Risk in integrated leapfrogging mode of technological innovation

Abstract

Purpose -The purpose of this paper is to present an integrated leapfrogging mode of technological innovation for developing countries or latecomer enterprises in a certain industrial innovation field. Furthermore, this paper discusses the basic paradigm of the integrated leapfrogging innovation, analyzes the risk in the integrated leapfrogging mode, and describes the risk map of the integrated leapfrogging mode. Finally, taking the example of the integrated leapfrogging mode of technological innovation in developing China High-speed Railway, this paper carries out the simulation analysis by employing system dynamics model. Design/methodology/approach -In order to examine the impact of the integrated leapfrogging innovation risk on innovative achievements, main risk variables need to be extracted from the process of the integrated leapfrogging innovation, based on the system simulation, relationships among different variables and the impact on innovative achievements can be obtained. Findings -To prevent the risk of the integrated leapfrogging innovation across the innovation, the first thing we need to improve is the contractual relationship, which is to be fair and reasonable, according to the symmetry principles of risks and benefits, and to achieve risk-sharing and revenue sharing, in addition, all parties must be clear about their responsibilities and interests. The second is the reasonable position of the government's behavior, and it hints that the government cannot interfere too much, and its function is to provide service and support instead of ordering. The third is that enterprises should effectively prevent the risk of the integrated leapfrogging innovation through risk identification and risk early warning and risk pre-control approach. Originality/value -A new concept of integrated leapfrogging mode of technological innovation has been put forward, and the risk map of the integrated leapfrogging mode has been described. In addition, this paper proposes some suggestions to prevent the risks of the integrated leapfrogging innovation for enterprises as a reference.

Risk identification, evaluation and response of low-carbon technological innovation under the global value chain: A case of the Chinese manufacturing industry

“…As can be seen from the results, among the three most important aspects in manufacturing low-carbon technological innovation under (Souder and Bethay, 1993) Production scale of low-carbon products (including processes and services) in global manufacturing stage (U 23 ) (Hsieh, 2013) The technical performance requirements for raw materials of low-carbon products (including processes and services) in global manufacturing stage (U 24 ) (Chen et al, 2012) Quality and properties of low-carbon products (including processes and services) in global manufacturing stage (U 25 ) (Balachandra and Friar, 1997) Global outsourcing scale of low-carbon products (including processes and services) in global manufacturing stage (U 26 ) (Hsieh, 2013) International OEM scale of low-carbon products (including processes and services) in global manufacturing stage (U 27 ) Low-carbon technology transformation scale in global manufacturing stage (U 28 ) (Hsieh, 2013) The compatibility of existing international production system and low-carbon technology in global manufacturing stage (U 29 ) (Higgins et al, 2012) The the GVC, global low-carbon R&D risk is the highest, global low-carbon marketing risk is secondary and global low-carbon manufacturing risk is the lowest. With respect to the risk rating, global low-carbon R&D risk, global low-carbon marketing risk and the total innovation risk fall between moderate and high.…”

“…Therefore, based on the results of the risk evaluation, by following the decision making process of risk response modes, and combing other previous empirical studies (Hirsch-Kreinsen, 2011;Guo et al, 2012;Hsieh, 2013;Chen et al, 2012;Jeremy et al, 2014), this paper takes some of the risk factors as examples, and puts forward the corresponding risk response strategies, as shown in Table 6. …”

“…A lack of R&D personnel and capital investment will result in the termination of lowcarbon R&D tasks and influence detrimentally the success rate, thereby increasing the likelihood of failure (Balachandra and Friar, 1997;Chen et al, 2012). Technology risk derives from the fact that low-carbon technology is still in its infancy, which may result in as-yet unseen pitfalls and has already generated uncertainty as to its life-cycle, along with additional concerns over the possible emergence of alternative low-carbon technologies (Guo et al, 2012;Jeremy et al, 2014).…”

“…To meet the requirements for producing new low-carbon products, nearly all relevant factors, including manufacturing processes, equipments and raw materials, need to make corresponding changes. Therefore, the production scale (Hsieh, 2013), the degree of technical performance requirements on raw materials (Chen et al, 2012), quality and performance of low-carbon products (including processes and services), low-carbon technical reconstruction scale (Balachandra and Friar, 1997) and the compatibility of existing international production systems (Higgins et al, 2012) will all affect the low-carbon manufacturing processes. Global outsourcing is one of the available ways to build up production capacity which manufacturers themselves lack, whereas the change of global outsourcing scale will bring risks at the same time (Hsieh, 2013).…”

“…Wu et al (2010) R&D risk, technology commercialization risk and market application risk. Chen et al (2012) Technology risk, manufacturing risk, market risk, financial risk and management risk. Wu and Wu (2013) Technology risk, market risk, financial risk, cooperation risk and institution/monitoring risk.…”