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Customer - Driven Innovation in the Electrical, Optical and ICT Industry

Author

Listed:
  • Thomas Cleff

    (Pforzheim University, Germany, ZEW Centre for European Economic Research, Mannheim, Germany)

  • Christoph Grimpe

    (ZEW Centre for European Economic Research, Mannheim, Germany, Catholic University of Leuven, Belgium, University of Zurich, Switzerland)

  • Christian Rammer

    (ZEW Centre for European Economic Research, Mannheim, Germany)

Abstract

Before being adopted internationally, successful innovation designs tend to have been preferred in one particular country or region. These countries or regions can subsequently be labelled as Lead Markets. This paper employs a Lead Market approach to assess for each of the 25 European Union member states (EU-25) its likelihood that locally preferred innovation designs in the Electrical/Optical/ICT Industry become successful in other countries. A system of five particular demand- and country-specific attributes - the so called Lead Market factors – is regarded as critical for the probability of the market becoming a Lead Market: price advantage, demand advantage, export advantage, transfer advantage and market structure advantage. The aim of this paper is to identify and operationalise indicators to measure and compare the Lead Market properties at international level. The indicators used are taken from the Community Innovation Surveys (CIS-3 and CIS-4), the Eurostat/OECD PPP and Expenditure Database at BH level, the UNCTAD FDI-Database, the EU Business Demography Statistics, and the Eurostat Foreign Trade Database (Comext). Based on the Lead Market analysis, implications for policy makers are outlined.

Suggested Citation

  • Thomas Cleff & Christoph Grimpe & Christian Rammer, 2009. "Customer - Driven Innovation in the Electrical, Optical and ICT Industry," Interdisciplinary Management Research, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 5, pages 651-682.
    • Handle: RePEc:osi:journl:v:5:y:2009:p:651-682
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    References listed on IDEAS

    as
    1. Marian Beise & Thomas Cleff, 2003. "Assessing the Lead Market Potential of Countries for Innovation Projects," Discussion Paper Series 142, Research Institute for Economics & Business Administration, Kobe University.
    2. Cleff, Thomas & Grimpe, Christoph & Rammer, Christian, 2007. "The role of demand in innovation: A lead market analysis for high-tech industries in the EU-25," ZEW Dokumentationen 07-02, ZEW - Leibniz Centre for European Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Lead Markets; innovation diffusion; European Union; sectoral analysis;
    All these keywords.

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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