► We study the persistence of R&D and innovation in a panel of manufacturing firms. ► We control for unobserved heterogeneity and initial conditions. ► We find that R&D (input) and innovation ...(output) are highly persistent. ► Past innovative behaviour is decisive in explaining the current state of R&D and innovation. ► R&D persistence is higher than innovation persistence.
This study focuses on the persistence of innovation in a panel of Spanish manufacturing firms for the period 1990–2008. In particular, we analyse whether persistence in firms’ innovation activities over time is the result of previous experience, the dynamic capabilities of the firm or industry-market related characteristics. We find that R&D (input) and innovation (output) are highly persistent at the firm level. After controlling for unobserved heterogeneity and initial conditions and by using a dynamic random effects probit, we conclude that there are similar determinants of persistence in R&D and innovative activities. Among external/environmental factors, market dynamism affects R&D and innovation. Regarding firm specific characteristics, size and outsourcing also have a positive impact on both processes. Past innovative behaviour is clearly more decisive in explaining the current state of R&D and innovation activities than external factors or firm-level heterogeneity.
Although literature on open eco-innovation has recently increased, empirical research on this topic in traditional low-tech sectors is still relatively scarce. The present paper examines how open ...innovation activities can promote eco-innovations in the food industry, an industry that is sometimes considered a technological laggard with traditionally low cooperation. The paper focuses on the relationship between a firm's interactions with stakeholders, particularly the breadth and the depth of the firm's knowledge network and the firm's propensity to develop different types of eco-innovations. Using a novel and more accurate measure of breadth and depth and addressing endogeneity with instrumental variables, the paper studies their influence on technological eco-innovation in a random sample of 279 food firms in Spain. The results show that coordination difficulties and bounded rationality explain an inverted U shape in the relationship of breadth of external knowledge sources and the propensity to eco-innovate both in product and process eco-innovations. Additionally, our findings confirm that it is important to rely on deep, frequent and intense relationships with stakeholders in order to create the required atmosphere to foster fluent knowledge sharing among partners specially to develop eco-process innovations, but a learning effect appears. Future research should extend the analysis to other countries and sectors to address the limitations of this study.
•External search breadth is positively related to eco-innovation propensity.•Coordination with partners diminishes eco-innovation propensity.•Deep relationships improve knowledge flow among partners.•Deep, frequent and intense relationships foster eco-process innovations.
Abstract The role played by leaders in the adoption of eco‐innovations (EIs) by small and medium enterprises (SMEs) is crucial, but there is still little evidence regarding the influence of leaders ...on EIs. Despite the extensive literature on EI, studies that empirically evaluate the association between the role of SME leaders (CEOs, top managers, and board members) on the delimitation of the barriers to EI are lacking. The relationship between combinations of leader personality traits and the adoption of EI from a sensemaking perspective is examined to address this research gap. In addition, fsQCA analysis was applied. The responses of 40 SME leaders revealed that configurations involving barriers and personal traits have led to several solutions in which conscientiousness, openness, and either the presence or negation of neuroticism by SME managers were relevant. Moreover, the offset between financial barriers and the lack of public funding for EIs emerges in all eco‐innovative success solutions. These results show that different combinations of personality traits interact with different EI barriers. Therefore, the obstacles to EI depend on the interpretations of the leader rather than being one‐size‐fits‐all. Based on sensemaking theory, as taken from organizational studies and the literature on microfoundations, these findings enhance our understanding of the influence of individual‐level psychological traits on EI adoption. Furthermore, practical implications are presented for SMEs with the goal of adopting sustainable innovative strategies.
Although the antecedents of environmental innovation and open innovation strategies have been well-studied separately, the relationship between a firm's openness and environmental technological ...innovation still remains an interesting topic to research, especially in terms of the various modes of openness on the one hand and the product-process distinction on the other. This study relies on data from the French Community Innovation Survey to differentiate the association of three dimensions of open inbound innovation search strategies - acquiring, sharing, and information sourcing - with environmental product (ecoproduct) and process (ecoprocess) innovations. Inbound innovation, attained through the acquisition of machinery, equipment, and software, is more likely to be associated with ecoprocess than ecoproduct innovations; external R&D only drives ecoproducts. Inbound sharing through R&D cooperation seems associated with the introduction of both ecoproducts and ecoprocesses. For inbound innovation sourcing, external market sources of information are positively associated with firms' involvement in all types of environmental innovation.
The purpose of this paper is to analyze the factors influencing the adoption of environmental innovations towards a circular economy (CE) by the EU firms, with special focus on technological ...capabilities and external support. A multivariate probit model is specified to allow the distinction between three types of eco‐innovative practices: Reduce, Recycle, and Redesign technological processes. Using a novel taxonomy based upon the distinction between narrowing, closing, and slowing loops in the use of resources, we find that financial and technological capabilities are essential drivers for all types of CE actions in the European firms. Similar findings are found for the public funding support but only when the firms are recycling (closing resource loops) and redesigning (slowing resource loops). Knowledge from private companies (pecuniary mode) is relevant to Reduce and Recycle strategies. These two eco‐innovative practices are also shown in firms with a wide external knowledge network. Results also show that there is an inverted U‐shaped relation between the diversity of collaboration and the circular Redesign of products. The paper ends up with some implications for practitioners and policy makers.
Although eco-innovation in the agri-food sector is receiving increasing amounts of attention, there is a lack of information about the specific conditions that encourage firms to develop ...eco-innovation strategies internally. Our empirical method relies on the data of Spanish firms operating in the agri-food sector, and uses the Qualitative Comparative Analysis (QCA). Specifically, we identify the recipes of antecedent conditions that effectively foster the internal development of technological eco-innovation, and then we analyze whether differences exist in the internal development of product and process eco-innovations. The results show that different combinations of conditions can yield internally developed eco-innovation, but all of them indicate that cooperation with stakeholders is the key to fostering technological eco-innovation in this industry. This conclusion encourages the creation of policies and incentives to promote cooperation in order to improve the sustainability of the sector.
This paper analyses the influence of food safety standards related to aflatoxin contamination on the pistachio trade of the world's two leading pistachio producers (the United States and Iran) during ...the period 1996–2014. Using diverse econometric procedures, the estimation of extended gravity models shows that both countries benefit from stricter food safety standards imposed by importing countries. The results also show that US exports are not negatively affected by the distance from the importer (higher differentiation), while the impact of distance on the Iranian pistachio trade is negative. The results reveal that stricter food safety requirements are positive for both producing countries, regardless of their level of economic development, resulting in a “win–win” scenario. However, the findings also confirm that other variables, such as distance, the role of producers' associations and quality perception, should be considered. EconLit citations: F10, F63, I18, Q17.
In the context of international entrepreneurship, the aim of this study is to explore the relationship between servitization and export behavior in manufacturing firms. This relationship would be an ...example of international entrepreneurship where firms produce and sell both manufactures and services as a way of increase differentiation and create value in order to penetrate and stay in foreign markets. Our findings show that servitized firms are more likely to internationalization in terms of starting and staying in exporting markets than pure manufacturing firms, mainly when the firms are small, which suggests an enhancing effect of servitization on international entrepreneurship, particularly for smaller firms. These results support the idea that servitization upgrades manufacturing firms’ ability to attract foreign clients and to maintain them by further differentiation of their products through the offering of services that meet customers’ needs. Moreover, since they are often highly customized services, consumers’ loyalty increases and so does the ability of servitized firms to resist replacement by competitors.
This paper investigates the effects of mergers and acquisitions (M&A) on corporate research and development (R&D) strategies using firm‐level data on the Spanish manufacturing sector. The focus of ...the study is to determine whether M&A affects R&D portfolios by increasing or decreasing innovation input, such as in‐house R&D, external R&D or both. The results show that M&A has a negative and significant impact on R&D intensity, decreasing in‐house R&D and external technological sourcing. M&A enables the rationalization of R&D capacity, implying a decrease in R&D efforts. M&A negatively affects both types of R&D, but, on average, the effect is more negative on external R&D.
Purpose
The purpose of this paper is to explore the effects of mergers and acquisitions (M&As) on innovation and profitability in large European firms.
Design/methodology/approach
Using information ...from a unique micro-longitudinal database of top European R&D investors and information from the European Commission (EC) Merger Control Authority, dynamic panel estimations with firm-level fixed effects are performed. Moreover, the paper presents a qualitative case study of a merger in the European electronic and electrical equipment industry.
Findings
The analysis of a sample of 562 M&As authorized by the EC Merger Control Authority shows that mergers positively influence the R&D intensity and profitability of top companies in the European Union over the period 2004–2012. Furthermore, empirical evidence shows that the timing and magnitude of these effects differs. In particular, the positive effect of mergers on R&D intensity is found for the short and large term while they influence profitability only in the large term.
Originality/value
This paper makes several contributions. First, unlike other studies on this topic, it investigates the effects of M&As using firm-level panel data on the top 1,000 European R&D companies instead of only examining a case study. Second, a unique data set has been used, which collects information on large European firms from the European Industrial R&D Investment Scoreboard and the EC antitrust authority. Finally, the paper accounts for the casual link between innovation effort and profitability when evaluating the potential effect of M&As on the R&D intensity and profitability of large European firms.
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