Diffusion and adaptation: why even the Silicon Valley model is adapted as it diffuses to East Asia

Diffusion scholarship expects little adaptation of core elements of policy models. However, the empirical reality is different; diffusion of even highly regarded models, such as the Silicon Valley venture capital (VC) policy model, results in marked adaptation. This article demonstrates why the Silicon Valley VC model is necessarily adapted differently by policy-makers in the geographically, ethnically and economically proximate states of Hong Kong, Taiwan and Singapore. More specifically, these policy-makers' interventionist orientations, private sector financing preferences and international versus domestic firm promotion biases drive contextually rational – and unique – adaptations of the Silicon Valley VC policy model.     

Offshore democracy: launch and landfall of a socio-technical experiment

Germany's bank-based financial system has been generally perceived as good at providing long-term debt finance to traditional industry but poor at supplying equity capital to high-tech start-ups. In 1997 a special segment of the Frankfurt stock exchange, the Neuer Markt , was founded to improve the supply of high-risk equity capital in Germany. The subsequent listing of over 300 companies on the Neuer Markt , many of them in technology-intensive sectors, has led to speculation that Germany is rapidly closing the gap with the US, the world leader in high technology. Contrary to this view, this article suggests that these companies have more in common with traditional German small and medium-sized companies (SMEs) than with the Silicon Valley model of governance and innovation.     

Institutionen, Interessen, Netzwerke Unternehmensverflechtung im internationalen Vergleich

In many countries large companies are connected to one another by corporate networks. This analysis presents the analysis of network structures in six countries: Germany, France, Great Britain, Netherlands, Switzerland, and the United States. Networks form part of an institutional structure of the market whose aim is to reduce transaction costs. Networks enable firms to coordinate their behavior and regulate competition. Corporate networks can be compared with interest organizations (e.g., corporatism). They serve to improve the collective capacity of firms for self-regulation. The more comprehensive the networks and the more effective the mechanisms by which interests are filtered, the less their scope to organize narrow sectional interests. The structure of corporate networks is different in different countries. In Germany and Switzerland, for instance, large firms and banks come together in the networks (Konzerne); in France the large companies, the state and the financial companies. The predominant network configuration is influenced in each country by its specific culture, traditions and experience.     

The Venture Capital Perspective on Collaboration with Large Corporations/MNEs in London and the South East: Pursuing Extra‐Regional Knowledge and the Shaping of Regional Venture Capital Networks?

A seeming paradox of globalization is that while innovation and the industries and institutions that support it transcend local and national boundaries, high‐tech innovative activity continues to agglomerate in a select number of high‐capacity regions. Research, however, suggests that innovative regions must—through collaborative activity and related networks—both economize regional capacities while remaining open to global knowledge and finance. Collaboration and network formation are viewed as critical in this regard, as the competitive pressures of globalization are forcing firms to adopt collaborative and open innovation practices: forging relationships with external partners. Two important sources of knowledge and finance are regionally concentrated venture capital firms and large corporations, often globe‐straddling multinational enterprises. While collaboration occurs between these two actors, an understanding of the processes and implications has only begun to emerge. Focusing on collaborative venture capital activity in London and the South East, this exploratory paper presents a preliminary understanding as to the role that this particular collaborative activity plays in the pursuit of complementary, extra‐regional knowledge and expertise, and the extent to which this collaboration is recharacterizing the shape of regionally based venture capital networks.     

China's dualist model on technological catching up: a comparative perspective

Abstract

The central question of this paper is whether China can go beyond simple technological transfer and toward innovation in this age of globalization. By adopting an institutionalist perspective, this paper argues that China has developed a dualist model during its economic transitional period in which the foreign sector has been isolated from domestic firms, while the domestic industrial sectors have also failed to develop organic linkages among themselves to facilitate technological learning and generate innovation. This paper discusses four major institutional arrangements that deeply influence China's technological development – the institutional logic of economic reform, the state's industrial policy, the financial system and the industrial structure. It suggests that, owing to these institutional elements, China has neither developed economies of scale, as compared with the South Korean case, nor has it built up a network-type of economy similar to its Taiwanese counterpart in order to generate the mechanisms needed for technological innovation.     

International Patent Strategies of Small and Large Firms: An Empirical Study of Nanotechnology

The aim of this article is to investigate to what extent small‐firm foreign patents differ from those of their larger counterparts. The research setting consists of the population of U.S.‐owned small and large businesses with patent applications at the World International Patent Organization during 1996–2006 in the emerging field of nanotechnology. Findings reveal a significant and growing contribution of small firms to the globalization of patents. The analysis also suggests that small‐firm patents tend to be more novel and embedded in domestic innovation networks than large‐firm patents. Policy implications are multiple, including putting international patenting on the policy agenda and helping highly innovative small companies to explore foreign commercial opportunities in new markets of capital and technology.     

The Sisyphus’s Rock of Prosperity and Disparity in the Global Economy: Giovanni Arrighi and Apple Inc’s Tax Avoidance Strategies from Obama to Trump

The global value chain (GVC) perspective assumes that business firms’ occupation of high value-added nodes in the global production network can promote their countries’ socio-economic development. However, I argue that society-wide benefits that may follow from firms’ profit-maximizing activities are often ephemeral. Over time the middle class can shrink, and economic inequality can increase even when firms continue to move up to higher value-added niches and garner huge profit. I illustrate this disjunction between business activities and societal development with Apple’s strategies of tax avoidance and reduction from the Obama to the Trump administration. I then draw on the theoretical framework that Giovanni Arrighi sets out in The Long Twentieth Century and ideas from The Myth of Sisyphus by Albert Camus to analyze the Apple case. As my analysis makes clear, the flawed assumption of the GVC perspective reveals its practitioners’ failure to recognize that within global capitalism, permanent and sustained societal affluence is unlikely, and what exists instead is a constant alternation between prosperity and disparity.     

Economic theory and government technology policy

Recent federal proposals and program experiments aimed at improving the innovative performance of American industry have been based on an inappropriate analytic framework. The neoclassical microeconomic analysis upon which these proposals are based emphasizes the undersupply of R & D. However, a more crucial problem in this context is the utilization of complex research results by firms and industries with low levels of in-house research expertise. This problem is a central concern of an alternative approach to the analysis of innovation, termed the information processing framework. This analytic approach, which receives empirical support from an examination of previous cooperative research programs in the United States and Great Britain and an analysis of independent consulting firms' operations, suggests that cooperative or extramural research does not function effectively as a substitute for in-house research. Public policies to encourage innovation should be attentive to the distribution, as well as the supply, of R & D.     

Epistemology of the human sciences

The entrepreneurs of Silicon Valley and Route 128 - America’s leading centers of technological innovation - organized politically in the late 1970s. This paper seeks to explain why high tech business associations in these two regions have adopted widely divergent political stances and behavior. It argues that business interests are defined through the process of organization, and that the attitudes of these groups of industrialists were shaped by distinctive political environments, in turn a result of the different industrial and social histories of the two regions. While much scholarly interest has been devoted to the ways in which business affects political outcomes, the paper suggests that the reciprocal causation is equally important: the political environment is an important determinant of business interests.     

智慧资本、表征资本、产业资本与北京文化创意产业

本文从"智慧资本"、"表征资本"和"产业资本"三个方面论述了北京文化创意产业的概念,提出以创新为"智慧资本",以文化为"表征资本",以产业为"经济资本",构建以"创意"为本体,"文化"和"产业"为资本构架,"智慧资本"为自主创新动力的文化创意产业。     

Social Networks and Collective Action

Despite growing attention to the role of social context in determining political participation, the effect of the structure of social networks remains little examined. This article introduces a model of interdependent decision making within social networks, in which individuals have heterogeneous motivations to participate, and networks are defined via a qualitative typology mirroring common empirical contexts. The analysis finds that some metrics for networks' influence—size, the prevalence of weak ties, the presence of elites—have a more complex interaction with network structure and individual motivations than has been previously acknowledged. For example, in some contexts additional network ties decrease participation. This presents the potential for selection bias in empirical studies. The model offers a fuller characterization of the role of network structure and predicts expected levels of participation across network types and distributions of motivations as a function of network size, weak and strong ties, and elite influence.     

Green Devaluation: Disruption,Divestment, and Decommodification for a Green Economy

This paper argues that taking up questions of value can help political ecologists and economists develop a more powerful analysis of the green economy, as it introduces new urban, industrial, and technological dimensions into a self-identified green capitalism. More specifically, I maintain that processes of green devaluation, decommodification, and techno-industrial replacement are as important in understanding green economic development as new value enclosure and green growth. Twenty-first-century green economic politics have been marked by Schumpeterian ambitions and zero-sum intra-capitalist struggles, alongside a more general hardening of anti-fossil fuel industry politics from both grassroots climate justice activists and, increasingly, mainstream investors. I explore three interrelated initiatives—disruptive innovation in Silicon Valley cleantech, the U.S. fossil fuel divestment movement, and the global financial industry’s stranded assets organizing—as windows into these struggles. Themes of devaluation, obsolescence (both technological and “moral”), and (more or less absolute) decommodification carry through this discussion as activists struggle to translate quantitative advances against fossil fuels into a more profound qualitative break. Understanding these fights is essential to developing more effective engaged scholarship on climate change and a just energy transition.     

Benefiting from Public Sector Innovation: The Moderating Role of Customer and Learning Orientation

This article examines whether the payoff from engaging in innovation‐generating activities is contingent on an organization's level of customer and learning orientation. The authors suggest that innovative activity is associated with higher public service quality when the level of customer and learning orientation within the focal organization is high. They test this hypothesis by drawing on a novel panel data set covering all public nonspecialist hospital organizations in England. Using dynamic panel data estimation techniques, the authors find strong support for a direct relationship between innovative activity and public service quality and for a moderating role of both customer and learning orientation. These findings call for a contingency perspective on public sector innovation and highlight some of the boundary conditions that need to be in place if public service organizations are to benefit fully from their innovative activities.     

技术创新资源对技术创新绩效影响的实证研究

本文从创新资源的角度分析了我国52个国家高新区研发经费投入和人员素质水平对技术创新绩效的影响。基于2005-2007年三年的面板数据,我们发现,研发经费投入对高新区技术创新绩效具有正效应,而人员素质水平对其具有负向影响;同时研发经费投入和人员素质水平会交互影响技术创新绩效。     

Better by design: Korea's neoliberal economy

Abstract

This paper examines the processes of bank and corporate restructuring in South Korea since the 1997–98 economic crisis, and seeks to highlight how the state has intervened in a highly dirigiste manner in order to expedite restructuring in both the commercial bank and corporate sectors. At the same time it demonstrates the clear neoliberal principles that have underpinned the state's attempts to promote restructuring. The state has shown a clear determination to take action against insolvent firms and financial institutions no matter how large or strategically important they may be, to impose hard budget constraints on key economic actors. Furthermore, the state has actively sought to engineer the sale of key domestic firms and banks to foreign investors. We argue that Korea's efforts to create a functioning neoliberal economy have been largely successful and are functional from the perspective of Korean capitalism, if not the perspective of individual Korean firms. Changes in the global economy in the two decades preceding the 1997–98 crisis imposed an increasingly inescapable pressure on the Korean state to effect a neoliberal transformation and Korea's future as a centre of capitalist accumulation has for some time been bound up with the success of the neoliberal project. In conclusion, this paper seeks to draw out the broader implications of this reading of the post-crisis restructuring programme for debates on global economic liberalization and the future of capitalist diversity.     

Friends in high places: The wealth effects of JFK's assassination on the assets of LBJ's supporters

This paper uses anecdotal evidence to identify a group of firms that had significant ties to President Lyndon Johnson and determines the effect of Johnson's unexpected rise to the Presidency on the market value of these firms. The unexpected nature of President Kennedy's death eliminates the confounding event problem typically associated with election results. We are able to identify four separate portfolios of firms that had political ties to Lyndon Johnson. Our research suggests that the market expected significant benefits to accrue to these firms as a result of Johnson's becoming President. When Catholic John Kennedy and Johnson were running together in 1960 a joke hop-scotched around the parties in Texas and Washington that Kennedy had told Johnson, “Lyndon, when we get elected I'm going to dig a tunnel to the Vatican,” and Lyndon had replied, “That's OK with me as long as Brown & Root gets the contract” (Dugger, 1982: 286).     

The problem of regulatory arbitrage: A transaction cost economics perspective

Regulatory arbitrage, or the ability of financial firms to circumvent or neutralize rules, is a classic problem of financial regulation. This article draws on transaction cost economics (TCE) to reformulate this old problem, thus defining regulatory arbitrage as a contracting hazard arising from interactions between the regulator and regulated firms, given bounded rationality and opportunism. Following standard TCE, the article first characterizes the implicit regulatory contract in finance, focusing in particular on the mobile and elastic nature of regulated actors and financial assets as well as the contested utility of financial innovation. It is then argued that this incomplete and hazard-prone regulatory bargain must be matched with a governance structure that both adapts to unforeseen circumstances and avoidance strategies and copes with radical uncertainty about the welfare consequences of financial innovation. To that end, the article discusses how a governance structure here termed “relational regulation” might facilitate such ex post governance under uncertainty.     

Bringing a Network Perspective to Chinese Internet Studies: An Exploratory Analysis

This paper adopts a network perspective to explore the ways digitally-mediated relationships prompt social and/or political participation in China. In the “chicken game scenario”, my analysis suggests that collective actions are facilitated by both weak and strong ties, which generate a fairly unified collective identity that is conductive to high-risk mobilization. In the “public crisis scenario”, it is generally weak ties that facilitate relatively lower-risk mobilization. In the “compromise scenario”, if collective actions do occur, they are generally low-risk and non-political. This appears to be largely due to the dominance of weak ties in the compromise scenario. The “banal scenario” is a black box that has yet to be sufficiently investigated in the future.     

Employees’ resistance to users’ ideas in public service innovation

This article contributes to the existing criticism of the positive emphasis on user participation in service innovation as co-creation by examining employee resistance to user-driven innovation. The empirical base comprises interviews, document studies, and observations from a project that focused on implementing a user-initiated idea in public care services in Norway. To discuss employee resistance to innovative user ideas, a power perspective is included by drawing on the Foucault-based theory of identity regulation and discourse. Employees resist the required identity regulation by distorting the initial innovative idea to align with their problem representations, which is facilitated by entangled discourses. The power relations embedded in the different parties’ subject positions emphasize how governing the user side is incompatible with being governed by the users. The article contributes to our knowledge of service innovation and the co-creation of value by demonstrating discursive mechanisms for twisting value propositions.     

Collaborative Innovation: A Viable Alternative to Market Competition and Organizational Entrepreneurship

There are growing pressures for the public sector to be more innovative but considerable disagreement about how to achieve it. This article uses institutional and organizational analysis to compare three major public innovation strategies. The article confronts the myth that the market‐driven private sector is more innovative than the public sector by showing that both sectors have a number of drivers of as well as barriers to innovation, some of which are similar, while others are sector specific. The article then systematically analyzes three strategies for innovation: New Public Management, which emphasizes market competition; the neo‐Weberian state, which emphasizes organizational entrepreneurship; and collaborative governance, which emphasizes multiactor engagement across organizations in the private, public, and nonprofit sectors. The authors conclude that the choice of strategies for enhancing public innovation is contingent rather than absolute. Some contingencies for each strategy are outlined.