Knowledge that Transforms

This paper seeks to bridge the gap between socio-material and complex adaptive systems approaches in conceptualizing the politics of transformation. Our contribution in particular is a further clarification of the relational nature of power, and the role of non-humans in transitional dynamics of complex adaptive systems. We explore and operationalize the role of non-humans and relationality in (1) agency and (2) power, and the implications thereof for processes of (3) powering, through which power relations shape resource distributions and associated macro-scale dynamics. We consider agency as an embedded and temporal capacity for reorientation. This also entails attributing agency to entangled networks of humans and non-humans. Such a capacitive conception of agency follows from our understanding that agents and structures consist of comparable ontological building blocks, both being (networks of) components in complex adaptive systems. Power we understand as a productive and relational phenomenon that emerges from interactions between components and that structures their agency. We argue that such a ‘force-field’ understanding of power enables the observation of different types of power relations. Finally, we consider six different mechanisms through which power relations can result in a (re)distribution of resources and with that, contribute to self-reproducing or transformative systemic dynamics. With this conceptualization, we hope to advance the debate on the different facets of the politics of transformation, and to help further urgently needed transitions towards a more sustainable future.

Financial constraints can severely limit the development of small and medium size enterprises (SMEs) and are very likely to affect innovative firms. In order to lower the barriers to firm growth, in 2014 the European Commission introduced the SME Instrument with the specific aim to support businesses with high-growth potential in need of external finance. By exploiting the availability of information not only on grant awards but also on applications, this is the first study that examines which types of firms apply to the scheme and which ones are selected for the two main rounds of funding. The evidence suggests that the scheme is successful at attracting SMEs with high-growth potential, and that – in line with signalling theory – patenting and prior venture capital funding are strong predictors of awards.

From an active labor market policy perspective, start-up subsidies for unemployed individuals are very effective in improving long-term labor market outcomes for participants. From a business perspective, however, the assessment of these public programs is less clear since they might attract individuals with low entrepreneurial abilities and produce businesses with low survival rates and little contribution to job creation, economic growth, and innovation. In this paper, we use a rich data set to compare participants of a German start-up subsidy program for unemployed individuals to a group of regular founders who started from non-unemployment and did not receive the subsidy. The data allows us to analyze their business performance up until 40 months after business formation. We find that formerly subsidized founders lag behind not only in survival and job creation, but especially also in innovation activities. The gaps in these business outcomes are relatively constant or even widening over time. Hence, we do not see any indication of catching up in the longer run. While the gap in survival can be entirely explained by initial differences in observable start-up characteristics, the gap in business development remains and seems to be the result of restricted access to capital as well as differential business strategies and dynamics. Considering these conflicting results for the assessment of the subsidy program from an ALMP and business perspective, policy makers need to carefully weigh the costs and benefits of such a strategy to find the right policy mix.

This paper studies the role of technology standards in firms’ product innovation in terms of both incremental innovation (within a technology life cycle) and radical innovation (beyond the present technology cycle). We first develop a theoretical model which predicts that technology standards can be used by firms as an “insurance” hedging against the risky process of developing new products. This insurance mechanism fosters incremental innovation and product growth especially for those further away from the technological frontier. Using data from a weighted panel of UK manufacturing firms over seven years, we find that the use of technology standards over past years significantly enables a firm’s incremental innovation while also reducing its incentive to deliver radical innovation. Additionally, we show that this relationship is contingent on a firm’s R&D intensity in line with predictions of our theoretical model.

Highlights • We reconstruct and examine the global inter-city mobility of millions of scientist.• Scientists in global cities attract more citations than their peers elsewhere.• Prolific scientists gravitate toward global cities and remain there.• Scientific mobility contributes to the superior performance of global cities.

Using firm-level data from 2001 to 2016, this paper evaluates the impact of India’s R&D tax credit scheme and its 2010-11 reform on the innovation activity of the country’s private firms. Registration with the Department of Scientific and Industrial Research (DSIR) is a requirement for the R&D tax credit eligibility. Not all firms have registered with the DSIR by 2016 and those that did, vary by year of registration. In a difference-in-difference setting, we evaluate the change in innovation activity after the reform in DSIR-registered firms relative to non-DSIR-registered firms. We also study the timing of DSIR registration and examine how the changes in firm innovation activity following registration were impacted by the 2010-11 reform. Among firms first registered with the DSIR after the 2010-11 reform, we find a sharp increase in firm R&D expenditures, R&D intensity, and the number of patent applications filed at the Indian Patent Office following registration. The reform has also spurred innovation in firms registered with the DSIR in or before 2001. The results are not driven by unobserved cross-firm heterogeneity or firm-specific time trends.

Clusters have the potential to strengthen firm innovation. However, our knowledge of how firms are affected by the external resources found in clusters, and how this relates to their level of internal resources, is limited. There are seemingly conflicting theoretical assumptions and empirical findings on both the individual and combined impact of these resources. Our paper seeks to reconcile these by adopting a configurational lens, allowing for multiple pathways to innovation. Applying fuzzy-set Qualitative Comparative Analysis (fsQCA) to a sample of firms in European aerospace clusters, we uncover that innovation outcomes can only be explained through combinations of internal assets, and external resources provided by geography, networks, and institutions. No single resource, in isolation, is sufficient. We distinguish between a total of seven pathways. These vary from weak firms benefitting from localized knowledge spillovers, to strong firms with extensive non-local networks. We find that the relationship between internal and external resources is causally complex, with even the potential for negative innovation impacts. Hence, we provide a first step towards harmonizing the literature's different approaches to understanding clusters’ impact on firms.

This paper investigates the determinants of economic growth from both a theoretical and an empirical perspective. The paper combines the supermultiplier model of growth with the Neo-Schumpeterian framework that emphasises the entrepreneurial role of the state. We aim to detect the macroeconomic effect generated by alternative fiscal policies: generic ones and more directed ‘mission-oriented’ ones. Using an SVAR model for the US economy for the 1947–2018 period, we show that mission-oriented policies produce a larger positive effect on GDP (fiscal multiplier) and on private investment in R&D (crowd-in effect) than the one generated by more generic public expenditures.

This paper analyses the impact of the Excellence Initiative (EI) in Germany, a policy intervention aimed to promote and select outstanding active research universities by competitively allocating additional public funds. Academic debate on efficiency and effectiveness of higher education policy does not addresses issues such as treatment and selection effects, suffers from generalizable measurement problems, and does not take a comparative approach. Our objective is to fill this gap by adopting Italy as a control country. In doing so, this paper examines (1) whether this policy approach is suitable to stimulate the system and the awarded institutions, (2) how the performance impact can be measured and (3) whether the results are driven by country specific effects or are generalizable. To this end, we applied a triple difference-in-differences analysis (DDD) on a dataset of 72 German and 51 Italian state universities during the first round of the EI, from 2004 to 2013. We found that the EI has had a positive effect on research quantity, but a reverse effect on research quality.