Share:


Evaluation of regional innovation capability: an empirical study on major metropolitan areas in Taiwan

    Yuan-Fung Dai Affiliation
    ; Pin-Yu Chu Affiliation
    ; Shih-Tong Lu Affiliation
    ; Wei Tong Chen Affiliation
    ; Yu-Chuen Tien Affiliation

Abstract

Establishing an analytical structure to classify proper criteria and identify the relative importance among them in different cities or municipalities for selection and resource allocations of government-sponsored regional innovation is crucial. In this paper, we construct an index system through the subject views of experts to evaluate regional scientific and technological innovation capabilities and collect empirical data to compare the six special municipalities in Taiwan by employing a hybrid CFPR-VIKOR approach. The research results show that a structural evaluation system is a basis for regional innovation policy. The need for fundamental data and regional resources assessments is apparent, and the role of the central government needs to be adapted to rapid changes. Through the design and adjustment of the regulatory system, decision-makers can decide how to allocate resources and further contribute to the development of regional innovation. We demonstrate that our approach can be extended to the regional innovation policies in the public sector.


First published online 10 June 2022

Keyword : regional innovation system, innovation capability, science and technology, multi-criteria decision-making, CFPR-VIKOR, Taiwan

How to Cite
Dai, Y.-F., Chu, P.-Y., Lu, S.-T., Chen, W. T. ., & Tien, Y.-C. (2022). Evaluation of regional innovation capability: an empirical study on major metropolitan areas in Taiwan. Technological and Economic Development of Economy, 28(5), 1313–1349. https://doi.org/10.3846/tede.2022.16988
Published in Issue
Sep 12, 2022
Abstract Views
908
PDF Downloads
746
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Abbasi, F., Hajihoseini, H., & Haukka, S. (2011). Use of virtual index for measuring efficiency of innovation systems: A cross-country study. International Journal of Technology Management & Sustainable Development, 9(3), 195–212. https://doi.org/10.1386/tmsd.9.3.195_1

Abbasi, F., Motavasseli, M., Zali, M. R., Faghih, N., & Meigounpoory, M. R. (2019). How does the technological innovation come from? A multilevel framework. International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies, 10(4), 527–550.

Artz, K. W., Norman, P. M., Hatfield, D. E., & Cardinal, L. B. (2010). A longitudinal study of the impact of R&D, patents, and product innovation on firm performance. The Journal of Product Innovation Management, 27(5), 725–740. https://doi.org/10.1111/j.1540-5885.2010.00747.x

Arungu-Olende, S. (2007). Developing knowledge infrastructure and networks for sustainable development. In Integrating science & technology into development policies: An international perspective (pp. 101–106). OECD Publishing. https://doi.org/10.1787/9789264032101-12-en

Asheim, B. T., & Coenen, L. (2005). Knowledge bases and regional innovation systems: Comparing Nordic clusters. Research Policy, 34(8), 1173–1190. https://doi.org/10.1016/j.respol.2005.03.013

Asheim, B. T., Smith, H. L., & Oughton, C. (2011). Regional innovation systems: Theory, empirics, and policy. Regional Studies, 45(7), 875–891. https://doi.org/10.1080/00343404.2011.596701

Audretsch, D. B., & Belitski, M. (2017). Entrepreneurial ecosystems in cities: Establishing the framework conditions. The Journal of Technology Transfer, 42(5), 1030–1051. https://doi.org/10.1007/s10961-016-9473-8

Baker, N. R. (1974). R&D project selection models: An assessment. IEEE Transactions on Engineering Management, EM-21(4), 165–171. https://doi.org/10.1109/TEM.1974.6448498

Belussi, F., Sammarra, A., & Sedita, S. R. (2010). Learning at the boundaries in an “open regional innovation system”: A focus on firms’ innovation strategies in the Emilia Romagna life science industry. Research Policy, 39, 710–721. https://doi.org/10.1016/j.respol.2010.01.014

Braczyk, H. J., Cooke, P., & Heidenreich, M. (1998). Regional innovation systems: The role of governances in a globalized world. UCL Press.

Bramwell, A., & Wolfe, D. (2008). Universities and regional economic development: The entrepreneurial university of Waterloo. Research Policy, 37(8), 1175–1187. https://doi.org/10.1016/j.respol.2008.04.016

Brekke, T. (2021). What do we know about the university contribution to regional economic development? A conceptual framework. International Regional Science Review, 44(2), 229–261. https://doi.org/10.1177/0160017620909538

Buesa, M., Heijs, J., & Baumert, T. (2010). The determinants of regional innovation in Europe: A combined factorial and regression knowledge production function approach. Research Policy, 39(6), 722–735. https://doi.org/10.1016/j.respol.2010.02.016

Capello, R., Camagni, R., Chizzolini, B., & Fratesi, U. (2008). Modelling regional scenarios for the enlarged Europe: European competitiveness and global strategies. Springer-Verlag.

Carayannis, E., & Grigoroudis, E. (2016). Quadruple innovation helix and smart specialization: Knowledge production and national competitiveness. Foresight and STI Governance, 10(1), 31–42. https://doi.org/10.17323/1995-459x.2016.1.31.42

Carrincazeaux, C., & Gaschet, F. (2015). Regional innovation systems and economic performance: Between regions and nations. European Planning Studies, 23(2), 262–291. https://doi.org/10.1080/09654313.2013.861809

Chen, K., & Guan, J. (2011). Mapping the functionality of China’s regional innovation systems: A structural approach. China Economic Review, 22(1), 11–27. https://doi.org/10.1016/j.chieco.2010.08.002

Christopherson, S., & Clark, J. (2007). Power in firm networks: What it means for regional innovation systems. Regional Studies, 41(9), 1223–1236. https://doi.org/10.1080/00343400701543330

Congress.gov. (2021). S.1260 – United States innovation and competition act of 2021. https://www.congress.gov/bill/117th-congress/senate-bill/1260

Cooke, P. (1992). Regional innovation systems: Competitive regulation in the new Europe. Geoforum, 23(3), 365–382. https://doi.org/10.1016/0016-7185(92)90048-9

Cooke, P., & Leydesdorff, L. (2006). Regional development in the knowledge-based economy: The construction of advantage. Journal of Technology Transfer, 31(1), 5–15. https://doi.org/10.1007/s10961-005-5009-3

Cooke, P., & Morgan, K. (1993). The network paradigm: New departures in corporate and regional development. Environment and Planning D: Society and Space, 11(5), 543–564. https://doi.org/10.1068/d110543

Cooke, P., Heidenreich, M., & Braczyk, H. J. (2004). Regional innovation systems: The role of governance in a globalized world. Routledge.

Cooke, P., Uranga, M. G., & Etxebarria, G. (1997). Regional innovation systems: Institutional and organizational dimensions. Research Policy, 26(4–5), 475–491. https://doi.org/10.1016/S0048-7333(97)00025-5

Crescenzi, R. & Rodríguez-Pose, A. (2013). R&D, socio-economic conditions and regional innovation in the U. S. Growth and Change, 44(2), 287–320. https://doi.org/10.1111/grow.12011

Dobrzanski, P., & Bobowski, S. (2020). The efficiency of R&D expenditures in ASEAN countries. Sustainability, 12(7), 1–26. https://doi.org/10.3390/su12072686

Edler, J, & Fagerberg, J. (2017). Innovation policy: what, why, and how. Oxford Review Economic Policy, 33(1), 2–23. https://doi.org/10.1093/oxrep/grx001

Etzkowitz, H., & Leydesdorff, L. (2000). The dynamics of innovation: From National Systems and ‘‘Mode 2’’ to a Triple Helix of university-industry-government relations. Research Policy, 29(2), 109–123. https://doi.org/10.1016/S0048-7333(99)00055-4

European Commission. (2014a). Research and innovation strategies for smart specialization: Cohesion policy 2014–2020. Office of the European Union. https://op.europa.eu/en/publication-detail/-/publication/ced10250-409e-4d5a-b791-7d76e839b60c

European Commission. (2014b). The European Union explained: Research and innovation. Office of the European Union.

European Commission. (2017). Strengthening innovation in Europe’s regions: Strategies for resilient, inclusive and sustainable growth. Office of the European Union. https://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A52017DC0376

European Commission. (2018). The German high-tech strategy (Germany): Case study report. Office of the European Union.

Fagerberg, F. & Hutschenreiter, G. (2020). Coping with societal challenges: Lessons for innovation policy governance. Journal of Industry, Competition and Trade, 20(2), 279–305. https://doi.org/10.1007/s10842-019-00332-1

Farinha, L., Faria, J., & Ferreira, J. (Eds.). (2019). Special issue on: “Triple He|lix dynamics for innovation and regional growth”. Global Business and Economics Review, 21(3/4), 267–277.

Fattahi, A., Bayat, N., Amiri, A., & Nemati, R. (2013). Measurement and priority social sustainable in rural regions in Township Delfan, with using a multiple criteria model Vikor (case study: Northern Khave rural subdistrict). Regional Planning, 3(11), 65–78. https://www.sid.ir/en/journal/ViewPaper.aspx?id=363810

Fernandes, C., Farinha, L., Ferreira, J. J., Asheim, B., & Rutten, R. (2021). Regional innovation systems: what can we learn from 25 years of scientific achievements? Regional Studies, 55(3), 377–389. https://doi.org/10.1080/00343404.2020.1782878

Freeman, C. (1995). The national system of innovation in historical perspective. Cambridge Journal of Economics, 19(1), 5–24. https://doi.org/10.1093/oxfordjournals.cje.a035309

Freeman, C. (2002). Continental, national and subnational innovation systems: Complementarity and economic growth. Research Policy, 31(2), 191–211. https://doi.org/10.1016/S0048-7333(01)00136-6

Fritsch, M, & Franke, G. (2004). Innovation, regional knowledge spillovers and R&D cooperation. Research Policy, 33(2), 245–255. https://doi.org/10.1016/S0048-7333(03)00123-9

Fritsch, M., & Slavtchev, V. (2011). Determinants of the efficiency of regional innovation systems. Regional Studies, 45(7, SI), 905–918. https://doi.org/10.1080/00343400802251494

Goel, V. K., Koryukin, E., Bhatia, M., & Agarwal, P. (2004). Innovation systems: World Bank support of science and technology development. World Bank. https://doi.org/10.1596/0-8213-5837-5

Haberla, M. (2018). Cluster policy in Japan: Experiences and prospects. In M. H. Bilgin, H. Danis, E. Demir, & U. Can (Eds.), Eurasian economic perspectives (pp. 153–165). Springer. https://doi.org/10.1007/978-3-319-67916-7_10

Hall, B., Mairesse, J., & Mohnen, P. (2010). Measuring the returns to R&D. In B. H. Hall, & N. Rosenberg (Eds.), Handbook of the economics of innovation, vol. 2 (pp. 1033–1082). Elsevier. https://doi.org/10.1016/S0169-7218(10)02008-3

Henriksen, A. D., & Traynor, A. J. (1999). A practical R&D project-selection scoring tool. IEEE Transactions on Engineering Management, 46(2), 158–170. https://doi.org/10.1109/17.759144

Herrea-Viedma, E., Herrera, F., Chiclana, F., & Luque, M. (2004). Some issues on consistency of fuzzy preference relations. European Journal of Operational Research, 154(1), 98–109. https://doi.org/10.1016/S0377-2217(02)00725-7

Ho, M. H. C. (2009). How regional innovation systems play a relative competitive role within knowledge networks. European Planning Studies, 17(12), 1881–1905. https://doi.org/10.1080/09654310903322389

Hsu, Y. G., Tzeng, G. H., & Shyu, J. Z. (2003). Fuzzy multiple criteria selection of government-sponsored frontier technology R&D projects. R&D Management, 33(5), 539–551. https://doi.org/10.1111/1467-9310.00315

Huang, N. Y. (2021). Analyze six municipalities innovation lab and startup hub (Part 1): By geographical region. https://www.taipeiecon.taipei/article_cont.aspx?MmmID=1202&MSid=1126042303640317037

Hwangbo, W, & Park, Y. II (2021). A study on the policy instrument for regional innovation system construction in the Mekong Delta region. Asian Journal of Innovation and Policy, 10(1), 39–67. https://www.koreascience.or.kr/article/JAKO202116553543908.pdf

Imani, B., Farshi, R., & Hashemi, M. R. (2017). Studying and analyzing regional inequalities: (case study) Cities of Ardabil Province, Iran 2006–2011. Journal of Geographical Sciences, 17(46), 93–117. https://www.sid.ir/en/Journal/ViewPaper.aspx?ID=608393

Intarakumnerd, P., & Goto, A. (2018). Role of public research institutes in national innovation systems in industrialized countries: The cases of Fraunhofer, NIST, CSIRO, AIST, and ITRI. Research Policy, 47(7), 1309–1320. https://doi.org/10.1016/j.respol.2018.04.011

Kitagawa, F. (2005). Regionalization of innovation policies: The case of Japan. European Planning Studies, 13(4), 601–618. https://doi.org/10.1080/09654310500107332

Klein, M., & Sauer, A. (2016). Celebrating 30 years of innovation system research: What you need to know about innovation systems (Hohenheim Discussion Papers No. 17-2016). Faculty of Business, Economics and Social Sciences, University of Hohenheim. https://doi.org/10.13140/RG.2.2.28484.83847

Kritikos, A. S. (2014). Entrepreneurs and their impact on jobs and economic growth. IZA World of Labor, 8, 1–10. https://doi.org/10.15185/izawol.8

Lau, A. K. W., & Lo, W. (2015). Regional innovation system, absorptive capacity and innovation performance: An empirical study. Technological Forecasting and Social Change, 92, 99–114. https://doi.org/10.1016/j.techfore.2014.11.005

Leitner, K. (2011). The effect of intellectual capital on product innovativeness in SMEs. International Journal of Technology Management, 53(1), 1–18. https://doi.org/10.1504/IJTM.2011.037235

Lengyel, B., & Leydesdorff, L. (2011). Regional innovation systems in Hungary: The failing synergy at the national level. Regional Studies, 45(5), 677–693. https://doi.org/10.1080/00343401003614274

Leydesdorff, L., & Fritsch, M. (2006). Measuring the knowledge base of regional innovation systems in Germany in terms of a Triple Helix dynamics. Research Policy, 35(10), 1538–1553. https://doi.org/10.1016/j.respol.2006.09.027

Li, X. (2015). Specialization, institutions and innovation within China’s regional innovation systems. Technological Forecasting and Social Change, 100(1), 130–139. https://doi.org/10.1016/j.techfore.2015.06.032

Liberatore, M. J. (1987). An extension of the analytic hierarchy process for industrial R&D project selection and resource allocation. IEEE Transactions on Engineering Management, EM-34(1), 12–18. https://doi.org/10.1109/TEM.1987.6498854

Lopes, J., Ferreira, J. J., & Farinha, L. (2019). Innovation strategies for Smart Specialisation (RIS3): Past, present and future research. Growth and Change, 50(1), 38–68. https://doi.org/10.1111/grow.12268

López-Rubio, P., Roig-Tierno, N., & Mas-Tur, A. (2020). Regional innovation system research trends: toward knowledge management and entrepreneurial ecosystems. International Journal of Quality Innovation, 6, 1–16. https://doi.org/10.1186/s40887-020-00038-x

Lundvall, B. A., Johnson, B., Andersen, E. S., & Dalum, B. (2002). National systems of production, innovation and competence building. Research Policy, 31(2), 213–231. https://doi.org/10.1016/S0048-7333(01)00137-8

Markard, J., & Truffer, B. (2008). Technological innovation systems and the multi-level perspective: Towards an integrated framework. Research Policy, 37(4), 596–615. https://doi.org/10.1016/j.respol.2008.01.004

Minarčíková, E. (2015, September). MCDM methods: Alternative for evaluation of regional innovation performance [Conference presentation]. European Conference on Innovation and Entrepreneurship (ECIE 2015). Genoa, Italy.

Ministry of Economic Affairs. (2020). 2019 Economic statistics annual the Republic of China. https://www.moea.gov.tw/Mns/dos/content/ContentLink.aspx?menu_id=9432

Ministry of the Interior. (2021). Statistical of Interior for the 4th week of 2019_population growth. http://www.stat.org.tw/data/asoctopic/%E4%BA%BA%E5%8F%A3%E6%88%90%E9%95%B7.pdf

Muller, E., & Zenker, A. (2001). Business services as actors of knowledge transformation: The role of KIBS in regional and national innovation systems. Research Policy, 30(9), 1501–1516. https://doi.org/10.1016/S0048-7333(01)00164-0

Muscio, A. (2006). From regional innovation systems to local innovation systems: Evidence from Italian industrial districts. European Planning Studies, 14(6), 773–789. https://doi.org/10.1080/09654310500496073

Nelson, R. (1993). National innovation systems: A comparative analysis. Oxford University Press.

OECD. (2015a). The innovation imperative: Contributing to productivity, growth and well-being. https://doi.org/10.1787/9789264239814-en

OECD. (2015b). OECD innovation strategy 2015: An agenda for policy action. https://www.oecd.org/sti/OECD-Innovation-Strategy-2015-CMIN2015-7.pdf

OECD. (2015c). OECD Science, technology and industry scoreboard 2015: Innovation for growth and society.

OECD. (2018). OECD reviews of innovation policy: Austria 2018. https://doi.org/10.1787/9789264309470-en

OECD/Eurostat. (2018). Oslo Manual 2018: Guidelines for collecting, reporting and using data on innovation (4 ed.). https://doi.org/10.1787/9789264304604-en

Oh, D. S., Phillips, F., Park, S., & Lee, E. (2016). Innovation ecosystems: a critical examination. Technovation, 54, 1–6. https://doi.org/10.1016/j.technovation.2016.02.004

Okamuro, H., & Nishimura, J. (2015). Local management of national cluster policies: Comparative case studies of Japanese, German, and French biotechnology clusters. Administrative Sciences, 5(4), 213–239. https://doi.org/10.3390/admsci5040213

Oksanen, K., & Ståhle, P. (2013). Physical environment as a source for innovation: investigating the attributes of innovative space. Journal of Knowledge Management, 17(6), 815–827. https://doi.org/10.1108/JKM-04-2013-0136

Opricovic, S. (1998). Multi-criteria optimization of civil engineering systems [PhD thesis]. Faculty of Civil Engineering, University of Belgrade, Serbia.

Opricovic, S., & Tzeng, G. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), 445–455. https://doi.org/10.1016/S0377-2217(03)00020-1

Paredes-Frigolett, H., Pyka, A., Pereira, J., Gomes, L. F. A. M. (2014). Ranking the performance of national innovation systems in the Iberian Peninsula and Latin America from a neo-Schumpeterian economics perspective (FZID Discussion Papers No. 95-2014). University of Hohenheim, Center for Research on Innovation and Services.

Pekkarinen, S., & Harmaakorpi, V. (2006). Building regional innovation networks: The definition of an age business core process in a regional innovation system. Regional Studies, 40(4), 401–413. https://doi.org/10.1080/00343400600725228

Pino, R. M., & Ortega, A. M. (2018). Regional innovation systems: Systematic literature review and recommendations for future research. Cogent Business & Management, 5(1), 1–17. https://doi.org/10.1080/23311975.2018.1463606

Poledníková, E., & Kashi, K. (2014, November). Using MCDM methods: Evaluation of regional innovation performance in the Czech Republic [Conference presentation]. ECMLG 2014 10th European Conference on Management Leadership and Governance. Zagreb, Croatia.

Porter, M., & Stern, S. (2001). Innovation: Location matters. MIT Sloan Management Review, 42(4), 28–36. https://sloanreview.mit.edu/article/innovation-location-matters/

Rodriguez-Pose, A, & Crescenzi, R. (2008). Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe. Regional Studies, 42(1), 51–67. https://doi.org/10.1080/00343400701654186

Saaty, T. L. (1977). A scaling method for priorities in hierarchical structures. Journal of Mathematical Psychology, 15(3), 234–281. https://doi.org/10.1016/0022-2496(77)90033-5

Schmidt, R. L., & Freeland, J. R. (1992). Recent progress in modeling R&D project selection process. IEEE Transactions on Engineering Management, 39(2), 189–201. https://doi.org/10.1109/17.141276

Sharif, N. (2006). Emergence and development of the National Innovation Systems concept. Research Policy, 35(5), 745–766. https://doi.org/10.1016/j.respol.2006.04.001

Spigel, B. (2017). The relational organization of entrepreneurial ecosystems. Entrepreneurship Theory and Practice, 41(1), 49–72. https://doi.org/10.1111/etap.12167

Stanković, J. J., Popović, Ž., & Marjanović, I. (2021). Assessing smartness and urban development of the European cities: An integrated approach of Entropy and VIKOR. In Y. I. Topcu, Ö. Özaydin, Ö. Kabak, & S. Ö. Ekici (Eds.), Multiple criteria decision making (pp. 69–97). Springer. https://doi.org/10.1007/978-3-030-52406-7_3

Stejskal, J., Hajek, P., & Prokop, V. (2018). Collaboration and innovation models in information and communication creative industries: The case of Germany. Journal of Information and Communication Technology, 17(2), 191–208. https://doi.org/10.32890/jict2018.17.2.2

Sun, Y., & Liu, F. (2010). A regional perspective on the structural transformation of China’s national innovation system since 1999. Technological Forecasting and Social Change, 77(8), 1311–1321. https://doi.org/10.1016/j.techfore.2010.04.012

Todtling, F, & Trippl, M. (2005). One size fits all? Towards a differentiated regional innovation policy approach. Research Policy, 34(8), 1203–1219. https://doi.org/10.1016/j.respol.2005.01.018

Trippl, M, & Tödtling, F. (2008). From the ivory tower to the marketplace: Knowledge organisations in the development of biotechnology clusters. Journal of Regional Analysis and Policy, 38(2), 159–175.

Ture, H., Dogan, S., & Kocak, D. (2019). Assessing Euro 2020 strategy using multi-criteria decision making methods: VIKOR and TOPSIS. Social Indicators Research, 142(2), 645–665. https://doi.org/10.1007/s11205-018-1938-8

Uyarra, E. (2010). Conceptualizing the regional roles of universities, implications and contradictions. European Planning Studies, 18(8), 1227–1246. https://doi.org/10.1080/09654311003791275

van Mierlo, B., Leeuwis, C., Smits, R., & Woolthuis, R. K. (2010). Learning towards system innovation: Evaluating a systemic instrument. Technological Forecasting and Social Change, 77(2), 318–334. https://doi.org/10.1016/j.techfore.2009.08.004

World Bank. (2014). World Bank group support for innovation and entrepreneurship: An independent evaluation. World Bank.

Yam, R. C. M., Lo, W., Tang, E. P. Y., & Lau, A. K. W. (2011). Analysis of sources of innovation, technological innovation capabilities, and performance: An empirical study of Hong Kong manufacturing industries. Research Policy, 40(3), 391–402. https://doi.org/10.1016/j.respol.2010.10.013

Zabala-Iturriagagoitia, J., Jiménez-Sáez, F., Castro-Martínez, E., & Gutiérrez-Gracia, A. (2007). What indicators do (or do not) tell us about Regional Innovation Systems. Scientometrics, 70(1), 85–106. https://doi.org/10.1007/s11192-007-0106-8

Zawislak, P. A., Fracasso, E. M., & Tello-gamarra, J. (2018). Technological intensity and innovation capability in industrial firms. Innovation and Management Review, 15(2), 189–207. https://doi.org/10.1108/INMR-04-2018-012

Zhao, S. L., Cacciolatti, L., Lee, S. H., & Song, W. (2015). Regional collaborations and indigenous innovation capabilities in China: A multivariate method for the analysis of regional innovation systems. Technological Forecasting and Social Change, 94, 202–220. https://doi.org/10.1016/j.techfore.2014.09.014