Session 263

Innovation Models in Emerging Economies

Track I

Date: Tuesday, September 23, 2014

Track G

Time: 15:30 – 16:45

Paper

Room: Helsinki


Session Chair:

  • Miguel Angel Montoya, Monterrey Institute of Technology

Title: Adopting Knowledge from ‘Reverse’ Innovations? Transnational Patents and Signaling from an Emerging Economy

Authors

  • Kenneth Huang, National University of Singapore

Abstract: Is there knowledge adoption of innovations from emerging economies? We develop a conceptual framework and methodological approach to better understand and systematically identify ‘reverse’ innovations in China and investigate their knowledge adoption by firms in the U.S. Analyzing 4,226 China-U.S. patent dyads first applied in China and subsequently in the U.S. that are matched to 4,226 comparable patents from the U.S., we find reverse innovations have less value, scope, and legal strength as compared to their corresponding U.S. patents. Furthermore, our difference-in-differences estimates show that patenting in China increases their knowledge adoption by U.S. firms. This effect is most salient when information asymmetry is high: when patents are awarded to China-based firms and to technologies from less developed Chinese regions.

Title: Advantage from Value Appropriation: The Role and Impact of Organizational Mechanisms in Protecting Trade Secrets

Authors

  • Anand Nandkumar, Indian School of Business
  • Kannan Srikanth, Singapore Management University
  • Prashant Kale, Rice University

Abstract: We investigate how firms appropriate value from their knowledge assets by protecting them leaking to competitors. Prior work has mainly considered value appropriation from the lens of industry structure such as economies of scale or the importance of complementary assets or legal mechanisms such as strength of the IPRs. In contrast, we examine how the organization of a firm's innovation activities protects a firm's knowledge resources from leaking to competitors. We explore this question by relying on a few in depth interviews and on survey data from 140 captive centers established by MNCs in India that perform R&D. Since India has minimal legal protections for trade secrets, examining this context is likely to help us understand organizational mechanisms that help firm's protect their intellectual property.

Title: How and When Do Sub-National Institutions Matter for Corporate R&D?

Authors

  • Pei Sun, Fudan University
  • Zhe Qu, Fudan University
  • Zhixiang Liao, Fudan University

Abstract: Integrating the institution-based view of strategy and literature on the appropriablility of innovation, this paper develops a model of rent creation and capture to analyze how sub-national institutions impacts upon corporate R&D in large emerging economies. Further, we develop hypotheses regarding the ways in which certain organizational characteristics – technological competence and ownership identity – may moderate the relationship between local institutions and R&D investments. Using firms in China’s pharmaceutical industry, we test the conceptual framework and find a positive relationship between the quality of local institutions and corporate R&D intensity. Furthermore, this positive effect is less pronounced in firms that are technologically more competent, and more salient in indigenous firms than in wholly owned foreign subsidiaries.

Title: Trickle-Up Innovation

Authors

  • Miguel Angel Montoya, Monterrey Institute of Technology

Abstract: Business innovation created to solve the needs of poor people in developing countries was the subject of this analysis. Trickle-up innovation was observed: innovations created to solve the needs of the base of the pyramid (BoP) were subsequently used to serve middle or high-income population within the country. These insights derived from the pharmacy-doctor business model (the addition of a low-cost, quick-service medical consultancy next to a low-cost pharmacy) which emerged in Mexico in the late 1990s. This innovation was initially created to address the lack of public provision of health services, but it diffused and grew despite the subsequent introduction of free universal health insurance. This case demonstrates that country-specific solutions to market failures can be regarded as innovations for the BoP.

All Sessions in Track I...

Sun: 08:00 – 09:15
Session 278: Routines: Theoretical and Empirical Advancements and Avenues for Future Research
Sun: 09:30 – 10:45
Session 463: Big Data: Revolutionizing Innovation and Competition
Sun: 11:15 – 12:30
Session 464: Foundations Session: A conversation with Michael Tushman on Leadership, Innovation and Strategic Change
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 275: Open Innovation: Outcomes and antecedents
Sun: 17:15 – 18:30
Session 605: Knowledge and Innovation IG Business Meeting
Mon: 08:00 – 09:15
Session 260: IPRs, Appropriability and Innovation
Session 274: Incumbents, Radical Innovations and Disruptive Technologies
Mon: 11:00 – 12:15
Session 276: Organizational Learning
Session 277: Learning From Others
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 423: Alliances and Innovation Performance
Mon: 14:45 – 16:00
Session 265: Learning, Search, Slack: The behavioral theory revisited
Session 269: Knowledge Flows: Transfer, sharing and replication
Mon: 16:30 – 17:45
Session 254: Conversations about Knowledge
Session 257: Spin offs, Venture Capital and Entrepreneurship
Tue: 08:00 – 09:15
Session 259: Institutionalizing Innovation: Norms, status and legitimacy issues
Session 273: From Internal Resources to Customer Needs
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 267: The Role of Individuals in Innovation
Session 272: Research and Development: Antecedents and outcomes
Session 361: Creativity and Innovation
Session 469: M&As and Innovation
Tue: 15:30 – 16:45
Session 262: Networks of Innovators
Session 263: Innovation Models in Emerging Economies
Tue: 17:15 – 18:30
Session 255: Exploration and Exploitation
Session 256: Organizing for Open Innovation
Session 261: Practices and Processes for Innovation

All Sessions in Track G...

Sun: 08:00 – 09:15
Session 389: Managing the Multinational Organization in an Increasingly Complex World
Sun: 09:30 – 10:45
Session 221: Global Stakeholder Networks
Session 390: Local Determinants of Competitive Advantage and Disadvantage
Sun: 11:15 – 12:30
Session 2: Offshore Outsourcing, Dynamic Capabilities, and the Changing Nature of Firm Boundaries
Sun: 15:45 – 17:00
Session 270: Innovation in MNCs and Global Networks
Session 371: Inter and Intra Organizational Learning Across Borders: A Knowledge Management Perspective
Session 380: Small, Young and Entrepreneurial Firms: A Unique Perspective in Globalization
Sun: 17:15 – 18:30
Session 603: Global Strategy IG Business Meeting
Mon: 08:00 – 09:15
Session 335: Internationalization and Strategic Decisions
Session 379: Emerging Markets: Understanding the Importance of Context
Mon: 11:00 – 12:15
Session 372: The Challenges of Global Operations: Managing R&D and Complexity
Session 373: Global Diversification: Governance and Performance Implications
Mon: 14:45 – 16:00
Session 375: Changing External Environments: How do Multinationals Respond?
Session 381: Firm boundaries in Multinational Organizations: Antecedents and Consequences
Session 414: Global Networks and Business Groups
Mon: 16:30 – 17:45
Session 226: Culture, Norms and Institutions: The contextual influences on Entrepreneurship
Session 374: Antecedents and Consequences of Multinational Location Decisions
Session 382: Drivers of Multinational Performance:What, Where and When?
Tue: 08:00 – 09:15
Session 383: Globalization of R&D: Implications for Learning and Innovation
Tue: 11:00 – 12:15
Session 376: Headquarters Subsidiary Relationship: New Approaches to an Old Question
Session 384: Multinational Location Decisions: New Approaches Across Different Perspective
Tue: 15:30 – 16:45
Session 263: Innovation Models in Emerging Economies
Session 377: Organizing Assets Across Borders: Drivers and Consequences
Session 385: Multinational firms and the External Environment: The Role of Institutions
Tue: 17:15 – 18:30
Session 378: Global Outsourcing & Offshoring: Implications for Multinational Decisions


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