Journal Article DOI: http://doi.org/10.1504/ijtlid.2018.093723
A preprint version of the manuscript is available here as PDF file for download
Preprint DOI: https://doi.org/10.26092/elib/216
Research article published in: International Journal of Technological Learning, Innovation and Development (IJTLID), Vol. 10 (3/4), 2018. Authored by Dr. Mahmood H. Shubbak
Award Winner:
Herbert-Simon Prize for the best conference paper at the 30th annual conference of the European Association for Evolutionary Political Economy, Nice (France), Sep. 2018
Abstract
This paper explores the patterns of innovation and network embeddedness and their impact on economic performance at the firm level. Identifying the main innovators in solar PV industry over 1995-2014 with patent and market share indicators, the landscape of their activities is inspected through two hierarchical cluster analyses in parallel: first, against the quantity, quality and diversity of patents (innovation capability patterns), and second, against global-integration, component-size and position in technological knowledge networks (network embeddedness patterns). The resulting clusters are cross-related to understand their interrelations with age, size, turnover and productivity of actors. The multivariate analysis of variance shows a significant relationship between innovation-network concurrency and the age, turnover and productivity of companies. Global-integration in small-world networks is significantly related with microeconomic performance. Quality of innovation shows higher importance than quantity and diversity. While specialization in high-tech fields has positive impact on turnover, production-oriented firms with low-tech focus have higher productivity.
Graphical Abstract
JEL classification
D24; D85; O31; O34; Q42; Q55
Cite this research article as:
Shubbak, M.H., 2018. Innovation capability, network embeddedness and economic performance: profiling solar power innovators in China. International Journal of Technological Learning, Innovation and Development. Vol. 10 (3-4), pp. 258–294. https://doi.org/10.1504/IJTLID.2018.093723.
Hypotheses
Hypothesis 1a: The innovation capability of an organization is positively related to its economic performance.
Hypothesis 1b: The age of an organization is positively related to its innovation capability.
Hypothesis 1c: The size of an organization is positively related to its innovation capability.
Hypothesis 1d: The quality of innovation is more effective than its quantity in improving economic performance of organizations.
Hypothesis 2a: The network embeddedness of an organization is positively related to its economic performance.
Hypothesis 2b: Older organizations are more embedded in networks.
Hypothesis 2c: Larger organizations are more embedded in networks.
Hypothesis 3: The innovation capability of an organization is more positively related to economic performance when the organization has a high network embeddedness level.