This paper analyses how firms' skill development strategies affect their propensity to introduce innovation. We develop an adjustment-cost framework that links human capital theory and institutionalist and evolutionary approaches, considering innovation as an activity that entails costs in labour adjustment arising either from the training activities of workers or the recruitment of skilled employees. Using a two-wave panel of Italian manufacturing firms observed in 2017-2018 and 2019-2020, we analyse firms' adoption of total, product, process, and circular innovation as a function of internal training practices and of external skills acquisition. Overall, the empirical analysis confirms the expected positive relationship between training and innovation, while also revealing important nuances in the workforce upskilling strategies required for different types of innovation. Moreover, while training activities and skills development are essential across all forms of innovation, our findings indicate that internal training is particularly effective in supporting the implementation of circular innovations. By contrast, external recruitment appears to be consistently necessary whenever
This paper studies firms' optimal response to a trade liberalization shock in terms of export and product innovation both theoretically and empirically. We find that trade liberalization, namely China's WTO accession, reduces trade cost and promotes export, which in turn incentivizes firms to innovate as the marginal benefit of innovation for exporting firms is higher than that for non-exporting firms. In addition, as a firm starts to innovate, it predicts to have a higher probability of moving to a better productivity state and can save the entry cost of innovation in the future, resulting in additional dynamic benefits. Such an innovation-promotion effect is an unintended consequence of trade liberalization.
At a time when the phenomenon of 'AI washing' is quietly spreading, an increasing number of enterprises are using the label of artificial intelligence merely as a cosmetic embellishment in their annual reports, rather than as a genuine engine driving transformation. A test regarding the essence of innovation and the authenticity of information disclosure has arrived. This paper employs large language models to conduct semantic analysis on the text of annual reports from Chinese A-share listed companies from 2006 to 2024, systematically examining the impact of corporate AI washing behaviour on their green innovation. The research reveals that corporate AI washing exerts a significant crowding-out effect on green innovation, with this negative relationship transmitted through dual channels in both product and capital markets. Furthermore, this crowding-out effect exhibits heterogeneity across firms and industries, with private enterprises, small and medium-sized enterprises (SMEs), and firms in highly competitive sectors suffering more severe negative impacts from AI washing. Simulation results indicate that a combination of policy tools can effectively improve market equilibrium. Ba
Modern science is organized around specialization in training and teamwork. Scientists develop deep expertise within a field and combine complementary knowledge through collaboration to solve complex problems. Yet whether specialization is the most effective path to sustained innovation remains unclear. Here we introduce a quantitative framework that distinguishes generalists from specialists based on scaling patterns of disciplinary mobility while remaining independent of career age and productivity. Applying this framework to 49 million publications produced by 3 million scientists between 1900 and 2020, we examine how research style relates to innovation, learning, collaboration, and productivity. We find that scientists who move across fields are more likely to sustain innovative contributions throughout their careers, whereas those who remain within narrow fields exhibit the age-related decline in innovation. Generalists are less anchored to the literature of their training. They are more likely to pursue research independently, and, when they collaborate, they preferentially partner with other generalists. Teams with a greater share of generalists produce more innovative rese
In the era of sustainability, firms grapple with the decision of how much to invest in green innovation and how it influences their economic trajectory. This study employs the Crepon, Duguet, and Mairesse (CDM) framework to examine the conversion of R&D funds into patents and their impact on productivity, effectively addressing endogeneity by utilizing predicted dependent variables at each stage to exclude unobservable factors. Extending the classical CDM model, this study contrasts green and non-green innovations' economic effects. The results show non-green patents predominantly drive productivity gains, while green patents have a limited impact in non-heavy polluting firms. However, in high-pollution and manufacturing sectors, both innovation types equally enhance productivity. Using unconditional quantile regression, I found green innovation's productivity impact follows an inverse U-shape, unlike the U-shaped pattern of non-green innovation. Significantly, in the 50th to 80th productivity percentiles of manufacturing and high-pollution firms, green innovation not only contributes to environmental sustainability but also outperforms non-green innovation economically.
Is calendar time the true clock of innovation? By combining complexity science with innovation economics and using vaccine datasets containing over three million citations and eight regulatory authorisations, we discover that calendar time and network order describe innovation progress at varying accuracy. First, we present a method to establish a mathematical link between technological evolution and complex networks. The result is a path of events that narrates innovation bottlenecks. Next, we quantify the position and proximity of documents to these innovation paths and find that research, by and large, proceed from basic research, applied research, development, to commercialisation. By extension, we are able to causally quantify the participation of innovation funders. When it comes to vaccine innovation, diffusion-oriented entities are preoccupied with basic, later-stage research; biopharmaceuticals tend to participate in applied development activities and clinical trials at the later-stage; while mission-oriented entities tend to initiate early-stage research. Future innovation programs and funding allocations would benefit from better understanding innovation orders.
In an era of knowledge-based economy, commercialized research and globalized competition for talent, the creation of innovation ecosystems and innovation networks is at the forefront of efforts of cities. In this context, public authorities, private organizations, and academics respond to the question of the most promising indicators that can predict innovation with various innovation scoreboards. The current paper aims at increasing the understanding of the existing indicators and complementing the various innovation assessment toolkits, using large datasets from non-traditional sources. The success of both top down implemented innovation districts and community-level innovation ecosystems is complex and has not been well examined. Yet, limited data shed light on the association between indicators and innovation performance at the neighborhood level. For this purpose, the city of Boston has been selected as a case study to reveal the importance of its neighborhood's different characteristics in achieving high innovation performance. The study uses a large geographically distributed dataset across Boston's 35 zip code areas, which contains various business, entrepreneurial-specific
This study addresses the challenges composers and sound designers face in creating and refining tools to achieve their musical goals. Using evolutionary processes to promote diversity and foster serendipitous discoveries, we automate the search through uncharted sonic spaces for sound discovery, arguing that diversity-promoting algorithms can bridge the gap between the theoretical realisation and practical accessibility of sounds. We describe a system for generative sound synthesis combining Quality Diversity (QD) algorithms with a supervised discriminative model, inspired by the Innovation Engine algorithm, and explore different configurations and the interplay between the chosen synthesis approach and the discriminative model. We examine the interaction between Compositional Pattern Producing Networks (CPPNs) and Digital Signal Processing (DSP) graphs, introducing a novel approach that uses multiple specialised CPPNs for different frequency ranges; this yields simpler networks while maintaining performance comparable to single-CPPN setups. We also investigate evolutionary stepping stones by analysing goal switches between musical and non-musical contexts, revealing how lineages t
A long-standing discussion is to what extent patents can be used to monitor trends in innovation activity. This study quantifies the amount and quality of information about actual innovation contained in the patent system, based on 4,460 Swedish innovations (1970-2015) that have been matched to international patents. The results show that most innovations were not patented and that among those that were, 43.9% of all innovations, only a fraction can be identified with patent quality data. The best-performing models identify 17% of all information about innovations, equivalent to an information loss of at least 83%. Econometric tests also show that the fraction of innovations responding to strengthened patent laws during the period were on average 8% percent. The overlap between the patent and innovation systems is hence more modest than often assumed. This accentuates the need to, alongside patents, develop versatile approaches in order to induce and monitor various aspects of innovation.
This letter proposes an innovation-domain decision-directed phase tracking (ID-DDPT) architecture for coherent detection over Rayleigh fading channels with temporally correlated phase evolution and Wiener phase noise. By reformulating phase tracking into the innovation domain, replacing the unbounded cumulative phase with its stationary increments, the proposed method converts a non-stationary estimation problem into a stable low-complexity filtering problem. A closed-form expression for the steady-state residual phase error variance is derived under the locked-regime assumption, along with an analytical optimal smoothing factor. Modeling the residual phase distortion as an effective signal-to-noise ratio (SNR) attenuation yields a tractable bit error rate (BER) approximation for BPSK over Rayleigh fading. A first-order error-propagation analysis further characterizes the impact of decision errors and provides insight into the onset of cycle slips. Simulation results demonstrate that ID-DDPT outperforms DBPSK and a complexity-equivalent scalar Kalman tracker (SKT), achieving near-coherent performance with $\mathcal{O}(1)$ per-symbol complexity and minimal pilot overhead.
Artificial intelligence (AI) now permeates critical infrastructures and decision-making systems where failures produce social, economic, and democratic harm. This position paper challenges the entrenched belief that regulation and innovation are opposites. As evidenced by analogies from aviation, pharmaceuticals, and welfare systems and recent cases of synthetic misinformation, bias and unaccountable decision-making, the absence of well-designed regulation has already created immeasurable damage. Regulation, when thoughtful and adaptive, is not a brake on innovation -- it is its foundation. The present position paper examines the EU AI Act as a model of risk-based, responsibility-driven regulation that addresses the Collingridge Dilemma: acting early enough to prevent harm, yet flexibly enough to sustain innovation. Its adaptive mechanisms -- regulatory sandboxes, small and medium enterprises (SMEs) support, real-world testing, fundamental rights impact assessment (FRIA) -- demonstrate how regulation can accelerate responsibly, rather than delay, technological progress. The position paper summarises how governance tools transform perceived burdens into tangible advantages: legal ce
Online user innovation communities are becoming a promising source of user innovation knowledge and creative users. With the purpose of identifying valuable innovation knowledge and users, this study constructs an integrated super-network model, i.e., User Innovation Knowledge Super-Network (UIKSN), to integrate fragmented knowledge, knowledge fields, users and posts in an online community knowledge system. Based on the UIKSN, the core innovation knowledge, core innovation knowledge fields, core creative users, and the knowledge structure of individual users were identified specifically. The findings help capture the innovation trends of products, popular innovations and creative users, and makes contributions on mining, and integrating and analyzing innovation knowledge in community based innovation theory.
The future of innovation processes is anticipated to be more data-driven and empowered by the ubiquitous digitalization, increasing data accessibility and rapid advances in machine learning, artificial intelligence, and computing technologies. While the data-driven innovation (DDI) paradigm is emerging, it has yet been formally defined and theorized and often confused with several other data-related phenomena. This paper defines and crystalizes "data-driven innovation" as a formal innovation process paradigm, dissects its value creation, and distinguishes it from data-driven optimization (DDO), data-based innovation (DBI), and the traditional innovation processes that purely rely on human intelligence. With real-world examples and theoretical framing, I elucidate what DDI entails and how it addresses uncertainty and enhance creativity in the innovation process and present a process-based taxonomy of different data-driven innovation approaches. On this basis, I recommend the strategies and actions for innovators, companies, R&D organizations, and governments to enact data-driven innovation.
In an age of fast-paced technological change, patents have evolved into not only legal mechanisms of intellectual property, but also structured storage containers of knowledge full of metadata, categories, and formal innovation. This chapter proposes to reframe patents in the context of information science, by focusing on patents as knowledge artifacts, and by seeing patents as fundamentally tied to the global movement of scientific and technological knowledge. With a focus on three areas, the inventions of AIs, biotech patents, and international competition with patents, this work considers how new technologies are challenging traditional notions of inventorship, access, and moral accountability.The chapter provides a critical analysis of AI's implications for patent authorship and prior art searches, ownership issues arising from proprietary claims in biotechnology to ethical dilemmas, and the problem of using patents for strategic advantage in a global context of innovation competition. In this analysis, the chapter identified the importance of organizing information, creating metadata standards about originality, implementing retrieval systems to access previous works, and ethi
This chapter examines the impact of the geopolitical rivalry between the United States and China on the prospects for inclusive innovation in artificial intelligence (AI) development. We explore three critical aspects of the American and Chinese legal infrastructure that significantly impact AI innovation: data privacy, intellectual property (IP rights), and export restrictions. Through this comparative analysis, we argue that, while China's legal environment may offer certain advantage in terms of access to training data and IP protection, the United States maintains superior resources by enforcing strict export controls on semiconductor chips, AI models, as well as outbound investments in these areas. This nuanced examination helps illuminate how each country's legal framework could influence the ultimate trajectory of AI race and how the technological rivalry has led to exclusionary rulemaking on a global scale.
Enterprise Systems purport to bring innovation to organizations. Yet, no past studies, neither from innovation nor from ES disciplines have merged their knowledge to understand how ES could facilitate lifecycle-wide innovation. Therefore, this study forms conceptual bridge between the two disciplines. In this research, we seek to understand how ES could facilitate innovation across its lifecycle phases. We associate classifications of innovation such as radical vs. incremental, administrative vs. technical innovation with the three phases of ES lifecycle. We introduce Continuous Restrained Innovation (CRI) as a new type of innovation specific to ES, considering restraints of technology, business processes and organization. Our empirical data collection at the implementation phase, using data from both the client and implementation partner, shows preliminary evidence of CRI. In addition, we state that both parties consider the implementation of ES as a radical innovation yet, are less interest in seeking further innovations through the system.
Cities and metropolitan areas are major drivers of creativity and innovation in all possible sectors: scientific, technological, social, artistic, etc. The critical concentration and proximity of diverse mindsets and opportunities, supported by efficient infrastructures, enable new technologies and ideas to emerge, thrive, and trigger further innovation. Though this pattern seems well established, geography's role in the emergence and diffusion of new technologies still needs to be clarified. An additional important question concerns the identification of the innovation pathways of metropolitan areas. Here, we explore the factors that influence the spread of technology among metropolitan areas worldwide and how geography and political borders impact this process. Our evidence suggests that political geography has been highly important for the diffusion of innovation till around two decades ago, slowly declining afterwards in favour of a more global innovation ecosystem. Further, the visualisation of the evolution of countries and metropolitan areas in a 2d space of competitiveness and diversification reveals the existence of two main innovation pathways, discriminating between diff
We provide a model of investment in innovation that is dynamic, features multiple heterogeneous research projects of which only one potentially leads to success, and in each period, the researcher chooses the set of projects to invest in. We show that if a search for innovation starts, it optimally does not end until the innovation is found -- which will be never with a strictly positive probability.
Competition in the Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) industry is increasingly moving from being motivated by cost savings towards strategic benefits that service providers can offer to their clients. Innovation is one such benefit that is expected nowadays in outsourcing engagements. The rising importance of innovation has been noticed and acknowledged not only in the Information Systems (IS) literature, but also in other management streams such as innovation and strategy. However, to date, these individual strands of research remain largely isolated from each other. Our theoretical review addresses this gap by consolidating and analyzing research on strategic innovation in the ITO and BPO context. The article set includes 95 papers published between 1998 to 2020 in outlets from the IS and related management fields. We craft a four-phase framework that integrates prior insights about (1) the antecedents of the decision to pursue strategic innovation in outsourcing settings; (2) arrangement options that facilitate strategic innovation in outsourcing relationships; (3) the generation of strategic innovations; and (4) realized strategic in
With the largest population of the world and one of the highest enrolments in higher education, India needs efficient and effective means to educate its learners. India started focusing on open and digital education in 1980's and its efforts were escalated in 2009 through the NMEICT program of the Government of India. A study by the Government and FICCI in 2014 noted that India cannot meet its educational needs just by capacity building in brick and mortar institutions. It was decided that ongoing MOOCs projects under the umbrella of NMEICT will be further strengthened over its second (2017-21) and third (2021-26) phases. NMEICT now steers NPTEL or SWAYAM (India's MOOCs) and several digital learning projects including Virtual Labs, e-Yantra, Spoken Tutorial, FOSSEE, and National Digital Library on India - the largest digital education library in the world. Further, India embraced its new National Education Policy in 2020 to strongly foster online education. In this chapter, we take a deep look into the evolution of MOOCs in India, its innovations, its current status and impact, and the roadmap for the next decade to address its challenges and grow. AI-powered MOOCs is an emerging o