• Title/Summary/Keyword: Incremental Innovation

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A Study on the Bottom-up Long-run Incremental costing Methodology for the Korean Mobile Network (이동통신망 상호접속요금 산정을 위한 장기증분원가모형에 관한 연구)

  • Choe Seon-Mi;Hyeon Chang-Hui
    • Proceedings of the Korea Technology Innovation Society Conference
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    • 2004.05a
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    • pp.25-36
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    • 2004
  • The key objective of this paper is to suggest a pilot model for mobile network interconnection charge calculation by bottom-up long-run incremental costing methodology. Interconnection issues have lately attracted considerable attention by network operators and regulators. However there is no standard by all the network operators' agreement. The costing method is an acute problem because the interconnection charge is directly related to the network operators' revenue. Thus Korea has planned to launch the new interconnection policy based on the current traffic distribution and then we simulate the model in a sample area with virtual data. The results propose objective and reasonable guideline for the mobile network element cost calculation. It can be helpful for calculating price floor or bottom-up long run incremental interconnection charge by regulator.

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Technology Licensing Agreements from an Organizational Learning Perspective

  • Lee, JongKuk;Song, Sangyoung
    • Asia Marketing Journal
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    • v.15 no.3
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    • pp.79-95
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    • 2013
  • New product innovation is a process of embodying new knowledge in a product and technology licensing is getting popular as a means to innovations and introduction of new product to the market in today's competitive global market environment. Incumbents often rely on technology licensing to access new product opportunities created by other firms. Prior research has examined various aspects of technology licensing agreements such as specific contract terms of licensing agreements, e.g., distribution of control rights, exclusivity of licensing agreements, cross-licensing, and the scope of licensing agreements. This study aims to provide answers to an important, but under-researched question: why do some incumbents initiate more licensing agreement for exploratory learning while others do it for exploitative learning along the innovation process? We attempt to extend our knowledge of licensing agreements from an organizational learning perspective. Technology licensing as a specific form of interfirm linkages can be initiated with different learning objectives along the process of new product innovation. The exploratory stages of the innovation process such as discovery or research stages involve extensive searches to create new knowledge or capabilities, whereas the exploitative stages of the innovation process such as application or test stages near the commercialization are more focused on developing specific applications or improving their efficiency or reliability. Thus, different stages of the innovation process generate different types of learning and the resulting technological resources. We examine when incumbents as licensees initiate more licensing agreements for exploratory learning objectives and when more for exploitative learning objectives, focusing on two factors that may influence a firm's formation of exploratory and exploitative licensing agreements: 1) its past radical and incremental innovation experience and 2) its internal investments in R&D and marketing. We develop and test our hypotheses regarding the relationship between a firm's radical and incremental new product experience, R&D investment intensity and marketing investment intensity, and the likelihood of engaging in exploratory and exploitive licensing agreements. Using data collected from various secondary sources (Recap database, Compustat database, and FDA website), we analyzed technology licensing agreements initiated in the biotechnology and pharmaceutical industries from 1988 to 2011. The results of this study show that incumbents initiate exploratory rather than exploitative licensing agreements when they have more radical innovation experience and when they invest in R&D activities more intensively; in contrast, they initiate exploitative rather than exploratory licensing agreements when they have more incremental innovation experience and when they invest in marketing activities more intensively. The findings of this study contribute to the licensing and interfirm cooperation studies. First, this study lays a foundation to understand the organizational learning aspect of technology licensing agreements. Second, this study sheds lights on how a firm's internal investments in R&D and marketing are linked to its tendency to initiate licensing agreements along the innovation process. Finally, the findings of this study provide important insight to managers regarding which technologies to gain via licensing agreements. This study suggests that firms need to consider their internal investments in R&D and marketing as well as their past innovation experiences when they initiate licensing agreements along the process of new product innovation.

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A Study on the Impact of Consumption Value on Buying Behavior of Digital Convergence Product (컨버전스 제품의 소비가치 도출을 위한 탐색적 연구 - 로봇제품의 소비가치분석을 중심으로-)

  • Hur, Won-Moo;Kim, Jea-Yung;Park, Kyung-Do
    • Journal of Korea Technology Innovation Society
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    • v.10 no.3
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    • pp.458-485
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    • 2007
  • This study aims to examine the effects of consumption values on digital convergence products buying behavior. Especially, this study examines the nature of consumption values that differentiate incremental innovation products from radical innovation product. We first categorize the convergence products into incremental innovation products and radical innovation products based on the degree of innovation, and then study the differences of consumption values of each product group. The empirical research is conducted on the premise that the consumer's value can play an important role in the process of selecting convergence product types. Although some factors related to function value has been accounted much of, various consumer values have not been studied in the context of convergence product consumption behavior. This research assumes that consumer choice behavior is a function of multiple consumption values such as functional value, social value, emotional value, and epistemic value. The result shows that consumption values of digital convergence products are made up of 4 consumption values-emotional, epistemic, social and functional values. Also, these consumption values affect the purchase intention of consumers. Purchase intention of radical innovation convergence products is affected by emotional value, epistemic value, and functional values. Purchase intention of incremental innovation convergence products is affected only by functional value. Demographic variables such as sex, age and income don't have influence on purchase intention. Our findings suggest that choice behavior of digital convergence product is influenced by several consumption values. Managerially, our result emphasize that convergence products must satisfy the consumption values that consumers are seeking in order to be successful in the market. the theoretical and practical implications of these findings are discussed as well.

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Towards Effective Regional Innovation Systems in Korea (효율적인 지역혁신체제 구축전략)

  • 정선양
    • Journal of Technology Innovation
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    • v.8 no.1
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    • pp.31-48
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    • 2000
  • Nowadays the role of region has been increased, as knowledge, science and technology become important in economic development. This paper argues that a system approach is needed to enhance regional S&T capabilities. Under the this approach, we can identify a concept of regional innovation systems as sub-systems of a national innovation system. This paper investigates Korean regional innovation systems based on R&D budget of regional governments. According to this paper, Korean regional governments' R&D investment is very insufficient. There were no co-relationship between regional governments' fiscal autonomy from the central government and their R&D investment. This paper argues that such a poor investment will restrict the future development of Korean regional innovation systems. Therefore, this paper suggests some strategic options for the development of regional innovation systems as follows. First, regional governments should increase their R&D budget. Second, their R&D efforts should be related with their specific industrial sectors. Third, they should target not only to create new promising industrial sectors but also to enhance technological capabilities of existing sectors. Fourth, their target group should be small and medium-sized enterprises. Finally, regional governments should adopt small and incremental approach to improve their innovation systems.

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National Embeddedness of Economic Activities: Industrial and Technology Policy in Korea and Taiwan

  • Gammeltoft, Peter;Sornn-Friese, Henrik
    • Journal of Technology Innovation
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    • v.13 no.2
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    • pp.1-22
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    • 2005
  • This paper adopts an embeddedness perspective and discusses rationales for government intervention in relation to economic development. Looking at East Asian experiences with industrial and technology policy the paper examines the general requirements, specific areas of focus and appropriate techniques for industrial and technology policy. Eight generic policy requirements are identified, viz. government capacity; monitoring and adjustment; policy sequencing; incremental upgrading; progressive market reliance; performance-orientation; selectivity; and flexibility.

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Corporate Innovation and Business Performance Prediction Using Ensemble Learning (앙상블 학습을 이용한 기업혁신과 경영성과 예측)

  • An, Kyung Min;Lee, Young Chan
    • The Journal of Information Systems
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    • v.30 no.4
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    • pp.247-275
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    • 2021
  • Purpose This study attempted to predict corporate innovation and business performance using ensemble learning. Design/methodology/approach The ensemble techniques uses weak learning to create robust learning, which combines several weak models to derive improved performance. In this study, XGboost, LightGBM, and Catboost were used among ensemble techniques. It was compared and evaluated with traditional machine learning methods. Findings The summary of the research results is as follows. First, the type of innovation is expanding from technical innovation to non-technical areas. Second, it was confirmed that LightGBM performed best for radical innovation prediction, and XGboost performed best for incremental innovation prediction. Third, Catboost performed best for firm performance prediction. Although there was no significant difference in predictive power between ensemble techniques, we found that comparative analysis was necessary to confirm better prediction performance.

External Open Innovation Strategy and Innovation Outcome in SMEs (중소기업의 개방형 탐색 전략과 혁신활동)

  • Yang, Ji Yeon;Roh, Tae Woo
    • Knowledge Management Research
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    • v.16 no.4
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    • pp.1-16
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    • 2015
  • This paper aims to explore the small and medium sized enterprises'(SMEs') technological innovation through an open innovative strategy. Researchers have identified open innovation as external search 'breadth' and 'depth'. Although an open innovation strategy is well known as an effective way for SMEs' innovation, this stream of research examines differences between pursuing breadth of external knowledge and depth of external knowledge for SEMs' innovation. The sample comprises a total of 1106 SMEs included in the Korean Innovation Survey, and logistic regression analysis and odds ratio comparison were used to evaluate the relationship between external knowledge search and innovation outcomes. The results show that both 'breadth' and 'depth' positively affect the SMEs' innovation. When SMEs are simultaneously pursuing external searching for breadth and depth, however, a negative result on innovation outcome followed because of the lack of their internal resources and capacities. Despite these contributions, we have certain limitations that can be regarded as means of future research. Even though breadth and depth are adopted to measure the way of how a firm sources the external knowledge, companies may place the different weight on each source of knowledge. And also, it is difficult to understand how the knowledge gained through external search contributes to a firm's incremental and radical innovation, respectively.

디지털화에 따른 조직혁신의 전개과정 - 개념적 준거틀의 개발 -

  • 송위진;박진서
    • Journal of Technology Innovation
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    • v.10 no.1
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    • pp.148-173
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    • 2002
  • This study examines the impact of the Internet on the organizational innovation. With the introduction of digital technology, the entire organizational process and structure is now being restructured. The purpose of this study is to develop a framework to help classify the organizational innovations and understand organizational innovation processes. This study suggests that the wide diffusion of digital technology has affected the modularization of the organizational routines and processes. The modularization of knowledge and organization give rise to a new organizational architecture, a modular architecture. In the Fordist regime, the characteristics of organizations were depicted as vertically integrated and tightly coupled system. The organizational processes and routines were tightly linked and integrated. However, the diffusion of Internet, which has a tendency to disassemble this tightly coupled system, has resulted in the emergence of loosely coupled and vertically disintegrated system. Eventually the modular architectures are emerging as a new organizational paradigm in the post-Fordist regime. In this study, the modes of organizational innovation is classified as follows. If the organizational innovation enhances both existing organizational components and tile tightly coupled architecture, it is incremental innovation (Mode 1): if it destroys both existing components and the tightly coupled architecture, it is radical innovation (Mode 4): however if only the tightly coupled architecture is transformed into the modular architecture and the codification of organizational component is enhanced, the innovation is architectural (Mode 3). The last one is component innovation (Mode 2), in which existing organizational components are destroyed but tightly coupled architecture is enhanced. It is argued that the organizational innovation process follows Mode I$\longrightarrow$ Mode II $\longrightarrow$ Mode III $\longrightarrow$ Mode IV in order.

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