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NORFATIN FAZLYN BINTI MOHD DARUS  E16A0151

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NORFATIN FAZLYN BINTI MOHD DARUS  E16A0151

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CHAPTER 12 : INNOVATION OFFSHORING

Innovation offshoring refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation and transactions costs :

Globalisation is a key factor behind the growth of innovation offshoring. It has come about because of the lowering of transaction costs.

Transaction costs are the costs of:

•      searching

•      negotiating

•      enforcing

•      agreements and contracts in a world of imperfect information

There are two types of transaction costs which are:

-          coordination costs

-          opportunism costs.

Impacts of globalization and transaction costs :

Reductions in transaction costs have encouraged:
1. Outsourcing which organisation re-structuring where increasingly supply/value chain activities are carried out by third parties
2. Offshoring which the geographical re-location of the supply/value chain overseas

Factors encouraging innovation offshoring :

•      Improved technological linkages

•      i.e. electronification

•      Growth of markets for technology

•      Growth of high tech clusters in Asia

•      Growth of expertise and capability overseas

•      i.e. through technological catch-up and upgrading.

CHAPTER 13 : GREEN INNOVATION

There are three types of green innovation :

•      Component

•      Sub-system/modular

•      System

Terminology of green innovation :

•      Eco-innovation/Ecological innovation

•      Environmental innovation

•      Sustainable innovation

•      Green innovation

The Porter Hypothesis :

“environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.’

There are three drivers of green innovation :

1.      Technology push includes material efficiency, energy efficiency and improved product quality

2.      Market pull associated with groups of consumers such as:

•      ‘Green idealists’

•      i.e. moral, philosophical interests

•      ‘Trend setters’

•      i.e. ‘image’, association interests

3.      Regulatory push

-          Command and control instruments

a.       Mandatory requirements regarding environmental standards

-          Market-based instruments

b.      Financial incentives/penalties  e.g. taxes, emission permits, subsidies, take-back schemes, etc.

There are three types of barriers to green innovation :

•      Economic barriers

•      Technological barriers

•      Institutional barriers

Strategies for green innovation :

•      Niche strategy

•      Endorsement strategy

•      Partnership strategy

CHAPTER 14 : NATIONAL INNOVATION SYSTEM

Britain’s early record of innovaton :

“…. Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.”

System of innovation :

•      National innovation systems i.e. a country specific system such as the national innovation system of the UK or Japan

•      Regional innovation systems i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

•      Sector innovation system i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

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Chapter 12
To summarise, innovation offshoring is refers in which some innovation-related activities are carried out by third parties located overseas. It means the it involves globalisation & transaction costs where there are 2 types of transaction cost; coordination costs and opportunism cost.
Chapter 13
There are three types of green innovations that includes components, sub-system/modular and system. Green innovations can be classify as the ecological innovation, environmental innovation, sustainable innovation and green innovation. The drivers of green innovations are technology push, regulatory push and market pull. There are also barriers in applying green technology but there are some strategies that can help to cope the barriers.
Chapter 14
National innovation systems is a country specific system such as the national innovation system of the uk or Japan. The other systems of innovation are regional innovation system and sectors innovation system.

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Chapter 12: Innovation offshoring
Definition:
refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’
Globalisation
- lowering the transaction costs(searching, negotiating and enforcing etc.)
Types of transaction costs
- Coordination costs
- Opportunism costs
Reduction in transaction costs has encouraged:
- Outsourcing
- Offshoring
Offshoring:
- Began with the movement of production activities overseas

- Mainly in search of lower costs

e.g. textiles and electronics
Factors encouraging Innovation Offshoring
- Improved technological linkages

i.e. electronification

- Growth of markets for technology

- Growth of high tech clusters in Asia

- Growth of expertise and capability overseas

i.e. through technological catch-up and upgrading
Modularisation
- Facilitates ‘de-coupling’ in the production of different modules
Global Innovation Networks
- collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Chapter 13: Green Innovation
Types of Green Innovation
•Component

•Sub-system/modular

•System
Terminology of Green Innovation
•Eco-innovation/Ecological innovation

•Environmental innovation

•Sustainable innovation

•Green innovation
The Porter Hypothesis
- Environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production
Technology push
Technological advances associated with:

•Material efficiency

•Energy efficiency

•Improved product quality
Barriers to green innovation
The ‘double’ hurdle:

•Technological externalities

i.e. the problem appropriability

•Environmental externalities

i.e. unattributed external (social) costs that the polluter does not pay
Strategies for Green Innovation
•Niche strategy

•e.g. Volvo Bus

•Endorsement strategy

•e.g. Hollywood and the Toyota Prius

•Partnership strategy

•Coca-Cola and Heinz and the development of the PlantBottleÔ

Chapter 14: National Innovation Systems
Systems of innovation
•National innovation systems

i.e. a country specific system such as the national innovation system of the UK or Japan

•Regional innovation systems

i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

•Sector innovation system

i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

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CHAPTER 12 | INNOVATION OFFSHORING

Innovation offshoring is the way in which some innovation-related activities are carried out by third parties located overseas.

The main key factor for the growth of innovation offshoring is Globalization. It has come because of the lowering of transaction costs that consists of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. There are two types of transaction coasts, coordination cost and opportunism cost.

The reducing in transaction costs have encouraged Outsourcing and Offshoring aspect. Example of outsourcing is the organisation re-structuring that lead to increasing in supply/value chain activities are carried out by third parties. While example of offshoring is geographical re-location of the supply/value chain overseas. Among the industry sectors that have led this process are textiles and electronics.

CHAPTER 13 | GREEN INNOVATION

Terminology of Green Innovation are Eco-innovation/Ecological innovation, Environmental innovation, Sustainable innovation or Green innovation.
Green Innovation can be divided into three types, component, sub-system and system.
Drivers of Green Innovation are technology push, regulatory push and market pull.
First, technology push. The innovation are with technological advances that associated with material efficiency, energy efficiency and improved product quality.
Next, regulatory push. Command and control instruments that mandatory requirements regarding environmental standards and Market-based instruments encourage by financial incentives/penalties such as taxes, emission permits, subsidies and take-back schemes.
Third, market pull. Market pull associated with groups of consumers such as ‘Green idealists’ that usually related with moral and philosophical interests and ‘Trend setters’, ‘image’ and association interests.
Types of Green Innovation Barriers is Economic barriers, Technological barriers and Institutional barriers
There are three types of Green Innovation Strategies. First, Niche strategy, example is Volvo Bus. Next is Endorsement strategy, example is Hollywood and the Toyota Prius. Third is Partnership strategy, example is Coca-Cola and Heinz.

CHAPTER 14 | National Innovation System (NIS)

There are three types of innovation systems, National innovation system; example is a country with specific system such as the NIS system of the UK or Japan. Regional innovation system, which an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. Third is sector innovation system, an industry specific innovation system such as those of the pharmaceutical or aerospace industries.
Institutions that involved are governments, financial institutions, industry, educational institutions and science and technology department. Examples of NIS is Japan and USSR country.

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In Chapter 12 Innovation Offshoring, it refers to the way in which some Innovation-related activities are carried out by third parties located overseas. Globalisation is the key factor behind the growth of innovation offshoring. It appear because of the lowering of transactions cost. There are two type of transactions cost which are coordination cost and opportunism cost. The factors that encourage innovation offshoring are to improved technological linkages and the growth of expertise and capability overseas. In Chapter 13 Green Innovation, it states that there are three elements of green innovation which are component, sub-system or modular and system. The factor that drives green technology are technology push, regulatory push and market pull. The barriers to green technology are technological externalities for example the problem appropriability. In Chapter 14, National Innovation System, it states that there are three system of innovation, which are national innovation system, regional innovation system and sector innovation system. The examples of each system are national innovation system of Japan, innovation based on a specific location or place and industry specific innovation system like pharmaceutical and aerospace industries respectively.

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CHAPTER 12: INNOVATION OFFSHORING

Innovation offshoring refers to a way in which some innovation activities are conducted by the third parties from overseas. Globalisation factor behind the growth of innovation offshoring come about because of the lowering of transaction costs. Transaction costs include searching, negotiating, enforcing and also agreements and contracts in a world of imperfect. There are two types of costs, which is coordination costs and opportumism costs. Reduction in transaction costs have encouraged outsourcing and offshoring. Outsourcing is organisational re-structuring and offshoring is geographical re-locations. There are some factors that encouraging innovation offshoring such as improved technological linkages, growth of markets for technology, growth of high tech clusters in Asia and  expertise and capability overseas. Global innovation networks refers to  collaborations  and interaction between different firms and organisation producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

CHAPTER 13: GREEN INNNOVATION

Green innovation have 3 types which are Component, Sub-system or modular and system. Green innovation includes eco-innovation , environmental innovation, sustainable innovation and green innovation. There are three drivers of green innovation, which are technology push, market pull and regulatory push. the barriers to green innovation is technological externalities and environmental externalities. The types of barriers are economic, technological and institutional barriers. The strategies for green innovation are niche strategy, endorsement and partnership.

CHAPTER 14: NATIONAL INNOVATION SYSTEM

National innovation system refers to a country specific system such as the national innovation system of the UK/Japan.  Regional innovation system is an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. While sector innovation system is an industry specific innovation system such as those of the pharmaceutical or aerospace industries.

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Chapter 12: Innovation Offshoring
Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

Outsourcing involves splitting up and fragmenting business functions so that those in which the organisation does not possess particularly expertise can be parcelled up and contracted out to external providers. This typically occurs where businesses direct their strategic focus on competences and abandon functions once carried out in house in favour of external providers who can perform the functions more efficiently.

Impact of globalisation on transaction cost:
-lowering transaction costs
-outsourcing
-offshoring (textiles&electronics)

Factors of innovation offshoring:
-liberalisation
-technology
Enabling factors:
-changes in corporate innovation management
-increasing specialisation through modularisation
-increased availability and mobility of knowledge
-globalisation of markets for technology

Global innovation network:

[Collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering specific innovation activities.]
Different characteristics from conventional innovation networks included:
-structure
-linkages
-geography
-hi tech sectors
-governance
-collaborative nature

Chapter13: Green Innovation
Advanced science & tech of innovation in certain circumstances can lead to serious environmental problems. The innovation in the form of new products and process would argued to improve firm competitiveness leading to a positive relationship between environmental and economic performance.

Types of green Innovation:
-component (modification)
-sub system (modular, redesign)
-system change (alternative)

Factors of green innovation:
Tecnology Push
-product quality
-material efficiency
-energy efficiency
-product palette
Market Push
-market share
-competition
-customer demand
-new markets image
Regulatory Push
-command and control instruments
-market based instruments

Barriers to green innovation:
-economics(environmental externalities which failure to recover, cost &time scale)
-technological (technological lock in)
-institutional (norms, routines, structures, influence of human behaviour)

Strategic for green innovation:
-niche market
-endorsement
-partnership

Chapter 14: National Innovation Syatem
“Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to unique combinations of interacting social and economic and technical changes within the national economic space.”

-describe the configuration of institutions and the resulting flow of knowledge at the level of nation state, region and industries sector:
-3types of government mechanism:
-corporate
-political
-network

Categorisation of institution:
-industrial (firms and industry sectors)
-financial (banks and venture capitalists)
-science and technology (universities and public research laboratories)
-educational (schools, colleges, training providers)

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MAHIRAH BT MAHATHER    E16A0087SummaryCHAPTER 12: INNOVATION OFFSHORINGDefinition of innovation offshoring is the way in which ‘some innovation-related activities are carried out by third parties located overseas’ 	Globalisation and transaction processGlobalisation has come about because of the lowering of transaction costs Transaction costs are the costs of: 	•	Searching	•	negotiating 	•	enforcing 	•	agreements and contracts in a world of imperfect information       	2 types of transaction costs		Coordination costs		Opportunism costs             	Reductions in transaction costs have encouraged: 		Outsourcing i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties 		 Offshoring i.e. the geographical re-location of the supply/value chain overseas 	Offshoring		-  Began with the movement of production activities overseas -  Mainly in search of lower costs -  Factors encouraging Innovation Offshoring -  Improved technological linkages     i.e. electronification -  Growth of markets for technology -  Growth of high tech clusters in Asia.  -  Growth of expertise and capability overseas     i.e. through technological catch-up and upgrading 	CHAPTER 13: GREEN INNOVATION Types of Green Innovation:		Component		Sub-system/modular		System    	Terminology of Green Innovation	•	Eco-innovation/Ecological innovation	•	Environmental innovation	•	Sustainable innovation	•	Green innovation	Technological advances associated with:	I.	Material efficiency	II.	Energy efficiency	III.	Improved product quality	Market pull associated with groups of consumers such as: -    ‘Green idealists’ : i.e. moral, philosophical interests -    ‘Trend setters’    : i.e. ‘image’, association interests	Regulatory push :	a.	Command and control instruments = Mandatory requirements regarding environmental standards	b.	Market-based instruments = Financial incentives/penalties e.g. taxes, emission permits,           subsidies, take-back schemes, etc.	Barriers to green innovation•	Technological externalities i.e. the problem appropriability	•	Environmental externalities i.e. unattributed external (social) costs that the polluter does not pay	Types of barriers	-  Economic barriers -  Technological barriers -  Institutional barriers 			CHAPTER 14 : NATIONAL INNOVATION SYSTEM		Systems of innovation	•	National innovation systems i.e. a country specific system such as the national innovation system of the UK or Japan	•	Regional innovation systems i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire	•	Sector innovation system i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries 	Institution	•	Firms	•	Government	•	Financial institution; bank and venture capitalists	•	Science and technology institution; research lab and universities	•	Industry; competitors and suppliers	•	Educational institution; school, colleges and training providers

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MAHIRAH BT MAHATHER    E16A0087SummaryCHAPTER 12: INNOVATION OFFSHORINGDefinition of innovation offshoring is the way in which ‘some innovation-related activities are carried out by third parties located overseas’ 	Globalisation and transaction processGlobalisation has come about because of the lowering of transaction costs Transaction costs are the costs of: 	•	Searching	•	negotiating 	•	enforcing 	•	agreements and contracts in a world of imperfect information       	2 types of transaction costs		Coordination costs		Opportunism costs             	Reductions in transaction costs have encouraged: 		Outsourcing i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties 		 Offshoring i.e. the geographical re-location of the supply/value chain overseas 	Offshoring		-  Began with the movement of production activities overseas -  Mainly in search of lower costs -  Factors encouraging Innovation Offshoring -  Improved technological linkages     i.e. electronification -  Growth of markets for technology -  Growth of high tech clusters in Asia.  -  Growth of expertise and capability overseas     i.e. through technological catch-up and upgrading 	CHAPTER 13: GREEN INNOVATION Types of Green Innovation:		Component		Sub-system/modular		System    	Terminology of Green Innovation	•	Eco-innovation/Ecological innovation	•	Environmental innovation	•	Sustainable innovation	•	Green innovation	Technological advances associated with:	I.	Material efficiency	II.	Energy efficiency	III.	Improved product quality	Market pull associated with groups of consumers such as: -    ‘Green idealists’ : i.e. moral, philosophical interests -    ‘Trend setters’    : i.e. ‘image’, association interests	Regulatory push :	a.	Command and control instruments = Mandatory requirements regarding environmental standards	b.	Market-based instruments = Financial incentives/penalties e.g. taxes, emission permits,           subsidies, take-back schemes, etc.	Barriers to green innovation•	Technological externalities i.e. the problem appropriability	•	Environmental externalities i.e. unattributed external (social) costs that the polluter does not pay	Types of barriers	-  Economic barriers -  Technological barriers -  Institutional barriers 			CHAPTER 14 : NATIONAL INNOVATION SYSTEM		Systems of innovation	•	National innovation systems i.e. a country specific system such as the national innovation system of the UK or Japan	•	Regional innovation systems i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire	•	Sector innovation system i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries 	Institution	•	Firms	•	Government	•	Financial institution; bank and venture capitalists	•	Science and technology institution; research lab and universities	•	Industry; competitors and suppliers	•	Educational institution; school, colleges and training providers

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E16a0091
CHAPTER 12: INNOVATION OFFSHORING

From this chapter, innovation offshoringrefer to the way in which some innovation-related activities are carried out by third parties located overseas. Innovation offshoring involves the globalisation and transaction costs which is related to each other. Globalisation is a key factor behind the growth this innovation and globalisation come about because lowering of transaction costs. Transaction costs refer to the costs of searching, negotiating, enforcing and agreements and contracts. There are two main impact of the reduction in transaction impact which is outsourcing and offshoring. Example of outsourcing is organisation re-structure where increasingly supply/value chain activities by third parties and Offshoring refer to geographical re-location of the supply/value chain overseas. Innovation offshoring is encourage due to several factor which is to growth of markets for technology, high tech clusters in Asia and to improve technological linkages. Besides, changes in corporate innovation management can be enablers in facilitating offshoring. Then, Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities.

CHAPTER 13 (GREEN INNOVATION)

In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies.

CHAPTER 14 (NATIONAL INNOVATION SYSTEMS)

In this chapter,  from the Britain’s early record of innovation said that national innovation system is not just   a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. This system of innovation includes of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. For example, a country specific system such as the innovation system of the UK or Japan. Then, the regional innovation system is based on specific location or place such as Silicon Valley in California. Lastly, sector innovation system which is based on knowledge and technologies, actors and networks and institutions.  For example industry specific innovation system such as those of pharmaceutical or aerospace industries. This innovation system also involved many firms such as government, financial institution, industry etc.

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Chapter 12
Innovation offshoring can be defined as a way in which some innovation-related activities are carried out by third parties located overseas. It grow through the factor of globalisationdue to lower transaction costs which include searching, negotiating, enforcing, agreements and contracts. There are two types of transaction costs which are coordination and opportunism costs. Through globalisation and transaction costs, it have encouraged and outsourcing by re-structuring of organization and offshoring by geographical relocation of the supply. Innovation offshoring is driven by the improvement of technology linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is the collaborations and interactions between different firms and organizations producing an exploiting new knowledge in a global scale for purposes of fostering innovation activities. It features structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

Chapter 13
Types of green innovation is component , subsystem/modular and system.

The porter hypothesis state that strict environmental regulations can induce efficiency and encourage innovations that help improve commercial competitiveness.

The majority of recycling undertaken in the United Kingdom is done by statutory authorities, although commercial and industrial waste is chiefly processed by private companies. Local Authorities are responsible for the collection of municipal waste and operate contracts which are usually kerbside collection schemes.

Drivers for dream innovation

- Regulatory push is about control and command instruments and market based instrument

- Market pull associated with group of consumers such as green idealists and trend setters

- Technology push associated with material efficiency,energy efficiency and improved product quality

Barriers to green innovation

- Technological externalities and environment externalities

Types of Barriers is economic barriers , technological barriers , and institutional barriers.

Strategy for green innovation is Niche , endorsement and partnership

Chapter 14
Britain’s early record of innovation said that“…. Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.”

National Innovation Systems is country specific instead of regional and sectorial. The 7 institution (Government, science & technology institutions, educational institution, industry, financial institutions and firms) are related to each other and are depending on each other for the innovation growth in national innovation system.

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Umi Safiqah Bt Ismail E16a0295

Chapter 12.

Innovation offshoring :

Refers to some innovation-related activities are carried out by third parties located overseas.

It is comprise of :

Globalisation and transaction cost :

both are key factor for the growth of innovation offshoring

2 types of transactions cost which is coordinate and oppurtunism

Impact:

Outsourcing : organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

Offshoring : the geographical re-location of the supply/value chain overseas

Factors encouraging:

Improve technological linkages

Growth of market for technolog

Growth of high tech clusters in asia

Growth of expertise and capabilities overseas

Chapter 13
'hardware or software innovationthat is related to green products or processes, including the innovation in technologies that are involved in energy-saving, pollution-prevention, waste recycling, green product designs, or corporate environmental management' (Chen et al., 2006)

Which comprise of :

Types of green innovation

•Component

•Sub-system/modular

•System

Drivers of green innovation

Technology push

Regulatory push

Market pull

Barriers

economic

Technological

Institutional

Strategies

niche

Endorsement

Partnership

Chapter 14:

Definition : is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level.

Systems of innovation :

national innovation system

Regional innovation system

Sector innovation system

Institution:

firms

Government

Financial institutions

Industry

Education institutions

Science and technology

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Nur Alya Shalina binti Ross Kenedy E16A0169

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Nur Alya Shalina binti Ross Kenedy E16A0169

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Innovation offshoring chapter12

Innovation offshoring the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

Globalisation is a key factor behind the growth of innovation offshoring and the globalisation is because lowering of transaction cost.

Cost of transaction

- Searching

- Negotiating

- Enforcing

- Agreements and contracts in world of imperfect

2 types of transaction cost

- Coordination costs

- Opportunism costs

Reduction in transaction cost have encouraged outsourcing  and offshoring

Factor that encourage innovation offshoring is

- Improved technological linkage

- Growth of market technology

- Growth of high cluster in Asia

- Growth of expertise and capability overseas

The factor that encourage innovation offspring is to improved technological and growth markets for technology, growth of high tech cluster in Asia and growth of expertise

Global innovation network collaboration between different firms  for purpose of fostering innovation activities such as iPad .

The feature of globalisation innovation network is

- Structure

- Linkage

- Geography

Green innovation Chapter 13

Types of green innovation is component , subsystem/modular and system.

The porter hypothesis state that strict environmental regulations can induce efficiency and encourage innovations that help improve commercial competitiveness.

The majority of recycling undertaken in the United Kingdom is done by statutory authorities, although commercial and industrial waste is chiefly processed by private companies. Local Authorities are responsible for the collection of municipal waste and operate contracts which are usually kerbside collection schemes.

Drivers for dream innovation

- Regulatory push is about control and command instruments and market based instrument

- Market pull associated with group of consumers such as green idealists and trend setters

- Technology push associated with material efficiency,energy efficiency and improved product quality

Barriers to green innovation

- Technological externalities and environment externalities

Types of Barriers is economic barriers , technological barriers , and institutional barriers.

Strategy for green innovation is Niche , endorsement and partnership

National innovation system chapter 14

There are 4 type of system of innovation

-National innovation

-Regional innovation system

-sector innovation system

Institution of National innovation system

- Government

- Firms

- Science and technology institution

- Educational institution

- Financial institution

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CHAPTER 12
Innovation offshoring refers to the way in which 'some innovation related activities are carried out by third parties located overseas'. there are two globalisation and transaction costs. there are coordination costs and opportunism costs. impact of reduction of the globalisation and transaction costs are outsourching and offshoring. offshoring are mainly in search of lower cost and began with the movement of production activities overseas. the factors encouring innovation offshoring are improved technological linkages, growth of markets for technology and growth of expertise and capability overseas. modularisation are modular product architecture and allows outside firms to be given responsibility for design of complete modules. features of global innovation networks are structures, geography and governance.

CHAPTER 13
types of green innovation are component, sub-system/modular and system. terminology of green innovation are eco-innovation, environmental innovation and sustainable green. drivers of green innovation are technology push, regulatory push and market pull. barriers to green innovation are technological externalities and environmental externalities. type of barriers are economic barriers, technological barriers and institutional barriers. the strategies for green innovation are niche strategy, endorsement strategy and partnership strategy.

CHAPTER 14
system of innovation are national innovation systems, regional innovation systems and sector innovation systems. there is institutions and there are 5 firms in it. there are government, science and technology institutions, educational institutions, industry institutions and financial.

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Chapter 12

 Innovation offshoring isrefers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

 Globalisation is a key factor behind the growth of innovation offshoring. Globalisation has come about because of the lowering of transaction costs. Transaction costs are the costs of: searching, negotiating, enforcing, agreements and contracts in a world of imperfect information

 Factors encouraging Innovation Offshoring

• Improved technological linkages
• Growth of markets for technology
• Growth of high tech clusters in Asia
• Growth of expertise and capability overseas

 Global Innovation Networks is “collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities”.

Chapter 13

Types of Green Innovation
•Component
•Sub-system/modular
•System

Drivers of Green Innovation

 Technology push
Technological advances associated with:
•Material efficiency
•Energy efficiency
•Improved product quality

 Market pull
Market pull associated with groups of consumers such as:
•‘Green idealists’
•i.e. moral, philosophical interests
•‘Trend setters’
•i.e. ‘image’, association interests

 Regulatory push
•Command and control instruments
•Mandatory requirements regarding environmental standards
•Market-based instruments
•Financial incentives/penalties  e.g. taxes, emission permits, subsidies, take-back schemes, etc.

Types of barrier
•Economic barriers
•Technological barriers
•Institutional barriers

Strategies for Green Innovation
•Niche strategy
•e.g. Volvo Bus
•Endorsement strategy
•e.g. Hollywood and the Toyota Prius
•Partnership strategy
•Coca-Cola and Heinz and the development of the PlantBottle

Chapter 14

Systems of innovation
•National innovation systems
•i.e. a country specific system such as the national innovation system of the UK or Japan
•Regional innovation systems
•i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire
•Sector innovation system
•i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

# data[].attributes.body
CHAPTER 12 :  INNOVATION OFFSHORE

Definition: it refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’.

2)GLOBALISATION & TRANSACTION COSTS

Globalisation=key factor behind the growth of innovation offshoring

Transaction costs are the costs of
-searching
-enforcing
-agreements&contracts in a world of imperfect information
-negotiating

Types of transaction costs
- Coordination costs
- Opportunism costs
Reduction in transaction costs has encouraged:
- Outsourcing
- Offshoring
Offshoring:
- Began with the movement of production activities overseas
- Mainly in search of lower costs
e.g. textiles and electronics

Factors encouraging Innovation Offshoring
1.Improved technological linkages
2.Growth of markets for technology
3.Growth of high tech clusters in Asia
4.Growth of expertise and capability overseas
Modularisation
It’s when the results in interchangeable modules.Facilitates ‘de-coupling’ in the production of different modules,Next,it allows outside firms to be given responsibility for design/development of complete modules
Features of Global Innovation Networks
1.Structure
2.Linkages
3.Geography
4.Hi-tech sectors
5.Governance
6.Collaborative nature

----------------------------------------------

CHAPTER 13 : GREEN INNOVATION

Nature of green innovation
Green innovation is the creation or implementation of new, or significantly improved, products (goods and services), processes, marketing methods, organisational structures and institutional arrangements which – with or without intent – lead to environmental improvements compared to relevant alternatives’ (OECD, 2009)

here are three green technology drivers. First is push technology (technological advances related to material efficiency, energy efficiency and product quality improvement), market attraction (market-related sources of consumer groups such as green ideals and trend determinants) and regulation. There are order and control instruments and market-based instruments. Some of the obstacles to green innovation are external technology and external environment.

Barriers to Green Innovation:
- Technological externalities
the problem appropriability
- Environmental externalitie
- unattributed external (social) costs that the polluter does not pay

Types of barriers:
- Economic barriers
- Technological barriers
- Institutional barriers

Strategies for Green Innovation:
- Niche strategy
EX : Volvo bus
- Endorsement strategy
EX : Hollywood and the Toyota Prius
- Partnership strategy
EX : Coca-Cola and Heinz and the development of the Plant Bottle

----------------------------------------------
CHAPTER 14 NATIONAL INNOVATION SYSTEMS

Britain’s early record of innovation said that“…. Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.”

National Innovation Systems is country specific instead of regional and sectorial. The 7 institution (Government, science & technology institutions, educational institution, industry, financial institutions and firms) are related to each other and are depending on each other for the innovation growth in national innovation system.

# data[].attributes.body
Liew Kar Fai E16A0076
Liew Kar Fai E16A0076
Chapter 12 - Innovation Offshoring
Innovation offshoring refers to any innovation-related activities that are carried out by third-party companies located at overseas. Such strategy emerges with globalisation, and followed by lower transaction cost. Offshore innovation is used to obtain higher tech from other countries, improving technological linkages, and obtain expertise and capabilities in technology.

Chapter 13 - Green Innovations
Green innovation are any innovation-related activities that includes the consideration of environmental regulations or developments. The four terminologies that included in green innovation is eco-innovation, environmental innovation, sustainable innovation, and “green-innovation”. There are three types of green innovation which are component addition (negative impact minimisation, small change in system), sub-system change (eco-efficient), and system change ( max positive impact, radical system change, sustainable).

Chapter 14 - National Innovation Systems
National Innovation Systems is country specific instead of regional and sectorial. In national innovation system, the institutions included in the system is government, science & technology institutions, educational institutions, competitors & suppliers, and financial institutions. All of the institutions stated are related to the growth of innovations in a firm
Noor Syafiza Binti Mohd Khalim
Noor Syafiza Binti Mohd Khalim
Summary Chapter 12-14

 Chapter 12
This chapter referring to a site way in which some innovation-related activities are carried out by the third parties that located overseas. It involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties. Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology.In addition to this, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.
 
Chapter 13
Green technology is divided into three types which are components, sub-systems and systems. The term green innovation is ecological innovation, environmental innovation, sustainable innovation and green innovation. There are three green technology drivers. First is push technology (technological advances related to material efficiency, energy efficiency and product quality improvement), market attraction (market-related sources of consumer groups such as green ideals and trend determinants) and regulation. There are order and control instruments and market-based instruments. Some of the obstacles to green innovation are external technology and external environment. There are three types of barriers that constitute economic barriers, technology barriers and institutional barriers. Some of the strategies for green innovation are the niche strategy (Volvo Bus), support strategy (Hollywood and Toyota Prius) and finally the sharing strategy (Coca-Cola).
 
Chapter 14
National innovation system based on Britain’s record is not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. The systems of innovation are national innovation systems, regional innovation systems and sector innovation system. The firms are government, science and technology institutional, educational institutional, industry and financial institutions. 
 
TEE MEI CHEE (E16A0292)
TEE MEI CHEE (E16A0292)
Summary CH 12 - CH 14
Chapter 12: Innovation offshoring
Definition:
refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’
Globalisation
- lowering the transaction costs(searching, negotiating and enforcing etc.)
Types of transaction costs
- Coordination costs
- Opportunism costs
Reduction in transaction costs has encouraged:
- Outsourcing
- Offshoring
Offshoring:
- Began with the movement of production activities overseas
- Mainly in search of lower costs
e.g. textiles and electronics
Factors encouraging Innovation Offshoring
- Improved technological linkages
i.e. electronification
- Growth of markets for technology
- Growth of high tech clusters in Asia 
- Growth of expertise and capability overseas
i.e. through technological catch-up and upgrading
Modularisation
- Facilitates ‘de-coupling’ in the production of different modules
Global Innovation Networks
- collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Chapter 13: Green Innovation
Types of Green Innovation
•Component
•Sub-system/modular
•System
Terminology of Green Innovation
•Eco-innovation/Ecological innovation
•Environmental innovation
•Sustainable innovation
•Green innovation
The Porter Hypothesis
- Environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production
Technology push
Technological advances associated with:
•Material efficiency
•Energy efficiency
•Improved product quality
Barriers to green innovation
The ‘double’ hurdle:
•Technological externalities
i.e. the problem appropriability
•Environmental externalities
i.e. unattributed external (social) costs that the polluter does not pay
Strategies for Green Innovation 
•Niche strategy
•e.g. Volvo Bus
•Endorsement strategy
•e.g. Hollywood and the Toyota Prius
•Partnership strategy
•Coca-Cola and Heinz and the development of the PlantBottleÔ

Chapter 14: National Innovation Systems
Systems of innovation
•National innovation systems
i.e. a country specific system such as the national innovation system of the UK or Japan
•Regional innovation systems
i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire
•Sector innovation system
i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries
NOR HIDAYU BINTI MAZRI E16A0144 CHAPTER 12 (INNOVATION OFFSHORING) Offshoring is broadly defined as a firm’s allocation of business activities to another country, either by obtaining goods and services from an unaffiliated foreign company or by investing in a foreign affiliate or joint venture. Traditionally the offshoring phenomenon has involved manufacturing activities and more recently administrative and technical services as well advanced services and R&D-related functions. Different streams of literature have analyzed offshoring looking at both the determinants of firms’ engagement in international production, and the effects of such activities in the home and host countries. It is relatively safe to say that empirical evidence on the determinants of offshoring is richer than studies on the effects. CHAPTER 13 (GREEN INNOVATION) Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Increasing concern about the future sustainability of economic growth patterns underpin the demand for a greener model of growth. Existing production technology and consumer behaviour can only be expected to produce positive outcomes up to a point; a frontier, beyond which depleting natural capital has negative consequences for overall growth. By pushing the frontier outward, innovation can help to decouple growth from natural capital depletion. Innovation and the related process of creative destruction will also lead to new ideas, new entrepreneurs and new business models, thus contributing to the establishment of new markets and eventually to the creation of new jobs. Green innovation is therefore the key in enabling environmentally sustainable growth. CHAPTER 14 (NATIONAL INNOVATION) The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.
NOR HIDAYU BINTI MAZRI E16A0144                                                        CHAPTER 12          (INNOVATION OFFSHORING)                                        Offshoring is broadly defined as a firm’s allocation of business activities to another country, either by obtaining goods and services from an unaffiliated foreign company or by investing in a foreign affiliate or joint venture. Traditionally the offshoring phenomenon has involved manufacturing activities and more recently administrative and technical services as well advanced services and R&D-related functions. Different streams of literature have analyzed offshoring looking at both the determinants of firms’ engagement in international production, and the effects of such activities in the home and host countries. It is relatively safe to say that empirical evidence on the determinants of offshoring is richer than studies on the effects.                                      CHAPTER 13 (GREEN INNOVATION)                    Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Increasing concern about the future sustainability of economic growth patterns underpin the demand for a greener model of growth. Existing production technology and consumer behaviour can only be expected to produce positive outcomes up to a point; a frontier, beyond which depleting natural capital has negative consequences for overall growth. By pushing the frontier outward, innovation can help to decouple growth from natural capital depletion. Innovation and the related process of creative destruction will also lead to new ideas, new entrepreneurs and new business models, thus contributing to the establishment of new markets and eventually to the creation of new jobs. Green innovation is therefore the key in enabling environmentally sustainable growth.                                       CHAPTER 14 (NATIONAL INNOVATION)                        The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.
NURUL AINA HALIMAH BINTI ABDUL RAHIME16A0214
NURUL AINA HALIMAH BINTI ABDUL RAHIME16A0214


CHAPTER 12 INNOVATION OFFSHORING 

Innovation offshoring refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’. Transaction costs are the cost of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. The reductions in transaction costs have encouraged outsourcing.  Outsourcing which the organisation re-structuring where increasingly supply/value chain activities are carried out by third parties. Offshoring is the geographical re-location of the supply/value chain overseas. There are few factors encouraging innovation offshoring which is improved technological linkages, growth of markets for technology. Growth of high tech clusters in Asia and growth of expertise and capability overseas. Enablers facilitating innovation offshoring by changes in corporate innovation management which shorter lead times, increased development of multi-technology products, increased specialisation and mobility of knowledge and glovalisation of markets for technology. the last one is, modularisation. Modular product architecture, use of “de-composable building blocks” Ernst (2005), results in interchangeable modules, facilitates ‘de-coupling’ in the production of different modules and allows outside firms to be given responsibility for design/development of complete modules. 

 

 
CHAPTER 13 GREEN INNOVATIONS 
 
There are 3 types of green innovation which are component, sub-system/modular and system. The terminology of green innovation is eco-innovation/ecological innovation, environment innovation, sustainable innovation and green innovation. The porter hypothesis said that “environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production”. The technology push is the technology advances that associated with material efficiency, energy efficiency and improved product quality.  Market pull associated with groups of consumer such as green idealists for example moral, philosophical interests. Next, in green innovation there is trend setters for example image, association interests. Command and control instruments such as mandatory requirements regarding environment standards are the example of regulatory push. Financial incentives/penalties as taxes, emission permits, subsidies, take-back schemes is the example for market-base instruments. There are barriers to green innovation which is the double hurdle as technology externalities and the problem appropriability. Next the environment externalities as unattributed external (social) costs that the pollute does not pay. The strategies for green innovation is niches strategy as Volvo Bus, endorsement strategy such as Hollywood and the Toyota Prius an partnership strategy such as Coca-Cola and Heinz and the development of the Plant Bottle.

 

CHAPTER 14 NATIONAL INNOVATION SYSTEMS 

Britain’s early record of innovation said that“…. Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.” There are three types of systems of innovations which are national innovation systems as country specific system such as the national innovation system of the UK or Japan, regional innovation systems such an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire and the sector innovation system such as an industry specific innovation system such as those of the pharmaceutical or aerospace industries. 


•   
 

NUR AIN NAJWA BT MOHD ADIB. E16A0162
NUR AIN NAJWA BT MOHD ADIB. E16A0162
Chapter 12: innovation offshoring
Innovation offshoring means way in which some innovation-related activities are carried out by third parties located overseas. Innovation offshoring involves the globalisation and transaction costs which is related to each other. Globalisation is a key factor behind the growth this innovation and globalisation come about because lowering of transaction costs. Transaction costs refer to the costs of searching, negotiating, enforcing and agreements and contracts. There are two main impact of the reduction in transaction impact which is outsourcing and offshoring. Example of outsourcing is organisation re-structure where increasingly supply/value chain activities by third parties and Offshoring refer to geographical re-location of the supply/value chain overseas. Innovation offshoring is encourage due to several factor which is to growth of markets for technology, high tech clusters in Asia and to improve technological linkages. Besides, changes in corporate innovation management can be enablers in facilitating offshoring. Then, Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities.
 
 Chapter 13 (green innovation)
In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies. 
 
 Chapter 14 (national innovation systems)
In this chapter,  from the Britain’s early record of innovation said that national innovation system is not just   a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. This system of innovation includes of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. For example, a country specific system such as the innovation system of the UK or Japan. Then, the regional innovation system is based on specific location or place such as Silicon Valley in California. Lastly, sector innovation system which is based on knowledge and technologies, actors and networks and institutions.  For example industry specific innovation system such as those of pharmaceutical or aerospace industries. This innovation system also involved many firms such as government, financial institution, industry etc.
Summary of chapter 12,13 and 14.
Summary of chapter 12,13 and 14.
Ainur Izzati Binti Bakar E16A0015


Chapter 12 : Innovation Offshoring 
It refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’ 
 
Globalisation & Transaction costs: 
Globalisation : 
-key factor behind the growth of innovation offshoring 
-come about because of the lowering of transaction costs 
 Transaction costs: 
-are the costs of: 
a)searching 
b)negotiating 
c)enforcing 
d)agreements and contracts in a world of imperfect information 
-2 types of transaction costs : 
a) Coordination costs 
b)Opportunism costs 
 
Impact of Globalisation and Transaction costs : 
-Reductions in transaction costs have encouraged: 
a)Outsourcing 
i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties 
b)Offshoring 
i.e. the geographical re-location of the supply/value chain overseas 
 
Offshoring: 
-Began with the movement of production activities overseas 
-Mainly in search of lower costs 
-Led to creation of Global Production Networks 
-R & D generally retained at home 
 
Factors encouraging Innovation Offshoring: 
-Improved technological linkages 
-Growth of markets for technology 
-Growth of high tech clusters in Asia 
-Growth of expertise and capability overseas 
 
 
Enablers facilitating Innovation Offshoring: 
-Changes in Corporate Innovation Management 
-Increased specialisation through modularisation 
-Increased availability and mobility of knowledge 
-Globalisation of markets for technology 
 
Modularisation: 
-Modular product architecture 
-Use of “de-composable building blocks” Ernst (2005) 
-Results in interchangeable modules 
-Facilitates ‘de-coupling’ in the production of different modules 
-Allows outside firms to be given responsibility for design/development of complete modules 
 
Global Innovation Networks : 
Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities 
Features of Global Innovation Networks : 
-Structure 
-Linkages 
-Geography 
-Hi-tech sectors 
-Governance 
-Collaborative nature 
 
Chapter 13 : Green Innovation 
Types : 
-Component 
-Sub-system/modular 
-System 
Terminology : 
-Eco-innovation/Ecological innovation 
-Environmental innovation 
-Sustainable innovation 
-Green innovation 
Drivers : 
a)Technology push: 
-Material efficiency 
-Energy efficiency 
-Improved product quality 
b)Market pull: 
-Green idealists 
-Trend setters 
c)Regulatory push: 
-Command and control instruments 
-Market-based instruments 
Barriers: 
-Technological externalities 
-Environmental externalities 
-Types of barrier: 
a)Economic barriers 
b)Technological barriers 
c)Institutional barriers 
Strategies : 
-Niche strategy 
-Endorsement strategy 
-Partnership strategy 
 
The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. 
 
Chapter 14: National Innovation Systems 
Systems of innovation : 
-National innovation systems 
-Regional innovation systems 
-Sector innovation system 
Institution : 
-Firms 
-Government 
-Financial institutions 
-Industry 
-Education institutions 
NUR FATHIN AFIFAH BT. MAH HASSAN (E16B0179)
NUR FATHIN AFIFAH BT. MAH HASSAN  (E16B0179)
CHAPTER 12
Innovation offshoring refer to the way in which ‘some innovation-related activities are carried out by third parties located overseas’. Globalization is a key factor behind the growth of innovation offshoring because of the lowering of transaction costs. This encourage outsourcing and offshoring. The factor of encourage offshoring is the development the technology and activity related to its. The feature of global innovation network are structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

CHAPTER 13
Green innovation known as eco-innovation/Ecological innovation, environmental innovation and sustainable innovation. Green innovation divided into component, sub-system/modular and system. Technology push, regulatory push and market pull are the drivers of green innovation. However, technological externalities like the problem appropriability and environmental externalities are the barrier to green innovation. Besides, there are also barrier in term of economic barriers, technological barriers and institutional barriers. Therefore, the strategies for green innovation that are niche strategy, endorsement strategy and partnership strategy. 

CHAPTER 14
The system of innovation are national innovation systems, regional innovation systems and sector innovation system. National innovation systems is a country specific system such as the national innovation system of the UK or Japan. While regional innovation systems is an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxford shire and sector innovation system is an industry specific innovation system such as those of the pharmaceutical or aerospace industries.

 
Nur ain aiman binti
 Nur ain aiman binti abd rahim
E16a0161
CHAPTER 12

Innovation offshoring can be defined as a way in which some innovation-related activities are carried out by third parties located overseas. It grow through the factor of globalisationdue to lower transaction costs which include searching, negotiating, enforcing, agreements and contracts. There are two types of transaction costs which are coordination and opportunism costs. Through globalisation and transaction costs, it have encouraged and outsourcing by re-structuring of organization and offshoring by geographical relocation of the supply. Innovation offshoring is driven by the improvement of technology linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is the collaborations and interactions between different firms and organizations producing an exploiting new knowledge in a global scale for purposes of fostering innovation activities. It features structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

CHAPTER 13

This chapter have indicates that green technology which means the innovation with concepts of environmental and sustainable innovation such as products with eco-friendly.  There are three types of green innovation which are component, modular and system. Besides, there are three of drivers of green innovation which are technology push that relate to the energy efficiency and improvement of product quality. Then, market pull that associate with groups of consumer such as green idealist and trend setters. Third, regulatory push which means the control of instruments regarding to environmental standards and also market-based instruments.

CHAPTER 14
There are three types of system of innovation which are national, regional and sector innovation systems. National innovation systems involved a specific system of a country such as United Kingdom and Japan while regional innovation systems is an innovation based on a specific location such as Silicon Valley in California or Motor Sport Valley in Oxfordshire.As for sector innovation system, it involved an industry th The national innovations system approach stresses that the flows of technology and information among people, enterprise, and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on at have specific innovation system such as industry of pharmaceutical or aerospace.

MUHAMMAD AMIR BIN MAT NURI (E16A0103)
MUHAMMAD AMIR BIN MAT NURI (E16A0103)
Chapter 12( Innovation Offshoring)

refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

•Globalisation has come about because of the lowering of transaction costs
•Transaction costs are the costs of: 
•searching
•negotiating 
•enforcing 
•agreements and contracts in a world of imperfect information

Factors encouraging Innovation Offshoring
- Improved technological linkages.
- Growth of markets for technology
- Growth of high tech clusters in Asia 
- Growth of expertise and capability overseas

Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Chapter 13 (Green Innovation)

Types of green innovation:
-Component
-Sub-system
-system

Types of barrier:
-Economic barriers
-Technological barriers
-Institutional barriers

Chapter 14 (National innovation systems)

Britain's early record of innovation :
- Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.

Systems of innovation:
-National innovation systems.
- Regional innovation systems.
- Sector innovation system.




RAMADHAN IBNU HASSIM (E16A0319
RAMADHAN IBNU HASSIM (E16A0319
Chapter 12 (Innovation Offshoring)
- Definition:
refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’
- Globalisation & Transaction costs
•Globalisation is a key factor behind the growth of innovation offshoring and it has come about because of the lowering of transaction costs
•Transaction costs are the costs of: 
•searching
•negotiating 
•enforcing 
•agreements and contracts in a world of imperfect information
- 2 types of transaction costs
•Coordination costs
•Opportunism costs
- Impact of Globalisation and Transaction costs 
1.Outsourcing
2.Offshoring
- Offshoring
•Began with the movement of production activities overseas
•Mainly in search of lower costs
•Led to creation of Global Production Networks
•R & D (i.e. innovation) generally retained at home
•Latterly begun to see R & D moving offshore
- Factors encouraging Innovation Offshoring
•Growth of markets for technology
•Growth of high tech clusters in Asia 
•Growth of expertise and capability overseas
- Enablers facilitating Innovation Offshoring
•Increased specialisation through modularisation
•Increased availability and mobility of knowledge
- Modularisation
•Results in interchangeable modules
•Facilitates ‘de-coupling’ in the production of different modules
•Modular product architecture
- Features of Global Innovation Networks
•Structure 
•Linkages
•Geography
•Hi-tech sectors
•Governance
•Collaborative nature

Chapter 13 (Green Innovation)
- Types of Green Innovation
•Component
•Sub-system/modular
•System
- Terminology of Green Innovation
•Eco-innovation/Ecological innovation
•Environmental innovation
•Sustainable innovation
•Green innovation
- Technology push
•Material efficiency
•Energy efficiency
•Improved product quality
- Market pull
•‘Green idealists’
•‘Trend setters’
- Regulatory push
•Command and control instruments
•Market-based instruments
- Barriers to green innovation
•Technological externalities
•Environmental externalities
- Types of barrier
•Economic barriers
•Technological barriers
•Institutional barriers
- Strategies for Green Innovation 
•Niche strategy
•Endorsement strategy
•Partnership strategy

Chapter 14 (National Innovation Systems)
Particular nation utilize the National Innovation framework as their particular framework. Provincial advancement allude to particular area that utilization the framework while the segment development is the business that utilization the framework, for example, pharmaceutical and aviation. The 7 foundation (Government, science and innovation establishments, instructive organization, industry, money related establishments and firms) are identified with each other and are relying upon each other for the advancement development in national advancement framework.


SAIDAH IZZATI BINTI MOHD SHARIFFUDDIN (E16A0246)
SAIDAH IZZATI BINTI MOHD SHARIFFUDDIN (E16A0246)
Chapter 12

Innovation offshoring is the way in which ‘some innovation-related activities are carried out by third parties located overseas. The key factor of the growth of innovation offshoring is the globalisation because of lowering of transaction costs including searching, negotiating, enforcing and agreements and contract in a world of imperfect information.

There are 2 types of transaction costs

-         Coordination costs
-         Opportunism costs

The impact of globalisation and transaction costs have encouraged in outsourcing and offshoring. An organisation that reconstruct where increasingly supply chain activities are carried out by the third parties and the geographical relocated the supply chain overseas.

Offshoring begin with the movement of production activities overseas which mainly in search of lower cost of product that lead to the creation of Global Production Network. 

A company are into the offshoring because they can improved their technological linkage, growth of market for technology, high tech clusters in Asia and expertise and capability overseas. 
 

Chapter 13

There are 3 types of greenhouse innovation which include component, sub-system/modular and system. Green innovation or eco-innovation, environmental, sustainable or green innovation is the other term used for green innovation which give many positive impact to environmental and society. Green innovation happen because of three factor which is technology, regulatory and market pull. 

To produce a product quality with efficient material and energy, entrepreneur are needed to go for green innovation because of technology push. The regulatory push in the existing environment and because of the standard that have been a base line of a product. Lastly, a market pull is a driver of green innovation where the customer demand that want an eco-friendly product and compete with their competitor. For technology push, it was associated with 3 technology advances which is material efficiency, energy efficiency and improved product quality. 

However, it still have its barrier in green innovation which is known as double hurdle, which is technological externalities and environmental externalities. To go for eco-friendly entrepreneurship, also have its economic, technology and institutional barrier. Probably, there is still lack of technology that suite the economic demand. 

 
Chapter 14 

            Specific country use the National Innovation system as their specific system. Regional innovation refer to specific location that use the system while the sector innovation is the industry that use the system such as pharmaceutical and aerospace. The 7 institution (Government, science & technology institutions, educational institution, industry, financial institutions and firms) are related to each other and are depending on each other for the innovation growth in national innovation system. 

HANIE 'AQILAH BINTI MOHD AZAMI (E16A0062)
HANIE 'AQILAH BINTI MOHD AZAMI (E16A0062)
Chapter 12: Innovation Offshoring
Definition:
-Refers to the way in which ‘some innovation-related activities carried out by third parties located overseas’

Globalisation & Transaction costs:
-Globalisation is key factor behind the growth of innovation offshoring that come about because of the lowering of transaction costs.
-Transaction costs are the costs of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information.

Type of transaction costs:
-Coordination costs & Opportunism costs

Impact of Globalisation and Transaction costs:
-Reduction in transaction costs have encouraged Outsourcing and Offshoring

Offshoring:
-Began with the movement production activities overseas
-Mainly in search of lower costs
-Led to creation of Global Production Networks
-R&D (innovation) generally retained at home
-Latterly begun to see R&D moving offshore

Factors encouraging Innovation Offshoring:
-Improved technological linkages
-Growth of markets for technology
-Growth of high tech clusters in Asia
-Growth of expertise and capability overseas

Enablers facilitating Innovation Offshoring:
-Changes in Corporate Innovation Management
-Increased specialisation through modularisation
-Increased availability mobility of knowledge
-Globalisation of markets for technology
-Global Innovation Networks:
-Collaboration and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities (EU,2010)

Features of Global Innovation Networks:
-Structure 
-Linkages
-Geography
-Hi-tech sectors
-Governance
-Collaborative nature

 
Chapter 13: Green Innovation
Types of Green Innovation:
-Component
-Sub-system/modular
-System

Terminology of Green Innovation:
-Eco-innovation/Ecological innovation
-Environmental innovation
-Sustainable innovation
-Green innovation

The Porter hypothesis:
-environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production

Drivers of Green Innovation:
-Technology push
-Regulatory push
-Market pull

Technology push associated with:
-Material efficiency
-Energy efficiency
-Improved product quality

Market pull associated with groups of consumers:
-Green idealists
-Trend setters

Regulatory push associated with:
-Command and control instruments
-Market-based instruments

Barriers to green innovation:
The ‘double’ hurdle;
-Technological externalities
-Environmental externalities

Types of barriers:
-Economic barriers
-Technological barriers
-Institutional barriers

Strategies for Green Innovation:
-Niche strategy 
-Endorsement strategy
-Partnership strategy
 

Chapter 14: National Innovation Systems
Systems of innovation:
-National innovation systems
-Regional innovation systems
-Sector innovation systems

Institutions:
Firms, Government, Science & Technology institutions, Educational institutions, Industry, and Financial institutions are all related
WONG HUI SAN E16A0305
WONG HUI SAN E16A0305
Chapter 12 Innovation Offshoring

-Innovation offshoring define as refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas

-Globalisation is a key factor behind the growth of innovation offshoring while transaction costs are coordination costs and opportunism costs. 

-Factors encouraging innovation offshoring are 

(i)     Improved technological linkages for instance electronification
(ii)   Growth of markets for technology
(iii) Growth of high tech clusters in Asia 
(iv) Growth of expertise and capability overseas for example through technological catch-up and upgrading

-Global innovation network are the collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. There are six features of global innovation networks

(i)                 Structure 
(ii)               Linkages
(iii)             Geography
(iv)             Hi-tech sectors
(v)               Governance
(vi)             Collaborative nature

Chapter 13: Green Innovation

-Three types of green innovation which are component, sub-system or modular and system while terminologies of green innovation are 

(i)     Eco-innovation/Ecological innovation

(ii)   Environmental innovation

(iii) Sustainable innovation

(iv) Green innovation

-Driver of green innovation

Technology push- product quality, material and energy efficiency, product palette

Regulatory push- existing environment, legislation, standards, future regulation

Market pull- market share, competition, customer demand, new market and image

-Types of green innovation barriers are economic, technological and institutional 

Chapter 14: National Innovation System 

Systems of innovation are 

(i)     National innovation systems

•      i.e. a country specific system such as the national innovation system of the UK or Japan

(ii)   Regional innovation systems

•      i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

(iii) Sector innovation system

•      i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

 

 

 

NURUL FARAH HANIM BINTI HAWARI (E16A0223)
NURUL FARAH HANIM BINTI HAWARI (E16A0223)
 
SUMMARY 

CHAPTER 12: INNOVATION OFFSHORING 

 

            Innovation offshoring refers to the way in which “some innovation-related activities are carried out by third parties located overseas”. Globalisation is a key factor behind the growth of innovation offshoring. Globalisation has come about because of the lowering in the transaction costs. The transaction costs are the costs of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. Transaction costs can be divided into two; coordination costs and opportunism costs. The reductions in transaction costs have encouraged outsourcing and offshoring. Offshoring began with the movement of production activities overseas. It led to the creation of Global Production Network. 

            Factors that encourage Innovation Offshoring can be improved technological linkages, growth of market for technology, growth of high tech clusters in Asia and the growth of expertise and capability overseas. The enablers that facilitates Innovation Offshoring changes in Corporate Innovation Management, increased specialisation through modularisation, increased availability and mobility of knowledge and globalisation of markets for technology. Modularisation is the result in interchangeable modules. Global Innovation Networks is the collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. The features of Global Innovation Networks are structure, linkages, geography, hi-tech sectors, governance and collaborative nature. 

 

CHAPTER 13: GREEN INNOVATION 

 

                        Types of Green Innovation can be component, sub-system or modular and system. The terminology of Green Technology is ecological innovation, environmental innovation, sustainable innovation and green innovation. The Porter hypothesis states that environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. The drivers of green innovation are technology push, regulatory push and market pull. The barriers to green innovation is the ‘double’ hurdle; technological externalities and environmental externalities. The types of barrier are economic barriers, technological barriers and institutional barriers. The strategies of Green Innovation are niche strategy, endorsement strategy and partnership strategy. 

 

CHAPTER 14: NATIONAL INNOVATION SYSTEMS 

 

            The systems of innovation are national innovation systems, regional innovation systems and sector innovation systems. The institutions related are government, science and technology institutions; research labs and universities, financial institutions; banks and venture capitalists, firms, industry; competitors and suppliers and educational institutions; schools, colleges and training providers. 

NURSYAKIRAH BINTI SAHARIZAN (E16A0213)
NURSYAKIRAH BINTI SAHARIZAN (E16A0213)

            From this chapter Innovation offshoring is refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’. Globalization is a key factor behind the growth of innovation offshoring. It has come about because of the lowering of transaction costs. Transaction costs are the costs of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. There are two types of transaction costs which are coordination costs and opportunism costs. Reductions in transaction costs have encouraged outsourcing offshoring such as the geographical re-location of the supply or value chain overseas. Offshoring began with the movement of production activities overseas. Mainly in search of lower costs such as textiles and electronics. It also led to creation of Global Production Networks. Factors that encourage are improved technological linkage, growth of markets for technology. Growth of high tech clusters in Asia and growth of expertise and capability overseas. Modularization is product architecture that use of “de-composable building blocks”. Global innovation networks is collaborations and interactions between different firms and organizations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. The features is structure, linkages, geography, hi-tech sectors, governance and collaborative nature. 

            From this chapter, there are three types of green innovation which is component, sub-system or modular and system. The terminologies of green innovation are firstly, eco-innovation or ecological innovation. Secondly, environmental innovation. Thirdly, sustainable innovation and lastly green innovation. “Environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production”. There are three drivers of green innovation, first is technology push. Next is market pull. Lastly, regulatory push. There are barriers to green innovation which is the double hurdle. First is technological externalities. Second is environmental externalities. The types of barrier for green innovation are economics barriers, technological barriers and institutional barriers. Strategies for green innovation are niche strategy. Next, endorsement strategy and lastly partnership strategy. 

            In chapter of national innovation system, C. Freeman, 1987 said Britain’s early record of innovation “Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.” There are three system of innovation which is national, regional and sector innovation system. There are relationships between government, science and technology institutions

AIN NAJWA BINTI ABD LATIF ( E16A0014)
AIN NAJWA BINTI ABD LATIF ( E16A0014)
Chapter 12 : Innovation Offshoring

Innovation off shoring refers to the way in which some innovation-related activities are carried out by third parties located overseas. Lowering of transaction costs which are searching, negotiating, enforcing, and agreements and contracts in a world of imperfect information has caused globalisation. There are two types of transaction costs which are coordination costs and opportunism costs. Reduction in transaction cost have encouraged outsourcing and offshoring. The example of outsourcing is organisation restructuring where supply chain activities are carried out by third parties. Meanwhile, the example of offshoring is the geographical relocation of the supply chain overseas. Factors that encourage offshoring are to improved technological linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is a collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. The features are structure, linkages, geography, hi-tech sectors, governance, collaborative nature.

Chapter 13: Green Innovation

	There are three types of green innovation which are component, sub-system or modular and system. The terminology of it are ecological innovation, environmental innovation, sustainable innovation and green innovation. Regulatory push, market pull and technology push are drives of green innovation. Technological externalities for example the problem appropriability and environmental externalities which is unattributed external costs that polluter does not pay are barriers to green innovation. The types of barrier are economic, technological and institutional barriers. The good strategies is needed for green innovation for example niche strategy, endorsement strategy and partnership strategy.

Chapter 14 : National Innovation Systems

	There ae three systems of innovations. Firstly,  national innovation systems which is country specific system. Secondly, regional innovation systems which is an innovation based on a specific location or place. Thirdly, sector innovation system which is an industry specific innovation system. The institutions that helps in innovation are government and science and technology institutions which provide research laboratories and universities. Next, educational institutions for example are schools, college and training providers. Industry that provide supply and compete with each other and lastly financial institutions for example banks and venture capitalists.

NORSHAFIKA BINTI ABDULLAH
NORSHAFIKA BINTI ABDULLAH
(e16a0154)
CHAPTER 12 : INNOVATION OFFSHORING

Innovation offshoring: refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’. 

Globalisation & Transaction costs 

•        Globalisation is a key factor behind the growth of innovation offshoring

•        Globalisation has come about because of the lowering of transaction costs

•        Transaction costs are the costs of: 

•        searching

•        negotiating 

•        enforcing 

•        agreements and contracts in a world of imperfect information

2 types of transaction costs: Coordination costs and Opportunism costs

Impact of Globalisation and Transaction costs

Reductions in transaction costs have encouraged:

Outsourcing
Offshoring
 

Factors encouraging Innovation Offshoring

•        Improved technological linkages

•        Growth of markets for technology

•        Growth of high tech clusters in Asia 

•        Growth of expertise and capability overseas

 

Enablers facilitating Innovation Offshoring

•        Changes in Corporate Innovation Management

•        Increased specialisation through modularisation

•        Increased availability and mobility of knowledge

•        Globalisation of markets for technology

 

Modularisation

•        Modular product architecture

•        Use of “de-composable building blocks” Ernst (2005)

•        Results in interchangeable modules

•        Facilitates ‘de-coupling’ in the production of different modules

•        Allows outside firms to be given responsibility for design/development of complete modules

Features of Global Innovation Networks

•        Structure 

•        Linkages

•        Geography

•        Hi-tech sectors

•        Governance

•        Collaborative nature

CHAPTER 13: GREEN INNOVATION

Types of Green Innovation; Component,Sub-system/modular,System

Terminology of Green Innovation: Eco-innovation/Ecological innovation,Environmental innovation,Sustainable innovation, Green innovation

Technology push: Technological advances associated with: Material efficiency, Energy efficiency, Improved product quality

Market pull

Market pull associated with groups of consumers such as:

•        ‘Green idealists’

•         ‘Trend setters’

Regulatory push

•        Command and control instruments

•        Market-based instruments

Barriers to green innovation

The ‘double’ hurdle:

•        Technological externalities

•        Environmental externalities

Types of barrier: Economic barriers,Technological barriers,Institutional barriers

Strategies for Green Innovation:

•        Niche strategy

•        Endorsement strategy

•        Partnership strategy

CHAPTER 14: National Innovation Systems

Britain’s early record of innovation: “…. Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.”

                                                                           C. Freeman (1987)

Systems of innovation

•        National innovation systems

•        i.e. a country specific system such as the national innovation system of the UK or Japan

•        Regional innovation systems

•        i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

•        Sector innovation system

•        i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

 

NUR NASUHA BINTI MOHD LAYLI (E16A0189)
NUR NASUHA BINTI MOHD LAYLI (E16A0189)
CHAPTER 12: INNOVATION OFFSHORING

Innovation offshoring can be defined as a way in which some innovation-related activities are carried out by third parties located overseas. It grow through the factor of globalisation due to lower transaction costs which include searching, negotiating, enforcing, agreements and contracts. There are two types of transaction costs which are coordination and opportunism costs. Through globalisation and transaction costs, it have encouraged and outsourcing by re-structuring of organization and offshoring by geographical relocation of the supply. Innovation offshoring is driven by the improvement of technology linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is the collaborations and interactions between different firms and organizations producing an exploiting new knowledge in a global scale for purposes of fostering innovation activities. It features structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

CHAPTER 13: GREEN INNOVATION

There are three types of green innovation which are component, sub-system or modular and system. Based on The Porter hypothesis, green innovation is the environmental regulation that represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. Green innovation is driven by technology and regulatory push and market pull.  Technology push involved the improvement of product quality and efficiency of material and energy while for regulatory push, it includes the instruments based on market, control and command. As for market pull, it associated with groups of consumers such as green idealists and trend setters. Barriers to green innovation are technological and environmental externalities. Three types of barriers are economic, technological and institutional barriers. The barriers can be overcome through the strategy of niche, endorsement and partnership.

CHAPTER 14: NATURAL INNOVATION SYSTEMS

There are three types of system of innovation which are national, regional and sector innovation systems. National innovation systems involved a specific system of a country such as United Kingdom and Japan while regional innovation systems is an innovation based on a specific location such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. As for sector innovation system, it involved an industry that have specific innovation system such as industry of pharmaceutical or aerospace.

NOORIMAN AINA BINTI NOORAZMAN (E16A0140)
NOORIMAN AINA BINTI NOORAZMAN (E16A0140)
Summary of Chapter 12: Innovation Offshoring

            Innovation Offshoring refers to some innovation-related activities are carried out by third parties located overseas. This happens due to globalisation and reduction of transaction cost. Reduction of transaction cost such as cost of searching, negotiating, enforcing and agreement between innovator and company overseas have led to outsourcing and offshoring. There are many factors that boost the production activities offshore. The factors are the improved technological linkages, growth of markets for technology globally, growth of high tech clusters in Asia and growth of expertise and capability overseas. This collaborations and interactions between different firms and organisations that produce and exploiting new knowledge in global scale for the purpose of innovation actives is known as Global Innovation Networks. 

Summary of Chapter 13: Green Innovation  

            Green innovation is a new concept of great importance to business and policy makers. It is about innovations with lower environmental impact than relevant alternatives. The innovations may be technological or non-technological (organizational, institutional or marketing-based). Eco-innovations can be motivated by economic or environmental considerations. The former includes objectives to reduce resource, pollution control, or waste management costs, or to sell into the world market for eco-products. The factors that drives the green innovation to be implemented in the business world are the technology push such as the quality of the product, and energy efficiency. Next, the regulatory push such as regulation set by WHO for the sake of future generation. Lastly, market pull focusing on the consumer that being a trendsetter in the community about their green interest. However, there are still barrier of this green innovation in some country. This is because of the economic barriers, technological barriers and institutional barriers of the country itself. So, entrepreneur need to have better strategies in implementing the green innovation as the concept of their idea of innovation. This environmental regulation can represent as an opportunity for innovation as green innovation may immediately reduce the cost of compliance and production.

Summary of Chapter 14: National Innovation Systems

            The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes. Government play the key role in setting broad policy directions. Bridging institutions, such as research councils and research associations, which act as the intermediaries between governments and the performers of research. Universities and related institutions provide key knowledge and skills. A country’s innovative performance largely depends on how these actors relate to each other as elements of a collective system of knowledge creation and use as well as the technologies they use. 
Nur Alissa Azlin Binti Arzemi (E16A0168)
Nur Alissa Azlin Binti Arzemi (E16A0168)
CHAPTER 12: INNOVATION OFFSHORING
 From this chapter, innovation offshoring refer to the way in which some innovation-related activities are carried out by third parties located overseas. Innovation offshoring involves the globalisation and transaction costs which is related to each other. Globalisation is a key factor behind the growth this innovation and globalisation come about because lowering of transaction costs. Transaction costs refer to the costs of searching, negotiating, enforcing and agreements and contracts. There are two main impact of the reduction in transaction impact which is outsourcing and offshoring. Example of outsourcing is organisation re-structure where increasingly supply/value chain activities by third parties and Offshoring refer to geographical re-location of the supply/value chain overseas. Innovation offshoring is encourage due to several factor which is to growth of markets for technology, high tech clusters in Asia and to improve technological linkages. Besides, changes in corporate innovation management can be enablers in facilitating offshoring. Then, Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities.
 
CHAPTER 13 (GREEN INNOVATION)
 In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies. 
 
CHAPTER 14 (NATIONAL INNOVATION SYSTEMS)
In this chapter,  from the Britain’s early record of innovation said that national innovation system is not just   a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. This system of innovation includes of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. For example, a country specific system such as the innovation system of the UK or Japan. Then, the regional innovation system is based on specific location or place such as Silicon Valley in California. Lastly, sector innovation system which is based on knowledge and technologies, actors and networks and institutions.  For example industry specific innovation system such as those of pharmaceutical or aerospace industries. This innovation system also involved many firms such as government, financial institution, industry etc.
Noor Shuhada Ezzatie Binti Mad Daud E16A0136
Noor Shuhada Ezzatie Binti Mad Daud E16A0136
Chapter 12 : Innovation Offshoring 
Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’ 
 
Globalisation & Transaction costs: 
Globalisation : 
-key factor behind the growth of innovation offshoring 
-come about because of the lowering of transaction costs 
 Transaction costs: 
-are the costs of: 
a)searching 
b)negotiating 
c)enforcing 
d)agreements and contracts in a world of imperfect information 
-2 types of transaction costs : 
a) Coordination costs 
b)Opportunism costs 
 
Impact of Globalisation and Transaction costs : 
-Reductions in transaction costs have encouraged: 
a)Outsourcing 
i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties 
b)Offshoring 
i.e. the geographical re-location of the supply/value chain overseas 
 
Offshoring: 
-Began with the movement of production activities overseas 
-Mainly in search of lower costs 
-Led to creation of Global Production Networks 
-R & D generally retained at home 
 
Factors encouraging Innovation Offshoring: 
-Improved technological linkages 
-Growth of markets for technology 
-Growth of high tech clusters in Asia 
-Growth of expertise and capability overseas 
 
 
Enablers facilitating Innovation Offshoring: 
-Changes in Corporate Innovation Management 
-Increased specialisation through modularisation 
-Increased availability and mobility of knowledge 
-Globalisation of markets for technology 
 
Modularisation: 
-Modular product architecture 
-Use of “de-composable building blocks” Ernst (2005) 
-Results in interchangeable modules 
-Facilitates ‘de-coupling’ in the production of different modules 
-Allows outside firms to be given responsibility for design/development of complete modules 
 
Global Innovation Networks : 
Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities 
Features of Global Innovation Networks : 
-Structure 
-Linkages 
-Geography 
-Hi-tech sectors 
-Governance 
-Collaborative nature 
 
Chapter 13 : Green Innovation 
Types : 
-Component 
-Sub-system/modular 
-System 
Terminology : 
-Eco-innovation/Ecological innovation 
-Environmental innovation 
-Sustainable innovation 
-Green innovation 
Drivers : 
a)Technology push: 
-Material efficiency 
-Energy efficiency 
-Improved product quality 
b)Market pull: 
-Green idealists 
-Trend setters 
c)Regulatory push: 
-Command and control instruments 
-Market-based instruments 
Barriers: 
-Technological externalities 
-Environmental externalities 
-Types of barrier: 
a)Economic barriers 
b)Technological barriers 
c)Institutional barriers 
Strategies : 
-Niche strategy 
-Endorsement strategy 
-Partnership strategy 
 
The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. 
 
Chapter 14: National Innovation Systems 
Systems of innovation : 
-National innovation systems 
-Regional innovation systems 
-Sector innovation system 
Institution : 
-Firms 
-Government 
-Financial institutions 
-Industry 
-Education institutions 
-Science and technology 
Siti Nur’Ain bt A
 Siti Nur’Ain bt Ab Aziz(E16A0270)
Chapter 12:Innovation Offshoring 
Innovation offshoring refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’.

-Globalisation is a key factor behind the growth of innovation offshoring and because of the lowering of transaction costs

-Transaction costs are the costs of searching,negotiating,enforcing and also agreements and contracts in a world of imperfect info.

-There are two types of transaction costs,Coordination costs and Opportunisms costs.

-Reductions in transaction costs have encouraged Outsourcing and Offshoring.

-Offshoring began with the movement of production activities overseas.Mainly in search of lower costs. It led to creation of Global Production Networks.

-Factors that cause Innovation Offshoring are Improved technological linkages, Growth of markets for technology,Growth of high tech clusters in Asia, and Growth of expertise and capability overseas.

-Enablers that facilitate Innovation Offshoring are Changes in Corporate Innovation Management, Increased specialisation through modularisation, Increased availability and mobility of knowledge and Globalisation of market for technology.

-Modularisation results in interchangeable  modules and Facilitates ‘de-coupling’ in the production of different modules.

Global Innovation Network are collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. 

Its features are Structure , linkages, Geography,Hi-tech sectors, Governance and Collaborative nature.


CHAPTER 13:Green Innovation 
Three types of Green Innovation are Component,Sub-system/modular and System.
Terminology of Green Innovation are Eco-innovation/Ecological innovation,Environmental innovation,Sustainable innovation and Green Innovation
The Porter Hypothesis states that environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production
Drivers of Green Innovation are technology push,regulatory push and market pull.
Technology push are Material efficiency,Energy efficiency and Improved product quality
Market pull associates with the consumers such as Green idealists and Trend setters
Regulatory push consists of Command and control instruments and Market-based instrument.
Barriers of Green Innovation are Technological externalities and Environmental externalities.
Types of barrier are Economic barriers,Technological barriers and Institutional barriers.
Strategies for Green Innovation are Niche strategy, Endorsement strategy and Partnership strategy



CHAPTER 14:NATIONAL INNOVATION SYSTEMS
C.Freeman on 1987 states that not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.”

-Systems of Innovation are National innovation systems,Regional innovation systems and Sector innovation system.

-Institutions that involved in National Innovation Systems are Financial institution,Government, Industry, Educational institution and Science and technology institution






Siti syaidatul Nisa bt Mohd arifin E16A0274
Siti syaidatul Nisa bt Mohd arifin E16A0274
Chapter 12.
Innovation offshoring
-Is the relocation of a business process from one country to another-typically an operational process, such as manufacturing, or supporting processes, sich as accounting. Typically this refer to a company business,  although state governments may also employ offshoring. Meanwhile, offshoring is the geographical re-location pf the supply. Innovation offshoring is being encouraged due to the improved technological linkage and the growth of markets for technology.

Chapter 13 indicates totally about green technology which means the innovation with concepts of environmental and sustainable innovation such as products with eco-friendly.  There are three types of green innovation which are component, modular and system. Besides, there are three of drivers of green innovation which are technology push that relate to the energy efficiency and improvement of product quality. Then, market pull that associate with groups of consumer such as green idealist and trend setters. Third, regulatory push which means the control of instruments regarding to environmental standards and also market-based instruments.

Chapter 14.
national innovation system basically the systems of innovation comprise of national innovation system, regional innovation system and sectors innovation systems. The national innovations system approach stresses that the flows of technology and information among people, enterprise, and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on actors not directly involved in innovation activities. Lastly, sector innovation system which is based on knowledge and technologies,  actord and network and institutions.
NURUL IZZATI BT ADANAN
NURUL IZZATI BT ADANAN
E16A0227

 
In Chapter 12, Innovation Offshoring refers to some innovation-related activities are carried out by third parties located overseas. Globalization is a key factor behind the growth of innovation offshoring. Offshoring is broadly defined as a firm’s allocation of business activities to another country, either by obtaining goods and services from an unaffiliated foreign company or by investing in a foreign affiliate or joint venture. There are different between domestic outsourcing and offshoring which is the latter is a transaction that crosses borders. In terms of innovation effects, there are two mechanism which is outsourcing allows firms to reduce factor costs and restructure their operations towards higher value-added activities such as R&D and innovation– a channel highlighted in the context of developed countries. This allows the firm to learn new technologies and expand its technological frontier. The use of imported inputs – in particular from industrialised countries – can provide strong learning effects for emerging-market firms. Thus, the firms in emerging economies increase innovation as a result of engaging in offshoring, which is an alternative method of international sourcing. 

            In Chapter 13, Green Innovation is the development of products and processes that contribute to sustainable development, applying the commercial application of knowledge to elicit direct or indirect ecological improvements. There are three types of green innovation with the mission or cause-oriented sustainability business adding ecological, economical, social values and gains, with a bias towards the intangible – through dematerialization or resocialization. The value added at the same time preserving, restoring and/or ultimately enhancing the underlying utilized capital stock, in order to maintain the capacity to fulfil the needs of present and coming generations of stakeholders. Although there are barrier for green innovation, the company can plan their strategies in partnership, niche and endorsement strategy to achieve their mission. 

            In Chapter 14, National Innovation System is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. Innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes. A country’s innovative performance largely depends on how these actors relate to each other as elements of a collective system of knowledge creation and use as well as the technologies they use. Governments either central or regional play the role of coordinator among research producers in terms of their policy instruments, visions and perspectives for the future. The linkages can take the form of joint research, personnel exchanges, cross patenting, and purchase of equipment. 
Nor Nadia Binti Mohd Zulkafli E16A0147
Nor Nadia Binti Mohd Zulkafli E16A0147

Innovation offshoring 

-          the way in which some innovation-related activities are carried out by third parties located overseas. This chapter discusses the impact of globalisation on transaction costs. Globalisation is a key factor behind the growth of innovation offshoring. This chapter also focus on differentiate and distinguish between outsourcing and offshoring. Global innovation networks also been compared to global production networks consist of six components whereas structure, linkage, geography, hi tech sectors, governance and collaborative nature. 

 

Chapter 13

-           There are 3 types of green innovation which are consist of component, sub-system and system. The factors that drives the green innovation consist of technology push, regulatory push and market pull. Besides, barriers to green innovation also been mentioned in this chapter. Types of barriers also was discussed in this chapter which are economic, technological and institutional. Lastly, strategies for green innovation are niche, endorsement and partnership strategy. 

 

chapter 14

-          the title is national innovation system. In this chapter, system of innovation may be crucial point which consist of national innovation system, regional innovation and sector innovation system. 

NUR SAFIQAH BINTI ADNAN E16A0191
NUR SAFIQAH BINTI ADNAN E16A0191

In chapter 12, innovation offshoring refers to the way in which some innovation-related activities are carried out by third parties located overseas. There are 2 types of transaction costs which is coordination costs and opportunism costs. Globalisation is a key factor behind the growth of innovation offshoring. Transaction costs are the cost of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. Impact of globalisation and transaction costs are outsourcing and offshoring. Outsourcing likes organisation re-structuring where increasingly supply/value chain activities are carried out by third parties. Offshoring likes the geographical re-location of the supply/value chain oversea. Factors that encouraging innovation offshoring are improved technological linkages such as electrification, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas such as through technological catch-up and upgrading. Features of global innovation networks are structures, linkages, geography, hi-tech sectors, governance and collaborative nature. 

In chapter 13, there are three types of green innovation which are component, sub-system/modular and system. Terminology of green innovation are eco-innovation, environmental innovation, sustainable innovation and green innovation. Technology push, regulatory push and market pull are drivers of green innovation. The ‘double’ hurdle of barrier to green innovation are technological externalities and environmental externalities. There are three types of barrier which is economic barriers, technological barriers and institutional barriers. Strategies for green innovation are likes niche strategy likes Volvo bus, endorsement strategy likes Hollywood and the Toyota Prius, and partnership strategy likes Coca-Cola and Heinz.  

In chapter 14, systems of innovation is divided by three which are national innovation systems, regional innovation system and sector innovation system. Example of national innovation systems are a country specific system such as the national innovation system of the UK or japan. Example of regional innovation systems is an innovation based on a specific location or place such as Silicon Valley in California or motor sport valley in Oxfordshire. Example of sector innovation system is an industry specific innovation system such as those of the pharmaceutical or aerospace industries. There are five main firm’s institutions which are government, science and technology, educational institution, industry and financial institutions.  

Nabilah binti Mohd Na'im
Nabilah binti Mohd Na'im
E16A0122

Chapter 12
Innovation offshoring
Definition of innovation offshoring is any innovation activities that are being conducted by third parties. Factor of determining innovation offshoring is globalization and transaction costs. When transaction cost increase, the globalization will appear. Transaction cost includes searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. Two types of transaction cost are coordination cost and opportunism cost. Reduction in transaction cost has caused restructuring of organisation and relocation of geographical. Offshoring began from overseas where there is movement of production activities which later caused the creation of Global Production Networks. Factors that encourage innovation offshoring are improved technological linkages, growth of market for technology, growth of high tech clusters in Asia and growth of expertise and capabilities overseas. Meanwhile, global innovation network is a globally organized network of interconnected and integrated functions and operations by firms and non firm organizations engaged in the development or diffusion of innovation.

Chapter 13
Green innovation
There are three types of innovation which are component, sub-system and system. Green innovation is related to eco-innovation, environmental innovation, sustainable innovation and green innovation. The components that drive green innovation are technology push, regulatory push and marker pull. The barriers of green innovation are technological externalities and environmental externalities. There are three types of barrier which are economic, technological and institutional. Strategies for green innovation are niche, endorsement and partnership.

Chapter 14
National Innovation System
There are three systems of innovation which are national, regional and sector innovation systems. National innovation systems is specific system in particular country. Regional innovation system is innovation that based on specific location or place. Sector innovation system is innovation system in specific industry.

NUR SYAFIQA BT MOHD SABARI
NUR SYAFIQA BT MOHD SABARI
E16A0195
SEG 2 
Summary Chapter 12,13 and 14

Innovation Offshoring

- is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Typically this refers to a company business, although state governments may also employ offshoring.More recently, offshoring has been associated primarily with outsourcing  of technical and administrative services supporting domestic and global operations from outside the home country ("offshore outsourcing"), by means of internal (captive) or external (outsourcing) delivery models.
The term is in use in several distinct but closely related ways. It is sometimes used broadly to include substitution of a service from any foreign source for a service formerly produced internally to the firm. In other cases, only imported services from subsidiaries or other closely related suppliers are included. A further complication is that intermediate goods, such as partially completed computers, are not consistently included in the scope of the term.

Green Innovation 

-Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Increasing concern about the future sustainability of economic growth patterns underpin the demand for a greener model of growth. Existing production technology and consumer behaviour can only be expected to produce positive outcomes up to a point; a frontier, beyond which depleting natural capital has negative consequences for overall growth. By pushing the frontier outward, innovation can help to decouple growth from natural capital depletion. Innovation and the related process of creative destruction will also lead to new ideas, new entrepreneurs and new business models, thus contributing to the establishment of new markets and eventually to the creation of new jobs. Green innovation is therefore the key in enabling environmentally sustainable growth.
 
Innovation National System
 
-The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.
 
 


 
 
NUR AINA BINTI AB MAJID (E16A0165
NUR AINA BINTI AB MAJID (E16A0165
CHAPTER12 (INNOVATION OFFSHORING) 

Innovation offshoring is referring to the innovation that has been made and carried out by third parties. there are several parts that contribute to the innovation offshoring such as globalisation and transaction cost, the impact of globalisation and transaction cost and organisational and spatial options. Then the factors that encouraging innovation offshoring are improved of technological linkages, growth of markets for technology, high tech cluster in Asia and expertise and capability overseas. lastly is the features of global innovation networks. There are 6 main features which can be related to the global innovation networks namely structure, linkages, geography, high-tech sectors, governance and collaborative nature. 

CHAPTER 13 (GREEN INNOVATION)

Green innovation are divided into three types that is component, sub-system/modular, system. Three drivers of green innovation are technology push, regulatory push and market pull. In realizing green innovation, there are a few barrier that can make the innovation not working. They are the economic barrier, technological barrier and institutional barrier. Three strategies needed for green innovation, which are the niche strategy, endorsement strategy and the partnership strategy.

CHAPTER 14 (NATIONAL INNOVATION SYSTEM)

In this chapter,there are three types of innovation. firstly is national innovation system which  means a country specific system such as the national innovation system of the UK or Japan. Next is the regional innovation systems, an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. The last one is the sector innovation system with an industry specific innovation system such as those of the pharmaceutical or aerospace industries. 
AMEERA NUR AFIQAH BINTI PRIYONO (E16A0020)
AMEERA NUR AFIQAH BINTI PRIYONO (E16A0020)
there u go
Nur anis zarifa binti zamri
Nur anis zarifa binti zamri
E16A0170
FATIN NUR ALIA BINTI RAMLI (E16A0055)
FATIN NUR ALIA BINTI RAMLI (E16A0055) 

CHAPTER 12 (INNOVATION OFFSHORING)

MEANING OF INNOVATION OFFSHORING 
Refers to the innovation relations activities that are carried by third parties located overseas.
GLOBALISATION & TRANSACTION COSTS 
- Globalisation resulting from the lowering of transaction costs.
- Transaction costs are :
1. Searching
2. Negotiating
3. Enforcing
4. Agreements & contracts
- Types of transaction costs
1.  Coordination costs
2. Opportunism costs
- Impact of Globalisation & Transaction costs.
1. Outsourching 
2. Offshoring 

OFFSHORING
- Began from movement of overseas activities production
- Mainly of lower costs
- Led to creation of Global Production Networks
- R&D generally retained at home
- Begun to see R&D moving offshore
- Then, innovation offshoring
FACTORS ENCOURAGING INNOVATION OFFSHORING 
- Improved technological lingkages
- Growth of markets of technology
- Growth of high tech clusters in Asia
- Growth of expertise and capability overseas.
ENABLERS FACILITATING INNOVATION OFFSHORING
- Changes in Corporate Innovation Management
- Increased specialisation through modularisation
- Increased availability and mobility of knowledge
- Globalisation of markets for technology.
MODULARISATION 
- Modular product architecture
- Use of 'de-composable building blocks'
- Results in interchangeable modules 
- Facilitates 'de-coupling' in production of different modules
- Allows outside firms to be given responsibility for design/development to complete modules.
GLOBAL INNOVATION NETWORKS
DEFINITION :  
“collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities” 
FEATURES OF GIN
- Structure
- Lingkages
- Geography
- Hi-tech Sectors
- Governance
- Collaborative nature

CHAPTER 13  (GREEN INNOVATION)
TYPES OF GI
- Component
- Sub-system/modular
- System
TERMINOLOGY OF GI
- Eco-innovation/ Ecological innovation
- Environment innovation
- Sustainable innovation
- Green innovation 
THE PORTER HYPOTHESIS 
“environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.’
DRIVERS OF GI
1. TECHNOLOGY PUSH
- Material efficiency
- Energy efficiency
- Improved product quality
2. REGULATORY PUSH
- Command & control instruments
- Market-based instruments
3. MARKET PULL 
- Green Idealists
- Trend setters
BARRIERS TO GI
1. Technological externalities
2. Environmental externalities
TYPES OF BARRIER
- Economic barriers
- Technological barriers
- Institutional barriers 
STRATEGIES FOR GI
- Niche strategy 
- Endorsement strategy
- Partnership strategy 

CHAPTER 14 (NATIONAL INNOVATION SYSTEM)
SYSTEM OF INNOVATION 
- National innovation systems
-Regional innovation systems
- Sector innovation system
INSTITUTIONS
1. Government
2. Financial instituions
3. Industry
4. Educational institutions
5. Science & technology institutions
NURAIN BINTI SAIPOLBAHRI (E16A0203)
NURAIN BINTI SAIPOLBAHRI (E16A0203)

CHAPTER 12 (INNOVATION OFFSHORING)

    In this chapter, we managed to understand that innovation offshoring totally about some related activities that carried out by third parties located overseas. This means when we want to produce new innovation, we can collaborate with others global innovation network to cooperate with us. 
For instance, the famous products of Apple iPod by Apple have been collaborate with innovators from others countries such as US, Japan, UK and South Korea to produce the best Apple iPod. Next, the main key factor of the growth of innovation offshoring is globalisation where we need to think globally about products of innovation offshoring that carried by third parties of overseas. There are four transaction costs that have come out from globalisations such as searching, negotiating, enforcing and agreements of information. Then, two types of transaction costs are coordination and opportunism costs. This means that when the transaction costs are low, it will encourage outsourcing such as activities that carried by third parties and also offshoring such as the location of the overseas supply is being relocated. 
Through this chapter, we understand about offshoring including textiles and electronics activities are mainly lower costs. The improvements technological linkages, growth of markets for technology, high tech clusters in Asia and growth of expertise overseas have become the main factors that encourage innovation offshoring. Everyone could be the innovator offshoring when they could changes in Corporate Innovation Management, increased specialization through modularisation, has mobility of knowledge and also can global their markets for technologies. There are also six features that related to global innovation networks which are structure, linkages, geography, hi-tech sectors, governance and collaborative nature. In conclusion, innovation offshoring is known as physical restructuring of established products involves relocation of physical manufacturing processes to a lower-cost destination. Examples of production offshoring include the manufacture of electronic components in Costa Rica production of apparel, toys, and consumer goods in China and Vietnam.  

 
CHAPTER 13 (GREEN INNOVATION)

     Chapter 13 indicates totally about green technology which means the innovation with concepts of environmental and sustainable innovation such as products with eco-friendly. There are three types of green innovation which are component, modular and system. These types shows that we need to have the product with component of less negative impact towards environment then, product must be eco-efficiency and lastly the product achieved the eco-effectiveness that have economic sustainability of the system. 
Besides, there are three of drivers of green innovation which are technology push that relate to the energy efficiency an improvement of product quality. Next drivers are market pull that associate with groups of consumers such as green idealists and trend setters. Thirdly, regulatory push which means the control of instruments regarding to environmental standards and also market-based instruments that includes the financial incentives such as taxes and subsidies.
Green technology also has its barrier such as economic, technological and institutional barrier. These barriers show that due to our unstable economic, we could not have enough financial to set up product of eco-friendly with need higher initial cost. Then, the lack technology in Malaysia will give the tension to the innovator of green technology to carry out their processes. The institutional barrier shows that less institute in our country also effected the production of green technology. Hence, we need to have the strategies for green technology such as niche and endorsement strategy which we collaborate with the company from others countries that have modern technology to conduct our green technology. Lastly, partnership strategy also the main important strategy because we manage to collaborate and combining the ideas between each other to create the best innovation of green technology. 

 
CHAPTER 14 (NATIONAL INNOVATION SYSTEM)

      This chapter totally discussed that the successful of invention means the invention attributes to a unique combination of interacting social, economic and technical changes within the national economic space. There are three systems of innovation which firstly is national innovation system that means the country specific system. Secondly, regional innovation systems which means the specific location or place of innovations. For instance, the Motor Sport Valley in Oxford shire. Thirdly, sector innovation system which shows the industry specific innovation such as aerospace industries. This chapter indicates that the cooperation of many institutions is the main key factor in national innovation system. This shows that government, science technology, educational institutions, industry, financial institutions and firms need to collaborate with each other to achieve the national innovation system. In conclusion, the national innovation system which known as NIS or National System of Innovation is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level.

gical catch-up and upgrad
 gical catch-up and upgrading
Growth of markets for tec
 Growth of markets for technology
•       Growth of high tech clusters in Asia 
•       Growth of expertise and capability overseas
•       i.e. through technological catch-up and upgrading
NUR FAZREENA BINTI MD FAUZI E16A0180
NUR FAZREENA BINTI MD FAUZI E16A0180
In chapter 12, the topics is about innovation offshoring. Innovation offshoring refers to the way in which some innovation related activities are carried out by third parties located overseas. Globalization is a key factor behind the growth of innovation offshoring. There are two types of transaction costs which are coordination costs and opportunism costs. Reductions in transaction costs have encouraged outsourcing and offshoring. Offshoring began with the movement of production activities overseas. The factors that encourage innovation offshoring are improved technological linkages, growth of markets for technology, growth of high technology cluster in Asia and the growth of expertise and capability overseas.

 

In chapter 13, the topics is on green innovation. Three drivers of green innovation are technology push, regulatory push and market pull. In realizing green innovation, there are a few barrier that can make the innovation not working. They are the economic barrier, technological barrier and institutional barrier. Three strategies needed for green innovation, which are the niche strategy, endorsement strategy and the partnership strategy. 

 

For chapter 14, the topics discussed is on the national innovation system. There are three system of innovation. The first one is national innovation system which means a country specific system such as the national innovation system of the UK or Japan. Next is the regional innovation systems, an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. The last one is the sector innovation system with an industry specific innovation system such as those of the pharmaceutical or aerospace industries. 

NOR LIANATASHYA BINTI ALIAS (E16A0145)
NOR LIANATASHYA BINTI ALIAS (E16A0145)

Chapter 12

This chapter referring to a site way in which some innovation-related activities are carried out by the third parties that located overseas. It involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties. Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology. In addition to this, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.

 

Chapter 13

In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies.

Chapter 14

This chapter discuss about National Innovation System (NIS). The system of innovation can be divided into three categories which are national, regional and sector innovation system. The national innovation system refer to the country specific system such as UK and Japan, regional innovation system is system of innovation based on the specific location or place while sector innovation system applied in specific industry such as aerospace industries and pharmaceutical. This innovation system will involved many firms such as government, financial institutions, industry etc. This chapter also compare Japan and Union of Soviet Socialist Republic (USSR) regarding their NIS. The elements that were compared and discussed are the GNP ratio, proportion of military and R&D at firm levels, experience of competition in international market etc. Both of these countries have their own pro and cons on their NIS.

AFIQAH BINTI IBRAHIM SUKRI E16A0007
AFIQAH BINTI IBRAHIM SUKRI E16A0007


Chapter 12.

Innovation offshoring :
Refers to some innovation-related activities are carried out by third parties located overseas.

It is comprise of :

Globalisation and transaction cost :
both are key factor for the growth of innovation offshoring
2 types of transactions cost which is coordinate and oppurtunism
Impact:
Outsourcing : organisation re-structuring where increasingly supply/value chain activities are carried out by third parties
Offshoring : the geographical re-location of the supply/value chain overseas

Factors encouraging:
Improve technological linkages
Growth of market for technolog
Growth of high tech clusters in asia
Growth of expertise and capabilities overseas 

Chapter 13
'hardware or software innovationthat is related to green products or processes, including the innovation in technologies that are involved in energy-saving, pollution-prevention, waste recycling, green product designs, or corporate environmental management' (Chen et al., 2006) 

Which comprise of :
 
Types of green innovation 
•Component
•Sub-system/modular
•System

Drivers of green innovation 
Technology push
Regulatory push
Market pull

Barriers 
economic 
Technological
Institutional 

Strategies 
niche
Endorsement
Partnership 

Chapter 14:
Definition : is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. 

Systems of innovation :
national innovation system 
Regional innovation system
Sector innovation system 

Institution:
firms 
Government
Financial institutions 
Industry 
Education institutions 
Science and technology
SHARIFAH NURIN WAHIDA BT SYED SABRI (E16A0253)
SHARIFAH NURIN WAHIDA BT SYED SABRI (E16A0253)
Chapter 12- INNOVATION OFFSHORING

Chapter 12- INNOVATION OFFSHORING

Innovation offshoring-refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation & Transaction costs

•       Globalisation is a key factor behind the growth of innovation offshoring

•       Globalisation has come about because of the lowering of transaction costs

 Transaction costs are the costs of: 

•       searching
•       negotiating 
•       enforcing 
•       agreements and contracts in a world of imperfect information

There 2 types of transaction costs

·         Coordinate costs
·         Opportunism costs

Impact of Globalisation and Transaction costs

Reductions in transaction costs have encouraged:

Outsourcing
•       i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

Offshoring
•       i.e. the geographical re-location of the supply/value chain overseas

Factors encouraging Innovation Offshoring

 Improved technological linkages
 Growth of markets for technology
Growth of high tech clusters in Asia 

Enablers facilitating Innovation Offshoring

•       Changes in Corporate Innovation Management
•       i.e. shorter lead times; increased development of multi-technology products
•       Increased specialisation through modularisation
•       Increased availability and mobility of knowledge
•       Globalisation of markets for technology

Modularisation

•       Modular product architecture

•       Allows outside firms to be given responsibility for design/development of complete module

Global Innovation Networks

Features of Global Innovation Networks

•       Structure 
•       Linkages
•       Geography
•       Hi-tech sectors
•       Governance
•       Collaborative nature

CHAPTER 13-GREEN INNOVATION

Types of Green Innovation

•       Component

•       Sub-system/modular

•       System

Terminology of Green Innovation

•   Eco-innovation/Ecological innovation
•   Environmental innovation
•    Sustainable innovation
•   Green innovation

The Porter hypothesis

“environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production”

Drivers of Green Innovation

Technology push

·         Product quality
·         Material efficiency
·         Energy efficiency

Regulatory push

·         Legislation
·         Standard
·         Future regulation

Market pull

·         Competition
·         Image
·         Market share

Barriers to green innovation

Types of barrier

•       Economic barriers
•       Technological barriers
•       Institutional barriers

Strategies for Green Innovation

•       Niche strategy
  e.g. Volvo Bus
•       Endorsement strategy
e.g. Hollywood and the Toyota Prius
•       Partnership strategy
•       Coca-Cola and Heinz and the development of the PlantBottleÔ

CHAPTER 14 – NATIONAL INNOVATION SYSTEM

Systems of innovation

• National innovation systems
•Regional innovation systems
• Sector innovation system

Institution : 
-Firms 
-Government 
-Financial institutions 
-Industry 
-Education institutions 
-Science and technology 


 


 

 

 

 
NADIA BT ABDUL GHAPAR (E16A0124)
NADIA BT ABDUL GHAPAR (E16A0124)
 
Chapter 12 : Innovation Offshoring 

Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’ 

Innovation offshoring involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology. Other than that, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation. 

Chapter 13 : Green Innovation 

Types of green innovation :

components, sub system and system 

Terminology green innovation :

Eco innovational, environmental innovation, sustainable innovation and green innovation 

Drivers of green innovation :

Technology push, regulatory push and market pull 

Barris to green innovation :

Technological externalities and environmental enxternalities 

Types of barriers :

Economic, technological and institutional barriers 

Strategies for green innovation: 

Niche, endorsement and partnership strategy 

 
Chapter 14 : National innovation System 

discussed on National Innovation Systems topic. Basically the systems of innovation comprises of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on actors not directly involved in innovation activities. The key variables are the actor constellations and their modes of coordination that characterize the regional innovation system. Last but not least, sector innovation system which is based on knowledge and technologies, actors and networks and institutions. Sector innovation system have a knowledge base, technologies, inputs and a potential demand. They are composed of a set of agents carrying out market and non-market interactions for the creation, development and diffusion of new sectoral products. 

NURNAJIHAH BT ZAKARIA E16A0210
NURNAJIHAH BT ZAKARIA E16A0210
Chapter 12.

Innovation offshoring :
Refers to some innovation-related activities are carried out by third parties located overseas.

It is comprise of :

Globalisation and transaction cost :
both are key factor for the growth of innovation offshoring
2 types of transactions cost which is coordinate and oppurtunism
Impact:
Outsourcing : organisation re-structuring where increasingly supply/value chain activities are carried out by third parties
Offshoring : the geographical re-location of the supply/value chain overseas

Factors encouraging:
Improve technological linkages
Growth of market for technolog
Growth of high tech clusters in asia
Growth of expertise and capabilities overseas 

Chapter 13
'hardware or software innovationthat is related to green products or processes, including the innovation in technologies that are involved in energy-saving, pollution-prevention, waste recycling, green product designs, or corporate environmental management' (Chen et al., 2006) 
 
Which comprise of :
 
Types of green innovation 
•Component
•Sub-system/modular
•System

Drivers of green innovation 
Technology push
Regulatory push
Market pull

Barriers 
economic 
Technological
Institutional 

Strategies 
niche
Endorsement
Partnership 

Chapter 14:
Definition : is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. 

Systems of innovation :
national innovation system 
Regional innovation system
Sector innovation system 

Institution:
firms 
Government
Financial institutions 
Industry 
Education institutions 
Science and technology
N
N
NUR BASYIRAH BT MOHAMAD ALI (E16A0174)
NUR BASYIRAH BT MOHAMAD ALI (E16A0174)
CHAPTER 12:INNOVATION OFFSHORING
 
Innovation offshoring:some innovation-related activities are carried out by third parties located overseas.
Globalisation & Transaction costs
It exist because of the lowering of transaction costs.
Transaction costs are the costs of: searching,negotiating ,enforcing ,and agreements and contracts in a world of imperfect information.
2 types of transaction which are:( largely by advances in technology and trade liberalisation)
Coordination costs
Opportunism costs
Reductions in transaction costs have encouraged:
Outsourcing
i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties
Offshoring
i. e. the geographical re-location of the supply/value chain overseas.
Offshoring
Began with the movement of production activities overseas.Mainly in search of lower costs.e.g. textiles and electronics.Finally it can led to creation of Global Production Networks
Factors encouraging Innovation Offshoring
1.Improved technological linkages
2.Growth of markets for technology
3.Growth of high tech clusters in Asia 
4.Growth of expertise and capability overseas
Modularisation
It’s when the results in interchangeable modules.Facilitates ‘de-coupling’ in the production of different modules,Next,it allows outside firms to be given responsibility for design/development of complete modules
Features of Global Innovation Networks
1.Structure 
2.Linkages
3.Geography
4.Hi-tech sectors
5.Governance
6.Collaborative nature
 
CHAPTER 13:
GREEN INNOVATION
 
TYPES
1.Component
2.Sub-system/modular
3.System
Terminology
1.Eco-innovation/Ecological innovation
2.Environmental innovation
3.Sustainable innovation
4.Green innovation
The Porter hypothesis
a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.
Technology push
Material efficiency,Energy efficiency, and Improved product quality
Market pull
‘Green idealists’
i.e. moral, philosophical interests
‘Trend setters’
i.e. ‘image’, association interests
Regulatory push
Command and control instruments,Mandatory requirements regarding environmental standards,Next.Market-based instruments.Financial incentives/penalties. e.g. taxes, emission permits, subsidies, take-back schemes, etc.
Barriers to green innovation
Technological externalities
i.e. the problem appropriability
Environmental externalities
i.e. unattributed external (social) costs that the polluter does not pay
Types of barrier
1.Economic barriers
2.Technological barriers
3.Institutional barriers
Strategies for Green Innovation 
Niche strategy
Endorsement strategy
Partnership strategy
 
CHAPTER 14:NATIONAL INNOVATION SYSTEM
Systems 
Systems of innovation : 
-National innovation systems 
-Regional innovation systems 
-Sector innovation system 
Institution : 
-Firms 
-Government 
-Financial institutions 
-Industry 
-Education institutions 
-Science and technology 
 
Wafa Aini bt Abd Rashid E16A0296
Wafa Aini bt Abd Rashid E16A0296

Chapter 12 : Innovation Offshoring 
Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’ 
 
Globalisation & Transaction costs: 
Globalisation : 
-key factor behind the growth of innovation offshoring 
-come about because of the lowering of transaction costs 
 Transaction costs: 
-are the costs of: 
a)searching 
b)negotiating 
c)enforcing 
d)agreements and contracts in a world of imperfect information 
-2 types of transaction costs : 
a) Coordination costs 
b)Opportunism costs 
 
Impact of Globalisation and Transaction costs : 
-Reductions in transaction costs have encouraged: 
a)Outsourcing 
i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties 
b)Offshoring 
i.e. the geographical re-location of the supply/value chain overseas 
 
Offshoring: 
-Began with the movement of production activities overseas 
-Mainly in search of lower costs 
-Led to creation of Global Production Networks 
-R & D generally retained at home 
 
Factors encouraging Innovation Offshoring: 
-Improved technological linkages 
-Growth of markets for technology 
-Growth of high tech clusters in Asia 
-Growth of expertise and capability overseas 
 
 
Enablers facilitating Innovation Offshoring: 
-Changes in Corporate Innovation Management 
-Increased specialisation through modularisation 
-Increased availability and mobility of knowledge 
-Globalisation of markets for technology 
 
Modularisation: 
-Modular product architecture 
-Use of “de-composable building blocks” Ernst (2005) 
-Results in interchangeable modules 
-Facilitates ‘de-coupling’ in the production of different modules 
-Allows outside firms to be given responsibility for design/development of complete modules 
 
Global Innovation Networks : 
Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities 
Features of Global Innovation Networks : 
-Structure 
-Linkages 
-Geography 
-Hi-tech sectors 
-Governance 
-Collaborative nature 
 
Chapter 13 : Green Innovation 
Types : 
-Component 
-Sub-system/modular 
-System 
Terminology : 
-Eco-innovation/Ecological innovation 
-Environmental innovation 
-Sustainable innovation 
-Green innovation 
Drivers : 
a)Technology push: 
-Material efficiency 
-Energy efficiency 
-Improved product quality 
b)Market pull: 
-Green idealists 
-Trend setters 
c)Regulatory push: 
-Command and control instruments 
-Market-based instruments 
Barriers: 
-Technological externalities 
-Environmental externalities 
-Types of barrier: 
a)Economic barriers 
b)Technological barriers 
c)Institutional barriers 
Strategies : 
-Niche strategy 
-Endorsement strategy 
-Partnership strategy 
 
The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. 
 
Chapter 14: National Innovation Systems 
Systems of innovation : 
-National innovation systems 
-Regional innovation systems 
-Sector innovation system 
Institution : 
-Firms 
-Government 
-Financial institutions 
-Industry 
-Education institutions 
-Science and technology 
NURIN DALILA BINTI MOHD SHOBRI (E16A0208)
NURIN DALILA BINTI MOHD SHOBRI (E16A0208)
Chapter 12: Innovation Offshoring
Offshoring means the business that done at company in one country or in different country. Meanwhile, outsourcing is a strategy of using external parties to engage in idea generation for new products and services. Another objectives that important in this chapter is the globalisation and transaction cost. Two types of transaction cost are coordination cost which is cost of processing information in an organization and opportunism cost which is a benefit, profit or value of something that must be given up to acquire or achieve something else. This chapter also discuss about the factor encouraging and enabler facilitating of innovation offshoring. Lastly, this chapter also discuss about global innovation network. The meaning is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. It is significantly influence national and regional innovation systems. Plus, companies are increasingly opening their innovation processes and collaborating on innovation with external partners like suppliers.

Chapter 13: Green innovation
There are three element that act as driver to green innovation which are technology push, regulatory push and also market push. The combination of these elements can make one green innovation that able to solve the problem toward the environment. There are three types of green innovation which are component, sub-system and system. However, these three types have their own positive and negative impacts which based on environment, economic and social sustainability of the system. In this chapter, it also stated about the barriers to development the green innovation. One of them is economic. This is because, development  of one green innovation need a higher cost and expensive. Institution barrier is happen because there is not much of institution that able to develop the green innovation.
Strategies for green innovation are niche strategy, endorsement strategy and partnership strategy. 

Chapter 14: National innovation system
This topic discuss about system in innovation. There are three system which are national innovation, regional innovation and sector innovation. National innovation system is the country specific system such as the national innovation system of the UK or Japan while regional innovation system is an innovation based on a specific location or place. Lastly is sector innovation which means an industry specific innovation system such as those of the pharmaceutical or aerospace industries. This topic also tells about network of a national innovation system. 5 types of firms that involve are government, science and technology institutions, educational institutions, industry and also financial institution. All these firms have their own responsibility and play an important role in-order to develop a relationship or network. For example is educational institutions, it play a role in gives knowledge for students and financial institutions is important to give money for the development of national network.



CHAN WAI SHEAN (E16A0035
CHAN WAI SHEAN (E16A0035
Chapter 12: Innovation Offshoring
·Innovation offshoring is the way in which “some innovation related activities are carried out by third parties located overseas”.
 
Globalization is the main element for growth of offshoring.
 
Type of transaction cost :
 coordination
 opportunism
 
Impact of globalization and transaction cost :
outsourcing
offshoring
 
Organizational restructuring maybe in house, cooperative or outsourcing while geographic relocation would be home or offshore.
 
Offshoring began with the movement of production activities overseas that mainly in search of lower cost and led to creation of global production network.
 
Factor encourage innovation offshoring:
*improved technological linkage
*growth of markets for technology, high technology clusters and expertize overseas
 
Enablers facilitating innovation offshoring:
*changes in corporate innovation management
*increased specialization through modularization
*increased availability and mobility of knowledge
*globalization of market for technology
 
 Global innovation network is “collaborations and interactions between different firms and organizations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities”.


Features of global innovation network:
~structure
~linkage
~geography
~high technology sector
~governance
~collaborative nature
 
 
Chapter 13: Green Innovation
 
Green innovation= ecological innovation=environmental innovation=sustainable innovation

Type of green innovation 
component
modular
system
 
Driver of green innovation:
 *Technology push: product quality, material and energy efficiency
*Regulatory push: legislation, standard and existing environment
*Market pull: market share, new market and competition
 
Barrier to green innovation: technology or environmental externalities
        ~economic barrier
        ~technological barrier
        ~institutional barrier
 
Strategy for green innovation
niche
endorsement
partnership
 
 
Chapter 14: National Innovation System
 
System of innovation
          -National
          -Regional
          -Sector
 
Institution involve:
         -Government
        -Financial institution
        -Industry
       -Educational institution
       -Science and technology institutions
 
MASTURA EDAYU BT MUSTAPAI (E16A0090)
MASTURA EDAYU BT MUSTAPAI (E16A0090)
CHAPTER 12: INNOVATION OFFSHORING
 From this chapter, innovation offshoring refer to the way in which some innovation-related activities are carried out by third parties located overseas. Innovation offshoring involves the globalisation and transaction costs which is related to each other. Globalisation is a key factor behind the growth this innovation and globalisation come about because lowering of transaction costs. Transaction costs refer to the costs of searching, negotiating, enforcing and agreements and contracts. There are two main impact of the reduction in transaction impact which is outsourcing and offshoring. Example of outsourcing is organisation re-structure where increasingly supply/value chain activities by third parties and Offshoring refer to geographical re-location of the supply/value chain overseas. Innovation offshoring is encourage due to several factor which is to growth of markets for technology, high tech clusters in Asia and to improve technological linkages. Besides, changes in corporate innovation management can be enablers in facilitating offshoring. Then, Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities.
 
CHAPTER 13 (GREEN INNOVATION)
 In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies. 
 
CHAPTER 14 (NATIONAL INNOVATION SYSTEMS)
In this chapter,  from the Britain’s early record of innovation said that national innovation system is not just   a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. This system of innovation includes of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. For example, a country specific system such as the innovation system of the UK or Japan. Then, the regional innovation system is based on specific location or place such as Silicon Valley in California. Lastly, sector innovation system which is based on knowledge and technologies, actors and networks and institutions.  For example industry specific innovation system such as those of pharmaceutical or aerospace industries. This innovation system also involved many firms such as government, financial institution, industry etc.
NURSYAHIRAH BINTI MA
 NURSYAHIRAH BINTI MAJDI      E16A0212

Chapter 12 explain about innovation offshoring. Innovation offshoring refer to the way in which some innovation-related are carried out by third parties located overseas. The globalisation and and transaction cost are the important element that influence the innovation offshoring. Coordination cost and opportunism cost are the types of transaction cost. The reduction in the transaction cost encouraged outsourcing and offshoring. Outsourcing is the organisation re-structuring by third parties while offshoring is firm’s allocation of business activities to another country or obtain goods and services from an unaffiliated foreign country. Then, the factors that encouraging this innovation are improved technological linkages, growth of market for technology etc. Other than that, this topic briefly describe about modularisation which is modular product architecture. Next, global innovation system was defined as collaboration and interactions between different firms and organisation producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities. Structure, linkages, geography, governance etc. are the features of this global innovation. Apple Ipod is an example of this innovation.

Chapter 13 describe about green innovation. There are 3 types of green innovation which are component, sub-system or modular and system. The green innovation occur or drived by technology push, regulatory push and market pull. Technology push will be associated with material efficiency, energy efficiency and improved quality of product. Market pull usually depend on the group of customer like green idealists who are concern about environmental innovation. Regulatory push tell us about the command and control instruments that require consumer and innovator to obey the environmental standards. To achieve the green innovation is not easy as the barriers exist. The type of barriers towards green innovation are economic, technological and institutional barrier. To overcome this kind of barriers, the strategies for green innovation were identified. These strategies are niche, endorsement and partnership strategy. Coca-Cola and Heinz are the good example of partner which they develop PlantBottle

Chapter 14 discuss about National Innovation System (NIS). The system of innovation can be divided into three categories which are national, regional and sector innovation system. The national innovation system refer to the country specific system such as UK and Japan, regional innovation system is system of innovation based on the specific location or place while sector innovation system applied in specific industry such as aerospace industries and pharmaceutical. This innovation system will involved many firms such as government, financial institutions, industry etc. This chapter also compare Japan and Union of Soviet Socialist Republic (USSR) regarding their NIS. The elements that were compared and discussed are the GNP ratio, proportion of military and R&D at firm levels, experience of competition in international market etc. Both of these countries have their own pro and cons on their NIS.

SITI NUR FATHIMAH BT ABDUL MUTALIB (E16A0268)
SITI NUR FATHIMAH BT ABDUL MUTALIB (E16A0268)
Chapter 12
This chapter referring to a site way in which some innovation-related activities are carried out by the third parties that located overseas. It involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties. Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology.In addition to this, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.
 
Chapter 13
Green technology is divided into three types which are components, sub-systems and systems. The term green innovation is ecological innovation, environmental innovation, sustainable innovation and green innovation. There are three green technology drivers. First is push technology (technological advances related to material efficiency, energy efficiency and product quality improvement), market attraction (market-related sources of consumer groups such as green ideals and trend determinants) and regulation. There are order and control instruments and market-based instruments. Some of the obstacles to green innovation are external technology and external environment. There are three types of barriers that constitute economic barriers, technology barriers and institutional barriers. Some of the strategies for green innovation are the niche strategy (Volvo Bus), support strategy (Hollywood and Toyota Prius) and finally the sharing strategy (Coca-Cola).
 
Chapter 14
National innovation system based on Britain’s record is not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. The systems of innovation are national innovation systems, regional innovation systems and sector innovation system. The firms are government, science and technology institutional, educational institutional, industry and financial institutions. 
 
NURAMIRAH BINTI MAT ZAIN (E16A0204)
NURAMIRAH BINTI MAT ZAIN (E16A0204)
Chapter 12 : Innovation offshoring

Definition: refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation: key factor behind innovation offshoring

Transaction costs involves searching, negotiating, enforcing and agreements and contracts in a world of imperfect information.

Types of transaction costs:
•	Coordination costs
•	Opportunism costs

Reduce in transaction cost encourages :
1. Outsourcing (organisation re-structuring where increasingly supply/value chain activities are carried out by third parties)
2. Offshoring (the geographical re-location of the supply/value chain overseas)

Factors encouraging Innovation Offshoring:
•	Improve technological linkages
•	Growth of market for technology
•	Growth of high tech clusters in Asia
•	Growth of expertise & capability overseas

Enabler facilitating innovations offshore:
•	Changes in Corporate Innovation Management
•	Increased specialisation through modularisation
•	Increased availability and mobility of knowledge 
•	Globalisation of markets for technology


Chapter 13: Green Innovation 

Types of green innovation:
•	Component
•	Sub-system/modular
•	System

Terminology:
•	Eco-innovation/Ecological innovation
•	Environmental innovation
•	Sustainable innovation
•	Green innovation

Porter hypothesis:
“environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.”



Drivers of Green Innovation: 
- Technology push
•	Material efficiency
•	Energy efficiency
•	Improved product quality
- Regulatory push 
•	Command and control instruments
	Mandatory requirements regarding environmental standards
•	Market-based instruments
	Financial incentives/penalties  e.g. taxes, emission permits, subsidies, take-back schemes, etc
- Market pull
•	‘Green idealists’
	moral, philosophical interests
•	‘Trend setters’
	‘image’, association interests

Barriers to Green Innovation:
•	Technological externalities 
	the problem appropriability
•	Environmental externalities
	unattributed external (social) costs that the polluter does not pay

Types of barriers:
•	Economic barriers
•	Technological barriers
•	Institutional barriers

Strategies for Green Innovation:
•	Niche strategy 
	Volvo bus
•	Endorsement strategy 
	Hollywood and the Toyota Prius
•	Partnership strategy
	Coca-Cola and Heinz and the development of the PlantBottle


Chapter 14: National Innovation System

Systems of innovation:
•	National innovation systems 
•	Regional innovation systems 
•	Sector innovation system 

Institution: 
•	Firms 
•	Government 
•	Financial institutions 
•	Industry 
•	Education institutions




NUR FARINA BT ROSLAN - E16A0178
NUR FARINA BT ROSLAN - E16A0178
 
chapter 12 - Innovation offshoring
 
Innovation offshoring way in which ‘some innovation-related activities are carried out by third parties located overseas’. 
1. the impact of globalization on transaction costs
Outsourcing - organization restructuring where increasingly supply value chain activities are carried out by third parties.
Offshoring- the geographical re location of the supply or value chain.
 
2. Differentiate between outsourcing and offshoring
Outsourcing | Offshoring
obtaining certain services or products from a third party company  | obtaining services or products from another country 
some services or products can be obtained for a far lower price while obtaining the same level of quality.   | able to produce goods or have services provided in a far cheaper country 
Some business processes or products are very specialized and outsourcing to another provider provides access to higher quality  | a company may choose to offshore and ultimately retain full control and responsibility. 
outsourcing provides the benefit of only having to pay for precisely what you need.  | many loopholes in tax and tariff regimes in many countries that can allow companies to generate great savings and import products for use relatively cheaply.
 
 
3. factors that have led to the increased mobility of research and development (R&D)
 
R&D efforts by countries may shape bilateral scientist mobility and collaboration flows as the highly skilled seek new opportunities to work with peers in other economies dedicating substantial resources to scientific research. Data on gross domestic expenditures on R&D (GERD) as a percentage of gross domestic product (GDP) were obtained from the OECD Main Science and Technology Indicators and the UNESCO Institute for Statistics (UIS) R&D databases. We have extracted this indicator for 152 countries to investigate the degree to which scientist mobility and collaboration between two countries are related to the R&D intensity in the receiving (or sending) country and differences in the relative R&D intensity ratio of origin versus destination country over time.
 
 
4. Distinguish between global innovation networks and global production network
Global innovation network is “collaborations and interactions between different firms and organizations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. EU (2010) while Global production network is a concept in developmental literature which refers to "the nexus of interconnected functions, operations and transactions through which a specific product or service is produced, distributed and consumed.
 
chapter 13- Green innovation
 
ü Nature of green innovation
Green innovation is the creation or implementation of new, or significantly improved, products (goods and services), processes, marketing methods, organisational structures and institutional arrangements which – with or without intent – lead to environmental improvements compared to relevant alternatives’ (OECD, 2009)
 
ü Factors that drive green innovation
a) Technology push
-product quality
-material efficiency
-energy efficiency
-product palette
 
b) Regulatory push
-existing environment
-legislation
-standards
-future regulation
 
c) market pull
-market share
-competition
-customer demand
-new markets
-images
 
ü the barriers that deter the adoption and diffusion of green innovation
Technological externalities - the problem appropriability
Environmental externalities - unattributed external costs that the polluter does not pay
 
ü the business strategies that can be employed when launching green innovations.
Niche strategy - volvo bus
Endorsement strategy- Holywood and the toyota prius
Partnership strategy- coca cola and heinz and the development of plant bottle
 
chapter 14 - National innovation system
 
There are three types in systems of innovation such as national innovation system such as a country spesific system such as the national innovation system of the UK or Japan. Next is, regional innovation system such as an innovation based on a spesific location or place such as silicon valley in california or motor sport valley in oxfordshire. Thirdly is, sector innovation system such as an industry spesific innovation system such as those pharmaceutical or aerospace industries.
 
 
 
 
 
 
 
 
 

SITI NUR FAIQAH E16a0267
SITI NUR FAIQAH E16a0267
Chapter 12 Innovation offshoring

Definition 
Refer to the way in which some innovation related activities are carried out by third parties located overseas.

Globalisation
It is a key factor behind the growth of innovation offshoring. It come because of lowering of transaction cost

Transaction cost
It is refering to the cost of searching,negotiating, enforcing and agreements & contravts in world of imperfect information. There two types which are coordination cost and opportunism cost.

Impact of Globalisation and Transaction cost
Reduction intransaftion costs encouraged offshoring and outsourcing

Factors encouraging innovation offshoring
Improve technological linkages, growth of market technology, growth of expertise and capability overseas and growth of high tech clusters in Asia

Enablers facillitating innovation management
Change im corporate innovation management, increased specialisation through modularisation, increased availability and mobility of knowledge and globalisation of markets for technology

Features of global innovation network
Structure,linkages, geography, hi tech sectors, governance and collaborative nature

Chapter 13 Green Innovation

Types of green innovation
components, sub system and system

Terminology green innovation
Eco innovational, environmental innovation, sustainable innovation and green innovation

Drivers of green innovation
Technology push, regulatory push and market pull

Barris to green innovation
Technological externalities and environmental enxternalities

Types of barriers
Economic, technological and institutional barriers

Strategies for green innovation
Niche, endorsement and partnership strategy

Chapter 14 National innovation system

System of innovation
National,regional and sector innovation system

Role of institute
Goverment, science and technology, educational, industry and financial institute


NURUL HUDA NAJHAH BINTI ZULKEFLI (E16A0225
NURUL HUDA NAJHAH BINTI ZULKEFLI (E16A0225
C12:INNOVATION OFFSHORING
1)DEFINITION
=refers to the way in which 'some innovation-related activities are carried out by third-parties located oversea'

2)GLOBALISATION & TRANSACTION COSTS

Globalisation=key factor behind the growth of innovation offshoring

Transaction costs are the costs of
-searching
-enforcing
-agreements&contracts in a world of imperfect information 
-negotiating

3)TYPES OF TRANSACTION COSTS
-coordiantion costs
-opportunism costs

4)IMPACTS OF GLOBALISATION&TRANSACTION COSTS
-outsourcing
-offshoring

5)FACTORS ENCOURAGING INNOVATION OFFSHORING
-improved technology linkages
-growth of markets for technology
-growth of high tech clusters in Asia
-growth of expertise and capability overseas

6)ENABLERS FACILITATING INNOVATION NETWORKS
-structures
-linkages
-geography
-Hi-tech sectors
-governance
-collaborative future

C13:GREEN INNOVATION

1)TYPES OF GREEN INNOVATION
-components
-sub-system/modular
-system

2)TERMINOLOGY OF GREEN INNOVATION
-eco-innovation
-environmental innovation
-sustainable innovation
-green innovation

THE PORTER'S HYPOTHESIS
"environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production,"

3)DRIVERS OF GREEN INNOVATION
-technology push
-regulatory push
-market pull

4)BARRIERS OF GREEN INNOVATION
-technological externalities
-environmental externalities

types of barriers-economic
                             -technological
                            -institutional

5)STRATEGIES FOR GREEN INNOVATION
-niche strategy
-endorsement strategy
-partnership strategy

C14=NATIONAL INNOVATION SYSTEMS

BRITAIN'S EARLY RECORD OF INNOVATION
"...not just a succession of remarkable inventions in the textiles and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space
          
                                    C.Freeman (1987)
Systems of innovation
-national innovation systems
-regional innovation systems
-sector innovation systems




ROSE NADIAH BINTI ABU HASAN (E16A0245]
ROSE NADIAH BINTI ABU HASAN (E16A0245]
CHAPTER 12: INNOVATION OFFSHORING

Definition: it refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’.

Globalisation: key factor behind the growth
Transaction costs: searching, negotiating, enforcing and agreements and contracts (coordination costs & opportunism cost)

The Impacts of Globalisation and Transaction costs:
•	Outsourcing: organisation re-structure where increasingly supply/value chain activities by third parties
•	Offshoring: geographical re-location of the supply/value chain overseas

Factors Encourage Offshoring:
•	Improved technological linkages
•	Growth of markets for technology
•	Growth of expertise and capability overseas

Enablers Facilitating Offshoring:
•	Changes in corporate innovation management
•	Increased specialisation through modularisation
•	Globalisation of markets for technology

Global Innovation Networks: collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities (structure, linkage, geography, hi-tech sector, governance and collaborative nature)


CHAPTER 13: GREEN INNOVATION 

Types: 
•	Component
•	Sub-system/modular
•	System

Terminalogy:
•	Eco-innovation 
•	Environmental innovation 
•	Sustainable innovation 
•	Green innovation 

Drivers of Green Innovation:
1.	Technology push
•	 Material efficiency 
•	Energy efficiency 
•	Improved product quality

2.	Market pull
•	Market share
•	Competition 
•	Customer demand
•	New markets
•	Image

3.	Regulatory push
•	Existing environment 
•	Legislation 
•	Standards
•	Future regulations 

Barriers: (technological & environmental externalities)
•	Economic 
•	Technological 
•	Institutional

Strategies:
•	Niche 
•	Endorsement 
•	Partnership 

 
CHAPTER 14: NATIONAL INNOVATION SYSTEM 

System of Innovations:
•	National innovation systems
•	Regional innovation system 
•	Sector innovation system 

Institutions:
I.	Firms
II.	Government 
III.	Financial institutions 
IV.	Industry 
V.	Education institutions 
VI.	Science & technology 

SITI FADZLIANA BINTI MOHD FADZIL (E16A0261)
SITI FADZLIANA BINTI MOHD FADZIL (E16A0261)
CHAPTER 12: INNOVATION OFFSHORING

=some innovation-related activities are carried out by third parties located overseas.
Impact of Globalisation on Transaction costs
1. faster growth rate of international trade in relation to production
2. the emergence of genuine competition from emerging nations of Asia and latin America.
3. increased mobility of capital
4. rapid internationalization of financial market continues. Note how government of Jamaica has been able to borrow on the international markets. This may impact on exchange rate and interest rates locally.             
Differentiate and distinguish between outsourcing and offshoring;
Reductions in transaction costs have encouraged the outsourcing like organisation re-structuring where increasingly supply/value chain activities are carried out by third parties. Besides, offshoring which is the geographical re-location of the supply/value chain overseas.
Appreciate and understand the concept of innovation offshoring; 
Offshoring began with the movement of production activities overseas. That mainly in search of lower costs, led to creation of Global Production Networks, R & D, Latterly begun to see R & D moving offshore and hence Innovation Offshoring.
Distinguish between global innovation networks and global production networks;
Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. 
Global production network is one whose interconnected nodes and links extend spatially across national boundaries and, in so doing, integrates parts of disparate national and subnational territories.

CHAPTER 13: GREEN INNOVATION

green innovation, Design is pushing the progress of mankind and caring the relationship between man and nature and creating a reasonable way of life. According to history, the choice of green design is inevitable, only green design can achieve the harmony of natural environment, social culture, and economic development, therefore, the development of green design is essential.
Type of green innovation
The driver of the green innovation is by technology push like the technological become advances that associated with, Material efficiency, Energy efficiency and Improved product quality. Besides, regulatory push like existing environment legislation, standard and future regulation. Moreover, market pull. Market pull included with market share, competition with other entrepreneur, customer demand, new market and the changes of image associated with groups of consumers such as Green idealists and Trend setters.
the barriers green innovation
there 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers.

CHAPTER 14: NATIONAL INNOVATION SYSTEMS

Introduction The concept of institution-used in a very comprehensive sense-plays a key role in all definitions of Innovation Systems. The main purpose of this study is to address the main elements of National Innovation Systems from an Institutional framework. The main components of the NIS, how the organizations and institutions are defined, and what functions do they have, and why a NIS differs on the structure and setting of these components are the questions aimed to be answered. Therefore, a brief explanation of the definition, concept and emergence of NIS were conducted. The main objective of this analysis is to understand how and why the institutional settings and organizational structures explain the main characteristics of NIS.
Dimensions of Systems Approach is System boundaries, Organization, Institutions, Knowledge, Dynamics, Outcome / performance and Methodology. Institutions are sets of common habits, routines, established practices, rules, or laws that regulate the relations and interactions between individuals, groups and organisations. They are the rules of the game. Examples of important institutions in SIs are patent laws and norms influencing the relations between universities and Firms. While Organizations are formal structures with an explicit purpose and they are consciously created. They are players or actors. Some important organisations in SIs are companies (which can be suppliers, customers or competitors in relation to other companies), universities, venture capital organisations and public innovation policy agencies.

AN NURAINEE BT JAIS (E16A0024
AN NURAINEE BT JAIS (E16A0024
CHAPTER 12 INNOVATION OFFSHORING 
Definition: 
Some innovation related activities are carried  out by third parties located overseas
 Globalisation 
- A key factor behind the growth of innovation offshoring
- Has come about because of the lowering of transaction costs
Transaction costs are the costs of : 
- Searching
- Negotiating
- Enforcing
- Agreements & contracts in a world of imperfect information
2 types of transaction costs
1) Coordination costs
2) Opportunism costs
Impact of Globalisation & Transaction costs
Reduction in transaction costs have encouraged : 
1) Outsourcing 
2) Offshoring
 (Industry sector led this process : textiles & electronics) 
Factors encouraging Innovation Offshoring
- Improve technological linkages
- Growth of market for technology
- Growth of high tech clusters in Asia
- Growth of expertise & capability overseas
Enablers facilitating Innovation Offshoring 
- Change in Corporate Innovation Management 
- Increased specialisation through modularisation 
- Increased availability & mobility of knowledge
- Globalisation of markets for technology 
Modularisation 
- Modular product architecture 
- Result in interchangeable modules
- Allow outside firms give responsibility for design/development 
Global Innovation Networks : 
Collaboration & interaction between different firms & organisations producing & exploiting new knowledge in a global scale for purposes of fostering innovation activities (EU, 2010)
Features of Global Innovation Network 
- Structure 
- Linkages
- Geography
- Hi tech sectors
- Governance
- Collaborative nature 

CHAPTER 13 GREEN INNOVATION 
Types of Green Innovation 
- Component 
- Sub system/modular
- System
Terminology green innovation 
- Eco innovational
- Environmental innovation 
- Sustainable innovation 
- Green innovation
Drivers of Green Innovation 
- Technology push 
- Regulatory push 
- Market pull
Barriers to Green Innovation
- Technological externalities 
- Environmental externalities
Types of barriers 
- Economic barriers
- Technological barriers
- Institutional barriers
Strategies for Green Innovation 
- Niche strategy
- Endorsement strategy 
- Partnership strategy 

CHAPTER 14 NATIONAL INNOVATION SYSTEMS
Systems of innovation 
- National innovation systems
- Regional innovation systems
- Sector innovation system
Institutions 
- Financial institutions 
- Industry 
- Educational institutions 
- Science & technology institutions 
(All institutional relate to government & firms



SHARMIN BT MUHAMMAD HISYAM (E16A0254
SHARMIN BT MUHAMMAD HISYAM (E16A0254
NADIAH BT AHMAD FIKRI (316A0125
NADIAH BT AHMAD FIKRI (316A0125
Chapter 12 discussed on Innovation Offshoring topic. It is a site way in which some innovation-related activities are carried out by the third parties that located overseas.  Innovation offshoring involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology. Other than that, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.


Chapter 13 discussed on green innovation topic. Green innovation which also called eco-innovation is the innovation that consists of new or modified products, processes, techniques, practices, organizations, markets and systems to avoid or reduce environmental harms. Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of product quality, material and energy efficiency and the product palette. Meanwhile the regulatory push involves the existing environment, legislation according to the Act, standards and the may be the future regulation. Market pull comprises of the market share, competition by other company, customer demand and also new markets. Thus, strategies is important to develop the eco-innovation in order to undergo the hurdles. The strategies include the niche strategies, endorsement strategies and also the partnership strategies. 


Chapter 14 discussed on National Innovation Systems topic. Basically the systems of innovation comprises of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on actors not directly involved in innovation activities. The key variables are the actor constellations and their modes of coordination that characterize the regional innovation system. Last but not least, sector innovation system which is based on knowledge and technologies, actors and networks and institutions. Sector innovation system have a knowledge base, technologies, inputs and a potential demand. They are composed of a set of agents carrying out market and non-market interactions for the creation, development and diffusion of new sectoral products.
SHAFIQAH SYAHIRAH BINTI MOHAMMAD ZAKARIA(E16A0251)
SHAFIQAH SYAHIRAH BINTI MOHAMMAD ZAKARIA(E16A0251)
Asalamualaikum and Hello Everybody
Asalamualaikum and Hello Everybody

Please do some summary for Chapter 12,13 and 14 base on your owned words and understanding. 

The summary not exceed then 400 words. 

Last submission on this Thursday  7 Jun 2018. Before 11.59 pm. 
WALLACE LEE TIAN ZHU (E16A0297)
WALLACE LEE TIAN ZHU (E16A0297)
Chapter 12: Innovation offshoring
Definition:
refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’
Globalisation
- lowering the transaction costs(searching, negotiating and enforcing etc.)
Types of transaction costs
- Coordination costs
- Opportunism costs
Reduction in transaction costs has encouraged:
- Outsourcing
- Offshoring
Offshoring:
- Began with the movement of production activities overseas
- Mainly in search of lower costs
e.g. textiles and electronics
Factors encouraging Innovation Offshoring
- Improved technological linkages
i.e. electronification
- Growth of markets for technology
- Growth of high tech clusters in Asia 
- Growth of expertise and capability overseas
i.e. through technological catch-up and upgrading
Modularisation
- Facilitates ‘de-coupling’ in the production of different modules
Global Innovation Networks
- collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Chapter 13: Green Innovation
Types of Green Innovation
•Component
•Sub-system/modular
•System
Terminology of Green Innovation
•Eco-innovation/Ecological innovation
•Environmental innovation
•Sustainable innovation
•Green innovation
The Porter Hypothesis
- Environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production
Technology push
Technological advances associated with:
•Material efficiency
•Energy efficiency
•Improved product quality
Barriers to green innovation
The ‘double’ hurdle:
•Technological externalities
i.e. the problem appropriability
•Environmental externalities
i.e. unattributed external (social) costs that the polluter does not pay
Strategies for Green Innovation 
•Niche strategy
•e.g. Volvo Bus
•Endorsement strategy
•e.g. Hollywood and the Toyota Prius
•Partnership strategy
•Coca-Cola and Heinz and the development of the PlantBottleÔ

Chapter 14: National Innovation Systems
Systems of innovation
•National innovation systems
i.e. a country specific system such as the national innovation system of the UK or Japan
•Regional innovation systems
i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire
•Sector innovation system
i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries
LEE SHI QING E16A0073
LEE SHI QING E16A0073
Chapter 12 : Innovation Offshoring 
Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’ 
 
Globalisation & Transaction costs: 
Globalisation : 
-key factor behind the growth of innovation offshoring 
-come about because of the lowering of transaction costs 
 Transaction costs: 
-are the costs of: 
a)searching 
b)negotiating 
c)enforcing 
d)agreements and contracts in a world of imperfect information 
-2 types of transaction costs : 
a) Coordination costs 
b)Opportunism costs 
 
Impact of Globalisation and Transaction costs : 
-Reductions in transaction costs have encouraged: 
a)Outsourcing 
i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties 
b)Offshoring 
i.e. the geographical re-location of the supply/value chain overseas 
 
Offshoring: 
-Began with the movement of production activities overseas 
-Mainly in search of lower costs 
-Led to creation of Global Production Networks 
-R & D generally retained at home 
 
Factors encouraging Innovation Offshoring: 
-Improved technological linkages 
-Growth of markets for technology 
-Growth of high tech clusters in Asia 
-Growth of expertise and capability overseas 
 
 
Enablers facilitating Innovation Offshoring: 
-Changes in Corporate Innovation Management 
-Increased specialisation through modularisation 
-Increased availability and mobility of knowledge 
-Globalisation of markets for technology 
 
Modularisation: 
-Modular product architecture 
-Use of “de-composable building blocks” Ernst (2005) 
-Results in interchangeable modules 
-Facilitates ‘de-coupling’ in the production of different modules 
-Allows outside firms to be given responsibility for design/development of complete modules 
 
Global Innovation Networks : 
Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities 
Features of Global Innovation Networks : 
-Structure 
-Linkages 
-Geography 
-Hi-tech sectors 
-Governance 
-Collaborative nature 
 
Chapter 13 : Green Innovation 
Types : 
-Component 
-Sub-system/modular 
-System 
Terminology : 
-Eco-innovation/Ecological innovation 
-Environmental innovation 
-Sustainable innovation 
-Green innovation 
Drivers : 
a)Technology push: 
-Material efficiency 
-Energy efficiency 
-Improved product quality 
b)Market pull: 
-Green idealists 
-Trend setters 
c)Regulatory push: 
-Command and control instruments 
-Market-based instruments 
Barriers: 
-Technological externalities 
-Environmental externalities 
-Types of barrier: 
a)Economic barriers 
b)Technological barriers 
c)Institutional barriers 
Strategies : 
-Niche strategy 
-Endorsement strategy 
-Partnership strategy 
 
The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. 
 
Chapter 14: National Innovation Systems 
Systems of innovation : 
-National innovation systems 
-Regional innovation systems 
-Sector innovation system 
Institution : 
-Firms 
-Government 
-Financial institutions 
-Industry 
-Education institutions 
-Science and technology 
NUR ANIZA BINTI MOHMAD HANAN (E16A0171)
NUR ANIZA BINTI MOHMAD HANAN (E16A0171)
CHAPTER 12: INNOVATION OFFSHORING
 
Innovation offshoring is refers to the way in which is some innovation-related activities are carried out by third parties located overseas.  Offshoring activities usually at the lower costs such as textile sector that led to Global Production Networks which influence by some features which are structure linkages, geography, hi-tech sectors, governance and collaborative nature for example is Samsung. The factors that encourage innovation offshore are improved technological linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. It able facilitate by changes in Corporate Innovation Management, increased specialization through modulations, increased availability and mobility of knowledge and globalization of markets for technology. Next is globalization is due to lowering of transaction costs and transaction coats due to cost of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information with two type which are coordination cost and opportunism cost. This encourage to outsourcing and offshoring. Then s modulations that facilitates coupling in the production of different modules. 

CHAPTER 13: GREEN TECHNOLOGY
 
Green innovation differentiate with component, sub-system and system. The terminology of green innovation are Eco-innovation/Ecological innovation, Environmental innovation, Sustainable innovation and Green innovation. The drivers of green innovation are technology push that associated with material efficiency, energy efficiency and improved product quality, regulatory push associated with command and control instruments and markets-based instruments and lastly is market pull associated with green idealists and trend setters. The barriers to green innovation are technological externalizes and environmental externalizes and also with the type of barriers are economic, technological and institutional.  Lastly the strategies for green innovation are niche strategy, endorsement strategy and partnership strategy. 

CHAPTER 14: NATIONAL INNOVATION SYSTEM

National innovation system based on Britain’s record is Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. The systems of innovation are national innovation systems, regional innovation systems and sector innovation system. The firms are government, science and technology institutional, educational institutional, industry and financial institutions. 

# data[].attributes.body
Chapter 12 - Innovation Offshoring
Innovation offshoring refers to any innovation-related activities that are carried out by third-party companies located at overseas. Such strategy emerges with globalisation, and followed by lower transaction cost. Offshore innovation is used to obtain higher tech from other countries, improving technological linkages, and obtain expertise and capabilities in technology.

Chapter 13 - Green Innovations
Green innovation are any innovation-related activities that includes the consideration of environmental regulations or developments. The four terminologies that included in green innovation is eco-innovation, environmental innovation, sustainable innovation, and “green-innovation”. There are three types of green innovation which are component addition (negative impact minimisation, small change in system), sub-system change (eco-efficient), and system change ( max positive impact, radical system change, sustainable).

Chapter 14 - National Innovation Systems
National Innovation Systems is country specific instead of regional and sectorial. In national innovation system, the institutions included in the system is government, science & technology institutions, educational institutions, competitors & suppliers, and financial institutions. All of the institutions stated are related to the growth of innovations in a firm

# data[].attributes.body
Summary Chapter 12-14

Chapter 12

This chapter referring to a site way in which some innovation-related activities are carried out by the third parties that located overseas. It involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties. Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology.In addition to this, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.

Chapter 13

Green technology is divided into three types which are components, sub-systems and systems. The term green innovation is ecological innovation, environmental innovation, sustainable innovation and green innovation. There are three green technology drivers. First is push technology (technological advances related to material efficiency, energy efficiency and product quality improvement), market attraction (market-related sources of consumer groups such as green ideals and trend determinants) and regulation. There are order and control instruments and market-based instruments. Some of the obstacles to green innovation are external technology and external environment. There are three types of barriers that constitute economic barriers, technology barriers and institutional barriers. Some of the strategies for green innovation are the niche strategy (Volvo Bus), support strategy (Hollywood and Toyota Prius) and finally the sharing strategy (Coca-Cola).

Chapter 14

National innovation system based on Britain’s record is not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. The systems of innovation are national innovation systems, regional innovation systems and sector innovation system. The firms are government, science and technology institutional, educational institutional, industry and financial institutions.

# data[].attributes.body
CHAPTER 12

Innovation offshoring can be defined as a way in which some innovation-related activities are carried out by third parties located overseas. It grow through the factor of globalisationdue to lower transaction costs which include searching, negotiating, enforcing, agreements and contracts. There are two types of transaction costs which are coordination and opportunism costs. Through globalisation and transaction costs, it have encouraged and outsourcing by re-structuring of organization and offshoring by geographical relocation of the supply. Innovation offshoring is driven by the improvement of technology linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is the collaborations and interactions between different firms and organizations producing an exploiting new knowledge in a global scale for purposes of fostering innovation activities. It features structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

Chapter 13 : Green Innovation

Types of green innovation :

components, sub system and system

Terminology green innovation :

Eco innovational, environmental innovation, sustainable innovation and green innovation

Drivers of green innovation :

Technology push, regulatory push and market pull

Barris to green innovation :

Technological externalities and environmental enxternalities

Types of barriers :

Economic, technological and institutional barriers

Strategies for green innovation:

Niche, endorsement and partnership strategy

Chapter 14 - National Innovation Systems

National Innovation Systems is country specific instead of regional and sectorial. In national innovation system, the institutions included in the system is government, science & technology institutions, educational institutions, competitors & suppliers, and financial institutions. All of the institutions stated are related to the growth of innovations in a firm

# data[].attributes.body
Summary CH 12 - CH 14
Chapter 12: Innovation offshoring
Definition:
refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’
Globalisation
- lowering the transaction costs(searching, negotiating and enforcing etc.)
Types of transaction costs
- Coordination costs
- Opportunism costs
Reduction in transaction costs has encouraged:
- Outsourcing
- Offshoring
Offshoring:
- Began with the movement of production activities overseas

- Mainly in search of lower costs

e.g. textiles and electronics
Factors encouraging Innovation Offshoring
- Improved technological linkages

i.e. electronification

- Growth of markets for technology

- Growth of high tech clusters in Asia

- Growth of expertise and capability overseas

i.e. through technological catch-up and upgrading
Modularisation
- Facilitates ‘de-coupling’ in the production of different modules
Global Innovation Networks
- collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Chapter 13: Green Innovation
Types of Green Innovation
•Component

•Sub-system/modular

•System
Terminology of Green Innovation
•Eco-innovation/Ecological innovation

•Environmental innovation

•Sustainable innovation

•Green innovation
The Porter Hypothesis
- Environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production
Technology push
Technological advances associated with:

•Material efficiency

•Energy efficiency

•Improved product quality
Barriers to green innovation
The ‘double’ hurdle:

•Technological externalities

i.e. the problem appropriability

•Environmental externalities

i.e. unattributed external (social) costs that the polluter does not pay
Strategies for Green Innovation
•Niche strategy

•e.g. Volvo Bus

•Endorsement strategy

•e.g. Hollywood and the Toyota Prius

•Partnership strategy

•Coca-Cola and Heinz and the development of the PlantBottleÔ

Chapter 14: National Innovation Systems
Systems of innovation
•National innovation systems

i.e. a country specific system such as the national innovation system of the UK or Japan

•Regional innovation systems

i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

•Sector innovation system

i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

# data[].attributes.headline
NOR HIDAYU BINTI MAZRI E16A0144                                                        CHAPTER 12          (INNOVATION OFFSHORING)                                        Offshoring is broadly defined as a firm’s allocation of business activities to another country, either by obtaining goods and services from an unaffiliated foreign company or by investing in a foreign affiliate or joint venture. Traditionally the offshoring phenomenon has involved manufacturing activities and more recently administrative and technical services as well advanced services and R&D-related functions. Different streams of literature have analyzed offshoring looking at both the determinants of firms’ engagement in international production, and the effects of such activities in the home and host countries. It is relatively safe to say that empirical evidence on the determinants of offshoring is richer than studies on the effects.                                      CHAPTER 13 (GREEN INNOVATION)                    Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Increasing concern about the future sustainability of economic growth patterns underpin the demand for a greener model of growth. Existing production technology and consumer behaviour can only be expected to produce positive outcomes up to a point; a frontier, beyond which depleting natural capital has negative consequences for overall growth. By pushing the frontier outward, innovation can help to decouple growth from natural capital depletion. Innovation and the related process of creative destruction will also lead to new ideas, new entrepreneurs and new business models, thus contributing to the establishment of new markets and eventually to the creation of new jobs. Green innovation is therefore the key in enabling environmentally sustainable growth.                                       CHAPTER 14 (NATIONAL INNOVATION)                        The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.

# data[].attributes.subject
NOR HIDAYU BINTI MAZRI E16A0144                                                        CHAPTER 12          (INNOVATION OFFSHORING)                                        Offshoring is broadly defined as a firm’s allocation of business activities to another country, either by obtaining goods and services from an unaffiliated foreign company or by investing in a foreign affiliate or joint venture. Traditionally the offshoring phenomenon has involved manufacturing activities and more recently administrative and technical services as well advanced services and R&D-related functions. Different streams of literature have analyzed offshoring looking at both the determinants of firms’ engagement in international production, and the effects of such activities in the home and host countries. It is relatively safe to say that empirical evidence on the determinants of offshoring is richer than studies on the effects.                                      CHAPTER 13 (GREEN INNOVATION)                    Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Increasing concern about the future sustainability of economic growth patterns underpin the demand for a greener model of growth. Existing production technology and consumer behaviour can only be expected to produce positive outcomes up to a point; a frontier, beyond which depleting natural capital has negative consequences for overall growth. By pushing the frontier outward, innovation can help to decouple growth from natural capital depletion. Innovation and the related process of creative destruction will also lead to new ideas, new entrepreneurs and new business models, thus contributing to the establishment of new markets and eventually to the creation of new jobs. Green innovation is therefore the key in enabling environmentally sustainable growth.                                       CHAPTER 14 (NATIONAL INNOVATION)                        The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.

# data[].attributes.headline
NURUL AINA HALIMAH BINTI ABDUL RAHIME16A0214

# data[].attributes.subject
NURUL AINA HALIMAH BINTI ABDUL RAHIME16A0214

# data[].attributes.body
CHAPTER 12 INNOVATION OFFSHORING

Innovation offshoring refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’. Transaction costs are the cost of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. The reductions in transaction costs have encouraged outsourcing.  Outsourcing which the organisation re-structuring where increasingly supply/value chain activities are carried out by third parties. Offshoring is the geographical re-location of the supply/value chain overseas. There are few factors encouraging innovation offshoring which is improved technological linkages, growth of markets for technology. Growth of high tech clusters in Asia and growth of expertise and capability overseas. Enablers facilitating innovation offshoring by changes in corporate innovation management which shorter lead times, increased development of multi-technology products, increased specialisation and mobility of knowledge and glovalisation of markets for technology. the last one is, modularisation. Modular product architecture, use of “de-composable building blocks” Ernst (2005), results in interchangeable modules, facilitates ‘de-coupling’ in the production of different modules and allows outside firms to be given responsibility for design/development of complete modules.

CHAPTER 13 GREEN INNOVATIONS

There are 3 types of green innovation which are component, sub-system/modular and system. The terminology of green innovation is eco-innovation/ecological innovation, environment innovation, sustainable innovation and green innovation. The porter hypothesis said that “environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production”. The technology push is the technology advances that associated with material efficiency, energy efficiency and improved product quality.  Market pull associated with groups of consumer such as green idealists for example moral, philosophical interests. Next, in green innovation there is trend setters for example image, association interests. Command and control instruments such as mandatory requirements regarding environment standards are the example of regulatory push. Financial incentives/penalties as taxes, emission permits, subsidies, take-back schemes is the example for market-base instruments. There are barriers to green innovation which is the double hurdle as technology externalities and the problem appropriability. Next the environment externalities as unattributed external (social) costs that the pollute does not pay. The strategies for green innovation is niches strategy as Volvo Bus, endorsement strategy such as Hollywood and the Toyota Prius an partnership strategy such as Coca-Cola and Heinz and the development of the Plant Bottle.

CHAPTER 14 NATIONAL INNOVATION SYSTEMS

Britain’s early record of innovation said that“…. Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.” There are three types of systems of innovations which are national innovation systems as country specific system such as the national innovation system of the UK or Japan, regional innovation systems such an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire and the sector innovation system such as an industry specific innovation system such as those of the pharmaceutical or aerospace industries.

•

# data[].attributes.body
Chapter 12: innovation offshoring

Innovation offshoring means way in which some innovation-related activities are carried out by third parties located overseas. Innovation offshoring involves the globalisation and transaction costs which is related to each other. Globalisation is a key factor behind the growth this innovation and globalisation come about because lowering of transaction costs. Transaction costs refer to the costs of searching, negotiating, enforcing and agreements and contracts. There are two main impact of the reduction in transaction impact which is outsourcing and offshoring. Example of outsourcing is organisation re-structure where increasingly supply/value chain activities by third parties and Offshoring refer to geographical re-location of the supply/value chain overseas. Innovation offshoring is encourage due to several factor which is to growth of markets for technology, high tech clusters in Asia and to improve technological linkages. Besides, changes in corporate innovation management can be enablers in facilitating offshoring. Then, Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities.

Chapter 13 (green innovation)

In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies.

Chapter 14 (national innovation systems)

In this chapter,  from the Britain’s early record of innovation said that national innovation system is not just   a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. This system of innovation includes of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. For example, a country specific system such as the innovation system of the UK or Japan. Then, the regional innovation system is based on specific location or place such as Silicon Valley in California. Lastly, sector innovation system which is based on knowledge and technologies, actors and networks and institutions.  For example industry specific innovation system such as those of pharmaceutical or aerospace industries. This innovation system also involved many firms such as government, financial institution, industry etc.

# data[].attributes.body
Ainur Izzati Binti Bakar E16A0015

Chapter 12 : Innovation Offshoring

It refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation & Transaction costs:

Globalisation :

-key factor behind the growth of innovation offshoring

-come about because of the lowering of transaction costs

Transaction costs:

-are the costs of:

a)searching

b)negotiating

c)enforcing

d)agreements and contracts in a world of imperfect information

-2 types of transaction costs :

a) Coordination costs

b)Opportunism costs

Impact of Globalisation and Transaction costs :

-Reductions in transaction costs have encouraged:

a)Outsourcing

i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

b)Offshoring

i.e. the geographical re-location of the supply/value chain overseas

Offshoring:

-Began with the movement of production activities overseas

-Mainly in search of lower costs

-Led to creation of Global Production Networks

-R & D generally retained at home

Factors encouraging Innovation Offshoring:

-Improved technological linkages

-Growth of markets for technology

-Growth of high tech clusters in Asia

-Growth of expertise and capability overseas

Enablers facilitating Innovation Offshoring:

-Changes in Corporate Innovation Management

-Increased specialisation through modularisation

-Increased availability and mobility of knowledge

-Globalisation of markets for technology

Modularisation:

-Modular product architecture

-Use of “de-composable building blocks” Ernst (2005)

-Results in interchangeable modules

-Facilitates ‘de-coupling’ in the production of different modules

-Allows outside firms to be given responsibility for design/development of complete modules

Global Innovation Networks :

Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities

Features of Global Innovation Networks :

-Structure

-Linkages

-Geography

-Hi-tech sectors

-Governance

-Collaborative nature

Chapter 13 : Green Innovation

Types :

-Component

-Sub-system/modular

-System

Terminology :

-Eco-innovation/Ecological innovation

-Environmental innovation

-Sustainable innovation

-Green innovation

Drivers :

a)Technology push:

-Material efficiency

-Energy efficiency

-Improved product quality

b)Market pull:

-Green idealists

-Trend setters

c)Regulatory push:

-Command and control instruments

-Market-based instruments

Barriers:

-Technological externalities

-Environmental externalities

-Types of barrier:

a)Economic barriers

b)Technological barriers

c)Institutional barriers

Strategies :

-Niche strategy

-Endorsement strategy

-Partnership strategy

The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.

Chapter 14: National Innovation Systems

Systems of innovation :

-National innovation systems

-Regional innovation systems

-Sector innovation system

Institution :

-Firms

-Government

-Financial institutions

-Industry

-Education institutions

# data[].attributes.headline
NUR FATHIN AFIFAH BT. MAH HASSAN  (E16B0179)

# data[].attributes.subject
NUR FATHIN AFIFAH BT. MAH HASSAN  (E16B0179)

# data[].attributes.body
CHAPTER 12
Innovation offshoring refer to the way in which ‘some innovation-related activities are carried out by third parties located overseas’. Globalization is a key factor behind the growth of innovation offshoring because of the lowering of transaction costs. This encourage outsourcing and offshoring. The factor of encourage offshoring is the development the technology and activity related to its. The feature of global innovation network are structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

CHAPTER 13
Green innovation known as eco-innovation/Ecological innovation, environmental innovation and sustainable innovation. Green innovation divided into component, sub-system/modular and system. Technology push, regulatory push and market pull are the drivers of green innovation. However, technological externalities like the problem appropriability and environmental externalities are the barrier to green innovation. Besides, there are also barrier in term of economic barriers, technological barriers and institutional barriers. Therefore, the strategies for green innovation that are niche strategy, endorsement strategy and partnership strategy.

CHAPTER 14
The system of innovation are national innovation systems, regional innovation systems and sector innovation system. National innovation systems is a country specific system such as the national innovation system of the UK or Japan. While regional innovation systems is an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxford shire and sector innovation system is an industry specific innovation system such as those of the pharmaceutical or aerospace industries.

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Nur ain aiman binti abd rahim
E16a0161
CHAPTER 12

Innovation offshoring can be defined as a way in which some innovation-related activities are carried out by third parties located overseas. It grow through the factor of globalisationdue to lower transaction costs which include searching, negotiating, enforcing, agreements and contracts. There are two types of transaction costs which are coordination and opportunism costs. Through globalisation and transaction costs, it have encouraged and outsourcing by re-structuring of organization and offshoring by geographical relocation of the supply. Innovation offshoring is driven by the improvement of technology linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is the collaborations and interactions between different firms and organizations producing an exploiting new knowledge in a global scale for purposes of fostering innovation activities. It features structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

CHAPTER 13

This chapter have indicates that green technology which means the innovation with concepts of environmental and sustainable innovation such as products with eco-friendly.  There are three types of green innovation which are component, modular and system. Besides, there are three of drivers of green innovation which are technology push that relate to the energy efficiency and improvement of product quality. Then, market pull that associate with groups of consumer such as green idealist and trend setters. Third, regulatory push which means the control of instruments regarding to environmental standards and also market-based instruments.

CHAPTER 14

There are three types of system of innovation which are national, regional and sector innovation systems. National innovation systems involved a specific system of a country such as United Kingdom and Japan while regional innovation systems is an innovation based on a specific location such as Silicon Valley in California or Motor Sport Valley in Oxfordshire.As for sector innovation system, it involved an industry th The national innovations system approach stresses that the flows of technology and information among people, enterprise, and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on at have specific innovation system such as industry of pharmaceutical or aerospace.

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Chapter 12( Innovation Offshoring)

refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

•Globalisation has come about because of the lowering of transaction costs

•Transaction costs are the costs of:

•searching

•negotiating

•enforcing

•agreements and contracts in a world of imperfect information

Factors encouraging Innovation Offshoring
- Improved technological linkages.
- Growth of markets for technology

- Growth of high tech clusters in Asia

- Growth of expertise and capability overseas

Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Chapter 13 (Green Innovation)

Types of green innovation:
-Component
-Sub-system
-system

Types of barrier:
-Economic barriers
-Technological barriers
-Institutional barriers

Chapter 14 (National innovation systems)

Britain's early record of innovation :
- Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.

Systems of innovation:
-National innovation systems.
- Regional innovation systems.
- Sector innovation system.

# data[].attributes.body
Chapter 12 (Innovation Offshoring)
- Definition:
refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’
- Globalisation & Transaction costs
•Globalisation is a key factor behind the growth of innovation offshoring and it has come about because of the lowering of transaction costs

•Transaction costs are the costs of:

•searching

•negotiating

•enforcing

•agreements and contracts in a world of imperfect information

- 2 types of transaction costs
•Coordination costs

•Opportunism costs
- Impact of Globalisation and Transaction costs
1.Outsourcing

2.Offshoring
- Offshoring
•Began with the movement of production activities overseas
•Mainly in search of lower costs

•Led to creation of Global Production Networks

•R & D (i.e. innovation) generally retained at home

•Latterly begun to see R & D moving offshore

- Factors encouraging Innovation Offshoring
•Growth of markets for technology

•Growth of high tech clusters in Asia

•Growth of expertise and capability overseas
- Enablers facilitating Innovation Offshoring
•Increased specialisation through modularisation

•Increased availability and mobility of knowledge
- Modularisation

•Results in interchangeable modules

•Facilitates ‘de-coupling’ in the production of different modules
•Modular product architecture
- Features of Global Innovation Networks
•Structure

•Linkages

•Geography

•Hi-tech sectors

•Governance

•Collaborative nature

Chapter 13 (Green Innovation)
- Types of Green Innovation
•Component

•Sub-system/modular

•System
- Terminology of Green Innovation
•Eco-innovation/Ecological innovation

•Environmental innovation

•Sustainable innovation

•Green innovation

- Technology push
•Material efficiency

•Energy efficiency

•Improved product quality
- Market pull
•‘Green idealists’

•‘Trend setters’
- Regulatory push
•Command and control instruments

•Market-based instruments

- Barriers to green innovation
•Technological externalities

•Environmental externalities

- Types of barrier

•Economic barriers

•Technological barriers

•Institutional barriers
- Strategies for Green Innovation
•Niche strategy

•Endorsement strategy

•Partnership strategy

Chapter 14 (National Innovation Systems)
Particular nation utilize the National Innovation framework as their particular framework. Provincial advancement allude to particular area that utilization the framework while the segment development is the business that utilization the framework, for example, pharmaceutical and aviation. The 7 foundation (Government, science and innovation establishments, instructive organization, industry, money related establishments and firms) are identified with each other and are relying upon each other for the advancement development in national advancement framework.

# data[].attributes.headline
SAIDAH IZZATI BINTI MOHD SHARIFFUDDIN (E16A0246)

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SAIDAH IZZATI BINTI MOHD SHARIFFUDDIN (E16A0246)

# data[].attributes.body
Chapter 12

Innovation offshoring is the way in which ‘some innovation-related activities are carried out by third parties located overseas. The key factor of the growth of innovation offshoring is the globalisation because of lowering of transaction costs including searching, negotiating, enforcing and agreements and contract in a world of imperfect information.

There are 2 types of transaction costs

-         Coordination costs

-         Opportunism costs

The impact of globalisation and transaction costs have encouraged in outsourcing and offshoring. An organisation that reconstruct where increasingly supply chain activities are carried out by the third parties and the geographical relocated the supply chain overseas.

Offshoring begin with the movement of production activities overseas which mainly in search of lower cost of product that lead to the creation of Global Production Network.

A company are into the offshoring because they can improved their technological linkage, growth of market for technology, high tech clusters in Asia and expertise and capability overseas.

Chapter 13

There are 3 types of greenhouse innovation which include component, sub-system/modular and system. Green innovation or eco-innovation, environmental, sustainable or green innovation is the other term used for green innovation which give many positive impact to environmental and society. Green innovation happen because of three factor which is technology, regulatory and market pull.

To produce a product quality with efficient material and energy, entrepreneur are needed to go for green innovation because of technology push. The regulatory push in the existing environment and because of the standard that have been a base line of a product. Lastly, a market pull is a driver of green innovation where the customer demand that want an eco-friendly product and compete with their competitor. For technology push, it was associated with 3 technology advances which is material efficiency, energy efficiency and improved product quality.

However, it still have its barrier in green innovation which is known as double hurdle, which is technological externalities and environmental externalities. To go for eco-friendly entrepreneurship, also have its economic, technology and institutional barrier. Probably, there is still lack of technology that suite the economic demand.

Chapter 14

Specific country use the National Innovation system as their specific system. Regional innovation refer to specific location that use the system while the sector innovation is the industry that use the system such as pharmaceutical and aerospace. The 7 institution (Government, science & technology institutions, educational institution, industry, financial institutions and firms) are related to each other and are depending on each other for the innovation growth in national innovation system.

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HANIE 'AQILAH BINTI MOHD AZAMI (E16A0062)

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HANIE 'AQILAH BINTI MOHD AZAMI (E16A0062)

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Chapter 12: Innovation Offshoring

Definition:

-Refers to the way in which ‘some innovation-related activities carried out by third parties located overseas’

Globalisation & Transaction costs:

-Globalisation is key factor behind the growth of innovation offshoring that come about because of the lowering of transaction costs.

-Transaction costs are the costs of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information.

Type of transaction costs:

-Coordination costs & Opportunism costs

Impact of Globalisation and Transaction costs:

-Reduction in transaction costs have encouraged Outsourcing and Offshoring

Offshoring:

-Began with the movement production activities overseas

-Mainly in search of lower costs

-Led to creation of Global Production Networks

-R&D (innovation) generally retained at home

-Latterly begun to see R&D moving offshore

Factors encouraging Innovation Offshoring:

-Improved technological linkages

-Growth of markets for technology

-Growth of high tech clusters in Asia

-Growth of expertise and capability overseas

Enablers facilitating Innovation Offshoring:

-Changes in Corporate Innovation Management

-Increased specialisation through modularisation

-Increased availability mobility of knowledge

-Globalisation of markets for technology

-Global Innovation Networks:

-Collaboration and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities (EU,2010)

Features of Global Innovation Networks:

-Structure

-Linkages

-Geography

-Hi-tech sectors

-Governance

-Collaborative nature

Chapter 13: Green Innovation

Types of Green Innovation:

-Component

-Sub-system/modular

-System

Terminology of Green Innovation:

-Eco-innovation/Ecological innovation

-Environmental innovation

-Sustainable innovation

-Green innovation

The Porter hypothesis:

-environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production

Drivers of Green Innovation:

-Technology push

-Regulatory push

-Market pull

Technology push associated with:

-Material efficiency

-Energy efficiency

-Improved product quality

Market pull associated with groups of consumers:

-Green idealists

-Trend setters

Regulatory push associated with:

-Command and control instruments

-Market-based instruments

Barriers to green innovation:

The ‘double’ hurdle;

-Technological externalities

-Environmental externalities

Types of barriers:

-Economic barriers

-Technological barriers

-Institutional barriers

Strategies for Green Innovation:

-Niche strategy

-Endorsement strategy

-Partnership strategy

Chapter 14: National Innovation Systems

Systems of innovation:

-National innovation systems

-Regional innovation systems

-Sector innovation systems

Institutions:

Firms, Government, Science & Technology institutions, Educational institutions, Industry, and Financial institutions are all related

# data[].attributes.body
Chapter 12 Innovation Offshoring

-Innovation offshoring define as refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas

-Globalisation is a key factor behind the growth of innovation offshoring while transaction costs are coordination costs and opportunism costs.

-Factors encouraging innovation offshoring are

(i)     Improved technological linkages for instance electronification

(ii)   Growth of markets for technology

(iii) Growth of high tech clusters in Asia

(iv) Growth of expertise and capability overseas for example through technological catch-up and upgrading

-Global innovation network are the collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. There are six features of global innovation networks

(i)                 Structure

(ii)               Linkages

(iii)             Geography

(iv)             Hi-tech sectors

(v)               Governance

(vi)             Collaborative nature

Chapter 13: Green Innovation

-Three types of green innovation which are component, sub-system or modular and system while terminologies of green innovation are

(i)     Eco-innovation/Ecological innovation

(ii)   Environmental innovation

(iii) Sustainable innovation

(iv) Green innovation

-Driver of green innovation

Technology push- product quality, material and energy efficiency, product palette

Regulatory push- existing environment, legislation, standards, future regulation

Market pull- market share, competition, customer demand, new market and image

-Types of green innovation barriers are economic, technological and institutional

Chapter 14: National Innovation System

Systems of innovation are

(i)     National innovation systems

•      i.e. a country specific system such as the national innovation system of the UK or Japan

(ii)   Regional innovation systems

•      i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

(iii) Sector innovation system

•      i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

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NURUL FARAH HANIM BINTI HAWARI (E16A0223)

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NURUL FARAH HANIM BINTI HAWARI (E16A0223)

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SUMMARY

CHAPTER 12: INNOVATION OFFSHORING

Innovation offshoring refers to the way in which “some innovation-related activities are carried out by third parties located overseas”. Globalisation is a key factor behind the growth of innovation offshoring. Globalisation has come about because of the lowering in the transaction costs. The transaction costs are the costs of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. Transaction costs can be divided into two; coordination costs and opportunism costs. The reductions in transaction costs have encouraged outsourcing and offshoring. Offshoring began with the movement of production activities overseas. It led to the creation of Global Production Network.

Factors that encourage Innovation Offshoring can be improved technological linkages, growth of market for technology, growth of high tech clusters in Asia and the growth of expertise and capability overseas. The enablers that facilitates Innovation Offshoring changes in Corporate Innovation Management, increased specialisation through modularisation, increased availability and mobility of knowledge and globalisation of markets for technology. Modularisation is the result in interchangeable modules. Global Innovation Networks is the collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. The features of Global Innovation Networks are structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

CHAPTER 13: GREEN INNOVATION

Types of Green Innovation can be component, sub-system or modular and system. The terminology of Green Technology is ecological innovation, environmental innovation, sustainable innovation and green innovation. The Porter hypothesis states that environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. The drivers of green innovation are technology push, regulatory push and market pull. The barriers to green innovation is the ‘double’ hurdle; technological externalities and environmental externalities. The types of barrier are economic barriers, technological barriers and institutional barriers. The strategies of Green Innovation are niche strategy, endorsement strategy and partnership strategy.

CHAPTER 14: NATIONAL INNOVATION SYSTEMS

The systems of innovation are national innovation systems, regional innovation systems and sector innovation systems. The institutions related are government, science and technology institutions; research labs and universities, financial institutions; banks and venture capitalists, firms, industry; competitors and suppliers and educational institutions; schools, colleges and training providers.

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From this chapter Innovation offshoring is refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’. Globalization is a key factor behind the growth of innovation offshoring. It has come about because of the lowering of transaction costs. Transaction costs are the costs of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. There are two types of transaction costs which are coordination costs and opportunism costs. Reductions in transaction costs have encouraged outsourcing offshoring such as the geographical re-location of the supply or value chain overseas. Offshoring began with the movement of production activities overseas. Mainly in search of lower costs such as textiles and electronics. It also led to creation of Global Production Networks. Factors that encourage are improved technological linkage, growth of markets for technology. Growth of high tech clusters in Asia and growth of expertise and capability overseas. Modularization is product architecture that use of “de-composable building blocks”. Global innovation networks is collaborations and interactions between different firms and organizations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. The features is structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

From this chapter, there are three types of green innovation which is component, sub-system or modular and system. The terminologies of green innovation are firstly, eco-innovation or ecological innovation. Secondly, environmental innovation. Thirdly, sustainable innovation and lastly green innovation. “Environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production”. There are three drivers of green innovation, first is technology push. Next is market pull. Lastly, regulatory push. There are barriers to green innovation which is the double hurdle. First is technological externalities. Second is environmental externalities. The types of barrier for green innovation are economics barriers, technological barriers and institutional barriers. Strategies for green innovation are niche strategy. Next, endorsement strategy and lastly partnership strategy.

In chapter of national innovation system, C. Freeman, 1987 said Britain’s early record of innovation “Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.” There are three system of innovation which is national, regional and sector innovation system. There are relationships between government, science and technology institutions

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Chapter 12 : Innovation Offshoring

Innovation off shoring refers to the way in which some innovation-related activities are carried out by third parties located overseas. Lowering of transaction costs which are searching, negotiating, enforcing, and agreements and contracts in a world of imperfect information has caused globalisation. There are two types of transaction costs which are coordination costs and opportunism costs. Reduction in transaction cost have encouraged outsourcing and offshoring. The example of outsourcing is organisation restructuring where supply chain activities are carried out by third parties. Meanwhile, the example of offshoring is the geographical relocation of the supply chain overseas. Factors that encourage offshoring are to improved technological linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is a collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. The features are structure, linkages, geography, hi-tech sectors, governance, collaborative nature.

Chapter 13: Green Innovation

There are three types of green innovation which are component, sub-system or modular and system. The terminology of it are ecological innovation, environmental innovation, sustainable innovation and green innovation. Regulatory push, market pull and technology push are drives of green innovation. Technological externalities for example the problem appropriability and environmental externalities which is unattributed external costs that polluter does not pay are barriers to green innovation. The types of barrier are economic, technological and institutional barriers. The good strategies is needed for green innovation for example niche strategy, endorsement strategy and partnership strategy.

Chapter 14 : National Innovation Systems

There ae three systems of innovations. Firstly,  national innovation systems which is country specific system. Secondly, regional innovation systems which is an innovation based on a specific location or place. Thirdly, sector innovation system which is an industry specific innovation system. The institutions that helps in innovation are government and science and technology institutions which provide research laboratories and universities. Next, educational institutions for example are schools, college and training providers. Industry that provide supply and compete with each other and lastly financial institutions for example banks and venture capitalists.

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(e16a0154)
CHAPTER 12 : INNOVATION OFFSHORING

Innovation offshoring: refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’.

Globalisation & Transaction costs

•        Globalisation is a key factor behind the growth of innovation offshoring

•        Globalisation has come about because of the lowering of transaction costs

•        Transaction costs are the costs of:

•        searching

•        negotiating

•        enforcing

•        agreements and contracts in a world of imperfect information

2 types of transaction costs: Coordination costs and Opportunism costs

Impact of Globalisation and Transaction costs

Reductions in transaction costs have encouraged:

1. Outsourcing

2. Offshoring

Factors encouraging Innovation Offshoring

•        Improved technological linkages

•        Growth of markets for technology

•        Growth of high tech clusters in Asia

•        Growth of expertise and capability overseas

Enablers facilitating Innovation Offshoring

•        Changes in Corporate Innovation Management

•        Increased specialisation through modularisation

•        Increased availability and mobility of knowledge

•        Globalisation of markets for technology

Modularisation

•        Modular product architecture

•        Use of “de-composable building blocks” Ernst (2005)

•        Results in interchangeable modules

•        Facilitates ‘de-coupling’ in the production of different modules

•        Allows outside firms to be given responsibility for design/development of complete modules

Features of Global Innovation Networks

•        Structure

•        Linkages

•        Geography

•        Hi-tech sectors

•        Governance

•        Collaborative nature

CHAPTER 13: GREEN INNOVATION

Types of Green Innovation; Component,Sub-system/modular,System

Terminology of Green Innovation: Eco-innovation/Ecological innovation,Environmental innovation,Sustainable innovation, Green innovation

Technology push: Technological advances associated with: Material efficiency, Energy efficiency, Improved product quality

Market pull

Market pull associated with groups of consumers such as:

•        ‘Green idealists’

•         ‘Trend setters’

Regulatory push

•        Command and control instruments

•        Market-based instruments

Barriers to green innovation

The ‘double’ hurdle:

•        Technological externalities

•        Environmental externalities

Types of barrier: Economic barriers,Technological barriers,Institutional barriers

Strategies for Green Innovation:

•        Niche strategy

•        Endorsement strategy

•        Partnership strategy

CHAPTER 14: National Innovation Systems

Britain’s early record of innovation: “…. Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.”

C. Freeman (1987)

Systems of innovation

•        National innovation systems

•        i.e. a country specific system such as the national innovation system of the UK or Japan

•        Regional innovation systems

•        i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

•        Sector innovation system

•        i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

# data[].attributes.body
CHAPTER 12: INNOVATION OFFSHORING

Innovation offshoring can be defined as a way in which some innovation-related activities are carried out by third parties located overseas. It grow through the factor of globalisation due to lower transaction costs which include searching, negotiating, enforcing, agreements and contracts. There are two types of transaction costs which are coordination and opportunism costs. Through globalisation and transaction costs, it have encouraged and outsourcing by re-structuring of organization and offshoring by geographical relocation of the supply. Innovation offshoring is driven by the improvement of technology linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. Global innovation networks is the collaborations and interactions between different firms and organizations producing an exploiting new knowledge in a global scale for purposes of fostering innovation activities. It features structure, linkages, geography, hi-tech sectors, governance and collaborative nature.

CHAPTER 13: GREEN INNOVATION

There are three types of green innovation which are component, sub-system or modular and system. Based on The Porter hypothesis, green innovation is the environmental regulation that represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production. Green innovation is driven by technology and regulatory push and market pull.  Technology push involved the improvement of product quality and efficiency of material and energy while for regulatory push, it includes the instruments based on market, control and command. As for market pull, it associated with groups of consumers such as green idealists and trend setters. Barriers to green innovation are technological and environmental externalities. Three types of barriers are economic, technological and institutional barriers. The barriers can be overcome through the strategy of niche, endorsement and partnership.

CHAPTER 14: NATURAL INNOVATION SYSTEMS

There are three types of system of innovation which are national, regional and sector innovation systems. National innovation systems involved a specific system of a country such as United Kingdom and Japan while regional innovation systems is an innovation based on a specific location such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. As for sector innovation system, it involved an industry that have specific innovation system such as industry of pharmaceutical or aerospace.

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NOORIMAN AINA BINTI NOORAZMAN (E16A0140)

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NOORIMAN AINA BINTI NOORAZMAN (E16A0140)

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Summary of Chapter 12: Innovation Offshoring

Innovation Offshoring refers to some innovation-related activities are carried out by third parties located overseas. This happens due to globalisation and reduction of transaction cost. Reduction of transaction cost such as cost of searching, negotiating, enforcing and agreement between innovator and company overseas have led to outsourcing and offshoring. There are many factors that boost the production activities offshore. The factors are the improved technological linkages, growth of markets for technology globally, growth of high tech clusters in Asia and growth of expertise and capability overseas. This collaborations and interactions between different firms and organisations that produce and exploiting new knowledge in global scale for the purpose of innovation actives is known as Global Innovation Networks.

Summary of Chapter 13: Green Innovation

Green innovation is a new concept of great importance to business and policy makers. It is about innovations with lower environmental impact than relevant alternatives. The innovations may be technological or non-technological (organizational, institutional or marketing-based). Eco-innovations can be motivated by economic or environmental considerations. The former includes objectives to reduce resource, pollution control, or waste management costs, or to sell into the world market for eco-products. The factors that drives the green innovation to be implemented in the business world are the technology push such as the quality of the product, and energy efficiency. Next, the regulatory push such as regulation set by WHO for the sake of future generation. Lastly, market pull focusing on the consumer that being a trendsetter in the community about their green interest. However, there are still barrier of this green innovation in some country. This is because of the economic barriers, technological barriers and institutional barriers of the country itself. So, entrepreneur need to have better strategies in implementing the green innovation as the concept of their idea of innovation. This environmental regulation can represent as an opportunity for innovation as green innovation may immediately reduce the cost of compliance and production.

Summary of Chapter 14: National Innovation Systems

The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes. Government play the key role in setting broad policy directions. Bridging institutions, such as research councils and research associations, which act as the intermediaries between governments and the performers of research. Universities and related institutions provide key knowledge and skills. A country’s innovative performance largely depends on how these actors relate to each other as elements of a collective system of knowledge creation and use as well as the technologies they use.

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Nur Alissa Azlin Binti Arzemi (E16A0168)

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Nur Alissa Azlin Binti Arzemi (E16A0168)

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CHAPTER 12: INNOVATION OFFSHORING

From this chapter, innovation offshoring refer to the way in which some innovation-related activities are carried out by third parties located overseas. Innovation offshoring involves the globalisation and transaction costs which is related to each other. Globalisation is a key factor behind the growth this innovation and globalisation come about because lowering of transaction costs. Transaction costs refer to the costs of searching, negotiating, enforcing and agreements and contracts. There are two main impact of the reduction in transaction impact which is outsourcing and offshoring. Example of outsourcing is organisation re-structure where increasingly supply/value chain activities by third parties and Offshoring refer to geographical re-location of the supply/value chain overseas. Innovation offshoring is encourage due to several factor which is to growth of markets for technology, high tech clusters in Asia and to improve technological linkages. Besides, changes in corporate innovation management can be enablers in facilitating offshoring. Then, Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities.

CHAPTER 13 (GREEN INNOVATION)

In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies.

CHAPTER 14 (NATIONAL INNOVATION SYSTEMS)

In this chapter,  from the Britain’s early record of innovation said that national innovation system is not just   a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. This system of innovation includes of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. For example, a country specific system such as the innovation system of the UK or Japan. Then, the regional innovation system is based on specific location or place such as Silicon Valley in California. Lastly, sector innovation system which is based on knowledge and technologies, actors and networks and institutions.  For example industry specific innovation system such as those of pharmaceutical or aerospace industries. This innovation system also involved many firms such as government, financial institution, industry etc.

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Noor Shuhada Ezzatie Binti Mad Daud E16A0136

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Noor Shuhada Ezzatie Binti Mad Daud E16A0136

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Chapter 12 : Innovation Offshoring

Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation & Transaction costs:

Globalisation :

-key factor behind the growth of innovation offshoring

-come about because of the lowering of transaction costs

Transaction costs:

-are the costs of:

a)searching

b)negotiating

c)enforcing

d)agreements and contracts in a world of imperfect information

-2 types of transaction costs :

a) Coordination costs

b)Opportunism costs

Impact of Globalisation and Transaction costs :

-Reductions in transaction costs have encouraged:

a)Outsourcing

i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

b)Offshoring

i.e. the geographical re-location of the supply/value chain overseas

Offshoring:

-Began with the movement of production activities overseas

-Mainly in search of lower costs

-Led to creation of Global Production Networks

-R & D generally retained at home

Factors encouraging Innovation Offshoring:

-Improved technological linkages

-Growth of markets for technology

-Growth of high tech clusters in Asia

-Growth of expertise and capability overseas

Enablers facilitating Innovation Offshoring:

-Changes in Corporate Innovation Management

-Increased specialisation through modularisation

-Increased availability and mobility of knowledge

-Globalisation of markets for technology

Modularisation:

-Modular product architecture

-Use of “de-composable building blocks” Ernst (2005)

-Results in interchangeable modules

-Facilitates ‘de-coupling’ in the production of different modules

-Allows outside firms to be given responsibility for design/development of complete modules

Global Innovation Networks :

Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities

Features of Global Innovation Networks :

-Structure

-Linkages

-Geography

-Hi-tech sectors

-Governance

-Collaborative nature

Chapter 13 : Green Innovation

Types :

-Component

-Sub-system/modular

-System

Terminology :

-Eco-innovation/Ecological innovation

-Environmental innovation

-Sustainable innovation

-Green innovation

Drivers :

a)Technology push:

-Material efficiency

-Energy efficiency

-Improved product quality

b)Market pull:

-Green idealists

-Trend setters

c)Regulatory push:

-Command and control instruments

-Market-based instruments

Barriers:

-Technological externalities

-Environmental externalities

-Types of barrier:

a)Economic barriers

b)Technological barriers

c)Institutional barriers

Strategies :

-Niche strategy

-Endorsement strategy

-Partnership strategy

The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.

Chapter 14: National Innovation Systems

Systems of innovation :

-National innovation systems

-Regional innovation systems

-Sector innovation system

Institution :

-Firms

-Government

-Financial institutions

-Industry

-Education institutions

-Science and technology

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Siti Nur’Ain bt Ab Aziz(E16A0270)

Chapter 12:Innovation Offshoring

Innovation offshoring refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’.

-Globalisation is a key factor behind the growth of innovation offshoring and because of the lowering of transaction costs

-Transaction costs are the costs of searching,negotiating,enforcing and also agreements and contracts in a world of imperfect info.

-There are two types of transaction costs,Coordination costs and Opportunisms costs.

-Reductions in transaction costs have encouraged Outsourcing and Offshoring.

-Offshoring began with the movement of production activities overseas.Mainly in search of lower costs. It led to creation of Global Production Networks.

-Factors that cause Innovation Offshoring are Improved technological linkages, Growth of markets for technology,Growth of high tech clusters in Asia, and Growth of expertise and capability overseas.

-Enablers that facilitate Innovation Offshoring are Changes in Corporate Innovation Management, Increased specialisation through modularisation, Increased availability and mobility of knowledge and Globalisation of market for technology.

-Modularisation results in interchangeable  modules and Facilitates ‘de-coupling’ in the production of different modules.

Global Innovation Network are collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Its features are Structure , linkages, Geography,Hi-tech sectors, Governance and Collaborative nature.

CHAPTER 13:Green Innovation

Three types of Green Innovation are Component,Sub-system/modular and System.

Terminology of Green Innovation are Eco-innovation/Ecological innovation,Environmental innovation,Sustainable innovation and Green Innovation

The Porter Hypothesis states that environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production

Drivers of Green Innovation are technology push,regulatory push and market pull.

Technology push are Material efficiency,Energy efficiency and Improved product quality

Market pull associates with the consumers such as Green idealists and Trend setters

Regulatory push consists of Command and control instruments and Market-based instrument.

Barriers of Green Innovation are Technological externalities and Environmental externalities.

Types of barrier are Economic barriers,Technological barriers and Institutional barriers.

Strategies for Green Innovation are Niche strategy, Endorsement strategy and Partnership strategy

CHAPTER 14:NATIONAL INNOVATION SYSTEMS

C.Freeman on 1987 states that not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space.”

-Systems of Innovation are National innovation systems,Regional innovation systems and Sector innovation system.

-Institutions that involved in National Innovation Systems are Financial institution,Government, Industry, Educational institution and Science and technology institution

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Siti syaidatul Nisa bt Mohd arifin E16A0274

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Siti syaidatul Nisa bt Mohd arifin E16A0274

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Chapter 12.
Innovation offshoring
-Is the relocation of a business process from one country to another-typically an operational process, such as manufacturing, or supporting processes, sich as accounting. Typically this refer to a company business,  although state governments may also employ offshoring. Meanwhile, offshoring is the geographical re-location pf the supply. Innovation offshoring is being encouraged due to the improved technological linkage and the growth of markets for technology.

Chapter 13 indicates totally about green technology which means the innovation with concepts of environmental and sustainable innovation such as products with eco-friendly.  There are three types of green innovation which are component, modular and system. Besides, there are three of drivers of green innovation which are technology push that relate to the energy efficiency and improvement of product quality. Then, market pull that associate with groups of consumer such as green idealist and trend setters. Third, regulatory push which means the control of instruments regarding to environmental standards and also market-based instruments.

Chapter 14.
national innovation system basically the systems of innovation comprise of national innovation system, regional innovation system and sectors innovation systems. The national innovations system approach stresses that the flows of technology and information among people, enterprise, and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on actors not directly involved in innovation activities. Lastly, sector innovation system which is based on knowledge and technologies,  actord and network and institutions.

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E16A0227

In Chapter 12, Innovation Offshoring refers to some innovation-related activities are carried out by third parties located overseas. Globalization is a key factor behind the growth of innovation offshoring. Offshoring is broadly defined as a firm’s allocation of business activities to another country, either by obtaining goods and services from an unaffiliated foreign company or by investing in a foreign affiliate or joint venture. There are different between domestic outsourcing and offshoring which is the latter is a transaction that crosses borders. In terms of innovation effects, there are two mechanism which is outsourcing allows firms to reduce factor costs and restructure their operations towards higher value-added activities such as R&D and innovation– a channel highlighted in the context of developed countries. This allows the firm to learn new technologies and expand its technological frontier. The use of imported inputs – in particular from industrialised countries – can provide strong learning effects for emerging-market firms. Thus, the firms in emerging economies increase innovation as a result of engaging in offshoring, which is an alternative method of international sourcing.

In Chapter 13, Green Innovation is the development of products and processes that contribute to sustainable development, applying the commercial application of knowledge to elicit direct or indirect ecological improvements. There are three types of green innovation with the mission or cause-oriented sustainability business adding ecological, economical, social values and gains, with a bias towards the intangible – through dematerialization or resocialization. The value added at the same time preserving, restoring and/or ultimately enhancing the underlying utilized capital stock, in order to maintain the capacity to fulfil the needs of present and coming generations of stakeholders. Although there are barrier for green innovation, the company can plan their strategies in partnership, niche and endorsement strategy to achieve their mission.

In Chapter 14, National Innovation System is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. Innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes. A country’s innovative performance largely depends on how these actors relate to each other as elements of a collective system of knowledge creation and use as well as the technologies they use. Governments either central or regional play the role of coordinator among research producers in terms of their policy instruments, visions and perspectives for the future. The linkages can take the form of joint research, personnel exchanges, cross patenting, and purchase of equipment.

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Innovation offshoring

-          the way in which some innovation-related activities are carried out by third parties located overseas. This chapter discusses the impact of globalisation on transaction costs. Globalisation is a key factor behind the growth of innovation offshoring. This chapter also focus on differentiate and distinguish between outsourcing and offshoring. Global innovation networks also been compared to global production networks consist of six components whereas structure, linkage, geography, hi tech sectors, governance and collaborative nature.

Chapter 13

-           There are 3 types of green innovation which are consist of component, sub-system and system. The factors that drives the green innovation consist of technology push, regulatory push and market pull. Besides, barriers to green innovation also been mentioned in this chapter. Types of barriers also was discussed in this chapter which are economic, technological and institutional. Lastly, strategies for green innovation are niche, endorsement and partnership strategy.

chapter 14

-          the title is national innovation system. In this chapter, system of innovation may be crucial point which consist of national innovation system, regional innovation and sector innovation system.

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In chapter 12, innovation offshoring refers to the way in which some innovation-related activities are carried out by third parties located overseas. There are 2 types of transaction costs which is coordination costs and opportunism costs. Globalisation is a key factor behind the growth of innovation offshoring. Transaction costs are the cost of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. Impact of globalisation and transaction costs are outsourcing and offshoring. Outsourcing likes organisation re-structuring where increasingly supply/value chain activities are carried out by third parties. Offshoring likes the geographical re-location of the supply/value chain oversea. Factors that encouraging innovation offshoring are improved technological linkages such as electrification, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas such as through technological catch-up and upgrading. Features of global innovation networks are structures, linkages, geography, hi-tech sectors, governance and collaborative nature.

In chapter 13, there are three types of green innovation which are component, sub-system/modular and system. Terminology of green innovation are eco-innovation, environmental innovation, sustainable innovation and green innovation. Technology push, regulatory push and market pull are drivers of green innovation. The ‘double’ hurdle of barrier to green innovation are technological externalities and environmental externalities. There are three types of barrier which is economic barriers, technological barriers and institutional barriers. Strategies for green innovation are likes niche strategy likes Volvo bus, endorsement strategy likes Hollywood and the Toyota Prius, and partnership strategy likes Coca-Cola and Heinz.

In chapter 14, systems of innovation is divided by three which are national innovation systems, regional innovation system and sector innovation system. Example of national innovation systems are a country specific system such as the national innovation system of the UK or japan. Example of regional innovation systems is an innovation based on a specific location or place such as Silicon Valley in California or motor sport valley in Oxfordshire. Example of sector innovation system is an industry specific innovation system such as those of the pharmaceutical or aerospace industries. There are five main firm’s institutions which are government, science and technology, educational institution, industry and financial institutions.

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E16A0122

Chapter 12
Innovation offshoring
Definition of innovation offshoring is any innovation activities that are being conducted by third parties. Factor of determining innovation offshoring is globalization and transaction costs. When transaction cost increase, the globalization will appear. Transaction cost includes searching, negotiating, enforcing and agreements and contracts in a world of imperfect information. Two types of transaction cost are coordination cost and opportunism cost. Reduction in transaction cost has caused restructuring of organisation and relocation of geographical. Offshoring began from overseas where there is movement of production activities which later caused the creation of Global Production Networks. Factors that encourage innovation offshoring are improved technological linkages, growth of market for technology, growth of high tech clusters in Asia and growth of expertise and capabilities overseas. Meanwhile, global innovation network is a globally organized network of interconnected and integrated functions and operations by firms and non firm organizations engaged in the development or diffusion of innovation.

Chapter 13
Green innovation
There are three types of innovation which are component, sub-system and system. Green innovation is related to eco-innovation, environmental innovation, sustainable innovation and green innovation. The components that drive green innovation are technology push, regulatory push and marker pull. The barriers of green innovation are technological externalities and environmental externalities. There are three types of barrier which are economic, technological and institutional. Strategies for green innovation are niche, endorsement and partnership.

Chapter 14
National Innovation System
There are three systems of innovation which are national, regional and sector innovation systems. National innovation systems is specific system in particular country. Regional innovation system is innovation that based on specific location or place. Sector innovation system is innovation system in specific industry.

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E16A0195
SEG 2
Summary Chapter 12,13 and 14

Innovation Offshoring

- is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting. Typically this refers to a company business, although state governments may also employ offshoring.More recently, offshoring has been associated primarily with outsourcing  of technical and administrative services supporting domestic and global operations from outside the home country ("offshore outsourcing"), by means of internal (captive) or external (outsourcing) delivery models.

The term is in use in several distinct but closely related ways. It is sometimes used broadly to include substitution of a service from any foreign source for a service formerly produced internally to the firm. In other cases, only imported services from subsidiaries or other closely related suppliers are included. A further complication is that intermediate goods, such as partially completed computers, are not consistently included in the scope of the term.

Green Innovation

-Green growth means fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Increasing concern about the future sustainability of economic growth patterns underpin the demand for a greener model of growth. Existing production technology and consumer behaviour can only be expected to produce positive outcomes up to a point; a frontier, beyond which depleting natural capital has negative consequences for overall growth. By pushing the frontier outward, innovation can help to decouple growth from natural capital depletion. Innovation and the related process of creative destruction will also lead to new ideas, new entrepreneurs and new business models, thus contributing to the establishment of new markets and eventually to the creation of new jobs. Green innovation is therefore the key in enabling environmentally sustainable growth.

Innovation National System

-The National Innovation System (also NIS, National System of Innovation) is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level. According to innovation system theory, innovation and technology development are results of a complex set of relationships among actors in the system, which includes enterprises, universities and government research institutes.

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CHAPTER12 (INNOVATION OFFSHORING)

Innovation offshoring is referring to the innovation that has been made and carried out by third parties. there are several parts that contribute to the innovation offshoring such as globalisation and transaction cost, the impact of globalisation and transaction cost and organisational and spatial options. Then the factors that encouraging innovation offshoring are improved of technological linkages, growth of markets for technology, high tech cluster in Asia and expertise and capability overseas. lastly is the features of global innovation networks. There are 6 main features which can be related to the global innovation networks namely structure, linkages, geography, high-tech sectors, governance and collaborative nature.

CHAPTER 13 (GREEN INNOVATION)

Green innovation are divided into three types that is component, sub-system/modular, system. Three drivers of green innovation are technology push, regulatory push and market pull. In realizing green innovation, there are a few barrier that can make the innovation not working. They are the economic barrier, technological barrier and institutional barrier. Three strategies needed for green innovation, which are the niche strategy, endorsement strategy and the partnership strategy.

CHAPTER 14 (NATIONAL INNOVATION SYSTEM)

In this chapter,there are three types of innovation. firstly is national innovation system which means a country specific system such as the national innovation system of the UK or Japan. Next is the regional innovation systems, an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. The last one is the sector innovation system with an industry specific innovation system such as those of the pharmaceutical or aerospace industries.

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AMEERA NUR AFIQAH BINTI PRIYONO (E16A0020)

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AMEERA NUR AFIQAH BINTI PRIYONO (E16A0020)

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there u go

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E16A0170

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Chapter 12

This chapter referring to a site way in which some innovation-related activities are carried out by the third parties that located overseas. It involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties. Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology. In addition to this, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.

Chapter 13

In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies.

Chapter 14

This chapter discuss about National Innovation System (NIS). The system of innovation can be divided into three categories which are national, regional and sector innovation system. The national innovation system refer to the country specific system such as UK and Japan, regional innovation system is system of innovation based on the specific location or place while sector innovation system applied in specific industry such as aerospace industries and pharmaceutical. This innovation system will involved many firms such as government, financial institutions, industry etc. This chapter also compare Japan and Union of Soviet Socialist Republic (USSR) regarding their NIS. The elements that were compared and discussed are the GNP ratio, proportion of military and R&D at firm levels, experience of competition in international market etc. Both of these countries have their own pro and cons on their NIS.

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CHAPTER 12 (INNOVATION OFFSHORING)

MEANING OF INNOVATION OFFSHORING

Refers to the innovation relations activities that are carried by third parties located overseas.

GLOBALISATION & TRANSACTION COSTS

- Globalisation resulting from the lowering of transaction costs.
- Transaction costs are :
1. Searching
2. Negotiating
3. Enforcing
4. Agreements & contracts
- Types of transaction costs
1.  Coordination costs
2. Opportunism costs
- Impact of Globalisation & Transaction costs.
1. Outsourching
2. Offshoring

OFFSHORING

- Began from movement of overseas activities production
- Mainly of lower costs
- Led to creation of Global Production Networks
- R&D generally retained at home
- Begun to see R&D moving offshore
- Then, innovation offshoring

FACTORS ENCOURAGING INNOVATION OFFSHORING

- Improved technological lingkages
- Growth of markets of technology
- Growth of high tech clusters in Asia
- Growth of expertise and capability overseas.

ENABLERS FACILITATING INNOVATION OFFSHORING

- Changes in Corporate Innovation Management
- Increased specialisation through modularisation
- Increased availability and mobility of knowledge
- Globalisation of markets for technology.

MODULARISATION

- Modular product architecture
- Use of 'de-composable building blocks'
- Results in interchangeable modules
- Facilitates 'de-coupling' in production of different modules
- Allows outside firms to be given responsibility for design/development to complete modules.

GLOBAL INNOVATION NETWORKS

DEFINITION :

“collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities”

FEATURES OF GIN
- Structure
- Lingkages
- Geography
- Hi-tech Sectors
- Governance
- Collaborative nature

CHAPTER 13  (GREEN INNOVATION)

TYPES OF GI

- Component
- Sub-system/modular
- System

TERMINOLOGY OF GI

- Eco-innovation/ Ecological innovation
- Environment innovation
- Sustainable innovation
- Green innovation

THE PORTER HYPOTHESIS

“environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.’

DRIVERS OF GI

1. TECHNOLOGY PUSH
- Material efficiency
- Energy efficiency
- Improved product quality
2. REGULATORY PUSH
- Command & control instruments
- Market-based instruments
3. MARKET PULL
- Green Idealists
- Trend setters

BARRIERS TO GI

1. Technological externalities
2. Environmental externalities

TYPES OF BARRIER

- Economic barriers
- Technological barriers
- Institutional barriers

STRATEGIES FOR GI

- Niche strategy
- Endorsement strategy
- Partnership strategy

CHAPTER 14 (NATIONAL INNOVATION SYSTEM)

SYSTEM OF INNOVATION

- National innovation systems
-Regional innovation systems
- Sector innovation system

INSTITUTIONS

1. Government
2. Financial instituions
3. Industry
4. Educational institutions
5. Science & technology institutions

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CHAPTER 12 (INNOVATION OFFSHORING)

In this chapter, we managed to understand that innovation offshoring totally about some related activities that carried out by third parties located overseas. This means when we want to produce new innovation, we can collaborate with others global innovation network to cooperate with us.
For instance, the famous products of Apple iPod by Apple have been collaborate with innovators from others countries such as US, Japan, UK and South Korea to produce the best Apple iPod. Next, the main key factor of the growth of innovation offshoring is globalisation where we need to think globally about products of innovation offshoring that carried by third parties of overseas. There are four transaction costs that have come out from globalisations such as searching, negotiating, enforcing and agreements of information. Then, two types of transaction costs are coordination and opportunism costs. This means that when the transaction costs are low, it will encourage outsourcing such as activities that carried by third parties and also offshoring such as the location of the overseas supply is being relocated.
Through this chapter, we understand about offshoring including textiles and electronics activities are mainly lower costs. The improvements technological linkages, growth of markets for technology, high tech clusters in Asia and growth of expertise overseas have become the main factors that encourage innovation offshoring. Everyone could be the innovator offshoring when they could changes in Corporate Innovation Management, increased specialization through modularisation, has mobility of knowledge and also can global their markets for technologies. There are also six features that related to global innovation networks which are structure, linkages, geography, hi-tech sectors, governance and collaborative nature. In conclusion, innovation offshoring is known as physical restructuring of established products involves relocation of physical manufacturing processes to a lower-cost destination. Examples of production offshoring include the manufacture of electronic components in Costa Rica production of apparel, toys, and consumer goods in China and Vietnam.

CHAPTER 13 (GREEN INNOVATION)

Chapter 13 indicates totally about green technology which means the innovation with concepts of environmental and sustainable innovation such as products with eco-friendly. There are three types of green innovation which are component, modular and system. These types shows that we need to have the product with component of less negative impact towards environment then, product must be eco-efficiency and lastly the product achieved the eco-effectiveness that have economic sustainability of the system.
Besides, there are three of drivers of green innovation which are technology push that relate to the energy efficiency an improvement of product quality. Next drivers are market pull that associate with groups of consumers such as green idealists and trend setters. Thirdly, regulatory push which means the control of instruments regarding to environmental standards and also market-based instruments that includes the financial incentives such as taxes and subsidies.
Green technology also has its barrier such as economic, technological and institutional barrier. These barriers show that due to our unstable economic, we could not have enough financial to set up product of eco-friendly with need higher initial cost. Then, the lack technology in Malaysia will give the tension to the innovator of green technology to carry out their processes. The institutional barrier shows that less institute in our country also effected the production of green technology. Hence, we need to have the strategies for green technology such as niche and endorsement strategy which we collaborate with the company from others countries that have modern technology to conduct our green technology. Lastly, partnership strategy also the main important strategy because we manage to collaborate and combining the ideas between each other to create the best innovation of green technology.

CHAPTER 14 (NATIONAL INNOVATION SYSTEM)

This chapter totally discussed that the successful of invention means the invention attributes to a unique combination of interacting social, economic and technical changes within the national economic space. There are three systems of innovation which firstly is national innovation system that means the country specific system. Secondly, regional innovation systems which means the specific location or place of innovations. For instance, the Motor Sport Valley in Oxford shire. Thirdly, sector innovation system which shows the industry specific innovation such as aerospace industries. This chapter indicates that the cooperation of many institutions is the main key factor in national innovation system. This shows that government, science technology, educational institutions, industry, financial institutions and firms need to collaborate with each other to achieve the national innovation system. In conclusion, the national innovation system which known as NIS or National System of Innovation is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level.

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Growth of markets for technology
•       Growth of high tech clusters in Asia 
•       Growth of expertise and capability overseas
•       i.e. through technological catch-up and upgrading

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In chapter 12, the topics is about innovation offshoring. Innovation offshoring refers to the way in which some innovation related activities are carried out by third parties located overseas. Globalization is a key factor behind the growth of innovation offshoring. There are two types of transaction costs which are coordination costs and opportunism costs. Reductions in transaction costs have encouraged outsourcing and offshoring. Offshoring began with the movement of production activities overseas. The factors that encourage innovation offshoring are improved technological linkages, growth of markets for technology, growth of high technology cluster in Asia and the growth of expertise and capability overseas.

In chapter 13, the topics is on green innovation. Three drivers of green innovation are technology push, regulatory push and market pull. In realizing green innovation, there are a few barrier that can make the innovation not working. They are the economic barrier, technological barrier and institutional barrier. Three strategies needed for green innovation, which are the niche strategy, endorsement strategy and the partnership strategy.

For chapter 14, the topics discussed is on the national innovation system. There are three system of innovation. The first one is national innovation system which means a country specific system such as the national innovation system of the UK or Japan. Next is the regional innovation systems, an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire. The last one is the sector innovation system with an industry specific innovation system such as those of the pharmaceutical or aerospace industries.

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Chapter 12.

Innovation offshoring :

Refers to some innovation-related activities are carried out by third parties located overseas.

It is comprise of :

Globalisation and transaction cost :

both are key factor for the growth of innovation offshoring

2 types of transactions cost which is coordinate and oppurtunism

Impact:

Outsourcing : organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

Offshoring : the geographical re-location of the supply/value chain overseas

Factors encouraging:

Improve technological linkages

Growth of market for technolog

Growth of high tech clusters in asia

Growth of expertise and capabilities overseas

Chapter 13
'hardware or software innovationthat is related to green products or processes, including the innovation in technologies that are involved in energy-saving, pollution-prevention, waste recycling, green product designs, or corporate environmental management' (Chen et al., 2006)

Which comprise of :

Types of green innovation

•Component

•Sub-system/modular

•System

Drivers of green innovation

Technology push

Regulatory push

Market pull

Barriers

economic

Technological

Institutional

Strategies

niche

Endorsement

Partnership

Chapter 14:

Definition : is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level.

Systems of innovation :

national innovation system

Regional innovation system

Sector innovation system

Institution:

firms

Government

Financial institutions

Industry

Education institutions

Science and technology

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SHARIFAH NURIN WAHIDA BT SYED SABRI (E16A0253)

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SHARIFAH NURIN WAHIDA BT SYED SABRI (E16A0253)

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Chapter 12- INNOVATION OFFSHORING

Chapter 12- INNOVATION OFFSHORING

Innovation offshoring-refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation & Transaction costs

•       Globalisation is a key factor behind the growth of innovation offshoring

•       Globalisation has come about because of the lowering of transaction costs

Transaction costs are the costs of:

•       searching

•       negotiating

•       enforcing

•       agreements and contracts in a world of imperfect information

There 2 types of transaction costs

·         Coordinate costs

·         Opportunism costs

Impact of Globalisation and Transaction costs

Reductions in transaction costs have encouraged:

Outsourcing

•       i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

Offshoring

•       i.e. the geographical re-location of the supply/value chain overseas

Factors encouraging Innovation Offshoring

Improved technological linkages

Growth of markets for technology

Growth of high tech clusters in Asia

Enablers facilitating Innovation Offshoring

•       Changes in Corporate Innovation Management

•       i.e. shorter lead times; increased development of multi-technology products

•       Increased specialisation through modularisation

•       Increased availability and mobility of knowledge

•       Globalisation of markets for technology

Modularisation

•       Modular product architecture

•       Allows outside firms to be given responsibility for design/development of complete module

Global Innovation Networks

Features of Global Innovation Networks

•       Structure

•       Linkages

•       Geography

•       Hi-tech sectors

•       Governance

•       Collaborative nature

CHAPTER 13-GREEN INNOVATION

Types of Green Innovation

•       Component

•       Sub-system/modular

•       System

Terminology of Green Innovation

•   Eco-innovation/Ecological innovation

•   Environmental innovation

•    Sustainable innovation

•   Green innovation

The Porter hypothesis

“environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production”

Drivers of Green Innovation

Technology push

·         Product quality

·         Material efficiency

·         Energy efficiency

Regulatory push

·         Legislation

·         Standard

·         Future regulation

Market pull

·         Competition

·         Image

·         Market share

Barriers to green innovation

Types of barrier

•       Economic barriers

•       Technological barriers

•       Institutional barriers

Strategies for Green Innovation

•       Niche strategy
e.g. Volvo Bus

•       Endorsement strategy
e.g. Hollywood and the Toyota Prius

•       Partnership strategy

•       Coca-Cola and Heinz and the development of the PlantBottleÔ

CHAPTER 14 – NATIONAL INNOVATION SYSTEM

Systems of innovation

• National innovation systems

•Regional innovation systems

• Sector innovation system

Institution :

-Firms

-Government

-Financial institutions

-Industry

-Education institutions

-Science and technology

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Chapter 12 : Innovation Offshoring

Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Innovation offshoring involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology. Other than that, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.

Chapter 13 : Green Innovation

Types of green innovation :

components, sub system and system

Terminology green innovation :

Eco innovational, environmental innovation, sustainable innovation and green innovation

Drivers of green innovation :

Technology push, regulatory push and market pull

Barris to green innovation :

Technological externalities and environmental enxternalities

Types of barriers :

Economic, technological and institutional barriers

Strategies for green innovation:

Niche, endorsement and partnership strategy

Chapter 14 : National innovation System

discussed on National Innovation Systems topic. Basically the systems of innovation comprises of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on actors not directly involved in innovation activities. The key variables are the actor constellations and their modes of coordination that characterize the regional innovation system. Last but not least, sector innovation system which is based on knowledge and technologies, actors and networks and institutions. Sector innovation system have a knowledge base, technologies, inputs and a potential demand. They are composed of a set of agents carrying out market and non-market interactions for the creation, development and diffusion of new sectoral products.

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Chapter 12.

Innovation offshoring :

Refers to some innovation-related activities are carried out by third parties located overseas.

It is comprise of :

Globalisation and transaction cost :

both are key factor for the growth of innovation offshoring

2 types of transactions cost which is coordinate and oppurtunism

Impact:

Outsourcing : organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

Offshoring : the geographical re-location of the supply/value chain overseas

Factors encouraging:

Improve technological linkages

Growth of market for technolog

Growth of high tech clusters in asia

Growth of expertise and capabilities overseas

Chapter 13
'hardware or software innovationthat is related to green products or processes, including the innovation in technologies that are involved in energy-saving, pollution-prevention, waste recycling, green product designs, or corporate environmental management' (Chen et al., 2006)

Which comprise of :

Types of green innovation

•Component

•Sub-system/modular

•System

Drivers of green innovation

Technology push

Regulatory push

Market pull

Barriers

economic

Technological

Institutional

Strategies

niche

Endorsement

Partnership

Chapter 14:

Definition : is the flow of technology and information among people, enterprises and institutions which is key to the innovative process on the national level.

Systems of innovation :

national innovation system

Regional innovation system

Sector innovation system

Institution:

firms

Government

Financial institutions

Industry

Education institutions

Science and technology

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CHAPTER 12:INNOVATION OFFSHORING

Innovation offshoring:some innovation-related activities are carried out by third parties located overseas.

Globalisation & Transaction costs

It exist because of the lowering of transaction costs.

Transaction costs are the costs of: searching,negotiating ,enforcing ,and agreements and contracts in a world of imperfect information.

2 types of transaction which are:( largely by advances in technology and trade liberalisation)

Coordination costs

Opportunism costs

Reductions in transaction costs have encouraged:

Outsourcing

i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

Offshoring

i. e. the geographical re-location of the supply/value chain overseas.

Offshoring

Began with the movement of production activities overseas.Mainly in search of lower costs.e.g. textiles and electronics.Finally it can led to creation of Global Production Networks

Factors encouraging Innovation Offshoring

1.Improved technological linkages

2.Growth of markets for technology

3.Growth of high tech clusters in Asia

4.Growth of expertise and capability overseas

Modularisation

It’s when the results in interchangeable modules.Facilitates ‘de-coupling’ in the production of different modules,Next,it allows outside firms to be given responsibility for design/development of complete modules

Features of Global Innovation Networks

1.Structure

2.Linkages

3.Geography

4.Hi-tech sectors

5.Governance

6.Collaborative nature

CHAPTER 13:
GREEN INNOVATION

TYPES

1.Component

2.Sub-system/modular

3.System

Terminology

1.Eco-innovation/Ecological innovation

2.Environmental innovation

3.Sustainable innovation

4.Green innovation

The Porter hypothesis

a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.

Technology push

Material efficiency,Energy efficiency, and Improved product quality

Market pull

‘Green idealists’

i.e. moral, philosophical interests

‘Trend setters’

i.e. ‘image’, association interests

Regulatory push

Command and control instruments,Mandatory requirements regarding environmental standards,Next.Market-based instruments.Financial incentives/penalties. e.g. taxes, emission permits, subsidies, take-back schemes, etc.

Barriers to green innovation

Technological externalities

i.e. the problem appropriability

Environmental externalities

i.e. unattributed external (social) costs that the polluter does not pay

Types of barrier

1.Economic barriers

2.Technological barriers

3.Institutional barriers

Strategies for Green Innovation

Niche strategy

Endorsement strategy

Partnership strategy

CHAPTER 14:NATIONAL INNOVATION SYSTEM

Systems

Systems of innovation :

-National innovation systems

-Regional innovation systems

-Sector innovation system

Institution :

-Firms

-Government

-Financial institutions

-Industry

-Education institutions

-Science and technology

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Chapter 12 : Innovation Offshoring

Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation & Transaction costs:

Globalisation :

-key factor behind the growth of innovation offshoring

-come about because of the lowering of transaction costs

Transaction costs:

-are the costs of:

a)searching

b)negotiating

c)enforcing

d)agreements and contracts in a world of imperfect information

-2 types of transaction costs :

a) Coordination costs

b)Opportunism costs

Impact of Globalisation and Transaction costs :

-Reductions in transaction costs have encouraged:

a)Outsourcing

i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

b)Offshoring

i.e. the geographical re-location of the supply/value chain overseas

Offshoring:

-Began with the movement of production activities overseas

-Mainly in search of lower costs

-Led to creation of Global Production Networks

-R & D generally retained at home

Factors encouraging Innovation Offshoring:

-Improved technological linkages

-Growth of markets for technology

-Growth of high tech clusters in Asia

-Growth of expertise and capability overseas

Enablers facilitating Innovation Offshoring:

-Changes in Corporate Innovation Management

-Increased specialisation through modularisation

-Increased availability and mobility of knowledge

-Globalisation of markets for technology

Modularisation:

-Modular product architecture

-Use of “de-composable building blocks” Ernst (2005)

-Results in interchangeable modules

-Facilitates ‘de-coupling’ in the production of different modules

-Allows outside firms to be given responsibility for design/development of complete modules

Global Innovation Networks :

Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities

Features of Global Innovation Networks :

-Structure

-Linkages

-Geography

-Hi-tech sectors

-Governance

-Collaborative nature

Chapter 13 : Green Innovation

Types :

-Component

-Sub-system/modular

-System

Terminology :

-Eco-innovation/Ecological innovation

-Environmental innovation

-Sustainable innovation

-Green innovation

Drivers :

a)Technology push:

-Material efficiency

-Energy efficiency

-Improved product quality

b)Market pull:

-Green idealists

-Trend setters

c)Regulatory push:

-Command and control instruments

-Market-based instruments

Barriers:

-Technological externalities

-Environmental externalities

-Types of barrier:

a)Economic barriers

b)Technological barriers

c)Institutional barriers

Strategies :

-Niche strategy

-Endorsement strategy

-Partnership strategy

The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.

Chapter 14: National Innovation Systems

Systems of innovation :

-National innovation systems

-Regional innovation systems

-Sector innovation system

Institution :

-Firms

-Government

-Financial institutions

-Industry

-Education institutions

-Science and technology

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NURIN DALILA BINTI MOHD SHOBRI (E16A0208)

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NURIN DALILA BINTI MOHD SHOBRI (E16A0208)

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Chapter 12: Innovation Offshoring

Offshoring means the business that done at company in one country or in different country. Meanwhile, outsourcing is a strategy of using external parties to engage in idea generation for new products and services. Another objectives that important in this chapter is the globalisation and transaction cost. Two types of transaction cost are coordination cost which is cost of processing information in an organization and opportunism cost which is a benefit, profit or value of something that must be given up to acquire or achieve something else. This chapter also discuss about the factor encouraging and enabler facilitating of innovation offshoring. Lastly, this chapter also discuss about global innovation network. The meaning is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. It is significantly influence national and regional innovation systems. Plus, companies are increasingly opening their innovation processes and collaborating on innovation with external partners like suppliers.

Chapter 13: Green innovation

There are three element that act as driver to green innovation which are technology push, regulatory push and also market push. The combination of these elements can make one green innovation that able to solve the problem toward the environment. There are three types of green innovation which are component, sub-system and system. However, these three types have their own positive and negative impacts which based on environment, economic and social sustainability of the system. In this chapter, it also stated about the barriers to development the green innovation. One of them is economic. This is because, development  of one green innovation need a higher cost and expensive. Institution barrier is happen because there is not much of institution that able to develop the green innovation.

Strategies for green innovation are niche strategy, endorsement strategy and partnership strategy.

Chapter 14: National innovation system

This topic discuss about system in innovation. There are three system which are national innovation, regional innovation and sector innovation. National innovation system is the country specific system such as the national innovation system of the UK or Japan while regional innovation system is an innovation based on a specific location or place. Lastly is sector innovation which means an industry specific innovation system such as those of the pharmaceutical or aerospace industries. This topic also tells about network of a national innovation system. 5 types of firms that involve are government, science and technology institutions, educational institutions, industry and also financial institution. All these firms have their own responsibility and play an important role in-order to develop a relationship or network. For example is educational institutions, it play a role in gives knowledge for students and financial institutions is important to give money for the development of national network.

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Chapter 12: Innovation Offshoring

·Innovation offshoring is the way in which “some innovation related activities are carried out by third parties located overseas”.

Globalization is the main element for growth of offshoring.

Type of transaction cost :

1.  coordination

2.  opportunism

Impact of globalization and transaction cost :

1. outsourcing

2. offshoring

Organizational restructuring maybe in house, cooperative or outsourcing while geographic relocation would be home or offshore.

Offshoring began with the movement of production activities overseas that mainly in search of lower cost and led to creation of global production network.

Factor encourage innovation offshoring:

*improved technological linkage

*growth of markets for technology, high technology clusters and expertize overseas

Enablers facilitating innovation offshoring:

*changes in corporate innovation management

*increased specialization through modularization

*increased availability and mobility of knowledge

*globalization of market for technology

Global innovation network is “collaborations and interactions between different firms and organizations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities”.

Features of global innovation network:

~structure

~linkage

~geography

~high technology sector

~governance

~collaborative nature

Chapter 13: Green Innovation

Green innovation= ecological innovation=environmental innovation=sustainable innovation

Type of green innovation

1. component

2. modular

3. system

Driver of green innovation:

*Technology push: product quality, material and energy efficiency

*Regulatory push: legislation, standard and existing environment

*Market pull: market share, new market and competition

Barrier to green innovation: technology or environmental externalities

~economic barrier

~technological barrier

~institutional barrier

Strategy for green innovation

1. niche

2. endorsement

3. partnership

Chapter 14: National Innovation System

System of innovation

-National
-Regional

-Sector

Institution involve:

-Government

-Financial institution

-Industry

-Educational institution

-Science and technology institutions

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CHAPTER 12: INNOVATION OFFSHORING

From this chapter, innovation offshoring refer to the way in which some innovation-related activities are carried out by third parties located overseas. Innovation offshoring involves the globalisation and transaction costs which is related to each other. Globalisation is a key factor behind the growth this innovation and globalisation come about because lowering of transaction costs. Transaction costs refer to the costs of searching, negotiating, enforcing and agreements and contracts. There are two main impact of the reduction in transaction impact which is outsourcing and offshoring. Example of outsourcing is organisation re-structure where increasingly supply/value chain activities by third parties and Offshoring refer to geographical re-location of the supply/value chain overseas. Innovation offshoring is encourage due to several factor which is to growth of markets for technology, high tech clusters in Asia and to improve technological linkages. Besides, changes in corporate innovation management can be enablers in facilitating offshoring. Then, Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities.

CHAPTER 13 (GREEN INNOVATION)

In this chapter, Green Innovation also be known as eco-innovation or ecological innovation, environmental innovation and sustainable innovation. There are numerous definitions of green innovation (or closely related terms) exist. One of them is as innovations that consist of new or modified processes, practices, systems and products which benefit the environment and so contribute to environmental sustainability’ (Oltra and Saint Jean, 2009). There are three types of this innovation which is component, sub-systems or modular and system. . Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of material efficiency, energy efficiency and improved product quality. Meanwhile, market pull comprises customer demand, new market and competition. There are two groups of consumers in market pull which is green idealists and trend setters. Then, the regulatory push comprise command and controls instruments ( Mandatory requirement regarding environmental standards) and Market- based instruments ( financial incentives) like permits, subsidies and emission. Thus, there are 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers. To reduce the barriers, there are also 3 strategies include the niche strategies, endorsement strategies and also the partnership strategies.

CHAPTER 14 (NATIONAL INNOVATION SYSTEMS)

In this chapter,  from the Britain’s early record of innovation said that national innovation system is not just   a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. This system of innovation includes of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. For example, a country specific system such as the innovation system of the UK or Japan. Then, the regional innovation system is based on specific location or place such as Silicon Valley in California. Lastly, sector innovation system which is based on knowledge and technologies, actors and networks and institutions.  For example industry specific innovation system such as those of pharmaceutical or aerospace industries. This innovation system also involved many firms such as government, financial institution, industry etc.

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NURSYAHIRAH BINTI MAJDI      E16A0212

Chapter 12 explain about innovation offshoring. Innovation offshoring refer to the way in which some innovation-related are carried out by third parties located overseas. The globalisation and and transaction cost are the important element that influence the innovation offshoring. Coordination cost and opportunism cost are the types of transaction cost. The reduction in the transaction cost encouraged outsourcing and offshoring. Outsourcing is the organisation re-structuring by third parties while offshoring is firm’s allocation of business activities to another country or obtain goods and services from an unaffiliated foreign country. Then, the factors that encouraging this innovation are improved technological linkages, growth of market for technology etc. Other than that, this topic briefly describe about modularisation which is modular product architecture. Next, global innovation system was defined as collaboration and interactions between different firms and organisation producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities. Structure, linkages, geography, governance etc. are the features of this global innovation. Apple Ipod is an example of this innovation.

Chapter 13 describe about green innovation. There are 3 types of green innovation which are component, sub-system or modular and system. The green innovation occur or drived by technology push, regulatory push and market pull. Technology push will be associated with material efficiency, energy efficiency and improved quality of product. Market pull usually depend on the group of customer like green idealists who are concern about environmental innovation. Regulatory push tell us about the command and control instruments that require consumer and innovator to obey the environmental standards. To achieve the green innovation is not easy as the barriers exist. The type of barriers towards green innovation are economic, technological and institutional barrier. To overcome this kind of barriers, the strategies for green innovation were identified. These strategies are niche, endorsement and partnership strategy. Coca-Cola and Heinz are the good example of partner which they develop PlantBottle

Chapter 14 discuss about National Innovation System (NIS). The system of innovation can be divided into three categories which are national, regional and sector innovation system. The national innovation system refer to the country specific system such as UK and Japan, regional innovation system is system of innovation based on the specific location or place while sector innovation system applied in specific industry such as aerospace industries and pharmaceutical. This innovation system will involved many firms such as government, financial institutions, industry etc. This chapter also compare Japan and Union of Soviet Socialist Republic (USSR) regarding their NIS. The elements that were compared and discussed are the GNP ratio, proportion of military and R&D at firm levels, experience of competition in international market etc. Both of these countries have their own pro and cons on their NIS.

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SITI NUR FATHIMAH BT ABDUL MUTALIB (E16A0268)

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SITI NUR FATHIMAH BT ABDUL MUTALIB (E16A0268)

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Chapter 12

This chapter referring to a site way in which some innovation-related activities are carried out by the third parties that located overseas. It involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties. Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology.In addition to this, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.

Chapter 13

Green technology is divided into three types which are components, sub-systems and systems. The term green innovation is ecological innovation, environmental innovation, sustainable innovation and green innovation. There are three green technology drivers. First is push technology (technological advances related to material efficiency, energy efficiency and product quality improvement), market attraction (market-related sources of consumer groups such as green ideals and trend determinants) and regulation. There are order and control instruments and market-based instruments. Some of the obstacles to green innovation are external technology and external environment. There are three types of barriers that constitute economic barriers, technology barriers and institutional barriers. Some of the strategies for green innovation are the niche strategy (Volvo Bus), support strategy (Hollywood and Toyota Prius) and finally the sharing strategy (Coca-Cola).

Chapter 14

National innovation system based on Britain’s record is not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. The systems of innovation are national innovation systems, regional innovation systems and sector innovation system. The firms are government, science and technology institutional, educational institutional, industry and financial institutions.

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Chapter 12 : Innovation offshoring

Definition: refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation: key factor behind innovation offshoring

Transaction costs involves searching, negotiating, enforcing and agreements and contracts in a world of imperfect information.

Types of transaction costs:
• Coordination costs
• Opportunism costs

Reduce in transaction cost encourages :
1. Outsourcing (organisation re-structuring where increasingly supply/value chain activities are carried out by third parties)
2. Offshoring (the geographical re-location of the supply/value chain overseas)

Factors encouraging Innovation Offshoring:
• Improve technological linkages
• Growth of market for technology
• Growth of high tech clusters in Asia
• Growth of expertise & capability overseas

Enabler facilitating innovations offshore:
• Changes in Corporate Innovation Management
• Increased specialisation through modularisation
• Increased availability and mobility of knowledge
• Globalisation of markets for technology

Chapter 13: Green Innovation

Types of green innovation:
• Component
• Sub-system/modular
• System

Terminology:
• Eco-innovation/Ecological innovation
• Environmental innovation
• Sustainable innovation
• Green innovation

Porter hypothesis:
“environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.”

Drivers of Green Innovation:
- Technology push
• Material efficiency
• Energy efficiency
• Improved product quality
- Regulatory push
• Command and control instruments
 Mandatory requirements regarding environmental standards
• Market-based instruments
 Financial incentives/penalties  e.g. taxes, emission permits, subsidies, take-back schemes, etc
- Market pull
• ‘Green idealists’
 moral, philosophical interests
• ‘Trend setters’
 ‘image’, association interests

Barriers to Green Innovation:
• Technological externalities
 the problem appropriability
• Environmental externalities
 unattributed external (social) costs that the polluter does not pay

Types of barriers:
• Economic barriers
• Technological barriers
• Institutional barriers

Strategies for Green Innovation:
• Niche strategy
 Volvo bus
• Endorsement strategy
 Hollywood and the Toyota Prius
• Partnership strategy
 Coca-Cola and Heinz and the development of the PlantBottle

Chapter 14: National Innovation System

Systems of innovation:
• National innovation systems
• Regional innovation systems
• Sector innovation system

Institution:
• Firms
• Government
• Financial institutions
• Industry
• Education institutions

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chapter 12 - Innovation offshoring

Innovation offshoring way in which ‘some innovation-related activities are carried out by third parties located overseas’.

1. the impact of globalization on transaction costs

Outsourcing - organization restructuring where increasingly supply value chain activities are carried out by third parties.

Offshoring- the geographical re location of the supply or value chain.

2. Differentiate between outsourcing and offshoring

Outsourcing | Offshoring
obtaining certain services or products from a third party company  | obtaining services or products from another country
some services or products can be obtained for a far lower price while obtaining the same level of quality.   | able to produce goods or have services provided in a far cheaper country
Some business processes or products are very specialized and outsourcing to another provider provides access to higher quality  | a company may choose to offshore and ultimately retain full control and responsibility.
outsourcing provides the benefit of only having to pay for precisely what you need.  | many loopholes in tax and tariff regimes in many countries that can allow companies to generate great savings and import products for use relatively cheaply.

3. factors that have led to the increased mobility of research and development (R&D)

R&D efforts by countries may shape bilateral scientist mobility and collaboration flows as the highly skilled seek new opportunities to work with peers in other economies dedicating substantial resources to scientific research. Data on gross domestic expenditures on R&D (GERD) as a percentage of gross domestic product (GDP) were obtained from the OECD Main Science and Technology Indicators and the UNESCO Institute for Statistics (UIS) R&D databases. We have extracted this indicator for 152 countries to investigate the degree to which scientist mobility and collaboration between two countries are related to the R&D intensity in the receiving (or sending) country and differences in the relative R&D intensity ratio of origin versus destination country over time.

4. Distinguish between global innovation networks and global production network

Global innovation network is “collaborations and interactions between different firms and organizations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities. EU (2010) while Global production network is a concept in developmental literature which refers to "the nexus of interconnected functions, operations and transactions through which a specific product or service is produced, distributed and consumed.

chapter 13- Green innovation

ü Nature of green innovation

Green innovation is the creation or implementation of new, or significantly improved, products (goods and services), processes, marketing methods, organisational structures and institutional arrangements which – with or without intent – lead to environmental improvements compared to relevant alternatives’ (OECD, 2009)

ü Factors that drive green innovation

a) Technology push

-product quality

-material efficiency

-energy efficiency

-product palette

b) Regulatory push

-existing environment

-legislation

-standards

-future regulation

c) market pull

-market share

-competition

-customer demand

-new markets

-images

ü the barriers that deter the adoption and diffusion of green innovation

Technological externalities - the problem appropriability

Environmental externalities - unattributed external costs that the polluter does not pay

ü the business strategies that can be employed when launching green innovations.

Niche strategy - volvo bus

Endorsement strategy- Holywood and the toyota prius

Partnership strategy- coca cola and heinz and the development of plant bottle

chapter 14 - National innovation system

There are three types in systems of innovation such as national innovation system such as a country spesific system such as the national innovation system of the UK or Japan. Next is, regional innovation system such as an innovation based on a spesific location or place such as silicon valley in california or motor sport valley in oxfordshire. Thirdly is, sector innovation system such as an industry spesific innovation system such as those pharmaceutical or aerospace industries.

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Chapter 12 Innovation offshoring

Definition
Refer to the way in which some innovation related activities are carried out by third parties located overseas.

Globalisation
It is a key factor behind the growth of innovation offshoring. It come because of lowering of transaction cost

Transaction cost
It is refering to the cost of searching,negotiating, enforcing and agreements & contravts in world of imperfect information. There two types which are coordination cost and opportunism cost.

Impact of Globalisation and Transaction cost
Reduction intransaftion costs encouraged offshoring and outsourcing

Factors encouraging innovation offshoring
Improve technological linkages, growth of market technology, growth of expertise and capability overseas and growth of high tech clusters in Asia

Enablers facillitating innovation management
Change im corporate innovation management, increased specialisation through modularisation, increased availability and mobility of knowledge and globalisation of markets for technology

Features of global innovation network
Structure,linkages, geography, hi tech sectors, governance and collaborative nature

Chapter 13 Green Innovation

Types of green innovation
components, sub system and system

Terminology green innovation
Eco innovational, environmental innovation, sustainable innovation and green innovation

Drivers of green innovation
Technology push, regulatory push and market pull

Barris to green innovation
Technological externalities and environmental enxternalities

Types of barriers
Economic, technological and institutional barriers

Strategies for green innovation
Niche, endorsement and partnership strategy

Chapter 14 National innovation system

System of innovation
National,regional and sector innovation system

Role of institute
Goverment, science and technology, educational, industry and financial institute

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NURUL HUDA NAJHAH BINTI ZULKEFLI (E16A0225

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NURUL HUDA NAJHAH BINTI ZULKEFLI (E16A0225

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C12:INNOVATION OFFSHORING
1)DEFINITION
=refers to the way in which 'some innovation-related activities are carried out by third-parties located oversea'

2)GLOBALISATION & TRANSACTION COSTS

Globalisation=key factor behind the growth of innovation offshoring

Transaction costs are the costs of
-searching
-enforcing
-agreements&contracts in a world of imperfect information
-negotiating

3)TYPES OF TRANSACTION COSTS
-coordiantion costs
-opportunism costs

4)IMPACTS OF GLOBALISATION&TRANSACTION COSTS
-outsourcing
-offshoring

5)FACTORS ENCOURAGING INNOVATION OFFSHORING
-improved technology linkages
-growth of markets for technology
-growth of high tech clusters in Asia
-growth of expertise and capability overseas

6)ENABLERS FACILITATING INNOVATION NETWORKS
-structures
-linkages
-geography
-Hi-tech sectors
-governance
-collaborative future

C13:GREEN INNOVATION

1)TYPES OF GREEN INNOVATION
-components
-sub-system/modular
-system

2)TERMINOLOGY OF GREEN INNOVATION
-eco-innovation
-environmental innovation
-sustainable innovation
-green innovation

THE PORTER'S HYPOTHESIS
"environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production,"

3)DRIVERS OF GREEN INNOVATION
-technology push
-regulatory push
-market pull

4)BARRIERS OF GREEN INNOVATION
-technological externalities
-environmental externalities

types of barriers-economic
-technological
-institutional

5)STRATEGIES FOR GREEN INNOVATION
-niche strategy
-endorsement strategy
-partnership strategy

C14=NATIONAL INNOVATION SYSTEMS

BRITAIN'S EARLY RECORD OF INNOVATION
"...not just a succession of remarkable inventions in the textiles and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space

C.Freeman (1987)
Systems of innovation
-national innovation systems
-regional innovation systems
-sector innovation systems

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CHAPTER 12: INNOVATION OFFSHORING

Definition: it refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’.

Globalisation: key factor behind the growth
Transaction costs: searching, negotiating, enforcing and agreements and contracts (coordination costs & opportunism cost)

The Impacts of Globalisation and Transaction costs:
• Outsourcing: organisation re-structure where increasingly supply/value chain activities by third parties
• Offshoring: geographical re-location of the supply/value chain overseas

Factors Encourage Offshoring:
• Improved technological linkages
• Growth of markets for technology
• Growth of expertise and capability overseas

Enablers Facilitating Offshoring:
• Changes in corporate innovation management
• Increased specialisation through modularisation
• Globalisation of markets for technology

Global Innovation Networks: collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purpose of fostering innovation activities (structure, linkage, geography, hi-tech sector, governance and collaborative nature)

CHAPTER 13: GREEN INNOVATION

Types:
• Component
• Sub-system/modular
• System

Terminalogy:
• Eco-innovation
• Environmental innovation
• Sustainable innovation
• Green innovation

Drivers of Green Innovation:
1. Technology push
• Material efficiency
• Energy efficiency
• Improved product quality

2. Market pull
• Market share
• Competition
• Customer demand
• New markets
• Image

3. Regulatory push
• Existing environment
• Legislation
• Standards
• Future regulations

Barriers: (technological & environmental externalities)
• Economic
• Technological
• Institutional

Strategies:
• Niche
• Endorsement
• Partnership

CHAPTER 14: NATIONAL INNOVATION SYSTEM

System of Innovations:
• National innovation systems
• Regional innovation system
• Sector innovation system

Institutions:
I. Firms
II. Government
III. Financial institutions
IV. Industry
V. Education institutions
VI. Science & technology

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SITI FADZLIANA BINTI MOHD FADZIL (E16A0261)

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SITI FADZLIANA BINTI MOHD FADZIL (E16A0261)

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CHAPTER 12: INNOVATION OFFSHORING

=some innovation-related activities are carried out by third parties located overseas.

Impact of Globalisation on Transaction costs

1. faster growth rate of international trade in relation to production

2. the emergence of genuine competition from emerging nations of Asia and latin America.

3. increased mobility of capital

4. rapid internationalization of financial market continues. Note how government of Jamaica has been able to borrow on the international markets. This may impact on exchange rate and interest rates locally.

Differentiate and distinguish between outsourcing and offshoring;

Reductions in transaction costs have encouraged the outsourcing like organisation re-structuring where increasingly supply/value chain activities are carried out by third parties. Besides, offshoring which is the geographical re-location of the supply/value chain overseas.

Appreciate and understand the concept of innovation offshoring;

Offshoring began with the movement of production activities overseas. That mainly in search of lower costs, led to creation of Global Production Networks, R & D, Latterly begun to see R & D moving offshore and hence Innovation Offshoring.

Distinguish between global innovation networks and global production networks;

Global Innovation Networks is collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Global production network is one whose interconnected nodes and links extend spatially across national boundaries and, in so doing, integrates parts of disparate national and subnational territories.

CHAPTER 13: GREEN INNOVATION

green innovation, Design is pushing the progress of mankind and caring the relationship between man and nature and creating a reasonable way of life. According to history, the choice of green design is inevitable, only green design can achieve the harmony of natural environment, social culture, and economic development, therefore, the development of green design is essential.

Type of green innovation

The driver of the green innovation is by technology push like the technological become advances that associated with, Material efficiency, Energy efficiency and Improved product quality. Besides, regulatory push like existing environment legislation, standard and future regulation. Moreover, market pull. Market pull included with market share, competition with other entrepreneur, customer demand, new market and the changes of image associated with groups of consumers such as Green idealists and Trend setters.

the barriers green innovation

there 3 type of barrier in green innovation Economic barriers, Technological barriers, Institutional barriers.

CHAPTER 14: NATIONAL INNOVATION SYSTEMS

Introduction The concept of institution-used in a very comprehensive sense-plays a key role in all definitions of Innovation Systems. The main purpose of this study is to address the main elements of National Innovation Systems from an Institutional framework. The main components of the NIS, how the organizations and institutions are defined, and what functions do they have, and why a NIS differs on the structure and setting of these components are the questions aimed to be answered. Therefore, a brief explanation of the definition, concept and emergence of NIS were conducted. The main objective of this analysis is to understand how and why the institutional settings and organizational structures explain the main characteristics of NIS.

Dimensions of Systems Approach is System boundaries, Organization, Institutions, Knowledge, Dynamics, Outcome / performance and Methodology. Institutions are sets of common habits, routines, established practices, rules, or laws that regulate the relations and interactions between individuals, groups and organisations. They are the rules of the game. Examples of important institutions in SIs are patent laws and norms influencing the relations between universities and Firms. While Organizations are formal structures with an explicit purpose and they are consciously created. They are players or actors. Some important organisations in SIs are companies (which can be suppliers, customers or competitors in relation to other companies), universities, venture capital organisations and public innovation policy agencies.

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CHAPTER 12 INNOVATION OFFSHORING
Definition:
Some innovation related activities are carried  out by third parties located overseas
Globalisation
- A key factor behind the growth of innovation offshoring
- Has come about because of the lowering of transaction costs
Transaction costs are the costs of :
- Searching
- Negotiating
- Enforcing
- Agreements & contracts in a world of imperfect information
2 types of transaction costs
1) Coordination costs
2) Opportunism costs
Impact of Globalisation & Transaction costs
Reduction in transaction costs have encouraged :
1) Outsourcing
2) Offshoring
(Industry sector led this process : textiles & electronics)
Factors encouraging Innovation Offshoring
- Improve technological linkages
- Growth of market for technology
- Growth of high tech clusters in Asia
- Growth of expertise & capability overseas
Enablers facilitating Innovation Offshoring
- Change in Corporate Innovation Management
- Increased specialisation through modularisation
- Increased availability & mobility of knowledge
- Globalisation of markets for technology
Modularisation
- Modular product architecture
- Result in interchangeable modules
- Allow outside firms give responsibility for design/development
Global Innovation Networks :
Collaboration & interaction between different firms & organisations producing & exploiting new knowledge in a global scale for purposes of fostering innovation activities (EU, 2010)
Features of Global Innovation Network
- Structure
- Linkages
- Geography
- Hi tech sectors
- Governance
- Collaborative nature

CHAPTER 13 GREEN INNOVATION
Types of Green Innovation
- Component
- Sub system/modular
- System
Terminology green innovation
- Eco innovational
- Environmental innovation
- Sustainable innovation
- Green innovation
Drivers of Green Innovation
- Technology push
- Regulatory push
- Market pull
Barriers to Green Innovation
- Technological externalities
- Environmental externalities
Types of barriers
- Economic barriers
- Technological barriers
- Institutional barriers
Strategies for Green Innovation
- Niche strategy
- Endorsement strategy
- Partnership strategy

CHAPTER 14 NATIONAL INNOVATION SYSTEMS
Systems of innovation
- National innovation systems
- Regional innovation systems
- Sector innovation system
Institutions
- Financial institutions
- Industry
- Educational institutions
- Science & technology institutions
(All institutional relate to government & firms

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Chapter 12 discussed on Innovation Offshoring topic. It is a site way in which some innovation-related activities are carried out by the third parties that located overseas.  Innovation offshoring involves the globalisation and transaction costs that give the impacts of outsourcing and offshoring. Outsourcing is the organisation re-structuring where the value chain are carried out by the third parties Meanwhile, offshoring is the geographical re-location of the supply. Innovation offshoring is being encouraged due to the improved technological linkages and the growth of markets for technology. Other than that, growth of high technology clusters in Asia and growth of expertise and capability overseas are also the factors that support this innovation.

Chapter 13 discussed on green innovation topic. Green innovation which also called eco-innovation is the innovation that consists of new or modified products, processes, techniques, practices, organizations, markets and systems to avoid or reduce environmental harms. Eco-innovation is driven by technology push, regulatory push and also the market pull. Technology push comprises of product quality, material and energy efficiency and the product palette. Meanwhile the regulatory push involves the existing environment, legislation according to the Act, standards and the may be the future regulation. Market pull comprises of the market share, competition by other company, customer demand and also new markets. Thus, strategies is important to develop the eco-innovation in order to undergo the hurdles. The strategies include the niche strategies, endorsement strategies and also the partnership strategies.

Chapter 14 discussed on National Innovation Systems topic. Basically the systems of innovation comprises of national innovation system, regional innovation system and sector innovation system. The national innovation system approach stresses that the flows of technology and information among people, enterprises and institutions are the key to the innovative process. While regional innovation system is more complex as it focusses also on actors not directly involved in innovation activities. The key variables are the actor constellations and their modes of coordination that characterize the regional innovation system. Last but not least, sector innovation system which is based on knowledge and technologies, actors and networks and institutions. Sector innovation system have a knowledge base, technologies, inputs and a potential demand. They are composed of a set of agents carrying out market and non-market interactions for the creation, development and diffusion of new sectoral products.

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Please do some summary for Chapter 12,13 and 14 base on your owned words and understanding.

The summary not exceed then 400 words.

Last submission on this Thursday 7 Jun 2018. Before 11.59 pm.

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Chapter 12: Innovation offshoring
Definition:
refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’
Globalisation
- lowering the transaction costs(searching, negotiating and enforcing etc.)
Types of transaction costs
- Coordination costs
- Opportunism costs
Reduction in transaction costs has encouraged:
- Outsourcing
- Offshoring
Offshoring:
- Began with the movement of production activities overseas

- Mainly in search of lower costs

e.g. textiles and electronics
Factors encouraging Innovation Offshoring
- Improved technological linkages

i.e. electronification

- Growth of markets for technology

- Growth of high tech clusters in Asia

- Growth of expertise and capability overseas

i.e. through technological catch-up and upgrading
Modularisation
- Facilitates ‘de-coupling’ in the production of different modules
Global Innovation Networks
- collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities.

Chapter 13: Green Innovation
Types of Green Innovation
•Component

•Sub-system/modular

•System
Terminology of Green Innovation
•Eco-innovation/Ecological innovation

•Environmental innovation

•Sustainable innovation

•Green innovation
The Porter Hypothesis
- Environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production
Technology push
Technological advances associated with:

•Material efficiency

•Energy efficiency

•Improved product quality
Barriers to green innovation
The ‘double’ hurdle:

•Technological externalities

i.e. the problem appropriability

•Environmental externalities

i.e. unattributed external (social) costs that the polluter does not pay
Strategies for Green Innovation
•Niche strategy

•e.g. Volvo Bus

•Endorsement strategy

•e.g. Hollywood and the Toyota Prius

•Partnership strategy

•Coca-Cola and Heinz and the development of the PlantBottleÔ

Chapter 14: National Innovation Systems
Systems of innovation
•National innovation systems

i.e. a country specific system such as the national innovation system of the UK or Japan

•Regional innovation systems

i.e. an innovation based on a specific location or place such as Silicon Valley in California or Motor Sport Valley in Oxfordshire

•Sector innovation system

i.e. an industry specific innovation system such as those of the pharmaceutical or aerospace industries

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Chapter 12 : Innovation Offshoring

Definition : refers to the way in which ‘some innovation-related activities are carried out by third parties located overseas’

Globalisation & Transaction costs:

Globalisation :

-key factor behind the growth of innovation offshoring

-come about because of the lowering of transaction costs

Transaction costs:

-are the costs of:

a)searching

b)negotiating

c)enforcing

d)agreements and contracts in a world of imperfect information

-2 types of transaction costs :

a) Coordination costs

b)Opportunism costs

Impact of Globalisation and Transaction costs :

-Reductions in transaction costs have encouraged:

a)Outsourcing

i.e. organisation re-structuring where increasingly supply/value chain activities are carried out by third parties

b)Offshoring

i.e. the geographical re-location of the supply/value chain overseas

Offshoring:

-Began with the movement of production activities overseas

-Mainly in search of lower costs

-Led to creation of Global Production Networks

-R & D generally retained at home

Factors encouraging Innovation Offshoring:

-Improved technological linkages

-Growth of markets for technology

-Growth of high tech clusters in Asia

-Growth of expertise and capability overseas

Enablers facilitating Innovation Offshoring:

-Changes in Corporate Innovation Management

-Increased specialisation through modularisation

-Increased availability and mobility of knowledge

-Globalisation of markets for technology

Modularisation:

-Modular product architecture

-Use of “de-composable building blocks” Ernst (2005)

-Results in interchangeable modules

-Facilitates ‘de-coupling’ in the production of different modules

-Allows outside firms to be given responsibility for design/development of complete modules

Global Innovation Networks :

Definition : collaborations and interactions between different firms and organisations producing and exploiting new knowledge in a global scale for purposes of fostering innovation activities

Features of Global Innovation Networks :

-Structure

-Linkages

-Geography

-Hi-tech sectors

-Governance

-Collaborative nature

Chapter 13 : Green Innovation

Types :

-Component

-Sub-system/modular

-System

Terminology :

-Eco-innovation/Ecological innovation

-Environmental innovation

-Sustainable innovation

-Green innovation

Drivers :

a)Technology push:

-Material efficiency

-Energy efficiency

-Improved product quality

b)Market pull:

-Green idealists

-Trend setters

c)Regulatory push:

-Command and control instruments

-Market-based instruments

Barriers:

-Technological externalities

-Environmental externalities

-Types of barrier:

a)Economic barriers

b)Technological barriers

c)Institutional barriers

Strategies :

-Niche strategy

-Endorsement strategy

-Partnership strategy

The Porter hypothesis : environmental regulation represents a positive opportunity for innovation because it would induce firms to innovate in order to reduce the costs of compliance and production.

Chapter 14: National Innovation Systems

Systems of innovation :

-National innovation systems

-Regional innovation systems

-Sector innovation system

Institution :

-Firms

-Government

-Financial institutions

-Industry

-Education institutions

-Science and technology

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CHAPTER 12: INNOVATION OFFSHORING

Innovation offshoring is refers to the way in which is some innovation-related activities are carried out by third parties located overseas.  Offshoring activities usually at the lower costs such as textile sector that led to Global Production Networks which influence by some features which are structure linkages, geography, hi-tech sectors, governance and collaborative nature for example is Samsung. The factors that encourage innovation offshore are improved technological linkages, growth of markets for technology, growth of high tech clusters in Asia and growth of expertise and capability overseas. It able facilitate by changes in Corporate Innovation Management, increased specialization through modulations, increased availability and mobility of knowledge and globalization of markets for technology. Next is globalization is due to lowering of transaction costs and transaction coats due to cost of searching, negotiating, enforcing and agreements and contracts in a world of imperfect information with two type which are coordination cost and opportunism cost. This encourage to outsourcing and offshoring. Then s modulations that facilitates coupling in the production of different modules.

CHAPTER 13: GREEN TECHNOLOGY

Green innovation differentiate with component, sub-system and system. The terminology of green innovation are Eco-innovation/Ecological innovation, Environmental innovation, Sustainable innovation and Green innovation. The drivers of green innovation are technology push that associated with material efficiency, energy efficiency and improved product quality, regulatory push associated with command and control instruments and markets-based instruments and lastly is market pull associated with green idealists and trend setters. The barriers to green innovation are technological externalizes and environmental externalizes and also with the type of barriers are economic, technological and institutional.  Lastly the strategies for green innovation are niche strategy, endorsement strategy and partnership strategy.

CHAPTER 14: NATIONAL INNOVATION SYSTEM

National innovation system based on Britain’s record is Not just a succession of remarkable inventions in the textile and iron industries. Rather it can be attributed to a unique combination of interacting social and economic and technical changes within the national economic space. The systems of innovation are national innovation systems, regional innovation systems and sector innovation system. The firms are government, science and technology institutional, educational institutional, industry and financial institutions.