PICMET ‘‘10 Conference Phuket, Thailand
          PICMET 10 Conference Phuket, Thailand
10R0142

 Constructing National In...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




Globaliz...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



National ...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



1.Endogen...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



2.Exogeno...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



  3.Exoge...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



Related t...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




        ...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




2.Flows ...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




 3.Inter...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



Conceptua...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




Data Col...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



 Result &...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



Result   ...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




      Re...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



Finding 1...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective


Finding 2
...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective


 Finding 2...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective


Finding 3
...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



 Finding ...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective


Conclusion...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




        ...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective



 Countrie...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




       M...
PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective




       C...
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Picmet10 r0142

  1. 1. PICMET ‘‘10 Conference Phuket, Thailand PICMET 10 Conference Phuket, Thailand 10R0142 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Lawrenzo Hung-Chun Huang Shin-Yu Shih Ya-Chi Wu National Chi Nan University, Taiwan
  2. 2. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Globalization! Global Supply chain, International Global outsourcing , Technology Global R&D Diffusion National Innovative Global Network Structure Capacity
  3. 3. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective National innovative capacity National innovative capacity has been defined as the institutional potential of a country to sustain innovation and a suitable measure based on patenting rates. Endogenous determinants Common Innovation Cluster-Specific Infrastructure Environment National Innovative Capacity Quality of patenting Linkages rates Furman, J. L., M. E. Porter, et al. (2002). "The determinants of national innovative capacity." Research Policy 31(6): P906.
  4. 4. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective 1.Endogenous fully determine ? Endogenous determinants ? National Exogenous Innovative affect Capacity Furman, J. L., M. E. Porter, et al. (2002). "The determinants of national innovative capacity." Research Policy 31(6): P906. Can an endogenous perspective fully determine national performance in terms of innovative capacity?
  5. 5. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective 2.Exogenous environments? International Technology Diffusion Endogenous determinant Global National s Network affect Innovative Furman, J. L., M. E. Porter, Structure Capacity et al. (2002). "The determinants of national innovative capacity." Research Policy 31(6): P906. What kinds of international relationships have a greater effect?
  6. 6. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective 3.Exogenous influence; International Technology Diffusion International Technology Diffusion Endogenous determinant affect National s Innovative Furman, J. L., M. E. Porter, Capacity et al. (2002). "The determinants of national innovative capacity." Research Policy 31(6): P906. What difference of the alternate channels of ITD ? Are their differential impact on NIC?
  7. 7. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Related theory for new perspective 1.Network Autocorrelation Model (Leenders,2002) 2.The flows of international Technology Diffusion (Griliches, 1989) 3. Interactive effect, social contagion theory of innovation (Burt, 1986 etc.)
  8. 8. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective 1.Network Autocorrelation Model (Leenders,2002) Simultaneously considers both endogenous determiners and exogenous influence on national innovative capacity. Global Networking Environments Interactive Effects National Domestic Factor Innovative Performance Individual Local Capacity diligence Effects
  9. 9. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective 2.Flows of International Technology Diffusion Griliches,1980 Embodied Technology→ Rent Spillover eg. direct investment, trade flows (eg. Grossman & Helpman, 1991; Smith &White, 1992; Coe & Helpman,1995; Xu & Wang, 1999,2000; Eaton & Kortum, 2001. Nemeth &Smith, 1985; Kick & Davis, 2001) Disembodied Technology→ Pure Knowledge Spillover eg. licensing, outsourcing agreement, patent citations (eg. Griliches,1980; Austin,1993; Kong & Lin, 2003)
  10. 10. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective 3.Interactive Effects, a major engine of diffusion network Cohesion mechanism (e.g.. Burt, 1991 Berelson et al., 1954; Koka et al. 1999, Shih, 2006) communication Structural equivalence mechanism (eg. Galaskiewicz & Burt, 1991; Harkola & Greve, 1995; Koka et al., 1999; Shih, 2006) comparison ego alter alter ego
  11. 11. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Conceptual framework & Data collection Communication Cohesion Diffusion Interactive Effect Comparison Structural Equivalence Exogenous - ITD Embodies Trade Flow Technological Intermediates diffusion Disembodies Patent Citation Common Innovation Infrastructure Furman Cluster-Specific Endogenous Local Effect Model Environment Quality of Linkages National Innovative Patents Output Capacity Data collection
  12. 12. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Data Collection Samples: 42 countries (form Global Competitiveness Index of the World Competitiveness Databank top 42 Countries) Periods:1997-2005 Variable: Innovative Output International patents granted (form USPTO) Aggregate R&D Expenditure Total R&D expenditures (from IMD) Embodied technology trade flows (from GTI) Disembodied technology patent citations (from NBER)
  13. 13. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Result & Finding Discussion Part 2 Discussion Part 3 Cohesion Cohesion Embodies Disembodies Structural Tech. Tech. Structural Equivalence Equivalence NIC Performance Domestic Discussion Part 1, 4
  14. 14. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Result Existing exogenous effect? Endogenous determinants Furman’s Model R2=0.96 NIC Significant Support Performance Endogenous determinants However…Exist serious Deletes variables muliticollinearity problem with collinearity Furman’s Model insignificant Support Endogenous determinants R2=0.50
  15. 15. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Result Existing exogenous effect? Adjusted R2 1 Furman Model ied Disembod y Embodied Technolog 0.8 y Co+SE Technolog el Structural od 0.6 Cohesion Equivalence ll M Co+SE Structural Deleted Cohesion Fu Equivalence collinearity 0.4 0.2 0 4 6 8 1 2 7 3 5 9 el el el el el el el el el od od od od od od od od od M M M M M M M M M
  16. 16. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Finding 1 Exogenous effects NIC ? Replace Furman Model’s collinearity variables with interactive variables. Global Networking Interactive Effects Autocorrelation Model NIC Domestic Factor Performance Significant Support Local Effects
  17. 17. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Finding 2 What kinds of international relationships have a greater effect? Global Networking Interactive Effects NIC VS. ego ego alter alter Performance Structural Local Effects Cohesion Equivalence Cohesion - Cohesion - Embodies Disembodies Tech. NIC Tech. NIC Structural Structural + + Performance Performance Equivalence Equivalence
  18. 18. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Finding 2 What kinds of international relationships have a greater effect? Adjusted R2 1 ied Disembod y 0.8 Embodied Technolog Co+SE y Technolog el od Structural 0.6 Cohesion ll M Co+SE Equivalence Cohesion Structural Fu Equivalence 0.4 0.2 0 4 6 8 1 2 7 3 5 9 el el el el el el el el el od od od od od od od od od M M M M M M M M M
  19. 19. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Finding 3 What difference of the alternate channels of ITD ? Are their differential impact on NIC? Comparison for dis/embodied technology diffusion Embodies Domestic Disembodies Tech. Pure Tech. NIC Rent knowledge spillover Performance spillover Productivity Technical efficiency change Difference in spillover rigidity “rent spillover” are more rigidity than “Pure knowledge spillover”
  20. 20. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Finding 3 What difference of the alternate channels of ITD ? Are their differential impact on NIC? Adjusted R2 i ed 1 Disembod Embodied y 0.8 Technolog y Technolog Co+SE el Structural od 0.6 Cohesion Equivalence ll M Cohesion Structural Co+SE Fu Equivalence 0.4 0.2 0 4 6 8 1 2 7 3 5 9 el el el el el el el el el od od od od od od od od od M M M M M M M M M
  21. 21. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Conclusion 1.national innovative capacity simultaneously determiner by local effect (domestics factor) and influence by interactive effect (global environments). 2.the important differences between the alternate channels of ITD on NIC show that disembodied technology diffusion more effectively replenishes the indigenous technology environments than embodied technology does. Therefore, this channel differential provides policy alternatives in national science and technology development. 3.In a global network context, differential interactive proximity effects differentiate national innovative capacity. • The cohesion proximity negatively affects NIC, merely utilizing the technology of a cohesion partner will less contribute for innovations. • The structural equivalence proximity significantly influence NIC. That is, countries become more inclined to take competitors as a paradigm via international technology diffusion based on the environment in which they are developing. 4.National innovative capability is more significantly affected by foreign disembodied technology. Consequently, acquiring competitor countries’ disembodied technology is more effective to influence on innovative capability gain.
  22. 22. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Thank you Hung-Chun Huang Shin-Yu Shih Ya-Chi Wu National Chi Nan University, Taiwan
  23. 23. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Countries of International Technology diffusion Argentina Australia Austria Belgium Brazil Canada Chile China Colombia Denmark Finland France Germany Greece Hong Kong Hungary Iceland India Indonesia Ireland Italy Japan Malaysia Mexico Netherlands New Zealand Norway Philippines Poland Portugal Russia Singapore South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Turkey United Kingdom United States
  24. 24. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Methodology & Hypotheses Methodology International technology diffusion ITD ij = wij × RD i Contagion effects ⎛ ⎜ ⎝ j ⎞ y i = ρ ⎜ ∑ wij y j ⎟ + ε ⎟ ⎠ j≠i yi = ρ y + ε ( ) * i j≠i
  25. 25. PICMET’10 Constructing National Innovative Capacity in Globalization: The Network Autocorrelation Perspective Collinearity statistics Dependent variable=(PATENTS)j,t+3 Collinearity Statistics Toleran VIF ce GDP per capita 0.560 1.787 GDP 0.012 84.574 R&D personnel 0.368 2.716 (FTE) R&D $ 0.012 82.324

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