Product and process innovation patterns in Polish low and high technology systems

• Authors: Piotr Dzikowski

Abstracts

EN

Research background: While the Sectoral Innovation System (SSI) anticipates technology-related similarities in innovation patterns in the same sectors across countries, the distance to the frontier suggests that there are important differences with respect to the level of national technological development. Most contemporary analyses of sectoral innovation systems are focused on well-developed economies. In contrast, the evidence from developing countries including new EU members are scared and lack dynamics. Purpose of the article: The purpose of this paper is to identify and compare product and process innovation patterns in Polish low and high technology systems. The main assumption is that divergence and convergence in innovation patterns of low- and medium-low technology (LMT) and high technology (HT) systems evolve over time and are strongly influenced by the characteristics of firms, their linkages with other system participants, existing demand, and institutional conditions. Methods: According to the third edition of the Oslo Manual (OECD, 2005), we employ a harmonized questionnaire and methodology to collect unique micro data on innovation.  The survey concerns 5252 firms including 873 firms from HT sector. The scope of the research relates to product and process innovation at least new to the firm. Findings & value added: Our results show that although the intensity of product and process innovation is higher in HT system, both business support institutions and public financial instruments better support firms in LMT sectors. On the other hand, existing demand and market structure favor the emergence of new innovations at the firm level (imitations), but with more emphasis on LMT. The key source of innovation is suppliers, with foreign suppliers in HT and national ones in LMT. In contrast to leading economies, LMT plays a key role in long term economic growth in Poland.

Keywords

EN

innovation; LMT; HT; system; technology

• Publisher: Instytut Badań Gospodarczych
• Journal: Equilibrium. Quarterly Journal of Economics and Economic Policy
• Year: 2022
• Volume: 17
• Issue: 3
• Pages: 747-773

Dates

published

2022

Contributors

author

Piotr Dzikowski

• University of Zielona Góra

• https://orcid.org/0000000250678552

References

• Alhusen, H., Bennat, T., Bizer, K., Cantner, U., Horstmann, E., Kalthaus, M., Proeger, T., Sternberg, R., & Töpfer, S. (2021). A new measurement concep-tion for the ?doing-using-interacting? mode of innovation. Research Policy, 50(4), 104?114. doi: 10.1016/j.respol.2021.104214.
• Andersson, S., Evers, N., & Kuivalainen, O. (2014). International new ventures: rapid internationalization across different industry contexts. European Busi-ness Review, 26(5), 390?405. doi:10.1108/EBR-05-2014-0040.
• Arrow, K. J. (1962). The economic implications of learning by doing. Review of Economic Studies, 29(3), 151?173. doi: 10.2307/2295952.
• Bennat, T. (2022). High innovativeness of SMEs and the configuration of learn-ing-by-doing, learning-by-using, learning-by-interacting, and learning-by-science: a regional comparison applying fuzzy qualitative comparative analy-sis. Journal of the Knowledge Economy, 13(2), 1666?1691. doi: 10.1007/s13132-021-0077 4-1.
• Boschma, R. (2005). Proximity and innovation: a critical assessment. Regional Studies, 39(1), 61?74. doi: 10.1080/0034340052000320887.
• Caerteling, J. S., Halman, J. I. M., Song, M., & Dorée, A. G. (2009). Impact of government and corporate strategy on the performance of technology projects in road construction. Journal of Construction Engineering and Management, 135(11), 1211?1221. doi: 10.1061/(ASCE)CO.1943-7862.0000089.
• Candi, M., Ende, J., & Gemser, G. (2016). Benefits of customer codevelopment of new products: the moderating effects of utilitarian and hedonic radicalness. Journal of Product Innovation Management, 33(4), 418?434. doi: 10.1111/jpim .12286.
• Cassiman, B., & Veugelers, R. (2006). In search of complementarity in innovation strategy: internal R&D and external knowledge acquisition. Management Science, 52(1), 68?82. doi: 10.1287/mnsc.1050.0470.
• Castellacci, F. (2008). Technological paradigms, regimes and trajectories: manu-facturing and service industries in a new taxonomy of sectoral patterns of in-novation. Research Policy, 37(6), 978?994. doi: 10.1016/j.respol.2008.03.011.
• Cattani, G., & Malerba, F. (2021). Evolutionary approaches to innovation, the firm, and the dynamics of industries. Strategy Science, 6(4), 265?289. doi: 10.1287/s tsc.2021.0141.
• Chamberlin, T., & Doutriaux, J. (2010). Sourcing knowledge and innovation in a low-technology industry. Industry and Innovation, 17(5), 487?510. doi: 10.10 80/13662711003633413.
• Chen, L. C. (2009). Learning through informal local and global linkages: the case of Taiwan?s machine tool industry. Research Policy, 38(3), 527?535. doi: 10.10 16/j.respol.2008.10.008.
• Choi, J., & Lee, J. (2018) Firm size and compositions of R&D expenditures: evi-dence from a panel of R&D performing manufacturing firms. Industry and Innovation, 25(5), 459?481. doi: 10.1080/13662716.2017.1297222.
• Chung, S. (Andy), & Kim, G. M. (2003). Performance effects of partnership be-tween manufacturers and suppliers for new product development: the suppli-er?s standpoint. Research Policy, 32(4), 587?603. doi: 10.1016/S0048-7333(02)00 047-1.
• Cohen, W. M., & Levin, R. C. (1989). Empirical studies of innovation and market structure. In R. Schmalensee & R. Willig (Eds.). Handbook of industrial or-ganization (pp. 1059?1107). Netherlands: North-Holland. doi: 10.1016/S1573-448 X(89)02006-6.
• Connolly, M. (2003). The dual nature of trade: measuring its impact on imitation and growth. Journal of Development Economics, 72(1), 31?55. doi: 10.1016/S0 304-3878(03)00067-1.
• Cui, A., & Wu, F. (2015). Utilizing customer knowledge in innovation: anteced-ents and impact of customer involvement on new product performance. Jour-nal of the Academy of Marketing Science, 44(4), 516?538. doi: 10.1007/s11747-015-0433-x.
• Dosi, G., & Nelson, R. R. (2010). Technical change and industrial dynamics as evolutionary processes. In B. H. Hall & N. Rosenberg (Eds.). Handbook of the economics of innovation (pp. 51?127). Netherlands: North-Holland. doi: 10.10 16/S0169-7218(10)01003-8.
• Dosi, G. (1988). Sources, procedures, and microeconomic effects of innovation. Journal of Economic Literature, 26(3), 1120?1171.
• Edquist, C. (1997). Systems of innovation approaches?their emergence and characteristics. In C. Edquist (Eds.). Systems of innovation: technologies, in-stitutions and organizations (pp. 1?63). London: Pinter Publishers.
• Fassio, C. (2015). How similar is innovation in German, Italian and Spanish me-dium-technology sectors? Implications for the sectoral systems of innovation and distance-to-the-frontier perspectives. Industry and Innovation, 22(2), 102?125. doi: 10.1080/13662716.2015.1033160.
• Fontana, R., Martinelli, A., & Nuvolari, A. (2021). Regimes reloaded! A reap-praisal of Schumpeterian patterns of innovation, 1977?2011. Journal of Evolutionary Economics, 31(5), 1495?1519. doi: 10.1007/s00191-021-00735-6.
• Freel, M. S. (2003). Sectoral patterns of small firm innovation, networking and proximity. Research Policy, 32(5), 751?770. doi:10.1016/S0048-7333(02)00 084-7.
• Frenz, M., & Lambert, R. (2009). Exploring non-technological and mixed modes of innovation across countries. In Innovation in firms: a microeconomic per-spective. Paris: OECD Publishing. doi: 10.1787/9789264056213-4-en.
• Galindo-Rueda, F., & Verger, F. (2016). OECD taxonomy of economic activities based on R&D intensity. OECD Science, Technology and Industry Working Papers, 2016/04. doi: 10.1787/5jlv73sqqp8r-en.
• Grimpe, C., & Sofka, W. (2009). Search patterns and absorptive capacity: low- and high-technology sectors in European countries. Research Policy, 38(3), 495?506. doi: 10.1016/j.respol.2008.10.006.
• Hansen, U. E., & Lema, R. (2019). The co-evolution of learning mechanisms and technological capabilities: lessons from energy technologies in emerging economies. Technological Forecasting and Social Change, 140, 241?257. doi: 10.1 016/j.techfore.2018.12.007.
• Hauknes, J., & Knell, M. (2009). Embodied knowledge and sectoral linkages: an input?output approach to the interaction of high- and low-tech industries. Research Policy, 38(3), 459?469. doi: 10.1016/j.respol.2008.10.012.
• Hervas-Oliver, J.-L., Albors Garrigos, J., & Gil-Pechuan, I. (2011). Making sense of innovation by R&D and non-R&D innovators in low technology contexts: a forgotten lesson for policymakers. Technovation, 31(9), 427?446. doi: 10.1016 /j.technovation.2011.06.006.
• Hirsch?Kreinsen, H. (2008). ?Low?Tech? innovations. Industry and Innovation, 15(1), 19?43. doi: 10.1080/13662710701850691.
• Hirsch?Kreinsen, H., Jacobson, D., & Robertson, P. L. (2006). ?Low?tech? indus-tries: innovativeness and development perspectives?a summary of a Europe-an research project. Prometheus, 24(1), 3?21. doi: 10.1080/08109020600563762.
• Huang, C., Arundel, A., & Hollanders, H. (2010). How firms innovate: R&D, non-R&D, and technology adoption. UNU-MERIT Working Papers.
• Johnsen, T. E. (2009). Supplier involvement in new product development and innovation: taking stock and looking to the future. Journal of Purchasing and Supply Management, 15(3), 187?197. doi: 10.1016/j.pursup.2009.03.008.
• Kastelli, I., Tsakanikas, A., & Caloghirou, Y. (2018). Technology transfer as a mechanism for dynamic transformation in the food sector. Journal of Technology Transfer, 43(4), 882?900. doi: 10.1007/s10961-016-9530-3.
• Kirner, E., Kinkel, S., & Jaeger, A. (2009). Innovation paths and the innovation performance of low-technology firms?an empirical analysis of German in-dustry. Research Policy, 38(3), 447?458. doi: 10.1016/j.respol.2008.10.011.
• Klepper, S. (1996). Entry, exit, growth, and innovation over the product life cycle. American Economic Review, 86(3), 562?583.
• Klepper, S. (1997). Industry life cycles. Industrial and Corporate Change, 6(1). 145?182. doi: 10.1093/icc/6.1.145.
• Klevorick, A. K., Levin, R. C., Nelson, R. R., & Winter, S. G. (1995). On the sources and significance of interindustry differences in technological opportu-nities. Research Policy, 24(2), 185?205. doi: 10.1016/0048-7333(93)00762-I.
• Kuen-Hung, T., & Wang, J.-C. (2009). External technology sourcing and innova-tion performance in LMT sectors: an analysis based on the Taiwanese techno-logical innovation survey. Research Policy, 38(3), 518?526. doi: 10.1016/j.re spol.2008.10.007.
• Leiponen, A., & Drejer, I. (2007). What exactly are technological regimes? Intra-industry heterogeneity in the organization of innovation activities. Research Policy, 36(8), 1221?1238. doi: 10.1016/j.respol.2007.04.008.
• Lemeshow, S., Sturdivant, R. X., & Hosmer Jr, D. W. (2013). Applied logistic regression. New York: John Wiley & Sons.
• Liang, J., & Goetz, S. J. (2018). Technology intensity and agglomeration econo-mies. Research Policy, 47(10), 1990?1995. doi: 10.1016/j.respol.2018.07.006.
• Lundvall, B. A. (1988). Innovation as an interactive process: from user-producer interaction to the national system of innovation. In G. Dosi, C. Freeman, R. Nelson, G. Silverberg & L. G. Soete (Eds.). Technical change and economic theory (pp. 349?369). London: Pinter Publishing.
• Lundvall, B., & Johnson, B. (1994). The learning economy. Journal of Industry Studies, 1(2), 23?42. doi: 10.1080/13662719400000002.
• Malerba, F. (1992). Learning by firms and incremental technical change. Economic Journal, 102(413), 845?859. doi: 10.2307/2234581.
• Malerba, F. (2002). Sectoral systems of innovation and production. Research Policy, 31(2), 247?264. doi: 10.1016/S0048-7333(01)00139-1.
• Malerba, F. (2004). Sectoral systems of innovation: concepts, issues and analyses of six major sectors in Europe. New York: Cambridge University Press.
• Malerba, F. (2005). Sectoral systems of innovation: a framework for linking in-novation to the knowledge base, structure and dynamics of sectors. Economics of Innovation and New Technology, 14(1?2), 63?82. doi: 10.1080/1043859042000 228688.
• Malerba, F., & Orsenigo, L. (1997). Technological regimes and sectoral patterns of innovative activities. Industrial and Corporate Change, 6(1), 83?118. doi: 10.1 093/icc/6.1.83.
• Mattes, K., Zanker, C., & Som, O. (2015). Managing innovation in non-R&D intensive firms. In O. Som, & E. Kirner (Eds.). Low-tech innovation: competi-tiveness of the German manufacturing sector (pp. 165?197). Switzerland: Springer International Publishing. doi: 10.1007/978-3-319-09973-6_10.
• McKelvey, M., & Ljungberg, D. (2017). How public policy can stimulate the capabilities of firms to innovate in a traditional industry through academic engagement: the case of the Swedish food industry. R&D Management, 47(4), 534?544. doi: 10.1111/radm.12224.
• Mendonça, S. (2009). Brave old world: accounting for ?high-tech? knowledge in ?low-tech? industries. Research Policy, 38(3). 470?482, doi: 10.1016/j.respol .2008.10.018.
• Mu?oz, C., Galvez, D., Enjolras, M., Camargo, M., & Alfaro, M. (2022). Rela-tionship between innovation and exports in enterprises: a support tool for syn-ergistic improvement plans. Technological Forecasting and Social Change, 177, 121489. doi: 10.1016/j.techfore.2022.121489.
• Nelson, R., & Winter, S. G. (1982). An evolutionary theory of economic change. Cambridge: Harvard University Press.
• Nowiński, W., & Rialp, A. (2013). Drivers and strategies of international new ventures from a Central European transition economy. Journal for East European Management Studies, 18(2), 191?231. doi: 10.5771/0949-6181-2013 -2-191.
• Nouman, M., Yunis, M. S., Atiq, M., Mufti, O., & Qadus, A. (2022). The forgot-ten sector?: an integrative framework for future research on low- and medium-technology innovation. Sustainability, 14(6), 3572. doi: 10.3390/su14063572.
• OECD (2005). Oslo manual: guidelines for collecting and interpreting innovation data. Paris and Luxembourg: OECD/Euro-stat.
• Pavitt, K. (1984). Sectoral patterns of technical change: towards a taxonomy and a theory. Research Policy, 13(6), 343?373. doi: 10.1016/0048-7333(84)90018-0.
• Pavitt, K., Robson, M., & Townsend, J. (1987). The size distribution of innovating firms in the UK: 1945-1983. Journal of Industrial Economics, 35(3), 297?313. doi: 10.2307/2098636.
• Pittaway, L., Robertson, M., Munir, K., Denyer, D., & Neely, A. (2004). Network-ing and innovation: a systematic review of the evidence. International Journal of Management Reviews, 5?6(3?4), 137?168. doi: 10.1111/j.1460-8545.2004. 00101.x.
• Radicic, D., & Pinto, J. (2019). Collaboration with external organizations and technological innovations: evidence from Spanish manufacturing firms. Sustainability, 11(9), 2479. doi: 10.3390/su11092479.
• Reichert, F. M., Torugsa, N. (Ann), Zawislak, P. A., & Arundel, A. (2016). Ex-ploring innovation success recipes in low-technology firms using fuzzy-set QCA. Journal of Business Research, 69(11), 5437?5441. doi: 10.1016/j.jbusres.2016. 04.151.
• Robertson, P. L., & Patel, P. R. (2007). New wine in old bottles: technological diffusion in developed economies. Research Policy, 36(5), 708?721. doi: 10.10 16/j.respol.2007.01.008.
• Robertson, P. L., Pol, E., & Carroll, P. (2003). Receptive capacity of established industries as a limiting factor in the economy?s rate of innovation. Industry and Innovation, 10(4), 457?474. doi: 10.1080/1366271032000163685.
• Robertson, P., Smith, K., & von Tunzelmann, N. (2009). Innovation in low- and medium-technology industries. Research Policy, 38(3), 441?446. doi: 10.1016/ j.respol.2008.10.019.
• Roger, E. (1995). Diffusion of innovations. New Jork: The Free Press.
• Rosenberg, N. (1982). Inside the Black Box: technology and economics. London: Cambridge University Press.
• Sakka, O., St-Pierre, J., & Bahri, M. (2019). Innovation collaborations in low-to-medium tech SMEs: the role of the firm? innovation orientation and use of ex-ternal information. International Journal of Innovation Management, 23(02), 1950011. doi: 10.1142/S1363919619500117.
• Santamaría, L., Nieto, M. J., & Barge-Gil, A. (2009). Beyond formal R&D: taking advantage of other sources of innovation in low- and medium-technology in-dustries. Research Policy, 38(3), 507?517. doi: 10.1016/j.respol.2008.10.004.
• Schmookler, J. (1966). Invention and economic growth. New York: Harvard Uni-versity Press.
• Schumpeter, J. A. (1934). The theory of economic development. Cambridge, MA: Harvard University Press.
• Schumpeter, J. A. (1942). Capitalism, socialism and democracy. New Jork: Har-per and Bros.
• Segarra-Ciprés, M., Bou-Llusar, J. C., & Roca-Puig, V. (2012). Exploring and exploiting external knowledge: the effect of sector and firm technological in-tensity. Innovation, 14(2), 203?217. doi: 10.5172/impp.2012.14.2.203.
• Thornhill, S. (2006). Knowledge, innovation and firm performance in high- and low-technology regimes. Journal of Business Venturing, 21(5), 687?703. doi: 10.1016/j.jbusvent.2005.06.001.
• Trott, P., & Simms, C. (2017). An examination of product innovation in low- and medium-technology industries: cases from the UK packaged food sector. Research Policy, 46(3), 605?623. doi: 10.1016/j.respol.2017.01.007.
• von Hippel, E. (1988). The sources of innovation. New Jork: Oxford University Press.
• von Hippel, E. (2007). Horizontal innovation networks - by and for users. Industrial and Corporate Change, 16(2), 293?315. doi: 10.1093/icc/dtm005.
• Wang, C., Rodan, S., Fruin, M., & Xu, X. (2014). Knowledge networks, collabora-tion networks, and exploratory innovation. Academy of Management Journal, 57(2), 484?514. doi: 10.5465/amj.2011.0917.
• Winter, S. G. (1984). Schumpeterian competition in alternative technological regimes. Journal of Economic Behavior & Organization, 5(3), 287?320. doi: 10.1016/0167-2681(84)90004-0.
• Wu, A., & Wang, C. C. (2017). Knowledge search pattern and product innovation of firms in low and high-technology industrial clusters: a knowledge related-ness perspective. Tijdschrift Voor Economische En Sociale Geografie, 108(4), 488?502. doi: 10.1111/tesg.12226.
• Zheng, G., Guo, Y., & Wang, Y. (2016). Non-R&D innovation patterns in Chinese SMEs: an empirical study from Zhejiang Province. International Journal of Innovation and Technology Management, 13(6), 1640014. doi: 10.1142/S0219 877016400149.

Identifiers

DOI

10.24136/eq.2022.026

Biblioteka Nauki

22443139