Conference Agenda

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Session Overview
Session
int-2.02: Advancing Global Innovation: Insights from FDI, Technology, and Procurement
Time:
Friday, 05/Apr/2024:
1:00pm - 2:30pm

Session Chair: Dr Antonis Ballis, Aston University, United Kingdom;
Location: MB704

Main Building, 7th floor Take either the A or C lift

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Presentations

Knowledge spillovers based on patent citation data: A study of the differential impact of the foreign and domestic citations.

Ruchi Sharma1, Suma Athreya2, Hariom Arora1, Tanmay Sharma1, Mohd Danish3

1IIT Indore, India; 2IIT Delhi, India; 3Swinburne University, Australia;

Today’s inventions depend upon earlier creative developments; thus, information disclosure in the patent document is a potential source for technology transfer. For Indian economy, this channel gains prominence as majority patents are granted to non-residents. Further, the presence of foreign firms competing in the domestic and international market challenges the domestic firms to invest in research. From a developing country perspective, it remains unexplored if domestic firms gain knowledge from the innovation activities of their domestic and foreign counterparts. We study these knowledge flows among the firms based in India using citation information of patents granted to Indian assignees at the USPTO from 1999-2016. The knowledge spillovers are further studied by analysing the differential impact of citations made to domestic and foreign companies on the total factor productivity of firms.



Green FDI and technological spillovers in host economies

Dalila Ribaudo1, Roberta Rabellotti2, Vito Amendolagine3

1Aston University, United Kingdom; 2University of Pavia; 3University of Foggia;

The paper aims to extend the evidence on the role of green foreign direct investment (FDI) in renewable energy (RE) technologies to spread innovation in the host economies. It is based on two previous articles aimed at exploring the impact of green FDI on the development of green technologies by investors (Amendolagine et al., 2021) and by their foreign subsidiaries (Amendolagine et al., 2023). Here we aim at investigating the relevance of green FDI to trigger technological spillovers in the host economies, by transferring green knowledge to local companies.

With a focus on innovation in FDI host economies, Branstetter (2006) finds that Japanese firms' FDIs in the United States increase the likelihood to license MNEs technology to local firms, and the licensing leads to an increase in the innovative activity of local firms. The author also finds that the impact of FDI on knowledge spillovers is stronger for firms that are more technologically advanced. This is because more technologically advanced firms are more likely to have the absorptive capacity to use and adapt the knowledge transferred by MNEs. In the context of environmental technologies, Grafstrom (2018) investigates knowledge spillovers in the wind power industry within the European Union. The paper explores the transfer of knowledge and technology across countries and its impact on the wind power sector. The findings suggest the existence of international knowledge spillovers, highlighting the importance of FDI in facilitating knowledge diffusion in the renewable energy sector.

With a focus on green FDI, Amendolagine et al (2023), show that (i) foreign ownership positively impacts on the companies’ innovative capabilities – measured by the quality and quantity of green patents; (ii) this green advantage vis-à-vis domestic companies is larger in less developed countries; (iii) green FDIs are more effective when technologies are characterized by low tradability and a large component of Doing-Using-Interacting (DUI) in knowledge production.

In this paper, the empirical analysis is based on an updated version of the green FDI dataset used in Amendolagine et al. (2021) and Amendolagine et al. (2023). Green FDIs are defined as foreign direct investments undertaken by firms with at least one climate change-related technology patent in the following RE technologies (CPC class Y02E). The database includes 1,055 green FDIs in the period from 2003 to 2015.

This paper aims at extending Branstetter (2006) to estimate the impact of green FDIs on two different outputs: (i) the number of citations to foreign investors’ green patents by of green patents invented in the host economy; (ii) the number of co-patents applied by foreign investors and local companies.

Different potential moderating factors are tested using a negative binomial model estimator ( see Amendolagine et al., 2023; Branstetter, 2006; Piperopoulos et al., 2019).: (i) the type of green FDI, i.e., greenfield or cross-border acquisition; (ii) the green technology specialization of the foreign investor (e.g., solar or wind); (iii) the technological and economic development level of the host economy; (iv) the direction of green FDI (e.g., North-South or South-North).



Harnessing Health Technology Assessment as a criterion for Public Procurement for Innovation

Fernanda Steiner Perin

Birmingham City University, United Kingdom;

Global public health faces unprecedented challenges, exacerbated by pandemics, climate change, and armed conflicts, amplifying the strain on healthcare systems worldwide. The evolving innovation policy landscape has shifted towards addressing grand challenges, emphasising transformative approaches. In healthcare, Public Procurement for Innovation (PPI) emerges as a strategic tool to navigate these challenges. This study investigates the integration of Health Technology Assessment (HTA) into PPI across seven diverse healthcare systems (England, Canada, Australia, Germany, Colombia, Mexico, and India). While developed countries seamlessly integrate HTA into procurement decisions, developing nations are at varying stages of HTA adoption. The study highlights HTA's potential as a pivotal criterion for PPI, providing an evidence-based approach to assess health technologies' value and impact, fostering innovation, optimising resource allocation, and improving population health outcomes. Ongoing refinement of HTA methodologies, stakeholder engagement, and policy alignment are crucial to fully leverage HTA in shaping public procurement and promoting healthcare innovation.



INTERNATIONAL EXPERIENCE AND POST-ENTRY SPEED OF INTERNATIONLISATION: THE MODERATING ROLE OF BIG DATA ANALYTICS

Chi Vu

Durham University, United Kingdom;

This study explores the intricate relationship between a firm's prior international experience, the adoption of Big Data Analytics (BDA), and the speed of internationalization. We posit that BDA, as a driver of organizational performance, can reshape the conventional role of international experience. Applying the Knowledge-Based View, we propose that BDA utilization functions as a contingency factor, impacting the marginal benefits of experiential learning and shaping the speed of internationalization. In addition, this paper embraces the inertia perspective and explores the contingent factors that influence the weakening impact of BDA on the relationship between international experience and post-entry speed of internationalization, namely technological discontinuity, which serves as a means to overcome organizational inertia, and organizational legitimacy, which may confine firms within existing organizational routines. The evidence show that the detracting effect between BDA and international experience will be more pronounced when firms have high levels of technological discontinuity, whereas the assumed detracting effect between international experience and BDA will be less pronounced when firms have high levels of organizational legitimacy.