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Arabian Gulf University- College of Graduate Studies - Department of Innovation 2021-2022

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT SUBMITTED BY: MOHAMMAD ABDULLAH ALSAFFAR - ID: 20191543 - SUPERVISED: DR. ODEH AL-JAYYOUSI

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Introduction What is innovation?

• “Innovation is the generation, acceptance and implementation of new ideas, processes products or services” (Thompson’s, 1965).

• Innovation was denoted as the effective application of processes and products new to the organization and designed to benefit it and its stakeholders (Wong et al., 2008).

• Plessis (2007) defined innovation as “the creation of new knowledge and ideas to facilitate new businesses outcomes, aimed at improving internal business processes and structures and to create market driven products and services”.

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ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

Why innovation is important ?

• Innovation is the creation of a novel idea or a new product while innovation is the marketing process of the invention (Fagerberg, 2006).

• Innovation finds new perspectives, horizons and domains for the nature, discipline, niche and specialization of companies, firms of organizations.

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12 11 1 10 2 9 3

8

7

5 6

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PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

What is RIS and its significance ?

• •

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implement knowledge application and exploitation or knowledge generation and distribution.

According to (Asheim, et al., 2005) RIS as an “interactive knowledge generation subsystems”.

RIS may be described as symbiotic relations between companies, firms, public or governmental bodies in the terms of marketing or promoting the competitiveness of the bodies (Medomovic, 2003). RIS finds common grounds for the different companies, firms, or organizations for efficient performance.

RIS

RIS

RIS

RIS

•

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

Literature Review Themes • Innovation • Regional Knowledge • Innovation systems • Definition of innovation

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Publications by journals regarding RIS from 2000 - 2020

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European Planning Studies Regional Studies Technological Forecasting and Social Change Research Policy European Urban and Regional Studies Scient metrics Tec novation Entrepreneurship and Regional Development Economic Development Quarterly European Planning Studies Total

2000 2004

2005 2009

4 4

8 6 2

3

2

1 1

1 1

2010 2014

9 5 1 2 1 1 1

1

13

21

1 21

2015 2020

Total

%

6 8 4

27 18 11

35.06 % 23.38 % 14.29 % 7.79 % 2.60 %

1 1 1

6 2 4 4 2 2

1

2

2.60 %

22

1 77

1.30 % 100.00 %

5.19 % 5.19 % 2.60 %

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

Problem Statement

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• Regional innovation systems are linked to organizational learning, absorptive capacity, and technological innovation capabilities (TIC) at firm level. Knowledge and technology are key to foster RIS and innovation performance (Lau and Lo, 2015)

• There are limited studies that address RIS and innovation performance in GCC at firm level. Also, healthcare sector attracts many professionals to establish SMEs in special services like healthy diet, dental services, and personal care.

• The GCC countries are investing in SMEs to enhance innovation system in many knowledge-based sectors like healthcare, ICT, and business consultancy.

• However, it critical for Kuwait to analyze the technological innovation capabilities and innovation performance for SMEs to attract talent and sustain quality of life.

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

Research Gaps GAP

01

The enablers of RIS in the GCC region are not identified.

GAP

9

02

Absence of clear indicators associated with innovation process and its impacts of economic growth.

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

Research Significance

01

Identify and assess models of RIS worldwide.

Significance

02 Significance

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03 Significance

Explore the relationships between RIS, technological innovation capabilities, and innovation performance for SMEs in the health sector.

Highlight the significance of RIS and innovation performance in GCC. ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

Research Questions

01

What is the state of art in models of RIS worldwide?

Question

02 Question

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03

What are the relationships between RIS and innovation performance in SMEs in Kuwait?

Question

What is the impact of RIS on technological innovation capabilities?

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

PERFORMANCE: A STUDY OF SME’S IN HEALTHCARE SECTOR IN KUWAIT

Research Objectives This research seeks to achieve the following goals:

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Research Model 01

RIS

Technological Innovation Capabilities (TIC)

1 13

2

3

Innovation Performace

Value chain services Knowledge Intensive Service Systems Regional Innovation Initiatives

02

Learning capability Resource allocation capability Marketing capabaility Organizational capability

03

Quality of service Service innovation

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

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Research Model

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. Hypothesis 1

. Hypothesis 2

. Hypothesis 3

Regional innovation initiatives are positively related to TIC.

Knowledgeintensive business services are positively related to TIC.

Value chain information sources are positively related to TIC.

. Hypothesis 4 TIC is positively related to innovation performance.

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Research Methodology • • •

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Mix method (Qualitative and Quantitative).

Quantitative method (Surveying SMEs of the Healthcare sector Using Regional Innovation Stystems’ Factors).

Qualitative data (Interviewing superiors of the SEMs at Heathcare sectors using NVIVO)

ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

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Framework of Methods Mix method

Quantitative

Qualitative

Interviews

Survey Healthcare SMEs NVIVO Software

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SEM via SPSS ANALYSIS OF REGIONAL INNOVATION SYSTEM AND INNOVATION

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Sampling

Company Background

N

Dental clinics in private hospitals

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The SMEs of the healthcare sectors will be sampled. as shown in the table (MOH, 2021).

Private dental clinics

14

Dental clinics in specialized medical centres

28

Specialized Dental Centres

86

Dental clinics in community clinics 7

73

Total

216

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Conclusion The expected results may shed light on an importatnt contribution in the processes of Regional Innovation Systems that could promote the healthcare services of the SMEs in Kuwait and in the region.

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Timetable 2021-2022

2021

2022

2022-2023

Procedures 9

10

11

12

1

2

3

4

5

6

9

10

11

12

1

2

3

4

Proposal Literature Review Survey Framework Development Data Analysis and Discussion Conclusion and Recommendation Writing the report Prepare the final draft

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References •

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AlShehabi, O. (2017). Show us the money: Oil revenues, undisclosed allocations and accountability in budgets of the GCC States.

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Asheim, B., Coenen, L., & Moss, H. J. (2006). The role of regional innovation systems in a globalizing economy. The Changing Economic Geography of Globalization, Abingdon: Routledge, 139-155.

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Atuahene-Gima, K. (1995). An exploratory analysis of the impact of market orientation on new product performance a contingency approach. Journal of Product Innovation Management, 12(4), 275-293.

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Avilés-Sacoto, S. V., Cook, W. D., Güemes-Castorena, D., & Zhu, J. (2020).

Modelling Efficiency in Regional Innovation Systems: A Two-Stage Data Envelopment Analysis Problem with Shared Outputs within Groups of Decision-Making Units. European Journal of Operational Research, 287(2), 572-582.

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•

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Coenen, L., Asheim, B., Bugge, M. M., & Herstad, S. J. (2017). Advancing regional innovation systems: What does evolutionary economic geography bring to the policy table?. Environment and Planning C: Politics and Space, 35(4), 600-620.

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Cooke, P., & Memedovic, O. (2003). Strategies for regional innovation systems: Learning transfer and Application. Vienna: UNIDO.

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References •

D'Allura, G., Galvagno, M., & Mocciaro Li Destri, A. (2012). Regional innovation systems: a literature review. Business Systems Review, 1(1), 139-156.

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Damanpour, F., & Gopalakrishnan, S. (2001). The dynamics of the adoption of product and process innovations in organizations. The Journal of Management Studies, 38(1), 45-65.

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Dashash, K. M. (2017). The Government Role in Creating Innovation Technological Clusters in Developing Countries (The Case of Saudi Arabia).

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Dzemydaitė, G., Dzemyda, I., & Galinienė, B. (2016). The efficiency of regional innovation systems in new member states of the European Union: a nonparametric DEA approach. Economics and business, 28(1), 83-89.

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Doloreux, D., & Parto, S. (2004). Regional innovation systems: a critical review. Maastricht, Merit, 190(1), 1-26.

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Durdyev, S., Ismail, S., & Kandymov, N. (2018). Structural equation model of the factors affecting construction labor productivity. Journal of Construction Engineering and Management, 144(4), 04018007.

Edquist, C. (2004). Systems of innovation: Perspectives and challenges. In J. Fagerberg, D. C. Mowery & R. R. Nelson (Eds.), Oxford Handbook of Innovation and Policy. Oxford: Oxford University Press.

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Firsova, A., & Chernyshova, G. (2018, May). Analysis of efficiency of regional innovation systems taking into account the financing structure. In International Scientific Conference" Competitive, Sustainable and Secure Development of the Regional Economy: Response to Global Challenges"(CSSDRE 2018). Atlantis Press.

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Edquist, C. (1997). Systems of innovation: Technologies, institutions and organizations. London: Pinter.

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