Does technological convergence imply convergence in markets? Evidence from the electronics industry

The role of information industry convergence in energy transition

To cope with global climate risks, promoting energy transformation has become a global consensus. China issued a reform policy in 2010 to promote the convergence of the three major information industries, namely broadcasting and television networks, telecommunications networks and the Internet (TPR policy). However, is the convergence of information industries able to promote energy transition? This study constructs a quasi-natural experimental framework using China's TPR policy as a representative case of industrial convergence. Using city-level panel data between 2003 and 2016 in China and a multi-period difference-in-differences model, this study examines the impact of TPR policy on energy transition. The results show that TPR policy positively contributes to energy transition at a 1% significance level. Extensive robustness tests support this finding. This positive effect is particularly evident in regions with less developed communications infrastructure and stricter environmental regulations. Mechanism analysis suggests that TPR policy promotes energy transition by improving the level of information networks, promoting technological innovation, and optimizing industrial structure. The findings of this paper emphasize the importance of information industry convergence in facilitating energy transformation.

Analyzing dynamic coupling and coordination of modern service and advanced manufacturing industries in Guangdong-Hong Kong-Macao Greater Bay Area

Integrating the modern service industry with the advanced manufacturing industry is an important way to cultivate a modern industrial system and achieve high-quality development of economy. This study aims to enhance the supporting and leading role of the Greater Bay Area of Guangdong, Hong Kong, and Macao in China's national economic development and opening up by promoting the in-depth integration of these two industries. A new monitoring system is developed to simulate the level of integration of the modern service and advanced manufacturing industries in the Guangdong-Hong Kong-Macao Greater Bay Area. The dynamic comprehensive evaluation model of stock increment was used to simulate the coupling coordination degree of these two industries. Empirical results reveal that the development of these industries has uneven stock and incremental resource advantages, and their development has not been balanced. The coupling coordination degree of these industries in some areas has become maladjusted, while in other areas, it has fluctuated or developed from coordination to disorderly leap-forward. These findings demonstrate that the study methods and results are significant for analyzing industrial integration processes and promoting in-depth integration development in the Guangdong-Hong Kong-Macao Greater Bay Area. In conclusion, building a monitoring system using the dynamic comprehensive evaluation model of stock increment is an effective way to evaluate the level of integration of these two industries and promote their in-depth integration in the Greater Bay Area.

A study measuring the degree of integration between the digital economy and logistics industry in China

Under the new development pattern, the penetration and integration between industries is becoming increasingly active, constantly promoting the rationalisation and heightening of the entire industrial structure and structuring new convergent industrial bodies. To explore the degree of integration between the digital economy and the logistics industry, this paper uses input-output models and social network analysis to empirically analyse the level of industrial integration between the core industries of China’s digital economy and the logistics industry during the period 2007–2017. The level of integration between the core industries of China’s digital economy and the logistics industry is measured, and its spatial and temporal characteristics are also measured and analysed. The analysis showed that (1) the degree of integration between the two industries is low, but with changes over time, the degree of integration will follow an upwards trend; the overall level of integration is increasing with the development of the core industries of the digital economy; the growth rate is significant, and developed regions have a clear advantage because of the intensity of integration. (2) The direction of industrial integration linkages is basically stable, with the pointing characteristics of adjacent provinces, and the spatial distribution shows a pattern of diffusion from the central region to the eastern and western regions. Overall, the integration shows an economic radiation effect, but there are large differences between the north and south. (3) It is easier for adjacent provinces to form the same cohesive subgroup in a network and develop together. At the same time, the integration network shows a clear pattern of marginal-semimmarginalization. The study enriches and improves the research status of China’s digital economy industry convergence, and provides theoretical support for the formulation of policies related to the synergistic development of China’s digital economy and logistics industry.

Analysis of Industrial Diversification Level of Economic Development in Rural Areas Using Herfindahl Index and Two-Step Clustering

The purpose of this study is to analyze the possible relationship between industrial structure and economic development in rural areas in South Korea. Accordingly, this study uses the Herfindahl–Hirschman Index and a two-step cluster analysis method to conduct an empirical analysis of the rural areas of Chungcheongbuk-do as the research object. The results show that among the 11 regions with concentrated industrial structures, the cluster results of 2 regions changed from the decentralized low employment cluster in 2010 to a concentrated high employment cluster in 2015, while the cluster results of other regions remained unchanged. Among the 18 regions with decentralized industrial structure, the cluster results of 5 regions changed from the concentrated high employment cluster in 2010 to the decentralized low employment cluster. Meanwhile, the cluster results of three regions changed from the decentralized low employment cluster in 2010 to the concentrated high employment cluster in 2015, while the cluster results of other regions remained unchanged. Based on this, it can be concluded that, for general rural areas, a low level of industrial diversification, that is, a concentrated industrial structure, is more conducive to promoting the economic development of rural areas. However, there is a special case, namely that rural areas with certain specific advantages, a high level of industrial diversification, or a decentralized industrial structure are more conducive to the development of the regional economy.

The Motivation of Media Users and China's National Media Digitization Construction in the Post-COVID-19 Era

The sudden arrival of COVID-19 has had an enormous impact on the lives of people around the world, including significant psychological pressure and increased emotional needs. In China, research into user psychology and the motivations of commercial digital media has become more popular, but the national media should pay more attention to user psychology and perform more research on user motivations to improve the effectiveness of communication. We investigated people's internal psychology and motivation for using national media digital platforms in China during the pandemic. We collected data through online questionnaires and analyzed the use of apps of CCTV and The People's Daily by individual users during the pandemic and the psychological needs of national digital media users. In the first stage of our research, we selected national digital media app users through the WeChat platform. In the second stage, more active users were chosen by snowballing upon the original sample. We surveyed 210 participants and ultimately obtained 180 valid samples. We analyzed the data using used SPSS 23.0. The results showed that with the help of digital media platforms and diversified media technology, the Chinese national media not only met the needs of users for information acquisition, but also provided sufficient emotional mutual assistance and comfort to users through the network aggregation formed by digital scene communication.

Bottleneck Resources, Market Relatedness, and the Dynamics of Organizational Growth

Entering a new product market requires assembling a bundle of resources. Because missing a single resource can foil the entire entry effort, we argue that bottleneck resources—those most difficult to obtain or sell externally—anchor the direction of firm growth. We characterize market resources as bottlenecks to product market entry, because they are (on average) more challenging to obtain and sell than technological resources, and we articulate why the importance of market resources varies with the strength of external markets for technology. Using cross-industry data linking firms’ product portfolios with patents, we find resource dynamics whereby market resources drive the strategic decision to enter, and firms fill technological gaps using both internal research and development and external acquisitions (joint ventures and alliances). Our study underscores the importance of resources for firm growth dynamics and specifically highlights market resources as the bottleneck that constrains and directs the direction of product market entry.

How industrial convergence affects regional green development efficiency: A spatial conditional process analysis

Industrial convergence is a key means to transform the economic mode. Taking the convergence of manufacturing and producer services in China as the research object, this study explored how industrial convergence affects regional green development efficiency (GDE). First, a coupling evaluation system was established to measure industrial convergence degree, and the directional distance function-based slacks-based measure was combined with the global Malmquist-Luenberger index to measure GDE. Second, we employed spatial econometric models to analyze the relationship between industrial convergence and GDE. Then, using the spatial conditional process analysis, a unified framework of green innovation, investment structure, and energy intensity was constructed to investigate the transmission mechanism involved. The results showed that: (1) Regional GDE and green innovation had a spatial dependence. (2) Considering the spatial correlation, industrial convergence is conductive to regional GDE. (3) Green innovation is an effective path by which industrial convergence improves regional GDE. (4) In this mediating process, the investment structure and energy intensity play a moderating role. The investment bias in high-tech industries increases the role of industrial convergence in promoting regional GDE and green innovation, while the moderating direction of energy intensity is opposite. In addition, there is a crowding-out effect in energy dependence, which hinders the effectiveness of green innovation.

Exploring and Evaluating the Impact of ICTs on Culture and Tourism Industries’ Convergence: Evidence from China

Information and communications technologies (ICTs) have been driving the digital revolution of all industries worldwide. Industrial convergence constitutes a new feature and trend of contemporary industrial development and has received extensive attention from the media and public. However, the interrelationship between the two concepts—industrial convergence and ICTs—remains under-researched. This paper aims to explore and evaluate the ICTs’ impact on industrial convergence by focusing on the interrelationship between culture and tourism. The study takes an industrial economics perspective with a specific focus on the multi-dimensional (direct, moderated, and threshold) effects. A research framework was suggested synthesizing three econometric models and encompassing three hypotheses. The research model was then empirically tested and validated through quantitative research using China’s provincial panel data from 2004 to 2018. The study’s findings indicate a positive influence/relationship between ICTs and market-oriented reforms in the culture and tourism industries’ convergence. Moreover, a positive labor-convergence relationship was found, while the negative government–convergence relationship was uncovered in control variables. Regarding the moderating effect, the interaction of ICTs and market-oriented reforms is positively correlated with industrial convergence. In addition, there is a single-threshold effect of consumer demand on the ICTs–convergence relationship. This article extends our knowledge in two ways by addressing the knowledge gap regarding the interrelationship between culture and tourism and by providing new insights into the influence of ICTs on this industrial convergence that has theoretical and practical implications.

University-industry collaboration and firm innovation: an empirical study of the biopharmaceutical industry

Existing research has shown that university–industry collaboration (UIC) helps a firm achieve superior innovation outcomes. However, little is known about how UIC affects firm innovation when considering interfirm alliances. In this paper, we examine the influence of UIC on firm innovation performance by considering the interfirm alliance network. Based on a panel of 285 biopharmaceutical firms across the world over a thirty-year period from 1985 to 2014, we find that UIC enhances firm innovation performance. More alliances with other firms hinder the positive effect of UIC on firm innovation, whereas technological diversity strengthens the influence of UIC. Theoretical and practical implications of the results are discussed.

The nature of ICT in technology convergence: A knowledge-based network analysis

This study aims to understand the nature of information and communication technology in technology convergence. We form a knowledge network by applying social network theories to Korean patent data collected from the European Patent Organization. A knowledge network consists of nodes representing technology sectors identified by their International Patent Classification codes and edges that link International Patent Classification codes when they appear concurrently in a patent. We test the proposed hypotheses using four indices (degree centrality, E-I index, entropy index, and clustering coefficient). The results show that information and communication technology is easily attached but tends to converge with similar technology and has the greatest influence on technology convergence over other technologies. This study is expected to help practitioners and policymakers understand the structure and interaction mechanisms of technology from a systematic perspective and improve national-level technology policies.

Exploring Industrial Knowledge Flow for Identifying Technological Development Strategy: The Case of Korea’s TFT-LCD Industry

Korea’s technological achievement in the thin film transistor liquid crystal display (TFT-LCD) industry became possible primarily through a catch-up strategy in technological development. Through qualitative and quantitative analyses of the Korean TFT-LCD industry’s knowledge management, the researchers highlight the strategies that key Korean firms utilized to enable a successful technological catch-up. On a national level, patent citation information is analyzed to evaluate the Korean industry’s technological knowledge position compared to other Asian countries. Results from this analysis indicate that Korea plays a central role within the knowledge network, as evidenced by the highest centrality value. On a firm level, Samsung and LG Display are investigated in the areas of technological development and manufacturing strategies. Samsung and LG Display show strength in the technological specialization of devices’ arrangements/optical operation and arrangement/circuits of control indicating devices. In addition, these two firms show more diversification to allow for new business opportunities. By integrating quantitative and qualitative methods to analyze the TFT-LCD industry on national and firm levels, this research demonstrates the industry’s trajectory with depth and precision. In addition, this study contributes a meaningful strengthening of analysis methods in technological knowledge management and provides successful management factors for new latecomers in the industry.

Does Industry Integration Improve the Competitiveness of China’s Electronic Information Industry?—Evidence from the Integration of the Electronic Information Industry and Financial Industry

As the pillar industry of China’s national economy, the electronic information industry plays an important role in social development and has increasingly become an important indicator of international competitiveness in the informatization age. We constructed a fusion evaluation model of the electronic information industry and financial industry in China, and used coupling theory to measure the integration degree of the two industries. Next, we empirically measure the impact of the industrial integration level on the competitiveness of the electronic information industry. According to the empirical test, we found that (1) the coupling degree ranged from 0.9 to 1 with minimal changes and that a strong coupling relationship existed between the electronic information industry and financial industry; (2) the coupling coordination degree ranged between 0.59 and 0.80, with a coordination level ranging from primary to intermediate coordination; and (3) the degree of industrial integration had a lagging positive impact on industrial competitiveness. Based on these results, we proposed policy recommendations to strengthen industrial integration and promote the international competitiveness of China’s electronic information industry for various aspects such as government services, technology upgrades, industry integration, and effective capital entry.

Do Innovation Efficiency and Powerful Leadership Affect the Performance Effect of Technological Diversification?

Considering that technological diversification is rooted in distinct technological knowledge that usually comes from different business units, a firm’s practices that can improve efficiency in integrating and exploiting this knowledge may be key potential moderators in this focal relationship. Based on a sample of 3,277 firm-year observations of 435 firms in Taiwanese information and communication technology sectors during the 2004-2014 period, this study finds that technological diversification has an inverted U-shaped relationship with performance. Such relationship also can be moderated by high levels of innovation efficiency and CEO power. These findings caution against drawing universalistic normative implications for pursuing technological diversification.

Technology networks: the autocatalytic origins of innovation

We analyse the autocatalytic structure of technological networks and evaluate its significance for the dynamics of innovation patenting. To this aim, we define a directed network of technological fields based on the International Patents Classification, in which a source node is connected to a receiver node via a link if patenting activity in the source field anticipates patents in the receiver field in the same region more frequently than we would expect at random. We show that the evolution of the technology network is compatible with the presence of a growing autocatalytic structure, i.e. a portion of the network in which technological fields mutually benefit from being connected to one another. We further show that technological fields in the core of the autocatalytic set display greater fitness, i.e. they tend to appear in a greater number of patents, thus suggesting the presence of positive spillovers as well as positive reinforcement. Finally, we observe that core shifts take place whereby different groups of technology fields alternate within the autocatalytic structure; this points to the importance of recombinant innovation taking place between close as well as distant fields of the hierarchical classification of technological fields.

Ubiquitous Healthcare — Do the Health and Information Technology Sectors Converge?

Processes of convergence strongly influence the development of several industries and modern technologies as the example of convergence of the computer and telecommunication industry into one sector of information and communications technology (ICT) shows. These convergences are a substantial uncertainty for established companies in both established areas. Ubiquitous healthcare is a current trend in health technology which might be the expression of such a convergence. Therefore, the question whether this trend is an expression of an overall industry convergence between the ICT and the health sector is investigated in this study. Publication and patent data-based analyses are carried out for that purpose. An industry/technology sector classification as well as an IPC-co-classification analysis reveal clear signs of convergence between the ICT and health sector on the scientific and technology level. The results are critically discussed and theoretical and practical implications are given.

Factors influencing the alignment of technological diversification and firm performance

Purpose

Although scholars have paid considerable attention to the relationship between technological diversification and firm performance, research on this relationship has produced mixed findings. To reconcile these inconsistent findings, this study, thus, aims to revisit the performance effect of technological diversification by considering two organizational characteristics as crucial moderators, namely, firm size and financial slack.

Design/methodology/approach

To test the research hypotheses, the research sample covers manufacturing firms in the 2008 Standard & Poor (S&P) 500 index. Data regarding the characteristics and patent information of the sample firms were obtained from Compustat and the US Patent and Trademark Office. The hypotheses were tested by using hierarchical regression models.

Findings

In a sample of 168 S&P 500 manufacturing firms, this study finds that technological diversification has a positive effect on firm performance. The relationship between technological diversification and firm performance is also found to be positively moderated by firm size, financial slack and their configuration.

Originality/value

The findings of this study further suggest that firms should be aware that the effect of technological diversification on performance can be enhanced or hindered in specific contexts.

Technological Frontiers and Embeddings: A Visualization Approach

The paper concerns the measurement and forecasting of technological change, a topic relevant to many high-tech organizations and their customers. We revisit recent and classic datasets from technology forecasting data envelopment analysis (TFDEA) research and technometrics in light of a new visualization technique known as t-distributed stochastic neighbor embedding (t-SNE). The technique is a nonlinear visualization technique for preserving local structure in high-dimensional spaces of data. The technique may be classified as a form of topological data analysis. Specifically, each point in the space represents a potential technological design or implementation, and each line segment in the space represents a local measure of technological improvement or degradation. We hypothesize five distinct kinds of performance development in technology within this space including the frontier, the fold, the salient, the soliton, and the lock-in. Then we examine the spaces to determine which kinds of development are the best explanations for the observed development. The technique is not extrapolative, and therefore cannot fully supplant existing technometric methods. Nonetheless, the approach offers a useful diagnostic to existing technometric methods, and may help advance theories of technological development.

The Strategic Approaches for a New Typology of Firm Patent Portfolios

Patents play an important role for companies to achieve competitive advantage. There is an increased recognition of the importance of patent portfolios as a key to achieve competitive advantage as opposed to any one patent. Hence, some researchers suggest that the true values of patents lie in the aggregation of some related patents rather than their individual worth. In addition, as firms increase their technological diversification so too do their patent portfolios. On the basis of portfolio theory, we build a typology of four types of patent portfolios characterized on the dimensions of technology coherence and synergistic economic value: black, cloud, star and constellation portfolios. Then, according to the characteristics of each type of portfolio, we propose that different strategic approaches should be applied to manage them to achieve superior performance. Further, we suggest that different types of patent portfolios have different effects on firms’ long-term and short-term performances in dynamic environments. Our paper enriches our understanding of the role that patent portfolios play to achieve superior firm performance by linking the management of firm-level resources to value creation in uncertain environments; and also provides important insights into future trends in the patent portfolios strategy in dynamic environments.

Patterns of Convergence Within the Emerging Bioeconomy — The Case of the Agricultural and Energy Sector

In light of an emerging bioeconomy, fading boundaries between the so far distinct agricultural and energy sector indicate a convergence process leading to a new competitive setting between established value chains requiring dynamic capabilities of the affected firms. On the basis of understanding convergence as a process within research-intensive industries, patent analyses can be applied to identify whether there are trends of convergence associated with the emerging bioeconomy. This study focuses on examining the nexus of agricultural and energy sector with regard to German biogas technologies. Although different disciplinary activities within the field of biogas can be confirmed, for now, biogas (as well as other bioenergy) applications rather seem to build a sub-segment within the energy value chain than to form a new inter-industry segment.

Conceptualization of the Convergence Phenomenon to Develop an Applicable and Integrated Framework for the Emergence of Software-as-a-Service

Financial service companies, such as banks and accounting firms, and product software companies, such as enterprise resource planning (ERP) software companies, previously discrete industries, are beginning to adopt Software-as-a-Service principles, potentially leading them into a new environment. The motivation for this research is to understand what is occuring between these software and service industries, as a result of the convergence phenomenon. A similar phenomenon has happened among the mobile and landline communications, computer, and TV broadcasting industries. By reviewing and analyzing literature on the convergence phenomenon in the industries in which it has already developed, the main aspects are identified and integrated into one comprehensive framework to analyze the phenomenon as a whole. The inter-relations and dynamics are explored via mobilization of institutional theory. The framework’s applicability is then explored against the historical case of the telecommunications, broadcast and computer industries. Future research suggestions are offered to further test and corroborate the framework to increase its generalizability and applicability for analyzing the convergence phenomenon in industries and nations experiencing it at different paces.

BUILD-UP OF UNDERSTANDING OF TECHNOLOGICAL CONVERGENCE: EVIDENCE FROM PRINTED INTELLIGENCE INDUSTRY

The purpose of the paper is to analyze the dynamics between traditional and emerging new industries in converging industry environments. The paper identifies different convergence types and utilizes the framework to analyze the evolution of printed intelligence and RFID markets. The primary source of information is based on the main RFID industry players, patents, and 12 semistructured interviews conducted by the research group. The results reveal that the emerging industry is in the early stages of evolution where market dynamics are driven by complementary technological convergence and the previously distinct technological trajectories of industries have started to overlap. In parallel with convergence, a restructuring of industries is taking place in the near future.

THE PHENOMENON, CAUSES AND EFFECTS OF INTEGRATING ICTS IN MANUFACTURING PRODUCTS

The rapid and persistent improvement in the performance and cost of Information and Communication Technologies (ICTs) with respect to their capabilities for capturing, processing, displaying, communicating and storing information provide abundant opportunities. This paper aims to explain the causes and effects of the phenomenon in which manufacturing firms integrate ICTs in their established manufacturing products. The study of this phenomenon is based on structured interviews with executives of 37 large Swedish manufacturing firms. The results show that the phenomenon is wide-spread among manufacturing firms, that the number of products that integrate ICTs is growing relative to firms' total product portfolios, and that the revenues from these products are increasing. Competition is a significant reason why firms integrate ICTs into their goods, but firms also want to reap the rewards of the value provided. Important here is that firms often find it necessary to transform aspects of the way they do business (business model) in order to create a better fit between activities that create value for their customers and activities that produce profits for themselves. They also try to find innovative ways to be rewarded for the value they deliver, mainly based on the provision of services.