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on Innovation |
| By: | Boris Lokshin; Rene Belderbos; Martin Carree |
| Abstract: | We examine the impact of internal and external R&D on labor productivity in a 6-year panel of 304 innovating firms. We apply a dynamic linear panel data model that allows for decreasing returns to scale in internal and external R&D with a non-linear approximation of changes in the knowledge stock. We find complementarity between internal and external R&D, with a positive impact of external R&D only evident in case of sufficient internal R&D. The findings confirm the role of internal R&D in enhancing absorptive capacity and hence the effective utilization of external knowledge. These results suggest that empirical studies examining complementarities between continuously measured practices should adopt more general non-linear specifications to allow for correct inferences. |
| Keywords: | R&D, Innovation, Complementarity, Dynamic panel data, Productivity |
| JEL: | O32 O33 D24 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:hst:hstdps:d06-163&r=ino |
| By: | Daron Acemoglu; Amy Finkelstein |
| Abstract: | This paper examines the implications of regulatory change for the input mix and technology choices of regulated industries. We present a simple neoclassical framework that emphasizes the change in relative factor prices associated with the regulatory change from full cost to partial cost reimbursement, and investigate how this affects firms’ technology choices through substitution of (capital embodied) technologies for tasks previously performed by labor. We examine these implications empirically by studying the change from full cost to partial cost reimbursement under the Medicare Prospective Payment System (PPS) reform, which increased the relative price of labor faced by U.S. hospitals. Using the interaction of hospitals’ pre-PPS Medicare share of patient days with the introduction of these regulatory changes, we document a substantial increase in capital-labor ratios and a large decline in labor inputs associated with PPS. Most interestingly, we find that the PPS reform seems to have encouraged the adoption of a range of new medical technologies. We also show that the reform was associated with an increase in the skill composition of these hospitals, which is consistent with technology-skill or capital-skill complementarities. |
| JEL: | H51 I18 L50 L51 O31 O33 |
| Date: | 2006–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12254&r=ino |
| By: | Olli Martikainen; Jussi Autere; Markku Nurmela |
| Keywords: | government performance, ICT diffusion, performance improvement |
| JEL: | H11 O33 O38 L30 |
| Date: | 2006–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1022&r=ino |
| By: | Leonardo Burlamaqui |
| Abstract: | In the 21 century globalized economy, innovation, antitrust issues and (new) intellectual property rules are in the forefront of every government, large company and policy making debates. This paper aims to be a preliminary effort to contribute for a better understanding of the interactions between Competition policies (rather than antitrust) and Intellectual Property issues under a schumpeterian perspective and, therefore, towards a more coherent framework within which the discussions of both institutional building and policy design towards development can proceed. The policy-institutions resulting from the analyses should be flexible and pragmatic, and should have creative destruction management – or the promotion and regulation of entrepreneurial success – as its main goal. The key insight of the policy prescriptions proposed to deal with the question is the need of a huge dose of “strategic state action” and a high degree of international cooperation. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:tth:wpaper:06&r=ino |