IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v118y2017icp324-333.html
   My bibliography  Save this article

Varieties of capitalism, innovation performance and the transformation of science into exported products: A panel analysis

Author

Listed:
  • Malik, Tariq H.

Abstract

This study addresses the outstanding question in comparative capitalism literature of whether Mixed Market Economies (MMEs) are always at a comparative disadvantage regarding innovation performance because of their assumed institutional incoherence (lack of institutional complementarities). Based on panel data for 26 OECD countries over 21years, we compare MMEs with Liberal Market Economies (LMEs) and Coordinated Market Economies (CMEs) in relation to four types of innovation outcomes (publications, patents, exports and transformation of science). The comparative analysis is conducted at both an integrated and a dyadic level. The integrated level of analysis compares different groups of countries. This study shows that MMEs are at a disadvantage regarding publications, patents and exports. However, MMEs perform better than LMEs and CMEs in the transformation of national science into exported products from high R&D intensity sectors. At the dyadic level of analysis, individual MMEs are compared with a typical LME (USA) and a typical CME (Germany). This comparison shows that some MMEs perform better than the USA and Germany. The evidence reduces support for the assumption that MMEs are always at a comparative disadvantage due to institutional incoherence. The findings indicate that institutional incoherence does not in itself inhibit innovation performance in high R&D intensity sectors.

Suggested Citation

  • Malik, Tariq H., 2017. "Varieties of capitalism, innovation performance and the transformation of science into exported products: A panel analysis," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 324-333.
    • Handle: RePEc:eee:tefoso:v:118:y:2017:i:c:p:324-333
    DOI: 10.1016/j.techfore.2017.02.032
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162517302810
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techfore.2017.02.032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lawrence White, 2012. "Introduction: Antitrust and Regulatory Update," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 41(4), pages 249-250, December.
    2. Douglass C. North, 1991. "Institutions," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 97-112, Winter.
    3. Martin R Schneider & Conrad Schulze-Bentrop & Mihai Paunescu, 2010. "Mapping the institutional capital of high-tech firms: A fuzzy-set analysis of capitalist variety and export performance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 246-266, February.
    4. Richard Nelson, 2006. "Reflections on "The Simple Economics of Basic Research": Looking Back and Looking Forwards," LEM Papers Series 2006/20, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    5. Costantini, Valeria & Liberati, Paolo, 2014. "Technology transfer, institutions and development," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 26-48.
    6. Taylor, Mark Zachary, 2004. "Empirical Evidence Against Varieties of Capitalism's Theory of Technological Innovation," International Organization, Cambridge University Press, vol. 58(3), pages 601-631, July.
    7. Hall, Peter A. & Gingerich, Daniel W., 2009. "Varieties of Capitalism and Institutional Complementarities in the Political Economy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 39(3), pages 449-482, July.
    8. Krammer, Sorin M.S., 2015. "Do good institutions enhance the effect of technological spillovers on productivity? Comparative evidence from developed and transition economies," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 133-154.
    9. Li, Xibao, 2015. "Specialization, institutions and innovation within China's regional innovation systems," Technological Forecasting and Social Change, Elsevier, vol. 100(C), pages 130-139.
    10. James T. Walker & Christopher Brewster & Geoff Wood, 2014. "Diversity between and within varieties of capitalism: transnational survey evidence," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(2), pages 493-533.
    11. Allen, Matthew & Funk, Lothar & Tüselmann, Heinz, 2006. "Can Variation in Public Policies Account for Differences in Comparative Advantage?," Journal of Public Policy, Cambridge University Press, vol. 26(1), pages 1-19, May.
    12. Ram Mudambi, 2008. "Location, control and innovation in knowledge-intensive industries," Journal of Economic Geography, Oxford University Press, vol. 8(5), pages 699-725, September.
    13. Akkermans, Dirk & Castaldi, Carolina & Los, Bart, 2009. "Do 'liberal market economies' really innovate more radically than 'coordinated market economies'?: Hall and Soskice reconsidered," Research Policy, Elsevier, vol. 38(1), pages 181-191, February.
    14. Richard R. Nelson, 2006. "Reflections on "The Simple Economics of Basic Scientific Research": looking back and looking forward," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(6), pages 903-917, December.
    15. Michael A. Witt & Gregory Jackson, 2016. "Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(7), pages 778-806, September.
    16. Casper, Steven & Whitley, Richard, 2004. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," Research Policy, Elsevier, vol. 33(1), pages 89-106, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Eun-Hee & Kim, Yeonbae, 2023. "Can innovation be induced by state involvement in the market? Evidence within an expanded framework of Hall & Soskice (2001)," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 264-284.
    2. Malik, Tariq H. & Xiang, Tao & Huo, Chunhui, 2021. "The transformation of national patents for high-technology exports: Moderating effects of national cultures," International Business Review, Elsevier, vol. 30(1).
    3. Malik, Tariq H., 2018. "Defence investment and the transformation national science and technology: A perspective on the exploitation of high technology," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 199-208.
    4. Malik, Tariq H., 2019. "Society-nature-technology (SNT) nexus: Institutional causes and cures of national morbidities," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 491-503.
    5. Hwang, Jinsoo & Kim, Jinkyung Jenny & Lee, Kwang-Woo, 2021. "Investigating consumer innovativeness in the context of drone food delivery services: Its impact on attitude and behavioral intentions," Technological Forecasting and Social Change, Elsevier, vol. 163(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Eun-Hee & Kim, Yeonbae, 2023. "Can innovation be induced by state involvement in the market? Evidence within an expanded framework of Hall & Soskice (2001)," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 264-284.
    2. Boschma, Ron & Capone, Gianluca, 2015. "Institutions and diversification: Related versus unrelated diversification in a varieties of capitalism framework," Research Policy, Elsevier, vol. 44(10), pages 1902-1914.
    3. Alan Hughes, 2014. "Short-Termism, Impatient Capital and Finance for Manufacturing Innovation in the UK," Working Papers wp457, Centre for Business Research, University of Cambridge.
    4. Michael A. Witt & Gregory Jackson, 2016. "Varieties of Capitalism and institutional comparative advantage: A test and reinterpretation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(7), pages 778-806, September.
    5. Daniel Herrero & Julián López-Gallego, 2022. "Revisiting varieties of capitalism: an empirical analysis of the institutional determinants of innovation in Germany," SN Business & Economics, Springer, vol. 2(8), pages 1-31, August.
    6. Meelen, Toon & Herrmann, Andrea M. & Faber, Jan, 2017. "Disentangling patterns of economic, technological and innovative specialization of Western economies: An assessment of the Varieties-of-Capitalism theory on comparative institutional advantages," Research Policy, Elsevier, vol. 46(3), pages 667-677.
    7. Silvia Teuber & Uschi Backes-Gellner, 2012. "How do companies adjust their organization to national institutions: evidence from matched-pair engineering companies," Economics of Education Working Paper Series 0082, University of Zurich, Department of Business Administration (IBW), revised Apr 2013.
    8. Weng, David H. & Peng, Mike W., 2018. "Home bitter home: How labor protection influences firm offshoring," Journal of World Business, Elsevier, vol. 53(5), pages 632-640.
    9. Stefan Ćetković & Aron Buzogány & Miranda Schreurs, 2016. "Varieties of clean energy transitions in Europe: Political-economic foundations of onshore and offshore wind development," WIDER Working Paper Series wp-2016-18, World Institute for Development Economic Research (UNU-WIDER).
    10. Fan, Di & Li, Yi & Chen, Liang, 2017. "Configuring innovative societies: The crossvergent role of cultural and institutional varieties," Technovation, Elsevier, vol. 66, pages 43-56.
    11. Reale, Filippo, 2019. "Governing innovation systems: A Parsonian social systems perspective," Technology in Society, Elsevier, vol. 59(C).
    12. Giovanni Dosi & Valérie Revest & Alessandro Sapio, 2016. "Financial regimes, financialization patterns and industrial performances : preliminary remarks," Post-Print halshs-01418040, HAL.
    13. Lee, Keun & Shin, Hochul, 2021. "Varieties of capitalism and East Asia: Long-term evolution, structural change, and the end of East Asian capitalism," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 431-437.
    14. Rana, Mohammad B. & Morgan, Glenn, 2019. "Twenty-five years of business systems research and lessons for international business studies," International Business Review, Elsevier, vol. 28(3), pages 513-532.
    15. Nidthida Lin, 2020. "Designing Global Sourcing Strategy for Cost Savings and Innovation: A Configurational Approach," Management International Review, Springer, vol. 60(5), pages 723-753, October.
    16. Kellard, Neil M. & Kontonikas, Alexandros & Lamla, Michael J. & Maiani, Stefano & Wood, Geoffrey, 2023. "Institutional settings and financing green innovation," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 89(C).
    17. Mastroeni Michele, 2013. "Engaging the evolution of varieties of capitalism: a two-tier approach to examining institutional change," Business and Politics, De Gruyter, vol. 14(4), pages 1-30, January.
    18. Carney, Michael & Shapiro, Daniel & Estrin, Saul & Liang, Zhixiang, 2018. "National institutional systems, foreign ownership and firm performance: the case of understudied countries," LSE Research Online Documents on Economics 87042, London School of Economics and Political Science, LSE Library.
    19. Nadarević, Sabine & Martin, Alexander, 2020. "A comparative study on the institutional determinants of social entrepreneurial activity: The moderating effect of capitalism," Flensburger Hefte zu Unternehmertum und Mittelstand 19, Jackstädt-Zentrum Flensburg.
    20. Schmid, Jon & Kwon, Seokbeom, 2020. "Collaboration in innovation: An empirical test of Varieties of Capitalism," Technological Forecasting and Social Change, Elsevier, vol. 157(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:118:y:2017:i:c:p:324-333. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.