pilot study – conducted by Statistical Office of the Republic of Serbia in cooperation with the Mihajlo Pupin Institute – illustrates the significance of organizational design regarding the innovative behavior of a company. It also points out that some elements of organizational design give a remarkable impetus to the innovative behavior of corporations, while others can be seen as a limiting factor. Detailed statistical analysis shows that one component of organizational design, namely the introduction of a new or significantly improved knowledge management system for a better use or exchange of information, knowledge and skills within companies, has the most influence on the innovation behavior of the company. Another component, a firm's completely new or significantly different relation with other firms or public institutions (such as alliances, partnerships, outsourcing or sub-contracting), has the least influence. These analyses are of crucial importance for defining the innovation pattern related to corporation management.     

The persistence of national differences in a globalizing world: the Japanese struggle for competitiveness in advanced information technologies

This paper represents a critique of that aspect of globalization theory that predicts the convergence of national economic institutions and practices toward some single optimal model. This is done through the examination of the innovative practices of Japanese firms and government within the context of US–Japanese competition in high-technology industries. A profile of Japanese innovative competencies is developed through an overview of competition in consumer electronics and personal computing and the emerging wireless Internet industry. The paper argues that different national systems of innovation result in levels of competitiveness that vary according to the technological profile in a given industry, thus undermining one of the basic premises of convergence theory.     

Gender differences on the job satisfaction in the phase of implementing advanced manufacturing technology in the Chinese manufacturing firms

This research gave an effort to study on gender differences in the job satisfaction for technological innovation at Chinese manufacturing firm. The exploratory study was conducted in four Chinese furniture manufacturing firms, which are all in the phases of introducing advanced manufacturing system. The results of statistical analysis show that general satisfaction of female employees to their jobs is significantly higher than male employees. In addition, supervisory satisfaction of female employees is significantly higher than male employees. The findings of the study reveal that activities are suggested to be carried out to increase the job satisfaction of male employees, especially improve communication and relationship between the managerial and the non-managerial levels in the innovation process. In addition, the higher job satisfaction of female employees could be considered a positive factor for the successful implementation of AMT in the technological innovation, although male employees are still dominated work force in the case study firms.     

Union membership,market structure,and the innovation output of large and small firms

The determinants of the extent of union membership, industry concentration, and the innovation output of large firms and small firms are examined in a simultaneous-equations model. Data for 246 U.S. manufacturing industries are used to determine: (1) that there are significant interdependencies among these endogenous variables; (2) that contrary to recent findings, unionization is significantly lower in industries with high concentration and high innovation output; and (3) that although high unionization modestly reduces small-firm innovation output (as compared with large-firm innovation output), there is not a large difference in the effects of small-firm and large-firm innovation output on the extent of union membership across industries. I am grateful to John W. Ballantine for his comments on this study.     

Innovation evaluation model for macro-construction sector companies: A study in Spain

The innovativeness of the traditional construction sector, composed of construction companies or contractors, is not one of its strong points. Likewise, its poor productivity in comparison with other sectors, such as manufacturing, has historically been criticized. Similar features are found in the Spanish traditional construction sector, which it has been described as not very innovative. However, certain characteristics of the sector may explain this behavior; the companies invest in R+D less than in other sectors and release fewer patents, so traditional innovation evaluation indicators do not reflect the true extent of its innovative activity. While previous research has focused on general innovation evaluation models, limited research has been done regarding innovation evaluation in the macro-construction sector, which includes, apart from the traditional construction companies or contractors, all companies related to the infrastructure life-cycle. Therefore, in this research an innovation evaluation model has been developed for macro-construction sector companies and is applied in the Spanish case. The model may be applied to the macro-construction sector companies in other countries, requiring the adaption of the model to the specific characteristics of the sector in that country, in consultation with a panel of experts at a national level.     

A LONG-RUN VIEW OF GERMAN DOMINANCE AND THE DEGREE OF POLICY CONVERGENCE IN THE EMS

A preliminary for European monetary union is convergence of the European Monetary System's members' policies. Using a cointegration framework with short-term interest rates and monetary bases as monetary policy measures, we find policy convergence has not occurred. Nor, contrary to popular belief, does the Bundesbank dominate other members' policies. Although the Bundesbank is influential, substantial policy interaction occurs among almost all the EMS countries examined. Finally, the "credibility" argument, that pegged exchange rate systems constrain and discipline monetary policymakers behavior, is undermined by our findings.     

AN EXPERIMENTAL ANALYSIS OF DYNAMIC INCENTIVES TO SHARE KNOWLEDGE

Knowledge‐sharing arrangements are an important part of the innovation process as they help firms acquire technological capabilities, shorten development time, and spread risk and cost. A question central to the study of knowledge‐sharing arrangements is the impact of competition on cooperation. While cooperation has the benefit of avoiding duplication, it may have an adverse effect on the competitive advantage of a leading firm. Hence, firms face a difficult challenge during the innovation process while deciding which components of it, if any, to carry out in collaboration with other firms. This paper reports the results of controlled laboratory experiments which identify how the decision to form research joint ventures changes with both relative progress during the R&D process and the intensity of product market competition. The design is based on a modified version of Erkal and Minehart “Optimal Sharing Strategies in Dynamic Games of Research and Development.” Research Paper 1038, University of Melbourne, Department of Economics, 2008. The results indicate that if expected profits are such that the lagging firms always stay in the race, cooperation unravels as firms move forward in the discovery process and as monopoly profits become more attractive. These results are generally consistent with the theoretical predictions. (JEL C91, L24, O30, D81)     

Innovation, workers skills and industrial relations: Empirical evidence from firm-level Italian data

The shifting of labour demand toward relatively more skilled workers has been a hot issue in the economic field for many years. A consolidated explanation for the upskilling phenomenon is that technological–organisational changes have driven the labour demand with detrimental consequences for less skilled workers (skill-biased technological–organisational change). In order to upgrade the skill workforce the firm has at least two main channels at its disposal: the external labour market strategy, mainly based on hiring and firing mechanisms; the internal labour market strategies, which improve the skill base of the employees through training activities.The main objective of the present work is to verify the relations between innovative strategies and both the workforce composition and the training activities, within an integrated framework that also leads us to consider the role of specific aspects of the industrial relations system.The firm level analysis is based on original datasets which include data on manufacturing firms for two Italian local production systems, located in the Emilia-Romagna region.The results suggest that the firms use both the two channels to improve their skill base, which is actually related to the innovation activities, although there is weak supporting evidence of the use of external labour markets to upgrade the workforce skills: the upskilling phenomenon seems to be associated to specific innovative activities in the technological sphere, while specific organisational aspects emerge as detrimental for blue collars. On the side of internal labour market strategies the evidence supports the hypothesis that innovation intensity induces the firms to implement internal procedures in order to upskill the workforce, confirming the importance of internal labour market strategies. Moreover, we have recognized the important role of firm level industrial relations in determining the training activities for the blue collar workers.     

生产性服务业发展的体制性障碍研究

生产性服务业在创新模式和创新产品的市场检验方面与制造业都有显著不同,为了实现生产性服务业的创新功能,这类服务业逐渐演化出一套高效率的组织模式,表现为弹性化、网络化和扁平化的明显特征。因此,生产性服务业对政府行政管理体制具有特殊要求。针对我国政府对行业管理的特征及其对生产性服务业创新抑制的体制性障碍,提出政策建议。     

Innovation Policy Challenges in Transition Countries: Foreign Business R&D in the Czech Republic and Hungary

R&D expenditures of national firms decreased considerably and structural changes of R&D financing followed the fall of planned economy in the transition period of Central Eastern European economies. In the middle of the 1990s, business R&D started to grow in the Czech Republic and Hungary due to investments of foreign affiliates and restructuring of domestic companies. Nowadays multinational companies have a decisive share in business R&D in these countries, which entails special challenges for national innovation policy. In this paper, we look through the development of the Czech and Hungarian innovation policy considering MNEs R&D. We use case studies of the Czech automobile industry, the Hungarian pharmaceutical industry, and the new MNE-related university units and private universities to show how these companies influence innovation systems in transition economies.      

The Sociology of Innovation: Organizational,Environmental, and Relative Perspectives

Innovation is risky. New products and firms are subject to high failure rates. To minimize the risk associated with innovation, most scholars agree that firms should engage simultaneously in two types of activities: exploring new alternatives and exploiting existing competencies. Firms that simultaneously engage in explorative and exploitative activities are called ambidextrous organizations. Research on ambidextrous organizations, however, inadequately considers the importance of the environment in which organizations operate for innovation success. The sociological view of innovation fills this gap by emphasizing the importance of social context for explaining innovative outcomes. The sociology of innovation highlights, first, the structural arrangements – characteristics of social networks, organizations, and institutions – that influence innovation and, second, the relative nature of innovation – whether an object is considered novel depends on one's vantage point. Drawing on the relative view of innovation, I develop a typology that outlines several paths to innovation with respect to two vantage points: the organization and the environment. I argue that minimizing the risks associated with innovation is most likely to occur when firms follow the path of innovation that consists of generating novel solutions that simultaneously exploit knowledge and resources that are both available to the firm and in the firm's environment.     

Economic convergence and life satisfaction in the European Union

The issue of convergence or divergence in the European Union (EU) is usually viewed from a macroeconomic perspective, using indicators such as the income per head, the unemployment rate and the inflation rate. Little attention has been paid to the possibility of an associated convergence in ‘well-being’ across countries. Since recent literature has shown that subjective well-being (life satisfaction, ‘happiness’) is significantly affected by macroeconomic variables, it is natural to ask not only whether or not subjective well-being converges, but also, whether, how and to what extent this process is linked to macroeconomic convergence. In this paper we use self-rated life satisfaction elicited in large scale surveys to address these questions. We find evidence of convergence of life satisfaction across the member states of the EU, which can be attributed to a considerable extent to the convergence in macroeconomic conditions. Among the various macroeconomic indicators, the convergence in inflation rates has played a major role for the convergence in life satisfaction.     

Service vs. manufacturing: how to address more effectively eco-innovation public policies by disentangling the different characteristics of industries

Eco-innovation is actually a fashionable topic, and several researchers are working on understanding the defining characteristics of firms that consider the environment as a priority when innovating. To date most of these studies have been carried out on manufacturing industries. This article investigates the similarities and differences among service and manufacturing firms. An empirical analysis of a sample of 5509 Spanish companies shows that the variables affecting the eco-innovative orientation of firms are quite similar. Results reveal that manufacturing firms have higher orientation toward the environment than service firms. Furthermore, highly polarized positions in environmental aspects can be found. Despite the limitations of the study, conclusions may help public policy to encourage environmental proactivity in service industry and innovation.     

Innovation as a cause of highly skilled migration: Evidence from Greece

This study investigates innovation as a cause of highly skilled migration. Drawing on a totally new database that includes all the Greek PhD holders, combined with panel data from the Global Innovation Index covering 57 countries over the 2009–2020 period, we find that innovation constitutes a strong determinant for highly skilled migration. That is, a rise in innovative performance is positively associated with an increase in the number of highly skilled Greek migrants. We further find a two-way causality between innovation and highly skilled migration. Namely an increase in the number of highly skilled Greek migrants positively affects innovative performance. While most of the recent studies have comprehensively addressed the positive effects of skilled migration on innovation, they have not looked at innovation as a determinant of highly skilled migration. We further discuss the potential implications of our findings on countries displaying low innovative performance coupled with brain drain.     

From Transition to Innovation: Policy Issues in a Knowledge-based Economy

This paper contains a general vision of the main issues on innovation policies in East European new member countries and candidate countries. It is based both on the data taken from the main European benchmarking studies on innovation perspectives, and on the direct experience of advisors who worked in East European pilot countries (Slovenia). This paper focuses on the problems arising from the encounter of European innovation policies and local culture and governance structures in these countries. This situation shows that the innovation phase, following transition, generally calls for a further tuning of EU innovation policies in these countries. In order to develop effective market spin-offs from innovation policies, greater attention should be given to triggering bottom-up policies at regional level by reducing decision-making centralism; lowering the risk of imitative and trend-oriented policies; supporting the birth of new enterprises besides backing the existing ones; developing mostly software rather than hardware policy components. All of this should fit in a general framework recognising the central role of individuals – and thus of culture, starting from entrepreneurial culture – within a knowledge-based innovation process. The recent Slovenian action plan for innovation is included as an example of a strategic plan able to spotlight these main issues.     

TESTING FOR CONVERGENCE OF THE EU REGIONAL ECONOMIES

We examine changes in the economic performance of Western European regional economies, in particular, the degree of convergence in their economic performance (as measured by the growth of GDP per capita) since the mid 1970s when the larger European Union was established. Although results of simple model specifications suggest convergence has occurred, a more completely specified model, which includes structural variables, county dummies and an EM dummy, shows no significant convergence across the European Union's regions in the 1980s.     

EMU and the dynamics of regional per capita income inequality in Europe

This paper analyzes the evolution of per capita income inequality among 197 European regions between 1977 and 2003, and seeks evidence of the relationship between the European Economic and Monetary Union (EMU) and interregional income inequality. The conclusion is that overall interregional income inequality has decreased since 1977, owing to a decrease in between-country inequality. The panel analysis conducted in this paper suggests that the adoption of the common currency has, thus far, exacerbated regional inequality in poorer EU countries, while it has not significantly affected regional inequality within richer countries. Inequality in less advanced countries has also increased with the establishment of the convergence criteria and with the implementation of the Single Market.     

Europeanization of Research and the Role of Universities: An Organizational-Cultural Perspective

Europeanization of research is a process in which the dynamics of the European Framework Programme, of national research systems and local research organizations interfere. Unlike most studies on Europeanization that focus on Europe in relation to national research systems, this article explores the relationship between Europe and universities. The main question addressed by this article is why some universities have more researchers who are active and successful at the European level than others. Our hypothesis is that participation at EU level depends on the organizational cultural bias of university researchers. Following on studies of changes in the research system, the EU framework and institutional innovations of universities, we argue that researchers within universities who develop strong affinity with their own organization will be more successful at the European level. The organizational culture of a university is conceptualized as the aggregate of cultural repertoires and biases that university researchers have at hand to legitimate themselves. To map these biases, we analysed the perception of different processes of accountability. The hypothesis was tested by calculation of the correlation between these cultural biases and different indicators of 'European behaviour'. Data were from an international questionnaire on institutional innovation and Europeanization at universities, which was circulated in eight European countries.     

Introduction to the Special Issue

Organizational innovation is now widely seen tobe a major source of competitive advantage for firms,along with product and process innovation. One of themajor intellectual sources for the upheavals, in which firms strive for some formof international best practice, is thesociotechnical systems tradition, which traces its rootsback to innovations such as semi-autonomous work teamsin manufacturing in the 1960s, associated with the work of theTavistock Institute. An international Colloquium wasstaged in Melbourne, Australia, in May 1995, to explorethe current relevance and contributs to organizational innovation.     

Patterns of organisational innovation: comparison of western and eastern countries in Europe

West European (WE) countries perform better in innovation than their counterparts in Central and Eastern Europe (CEE). In this paper organisational innovation (OI) patterns in CEE compared to WE are studied. The paper exploits the Community Innovation Survey 2008, 2010 and 2012 and uses this firm-level innovation data from 12 countries. The authors introduce a novel approach, which elucidates seven types of OI patterns based on an intensity of firms’ engagement in OI. According to this notation most companies in WE were found to be complex internal innovators or complex innovators. In CEE, the largest share of companies in this period were exclusively work management-oriented. This picture remains the same throughout the three waves of the survey. The differences in OI can largely be explained through the differences in the background variables of the companies or through other innovation types, so if CEE and WE companies converge in these terms, much of the difference in OI also disappears. Nevertheless, there is also a part of the divergence which can be related to the societal level through path dependent developments in these countries.