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PS-4.01: Trade, foreign direct investments, value chains and innovation network 5
2:00pm - 3:30pm
Session Chair: Xiaolan FU, University of Oxford Discussant: Juana Hernández Chavarria, UAM-X
Location:Asia Afrika Room (Homann)
Challenges to collective efficiency and technological upgrading in the surgical instruments manufacturing cluster in Pakistan
Aalborg University, Denmark
As a result of issues arising from child labour, the shift in most machine based manufacturing to China and weak institutional support, the surgical manufacturing cluster in Sialkot, Pakistan has been facing various challenges. Earlier research works have revealed clustering dynamics in the Sialkot district, governance, upgrading, the cluster’s response to child labour regulations, external linkages with players in the global value chain and collective efficiency etc. This paper aims to identify the challenges specific to upgrading possibilities for this cluster being part of a global value chain in the light of GVC and Innovation Systems concepts. Nadvi and Halder (2005) have discussed the limits to upgrading in the cluster firms and this article covers a follow up on the state of the art and developments in the subsequent period. There is an attempt to determine the nature of competitiveness in the cluster, governance structure of the value chain and upgrading possibilities over time using the global value chains framework and assessing the local institutional setting.
The study is based upon an exhaustive literature review on the surgical instruments manufacturing cluster, secondary data and empirical interview data obtained from the cluster association. It has already been shown that Pakistan has a very weak or completely absent national innovation system which indicates weak institutions and lack of university-industry-government collaborations as well as limited institutional support (Naqvi, 2011). The local and national institutions offer very little support whereas the collective efficiency is poorly developed resulting in high manufacturing costs. For surgical instruments manufacturers, local public procurement is of absolute importance and it needs to be stimulated through the local and national institutions. Collaboration with local universities is also of utmost significance for innovation. There is need for R&D activities but it requires government and policy support as well as linkages with the universities. Significant upgrading can be achieved if the cluster has sufficient support and resources to build their own brand and enter the high value addition activities.
Global Innovation Networks and Clusters in Indian Biopharmaceutical Sector: A Case Study of Bangalore Helix, Karnataka.
Nimita Pandey, Pranav N Desai
Jawaharlal Nehru University, India
The present paper attempts to analyse the nature and typology of Global Innovation Networks (GINs), by assessing the degree of globalness, innovativeness and networkedness of firms, located in Bangalore Helix cluster, one of the prominent hubs of biopharmaceuticals in Southern India. It contends that the cluster, per se, may possess limited ingredients to promote innovation. However, these ingredients can be boosted once coupled with GINs, clusters may qualify as a suitable site for witnessing regional and global knowledge exchanges. The study examines whether state induced cluster succeeds in regions endowed with pre-existing capabilities, vantage points and resources to fuel innovation process. Moreover, it also highlights factors responsible for the emergence of various kinds of linkages, which may simplify the nexus of production and dissemination of knowledge, at global and regional level.
Defining an Ecosystem for Open Innovation from the Focal Actor Perspective: Behavioral Approach
Monika Petraite, Vytaute Dlugoborskyte
Kaunas University of Technology, Lithuania
An ecosystem of open innovation is defined as a designed, and in the same time self-evolving network of actors linked via knowledge exploration, combination, and integration and exploitation activities. Following the innovation system tradition, research design is based on the identification of the ecosystem actors, and linkages existing between them. Within this paper, open innovation ecosystem is being studied from the behavioral perspective of the firm with regard to: 1) open innovation network actors and network settings, 2) knowledge transactions and learning processes within the network, 3) behavioral motivations of the network actors within ecosystem in terms of strategy execution, resource acquisition, and innovation performance challenges as linked to open innovation organization mode of the firm (technology sourcing, collaborative open innovation, or crowd drive open innovation). In order to test entire relationships, quantitative research method was applied, surveying 500 actors of Lithuanian innovation system. As a result, the paper demonstrates the evolution of the open innovation ecosystems from the micro perspective, i.e. we demonstrate how the ecosystem evolves depending on open innovation management maturity of the innovating actor, size and age of an innovating organization, and firm behavior specific characteristics such as innovation strategies, interactive learning and knowledge transaction modes.