Identifying lead markets for the international banknote production industry

  • Georgy V. Kornilov Research Institute of Goznak, Russia
  • Arkady V. Trachuk Higher School of Management, Financial University under the Government of the Russian Federation, Russia

Аннотация

This paper contributes to theoretical study of innovation diffusion by exploring a role of lead markets factor for innovation adoption at international markets of products and technologies for national security. The study is based on data obtained from analysis of innovations in banknote production industry. The international banknote industry characterized by limited number of buyers (monopsony) and suppliers (oligopoly) is an example of highly innovative sector with important national security task to maintain integrity of currency circulation. It is a truly global industry focused on constant development of new security technologies adopted by most of the central banks. Our findings suggest the factor of lead market is one of the key elements in taking decision by the central bank to adapt certain security features and technologies for their banknotes. Geographical origination of a particular technology is been put aside when issue of national security is in place. Only the value of an innovation itself matters. We argue that lead market factor is a specific characteristic for of innovation diffusion in this sector that should be common for areas where government institutions act as single buyer when the supply is scarce i.e., military industry, space sector, some pharmaceutical markets etc.

Ключевые слова:

lead markets, banknote industry, national security, diffusion of innovations, currency circulation

Скачивания

Данные скачивания пока недоступны.
 

Литература


REFERENCES

Barrdear J., Kumhof M. 2016. The macroeconomics of Central Bank issued digital currencies. Staff Working Paper 605. Bank of England. [Electronic resource]. https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2016/the-macroeconomics-of-central-bank-issued-digital-currencies.pdf?la=en&hash=341B602838707E5D6FC26884588C912A721B1DC1 (accessed: 01.02.2021)

Beise M. 2001. Lead Markets: Country-Specific Success Factors of the Global Diffusion of Innovations. Physika-Verlag: Heidelberg.

Beise M. 2004. Lead markets: Country specific drivers of the global diffusion of innovations. Research Policy 33 (6–7): 997–1018.

Beise M. 2006. Die Lead-Markt-Strategie: Das Geheimnis Weltweit Erfolgreicher Innovationen. Springer: Heidelberg. (In German)

Beise M., Gemunden H. G. 2004. Lead markets: A new framework for the international diffusion of innovation. Management International Review 44 (Special Issue 2004/03): 83–102.

Beise M., Rennings K. 2005. “Lead markets and regulations: A framework for analyzing the international diffusion of environmental innovations. Ecological Economics 52 (1): 5–17.

Beise M., Cleff T., Heneric O., Rammer C. 2002. Lead Market Germany. Germany’s Position as a Leading Sales Market for Innovation. ZEW Documentation No. 02–02. Centre for European Economic Research: Mannheim.

Beise M., Cleff T. 2004. Assessing the lead market potential of countries for innovation projects. Journal of International Management 10 (4): 453–477.

Bender K. 2006. Moneymaker: Secret World of Banknote Printing. Wiley VCH.

Bilgram V., Brem A., Voigt K. 2008. User-centric innovations in new product development- systematic identification of Lead User harnessing interactive and collaborative online tools. International Journal of Innovation Management 12 (3): 419–458.

Bonnell A. 2010. Covert Tagging. Pira International Ltd: Surrey.

Cleff T., Grimpe C., Rammer C. 2007. The Role of Demand in Innovation — A Lead Market Analysis for High-tech Industries in the EU-25. ZEW Documentation No. 07–02. Centre for European Economic Research: Mannheim.

Cleff T., Grimpe C., Rammer C. 2015. Identifying Lead Markets in the European Automotive Industry: An Indicator-based Approach. Industry and Innovation 22 (6): 496–522.

Deffuant G., Huet S., Amblard F. 2005. An individual-based model of innovation diffusion mixing social value and individual benefit. American Journal of Sociology 110 (4): 1041–1069.

A Digital Ruble. 2020. Bank of Russia. [Electronic resource]. https://www.cbr.ru/analytics/d_ok/dig_ruble/ (accessed: 01.02.2021) (In Russian)

European Commission. 2007. 1–44 Explanatory Paper on the European Lead Market Approach: Methodology and Rationale (Annex II to COM (2007) 860 final).

FATF. 2013. Money Laundering and Terrorist Financing Related to Counterfeiting of Currency. [Electronic resource]. https://www.fatf-gafi.org/media/fatf/documents/reports/money-laundering-terrorist-financing-related-to-counterfeit-currency.pdf (accessed: 01.02.2021)

Fliegel F., Kivlin J. 1966. Attributes of innovations as factors in diffusion. American Journal of Sociology 72 (3): 235–248.

Franke N., Von Hippel E., Schreier M. 2006. Finding commercially attractive user innovations: A test of Lead-User theory. Journal of Product Innovation Management 23 (4): 301–315.

Gansler J. S. 2016. Maintaining US leadership in science, technology, and innovation for national security. In: E. Paté-Cornell, W. B. Rouse, C. M. Vest. (eds). Perspectives on Complex Global Challenges: Education, Energy, Healthcare, Security, and Resilience, 155–158. Willey: Hoboken.

Geroski P. A. 1990. Innovation, technological opportunity, and market structure. Oxford Economic Papers 42 (3): 586–602.

Hafeez K., Hooi Keoy K., Hanneman R. 2006. E-business capabilities model validation and comparison between adopter and non-adopter to e-business companies in UK. Journal of Manufacturing Technology Management 17 (6): 806–828.

De Hej H. 2009. Banknote design for the visually impaired. DNB Occasional Studies 7 (2).

De Hej H. 2010. Innovative approaches to the selection of banknote security features. Banknotes of the World (9): 8–15.

Henderson M., Clark K. 1990. Architectural innovation: The reconfiguration of existing product technologies and the failure of established firms. Administrative Science Quarterly 35 (1): 9–30.

Herstatt C., Tiwari R. 2016. Lead Market India: Key Elements and Corporate Perspectives for Frugal Innovations. Springer: Heidelberg.

Iles I. A., Egnoto M. J., Fisher Liu B., Ackerman G., Roberts H., Smith D. 2017. Understanding the adoption process of national security technology: An integration of diffusion of innovations and volitional behavior theories. Risk Analysis 37 (11): 2246–2259.

International Banknote Designers Association (IBDA). 2018. IBDA Banknote Database. [Electronic resource]. https://www.irs-banknotes.com/ (accessed: 01.02.2021)

Janicke M., Jacob K. 2005. Ecological Modernisation and the Creation of Lead Markets. In: Weber M., J. Hemmelskamp (eds). Towards Environmental Innovation Systems, 175–193. Springer: Heidelberg.

Jog C., Kosmopoulou G. 2014. Experimental evidence on the performance of emission trading schemes in the presence of an active secondary market. Applied Economics 46 (5): 527–538.

Ketterer J. A., Andrade G. 2016. Digital Central Bank Money and the Unbundling of the Banking Function. Discussion Paper. Inter-American Development Bank.

Kirkwood J. B. 2016. Buyer power and healthcare prices. Washington Law Review 91 (1): 253–293.

Kumar V., Ganesh J., Echambadi R. 1998. Cross-national diffusion research: What do we know and how certain are we? Journal of Product Innovation Management 15 (3): 255–268.

Lundvall B.-A. (ed.) 1992. National Systems of Innovation: Towards a Theory of Innovation and Interactive Learning. Pinter: London.

Linton J. 2018. Quiet contributors: The role of the Arts, Humanities and Social Sciences in innovation. Foresight and STI Governance 12 (3): 6–12.

Lüthje C., Herstatt C. 2004. The Lead User method: An outline of empirical findings and issues for future research. R&D Management 35 (5): 553–568.

Mahoney C. W. 2017. Buyer beware: How market structure affects contracting and company performance in the private military industry. Security Studies 26 (1): 30–59.

Morrison P., Roberts J., von Hippel E. 2000. Determinants of user innovation and innovation sharing in a local market. Management Science 46 (12): 1513–1527.

Mowery D. C. 2009. National security and national innovation systems. Journal of Technology Transfer 34 (5): 455–473.

Nijssen E. J., Reinders M. J., Krystallis A., Tacken G. 2019. Developing an internationalization strategy using diffusion modeling: The case of greater amberjack. Fishes 4 (1): 12.

Nelson R. (ed.) 1993. National Innovation Systems. A Comparative Analysis. Oxford University Press: Oxford.

Nelson R. 1995. Co-evolution of industry structure, technology and supporting institutions, and the making of comparative advantage. International Journal of the Economics of Business 2 (2): 171–184.

Omwansa T. K., Sullivan N. P. 2012. Money, Real Quick: The story of M-PESA. Guardian Books: London.

Pizzanelli D. 2011. The Future of Banknote Printing to 2016. Market and Technology Forecast. Pira International Ltd: Surrey.

Quitzow R., Walz R., Köhler J., Rennings R. 2014. The concept of “lead markets” revisited: Contribution to environmental innovation theory. Environmental Innovation and Societal Transitions 10: 4–19.

Rabinovich B. 2007. Cluster analysis of telephone communications detalization. Sistemis i Sredstva Informatiki 17 (1): 52–78. (In Russian)

Rennings K., Smidt W. 2010. A lead market approach towards the emergence and diffusion of coal-fired power plant technology. Economica Politica XXVII: 303–328.

Rogers E. 2003. Diffusion of Innovations (5th ed.). The Free Press: N.Y.

Rothwell R. 1994. Towards the fifth-generation innovation process. International Marketing Review 11 (1): 7–31.

Straub E. 2009. Understanding technology adoption: Theory and future directions for informal learning. Review of Educational Research 79 (2): 625–649.

Szajnfarber Z., Richards M. G., Weigel A. L. 2011. Challenges to innovation in the Government Space Sector. Defense Acquisition Review Journal (7).

Taganov D. 2005. SPSS: Statistic Analysis in Market Surveys. Piter: Saint Petersburg. (In Russian)

Tiwari R., Herstatt C. 2012. Frugal innovation: A global networks’ perspective. Swiss Journal of Business Research and Practice 66 (3): 245–274.

Trachuk A., Golembiovsky D. 2012. Perspectives for the expansion of non-cash retail payments. Dengi i Credit 7: 24–32. (In Russian)

Trachuk A., Kornilov G. 2013a. Analysis of factors affecting the spread of non-cash payments in the retail market. Vestnik Finansovogo Universiteta (4): 6–20. (In Russian)

Trachuk A., Kornilov G. 2013b. Dynamics of innovation introduction into banknote manufacturing. Dengi i Credit (9): 3–10. (In Russian)

Urban G., von Hippel E. 1988. Lead user analyses for the development of new industrial products. Management Science 34 (5): 569–582.

van Renesse R. 1998. Optical Document Security. Artech House: Boston-London.

von Hippel E. 1986. Lead users: A source of novel product concepts. Management Science 32 (7): 791–806.

Опубликован
2021-03-10
Как цитировать
Kornilov, G. V., & Trachuk, A. V. (2021). Identifying lead markets for the international banknote production industry. Российский журнал менеджмента, 18(4), 497–524. https://doi.org/10.21638/spbu18.2020.402
Раздел
Теоретические и эмпирические исследования