Whither the Car? China's Automobile Industry and Cleaner Vehicle Technologies

The recent shifts in China's auto industry policy from development only, through development with emission control, to development with cleaner vehicle technology demonstrates that China is attempting to balance the challenges of economic development, environmental protection and energy security. National policies and programmes have played a major role in implementing this shift, but the greening of the auto sector is challenged by major obstacles, such as the high cost of manufacturing cleaner vehicles and building new infrastructure, and the low immediate economic benefits to consumers and producers. It is unrealistic to expect China to limit vehicle production or to transition to hydrogen vehicles quickly. However, China can move to cleaner vehicle technology by implementing both short‐ and long‐term policies that reduce individual conventional vehicle emissions by strengthening vehicle emission standards, advancing fuel quality, promoting hybrid vehicles together with other alternative fuel vehicles, and preparing for an eventual transition to hydrogen vehicles. The government should also establish incentive policies for cleaner vehicle production and purchases, promote investment in infrastructure, strengthen partnerships between government and industry, disseminate information to raise public awareness, and encourage multinationals to use China as a testing ground for innovative hybrid and hydrogen vehicles.     

Determinants of the Uneven Regional Participation of Firms in European Technology Programmes. The 'Low R&D Trap'

Technology is of key importance to the growth of regional firms and economies. Research has shown the association between low technology development or take-up and regional disparities. Hence technology policy is moving closer to the heart of regional policies. European innovation programmes are intended to involve firms, large and small, in international technology research and development networks. The paper focuses on the involvement of Spanish firms in such programmes. Participation tends to be low if business R&D, presence of large firms, and the development of regional innovation systems are also low. Creation of R&D infrastructure through the Structural Funds has now to be prioritized at EU level and also define a new scheme of sectoral priorities in order to support R&D innovation activities in fields diverse from high-tech, if regions are to escape the 'low R&D trap'.     

Context and the role of policies to attract foreign R&D in Europe

This paper explores the effectiveness of policies ‘in’ attracting the foreign research and development (R&D) of multinational enterprises (MNEs) to specific countries in Europe. We develop a macroeconomic investigation covering 29 European countries during the period between 1990 and 2012 in order to address: (a) whether the provision of direct financial support for business R&D is effective for the attraction of foreign R&D; (b) whether direct support is more effective than indirect support for this purpose and (c) whether the link between direct financial support for business R&D and the foreign R&D of MNEs is conditioned by the context within which the support is provided. The results of the analysis show that, first, the provision of direct financial support is generally effective for the attraction of foreign R&D by MNEs. Second, direct support for business R&D is more effective for this purpose than indirect support. Third, the provision of direct financial support for business R&D yields greater returns in contexts that are more socio-economically suitable for knowledge-intensive, innovative activity.     

Big Pharma's Internationalization of R&D to China

China's increasing integration into the global pharmaceutical value chain is occurring at a time when big pharma's traditional R&D model has entered a period of crisis, and when China faces significant challenges in providing healthcare for its huge and rapidly ageing population. Despite China's ambitions of promoting its own pharmaceutical sector, it is likely to continue to depend for some time on significant contributions from foreign companies. While this situation provides considerable opportunities for big pharma companies to expand their markets in China, they are also hoping that offshoring aspects of their R&D to China may contribute to reconfiguring their current R&D model with its weak record of producing new drugs. Drawing on interviews with a small number of pharma R&D centres in Shanghai, patent analyses and industry reports, we provide insights into both the challenges and the opportunities associated with the early stages of establishing such centres in an emerging region with a rapidly growing market. This paper contributes towards a more nuanced view of the internationalization of R&D in emerging regions.     

Delocalization Patterns in University–Industry Interaction: Evidence from the Sixth R&D Framework Programme

Increasing university–industry interaction (UII) and university contribution to the local economy are compatible—conventional wisdom would say. However, similar to other university activities, interaction with industry may be limited due to a lack of absorptive capacity in local firms. The data of those participating in the European Union's (EU's) Sixth R&D Framework Programme (FP6) were used to obtain values for the number and, notably, the budgets of UII projects at the regional level for the EU27. Two types of interactions were considered: inside and outside the region. Our analysis indicates that universities from regions whose firms have low absorptive capacity participate more often in FP6 projects with firms outside the region. Our results highlight the value of policies that facilitate firm R&D to enhance collaboration with regional universities.     

Multinational Knowledge Strategies,Policy and the Upgrading Process of Regions: Revisiting the Automotive Industry in Ostrava and Shanghai

This paper revisits how and why new multinational knowledge-based strategies and multi-level governmental policies influence the upgrading process of regions in developing economies. Automotive multinationals traditionally exploited local asset conditions, but it is shown that they have also been contributing to knowledge-generation systems via investments in R&D centres and cooperation with regional knowledge producers. We discern three elements of the upgrading process of regions—upgrading of domestic firms, subsidiary evolution and establishment of strategic relations with local knowledge institutes—to analyse two case studies: Ostrava (Czech Republic) and Shanghai (China). The cases show that all types of upgrading—product, process, chain and functional—have taken place in the last years, and that follow sourcing may have a positive impact on regional upgrading. These observations provide lessons for governments in developing economies which aim to strengthen innovation-based regional development.     

The Implications of Policy Stability for Renewable Energy Innovation in the United States, 1974–2009

Government support and commitment are of particular importance for renewable energy technology innovation activities, which are highly contingent on policy and market uncertainty. The research focus of this article is to examine the relationship between policy stability in public resource allocation and policy outcomes in renewable energy technologies. With time‐series cross‐sectional analyses, we test effects of both the stability and magnitude of federal R&D expenditures on patent applications in five renewable energy sectors (i.e., solar, wind, hydropower, geothermal, and bioenergy) from 1974 to 2009. The findings show that technology innovation is affected by both the magnitude and stability of government financial commitment. Nevertheless, when industries perceive government support over longer time frames, the magnitude effect loses explanatory power to the stability effect. In addition to federal R&D expenditures, policies pertaining to technology commercialization and marketization are a critical determinant of innovation activities. This study demonstrates that incremental, predictable, and credible expenditures facilitate renewable energy technology development. Conversely, a boom‐bust cycle of resource support fails to translate policy goals into intended results.     

Absorptive Capacity for R&D: The Identification of Different Firm Profiles

Being competitive requires continuously performing product and process innovations nowadays. Because of this reason, the absorption of externally generated R&D is increasingly important for companies. It is well known that companies differ regarding their aptitude for knowledge absorption. This paper aims at the identification of different firm profiles by means of the identification and valuation of drivers that support the absorption of external R&D. For this, we have carried out an empirical work that is based on a random sample of companies located in the northern Spanish county of Biscay. We identify four company conglomerates according to their attitude to absorb externally generated R&D.     

Mapping the Geography of R&D: What Can We Learn for Regional Innovation Policy in the Czech Republic and Beyond?

Administrative regions do not necessarily correspond to areas that are homogenous in terms of innovation intensity. Although this has been recognized in the literature, quantitative evidence that explicitly considers this problem is rare. Using spatial exploratory analysis on detailed regional data derived from a census of R&D performers in the Czech Republic, we identify local spatial clusters of R&D activities and assess the extent of their (mis)match with administrative borders. Overall, the results support the arguments for regionalization of innovation policy. However, the existing policy units do not appear well suited for this purpose. On one hand, there is a need for policy coordination between multiple administrative regions. On the other hand, however, there are diverse patterns within them. Similar problems are likely to haunt the regionalization process in many other countries, which is alarming, as the regional accent of innovation policies becomes ever more vehement over time.     

Regional planning of R&D and science–technology interactions in Andalucia: a bibliometric analysis of patent documents

Andalucia is a southern European LFR (less‐favoured region) with a high degree of self‐government that has allowed it to design its own R&D policies that complement those implemented throughout Spain and the European Union (EU). Recently the Regional Government passed the Third Andalucian Research Plan 2000–2003, an R&D planning instrument that, as has become customary in previous Plans, attributes considerable budgetary weight to the scientific aspects of the science–technology–industry system (Andalucia allocates more of its own resources to promoting research than any other region in Spain). This paper provides deeper insight into the role played by science in driving the technological development of Andalucia, one of the LFRs of the EU. The aim was to answer five fundamental questions: How is basic science utilized by industry in Andalucia? Which sectors are the most dynamic in the employment of scientific know‐how? Which scientific fields are most in demand by industry? Which types of institution utilize scientific knowledge most profusely? What delay is there in incorporating science into technology? The methodology that has been applied for investigating the links between science and technology is based on scientific citations in patent documents (NPC). The results in this article provide relevant information about the interconnection of scientific and technological systems and thus constitute a good point of reference for the development of future R&D plans.     

Regional technology policy and factors shaping local innovation networks in small German cities1

Local innovation networks are considered to be important to innovation and technological change and to growth prospects of regions and cities in Germany. When analysing the local (or regional) innovation system, one should consequently not only investigate horizontal and vertical relations among firms but also the contacts with universities and other research institutions. Furthermore, the role of government agencies and interest groups that provide financial support as well as commercial and technical information should also be taken into account. However, the review of relevant theoretical and empirical investigations related to the German experience shows that such innovation and R&D cooperation networks appear to be less significant than expected. In general various regional technology policy measures adopted in German states (the provision of research infrastructure, establishment of technology centres, innovative small and medium sized enterprises support programmes, etc.) have been more successful in economically better-off large cities than in the rural areas. Apart from offering a critical review of relevant theoretical and empirical research, this study introduces the present regional technology and R&D promotion policies in German states and examines the local innovation systems, taking Landshut as an example.     

Challenges to Bridging Discrepant Knowledge Bases: A Case Study of the Norwegian Centre for Offshore Wind Energy

From a theoretical perspective, it is possible to enhance the innovation of firms and institutions by combining the analytic (scientific) knowledge base of research and development (R&D) institutions with the synthetic (practical) knowledge base of industries. Such combinations of knowledge are also believed to support regional development. One such initiative to bridge knowledge from the R&D sector and industry is the Norwegian Centre for Offshore Wind Energy (NORCOWE). However, as our case study shows, it is hard to bridge knowledge from these two partner groups. We found that this is mainly because of differences in the partners' timelines (long versus short), their attitudes toward knowledge (research based versus experience based), application of the knowledge (knowledge per se versus commercialization), and organizational dimensions (linear/closed process versus interactive/open process). These differences show that the knowledge bases of these two groups may not just be different; they can also be seen as discrepant. We also argue that the NORCOWE initiative is influenced by a “policy push” logic. This implies that the initiative was not properly embedded in the industrial or R&D institutions before being launched, but was instead driven by a political will to promote the development of a new renewable energy source.     

International R&D Cooperation between Low-tech SMEs: The Role of Cultural and Geographical Proximity

Although there is a considerable amount of empirical evidence on inter-firm collaborations within technology-based industries, there are only a few works focussing on R&D cooperation by low-tech firms, especially small and medium-sized enterprises (SMEs). Providing further and new evidence based on a recently built database of CRAFT projects, this study analyses the relationship between technology and proximity in international R&D networks using HOMALS and statistical cluster techniques. The resulting typology of international cooperative R&D projects highlights that successful international cooperative R&D projects are both culturally/geographically closer and distant. Moreover, and quite interestingly, geographically distant projects are technologically more advanced whereas those located near each other are essentially low-tech. Such evidence is likely to reflect the tacit-codified knowledge debate boosted recently by the information and communication technology (ICT) “revolution” emphasized by the prophets of the “Death of Distance” and the “End of Geography”.     

Technological Learning and Innovation in China in the Context of Globalization

A team of China- and U.S.-based geographers develops the theoretical concept of "learning field" to advance the study of technological innovation through networking under conditions of ongoing globalization. The concept is applied in a survey of ca. 100 firms in the Zhengzhou Economic and Technological Development Zone, located in a relatively underdeveloped region of China. The findings emphasize the different patterns and challenges confronting companies of differing size, property rights, and R&D capacities, as well as the variable extent to which technological learning is based on local versus global linkages and networking. Key elements involved in successful technological upgrading (in addition to networking) are identified, including market structure, competitive strategies, and capital. Also examined are the roles played by geographic, relational, and institutional factors in providing opportunities for learning and cooperation among firms in an industrial district. Journal of Economic Literature, Classification Numbers: D21, D83, O31, P20. 8 figures, 3 tables, 67 references.     

Regional Aspects of Collaborative Invention Across National Innovation Systems

Abstract

This article analyzes the association between intraregional collaboration and levels of invention in nine developed countries. Patent data of the Organization for Economic Co-operation and Development (OECD) regions of nine inventive countries are used to determine if a significant positive correlation exists between reliance on own region partners and overall invention. Strong intraregional collaboration is also related to the knowledge bases of technologies and to the tendency for inventors to team up in the first place. Results show strong evidence that inventors in highly inventive regions co-patent more with own region partners and that they have a greater tendency to collaborate in the first place. Support for the hypothesis that information and computer technologies favour own region collaboration and that more biotechnology invention encourages external alliances is mixed. However, there is far less evidence that more biotechnology invention encourages more external alliances. Variation in the results between countries is interpreted as evidence that national innovation systems have distinctive internal locational attributes. The findings refute the assertion that strengthening aspatial network proximities has eclipsed the pivotal role of intraregional linkages in technological advance.     

Regional Scientific Production and Specialization in Europe: The Role of HERD

This paper analyses the effects of R&D expenditure in the higher education sector on the scientific production across regions in Europe 15. Our research questions relate to the regional production of science and the role of academic R&D expenditures on regional scientific output. The results show that money affects the production of scientific results in regions. On average, we found different impacts and lags of R&D expenditure according to the level of regional development. Our findings also suggest that scientific specialization is a significant factor affecting scientific outputs, although its effects differ across disciplines and regions.     

New tech spaces for old tech places? Exploring the network of research and technology organizations across North Italian Regions

This paper explores the industrial affiliation and linkages of research and technology organizations (RTOs) in nine North Italian regions highly specialized in advanced manufacturing and introduces a methodology to assess the potential for a cross-regional technology platform. RTOs are supposed to operate in the development and application phases of innovation and are expected to provide access to key enabling technologies and R&D infrastructures. An original survey panel of 55 Italian RTOs is used and Social network analysis is introduced to assess the potential of RTOs to operate as a single cross-regional platform across key industrial and technology domains. Centrality measures are used to build an empirical model on the factors that drive the higher centrality of RTOs. Centrality is increased by convergence on few key technology priorities and is positively correlated with collaborative ventures, the number of contracts with firms and the presence of distinctive R&D infrastructures. Such a platform rests on specialized regional hubs, it operates with no gatekeepers and it only partially exploits geographical and technological proximity within the network. Future research avenues are discussed to improve the function of technology diffusion of RTOs in a cross-regional perspective.     

Synthesis by microbes or chemists? Pharmaceutical research and manufacturing in the antibiotic era

This article presents a case study of the rise of Pfizer as a leading pharmaceutical company, with a focus on changing relationships between manufacturing technology and R&D between the mid 1940s and the mid 1960s. Pfizer first moved into pharmaceuticals through participation in the US government's penicillin effort during World War II. The company had expertise in deep tank, biological fermentation for the production of chemicals that it adapted to the manufacture of penicillin. Having greatly expanded its biological manufacturing capacity to meet state needs, Pfizer adopted an R&D program to find new microbial antibiotics suited to its manufacturing technology after the war ended. Pfizer's successes in this antibiotic era established the firm as a major pharmaceutical company. In looking to larger commercial markets for drugs, Pfizer, like its competitors, pursued medicines for chronic diseases rather than acute infections. For this pursuit, in the 1950s and 1960s, Pfizer transformed itself into a chemistry‐orientated pharmaceutical firm by reorienting its R&D toward chemistry. This led to a growing divergence between R&D and manufacturing and the eventual replacement of biological manufacturing with chemical manufacturing. The article explores the changing trajectories of R&D and manufacturing at Pfizer, their shifting positions within the firm, and the consequences of these changes and shifts for the firm's strategy and organization.     

How Do Pre-existing R&D Activities in a Region Influence the Performance of Cluster Initiatives? The Case of French Competitiveness Clusters

This article explores the diversity of 66 French competitiveness clusters, which were all accredited in 2005 according to the same specifications, by characterizing the initial context in which they emerged and taking a close look at the link between this initial context and their current performance. Since French competitiveness cluster policy is based on state co-funding of R&D projects, we establish a typology based on a multiple component analysis and a hierarchical ascending classification of the R&D potential of the cluster's territory, the respective R&D efforts of companies and academic laboratories, the kinds of actors setting up the cluster and their pre-existing relationships. We then measure the differences among the five classes relating to their clusters' capacity to obtain state funding for their projects. Our results show that initial context can partially explain competitiveness clusters' performance. Competitiveness clusters in territories possessing significant R&D resources, and involving large companies capable of organizing projects, are the most efficient in obtaining state funding. In contrast, competitiveness clusters without prior cooperation experience perform poorly.     

中国省区间的外资R&D知识溢出及其空间差异研究——基于随机前沿生产模型(SFA)的实证

基于随机前沿生产函数构建的区域知识溢出模型,实证分析了中国省区层面的外资R&D空间溢出效应及其差异。结果显示,我国外资R&D活动不仅对本省存在溢出影响,对邻省亦有重要贡献;东部省区同时受益于其东、中部邻省的外资R&D溢出效应,但中西部省区均只从同一区域且邻近省份的外资R&D活动获益。研究还发现,我国三大区域内部均已结成紧密的省际空间联系,外资R&D双向溢出显著;但东部与中部省区的空间关联度不强,外资R&D呈单向溢出格局;而中部与西部之间目前仍存在明显的空间分割特征,造成彼此之间互无溢出。