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Customer loyalty is viewed as the strength of the relationship between an individual’s relative attitude and repeat patronage.
His research interests include consumer decision making, information processing, and consumer loyalty. JavaScript is currently disabled, this site works much better if you enable JavaScript in your browser. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. The Incident Command System (ICS) is entirely a management tool which creates a scope for the civil organization to establish a temporary organization which will help them to carry out the emergency response operation smoothly. Community-based Research to Address AsthmaManagement and PreventionKatrina Kubicek, MA, Marisela Robles, MS, Michele D.
Annual reports should be instruments of communication and not simply compliance documents, says Sue Ludolph.
The size of the annual report of all companies is ballooning, and not necessarily with more useful information.
Many national standard-setters, institutes and regulators around the world have undertaken work on disclosures in the annual report over the past few years: cutting the clutter, losing the excess baggage, a disclosure framework, materiality in financial reporting, financial reporting from an investor perspective, among others. The International Accounting Standards Board (IASB) has been listening, consulting and deliberating, and has responded. Consequently, in 2013 the IASB started the Disclosure Initiative, a package of several projects aimed at improving the disclosure of financial information. The objective of the Disclosure Initiative is to improve the effectiveness of communication of financial information to users outside the reporting entity. The way IFRS disclosure requirements are worded contributes to the disclosure problem as noted above, hence the increase in the importance of electronic delivery of financial information. In March 2014 the IASB published an Exposure Draft outlining proposed amendments to IAS 1 Presentation of Financial Statements. The Exposure Draft proposes narrow-focus amendments to IAS 1 to address some of the concerns expressed about existing presentation and disclosure requirements and to ensure companies are able to use judgement when preparing their financial statements. Clarify the materiality requirements in IAS 1, including an emphasis on the potentially detrimental effect of overwhelming useful information with immaterial information.
Clarify that specific line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position can be disaggregated.
Add requirements for how an entity should present subtotals in the statement(s) of profit or loss and other comprehensive income and the statement of financial position.
Clarify that entities have flexibility as to the order in which they present the notes, but also emphasise that understandability and comparability should be considered by an entity when deciding that order. Remove potentially unhelpful guidance in IAS 1 for identifying a significant accounting policy. The IASB has acknowledged that the way  the concept of materiality is applied in practice is seen by many as a major cause of the disclosure problem noted above. In January this year we got regulators, preparers, auditors, users and standard-setters in the same room and refused to let them out until we had all understood the various perspectives of this problem.
For example, many preparers will err on the side of caution and throw everything into the disclosures. In summary, understandable risk-aversion on the part of preparers, auditors and regulators leads to a ticking-the-box mentality. The IASB’s response is that they are working with auditors, regulators, preparers and others to assess the adequacy of existing guidance and propose whether additional guidance is required or not.
Information in the financial statements must not be aggregated or disaggregated in a manner that obscures useful information.
The materiality requirements apply to the statement(s) of profit or loss and other comprehensive income, statement of financial position, statement of cash flows and statements of changes in equity and to the notes.
When an IFRS requires a specific disclosure, the resulting information must be assessed to determine whether it is material and consequently whether presentation or disclosure of that information is warranted. Over the last few years investors have asked the IASB to introduce a requirement that entities must disclose and explain their net debt reconciliation. Exploratory work will commence on whether the work previously done on the financial statement presentation project could form the basis of this research project. Principles of disclosure for the notes: Objective and boundaries, and principles regarding the organisation, placement, format and linkage of information.
The research project will review the disclosure requirements in each IFRS more holistically to identify and assess conflicts, duplication and overlaps. Work on the disclosure initiative project will be done in parallel with the conceptual framework project, as the projects inform each other and there is some overlap (see diagram below). He has published in theJournal of Consumer Research andAdvances in Consumer Research.His research interests are consumer information processing, persuasion cues in advertising, and international marketing. Conceptual framework of the Induced Innovation Network   Figure 1 illustrates the main types of actors present in an Induced Innovation Network, in addition to the main types of relationship between these actors and, still, the main coordination mechanisms involved in these relations. The communicative value of financial statements prepared using International Financial Reporting Standards (IFRS) is diminishing and they are becoming no more than compliance documents.
Financial statements – including the amounts and descriptions presented in the primary financial statements and the information included in the notes to the financial statements – are as a whole a form of disclosure.
Going forward, the IASB will look at the way future exposure drafts’ disclosure requirements are worded and integrate the IFRS taxonomy development into the IASB’s work programme. This problem is often identified as a failure to use professional judgement when considering materiality. A common conclusion was that many aspects of the disclosure problem have to do with behavioural factors.
The IASB is discussing this issue with investors on what is required and why before determining the scope of this project. The research will be undertaken in parallel with the work on the Conceptual Framework for Financial Reporting. This is dependent on the outcome of the research project and the conceptual framework project and will happen over the next two years.
Contact Chartered Accountants Australia and New Zealand for permission to reproduce this article.
Cognitive, affective, and conative antecedents of relative attitude are identified as contributing to loyalty, along with motivational, perceptual, and behavioral consequences. His articles have appeared in theJournal of Consumer Research, Journal of Marketing Research, Journal of Consumer Psychology, andCanadian Journal of Administrative Sciences as well as in a number of conference proceedings.
The Figure also demonstrates that the IIN members are embedded in an institutional environment structured by elements from the National and Regional Innovation Systems.
1-3, 5-8• In urban Los Angeles, children living along congested freeways and ports andother industrial areas are at similarly increased risk.2Interventions for Asthma Management• Over the last several years, we have seen an increase in the provision of asthmaeducation in school –based settings. This has resulted in too much irrelevant (immaterial) information and not enough relevant (material) information. After all, no CFO has ever been sacked for producing voluminous disclosures, while restatements may be career-limiting. The market validating the new products and services of the network firms is an essential element, since it sets the boundaries of the industrial sectors on which the Coordination Center will focus its efforts of planning and development of collaborative activities.
Moreover, excessive disclosures can even be very handy for burying unpleasant, yet very relevant information! 4• In general, school-based programs were found to be effective in increasingknowledge about asthma.Afterschool Settings for Health Promotion• Afterschool programs offer a unique opportunity to provide health-related orother educational materials. And sometimes it’s just easier to follow a checklist, rather than put in the effort to make the information more helpful and understandable.
With most school districts facing drastic budgetcuts and limited time to provide the required coursework, it can be challengingto integrate new information into the school curriculum.BACKGROUNDMETHODSDATA ANALYSIS ANDCONCEPTUAL MODEL• The conceptual framework for this study was influenced primarily by our research goals andby reviewing other asthma prevention and management curricula. Government, firms, universities, research centers, and financial agents are actors with different aims and may contribute differently to the success of the IIN. In addition, based ondiscussions with our CABs, we identified topics that are important for effective asthmamanagement. If, on the one hand, the differences between actors may be seen as potential complementarities, on the other hand the exploitation of potential synergies requires a greater ability of coordination between them, reinforcing the idea of a Coordination Center in the IIN. Using the conceptual model below as a guide, code reports were reviewed andpresented to the research team and CAB for further discussion on how to best interpret andintegrate the data into the asthma curriculum.Based on Empowerment Theory and Social Support -both of which have been linked to improved health outcomesRESULTSCURRICULUM ADAPTATIONThe Photovoice sessions helped inform the adaptation of the BREATHE LA asthma curriculum. Datafrom the Photovoice sessions indicate that children with asthma often feel left out of certain activities. Thus, the government can perform, in some situations, the role of representative of the collective interests in relation to other government instances, financial agents, high administration of large corporations, governments from other countries or regions, among others. Thus, theresulting curriculum includes a new section in which students are matched with a “buddy”. The government, while an actor from a formal or informal innovation network, grants legitimacy to it towards external actors. This buddy systemensures that students with asthma have a friend who can assist them in the event of an asthma attack as well assomeone that they can play with in less strenuous activities when they are not feeling well.Physical ActivityIn addition, the Photovoice sessions highlighted the need to educate youth on how children with asthma canengage in physical activities.
It is also the most prepared actor to safeguard the collective interests from the network with regard to public policies and has the ability to better design local public policies in order to provide support in overcoming restrictions that might be imposed to the dynamics of innovation processes.
The resulting curriculum includes a new emphasis on this area and provides someguidance on how children with asthma can be physically active without exacerbating their asthma condition.
Thisis an important inclusion as there is currently a body of research investigating the relationship between asthmaand obesity.AdvocacyMany of the students and parents discussed ways that can change the environments in which they live to makethem healthier for people with asthma. Parents recognized the potential risks from the refineries, ports andfreeways in their community. While they said they often felt “powerless” to stop them, many of the parents leftthe Photovoice sessions inspired to try to enact change in their communities. Given the interest trying to evokechange, a new section on advocacy has been introduced into the curriculum. Students are encouraged to take ona project in their homes, school or community to make it safer for them and their friends and family.
Thus, the Local Government can take on the role of inducer of public policies related to IIN, even if they are the under the responsibility of the national government. Activitiessuch as letter writing, poster making and other simple activities have been introduced to encourage students to bemore assertive in identifying issues that may be hazardous to their well-being.CONCLUSION AND NEXT STEPS• This study provides guidelines for how to conduct a CBPR project with the goal of creating a community-drivenand scientifically-grounded asthma curriculum.
They result from the application and combination of the firm's internal and external resources. Based on the proposition of Eisenhardt (1985), according to which the added value achieved by using a resource is not directly associated with this resource's intrinsic value, but rather with the service rendered, it would be reasonable to suppose that the use of the firm's internal and external resources would depend on its ability to extract from these resources the level and type of services more adequate to its purposes. A common characteristic in innovation processes is the explicit linkage between the firm and sources of knowledge available outside it (Eisenhardt and Martin, 2000). These processes tend to become a strategic intention on the part of the actors involved, which intensifies the firm's interactions with the other actors in the system and promotes an evolution of the innovation network institutional environment. The networks may better cope with the growing complexity in innovation processes by promoting a more fine-tuning articulation between the innovation systems' elements.
The Induced Innovation Network suggested by the article is particularly relevant in less matured Innovation Systems.
These organizations usually count with specialized competences and have updated information on technological development at a global level. The framework proposed is illustrated with the case of the PETRO-RS Network, a multi-sectoral innovation network located in the South of Brazil. Hence these actors are given the central role of knowledge transfer to firms and cooperative participation in projects, especially involving qualified human resources, testing equipment, research methods and techniques, development, tests, simulation and prototyping, besides the technological knowledge itself. They structure funding to trigger off innovation processes, as well as risk capital investments; also, lines of financing for a production scale adequate to successful projects.
In parallel, the resources external to the firm that may help its innovation processes increase in the same proportion. Negotiations among actors, during innovation processes, should not take a hierarchical form and should not be subject to market relations exclusively.
A number of these resources can be potentially found in the technological infrastructure of the Innovation Systems to which firms belong (National System, Regional System and Sectoral and Technological Innovation Systems).
There is the opportunity and the need of practicing a discursive negotiation to ponder the relations among actors, which implies in the need of creating conditions to their effective engaging in the Innovation Network. The effective appropriation of such resources by firms depends on a better coordination among the multiple actors of innovation systems. This systematic role of sensitizing and coordination of collective interest actions or of a specific set of actors (as in case of a specific project) belongs to the network's Coordination Center. It also represents a challenge, especially for Governments and Firms from less developed countries and regions with a lower economic density and where collaboration between actors is not as developed as in mature Innovation Systems. The Coordination Center performs the important role of reducing the complexity in the relationships between the actors and also of the risk associated to innovation, in the sense proposed by Kuppers and Pyka (2002).
Racial Disparities in Childhood Asthma in the United States: Evidence Fromthe National Health Interview Survey, 1997 to 2003. It can be said that the Coordination Center complements the firms' capabilities concerning the need of developing a higher number of more qualified interactions with the other actors in the Innovation Systems. The induction of Innovation Networks to link actors in Innovation Systems by a central coordination mechanism may help step up the competitiveness of firms embedded in these contexts, as well as accelerate the maturation of the Innovation Systems themselves. An innovation network which resulted from an action that originally involved a set of firms and the state government of Rio Grande do Sul.
This network was intended to develop innovations in products and services and thus meet the demands of the Brazilian oil industry whose diversity of opportunities has been greater than in any other industry in the country. This is occurring, for example, in the Brazilian oil industry, whose product demand from various economic sectors shows a large technological diversity.
In this context, innovation processes require the articulation between elements from various dimensions of Innovation Systems (National, Regional and Sectoral). Besides the understanding of the relations between the elements of the Innovation Systems, it is necessary to improve the coordination mechanism among the various actors because it promotes systematic and qualified interactions between them, strengthening innovation processes. From this amount, investments in product acquisition to offshore applications are estimated in US$ 80 to 100 Billion a year between 2005 and 2009 (Mikkelsen et al. Next, a conceptual framework of Induced Innovation Networks is discussed, proposing that the relations between elements of different dimensions of Innovation Systems can be coordinated by a government-induced network with its own coordination structure.


The framework is illustrated with the case of the PETRO-RS Network, a multi-sectoral innovation network located in the Brazilian southern state of Rio Grande do Sul. It consists of oil supply companies, in addition to research labs, financial agents and government entities. The expectation is to take advantage of a window of opportunity that may allow Brazilian firms to increase their technological capacity.
Together, these three state-owned companies (PEMEX, PDVSA and PETROBRAS) will be responsible for about 60 percent of investments in Latin American oil industry this beginning of century.
Onecomprised of healthcare providers and advocates and another comprised ofparents of children with asthma. Petrobras, a Brazilian state-owned company that is a world leader in oil exploration, deep water production and heavy oil refining, plans to invest alone estimated U$ 60 Billion in goods and services this decade. Other information sources in Brazil, like the ONIP1 and the PROMINP2 estimate investments in the country to be around US$ 10 billion a year up to 2010. See Figure 1 for details on methods.Limitations for Children with AsthmaThe majority of the limitations mentioned by participants had to do with not being able to bephysically active. About 70 percent of the investments will be concentrated on Offshore Exploitation and Production. In general, students and parents both felt that participating in physical activity,especially “rough” physical activity, would bring about an asthma attack and therefore limited theactivities in which children with asthma could participate. In the case of developing economies, to induce the formation of regional innovation networks concentrated on the supply of goods and services to capital-intensive industrial sectors, such as the oil sector, is a promising possibility to public policy makers and signals a great potential for technological diffusion to various industries.
Recent discoveries of deep-water fields in Nigeria, Gabon, Congo, Guinea, and Angola allow estimates of product demand to exploitation and production around US$ 10 billion a year in a near future.
Thus, issues related to what to do if you see a friend having an asthma attack wereoften discussed. From these numbers, Petrobras expects to achieve a nationalization rate of approximately 65 percent, what would represent a supply potential of approximately US$ 34.8 billion to Brazilian firms. According to these authors, the NIS maturity is a key factor in the country's economic development. Petrobras' estimated investments in Brazil alone (US$ 46.1 billion) would correspond to at least US$ 30 billion in supplies by firms established in Brazil. Parents too reported that smoking was a major trigger of asthma symptoms and that this wassomething that was difficult to control. Also, innovation processes are significantly impacted by firms' interactions with other actors such as: universities, research institutes, financial organizations, clients, suppliers, firms producing complementary goods and others.
In addition to this issue of smoking in apartment buildings,some parents also spoke about the conditions of their apartments and the unwillingness of owners toaddress things such as smoking or making improvements to the buildings. Basically, even though innovation itself takes place within firms, the innovation process efficiency and effectiveness depend on a set of external factors that enable both its development and diffusion. From 2003 to 2007, the amount of external oil companies' investments in Brazil is estimated to be approximately US$ 6.4 billion (Teixeira, 2003).
Parents also commonlyspoke about their surrounding community and how the ports, refineries, local airport and largefreeways all contribute to the environmental issues in their neighborhoods. Some of these external factors, particularly those of an institutional nature, have a tendency to act over the whole set of firms in a given region or country, decisively influencing the national or regional economic performance.
One parent brought in apicture of a refinery that is located near the childcare agency in which she works: “I have a picture ofthe refineries. The two types of financing, by own capital and by capital from national financial agents, increase the expectation of supplies on the part of companies established in Brazil. This is derived from a usual practice in the international market, according to which financing in this industry is usually coupled with buy-out bonds for a major part of the products in the countries that fund such investments.
Elements are understood not only as the agents but also their interactions and the attributes motivating these interactions, a topic that will be deeper discussed later in this article. Furthermore, it is possible that the national industry that supplies the Petrobras benefits from those actions, facilitating their insertion in the supplies to the investments intended by that state-owned company outside the country. Organizational innovation, for instance, deals with issues concerned with the implementation of advanced management techniques as well as changes in organizational structures, the implementation of new corporative strategic orientations, marketing strategies and knowledge management which would also dramatically impact companies' performance (Lall, 1992; Freeman, 1995). One of the government's initiatives to enhance oil industry's national competitiveness was the creation of the CTPETRO, in 1998.
This is a fund for the oil sector intended to form human resources and foment Technological Research in the sector. Those pointed out that policy-makers should be better acquainted with the performance of theirs and other nations concerning knowledge distribution. Another important initiative was the creation of the National Oil Agency (ANP) that, from the opening of the Brazilian oil market in 1999, has been regulating the Exploitation and Production Operations (E&P) in the country.
They should be able to evaluate the magnitude of potential losses in innovations as a result of limitations in knowledge distribution and knowledge-pooling capabilities in the country, in order to define policies and actions to overcome those constraints (David and Forey, 1995). One of the ANP's mechanisms to stimulate national suppliers in this industry has to do with the commitment to a larger amount of technological items developed in the country in the procurement of firms carrying out E&P operations.
In addition, being the Petrobras one of the main offshore oil producers in the world, the competencies and the technological capability required from its suppliers create objective conditions to the insertion of Brazilian companies in the global market.
As they establish closer relations with Petrobras, these companies have access to qualified information that contribute to their process of adaptation and reconfiguration of organizational abilities necessary to obtaining a competitive advantage based on the supply chain. This was a pioneer undertaking in Brazil and its beginning was encouraged by the following factors: (i) existing demand in the oil industry and (ii) country-related comparative studies, in countries like Norway, England and Scotland, Canada, and others (ANP, 1999). It is worth to note that these 10 companies had practically no relations with each other and belonged to different sectors, involving the supply of various products such as anchorage cables, engineering services, valves, automation software, submersible pumps, drilling tools, forged metallic components, hydraulic actuators, programmable controllers, cast metallic components, among others. The common feature between those companies was the perception of the existence of a series of opportunities in the oil industry. Such opportunities could be achieved by expanding their network of relations with other firms, universities, and with the Petrobras through a new institutional and organizational arrangement. The government of Rio Grande do Sul, sponsoring the idea, offered decisive support in the PETRO-RS structuring by establishing a Coordination Center to the network through a program developed by the Science and Technology Office from the State of Rio Grande do Sul. The government's enterprise facilitated the sensitization of other government instances, universities, financial agents, the Petrobras, and new supplier companies. In this context, it will be relevant to analyze innovation systems levels other than the national one, such as the Global, Continental, Sub-Continental or Regional levels (Freeman, 2002).
It can be described as a government-induced movement, jointly with some supplier firms, which soon involved other actors that could contribute for innovation processes. The transnational firms' competitiveness will increasingly depend on their ability to structure and manage production and marketing international networks. In its turn, research, design, and development activities tend to remain at a National level, at least as long as the Nation is able to provide scientific, technological, educational and financial support, as well as proper communication infrastructure (Freeman, 2002). The aim was to effectively develop innovation processes to meet the market requirements (especially the Petrobras). While production factors are taken into account when it comes to select a location for manufacturing plants, more and more the selection of large transnational companies' research centers are determined by innovation factors (the emphasis is ours), including both quality factors and those concerning the costs to implement R&D activities, which are components of the candidate country's NIS. For this reason, in addition to a yearly-reviewed strategic planning process, the PETRO-RS systematically develops two types of projects: collective and private. These companies usually account for more than 50 percent of the Nations' GNP (Gross National Product). Some examples: market prospects, seminars, participation in technical events, business networking, fairs, among others. The results of private projects have a direct reach restricted to those taking part in them. These networks will be the more powerful as stronger is their ability to use communication and information technologies to access, accumulate and apply knowledge (Freeman, 2002). They will be embedded in social systems and sub-systems, being influenced by several environmental factors, such as culture, legislation, educational system, income per head, among others.
In addition to facilitating interactions between actors, the CC performs the role of searching, centralizing and distributing information. It is information on market, financing and funding sources, new technological developments, events, relevant news, among others.
The participation of the network's executive coordinator in events and the qualified relationship network that has been developed by the PETRO-RS have a multiplying effect on information getting to the firms. Thus, while the NIS depends on the nation's trajectory, cultural differences and idiosyncrasies, its performance will basically depend on the level of coordination among its actors. As the network expands, there is a growing number of firms interested in the same target market, accessing the same information and projects, which is positive since the internal competition in the network also fosters innovation. Innovation process implies interactions among actors which enable and constrain their action in the search for innovation. In this case, rules are clearly spelled out: when the CC identifies a potential project for the network's firms, this information is made available to all members. Such interactions are not often captured by a more aggregated level of analysis which may lead the National level approach to a static view. A dynamic view of the innovation processes would require an immersion in a more disaggregated level of the innovation system (Carlsson et al., 2002). Beyond more detailed analyses about how interactions between the system's elements occur, this immersion is expected to facilitate the advance towards more specific guidance on public policies, at regional and sectoral levels, as well as on managerial actions at the firm level (Niosi, 2002). At this moment, the CC withdraws and the selection of the firm or set of firms that is to develop the project will depend on the direct negotiation established and on the customer's final word.
Thus, the Innovation Systems approach has been following a theoretical building trajectory that, starting from a broad geopolitical dimension (NIS), has been redirected to other dimensions. After this definition is made, the CC can resume the support of the process, pointing researchers, labs, consultants, and other actors in the network that may collaborate in the project, complementing the resources required. If necessary, the CC also facilitates the contacts with financial agents and provides guidance on supportive public funds. Also it advanced towards the sectoral (Sectoral Innovation System) and technological (Technological Systems) dimensions.
From the perspective of coordination, it is important to emphasize that the presence of the state government of Rio Grande do Sul in the network provides legitimacy to reach senior management from PETROBRAS with the highest decision power in Brazil and abroad.
In view of the importance of the firm's environment externalities becoming more relevant to the performance of innovations, the theoretical building has been advancing towards more detailed analyses of the mechanisms associated to innovation processes.
This notion can be illustrated with the various meetings held by PETRO-RS executives with the board of operations from Petrobras, or still with the directors of procurement and research of the company.
It is worth to note that besides the merit of having been the forerunner of the Innovations Systems approach, the main claims of the NIS remain relevant in the globalization context. The mysteries of the trade become no mysteries; but are as it were in the air, and children learn many of them unconsciously. Platform anchorage components, software, electronic equipment, control systems, natural gas energy generators, valve automation, pumping units, sucker rods, biodiesel fuel blends, are some examples of products owing their development to Petrobras' demands. In its regional dimension, the innovation system is based on formal and informal networks with geopolitical boundaries, though it is not self-contained and has relations with companies and other organizations beyond these boundaries. These networks pervade companies, suppliers, clients, universities, research institutes, technology transfer agencies, and organizations performing relevant governance roles such as: enterprise associations, chambers of commerce, and others (Cooke, 1997). By viewing the market potential and helped by trade promotion activities performed by the Network, they started to define their strategies with priority given to the oil industry supply.
In The associational economy: Firms, Regions and Innovation, Cooke and Morgan (1998) state that the Regional Innovation System is, in some situations, more important than the National Innovation System. Cooke and Morgan's core argument is that the ability of the actors in a given region to deal with challenges related to innovation and economic development is increasingly dependent on the extent of the inter-firm collaboration and on the ability of regional governments to support these associations and broader collaborative organizations, involving universities, the government itself and other local actors.
The authors conclude that even though the national dimension is extremely relevant to innovation, especially concerning public policies (innovation, industry, science and technology, education, among others), it is too broad to meet the specific needs of a nation's various regions. A crucial element to the regional innovation system is the innovation financing, at a regional level.
Gains were observed in connection with the enhancement of relations between the companies and Petrobras, both those based on knowledge exchange, especially in collaborative projects, and those based on business relations.
The existence of financial agents that are able to support innovation investments is essential (Cooke and Morgan, 1998).
In the case of product development projects, optimization and qualification have been observed in interactions among firms, as well as in interactions of firms with labs and researchers from universities and research centers. The government performs an important role by fomenting and financing the infrastructure and activities concerned with innovation development, while venture capital funds, both public and private, and other sources of financing are needed to turn innovation diffusion activities more dynamic, as well as to finance the adequate scale of production. It was also observed a rise in the use of public funds to R&D by firms and universities, besides a new position assumed by researchers in the sense of giving more importance to the generation of patents, in addition to publications. It is relevant to mention, as well, the creation of the so-called Brazil Technology Network (RBT) nationwide by the Ministry of Science and Technology, also in 2003.
Its primary goal is to promote an effective coordination among the different areas of the Federal Government, Brazilian universities, private companies, and financial agents.
The RBT's mission is to help building a favorable environment to applied research, technological development and qualification to the local production sectors. One of RBT's target sectors is the Oil and Natural Gas Industry, to which the PETRO-RS model has been seen as national reference.
This type of approach contains some of the region's cultural particularities like, for example, the sharing of values by organizations and individuals with concern to cooperation, social-mindedness, learning, technology, and relations between universities and the production system (Cooke, 1997). Motivated by the creation of the RBT and PETRO-RS model, such networks were structured in various other states from Brazil. The Regional Innovation Systems of the clusters can be said to be related to a specific institutional structure, motivated by trust and the ability of association and cooperation. It depends, also, on the regional institutions and on clients from other regions in the country.
Finally, it means a great contribution to strengthening supply chains in Brazil and to the maturation of the Innovation Systems in the country.
In these countries, there is a greater need to support the coordination of actors, especially by attempting to qualify the interaction between them in order to create levels of trust which facilitate learning in firms and in the region as a whole. On the one hand, the innovation systems approach focuses on the elements that facilitate innovation from a broader political and economic perspective. On the other hand, in innovation networks the focus in on the coordination of action required to innovate, where the contents of interactions is associated with the set of interdependent and complementary activities to perform innovative projects.
The author still proposes that in the case of developing countries, like South Korea over the last two decades, the effective building of a NIS be accomplished from the development of Regional Innovation Systems, which should be focused on certain industries.


Various factors influence the competitiveness of a firm located in a given region that is provided with a well-structured RIS.
In the case of the PETRO-RS, for example, the induced innovation network and a set of specific complex projects coexist. From this perspective, Chung (2002) delineates a theoretical construct, linking the concepts of RIS, SIS (Sectoral Innovation System) and NIS. They are developed by specific subgroups of actors, with the network's institutional support. Each Regional Innovation System is constituted by one or more SISs, which can be either regionally or nationally wide. Each SIS represents the sum of their regional components and the NIS consists of the gathering of all elements in this set. These positive externalities consist of factors external to the company that emerge from agglomerated economic activities, such as logistic and infrastructure facilities, human resources, knowledge, and others.
The non-tradeable interdependences result from interactions between companies and between complementary sectors (technological innovations in a sector that has the power to impact other sectors, relationship network expansion, etc). It is as though the potentialities of a given region's social and cultural fabric could be appropriated by companies and become part of their assets.
Thus, the territory as a productive allocation vector presents an integration and interdependence degree so large that it becomes a quasi -firm and a real innovation source. One set regarding scholars has applied the notion of conceptual construction to deductive, empirical research on the micro- or particular person study level. Along with the flexible accumulation process, a form of organization emerges in the social cooperation that is not the market, but that proves capable to generalize externalities (Moulier-Boutang, Yann, 2003). Increasingly, the accumulation achieved by the regional economic trajectory is responsible for bringing about comparative advantages between regions. Moreover, regional aspects become more and more important in systemic innovation approaches, especially because it is at this level that the highest number of interactions among the actors that impact innovation processes take place. Conceptual model can be abstractions of things in real life whether physical as well as social. Even to the Theory of Transaction Costs approach, the sector notion has been basic to develop a growing number of studies on coordination forms in supply chains (hierarchy, market and hybrid forms). It is the five-force model of environmental threats (competitors, substitutes, newcomers, purchasers and suppliers), especially designed for the elaboration of sectoral-oriented studies. Little or no emphasis has been given by such approach to non-firm organizations, firms' learning processes and, most relevant in the case of a system, to the interaction between agents (Malerba, 2002).
The interaction between them involves communication, exchange, cooperation, competition and command processes (in the hierarchical sense proposed by Williamson, 1996).
The SIS is structured around knowledge, technologies, inputs and demand related to a specific economic sector.
The sectoral system evolution takes place through the co-evolution of its elements (Malerba, 2002). By allowing a better understanding of a sector's innovation, learning and production processes, the sectoral system is complementary to other system approaches such as the national, the regional and the technological approaches. The sectoral system is also mediated by national and regional institutions and organizations. It is the case of the national financial and educational systems, legislation on intellectual ownership and labor market. It can be said that the sectoral system is overlapped with the regional and national systems. Such an assumption differs from the Structure-Conduct-Performance school tradition which does not deal with this kind of heterogeneity of firms as sector-specific.
The first, included in sectoral innovation system's previous definitions, concerns the knowledge base, technologies and inputs of the sector. In turn, the relations between agents are based on communication, exchange, cooperation, competition and command. Interactions cover a wide spectrum that goes far beyond market relations and contractual relations of cooperation. According to North (1990), institutions, unlike organizations or actors, represent the facilitating elements and restrictions designed by society that shape human interactions. As North's definition might signal a predominance of action over the individual, it is worth to remember Giddens' statements (1985), concerning the duality of structure.
The action is produced and, simultaneously, reproduced in the contexts of social life daily production (Giddens, 1985).
The conclusion is that the actions of agents from the sectoral innovation system are shaped and shape institutions (norms, routines, habits, established practices, rules, and legislation). The particular institutional infrastructure involving the technological development analyzed, its dissemination and application are analyzed more deeply than in the other IS approaches (Carlsson and Stankiewicz, 1995).
The Technological Systems approach also goes beyond the sectoral dimension, in the sense that a technology or product under analysis can be applied in different industries. The framework is based on the notion that global demand represents a wide set of opportunities and, as a consequence it guides a specific technological system trajectory. A specific Technological System can be understood as a delimited set of actors systematically interacting to meet certain technological requirements.
It would permit an understanding at the level of coordination of the interactions between the elements of the several levels of the Innovation Systems involved.
It should be noted that the case is not broad enough to characterize a RIS; even though the supplier firms belong to several economic sectors, it does not follow that they cover all relevant sectors of the region. Nor is it broad enough to characterize a SIS since it is focused on a single region, not to mention that the firms belong to various sectors. At the same time, the TECS approach appears to be very restricted, since the variety of products supplied to the oil and gas industry is very large. It can vary widely both from the technology used and the application of the products supplied. Furthermore, it allows an advancement towards the detailing level of interactions between actors and coordination of actions, as well as of innovative projects and the relationship among them.
This is especially true when a broader notion of innovation networks as processes of interaction among heterogeneous actors, producing innovations at any level of aggregation (regional, national, global) is given. Basically, interaction processes among heterogeneous actors occur in innovation systems, even though, in the innovation systems approach, the main concern is the ability or the elements necessary for the company to innovate. From the point of view of public policies, innovation systems deal with innovation processes in a generic way and to what extent this affects the economic development of a country, region, sector or set of actors focused on a technology, product or specific application. Then, the word ?network' became a powerful metaphor to explain the characteristics of various economic phenomena, such as regional agglomerations and the user-producer relations in the supply chains (DeBresson et Amesse, 1991). The network analysis attempts to seize the configuration, nature, and contents of a set of inter-organizational relations (DeBresson et Amesse, 1991).
In this case, configuration has to do with the morphology of those relations or how the network's nodes and links can be viewed. The nature concerns the type of relation (commercial, technological, financial or productive) and the contents concern what is exchanged among network members (information, tangible assets, work division, common aspirations, etc).
Even this delimitation is not enough, since these networks contain the networks of user-producers, regional inter-industrial networks (existing in the regional agglomerations), strategic alliances in new technologies, etc. The network configuration might be present even in dyadic relations (between two companies), including supplier companies and the relations involving the organization's different levels. For innovation networks, the firm or inter-firm relations constitute the locus of innovation. In view of the uncertainty that characterizes technological innovation, the internalization (activities performed within the company) appears to be the best course of action to reduce transaction costs. Nevertheless, this is not always the case and the networks end up becoming an alternative to the ?make or buy' dilemma. The inter-organizational linkages that occur in the networks are appropriated to the technological transactions. For Debresson and Amesse (1991), transaction costs approach to network innovation has two important limits.
This is especially true as trust derives not only from a rational calculation of the actor (Williamson, 1996), but also from shared norms and values, besides the reputation and legitimacy of certain actors (as in the case of governments, development agencies and financial organizations). In turn, norms and values that make trust a central form of coordination among actors in the network derive widely from a discursive negotiation. The networks are dominated by another type of social integration, other than hierarchy or formal contract, or still coercion. The discursive negotiation implies consensus and legitimacy building by means of convincing rather than controlling on the part of an actor who holds a more significant amount of resources than the others.
The trust-based coordination often counts with intermediate organizations such as development agencies, enterprise associations, and government agencies.
Some of the roles these intermediate organizations perform in the networks are: to facilitate communication for a mutual understanding between the actors, to cut down the cognitive distance among them, to monitor the information flow and to operate as an intermediary in trust building (Nooteboom, 2004). These are defined as a coordinated set of heterogeneous actors that collectively participate in the conception, development, production and distribution of goods and services (Callon apud Green et al., 1999). The innovation system analysis, as seen by the techno-economic networks approach, permits the description of the dynamic relations between the various actors, processes and equipment necessary to the success of an innovation. Like the innovation networks, the techno-economic networks presuppose coordination and relations between the innovation process actors. In the concept of innovation network considered here, the network is not necessarily linked to a technology, sector, product or family of products, but can be formed from companies of various sectors and with very different technological bases. In the innovation networks approach, the core concern is with the management of resources like knowledge and information useful to innovation, including market information. An innovation network may contain various techno-economic networks; at the same time, they might transcend it in the geopolitical dimension.
And, as far as this work is concerned, an important difference is the fact that techno-economic networks tend to be formed and developed spontaneously, while the innovation networks can be induced, especially by government policies. Network structures link the diverse knowledge of producers, suppliers and users located in different organizations, and that those structures facilitate the rapid information exchange and joint decision-making processes. It is worth to mention that in innovation networks, many actions of collective interest developed have not a technical nature and are not directly associated with specific innovation processes; rather, they correspond to processes of an organizational nature and institutional building. In other words, actions relative to specific innovation processes are usually of interest to a small network group, which may however involve actors from different dimensions of the Innovation Systems belonging to the network. The knowledge base complexity makes it extremely difficult to create the necessary knowledge within the boundaries of a single firm.
This, in addition to the dispersion of knowledge sources, places networks, rather than individual firms, the locus of innovation (Powell et al, 1996). They may be an answer to reduce the innovation process uncertainty and degree of irreversibility, lowering the cost and risks of a new field of knowledge development, increasing the commitments' flexibility and reversibility and reducing the market information asymmetry.
This is reinforced by authors that analyze the network organization paradigm to the innovation in regional agglomerations (Cooke, 1996; Rothwell, 1996). The network configuration connections may occur through formal contractual relations, as in the case of the R&D partnerships and joint-ventures, or informal relations as in the communities of practice. The self-organized social structure that characterizes the innovation network implies a complex coordination of countless interdependent and complementary activities among the actors of an innovation process. Thus it is important actors that establish exchanges among themselves share a perception of belonging to a certain space or group and be able to perform joint actions, even if only potentially. Therefore, it can be concluded that the boundaries of innovation networks, unlike innovation systems, are innovation projects shared by firms and other actors.
In other words, the notion of an organization belonging to a certain innovation network is established by the existence of innovative activities, performed along with other firms and organizations involved in the different stages of innovation (financing, commercialization, product development, basic research, market knowledge, and production). These activities, especially the collective ones, may also involve action of a broader institutional nature, reflecting over innovation processes. There may be more or less information diffusion in a network, not only because of a similarity to hierarchy or market relations, but because there is a greater density or connectivity among its actors that hierarchy and market fail to capture. The network morphology has a repercussion on the development of interdependent economic activities, which goes unnoticed when treating it as merely a hybrid form between hierarchy and market. Beyond this morphology, it is pertinent to examine the contents of linkages and flows between the actors, who decides on these flows and based on which interests, which resources are available to these flows, how the linkages are created and why they are maintained (Powell and Smith-Doerr, 1994). One is the geographical concentration of firms from the same industry or complementary industries.
In this case, innovation networks are derived from an innovative millieu, wherein the knowledge spillover takes place and from the cooperation motivated by a region's trajectory, in a political and cultural sense. Another process is the existence of complex projects involving the development of products with a highly technological content. One example is the R&D consortiums aimed at the development of commercial and military planes.
Less investigated than the other factors, the innovation networks might also result from induction, either by the State through a specific public policy or by a set of associated firms, with the aim of enhancing both the inter-organizational cooperation and the cooperation with other organizations in the country's technological infrastructure (such as universities and technological centers). In other words, firms and other actors of Innovation Systems are motivated to cooperate and coordinate complementary activities in one or more sectors covering the innovation process' different dimensions. In this sense, firms' innovativeness and the innovation processes performance can be increased by means of an ex ante institutional design, which is able to induce the creation of an innovation network as previously defined. This strategy appears to be especially relevant to innovation policies in countries and regions where the sectoral innovation systems are not developed and where the economic fabric is not so dense. Essentially, the Coordination Center plays a role as mediator and facilitator of network relations. Such attributions allow the IIN play two crucial roles; increase competitiveness by supporting innovation and providing market opportunities by supporting relationship with large customers. The Induced Innovation Network coordinates the Innovation Systems' actors both to specific innovation projects, involving two or more actors, and in actions of a broader collective interest such as market prospects, representation towards other IS actors that are external to the network (including potential clients with a high purchase power), organization of events, qualification of human resources, technical-commercial missions and marketing.



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