Measuring the Openness of Innovation

Exploring the Evolution and Determinants of Open Innovation: A Perspective from Patent Citations

The research of open innovation (OI) has developed considerably in recent years. In this article, a new perspective based on the patent citation network is provided to explore the dynamic evolution and mode of OI. In our framework of the OI network, enterprises are represented as nodes, and patent citations represent cross-organizational knowledge flow, which are ties in the network. The Driver Assistance System (DAS) was selected as the research case. Time-sliced patent citation networks are constructed, and then an exponential random graph model is employed to identify the formation mechanism of OI networks. The results show that the OI network of DAS is still partially open and at a low level. The inherent dominance of automakers may have been weakened, and new models and relationships in innovation activities are developing. In addition, heterogeneity in type and geographic proximity which significantly promote the formation of the open network was prevented, but the larger scale of the enterprise inhibited the OI network. R&D investment has no obvious impact. This research provides a new perspective to observe open innovation and helps stakeholders to better understand industry trends.

Dose Remittances Matter for Openness and Financial Stability: Evidence From Least Developed Economies

The study's motivation is to gauge the effects of remittances on openness: financial and economic openness and financial stability in least developed countries (LDCs) for the period spanning 1975–2018. The study applies Generalized Moment of Methods (GMM) and System-GMM to detect the magnitude of remittances, gross capital formation, and government debt on openness and financial stability, and their directional association is established by performing a Granger causality test with System-GMM specification. The results of cross-sectional dependency ascertain the presence of a common dynamic among the research units; on the other hand, both first, and second-generation unit root tests establish that variables are integrated either at level or after the first difference, neither variables are exposed to order of integration after second difference. A panel co-integration test based on error correction confirms the availability of the long-run association among variables. Study findings with GMM and System-GMM estimation expose positive statistically significant effects of remittance inflows to economic and financial openness and financial stability. In LDCs, remittance inflows positively augment economic and financial openness; moreover, financial stability remittances play a critical role. The study implemented the Granger causality test with System-GMM specification, and results disclosed the feedback hypothesis that is bidirectional causality availability in the tested empirical causal model.

JEL Classifications: F24, F43, P34.