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The Mechanism of Technology-intensive Enterprise Innovation Capability Evolution under Open Innovation Environment

Author: LiuZuo
Tutor: YangShuWang
School: China University of Geosciences
Course: Management Science and Engineering
Keywords: Innovation Capability Evolution Open Innovation Technology-intensive Enterprise
CLC: F273.1
Type: PhD thesis
Year: 2013
Downloads: 136
Quote: 0
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Abstract


The national science and Technology Congress held in Beijing in2006, the general secretary HU Jintao made an important instruction:In order to make China into an innovation-oriented country in2020, we should strive to improve the ability of independent innovation in China and achieve a number of major scientific and technological innovations. From the emphasis of the central government on the construction of innovative country, we can know its significance to improve the innovation ability of our country.Innovation refers to the process of product from scratch and its commercial application. Enterprise is the best main body of innovation from the perspective of maximizing the benefits. The process of improving the innovation capacity of Chinese enterprises is the key step in the construction of an innovation-oriented country. But at the present stage, the overall innovation ability of enterprises in our country is still at the low level, most of the core technology also lies in the hands of the Multi-National Corporation, which seriously restricted the enhancement of our country enterprise innovation ability. In addition, along with the continued deepening of economic globalization as well as the expanding range of the globalization of knowledge, the competitive advantage of enterprises only rested on the resources them own controlled is unsustainable. Some typical multinational companies such as IBM, Procter&Gamble and so on, these old companies have the most advanced scientific research laboratory and the powerful scientific research team in the worldwide. Before the1990, these companies developed a large number of subversive innovation achievements that made an outstanding contribution to the progress of human society science, which rest on strong scientific research strength and advanced equipment instruments. But after the1990, the old Multi-National Corporation appeared to remain stagnant or even slightly retrogression.Research shows that although these companies still have a lot of invention and innovation every year, but these innovations have not been used for commercial production. As time goes, these innovations that cost lots of manpower, material and financial resources gradually outflow to the enterprises, bringing no profit to the shareholders of a company. During this time, some enterprises sprung up, such as Cisco, Intel and so on, and their performance form stark contrast to the old multinational companies. Although they themselves do not have the abundant scientific research capabilities, they are good at using external innovation resources, and grasping every opportunity so that these companies expand rapidly in the very short time. Enterprise innovation of this strange phenomenon has aroused the attention of many scholars. In2003, the American scholar, Henry Chesbrough, formally proposed the term "open innovation", and it quickly and widely recognized by scholars.With the development of global economic integration, innovation is becoming more and more internationalized. Technology-intensive enterprises are considered the most suitable for open innovation. Multi-technology integration also requires technology-intensive enterprises using external resources and implementing open innovation. Through the effective utilization and integration of internal and external innovation resources, the enterprises can play the greatest degree of innovation potential, promoting the fast growth of technology-intensive enterprise innovation capability. And it can also make technology-intensive enterprise better cope with innovation challenges in the process of complexity and internationalization, playing a greater role in the stable development of social economy.The main contents of this dissertation include the following three aspects:Firstly, the dissertation discusses the relationship between openness and innovation capability of the enterprise. For enterprise innovation, open innovation is a new way of thinking. Under the open innovation mode, enterprises can obtain the resources needed by the enterprise innovation not only from the internal R&D department, also from organizations outside it. Mutual cooperation among different innovative subjects can share the risks and resources. Through the complementary advantages among different innovation subjects, can shorten the innovation cycle, and improve the efficiency of innovation. In addition, cooperative innovation among various fields can achieve a breakthrough in technology, creating new technologies. Based on their R&D ability, and tracking a variety of information timely, enterprises choose other innovation main bodies to build the dynamic relationships with them according to their comparative advantages, which can reduce the uncertainty of the innovation process, cost savings, and improving the efficiency of innovation. General, Open innovation improve the innovation capability of enterprisesAdopting the open innovation model, of course, enterprises can improve the innovation efficiency through the integration of internal and external innovation resources. However, excessive open suppresses the promotion of the enterprise innovation capability. Because searching, digesting and absorbing external innovation resources have costs. In addition, once the external resources the enterprises absorbed excess the absorption ability of transforming, or more than the enterprises can bear, and the excessive external resources will disperse enterprises’ attention, not conducive to centralized allocation of resources. Besides, the leak of sensitive technology is difficult to avoid during the process of cooperation. In general, it will produce the search cost and transaction cost for enterprises adopting the open innovation model to absorb the external resources. And excessive openness makes enterprises to depend on external innovation resources inertial. Therefore, excessive openness of the enterprises is not conducive to the improvement of innovation capability.The relationship between openness and innovation capability is the quadratic curve:the enterprises innovation capability gradually increases when the openness of enterprises is lower level. But with the enlargement of openness degree, enterprises innovation capability will in turn reduce after reached a turning point. So the relationship between openness and innovation capability is "Inverted U type".Secondly, the dissertation elaborates the influence mechanism of open innovation to enterprises innovation capability. In the transverse direction, the enterprises can cooperate with competitors to improve voice of enterprises in the industry. What is more important, they can be targeted for a more objective and concrete policy, promoting the development of the industry. With the close cooperation of the horizontal enterprise is conducive to the improvement of enterprises’innovation capability. In the vertical direction, enterprises can integrate different resources with upstream and downstream of industrial chain (e.g., users and suppliers). This not only helps enterprises understand innovation specific needs through the upstream and downstream, but also improve the overall efficiency of enterprises, to achieve a variety of resources optimization allocation. So, with the close cooperation of the longitudinal enterprise is conducive to the improvement of enterprises’ innovation capability.Universities and research institutions have advanced laboratory equipment, high-quality researchers, while the company has the funds needed by the universities and research institutes. Enterprises and universities, research institutions are complementary institutional in nature. By the cooperation of industry-university-institute, universities and research institutions can get the funds required to R&D and experiment equipment, while the enterprise can gain huge profits from innovation. The government can affect different aspects of enterprise innovation through financial and tax policies. The cooperation of "government-industry-university-institute" is conducive to the improvement of enterprises innovation capability. Venture capital can solve the problem of insufficient investment in enterprise innovation. And with the participation of venture capital institutions, it brings the valuable market information and technology, greatly improving the efficiency of innovation. Through the technical intermediary institutions, enterprises can break the information blockade of some institutions monopoly; reduce the enterprise’s own information search costs and problems like asymmetric information in the process of cooperation and innovation. Through intellectual property institutions, enterprises can fill the need of technology gap timely. The construction of innovation public platform and its improvement help to improve the enterprise innovation ability enhancement.The main purpose of enterprises to implement the open innovation is to obtain the various external enterprise innovation need resources, mainly external market factors and macro policies that affect enterprise innovation capability. Specifically, external source of innovation mainly includes the vertical suppliers and users, horizontal competition and complementary enterprises, government-industry-university-research cooperation organization and public innovation service platform. Structural equation model shows that:under the open innovation environment, vertical cooperation between horizontal and vertical enterprises, cooperation and innovation of public service platform to promote enterprise innovation capability.Thirdly, the dissertation analyzes the evolution of the enterprises innovation capability under the open innovation environment. Under the open innovation environment, the technology-intensive enterprise capability will be along with the evolution of "imitation capability, creative imitation capability, independent innovation, cooperative innovation capability". In the stage of imitation capability, the learning objects of enterprises are production equipment that the technology has matured. Through learning by doing, employees master the capabilities of equipment operation and maintenance, as well as in the production process of how to effectively carry out quality control. Enterprises communicate with the outside world through simple devices, so the efficiency of the use of external innovation resources is still in the lower level. In the stage of creative imitation ability, the key of this stage is the direction of product improvement, process redesign the trick as well as the enterprise’s capacity to absorb external technology. Enterprises establish diversified innovation channel with advanced foreign enterprises, which make enterprises the capability of the use external innovation resources greatly improved. But at the moment enterprises still rely on foreign enterprise core technology. In the stage of independent innovation, enterprises set up their own technology platforms; form the unique ability of core technology; build the innovation network; perfect the organizational structure of enterprises. On one hand the enterprises make extensive use of innovation network to absorb the external market, technical knowledge, on the other hand they use the existing technology platform to integrate internal R&D capability with external knowledge, developing new technologies, which improves the enterprises independent capability innovation. In the stage of cooperative innovation capability, on the one hand, enterprises use their own strength to complete innovation activities in their own part of the task; on the other hand, they help their partners by their best through innovation network to improve the efficiency of innovation.The innovation of this dissertation is mainly focused on the theoretical level and method level. In the theoretical level:even though the study of open innovation has become a trend, but most scholars’ researches on open innovation mode are concentrated in the area or industry level, few scholars introduced the open innovation in the enterprises, as the most suitable for open innovation technology-intensive enterprise, the related literature is rare. This dissertation not only explored the open innovation model for technology intensive enterprise innovation ability, also analyzed the impact of this is how to produce, as well as the evolution of technology-intensive enterprises innovation capability. Therefore, this research project wills rich open innovation theoretical study on open innovation and innovation capability. In the method level, the feature of this dissertation is the combination of qualitative analysis and quantitative research. In the part of the relationship between the open innovation and innovation capability, the dissertation use a nonlinear regression model on the basis of the literature review; in the part of mechanism of open innovation to enterprises innovation capability, the dissertation use structural equation modeling on the basis of theoretical analysis; in the part of evolution of the enterprises innovation capability under the open innovation environment, the dissertation use case analysis on the basis of theory combing. The combination of qualitative analysis and quantitative analysis makes the theory more persuasive.

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CLC: > Economic > Economic planning and management > Enterprise economy > Production management > Enterprise Technology Management
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