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Harnessing soft innovation resources leads to neo open innovation

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  • Tou, Yuji
  • Watanabe, Chihiro
  • Moriya, Kuniko
  • Neittaanmäki, Pekka

Abstract

Advancement of the digital economy has transformed the concept of the growth crossover in nations and firms, both concerning input and output. Advanced economies have been confronting a dilemma between input increases and output decreases. Contrary to traditional expectations, excessive increase in input has resulted in a productivity decline in output. A solution to this dilemma can only be expected by harnessing the vigor of soft innovation resources that lead to neo open innovation in the digital economy. This paper attempts to demonstrate this hypothetical view. Based on an empirical analysis of the development trajectories of 140 countries and 500 global ICT firms, dynamism, resulting in bipolarization between a virtuous cycle and a vicious cycle between input increases and productivity enhancement, was discovered. Furthermore, an empirical analysis focusing on the development trajectories of two world ICT leaders, Finland and Singapore, identified a mechanism of neo open innovation that assimilates soft innovation resources into a national production system. This mechanism can substitute for research and development (R&D) and removes structural impediments to growth while providing relief from the increasing burden of R&D investment. The above findings provide insightful suggestions for drafting a roadmap towards neo open innovation in the digital economy.

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  • Tou, Yuji & Watanabe, Chihiro & Moriya, Kuniko & Neittaanmäki, Pekka, 2019. "Harnessing soft innovation resources leads to neo open innovation," Technology in Society, Elsevier, vol. 58(C).
    • Handle: RePEc:eee:teinso:v:58:y:2019:i:c:s0160791x18303117
    DOI: 10.1016/j.techsoc.2019.01.007
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    References listed on IDEAS

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    1. Naveed, Kashif & Watanabe, Chihiro & Neittaanmäki, Pekka, 2018. "The transformative direction of innovation toward an IoT-based society - Increasing dependency on uncaptured GDP in global ICT firms," Technology in Society, Elsevier, vol. 53(C), pages 23-46.
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    6. Watanabe, Chihiro & Naveed, Kashif & Neittaanmäki, Pekka, 2015. "Dependency on un-captured GDP as a source of resilience beyond economic value in countries with advanced ICT infrastructure: Similarities and disparities between Finland and Singapore," Technology in Society, Elsevier, vol. 42(C), pages 104-122.
    7. Watanabe, Chihiro & Naveed, Kashif & Tou, Yuji & Neittaanmäki, Pekka, 2018. "Measuring GDP in the digital economy: Increasing dependence on uncaptured GDP," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 226-240.
    8. Watanabe, Chihiro & Naveed, Nasir & Neittaanmäki, Pekka, 2019. "Digitalized bioeconomy: Planned obsolescence-driven circular economy enabled by Co-Evolutionary coupling," Technology in Society, Elsevier, vol. 56(C), pages 8-30.
    9. Watanabe, Chihiro & Naveed, Kashif & Neittaanmäki, Pekka, 2017. "ICT-driven disruptive innovation nurtures un-captured GDP – Harnessing women's potential as untapped resources," Technology in Society, Elsevier, vol. 51(C), pages 81-101.
    10. Watanabe, Chihiro & Tou, Yuji & Neittaanmäki, Pekka, 2018. "A new paradox of the digital economy - Structural sources of the limitation of GDP statistics," Technology in Society, Elsevier, vol. 55(C), pages 9-23.
    11. Watanabe, Chihiro & Naveed, Kashif & Neittaanmäki, Pekka & Fox, Brenda, 2017. "Consolidated challenge to social demand for resilient platforms - Lessons from Uber's global expansion," Technology in Society, Elsevier, vol. 48(C), pages 33-53.
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    Cited by:

    1. Watanabe, Chihiro & Akhtar, Waleed & Tou, Yuji & Neittaanmäki, Pekka, 2021. "Amazon's New Supra-Omnichannel: Realizing Growing Seamless Switching for Apparel During COVID-19," Technology in Society, Elsevier, vol. 66(C).
    2. Watanabe, Chihiro & Akhtar, Waleed & Tou, Yuji & Neittaanmäki, Pekka, 2022. "A new perspective of innovation toward a non-contact society - Amazon's initiative in pioneering growing seamless switching," Technology in Society, Elsevier, vol. 69(C).
    3. Skare, Marinko & PORADA-ROCHON, Małgorzata, 2022. "The role of innovation in sustainable growth: A dynamic panel study on micro and macro levels 1990–2019," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    4. Watanabe, Chihiro & Tou, Yuji & Neittaanmäki, Pekka, 2020. "Institutional systems inducing R&D in Amazon- the role of an investor surplus toward stakeholder capitalization," Technology in Society, Elsevier, vol. 63(C).
    5. Tou, Yuji & Watanabe, Chihiro & Neittaanmäki, Pekka, 2020. "Fusion of technology management and financing management - Amazon's transformative endeavor by orchestrating techno-financing systems," Technology in Society, Elsevier, vol. 60(C).
    6. Zhang, Wei & Zhang, Ting & Li, Hangyu & Zhang, Han, 2022. "Dynamic spillover capacity of R&D and digital investments in China's manufacturing industry under long-term technological progress based on the industry chain perspective," Technology in Society, Elsevier, vol. 71(C).
    7. Watanabe, Chihiro & Akhtar, Waleed & Tou, Yuji & Neittaanmäki, Pekka, 2021. "Amazon's initiative transforming a non-contact society - Digital disruptionleads the way to stakeholder capitalization," Technology in Society, Elsevier, vol. 65(C).
    8. Tou, Yuji & Watanabe, Chihiro & Moriya, Kuniko & Naveed, Nasir & Vurpillat, Victor & Neittaanmäki, Pekka, 2019. "The transformation of R&D into neo open innovation- a new concept in R&D endeavor triggered by amazon," Technology in Society, Elsevier, vol. 58(C).
    9. Mellal, Mohamed Arezki, 2020. "Obsolescence – A review of the literature," Technology in Society, Elsevier, vol. 63(C).
    10. Naveed, Nasir & Watanabe, Chihiro & Neittaanmäki, Pekka, 2020. "Co-evolutionary coupling leads a way to a novel concept of R&D - Lessons from digitalized bioeconomy," Technology in Society, Elsevier, vol. 60(C).

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