Christian Reiner, Senior Researcher at LBS, published a book chapter on firm innovation together with Katerina Vrtikapa. The paper is a chapter in the book “Umkämpfte Technologien. Arbeit im digitalen Wandel” edited by the „Beirat für gesellschafts-, wirtschafts- und umweltpolitische Alternativen“ (BEIGEWUM). The authors provide an overview on the actors within an innovation system focusing specifically on the role of firms. Private companies are the driving forces of innovation in capitalist systems. Their innovation activities are motivated by profit maximization and they try to protect their new goods and services against competitors. Market structure plays an important role when it comes to firm innovation. Interestingly, firms in a perfect competitive market environment have no incentives to engage in innovation activities because competitors would copy their new product immediately; innovators would have to incur the fixed costs of innovation without reaping the benefits. Consequently, firms are only willing to innovate if they can keep their competitors from copying their innovation. As a result, private sector innovation only occurs when markets are characterized by some degree of imperfect competition and innovative firms are able to gain a (temporary) monopoly position for their innovative product.

The public sector plays an important role in the innovation system as well. For example, the state grants a temporary monopoly to inventors by granting patents; no other company is allowed to sell the same technology unless it pays a negotiated license fee to the innovative firm. The study of how the important innovations in the last decades came about reveals the crucial role of government agencies and public research institutes. Almost every ground-breaking invention was promoted and developed by public agencies. Private firms adopted the invented technologies later and made a profit by selling products that make heavy use of the publicly invented technologies. Taken together, a successful environment for firm innovation consists of a fruitful interplay between private firms and the public sector. In addition, policy makers should ensure that innovations satisfy not just the pursuit of private profit but also help to tackle the grand challenges of societies (e.g. climate change).

The paper will be presented together with other contributions from the book “Umkämpfte Technologien” (“Contested technologies. Work in the Age of Digitization.”) on December 5, 2018 at FORBA, Aspernbrückengasse 4/5, 1020 Wien, 17-19 pm. (official invitation)

 



Address: Hofzeile 18-20, 1190 Vienna
Email: office@lbs.ac.at
Admissions: admission@lbs.ac.at
Phone:+43 1 369 1818
TERMTIME OFFICE HOURS
Academic Coordination
Monday through Thursday:
9.00 - 15.00

Resident Permit Services:
Monday, Tuesday, Thursday:
9.30 - 17.00
Friday:
9.30 – 13.30
About Admission
LATEST NEWS

Insticore & FH Technikum Announce Partnership for Blockchain Education

On October 23, FH Technikum and Insticore announced integration between the two academic environments to streamline a complete blockchain education program in Vienna. The experience and status of FH Technikum as a top-provider of technical education in Austria, and the business and economic background of Insticore, incubated by the Lauder Business School, allows the two to carry out a complete blockchain program for those interested in becoming experts in this new technology.

Companies Going Global

Dr. Christian Reiner, Senior Researcher at LBS, gave a presentation on the internationalization of firms at a seminar for Austrian teachers at secondary schools on 12.October 2018. The seminar was organized by the Institut für Österreichkunde and the Österreichische Geographische Gesellschaft.
Firms with international activities, i.e. exports and/or foreign direct investment, are quite distinct from firms with no international orientation. In addition, exports are heavily concentrated; a small share of exporters account for a large share of exports.

Celebrating 15 years of LBS with Ambassador Lauder

On October 9, 2018 we were honored to welcome our Founder and President Ambassador Ronald S. Lauder and celebrate the 15th Anniversary of Lauder Business School! In the presence of our Founder and President Ambassador Ronald. S. Lauder, our Vice President Prof. Jacob I. Biderman, the Executive VP and CEO of The Ronald S. Lauder Foundation Rabbi Joshua Spinner, the LBS Executive Director Alexander Zirkler, as well as many distinguished guests, faculty members and students, we were delighted to celebrate 15 years of Lauder Business School!

A Story of an LBS intern

We are happy to report on one of our successful internships by bachelor graduate Gioia Stanisavljevic as part of the LBS International Business Administration program. Gioia worked as a Management Trainee at LKW WALTER for the past six months and her experience was very rewarding.

As she explains in the interview: „I was relatively quickly allowed to participate operationally in the France-Czech Republic department, and have already supported the Division Manager, processed orders and even done some scheduling. As a part of the program I also attended the traineeship courses, where I got more of an inside knowledge regarding the logistics and transport itself.”