Technological Innovation Across Nations

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1 Technological Innovation Across Nations

2 Contents Introduction 1 Marina van Geenhuizen, Chihiro Watanabe, Vinnie Jauhari, Enno Masurel 1 Introduction 1 2 Content of the Book 5 References 9 Part I Applied Studies: Adoption of Information Technology in National Institutional Systems An Empirical Analysis of the Institutional System's Effects on the Development of China's Personal Computer Industry From Inertia to Innovation 13 Shanyu Lei, Masanobu Kita, Chihiro Watanabe, and Yuji Tou 1 Introduction The Effect of Initial Inertia on the Resulting Trajectory of China's PC Industry Sources of High Performance in China during the PC Industry's Initial Inertia Previous Research 17 2 Analytical Framework: Trajectory of PC Development and Diffusion Dynamic Learning Coefficients and Diffusion of PCs Price Decline Resulting from the Import of PC Parts and International Competition Spillover Effect from Imported PC Parts Influence of Price Competition Elasticity of PCs to GDP 22 3 Empirical Analysis Trends in PC Prices Dynamic Learning Coefficient in China's PC Technology 28

3 viii Contents 3.3 Price Change Due to Imported PC Parts and International Competition Trends in Creating Functionality of PC Innovation 33 4 Conclusions 36 References 37 An Empirical Analysis of the Coevolution of China's Institutional System and Rapidly Growing PC Sector 41 Chihiro Watanabe, Shanyu Lei, Akihisa Yamada, and Masanobu Kita 1 Introduction 42 2 China's Distinct Institutional Characteristics 46 3 Analytical Framework Changes in the Pace of PC Development and Diffusion Institutional System Characteristics Determining PC Development and Diffusion 51 4 Empirical Analysis Multiplier Effects of Phased Development for the Enhancement of PC Development and Diffusion Coevolution of Rapidly Growing PC Development and Institutional Characteristics in Enhancing PC Innovation Conclusions 60 References 61 Appendix: PC Development Trajectory in 24 Countries ( ) 63 Institutional Context for IT Use in the Automotive Industry: A Case Study on the Market Leader in India's Passenger Vehicle Sector 65 Vinnie Jauhari 1 Introduction 65 2 Global Scenario 66 3 Value Chain Analysis of the Automotive Industry 66 4 The Use of IT in an Organizational Framework 70 5 The Context of India's Automotive Industry 76 6 IT in the Broader Perspective of Technology Development 80 7 Information Technology at Maruti Udyog Information Management at Maruti Udyog Information Resources Observations of IT Application at Maruti Udyog Reaching Out to Customers IT and Internet Culture 88 8 Conclusions and Challenges 89 References 92

4 Contents ix Information Technology and Changing Institutional Systems as They Shift from an Industrial to an Information Society: An Initial Comparative Analysis of the USA, Japan, and China 95 Charla Griffy-Brown, Bing Zhu, and Jianbin Jin 1 Introduction 95 2 Theoretical Framework 97 3 Methodology and Data Collection 99 4 A Qualitative Analysis of Institutional Systems in the USA, Japan and China for Comparing the Role of IT Institutional Change in Japan Institutional Change in the USA Institutional Change in China Comparison-of Information Technology Use in the USA, Japan, and China: B2B and IT Use in Business Operations as an Indicator of Institutional Change IT and Institutional Change in the USA IT and Institutional Change in Japan IT and Institutional Change in China Ill 6 Conclusion: Summary Comparison of Institutional Systems in Japan, the USA, and China in Effectively Leveraging IT 115 References 117 Analyzing the Export Intensity of Electronics Firms in India 121 Vinnie Jauhari 1 Introduction Objectives Review of the Literature Proposed Model for Exploring Export Intensity of Electronics Firms in India Proposed Hypotheses for the Study Methodology The Institutional Context of India's Electronics Industry Division of Electronics Output between the Public and Private Sector Comparative Segment Exports for the Years Findings and Analysis Tobit Results for Electronics Firms in India Export Intensity of Domestic Firms Conclusions and Implications 133 References 135

5 x x Contents Part II Applied Studies: Institutional Systems, Entrepreneurship, Knowledge Transfer and Learning Growth of Technology Incubators: An Evolutionary Perspective 141 Marina van Geenhuizen and Danny Soetanto 1 Introduction : The Evolutionary Development of Incubators Factors Influencing Incubator Growth Structure of the Empirical Study Results of the Analysis Discussion 153 References 155 The Relationship between Universities of Professional Education and SMEs: Room for Improvement 159 Enno Masurel and Frans Werkhoven 1 Introduction Setting the Scene Universities of Professional Education Versus Traditional Universities in the Netherlands Public Knowledge Institutions and SMEs Data Collection Empirical Results Conclusion and Recommendations 172 References 173 Small Biotechnology Industry and Institutional Transformation: A Case Study of The Netherlands 177 Marina van Geenhuizen 1 New Business Opportunities and Institutional Constraints Action Plan Life Sciences The Biotechnology 'Landscape' in the Netherlands Biotechnology Developments from a Policy Perspective Institutional Transformation? Supportive Policies for Later Growth Stages Discussion 192 References 193 Index 195

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