網絡在秘魯製造業的創新中所扮演的角色 - 政大學術集成

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(1)國立政治大學亞太研究英語碩士學位學程 International Master’s Program in Asia-Pacific Studies College of Social Sciences National Chengchi University. 碩士論文治. 政. 大. 立Master’s Thesis. ‧. ‧ 國. 學. 網絡在秘魯製造業的創新中所扮演的角色 y. Nat. er. io. sit. The Role of Networks in the Innovation of Peruvian. n. Manufacturing Companies a v. i l C n hengchi U. Student: Daniel Dario Segura Ferry Advisor: Mei-Chuan Wei, Ph.D.. 中華民國 107 年 8 月 August, 2018. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(2) 網絡在秘魯製造業的創新中所扮演的角色 The Role of Networks in the Innovation of Peruvian Manufacturing Companies. 研究生：丹尼爾. Student: Daniel Dario Segura Ferry. 指導教授：魏玫娟. Advisor: Mei-Chuan Wei, Ph.D.. 國立政治大學. 學. 亞太研究英語碩士學位學程. ‧. ‧ 國. 立. 政治大. 碩士論文. er. io. sit. y. Nat. al. A Thesis. n. v i n CMaster’s Submitted to International h e n g cProgram h i U in Asia-Pacific Studies National Chengchi University In partial fulfillment of the Requirement For the degree of Master in Asia Pacific Studies. 中華民國 107 年 8 月 August 2018. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(3) ACKNOWLEDGEMENT. I feel very fortunate to be able to dedicate this time to thank the people who directly or indirectly have supported me throughout this process of research and writing my thesis. First, I would like to thank God who fills my life with purpose and blessings. I also thank my thesis adviser Mei-Chuan Wei, Professor Yen-Pin Su and Professor Hans Tung who through their advice, corrections and suggestions helped me a lot in the development of this research. I would also like to thank the Government of Taiwan for giving me the opportunity to. 政治大 thank them for letting me know their culture and their people. It was two years that I 立 will remember the rest of my life.. study a master's degree and fulfill this academic dream. However, I would also like to. ‧ 國. 學. I would also like to thank the International Institute of Government (IGOB) and the ASIA group of the National University of San Marcos that guided me in the selection. ‧. of this Master's Degree. I am deeply grateful to IGOB for introducing me to Taiwan. sit. y. Nat. and its academic opportunities.. I would also like to thank my family who were always close to me despite our physical. io. n. al. er. distance. Every day while we were chatting from opposite ends of the world, they. i n U. v. showed me their unconditional love through their warm support and wise advice.. Ch. engchi. It is important that I give a special thanks to Lidia. There are not enough words to express my gratitude for her genuine love she has shown me and others. She has been my biggest support not only during the process of producing this thesis but throughout my entire career. She has been both my muse and my biggest companion. I thank my colleagues from my master's degree program who have supported me in various ways in this process and who have gained an important space in my heart. I hope to have the opportunity to see them soon again.. Daniel Segura August 2018. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(4) 摘要. 關於網絡與創新的相關研究，儘管有不少文獻探討網絡在促進創新的採用、推廣與使用上所具有的重要性，特別是透過「大學—產業—政府」所構成的三螺旋模型分析知識網絡在產業創新上所扮演的角色之相關研究，但是並沒有針對秘魯案例進行的研究。為對相關理論跟經. 政治大. 驗研究有所貢獻，本論文使用來自 1,452 家製造業公司的數據，檢視. 立. 以下這些網絡（知識網絡、生產網絡和消費者網絡）對這些公司進行. ‧ 國. 學. 創新之可能性的影響。同時，本研究也透過模型分析發現，亞太地區. ‧. Nat. y. 網絡在知識傳遞方面對這些秘魯製造業公司的影響及重要性。本研究. er. io. sit. 結果顯示，生產網絡和消費者網絡對於創新的趨勢有重大的影響；此外，根據本論文分析，與亞太地區國家有關係的公司比與之並無任何 a. n. iv l C n hengchi U 關係的公司有更高的創新概率。. 關鍵詞：創新，國家創新系統，網絡，秘魯，亞太地區. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(5) ABSTRACT. Despite several studies around the world about the importance of networks in facilitating the adoption, diffusion and usage of innovation, especially, those studies related to the role of knowledge network reflected in the university–industry–government relations through the triple helix model, there is not a relevant study using this model for the Peruvian case. As a. 治政大 network, production examines the impact of these networks (knowledge 立. result, using data from 1,452 manufacture companies, this research. network and customer network) on the probability of innovation at these. ‧ 國. 學. manufacturing firms. The same procedure is extended to consider a model. ‧. that captures the effect of Asia Pacific Networks to understand the. y. Nat. importance of the region in the transfer of knowledge to these companies.. er. io. sit. The results show a significant impact of the production network and customer network on the propensity to innovate. Additionally, it is found. al. n. v i n that companies that have aCrelation with an Asia Pacific country have a hengchi U higher probability to innovate than companies without any relationship.. Keywords: Innovation, National Innovation System, Networks, Peru, Asia Pacific. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(6) TABLE OF CONTENTS 1. Introduction ........................................................................................................ 1 1.1. Research background.................................................................................... 1 1.2. Research motivation and purpose.................................................................. 3 1.3. Research question.......................................................................................... 5 1.4. Analytical framework.................................................................................... 5. 2. Literature Review....................................................................................... 9 2.1. Innovation and economic development......................................................... 9. 政治大 Influencing factors 立of innovation................................................................. 14. 2.2. A brief history of innovation studies............................................................ 11 2.3.. ‧ 國. 學. 2.4. The regional dimension of innovation system and Asia Pacific region.........19 2.5. Studies of innovation of developing countries and Peru.............................. 21. ‧. 3. Research Method...................................................................................... 25. sit. y. Nat. 3.1. Description of the method............................................................................25. n. al. er. io. 3.2. Description of the data................................................................................. 25. i n U. v. 3.3. Description of the Variables and Operationalization................................... 26. Ch. engchi. 3.4. Model Specification.................................................................................... 36. 4. Results and Main Findings...................................................................... 40 4.1. Characteristic of the sample......................................................................... 40 4.2. Innovation Characteristics........................................................................... 42 4.3. Networks..................................................................................................... 44 4.4. Analysing the regressions............................................................................ 44 4.5. Diagnostic of the model............................................................................... 59. 5. Conclusions ............................................................................................... 71 Bibliography ............................................................................................. 74. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(7) LIST OF TABLES Table 1: Degree of Vinculation................................................................................... 31 Table 2: Operationalization of Variable Size............................................................... 32 Table 3:Manufacturing Industries at the 2-Digit Level of ISIC REV 4 by Technological Intensity....................................................................................................................... 33 Table 4: Origin of Network......................................................................................... 35 Table 5: Dependent Variables..................................................................................... 35. 政治大 Table 7: Control Variables.......................................................................................... 36 立. Table 6: Independent Variables................................................................................... 36. Table 8: Sample by Size.............................................................................................. 40. ‧ 國. 學. Table 9: Sample by Sector.......................................................................................... 41. ‧. Table 10: Sample by Technology Intensity................................................................. 41. sit. y. Nat. Table 11: Stats of Year of Operation.......................................................................... 42. io. er. Table 12: Innovation Performance.............................................................................. 42 Table 13: Patent........................................................................................................... 43. al. n. v i n Table 14: Innovation in ProductC by Degree of Innovation........................................... 43 hengchi U. Table 15: Networks..................................................................................................... 44 Table 16: First logistic model of Innovation: Odds Ratio of Innovation explaining by basic measure of networks........................................................................................... 45 Table 17: First logistic model of Innovation: Odds Ratio of Innovation explaining by advance measure of networks....................................................................................... 46 Table 18: Second logistic model of Innovation: Odds Ratio of Innovation explaining by basic measure of networks, R&D activities and absorbity capacity........................ 48 Table 19: Second logistic model of Innovation: Odds Ratio of Innovation explaining by advance measure of networks, R&D activities and absorbity capacity................... 49. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(8) Table 20: Third logistic model of Innovation: Odds Ratio of Innovation explaining by basic measure of networks, R&D activities, absorptive capacity, and control variables ...................................................................................................................... 50 Table 21: Third logistic model of Innovation: Odds Ratio of Innovation explaining by advance measure of networks, R&D activities, absorptive capacity, and control variables....................................................................................................................... 52 Table 22: Fourth logistic model of Innovation: Odds Ratio of Innovation explaining by origin of networks, R&D activities, absorptive capacity, and control variables........... 54. 政治大 Table 24: P –Value of the Link Test............................................................................ 60 立. Table 23: T-Test between Asia Pacific and the other relations.................................... 55. Table 25: Values of the Hosmer-Lemeshow Goodness-Of-Fit Test............................ 60. ‧ 國. 學. Table 26: Other Criteria of Goodness-Of-Fit Test....................................................... 61. ‧. Table 27: Collinearity Diagnostic............................................................................... 62. sit. y. Nat. Table 28: Matrix of Correlation................................................................................... 62. io. er. Table 29: Number of Observations According to the Cut Points that Determine the Existence of Influence of the Observation.................................................................... 63. al. n. v i n C h in Product Model Table 30: Comparison of the Innovation after the Exclusion of the engchi U. Influential Points.......................................................................................................... 64 Table 31: Comparison of the Innovation in Process Model after the Exclusion of the Influential Points.......................................................................................................... 65 Table 32: Comparison of the Innovation in Organization Model after the Exclusion of the Influential Points.................................................................................................... 66 Table 33: Comparison of the Innovation in Commercialization Model after the Exclusion of the Influential Points............................................................................... 67 Table 34: P values of Chi square Hetprob Heterocedastic Test................................... 68 Table 35: KHB Confounding Summary of the Innovation models.............................. 69. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(9) LIST OF FIGURES. Figure 1: Diagnostic of Influential Observation for the Model of Innovation in Product......................................................................................................................... 63 Figure 2: Diagnostic of Influential Observation for the Model of Innovation in Process......................................................................................................................... 64 Figure 3: Diagnostic of Influential Observation for the Model of Innovation in Organization................................................................................................................ 65. 政治大. Figure 4: Diagnostic of Influential Observation for the Model of Innovation in. Commercialization....................................................................................................... 66. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(10) CHAPTER 1 INTRODUCTION. 1.1. Research Background In spite of economic growth in the Peruvian economy over the last three decades (attaining an average Gross Domestic Product growth at 5.2%) and the solid fiscal management of the different governments of the day (sustaining a fiscal deficit of 0.4%. 政治大 minerals such as copper, gold, 立among others (mining sector is about 13.0% of the GDP of the gross domestic product), a significant part of this growth is due to the export of. ‧ 國. 學. and the mining exportation is around 60% of total exports in 2017). However, over the last several years the price of commodities have been falling, and with this the economic. ‧. growth of the country is slowing (falling to an average of 1.9% in the last 3 years). This. sit. y. Nat. reduction is an undesired event for policymakers due to the failure to reach the income. io. er. levels and standards of life that the population of other more advanced countries enjoy.. al. v i n C long term, that doesUnot depend exclusively on the generate a sustained growth in the h engchi n. As a result, Peru faces a dilemma quite challenging that demand actions that allow it to. production and export of commodities and that allow it to reach optimal standards of life for the population (Parodi, 2018). It is in this scenario where we turn our gaze to theory and find that those countries that achieve a level of welfare known as "developed" tend to have a high percentage of investment (as a percentage of GDP) in science, technology, and innovation. Thus, SNIP (2012)pointed out that "the medium and long-term economic growth rate depends to a large extent on investment - public and private - in Science, Technology, and Innovation". For Heijs and Buesa (2016, p. 14), "Innovation is the only way for a. 1. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(11) country to generate, in the long term, a better competitive position and sustainable economic growth". The previous idea is based on the new theory of economic growth generated in the 1990’s by Paul Romer. The theory proclaims that technological progress is not exogenous and that the knowledge is the main driver of technological change, due to its characteristic as a public good and the ability to facilitate the creation of economic scale. With these claims, it was possible to establish a new important explanation to the already known paradox of Solow residual 1 where technological progress had to be. 政治大 payment of the productive 立 process and it made investment in Science, Technology and. exogenous because the various factors such as capital and labour received all the. ‧ 國. 學. Innovation activities impossible.. This important realization regarding innovation by mainstream economists put in focus. ‧. the necessity to better understand how and why innovation occurs. And the works made. y. Nat. sit. by the evolutionary economic stream scholars or Neo-Schumpeterian 2 started to. n. al. er. io. become widely revised. In their view, the understanding of the innovation process is. i n U. v. not linear but interactive. In other words, innovation is not only determined by their. Ch. engchi. own investment in research and development, but it is determined also by the transfer. According to (Acosta, Bethencourt, Marrero, & Perera, 2011), “the neoclassical model of Solow-Swan. 1. predicts that the long-term growth rate of economies is zero because there are decreasing returns in capital accumulation. However, the data shows that many countries have grown in the last 200 years. On the other hand, the empirical studies of the Solow residue also questioned the neoclassical models since they showed that an important part of the growth was due to technological change”. 2. Neo-Schumpeterian or evolutionary economists study economics from an evolutionary perspective. The. evolutionary economy is a technological economic theory that studies the behaviour of economic systems from a dynamic perspective, emphasizing the importance of innovation and the development of technology in the evolution of the economy over time, giving it a cumulative character to the economic process.. 2. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(12) of knowledge from internal and external partners, such as universities, public institutes, other firms, and customers. Peru has much to do in terms of Science, Technology, and Innovation. For example, compared to developed countries and other countries in Latin America, Peru has a low percentage of resources allocated to Science, Technology, and Innovation (SNIP, 2012). In addition, according to Sosa (2017), the level of scientific and technological production is being reduced, which would make infertile the few but growing resources destined for the sector. Finally, it should be noted that the work done in innovation from. 政治大 present investigation realizes 立a study of the business innovation with the purpose of. a microeconomic point of view is still very scarce (CIES, 2017). In this sense, the. ‧ 國. 學. finding the determinants of the innovation while putting emphasis on the impact of these different connections on innovation.. sit. y. ‧. Nat. 1.2. Research Motivation and purpose. io. er. As an economist, one of my main interests is to understand how to improve the. al. v i n Ch U the main lessons of economic development the new industrialized e n gincAsia, h i specifically n. productivity of companies in my country. After two years of study in Taiwan, one of. economies (Taiwan, Singapore, South Korea and Hong Kong) is the development pattern known as "flying geese", which had “technological transfer” as one of the most important characteristics, meaning the technological transfer from a developed country to a less developed country that after its maturation would do a similar process with another less developed country. The idea of knowledge transfer led me to several enriching readings within the field of "knowledge economy", which is the concept of innovation that called my attention because of its importance in increasing productivity. Thus, various questions arise around what determines whether a person, company or. 3. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(13) country can innovate or not. One of the most hopeful theses with respect to this issue is that innovation will not only depend exclusively on the amount spent on R&D but could also arise through learning after a collaborative relationship with (1) Knowledge units (university, public research institutes), (2) Production units (suppliers, matrix companies) and (3) customers. In this line, the present investigation will evaluate the importance of the network with these units in the innovation of the Peruvian manufacturing companies. Likewise, it will analyse the impact of the relationship with its international counterparts and determine its relationship with the Asia Pacific. 政治大 Due to this, the next purposes 立of the research were established: economies to foster innovation.. ‧ 國. 學. 1. To find evidence of the importance of networks between enterprises and scholars that would serve to foster better policies that facilitate connection. ‧. between the business and academic arena in Peru.. y. Nat. sit. 2. To find evidence of the importance of networks between enterprises and. n. al. er. io. production components/customers that would serve to foster better policies that induce collaboration between them.. Ch. engchi. i n U. v. 3. To find the relevance of the support of the Asia Pacific region in the flow of knowledge and innovation in Peruvian manufacturing companies. 4. Expand literature. Despite research about the importance of knowledge,. production and customer networks in the innovation of the manufacturing sector, there is not research for the Peru case, and also there is no study about the importance of the Asia Pacific region in this matter.. 4. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(14) 1.3. Research Questions The main research questions of this research are the following: 1.. Do the linkages with knowledge, production and consumption units influence the decision to innovate in the Peruvian manufacturing companies?. 2.. Do these linkages with Asia Pacific units (knowledge, production and customers units) foster the innovation of Peruvian manufactures companies?. 1.4. Analytical Framework. 治政 The conceptual framework used in the analysis of the influence 大 of the networks on the 立 innovation of the manufacturing companies is originated in the writings related to the ‧ 國. 學. National Innovation System. This framework is selected because it provides an. ‧. analytical way to analyse and understand the role of networks and other important factors that affect innovation. According to Edquist (2001, p. 4) "firms do normally not. y. Nat. io. sit. carry out innovations ‘in isolation' and that institutions are crucial for innovation. n. al. er. processes. This has made the Innovation System approach central to the modern way of understanding innovations".. Ch. engchi. i n U. v. This idea behind the system provides a simplified description of the two main elements: components and relations. In term of components, there are at least two categories to consider: organizations and institutions (Edquist, 2001). “Organizations are the player or actors such as companies (which can be suppliers, customers or competitors in relation to other companies), universities, venture capital organizations and public innovation policy agencies” (Edquist, 2001, p. 4). On the other hand, institutions are the “rule of the game”, “the set of habits, routines, established practices, rules or laws that regulate the relation of the components” (Edquist, 2001, p. 5).. 5. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(15) To improve understanding of the elements of the system, Lundvall (2007) proposes to differentiate between the core and the wider settings of the National Innovation System studies and determine the next four level of analysis: 1. The first step would be to analyse what takes place inside firms in terms of innovation and competence building. 2. The second step would be to analyse the interaction among firms including competition, cooperation and networking, and how firms interact with knowledge infrastructure.. 政治大 reference to the specificities 立 of national education, labour markets, financial. 3. A third step would be to explain international differences in these respects with a. ‧ 國. 學. markets, welfare regimes and intellectual property regimes.. 4. As a fourth step, firm organization and network positioning may be used to. ‧. ‘‘explain’’ the specialization, competitiveness and growth performance of the. sit. y. Nat. innovation system.. n. al. er. io. The first two steps are the most important and they are the level of analysis related to. i n U. v. the core of the National Innovation System analysis. The other two are the level of. Ch. engchi. analysis related to the wider sets of the National Innovation System and it should be considered depending on the level of analysis. It is in the second step suggested by Lundvall (2007) where we analyse the networks between the firm and different organizations such as Universities, firms, and customer. Finally, it is also necessary to define the type of innovation that is relevant to the study. According to Heijs & Buesa (2016), the innovation refers to the introduction of novelties in the market. However, it is possible to find at least four classifications that are useful in our discussion of what innovation we will study. First, is the classification made by Schumpeter. According to him, the innovation can be classified into five type. 6. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(16) of innovation: (1) Product innovation, (2) Process innovation, (3) The opening of a new market, (4) The appearance of new sources of materials for production, (5) The emergence of new organizational forms in the industry that it does not imply only the destructive creation where the new inventions replace the old inventions, but also to the creation of new combinations of existing technologies. Thus, innovation does not only reference the creation of a new product, because the sense of novelty would be understandable in a wider sense. Second, the classification related to the degree of innovation. In this line, it is possible. 政治大 technological advancements. 立Thus, it is possible to classify the innovation in (1) Radical. to observe that innovation can still be classified according to the "impact" on. ‧ 國. 學. innovation and (2) Incremental innovations. The former is totally new and not predictable. By contrast, the last one is an innovation that implies small successive. ‧. improvements that are in a certain degree predictable (Heijs & Buesa, 2016).. y. Nat. sit. Third, innovation has to be differentiated whether it is new in the industry or only in. n. al. er. io. the firm. In the latter case, we can understand that the firm adopts an existing. i n U. v. technology, and would lead to the concept of innovation adoption.. Ch. engchi. Fourth, the innovation related to the activities of R&D. This type of classification recognizes three types of activities: basic research applied research and experimental development. The basic research is the study that is designated to create new knowledge without the intention of giving them a specific use; it is typically diffused through publication in scientific journals. The applied research is the study destined to give specific practical use to new knowledge (created or not by them). The knowledge created here, it is usually patented but it can be maintained in secret. Finally, the experimental development consists of a set of works that take advantage of the research. 7. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(17) and practical experience to produce new materials, products or devices (Heijs & Buesa, 2016). Thus, for the purpose of our analysis, the innovations that will be studied are those related to the product, process, organizational and commercialization innovation. Finally, the innovation that is created and adopted will also be analyzed.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 8. i n U. v. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(18) CHAPTER 2 LITERATURE REVIEW. 2.1. Innovation and Economic Development There is no doubt about the importance of the economic development for the performance and complementing the goals of a society. However, this term was not static in time and the objectives and means to reach economic development has been. 政治大 understand by economic development. 立. constantly evolving. In this sense, it is necessary for a brief review of what we. ‧ 國. 學. A review made by Dang and Pheng (2015) about the evolution of the theory of economic development emphasizes at least two important aspects: the goals of. ‧. economic developments and the different theories that try to explain it. Thus, in the. y. Nat. sit. review of the goals, they appreciated that prior to 1970 the academy considered growth. n. al. er. io. in the economy as a good proxy for development; however, this idea soon had critics. i n U. v. because this understanding fosters the maximization of production, without considering. Ch. engchi. environmental damage, increasing income inequality and tolerating poverty. In this scenario, during the 1970's, the evidence of the ambiguity founded by increasing income per capita and increasing income inequality and poverty made some scholars think about the necessity to set other goals in order to appreciate the development of a country. In this line of thought, in the 1990's economist like Sen, Stiglitz, and others contribute to shifting the economy goals to a wider set of goals such as education, health, and freedom. Also, the set of goals were needed to be established to consider not only the present but also the future of the next generation. Similarly, environmental economists incorporated the concept of sustainable development into economic theory.. 9. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(19) Thus, only a few years later, the Brundtland Commission defined sustainable development as “progress that meets the needs of the present without compromising the ability of future generations to meet their own needs” (World Commission on Environment and Development 1987, p. 8). In this sense, economic growth is still important, but a country must consider other dimensions of development, including the ability for future generations to satisfy their own needs. Then, the review of what determines this development, especially with its most basic goal, growth, shows the evolution of the theories that study this issue. Thus, there are. 政治大 The first of these classic theories 立 focused on the role of the savings and investments in at least four classic theories and two contemporary theories of economic development.. ‧ 國. 學. order to grow in the long run. In a similar way, these variables were considered in the second classic theory but with the main purpose to explain the movement from. ‧. agriculture to the industrial sector and how this movement of resources to the last sector. sit. y. Nat. is crucial for development (at least in their conception). The third classic theory was the. n. al. er. io. dependence theory and it tries to explain that developing countries were not developed. v. for the unfavorable exchange of goods with more developed countries, so their. Ch. engchi. i n U. suggestion to develop was to give the state more space in the decision of production. The fourth theory was a counter attack to the third theory and proposes the deregulations and facilitating the free market in order to achieve economic development. However, these four theories were not supported by evidence and it was soon that theories emerged which emphasized the complementarities between market and state, and how the state can intervene and ensure the correction of market failures. Therefore, the theory of the new growth economy proposed by Romer in the 1990’s argued that the technological progress is not exogenous and that the knowledge is the main driver to technological change, due to its characteristic as a public good and the ability to. 10. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(20) facilitate the creation of economic scale. It was in that moment that innovation started to become central in the theory of growth, in the theory of economic development and important as a topic to include in the political agenda and strategies to lead the country to the development. However, the concept of innovation and economic developing are still improving and becoming more interrelated. Thus, Kuntze, Meyer-Krahmer, and Walz (1998) highlight that innovation can also help to achieve a sustainable development for two reasons. First, it would help to “solve the problems of the current unsustainable production. 政治大 Second, it would be useful立 to “to develop and diffuse a wide range of environmental. methods and consumption patterns” (Kuntze, Meyer-Krahmer, & Walz, 1998, p. 4).. ‧ 國. 學. technologies” (Kuntze, Meyer-Krahmer, & Walz, 1998, p. 4).. For the achievement of millennial goals, it seems that innovation can have a main role.. ‧. For example, in term of poverty reduction, Majid (2004) highlights the importance of. y. Nat. n. al 2.2 A brief history of Innovation Studies Ch. engchi. er. io. sit. increasing productivity of rural agriculture in order to achieve this goal.. i n U. v. After the study of Solow (1956), the Solow Swan model found a paradoxical result regarding the determinants of growth in production. Empirical studies show that technological change was the main of driver of economic growth production in the long run, but also it was an unexplained variable in its theory (an exogenous variable). This finding easily put in evidence the importance of technological change and raises the questions about its determinants. On the other hand, curiously some non-mainstream economist had already generated arguments to explain this issue. For instance, Schumpeter (1911) had introduced the. 11. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(21) concept of innovation and analyzed how the process of creative destruction would lead to an industrial transformation (technological change) that shapes the economic structure from an old state to a new one (growth economy and development economy implicitly included). Although his works were not well recognized at that moment, his ideas served on the post-world war committee in charge of U.S. Science (Godin, 2008). In this vein, according to Godin (2008), the famous linear model that suggests a direct relation between innovation and firm activities in Research and Development (R&D) was developed by Rupert Maclaurin that served as secretary to the committee on. 政治大 Years later, a group of scholars 立 in the OECD started to question the limitation of this Science and Public Welfare.. ‧ 國. 學. approach, and a series of ideas started to suggest the necessity of a different view of the dynamic process related to learning and innovation (Lundvall, 2007). Thus, at the. ‧. beginning of the 80’s, the works of Freeman (1982)and Lundvall (1985), introduced. sit. y. Nat. the term National Innovation System in order to develop an alternative framework to. n. al. er. io. fill the gap in the narrow view of the mainstream economic theory at the moment to. v. analyze and judge the importance of learning and innovation, explaining that there is a. Ch. engchi. i n U. process of learning that is interactive between different units of the system that would foster innovation in the firm (Lundvall, 2007). However, it was after the works of Freeman (1987) and Dosi, Freeman, Nelson, Silverger, and Soete (1988) that the framework of National Innovation System started to become famous and widely used (2007). Despite this broad diffusion and usage of terminology in several studies, different assessments have been made about the scientific validity and the political implications and current policies implementations of this framework.. 12. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(22) In term of the validity of this framework, there are some scholars that find a theoretical corpus that is not clearly delimited and it is associated with various kinds of ambiguous concepts. For instance, Edquist (2001)signaled that the definition of institution broadly used took two types of meaning: the organizations and the rules. Also, Edquist (1997) expresses his concern about the lack of formal operationalization and the misleading nature of this toward an undefined framework. Another interesting point is signaled by Vertova (2014), who indicates it is not clear if the National Innovation System is a descriptive or normative tool. On the other hand, Lundvall (2007), argued the. 政治大 fact that is developed in the field of social science and that would implicate not looking 立 importance of understanding the concept "theory" (I would include science) under the. for the attempt to formalize in the same level of natural science but generate a corpus. ‧ 國. 學. of ideas (a focus devising in his words) that let us organize the knowledge and focus. ‧. the analysis.. sit. y. Nat. In term of political implications and current policies implementations of this. n. al. er. io. framework, aligned with the criticism previously mentioned about the unclear. v. boundaries of the concept, some scholars argued that the framework could be not useful. Ch. engchi. i n U. due to the nature of include almost everything and at the same time not focusing on anything. In this sense, Lundvall (2007) recognized the necessity to include a new distinction related to categorize the setting of the system between the core and the wider settings. This solution would bring a better focus on the formulation of policies. Also, Lundvall (2007) recognized the positive effects and negative effects of the usage of this framework. For the side of the positive effect, the most relevant impact was the shift of innovation policy from linear thinking to more interactive thinking. However, crude interpretation of this interaction gave place to narrow studies and policies such as the expectation of innovative relation between the universities and the firms, forgetting in. 13. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(23) some cases other important roles that the university can fulfill such as being a source of skilled knowledge (2007).. 2.3. Influencing factors of Innovation In this section, it will be review the main factors that influence innovation. Despite several studies and possible factors that purport to determine the cause of innovation, we will focus on the most important factors.. 治政大linear model of the firm that The first theory that tried to explain innovation was the 立 claims the existence of a positive relationship between the investment in the activities 2.3.1. Investment in R &D. ‧ 國. 學. in Research and Development (R&D) and the performance of the firm in terms of. ‧. innovation (Godin, 2008). In other words, this theory conceptualizes the innovation process as a sequence of activities made by the firm in order to get technological. y. Nat. n. a. er. io. sit. innovation (Godin, 2008).. 2.3.2. Absorptive capacityl. Ch. engchi. i n U. v. Another relevant concept related is the “Absorptive Capacity”. Thus, Cohen and Levinthal (1990, p. 128)recognize that "the ability of a firm to recognize the value of new, external information, assimilate it, and apply it to commercial ends is critical to its innovative capabilities". An interesting study with regard to this was made by Gold, Malhotra, and Seagars (2001).In this research, the authors analyze the importance of the “absorptive capacity” in the successful in the Knowledge management and argue that is necessary technological, structural and cultural infrastructure (element of the. 14. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(24) absorptive capacity) that facilitate and promote the communication between individuals within the firm that can contribute to the creation of new ideas (innovation creation).. 2.3.3. External factors: networks The network is the factor related to "the interaction among firms including competition, cooperation, and networking, and how firms interact with knowledge infrastructure" (Lundvall, 2007, p. 102). With regard to the firms' interaction, it would be useful to separate the interaction between firms that are competitors and the interaction of firms. 政治大. that have vertical relations (supplier-firm and firm-matrix).. 立. Thus, despite the obvious relation with a firm and its competitors is compete, there are. ‧ 國. 學. two important aspects to comment in this part: first, the competition itself does not necessarily reduce the innovation and second, the relationship with a competitor is not. ‧. necessarily only competition as we will see in the next paragraphs.. y. Nat. io. sit. In terms of how competition affects innovation, there are many scholars that were. n. al. er. concerned about this relation (e.g. Arrow (1962), Vives (2008) and other). According. Ch. i n U. v. to Aghion, Bloom, Blundell, Griffith, and Howitt (2005), there is a contradiction. engchi. between the theoretical predictions and the evidence. Thus, the standard theory of industrial organization predicts that innovation and competition are negatively related. However, Aghion, Bloom, Blundell, Griffith, and Howitt (2005) realized that for "neck and neck" sectors, the competition would foster innovation due to an escapecompetition effect that implies a scenario where firms with identical technologies and capabilities with also compete in innovation, so in the case of non-radical innovations, the firms would tend to make efforts in order to avoid being left behind.. 15. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(25) In terms of another type of relationship with competitors, some scholars have started to pay attention to the situation known as coopetition that implicates a situation when the firms compete and cooperate. According to Harbison and Pekar (1998), over 50% of collaborative relations are made between firms of the same sector. There are significant ideas around how and why cooperation becomes popular and worthy of many companies. For example, Brandenburger and Nalebuff (2001) claim “business is cooperation when it comes to creating a pie and competition when it comes to dividing it up”. In this sense, when the strategy leads to superior benefits, the idea to cooperate. 政治大 who claim that the main explanation behind this strategy is the possibility to gain more 立. with the rival makes sense. A similar idea is developed by Gnyawali and Park (2011). than the cost that implicates cooperation (conflicts, interdependence, etc.). A different. ‧ 國. 學. but important observation is made by Bengtsson and Kock (2000). Their research signal. ‧. the possibility to collaborate in specific areas but compete in others. Despite this, Le. y. Nat. Roy and Czakon (2016) adds the importance to consider that coopetition is a method to. er. io. sit. get a competitor’s resources giving the competitors our own resources, so if the gains are symmetric, it would be a win-win strategy. In the opposite case (asymmetric of. al. n. v i n Cstrategy learning) it would be a win-lose to the U competitor having an advantage h e n due i h gc over the other firm.. With regards to the interaction between firms that have a vertical relation, scholars who researched this area use the terminology of vertical networks to express the linkage between the firm’s partners belong to a same chain of production (Gellynk & Kuhne, 2010). And the question of why a firm looks for a relationship with another firm in the same value chain in order to innovate is explained through the firm’s necessity to solve problems related to the innovation itself such “as the appropriability problem, imperfect price discrimination, imperfect information and the related problems of demand. 16. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(26) valuation and resale” (Harabi, 1998, p. 160). According to Harabi (1998), in the case of the appropriability problem, the innovative firm can create barrier to entry for competitors through cooperation with suppliers in which the appropriability of the critical assets would create a scenario where the competitors or potential competitors would not be able to replicate the innovation due to the shortage of inputs, and this fact would reduce the risk of the firm to innovate and be copied by others. Additionally, the mode of vertical relation chosen by the firms would vary according to the transaction cost that both of them have to assume. For example, "in the case of vertical integration. 政治大 chain is characterized by uncertain property rights, transaction-specific assets, and 立 (a hierarchical relation), on one hand, more likely to predominate where the innovation. complex technology transfer. On the other hand, the complexity of scientific and. ‧ 國. 學. technological inputs, the uncertainty of economic conditions and the risks associated. ‧. with uncertain technological trajectories, appear to have reduced the advantages of. sit. y. Nat. vertical and horizontal integration and made hierarchies a less efficient way of. io. er. responding to market imperfections" (Harabi, 1998, p. 164).In the case of transnational companies and local subsidiaries, the expression vertical production networks “are a. al. n. v i n form of “vertical FDI” through C which multinationals U h e n g c h i spread across different locations. the different activities that they perform, such as R&D, input production, and input processing” (Hanson, Mataloni, & Slaughter, 2005, p. 664). In this line, Zanfei (2000) argues that transnational companies have strong incentives to organize innovative activities through other countries and gain access and contribute to this knowledge. Despite this, Zanfei (2000) recognizes that it is difficult to accept that this is "natural" result from the market and the decision to organize innovation in this form implies investment in competences, assets, and cultural issues in order to foster the innovation of the different parts of the transnational company’s units.. 17. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(27) With regard to the relation customer-firm, the cooperation is captured by different theories. Thus, Greer and Lei (2012) developed a state of art about the “Collaborative Innovation with the customer" and developed a framework that integrates at least five types of explanations related to the cooperation between firms and customers: Demand for customization, technology related, individual or customer level, organizational and strategic/structural. For example, in the case of the theory related of demand for customization, due to the heterogeneity of customer needs, the networks with a customer can lead to product configurations that satisfy the client’s necessities, improve. 政治大. the benefits and avoid large expenses and losses in efficiency, mainly by the strategy of redesigning the product.. 立. ‧ 國. 學. Finally, with regard to the relationship between firms and knowledge infrastructure, there are several authors that consider importance of the role of knowledge components. ‧. for the firm innovation. Thus, for Monjon and Waelbroeck (2003), the networks. sit. y. Nat. between universities and firms would lead to innovation adoption of the firms through. n. al. er. io. the generation of spillovers (market and non-market).These spillovers would be the. v. knowledge that is generated by the innovative firm but it would not be appropriated for. Ch. engchi. i n U. this purpose. The main model developed through this statement is the triple helix model of university-industry-government relations which argues "that the university can play an enhanced role in innovation in increasingly knowledge-based societies" (Etzkowitz & Leydesdorff, 2000, p. 109). Thus, “the functional communications can sometimes be codified in new institutional settings; the institutional sectors (public, private and academic) that formerly operated at arm’s length are increasingly working together, with a spiral pattern of linkages emerging at various stages of the innovation process.” (Etzkowitz & Leydesdorff, 1995, p. 3).. 18. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(28) For example, in Motohashi (2015), this study found a positive impact of universityindustry-government collaboration in Japanese firms, especially in small firms rather than large firms. Also, Adretsch and Lehman (2005, p. 1191) found that "firms located around universities are affected by the regional characteristics and by the output of universities". Another interesting study was done by D’Este and Patel (2007). According to this study, "university researchers interact with industry using a wide variety of channels and they engage frequently in channels such as consultancy, contract research, joint research, or training" (D'Este & Patel, 2007, p. 1295).. 政治大. 2.4. The regional dimension of Innovation System and Asia Pacific. 立. Region. ‧ 國. 學. An interesting aspect to take into account is the concept of the transnational innovation system. The main idea is based in a modified (but deeper) version of the concept of the. ‧. national innovation system but the scope of the networks and institutions can surpass. y. Nat. er. io. Nielsen, 2011).. sit. the national borders and be considered at the supranational level (Chaminade &. al. n. v i n C U Due to the lack of capabilities orhfacilities countries, the region e n g cof hthei developing becomes important to the transfer of knowledge from an advanced member to a less developed member. This fact does not necessarily mean that there are not national linkages but these linkages are in training (Chaminade & Nielsen, 2011). Thus, for Buckow (2013), much of the innovation in China took place in the absorption of foreign technology and the network with its local firms and regional value chain has become the main source of innovation.. For a better understanding of this framework, Chaminade & Nielsen (2011)insert the terminology of “proximity”, which is an important concept for some authors in the. 19. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(29) definition of “region”. The concept of “proximity” in International Relations has two important categories: geographical proximity and relational proximity. The first one refers to the physical distance and it becomes important for accessibility, acceptable time and low cost. This concept was the main pillar of the popular notions with regard to the idea of a region, and it is important for innovation due to the face to face interactions that become important in the transfer of tacit knowledge. The second category refers to the "distance" in the relationship between the organization and institutions. This aspect put more emphasis on the intangible commonalities or. 政治大 Cognitive proximity, Organizational proximity, Social proximity and Institutional 立 networks. Because it is a wide concept, it is usually divided into some other aspects:. proximity. This last aspect is more important in the conceptualization of the bottom up. ‧ 國. 學. regional integration that is called as regionalization. This integration becomes important. ‧. to explain the regional creation and evolution that is more related to the linkages. sit. y. Nat. between non–states actors. It also relies heavily on the economic trade and cooperation,. io. er. and its "spatial" scope depends on the strengthening of its networks (Rodriguez, 2014). In this sense, the networks become an important part of the regions that has this process. al. n. v i n C h of the proliferation of integration, increasing the possibility of innovation due to the engchi U possible presence of the transnational innovation system.. “This is the case of the Asia-Pacific region, where there is a spontaneous economic interdependence stimulated by the economic exchange between countries that create a dynamic and integrated production structure. Therefore, the APEC rises from a spontaneous regionalization process, an aspect that is reflected in the membership dynamics of the region, that is, to be a member of the APEC; it requires the trade indexes with the countries of the region. It is only this condition that has regulated the. 20. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(30) membership selection and explains the membership of Chile, Mexico, and Peru” (Rodriguez, 2014, p. 555).. It is in this sense that is possible to argue that Peru’s firms would have linkages with other Asia Pacific organizations. Due to the presence of networks, it is possible to expect the possibility of an innovation system shaped by the presence of the interaction between the organization and institutions of the member economies. However, the presence and participation in a regional innovation system are not guaranteed, it is necessary an integration process which tends to move towards globalization of the. 政治大. world economy. These preconditions are necessary for effective functioning of the. 立. elements of a regional system (Vorobeva, Beletskaya, & Kolesnikov, 2016).. ‧ 國. 學. 2.5. Studies of innovation and economic development of developing. ‧. countries and Peru. y. Nat. sit. Despite several studies of National System Innovation and the different types of. n. al. er. io. networks that foster innovation in the companies, there are few studies comparing. i n U. v. developing countries. According to Intarakumnerd, Chairatana and Tangchitpiboon. Ch. engchi. (2002, p. 1446), "most of the research concentrate on how institutions and systems were built and shaped to produce ‘intensive learning' which facilitated technological catching-up processes in newly industrializing economies in Asia, namely, Korea, Taiwan, and Singapore". However, according to Arocena and Sutz (2000, p. 55), "NSI approach can be useful for studying the specificities of innovation processes and policies in the South, as well, and can draw attention to similarities and differences from those in the North (developed countries). But for that, the NSI approach needs to be complemented by a Southern perspective".. 21. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(31) In this line, Arocena and Sutz (2000) reviews different surveys of some Latin America countries and the researchers found a general characteristic related to these countries. The first important characteristic is that the spending in R&D is low at the country level not reaching the recommendation of the UNESCO to reach at least the 1% of GDP. There are few innovative firms that perform R&D activities indoors and the innovation is highly informal, in other words, it has not done in a specific R&D department and it usually is not planned by the firm. Also, the qualified personnel is crucial to innovation in these countries and the lack of these personnel is perceived as the main constraint to. 政治大 are low and focused on the relation with national universities. However, one interesting 立. innovate. Finally, in terms of networks, it was found that the linkages with universities. finding was the high level of relations between Mexican innovative enterprises and. ‧ 國. 學. foreign clients and firms.. ‧. However, the low level of networks with universities does not imply that university is. y. Nat. io. sit. not relevant for the innovation of the firms. More micro-level studies in some of these. n. al. er. countries indicated the importance of the university and the components of the system. i n U. v. in the performance of some industries (including innovation). For example, Tosi, Gaya. Ch. engchi. and Barbosa (2010) made a case study of the sugarcane industry, and found that universities, research centers, research programs, and firms played an important role in the evolution of the sugarcane industry and the innovations related to this sector such as developing new varieties of sugarcane, new process of production and new ways to produce ethanol. In term of the role of the university, the research indicated the importance of Ridesa, a network of federal universities, in the collaboration with the sugarcane firms and the creation of 67 varieties of sugarcane (Tosi, Gaya, & Barboza, 2010). An original way to address the importance of the university in the innovation was made by Giuliani and Rabellotti (2012). In this study, the authors attempted to. 22. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(32) show how the universities can connect the international science with the wine domestic industry of Chile and South Africa. In order to accomplish that attempt, the research focused on the role of the researchers involved in the wine sector and found that Chilean researchers possess more networks and also made more research about the wine sector, so this new knowledge is expected to foster innovation in this industry. Another interesting Latin American study related to the importance of the network in the innovation was developed by Kesidou and Romijn (2008). The research focused on the impact of Local Knowledge Spillover in the Uruguayan firms' innovation through a. 政治大 that company spin-offs, informal interactions, and labor mobility were determinants in 立 quantitative analysis using a survey in a Uruguay's software cluster. The study revealed. the innovation performance of the Uruguayan's firms. In the case of Peru, there are few. ‧ 國. 學. studies about the influence of networks on innovation. One of these researchers was. ‧. made by Hartmann and Arata (2011). In this paper, the authors analyzed the role of. sit. y. Nat. social capital (conceptualized as internal and external ties) in the innovation. io. er. performance using the example of the smallholder wineries of Chaparra, an agricultural valley in the South of Peru (Hartmann &Arata, 2011). The study reveals two important. al. n. v i n C h was important for facts: First, the degree of networks the innovation performance. engchi U. Second, that “NGO became the key player in the local information networks” (Hartmann & Arata, 2011, pp. 18-19). Other interesting work was made by Ortiz (2006). Although the author did not use the word innovation in the formulation of the main theme of its paper, the central idea of the study case used by him is a clear example of the importance of suitable networks and innovation. In this research, the author uses the case of Integrated Pest Management (IPM) in the potato industry to explain the evolution of the Peruvian agricultural knowledge and information system (AKIS), and claims that more efficient inter-institutional interaction within AKIS can promote a synergy between the existing indigenous knowledge of control pest and the incoming. 23. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(33) method of IPM with the goal to create locally-adapted alternatives that contribute to solving new problems. Other important research that captures the importance of the networks on the Peruvian firm’s innovation is made by Mytelka (2010). In this research, the author made a review of the problem and solution around the exportation of mango in the 1980’s and 1990’s by the Peruvian exporters. At that time, around 40% of the total area for fruit crops was affected by the fruit-fly, so United States banned the importation of Peruvian' mango (Mytelka, 2010). In order to solve this problem, the Peruvian government created the National Service of Agricultural Health (SENASA). 政治大 deal with that problem. A close relation with this actor, the producers (Peruvian 立. which had the function of researching, train and diffuse the necessary knowledge to. companies) and the user (United States clients) also led to the creation of a solution and. ‧ 國. 學. thus the Peruvian mango started to export again to United States (Mytelka, 2010).. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 24. i n U. v. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(34) CHAPTER 3 RESEARCH METHODS. 3.1. Description of the Method The analysis would be developed mainly through quantitative methods. In order to deal with the first research question, this research proposes to use a logistic model to evaluate the influence of knowledge networks, customer networks and production. 政治大 planned to use a logistic model 立 to determine the relevance of the connections coming networks in the probability to innovate. For the second research question, it is also. ‧ 國. 學. from the Asia Pacific region on the probability of innovating. In the next paragraphs, the objective is to describe the database to be used, the variables needed and their. ‧. operationalization. Finally, it will be formalized from both models using the. sit. y. Nat. operationalized variables and it will analyze different variations of those models. al. n. variables.. er. io. incorporating other important dependent variables and some important control. Ch. engchi. i n U. v. 3.2. Description of the Data The National Institute of Statistics and Informatics (INEI) and the Ministry of Production (PRODUCE), gathered information from 1452 manufacturing companies through an ad hoc innovation survey for a field operation period of 45 days. The survey contains detailed information about innovation activities, human capital, linkages with organizations, the result of innovation, firm performance and other important information in the period 2012 -2014.. 25. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(35) 3.3. Description of the Variables and Operationalization. 3.3.1. Innovation As we have seen in the section corresponding to the analytical framework, Innovation refers to the novelties introduced in the market. According to the Oslo manual, innovation can be divided in: -. Product: the introduction to the market for a new or significantly improved good or service in relation to quality, components, subsystems or end use.3. -. 治政 production support activities, new or significantly 大 improved. 立 Organization: a new way of organizing your company's business practices, the Process: the implementation of a production process, distribution method or. 學. ‧ 國. -. organization of the workplace or relations with agents external to your company,. -. ‧. which have not been used by your company before. Commercialization: the implementation of a new concept or marketing strategy. y. Nat. er. io. sit. that differs significantly from the usual methods used by your company, and that has not been used before.. al. n. v i n In order to measure each type ofC innovation, h e n gthec questionnaire h i U asked relevant sub-items for each of them about the period 2012-2014. Thus, with regard to the innovation in each product, the firm is asked for four sub-items: (1) the firm was successful in introducing new goods; (2) the firm was successful in introducing new service; (3) significantly improved well; or (4) significantly improved service. All of those sub items represent a form of innovation in product, so if the firm responds "yes", at least, in one of those sub-items, the research will consider that the. 3. This concept and the other three are retrieved from the questionnaire. 26. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(36) firm has innovated a product and it would not have experienced innovation in the product on the contrary case. In this way, the variable innovation in the product will be operationalized as a dummy variable, where the variable will take the value of "1" if the firm has innovation in the product and "0" on the contrary case. With regard to the innovation in process, the firm is asked for six sub-items: (1) A new method of production of goods or provision of services; (2) A new method of logistics, distribution or dispatch of inputs, goods or services; (3) A new activity to support the. 政治大. production such as maintenance or procurement systems, accounting or information;. 立. (4) An improved method of producing goods or providing family services; (5) An. ‧ 國. 學. improved logistics, distribution or delivery of inputs, goods or family services; or (6) A production support activity such as significantly improved maintenance or. ‧. procurement, accounting or information systems. All of those sub items represent a. y. Nat. sit. form of innovation in process, so if the firm responds "yes" in at least one of those sub-. n. al. er. io. items, the research will consider that the firm has an innovation in the process and it. i n U. v. would not have innovation in the process on the contrary case.. Ch. engchi. In this way, the variable innovation in the process will be operationalized as a dummy variable, where the variable will take the value of "1" if the firm has innovation in process and "0" for the contrary case. With regard to the innovation in the organization, the firm is asked for three sub-items: (1) New business practices; (2) New methods of organizing work; or (3) New methods of organization of external relations with other companies or public institutions. All of those sub items represent a form of innovation in the organization, so if the firm responds "yes", at least, in one of those sub-items, the research will consider that the. 27. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(37) firm has an innovation in organization and it would not have innovation in the organization on the contrary case. In this way, the variable innovation in the process will be operationalized as a dummy variable, where the variable will take the value of “1” if the firm has innovation in organization and “0” on the contrary case. With regard to the innovation in commercialization, the firm is asked for four sub-items: (1) Significant changes in the design or packaging of the good or service; (2) New ways or techniques of product promotion; (3) New methods to position the product in the. 政治大. market or in sales channels; or (4) New methods of establishing prices for goods or. 立. services. All of those sub items represent a form of innovation in commercialization, so. ‧ 國. 學. if the firm responds "yes", at least, in one of those sub-items, the research will consider that the firm has an innovation in commercialization and it would not have innovation. ‧. in commercialization on the contrary case.. y. Nat. er. io. sit. In this way, the variable innovation in the process will be operationalized as a dummy variable, where the variable will take the value of "1" if the firm has innovation in. n. al. Ch. commercialization and "0" on the contrary case.. engchi. i n U. v. Also, another important approach to measure innovation is the owning of a patent. According to the web page of the World Intellectual Property Organization (WIPO), “a patent is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem”. Because, it represents a grand of novelty, some works4 use this as a proxy variable for innovation. This information is collected by the questionnaire but the. 4. Examples of works that use patent as a measure of innovations are Bottazzi & Giovanni Peri (2003),. Katila (2000) and Lanjouw & Schankerman (2004).. 28. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(38) wording of the question made reference to the application and not the position of the patent. However, the research will also evaluate this measure. And the firm will have innovation if they applied to the patent in the period 2012-2014. The variable will be a dummy variable. Finally, it is possible to evaluate the innovation in the product through the use of the percentage of sales of innovative products. An important characteristic of the questionnaire is the incorporation of the question of percentage of sale according to the characterization of the product in terms of innovation for the year 2014. In other words,. 政治大. it is possible to measure the percentage of sales of innovative products by the company.. 立. ‧ 國. 學. 3.3.2. Networks. Networks can be understood “as complex webs of relationships among ﬁrms,. ‧. universities, government agencies, and other organizations for generating and sharing. Nat. io. sit. y. knowledge relevant to technological innovation” (Rycroft, 2003, pg. 300).. n. al. er. In order to measure this dimension, the strategy will be to use of the questions related. Ch. i n U. v. to the presence of linkages with a list of different agents or institutions. The list includes. engchi. 13 items: (1) Universities, (2) Public research institutes, (3) Private research institutes, (4) Government CTI promotion programs, (5) Non-university laboratories, (6) CITE, (7) SENATI and other technical links, (8) Suppliers, (9) customers, (10) Parent company or other group companies, (11) Competitors or other companies, (12) Business guilds, (13) Consultants and experts. Also, the question is similar to a multiple-choice question, in other words, the firm can have linkages with more than one institution.. 29. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(39) For the study, it was established three categories of networks: knowledge networks, production networks, and customer networks. In the case of Knowledge Networks, the research considered that a firm has knowledge networks if it has relations with Universities, Public research institutes, Private research institutes, or Non-university laboratories. In the case of Production Networks, the research considered that a firm has Production networks if it has relations with Suppliers, Competitors or other companies, and Parent company or other group companies. In the case of Production Networks, the research considered that a firm has Production networks if it has relations. 政治大 companies. In the case of Customer Networks, the research considered that a firm has 立. with Suppliers, Competitors or other companies, and Parent company or other group. Customer networks if it has relations with Clients. These three (Knowledge, Product,. ‧ 國. 學. and Customer) variables will be expressed as dummy variables with the value of 1 in. ‧. the case of linkage with the respective network, and 0 on the contrary case. sit. y. Nat. Another approach to the measurement of these variables will be the consideration of. n. al. er. io. the nature of the relationship in the construction of the variable. The strategy proposed. v. by this research is the differentiation between one relationship and another, taking into. Ch. engchi. i n U. account that there are some relationships that might have more impact in the innovation performance. The information related to the type of relationship was asked for each link the company has with the thirteen actors indicated in the previous paragraph. The list of relationship includes eight types of relationship: (1) Request for financing, (2) Information request, (3) Training, (4) Testing of products / processes, (5) Technical assistance, (6) Engineering and designs (7) Investigation and development, (8) Other. In the case of other, the specifications were reviewed and two relevant relationships were found: commercial relationship and joint studies. With these relationships, the. 30. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(40) study proposed the creation of a nominal variable that shows five types of different relationship. Table N° 01 Degree of Vinculation Value. Categories. 0. No relations or Commercial Relations. 1 2 3. Request for financing Information request Training, Testing of products/processes, Technical and assistance Joint studies, Engineering and designs and Investigation and development. 4. 3.3.3. R&D. 立. 政治大. ‧ 國. 學. The basic assumption of the linear model of innovation was that the amount of Knowledge (innovation can be understood as a new Knowledge) is a result of the. ‧. amount of investment in R&D activities.. Nat. sit. y. In order to operationalize this variable, the first approach is to use the information about. n. al. er. io. the decision of the firm to invest or not in R&D activities. The variable will take the. i n U. v. form of a dummy variable where the value of "1" means that the firm made an. Ch. engchi. investment in R&D activities and "0" on the contrary case. The second approach of this variable is to use the amount of money invested in R&D activities. In this last case, the variable will take the form of a continuous variable. And it would expect a positive relationship with innovation. In the analysis, the research will test the impact of both types of measure.. 3.3.4. Absorptive capacity Absorptive capacity refers to the capacity to “absorb” the information, and this implies the ability to identify, assess and convert the information into knowledge. The term. 31. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.

(41) suggests that the firm has to own an internal infrastructure that helps it to take advantage of the internal and external information. The research will use the presence of R&D departments and Informatics departments as a proxy to measure this variable. The variable will take the form of dummy variable where the values of "1" will mean that the firm has a suitable infrastructure to manage the external and internal information, and "0" on the contrary case.. 3.3.5. Control Variables. 治政 As control variables, the research will use three main control 大 variables: (1) Size of the 立 firm, (2) Year of operation, and (3) intensity technology in the manufacturing sector. ‧ 國. 學. With regard to the firm's size, many academic works expect that the innovation. ‧. performance will be different between small and big companies. The expectation is that. sit. y. Nat. the big companies will tend to innovate more than small companies, so it is necessary. io. n. al. er. to control the estimation by this variable.. i n U. v. The operationalization of this variable will be made using the definition of size. Ch. engchi. established by the law 30056 of Peru. This law establishes definitions according to the next sales thresholds.. Table N° 02 Operationalization of Variable Size Values of the research variable Microenterprise Sales < =150 UI 1 Small Enterprise 150 UI < Sales < =1700 UI 2 Medium Enterprise 1700 UI < Sales < =2300 UI 3 Big company 2300 UI < Sales 4 The UI (taxation unit) is 3 800 nuevos soles (the currency of Peru) Size. Criteria. 32. DOI:10.6814/THE.NCCU.IMAS.014.2018.A07.