Sectoral systems of Innovation and production in Portugal: CIS II - CIS III: inter-firm cooperation continues too low: a structural weakness?…

Manufacture

100% 90% 80% Coke and Chemicals 70% 60% M anuf act uring NEC and Recycling Food Product s Elect rical and Opt ical Equipment 50% 40% 30% Wood, Pulp, Publishing Text iles and Leat her M achinery and Equiment non-NEC Rubber, Non M et t alic 20% 10% Transport Equipment B asic M et als and Fabricat ed Product s 0% 0% 10% 20% 30% 40% 50% Proportion of Enterprises w ith Innovating Activities involved in Cooperation (%)

A análise ...1

• •

“efeito de estrutura”

A composição sectorial da economia portuguesa tem evoluido no sentido de um peso maior do sector dos serviços. Contudo, o sector da

indústria transformadora

é ainda mais importante em relação a muitos países da OCDE, e a distribuição do emprego pelos sectores produtivos portugueses permaneceu estável até ao início dos anos noventa, assim como fortemente dominada pelos sectores:

– –

têxtil calçado

–

produtos alimentares

A análise ...2

•

“efeito de intensidade”

• •

as deficiências que Portugal revela ao indústrias, devido sobretudo a: nível estrutural estão também a constrangir a inovação em muitas

baixa produtividade

baixo nível educacional da população activa

•

despesa reduzida em I&D

•

fraca ligação ás fontes de informação sobre novos conhecimentos

Inovação em Portugal

por sector industrial

Machinery and equipment NEC;Electrical and optical equipment Coke;chemicals;rubber and plastic;other non-metallic minerals Electricity; gas and water distribution 36% 45% 49% Wood;pulp and paper;publishing 23% Food products; beverages and tobacco;Textiles and leather Basic metals and fabricated metal products 20% 19% Transport equipment and manufacturing NEC 17%

A análise ...3



o

“efeito de intensidade”

situações, sendo educativo e de particularmente qualificação da tem revelado dominar em muitas influenciado população.

pelo baixo nível

• O

financiamento directo da I&D pela indústria

ausência, no passado, de , sendo reduzido, não tem tido impacto significativo: é sobretudo o resultado da

políticas integradoras de ciência e tecnologia

A análise ...5

Para além do

capital individual ou mesmo agregado, o

capital social

, enquanto

capacidade colectiva de aprendizagem

, tem emergido como um conceito mais importante para o desenvolvimento socio económico

.

Conceptualization of the Relationship between the S&T System and the Economic and Social System

Inputs ( of box 1) S&T System (box 1) K Economic and Social System (box 2) D Outputs (of box 1) Inputs (of box 2)

‘K’ refers to knowledge, and ‘D’ refers to development

Outputs (of box 2)

TECHNOLOGY INTENSITY of INDUSTRIES

Concept:

–

measures the effort put into R&D activities within each industry method 1: Direct Technology Intensity:

–

ratio between the expenses on R&D activities output (typically gross output or value added) and a measure of

TECHNOLOGY INTENSITY of INDUSTRIES

method 2: Considering second-round gains

–

the R&D embodied in the output of an industry includes the R&D effort realized by that industry but also the R&D embodied in the intermediate goods it acquires from other industries method 3: Taking into account the cumulative nature of R&D

–

The technology intensity of an industry after several years is the sum of the technology intensity of that industry for the all the years considered

OECD INDUSTRIAL SECTORAL TAXONOMY ACCORDING TO TECHNOLOGY INTENSITIES

The OECD (1996) suggests a breakdown of industries into four groups, according to their level of technology intensity:

—

High Technology Intensity industries

—

Medium High Technology Intensity industries

—

Medium Low Technology Intensity industries

—

Low Technology Intensity industries The classification of industries into these four groups is roughly the same for every OECD country using whichever measuring methodology.

TECHNOLOGY INTENSITIES of INDUSTRIES

0.7

0.6

0.5

Aircraft

0.4

0.3

Radio, TV & Communication Equipment

0.2

Office & computing machinery Drugs & Medicines

0.1

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Year

TECHNOLOGY INTENSITIES of INDUSTRIES

0.4

0.3

0.2

0.1

0.9

0.8

0.7

0.6

0.5

Aircraft Drugs & Medicines Radio, TV & Communication Equipment Office & computing machinery

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Year

TECHNOLOGY INTENSITIES of INDUSTRIES

0.9

0.8

0.7

0.6

0.5

Aircraft

0.4

0.3

0.2

Drugs & Medicines

0.1

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993

Year

TECHNOLOGY INTENSITIES of INDUSTRIES

0.3

0.2

0.1

0.6

0.5

0.4

Aircraft Radio, TV & Communication Equipment Drugs & Medicines

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Year

TECHNOLOGY INTENSITIES of INDUSTRIES

0.2

0.15

0.1

0.05

0.5

0.45

0.4

0.35

0.3

0.25

Radio, TV & Communication Equipment Office & Drugs & Medicines Computing machinery

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Year

TECHNOLOGY INTENSITIES of INDUSTRIES

0.45

0.4

0.35

0.3

0.25

0.2

Aircraft Drugs & Medicines Office & Computing machinery

0.15

0.1

0.05

Radio, TV & Communication Equipment

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983

Year

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994

TECHNOLOGY INTENSITIES of INDUSTRIES

0.45

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

Aircraft Office & Computing machinery Radio, TV & Communication Equipment

0 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995

Year

Pavitt ´s formulation

 Purpose: to describe and explain sectoral patterns of technical change  Data: UK firms between 1945 & 1979  Concept: Technological knowledge is specific to firms and applications, cumulative in development and varied amongst sectors.

Original Neoclassical formulation • New technology instantly diffuses across capital.

• Make exogenous the production of technology and innovations.

• Do not reflect the variety of the sources.

Pavitt ´s formulation • Three part taxonomy based on firms: a) Supplier dominated b) Production intensive c) Science based •Make endogenous the production of technology and innovations.

•Technical change is largely a cumulative process specific to firms.

Analysis of PAVITT

´

s data

Compare sectors in terms of:  The sectoral sources of technology used in a sector;  The importance of intramural and extramural knowledge sources, and of product and process innovation (institutional sources and nature of the technology) ;  The characteristics of innovating firms: their size and principal activity.

Institutional sources of main knowledge inputs 7% Public technological infrastructure 34% Other industrial firms 59% Within the innovating firms themselves  Most of the knowledge applied by firms in innovations is not general purpose and easily transmitted and reproduced, but appropriate for specific applications and appropriated by specific firms.

Characteristics of innovating firms: size, technological diversification, patterns of production and use of innovations  Innovating firms principally in electronic and chemicals, are relatively big, and they develop innovations over a wide range of specific product groups within their principal sector, but relatively few outside.

 Firms principally in mechanical and instrument engineering are relatively small and specialized, and they exist in symbiosis with large firms, in scale intensive sectors like metal manufacture and vehicles, who make a significant contribution to their own process technology.

 In textile firms, on the other hand, most process innovations come from suppliers .

Analysis based on the innovating firm:

Pavitt

´

s taxonomy

Different sectoral technological trajectories:  Supplier dominated  Production intensive  Science-based

Sectoral differences :



Sources of technology



User needs



Means of appropriating benefits

Sectoral technological trajectories

Supplier dominated firms

Manufacturing House building Agriculture Many kinds of Services Informal household Characteristics:  Mainly small;  Weak in-house R&D and engineering capability;  Appropriate less on the basis of technological advantage;  Based mainly on professional skills, aesthetic design, trademarks and advertising;  Technological trajectories defined in terms of cutting costs;  Most innovations come from suppliers of equipment and materials.

Production intensive firms

Steel Food Glass Instruments Machinery Characteristics:  Small (Instruments and Machinery) or large;  Some kind of in-house R&D and strong engineering capability;  Based mainly on process secrecy and know-how, technical lags, patents, dynamic learning economies, design know-how;  Technological trajectories defined in terms of cutting costs or product design;  Produces high portion of their own process technology.

Science-based firms

Electronics/ Electrical Chemicals Characteristics:  Mainly large;  Strong in-house R&D and engineering capability;  Based mainly on R&D know-how, patents, process secrecy and know how, dynamic learning economies;  Mixed technological trajectories;  Produces high portion of their own process technology.

Technological linkages and changing trajectories

Supplier Demanded firm Science-based firms Scale-intensive firms Specialized Equipment suppliers

A revised Pavitt ´s taxonomy

Sectoral differences :  Size of firms (big in chemicals, aircraft, electronic; small in machinery, software)  Type of product (price sensitive vs performance sensitive)  Objectives of Innovation (product vs porcess vs both)  Sources of innovation (suppliers; customers; in-housse; basic research)  Locus of own innovation (R&D labs in Chemicals and electronics; engineering dept in automotive; system dept in services) Different sectoral technological trajectories: 

Supplier dominated



Scale- intensive



Information-intensive



Science-based



Specialiuzed suppliers

Core sectors Sources of technology Technology strategy Supplier dominated  Agriculture   Services Traditional manufacture    Suppliers Production learning  Technology from elsewhere Scale intensive  Bulk materials  Civil engng.  Producti on engng.  Producti on learning  Design offices  Specializ ed suppliers  Incremen stal integratio n of chnges  Diffusion of best practices Information intensive  Finance   Retailing Publishing  travel  Software & system Dept.  Specialized suppliers  Information processinh systems Science-based   Electronics chemicals   R&D Basic Research   Exploit basic R&D Complex products Specialized suppliers  Machinery   Instruments software    Design Advanced users Integrate technology incrementall y

ÍNDICES DE ACUMULAÇÃO TECNOLÓGICA

Or ientati on-based i ndustry groups Resour ce-intensi ve Labour-int ensi ve Scale-intensi ve Speci alised-suppl ier Sci ence-based USA Sweden Germany Nether lands 1970 0,83 0,49 0,85 1,23 2,14 1993 0,8 7 0,6 8 0,8 1 1,1 3 1,7 0 1970 1,22 0,60 1,10 1,09 0,58 1993 1,26 0,60 1,04 1,06 0,76 1970 1993 0,54 0,95 1,13 1,32 0,88 0,77 0,98 1,10 1,10 0,79 1970 1,82 1,01 1993 1,96 0,89 0,74 0,72 0.75

0,80 0,64 1,01 Spain 1970 1,91 1,43 1993 1,29 1,14 0,76 0,56 0,27 1,30 0,59 0,51 Portugal 1970 1993 1,60 1,24 2,69 3,91 0,59 0,59 0,34 0,58 0,28 0,15

O Processo de Mudança Tecnológica

Acumulação Tecnológica (aprendizagem) Capacidade Tecnológica As bases necessárias para gerar e gerir a mudança tecnológica (1) Conhecimento, “skills” e experiência (2) Instituições e ligações intra e inter-empresas Mudança Tecnológica (a) Introdução de tecnologia “embodied” em novos produtos e/ou novos processos.

(b) Adaptação e optimização da capacidade produtiva existente Capacidade de Inovação Output Industrial Componentes de sistema de produção:

•

capital

•

“know-how” e “skills” da força de trabalho

•

Input specs

•

Organização e procedimentos de produção

Indicators such as R&D intensity or patent-counting fail to appreciate the innovative capability of most traditional industries: technological change in fact is mainly based upon learning-by-doing and tacit knowledge rather than conventional R&D activities.

Traditional Industries vs.

High-Tech Industries Accumulation of technological knowledge Technological change is intense and rapid European industries seems to fall into the new category of

skill intensive

industries (Pavitt -1987).

Skill-intensive industries (SII) characteristics are: -Small size firms -High levels of regional concentration -High levels of wages -Low levels of capital intensity -Specific nature of technological change

knowledge.

localized technological

Aspects that play a major role in SII as source of technological change: -Internal organization of companies -Structure of internal labor markets -The close interaction between changes in process and products in terms of design.

- The creation process of firms and the accumulation of tacit knowledge.

Technological knowledge : Tends to be highly localized WHY ?

-Relies upon a continuum of specifications of different forms of knowledge: ►

Generic and Scientific Knowledge

(public good) ►

Tacit Knowledge

(result of lengthy learning processes, idiosyncratic and specific to the business of the firm) highly - It is costly to use elsewhere (switching costs) - Highly impure public good

Why is this Tacit Knowledge so

firm specific

?

Technological knowledge is embedded in the “circumstances” in witch the firm operates The traditional distinction between new technologies and existing technologies appears much weaker (relevant search costs) The generation of technological knowledge is the result of a mix of production, learning and communicating, of which R&D is only a part

Localized Knowledge Deduction from general principles Experiment, learning-by-doing, learning-by-using.

Codified Knowledge

Firms rely upon varying mixes of tacit and generic knowledge in order to generate localized technological innovations.

But more on tacit k. or more on generic k.?

Depends … -The amount of resources devoted to implementing the accumulation of tacit knowledge by each agent in the system -Its receptivity to technological knowledge generated by third parties -The properties of the system in terms of connectivity and distribution of receptive agents

New technological change emerges also from the daily interaction of learning firms among themselves and with other scientific institutions

What are the main incentives to invest on learning-by-doing or R&D activities?

“

Firms are pushed to introduce technological innovations by pressure of demand

” (Rosenberg, 1974) Increase rate of growth of output Investment on learning-by-doing and R&D activities Growth of labor productivity Technological Innovation Lower average unit costs

Path Dependent

Validating Previous Hypotheses: mechanical engineering industry Technological Change

-

relevance of learning processes

-

creative recombination of existing knowledge

-

standard R&D activities Data set

-

136 manufacturing firms

-

Time span of six years (1988-1994)

-

In these years, the industry recovered from the crises of the late 1980s and experienced a fast growth fueled by the demand for capital goods after 1991, with an increase in added value and TFP

The Faster is the output growth The larger are the stimulations to capitalize on acquired tacit knowledge The faster is the rate of introduction of localized technological innovations Hence Makes possible Increase TFP Generation of new localized technological change Empirical Evidence Recursive cycle of growth Increase market share and output Reduce market prices And

THE INDUSTRIAL STRUCTURE

35 30 25 20 15 10 5 0 1983 EU-13 40 35 30 25 20 15 10 5 0 1987

YEAR

1991 1995 Food, beverages & tobacco Textiles, apparel & leather Wood products & furniture Paper, paper products & printing Chemical products Non-metallic mineral products Basic metal industries Fabricated metal products Other manufacturing, nec 1983 Portugal 1987 1991 YEAR 1995

How far Industrial structure affects innovation?

0,18 0,17 0,16 0,15 0,1 0,09 0,08 0,07 0,14 0,13 0,12 0,11 0,06 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 Australia Austria Belgium Canada Denmark Finland France Germany Greece Italy Japan Korea Mexico Netherlands New Zealand Norway Portugal Spain Sweden UK USA

HIPÓTESES

:

Perspectivas para a “mudança” •A noção de

mudança tecnológica localizada:

• um processo conjunto de produçãp,

aprendizagem

e comunicação • um processo

endógeneo

, envolvendo

especialização

e

diversificação

• a importancia do

mercado

, apesar da relevancia das

politicas públicas

• baseado num “mix” de

conhecimento genérico e tácito

•A

base cientifica e tecnológica

nacional

…”foresight should be resisted. …the aim of policy should be to create a broad and productive science base, closely linked to higher education…”,

Pavitt (1998)

um caso de estudo – o sector da

internet

Develop software solutions Designed to enhance the Internet experience for both Consumers and business

Software Solutions

CONSUMER

ACCESS PROVIDERS

CONTENTS SERVICES E-TAILERS

“THE INTERNET”

BUSINESS

INTERNET SERVICES

ALTERNATIVE MEDIA E-CHANNELS

Enabling Technologies

Create hardware/software solutions which enable the efficient operation of the internet

Um caso de estudo:

o modelo de negócios da internet

On-line Products and Services

Business/Customer Support

Technological Innovation Traditional Corporations

•

DELL

•

BARNES & NOBLE

• •

CHARLES SCHWAB CITIBANK

•

MACY’S E CHANNELS Content Services

•

THE GLOBE.COM

•

THE MOTLEY FOOL

•

BROADCAST.COM

•

MPATH

•

MONSTER.COM

•

NETCENTIVES Alternative

•

EARTHLINK

•

MINDSPRING Media

•

ESPN

•

CNN

•

Wall St.

•

MSN

•

EARTHWEB

•

AOL

•

EXCITE @HOME

•

VERTICALNET

•

BABY CENTER

•

AMAZON.C

OM

•

E*TRADE

•

BEYOND.C

OM

•

EBAY

•

BUY.COM

E-tailers Access Providers

•

VERIO

•

COMPUSERVE

•

NETCOM

•

AT&T WorldNet

•

Ameritech Service Providers

•

DOUBLECLICK

•

USWEB/CKS

•

IXL

•

MEDIA TRIX

•

RAZORFISH

•

ABOVENET

•

Networks Associates

•

WebOrder

•

Vignette

•

Ariba IBM Software solutions

•

NetObjects

•

Real Networks

•

Egain

•

Netscape

•

Marimba

•

Inktomi

•

Sitara Networks

•

Resonate

•

Cisco IOS

•

Hewlett-Packard

•

Sun

•

Cisco

•

Lucent/Ascend

•

Nortel/Bay Networks

•

Nexabit

•

Netopia

•

Broadcom

•

Verifone Enabling Technologies

Source: joint Venture – Sillicon Valley Network, 1999

um caso de estudo – a industria de

internet

•It is unlikely that technological clusters aimed at supporting service integration will emerge, unless incentives exist to integrate elements in the

value chain

...

Hawkins (1997) •

Internet business models:

(McKnigth et al, 2000)

creative destruction

, as usual !!

•Evolucão contínua para uma “nova”

cadeia de valor

•A necessidade de extender a análise ao

contexto :

-

Communidades de utilizadores

-

Contexto regional/local

Promover o

Capital Social

num contexto de base tecnológica

caso de estudo: A diversidade regional na EU

Source: Sixth Periodic Report DG XVI, 1998

análise:

sistemas regionais fragmentados

SMEs SMEs Large firms SMEs SMEs SMEs Universities SMEs SMEs Regional Government SMEs Regional economy SMEs SMEs Sectoral Associations SMEs SMEs SMEs SMEs Technology Centers SMEs Business Services Chamber of Commerce Large firms SMEs SMEs SMEs SMEs SMEs Technology Consultants SMEs SMEs Large firms SMEs SMEs SMEs SMEs

A learning region

:

um sistema de inovacão regional Open gate: International R&D/academic excellence networks SMEs SMEs SMEs Cluster SMEs SMEs SMEs Large firms Science base: Universities; Public R&D; Laboratories Valorisation of R&D and Tech. Transfer Office Regional economy SMEs SMEs Large firms; Tech. Centers; Sect. Associa tions SMEs SMEs SMEs SMEs Regional government SMEs SMEs SMEs SMEs SMEs SMEs Technology Centers Sectoral Associations SMEs SMEs Business services & tech. con sultants Business intermediaries: Cham. of Comm.; Local Agencies BICs SMEs SMEs SMEs SMEs SMEs SMEs SMEs SMEs Open gate: International business consultants & specialized business services SMEs SMEs

Estratégias de Inovacão Regional Landabaso et al. (1999)

–

Internal coherence

of the regional innovation system by connecting its different key elements: R&TDI supply with well identified Demand and business needs, from SMEs in particular.

– Increase the amount and, more importantly the quality of

innovation public spending

through innovation projects (bigger and better spending in this field through regional policy) .

–

Rationalise the regional innovation support system

awareness, eliminating duplications, filling gaps and promoting synergies. by raising

Successful stories

:

The Regional Technology Plans Wales (UK), Limburg (Netherlands), Lorraine (France) and Leipzig-Halle Dessau (Germany), Central Macedonia (Greece), Castilla Y Leon (Spain) and Abruzzo (Italy).

O argumento…

•“ With some notable exceptions, the regional developmment debate in Europe has been dominated by

exogeneous models

to such an extent that development tends to be conceived

as something that is introduced to

, or visited upon, less favoured regions, LFRs, from external doors… • …this kind of regional policy did little or nothing to stimulate

localised learning

, innovation and indigeneous development

within

LFRs”,

Henderson & Morgan (1999)