• 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.

• Journal of Industrial Convergence
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• v.13 no.1
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• pp.75-79
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• 2015

This paper investigates two important relationships relating to firm behaviour and performance using econometric methods. First, the relationship between product market competition and innovation is examined, and then the association between innovation and productivity is separately investigated. Data from the Australian Bureau of Statistics' Business Longitudinal Database are used in the analysis. For every measure of competition considered except one, the results of the modelling are consistent with an anti-Schumpeterian relationship between competition and innovation - that is, firms appear more likely to innovate if they face stronger competition. The results examining the relationship between innovation and productivity, although weaker than those between competition and innovation, suggest that innovation is associated with better productivity outcomes.

• Journal of Korea Technology Innovation Society
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• v.1 no.3
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• pp.285-298
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• 1998

Innovation with strategic interaction is to overcome the technological uncertainty and to create co-evolution through competition among individuals or organizations for the acceleration of innovation. The concept of innovation in the past was concentrated on cooperation rather than on competition for the efficient management of limited resources. However, in order to minimize the technological uncertainty, we need an innovation on the basis of competition between organizations. Competition stimulates technological adaptability. It is on the analogy of complex system. This is to satisfy consumers' needs, to transform the resources into a technology, and to apply for the development of new products and new technologies. If the emergence of a new technology threatens present technology and develops into a new level of technology through inter-relation, it becomes a mutually supporting technologies. When theses effects are simultaneously realized, it is possible for firm to have strategical innovation and to create a mutually evolutionary development. Furthermore, when the competition among more than two individuals or two organizations continues towards the same direction, the mutual competition and cooperation can be expected to create a synergy effect. The competitive environment should be composed of R&D, production, and consumers' choice. This will lead to interaction among organizations through strategic competition and cooperation. Intra-firm competition and Inter-firm competition are required to exist together.

• Proceedings of the Technology Innovation Conference
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• 1997.07a
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• pp.124-159
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• 1997

This paper examines a significant example of accumulation of technology in post war Japan - the development process of the videocasstte recorder (VCR) for home use, and the dynamic evolution process of the mass market. The purpose of analyzing the Japanese home VCR industry is to clarify how and why only the Japanese makers had succeeded in developing home VCR and dominated. the global mass market and to make clear the dynamic process of industrial evolution. This study found out the following facts; 1) Japanese inter-firm interactions in the VCR have been carried out by the structure of "the competition and cooperation among the engaged players" form the initial stage, to growing, and maturing stage. 2) The process of competition and cooperation produced the revolutionary innovation through a continuous systematic development process in the R&D phase. 3) The process of competition and cooperation accelerated the speed of technological progress and the rapid growth of the industry in the growing and maturing stage.

• Knowledge Management Research
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• v.11 no.4
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• pp.1-19
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• 2010

With the increasing importance of ecosystem in a business environment, the value of open innovation is receiving great attention. Under open innovation, companies open their knowledge, capital, and other resources to cooperating companies; on the other hand, under closed innovation companies depend solely on their own resources. In this paper, we compare closed and open innovation using the simulation method, and confirm that in terms of total capital and production of the industry, open innovation provides greater opportunities to the entire ecosystem. Moreover, Schumpeterian competition, which is a dynamic of closed innovation, functions even under open innovation. Our findings highlight that not only small but also large companies can receive the benefit of an enlarged industry under open innovation.

• Proceedings of the Korea Technology Innovation Society Conference
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• 2010.11a
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• pp.203-212
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• 2010

Examining the relation between market structure and the value of innovation is important for competition and STI policy. If the value is large in a specific industry structure, government may lead the industry to take that form to enhance innovation. Our simple calibration in the case of linear demand and constant MC results in the conclusion that the incentive for R&D in the case of major and minor innovation in Cournot competition is less than that of merger and cooperative R&D. This emphasizes again "necessary evil" as a monopoly for innovation.

• Korean System Dynamics Review
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• v.5 no.1
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• pp.73-97
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• 2004

This paper explores the relationship between technological characteristics within process innovation and selection of the firms of different organizational forms in the evolution of an industry. For this purpose, this paper develops a simulation model for industrial change that replicates dynamic competition for process innovation. The simulation analysis found the following causal relationship. First, the stronger innovation impact in terms of productivity jump tends to enlarge the productivity difference among the incumbent firms and increase the speed of productivity catch-up by the large diversified firms, Second, the possibility of entry, and eventual dominance by the large diversified firms increase when the innovation-productivity linkage is stronger and there is less cumulativeness in productivity determination. These results imply that technological characteristics are important factors that have influence on whether or not the large diversified firms can enter and succeed in an industry.

• KDI Journal of Economic Policy
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• v.34 no.2
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• pp.41-53
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• 2012

This paper investigates the effect of competition on innovative activity. In the research contest, the foremost reason for limiting entry into tournaments is to raise the level of contestant's effort and to make the firms compete so that high value of innovation will be procured. Thus, a sponsor (or government) needs to take account into effort-inducing effect as well as effort-reducing effect from competition when she restricts entry. In this paper, this competition effect will be analyzed for the model of procurement for innovation, and it is shown that the individual effort level is not monotonic to the number of contestants.

• Journal of Korea Technology Innovation Society
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• v.5 no.3
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• pp.396-411
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• 2002

This is an analysis of international mobile displays industry. There has been severe competition in market and technology. In technology, There has been competition between Japan, USA and Korea. On the other hand, there has been competition in the products market between Korea, Japan and Taiwan. Recently Korea has catched-up Japan in mid-size display industry. The response of Japanese firms are as follows: technological collaboration with Taiwanese firms in mid-size and concentration in small and large size displays. New competition, however, has started, since new technologies such as TFT-LCD and OELD have been used in products.

• Journal of Korea Technology Innovation Society
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• v.14 no.2
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• pp.246-259
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• 2011

Examining the relation between market structure and the value of innovation is important for competition and STI policy. If the value is large in a specific industry structure, government may lead the industry to take that form to enhance innovation. Our simple calibration in the case of linear demand and constant Me results in the conclusion that the incentive for R&D in the case of major and minor innovation in Cournot competition is less than that of merger and cooperative R&D. This emphasizes again "necessary evil" as a monopoly for innovation.