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This open access book explores the role of innovation in technological convergence processes in the EU regional space and shifts the focus from absolute and conditional income convergence to technological convergence and its determinants. Presenting new theoretical and empirical evidence on the determinants and trajectory of the EU region’s development and convergence, this book will appeal to scholars of economics and regional science, as well as practitioners and policymakers interested in the policy implications of regional technological convergence. The presented findings will also contribute to the development of the knowledge-based economy paradigm in the regional context. This is an open access book.
Technology in several forms, especially Information Technology (IT), has a strong tendency to converge at varying degrees. This phenomenon of converging innovation is likely to deepen and widen in the future due to intense competition in global markets. Asian manufacturing firms in particular lead the global industrial innovation. Convergent innovation exists as a constant disequilibrium between reference technology and matching technology; innovations of these technologies occur at different degrees to attain an optimal balance. Innovations as a result of convergence are often beneficial, improving welfare and employment. This book sheds light on the little-discussed idea of convergent innovation with examples hailing from Asia. The book also proposes new theories and investigates convergence at the micro level – guaranteed food for thought for academics interested in innovation economics and management.
This book deals with both the understanding of, and the explanation of, knowledge about the causes, processes, and patterns of convergence innovation. It argues that the process of convergence innovation is a continuous disequilibrium between reference technology and its matching technology, adjusting the optimal balance between the functions of the two technologies. Contributors describe how convergence innovation is a learning process that requires both vertical and horizontal convergence, and case studies explore the different types of convergence innovation such as outside-in and inside-out. Convergence innovation has been taking place mainly by applying IT technologies to vast areas of conventional technologies, so that individuals or firms reap the benefits of the convergence between IT and conventional technologies. Such innovations are made possible by convergence, and they ultimately improve the welfare of human beings as companies solve diverse problems and increase employment. Examples in this book include biochemical companies in Indonesia, who were able to increase their market shares in bio-fertilizer and bio-pesticide products through bio-based technological convergence; and textile machinery firms in South Korea who have been survived by achieving convergence innovation on their core competences. This book was originally published as a special issue of the Asian Journal of Technology Innovation.
In this book Rajneesh Narula examines the interdependence of globalization and technological innovation at two levels: first, between locations, by examining the role of cross-border initiatives in the innovation process; second, between corporate entities, by studying the dynamics of inter-firm R&D collaboration. Examines the international aspect of the interdependence of globalization and technology. Explores the role of cross-border interdependence in the innovation process, as well as interdependence between firms. Reveals an interesting paradox: locations and firms are increasingly interdependent through supranational organisations and the flow of investments, technologies, ideas, and people; but knowledge creation suffers from ‘inertia’ and remains concentrated in a few locations. Draws on a wide variety of data at the firm and national level in the sphere of R&D and technological innovation. Spells out important lessons for both policy makers and managers on industrial policy as well as the organisation of research and development by firms.
Driven by the fascination about dramatic structural and competitive changes within telecommunication and information technology in dustries during the past decade, the convergence phenomenon has increasingly gained my personal attention throughout my work and studies. Therefore, not entirely coincidentally, this book was written as the result of my doctoral research at ETH Zurich, which turned out to be a challenging, yet highly rewarding endeavor. However, this work would not have been possible without the enduring support of several people. First, I would like to express my gratitude to my thesis supervisor Prof. Fritz Fahrni, for providing me with the opportunity to conduct exciting research projects in close collaboration with industry, and for supporting me with solid guidance and advice all the way. Also, I would like to thank Dr. Christian Marxt, for urging me to pursue the chosen line of enquiry, as well as for his devoted coaching, both at ETH and at Stanford, both within and beyond of?ce hours. Furthermore, I am grateful to Prof. Georg von Krogh, for his encouraging feedback and valuable comments during various inspiring discussions.
June 1997 National patterns of technology diffusion found in country estimates probably reflect sectoral variations more than country variations. They also reflect different degrees of internationalization. Recently, interest in regionalism has mushroomed, and economists have analyzed it not only from the viewpoint of trade but that of foreign investment, macroeconomics, and political economy. But questions of technological regionalism-whether the accumulation and diffusion of technology has a regional dimension-have been considered only marginally and indirectly. Padoan offers an exploratory analysis of the regional dimension of technology and diffusion, examining both country and sectoral aspects of it. Empirical results suggest that regional trade agreements do not necessarily lead to spillover patterns in regional knowledge. But knowledge may be diffused through vehicles other than trade. National patterns of technological accumulation seem more important than regional patterns. In particular, more internationalized economies seem capable of commanding a substantial amount of knowledge diffusion, which may sometimes follow regional patterns. These conclusions are partly confirmed by sectoral estimates that show that regional patterns of knowledge diffusion are highly sector-specific. The knowledge base varies greatly across sectors. This paper - a product of the International Trade Division, International Economics Department - was prepared for the department's research project on regional integration.
This volume aims to document the most important worldwide accomplishments in converging knowledge and technology, including converging platforms, methods of convergence, societal implications, and governance in the last ten years. Convergence in knowledge, technology, and society is the accelerating, transformative interaction among seemingly distinct scientific disciplines, technologies, and communities to achieve mutual compatibility, synergism, and integration, and through this process to create added value for societal benefit. It is a movement that is recognized by scientists and thought leaders around the world as having the potential to provide far-reaching solutions to many of today’s complex knowledge, technology, and human development challenges. Four essential and interdependent convergence platforms of human activity are defined in the first part of this report: nanotechnology-biotechnology-information technology and cognitive science (“NBIC”) foundational tools; Earth-scale environmental systems; human-scale activities; and convergence methods for societal-scale activities. The report then presents the main implications of convergence for human physical potential, cognition and communication, productivity and societal outcomes, education and physical infrastructure, sustainability, and innovative and responsible governance. As a whole, the report presents a new model for convergence. To effectively take advantage of this potential, a proactive governance approach is suggested. The study identifies an international opportunity to develop and apply convergence for technological, economic, environmental, and societal benefits. The panel also suggests an opportunity in the United States for implementing a program aimed at focusing disparate R and D energies into a coherent activity - a "Societal Convergence Initiative”. This study received input from leading academic, industry, government, and NGO experts from the United States, Latin America, Europe, Asia, and Australia.
This book examines the problem of the innovation divide in the world economy, and convergence in innovation performance between leaders and followers, analysed through the prism of Chinese experiences, and explored from an European Union (EU) perspective. The rationale for research conducted in this book is an observation of a significant change in the geography of world innovation, reflected in the emergence of innovation hubs in developing countries and in the shift of manufacturing activity, including high and medium-high technology industries, to emerging economies, mainly China. The book analyses the factors of Chinese innovation success in recent decades, such as: China’s science, technology and innovation policy, increased R&D expenditures, human capital development and the development of clusters and highly specialized industries. It also focuses on the challenges for developed European economies, which are being at risk of losing their knowledge-related sources of competitive advantage. It also offers recommendations for future policy actions. The book’s analysis goes beyond a cross-country comparison, taking into account a regional perspective. The reason for this regional dimension is the increasingly recognized importance of proximity in stimulating innovation processes, and an observed strong geographical polarization of innovation activity at specific regions seen in the emergence of clusters, particularly visible in China. The monograph will provide an up-to-date reference for academics and students across a variety of disciplines. It will be of particular interest to researchers in the area of innovation and practitioners doing business in China, as well as policymakers at international, national and regional levels involved in designing and implementing innovation policy.
Rethinking Regional Innovation and Change brings together papers from leading international scholars in the field of regional development and policy. The contributors examine the interactions between path-dependent developments, institutions, and governance structures that influence regional innovation capacity. Up-to-date case studies present diverse theoretical perspectives from economics, political science, geography, planning, and public policy.
The paper investigates the mechanics through which novel technological principles are developed and diffused throughout an economy consisting of a technologically heterogeneous ensemble of firms. In the model entrepreneurs invest in the discovery and in the diffusion of a technological principle and their profit flow depends on how many firms adopt the innovation and on how long it takes other entrepreneurs to improve it. We show that technological convergence emerges from the competition among entrepreneurs for the profit flow and characterize the economy's growth rate.