• Asian Journal of Innovation and Policy
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• v.10 no.1
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• pp.1-38
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• 2021

The paper examines the role of the informal sector on innovation activities of urban formal manufacturing enterprises in India. It provides empirical evidence on firm-level linkages between formal and informal sectors by using the World Bank Enterprise Survey, 2013-14 and the Innovation Follow-up survey, 2014. Primarily, the paper aims to examine the effect of informal sector competition on innovation in urban formal manufacturing enterprises in India. Secondly, the paper analyses the mediation effect of informal sector competition on innovations in the urban manufacturing enterprises. It determines the direct and indirect influence of business regulations and constraints on innovation outcomes through the mediation effect of informal sector competition by using the SEM "Structural Equation Modeling" guidelines. The econometric results show that informal sector competition has a negative effect on the introduction of product innovations while industry-level informal sector competition has a positive effect on product innovation through the local knowledge spillovers from the informal to the formal sector. However, the informal sector competition was found to have no significant effect on the probability of introducing process innovations. Further, the results show the inhibitive role of informal sector competition on innovation in urban formal manufacturing enterprises is more severe for firms with heavy regulatory burdens and is relatively weakened in firms with resource constraints. This suggests that the informal sector plays an important role in the NIS (National Innovation System) in India.

• World Technopolis Review
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• v.1 no.2
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• pp.107-117
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• 2012

As reflected in the title, the main objective of the paper is to explore an appropriate approach to promote technological innovation for developing countries. Aiming to this goal, the paper studies three main innovation system approaches, whose implantation is being attempted in developing countries: first, national innovation systems (NIS), which was developed in OECD countries; second, the system of innovation for development (SID), which is a concept that tries to adapt NIS to developing countries; and third, inclusive innovation which is a pro-poor innovation system. Based on the strengths and the weaknesses of each concept and their potential adaptation in developing countries, the paper proposes an integrated approach of innovation system for developing countries. Compared to developed countries, the concept of innovation system in developing countries should be more complex because it involves not only the formal sector such as enterprises, universities, research institutes, government, and financial system but it also involves NGOs, informal companies, grassroots inventors, local and indigenous knowledge, etc. The last part of the paper discusses the ideas that innovation stakeholders in developing countries can use to promote their proper innovation system.

• Asia-Pacific Journal of Business
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• v.10 no.4
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• pp.49-63
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• 2019

The export regulation of semiconductor core materials, which began with the recent revision of the export management regulations of Japan, raises the need for a new cooperation network. A hierarchical management network that was effective in the fast-follower system requires organic cooperation between the public sector and industry through a multilateral network that emphasizes horizontal co-operation among innovation actors. This study focused on the relational capital that exists among members of a business association such as an association that has been relatively marginalized from previous studies. In addition, this study aimed to analyze the effect of network activity characteristics such as industry-university linkage and informal exchange on technological innovation. Through this, I would like to draw implications for enhancing the effectiveness of the government's R & D support and innovation performance of R & D companies. Based on the results of the SMEs R & D survey, this study found that relational capital, informal exchange had a positive effect on technological innovation performance. However, if the relational capital exceeds a certain level, it is analyzed that there is a negative effect due to group think and lock-in effect. This means that informal exchange channels should be expanded for innovation and enhancement, and relational capital should be managed in consideration of the negative effects that may occur when certain levels are exceeded.

• Journal of Korea Technology Innovation Society
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• v.13 no.2
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• pp.332-364
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• 2010

External linkages affect the performance of small and medium enterprises in diverse ways. This study delves into the impact of inter-organizational collaboration by looking at different facets of performance, such as innovation, sales growth, profit growth, and firm survival. In addition, it explores the influence of informal knowledge spillover from collaborative partners as well as from formal collaborations. The impact is carefully investigated by dividing firm samples into three different sectoral innovation categories: supplier-dominant, production-intensive, and science-based sector suggested by Pavitt (1984). The result highlights the different influence pattern of collaborative relations by partner types according to sectoral categories. The positive results of collaborating with universities and public institutions are identified, and the sales growth by customer linkage is witnessed. The impact is apparent in science-based sectors. The result implies that the risk associated with collaborating with competitors may be moderated by linking performance enhancing collaborative linkages with universities and government institutes.