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on Innovation |
| By: | Franco Malerba (Department of Economics and CESPRI, Bocconi University, Milan, Italy..); Maria Luisa Mancusi (Department of Economics and CESPRI, Bocconi University, Milan, Italy.); Fabio Montobbio (Department of Economics, Insubria University, Varese and CESPRI, Bocconi University, Milan, Italy.) |
| Abstract: | This paper analyses the relative effects of national and international, intra-sectoral and intersectoral spillovers on innovative activity in six large, industrialized countries (France, Germany, Italy, Japan, UK and US) over the period 1981-1995. We use patent applications at the European Patent Office to measure innovation and their citations to trace knowledge flows within and across 135 narrowly defined technological fields. We find that, in addition to international ones, intra-sectoral spillovers are an important determinant of innovation. |
| Keywords: | R&D spillovers, Knowledge flows, Patent citations. |
| JEL: | F0 O3 R1 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp204&r=ino |
| By: | Agustí Segarra-Blasco (Grup de Recerca en Indústria i Territori(GRIT), Departament d'Economia, Universitat Rovira i Virgili.) |
| Abstract: | This paper analyses the performance of companies’ R&D and innovation and the effects of intra- and inter-industry R&D spillover on firms’ productivity in Catalonia. The paper deals simultaneously with the performance of manufacturing and service firms, with the aim of highlighting the growing role of knowledge-intensive services in promoting innovation and productivity gains. We find that intra-industry R&D spillovers have an important effect on the productivity level of manufacturing firms, and the inter-industrial R&D spillovers related to computer and software services also play an important role, especially in high-tech manufacturing industries. The main conclusion is that the traditional classification of manufactured goods and services no longer makes sense in the ‘knowledge economy’ and in Catalonia the regional policy makers will have to design policies that favour inter-industrial R&D flows, especially from high-tech services. |
| Keywords: | Innovation, R&D spillovers, KIS services, Productivity |
| JEL: | L10 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2007-12&r=ino |
| By: | René N. Nielsen |
| Abstract: | This paper contributes with two new findings to the literature on how universities contribute to industrial development. First, it argues and substantiates quantitatively through logistic regression models that introduction of academically skilled graduates in small, know-how-based firms can be instrumental in spurring innovation and upgrading changes in the firms. Second, it argues and substantiates quantitatively that it is not just graduates with technical and natural scientific qualifications that can contribute positively. Graduates with other academic qualifications also hold potential for innovation and upgrading changes in the firms, especially when it comes to major organisational changes. Qua these findings the paper contributes to the literature in two ways. It is a contribution to and substantiation of the ‘broader’ view arguing that universities contribute to industrial development with more than directly applicable information and technologies. And, academically skilled graduates are not only relevant in technological R&D departments of science-based firms. |
| Keywords: | Science; Academic research; Skilled graduates; Innovation; Technological change; Organisational change |
| JEL: | D83 I23 J24 O31 O33 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:07-21&r=ino |
| By: | Hu, Albert; Brahmbhatt, Milan |
| Abstract: | The generation, diffusion, absorption and application of new technology, knowledge or ideas are crucial drivers of development. This paper surveys the diverse approaches to innovation adopted by East Asian economies, the problems faced and outcomes achieved, as well as possible policy lessons. Knowledge flows from advanced countries remain the primary source of new ideas in developing economies. The authors evaluate the role of three main channels for knowledge flows to East Asia - international trade, acquisition of disembodied knowledge and foreign direct investment. The paper then looks at the exceptionally fast growth in domestic innovation efforts in Korea, Taiwan (China), Singapore and China, drawing on information about R & D as well as original analysis of patent and patent citation data. Citation analysis shows that while East Asian innovations continue to draw heavily on knowledge flows from the US and Japan, citations to the same or to other East Asian economies are quickly rising, indicating the emergence of national and regional knowledge stocks as a foundation for innovation. A last section pulls together findings about policies and institutions to foster innovation, under three heads: the overall business environment for innovation (macroeconomic stability, financial development, openness, competition, intellectual property rights and the quality of communications infrastructure), human capital development, and government fiscal support for innovation. |
| Keywords: | E-Business,Knowledge Economy,Economic Theory & Research,Technology Industry,Agricultural Knowledge & Information Systems |
| Date: | 2007–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4403&r=ino |
| By: | Keld Laursen; Francesca Masciarelli; Andrea Prencipe |
| Abstract: | To introduce new products and processes, firms often acquire knowledge from other organizations. Drawing on social capital and transaction cost theory, we argue that not only is the impact of such acquisitions on the successful development of product and product innovations dependent on strategic and economic variables, it may also be contingent on the “knowledge characteristics” of the geographical area in which the firm is located. Combining data on social capital at the level of 21 regions with a large scale data set on innovative activities by a representative sample of 2464 Italian manufacturing firms, we find — after controlling for a large set of firm and regional characteristics — that being located in regions characterized by high levels of social interaction leads to a higher propensity to innovate. In addition, being located in an area characterized by a high degree of social interaction positively moderates the effectiveness of externally acquired R&D on innovation inclination. |
| Keywords: | Social capital; external acquisition; process innovation; product innovation |
| JEL: | L23 O31 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:aal:abbswp:07-20&r=ino |
| By: | Argentino Pessoa (Faculdade de Economia, Universidade do Porto) |
| Abstract: | This paper deals with the relationship between innovation and economic growth in the context of developed world. After examining the correlation between economic growth and R&D (research and development) intensity, and given that the impact of R&D on economic growth is mediated by the rate of growth of technology, we proceed trying to assess the linkage between R&D outlays and economic growth, through the use of the condition of free entry into R&D. Confronted with data, our argumentation shows that the optimism of the endogenous technological change models is not confirmed for countries situated below the technological frontier. Next, based on other economic and technological indicators, a succinct comparison between the Irish and Swedish cases is made. This comparison reveals the importance of investments not classified as R&D, particularly the ones that enhance the external competitiveness of the economy. We conclude that innovation policy must always consider the complexity of the economic growth process and the other ways, besides the ones based on formal R&D indicators, in which technology has an impact on growth. |
| Keywords: | R&D, economic growth, technological change, innovation policy. |
| JEL: | O30 O32 O33 O38 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:254&r=ino |
| By: | Alessandra Catozzella (Universita degli Studi di Pavia); Marco Vivarelli (Max Planck Institute of Economics, Jena; Institute for Prospective Technological Studies-European Commission, Seville; Universita Cattolica del Sacro Cuore, Milan; and Institute for the Study of Labour (IZA), Bonn) |
| Abstract: | The purpose of this paper is to test the possible catalysing role of in-house R+D in fostering the complementarity of innovative inputs on a sample of 3045 manufacturing firms drawn from the third Italian Community Innovation Survey (1998-2000). The interactions between four different sources of innovation - internal and external R+D, embodied and disembodied technological acquisitions - have been simultaneously explored through the two (direct and indirect) testing frameworks for complementarity. Results from both the approaches show that the innovative process is a phenomenon combining within itself both complementarity and substitutability relationships, depending both on the typology of the targeted innovation output and on the particular combination of innovative inputs we focus on. In particular, it is in-house R+D that seems to create the precondition allowing firms to enjoy complementarity effects. Indeed, the possibility of exploiting synergies between different innovative inputs turns out to be subordinated to having undertaken a minimum amount of internal R+D. The implication of this result is that a role for in-house R+D emerges, beyond its direct effect in generating an innovative output: even if internal research is not a necessary precondition for a firm to be innovative, it should still be carried out because of its important role in the generation of synergies that amplify the impacts of the other innovative inputs it interacts with. |
| Keywords: | R+D, innovation, complementarity, supermodularity, substitutability |
| JEL: | O31 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-087&r=ino |
| By: | Alessandra Catozzella (University of Pavia); Marco Vivarelli (IPTS Seville, Catholic University of Milan, CSGR Warwick and IZA) |
| Abstract: | The aim of this study is to test the possible catalysing role of in-house R&D in fostering the complementarity of innovative inputs on a sample of 3045 manufacturing firms drawn from the third Italian Community Innovation Survey (1998-2000). The interactions between four different sources of innovation - internal and external R&D, embodied and disembodied technological acquisitions - have been simultaneously explored through the two (direct and indirect) testing frameworks for complementarity. Results from both the approaches show that the innovative process is a phenomenon combining within itself both complementarity and substitutability relationships, depending both on the typology of the targeted innovation output and on the particular combination of innovative inputs we focus on. In particular, it is in-house R&D that seems to create the precondition allowing firms to enjoy complementarity effects. Indeed, the possibility of exploiting synergies between different innovative inputs turns out to be subordinated to having undertaken a minimum amount of internal R&D. The implication of this result is that a role for in-house R&D emerges, beyond its direct effect in generating an innovative output: even if internal research is not a necessary precondition for a firm to be innovative, it should still be carried out because of its important role in the generation of synergies that amplify the impacts of the other innovative inputs it interacts with. |
| Keywords: | R&D, innovation, complementarity, supermodularity, substitutability |
| JEL: | O31 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3126&r=ino |
| By: | Frédéric Deroïan; Christian Milelli; Zouhaïer M’Chirgui |
| Abstract: | This paper describes inter-firm partnerships in three major high-tech industries over the 1985-2005 period. We found that the architecture of the respective networks had evolved toward a 'small world' in the early 1990s. We also found that the number of alliances collapsed in the late 1990s. This result roughly follows the number of patents granted in the respective industries and is correlated to an increase in market concentration, and to some extent to the rising number of mergers and acquisitions. |
| Keywords: | Innovation, R&D Partnerships, High-Tech Industries, Network Architecture |
| JEL: | L24 L6 O31 |
| Date: | 2007 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2007-24&r=ino |
| By: | Sebast ien Lechevalier; Yukio Ikeda; Junichi Nishimura |
| Abstract: | The growing trend of collaborative R&D has been well documented recently, both at a global level and through national and industry case studies. However, there is not yet any consensus regarding the following decisive questions: what are the exact level and evolution of R&D collaboration? What are the benefits of collaboration? What are the motives and determinants of firms engaging in R&D collaboration? In our opinion, these questions have not yet been answered due to the limitations of the data used in most empirical studies (large questionnaire surveys or very specific case studies). The main novelty of this paper is the use of patent data with a focus on information concerning inventors. These data are less biased than questionnaire surveys in terms of the size of the institutions; they are objective and are particularly appropriate for analyzing the benefits of collaboration. As the identification of the institutions to which individual inventors are affiliated is a particularly time consuming task, we focus on robot technology in Japan since the beginning of the 1990s. Our results are as follows. First, although the level of R&D collaboration in RT in Japan increased between 1991 and 2004, especially in the case of collaboration between firms and universities, it still remains low and is dominated by inter-firm collaborations. Second, we cannot definitively reject the conclusion that only the scale of the research has an impact on the quality of patents, when the unit of analysis is the patent; however, we show that there are significant spillover effects of collaboration, which imply an indirect effect on quality. Third, the determinants and motives which encourage firms to decide to engage in collaborative research differ depending on the partner they are collaborating with. In the case of collaboration with other firms, IO theories hold, as the existence of spillovers acts as an incentive. Regarding the collaboration with universities and public research institutes, the validity of capability theory, which emphasizes the quest for complementary knowledge and capability, is confirmed by our empirical investigation. |
| Keywords: | collaborative R&D, robot technology, patent data |
| JEL: | O31 O32 O34 |
| Date: | 2007–09 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:a498&r=ino |
| By: | Arghya Ghosh (University of New South Wales); Takao Kato (Colgate University, Columbia Business School, University of Tokyo, Aarhus School of Business and IZA); Hodaka Morita (University of New South Wales) |
| Abstract: | Does competitive pressure foster innovation? In addressing this important question, prior studies ignored a distinction between discrete innovation aiming at entirely new technology and continuous improvement consisting of numerous incremental improvements and modifications made upon the existing technology. This paper shows that distinguishing between these two types of innovation will lead to a much richer understanding of the interplay between firms’ incentives to innovate and competitive pressure. In particular, our model predicts that, in contrast to previous theoretical findings, an increase in competitive pressure measured by product substitutability may decrease firms’ incentives to conduct continuous improvement, and that an increase in the size of discrete innovation may decrease firms’ incentives to conduct continuous improvement. A unique feature of this paper is its exploration of the model’s real-world relevance and usefulness through field research. Motivated by recent declines in levels of continuous improvement in Japanese manufacturing, we conducted extensive field research at two Japanese manufacturing firms. After presenting our findings, we demonstrate that our model guides us to focus on several key changes taking place at these two firms; discover their interconnectedness; and finally ascertain powerful underlying forces behind each firm’s decision to weaken its investment in traditional continuous improvement activities. |
| Keywords: | competitive pressure, continuous improvement, discrete innovation, field research, location model, product substitutability, small group activities, technical progress |
| JEL: | L10 L60 M50 O30 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3132&r=ino |
| By: | T. Ciarli; R. Leoncini; S. Montresor; M. Valente |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:609&r=ino |
| By: | Mario Calderini (DISPEA, Polytechnic of Turin, Turin, Italy.); Chiara Franzoni (DISPEA, Polytechnic of Turin, Turin, Italy.); Andrea Vezzulli (CESPRI, Bocconi University, Milan, Italy.) |
| Abstract: | We analyzed the scientific productivity of a sample of academic scientists that contribute to the field of Materials Science in the post-patenting period, by means of several econometric techniques suitable to treat unobserved heterogeneity, excess zeros and incidental truncation. Although patents do not alter the track of publications in the overall sample, we show this effect to be generated by two opposite effects: Materials Engineers increase their publications after patenting, whereas Materials Chemists experience a decrease. Besides, Materials Engineers who were academic inventors have a higher impact factor than their non-inventors colleagues, although the positive effect tends to vanish both for very basic publications and for serial inventions. Finally, a clearly negative effect is registered when we consider only very basic publications made by Materials Chemists. We interpret our findings as depending on different epistemologies of scientific and engineering research and discuss the implications for both university managers and policy makers. |
| Keywords: | Academic Patenting, Science and Engineering Research, Technology Transfer, Science Policy, University Management. |
| JEL: | O31 O33 I23 I28 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:wp203&r=ino |
| By: | Harhoff, Dietmar; Hoisl, Karin; Reichl, Bettina; van Pottelsberghe de la Potterie, Bruno |
| Abstract: | One feature of the European patent system that is heavily criticized nowadays is related to its complex fragmentation and the induced cost burden for applicants. Once a patent is granted by the EPO, the assignee must validate (and often translate) it and pay the renewal fees to keep it in force in each country in which the applicant seeks protection. The objective of this paper is to assess to what extent validation and renewal fees as well as translation costs affect the validation behaviour of applicants. We rely on a gravity model that aims at explaining patent flows between inventor and target countries within the European patent system. The results show that the size of countries, their wealth and the distance between their capital cities are significant determinants of patent flows. Validation fees and renewal fees further affect the validation behaviour of applicants. Translation costs seem to have an impact as well. The important role played by fees suggests that the implementation of cost-reducing policy interventions like the London Protocol would induce a significant increase in the number of patents validated in each European country. |
| Keywords: | gravity model; patent fees; renewal fees; validation fees |
| JEL: | O30 O31 O38 O57 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:6565&r=ino |
| By: | Ramello, Giovanni B. |
| Abstract: | The main rationale for intellectual property relies on the thesis of the incentive to create. Creators and inventors are economic agents attracted by the returns they expect from their effort. This depiction is practical, but does not give due weight to the complexity of knowledge production. This work does not contest the potential benefit of the opportunity for creators and inventors to reap some profit from their work. Rather, it considers the idiosyncratic nature of knowledge, which is simultaneously input, output and productive technology, and is closely linked to the social dimension. This provides further insight into the production process and suggests a significantly different framework for policy. More specifically, because of the increasing returns governing creative technology, the efficiency criterion used to guide the economic choice calls for weak intellectual property rights, thus preserving wide access to knowledge. A stronger appropriation regime would significantly impair the total outcome of the creative processes. Interestingly, this appears to apply equally from a social justice perspective, perhaps in an effortless solution to the age-old trade-off between economic efficiency and social justice. |
| Keywords: | intellectual property rights, knowledge production, increasing returns, knowledge sharing, productivity, social justice |
| JEL: | C2 D2 D61 O31 O38 D78 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:uca:ucapdv:90&r=ino |
| By: | Thomas Grebel (Friedrich-Schiller-University Jena, Department of Economics); Tom Wilfer (Friedrich-Schiller-University Jena, Department of Economics) |
| Abstract: | The paper aims to investigate the diffusion process of two competing innovative technologies in the health care sector. Novelties in cardiovascular surgery will serve as an example. Using a rather simple modeling approach for the ecisions of adopters and suppliers we simulate the evolution of a new market and iscuss the effects network externalities and individual learning unfold in different scenarios. Increasing returns to adoption may lead to situations of technological "lock in". |
| Keywords: | technological change, diffusion processes, competing technologies, adoption decisions, social learning, medical equipment,network externalities. |
| JEL: | O33 I11 D43 |
| Date: | 2007–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-091&r=ino |
| By: | Werner Bönte (Max Planck Institute of Economics, Entrepreneurship, Growth, and Public Policy Group); Oliver Falck (Ifo Institute for Economic Research and CESifo); Stephan Heblich (Max Planck Institute of Economics, Entrepreneurship, Growth, and Public Policy Group) |
| Abstract: | Demographic change will be one of the major challenges for economic policy in the developed world in the next decades. In this article, we analyze the relationship between age structure and the number of startups. We argue that an individual's decision to start a business is determined by his or her age and, therefore, that a change in a region's age distribution affects the expected number of startups in the region. Using German regional data, we estimate a count-data model and find that the expected number of startups is positively influenced by the fraction of individuals of working age? 20-64 years old. A more detailed analysis of the working-age distribution suggests that startups in knowledge-based (high-tech) manufacturing industries are affected by changes in this distribution whereas firms in other industries are not. In particular, increases in the fraction of individuals in the 20-30 age range and individuals in the 40-50 age range have a positive effect on the number of high-tech startups. |
| Keywords: | Demography, Age Distribution, Entrepreneurship, Innovation, Region |
| JEL: | J1 L26 O3 R11 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-084&r=ino |
| By: | Sabine Visser |
| Abstract: | This memorandum analyses the R&D version of WorldScan, the CGE model for the world economy of the CPB Netherlands Bureau for Economic Policy Analysis. We check whether the effect of R&D on total factor productivity (TFP) as modelled in WorldScan is consistent with the empirical estimates used for the calibration of the model.<BR> We find that the model deviates from these empirical estimates in two ways: i) the effect of R&D in WorldScan differs considerably over countries and sectors. Some validation for this sectoral pattern is found in the empirical literature; and ii) in WorldScan, R&D not only generates spillovers, but is also treated as a production factor. There is thus a potential for double-counting the effects of private R&D. We find that this risk is only partly realized.<BR> In addition, we have considered the effectiveness of an R&D tax credit in WorldScan and find that such a tax credit raises both R&D expenditures and welfare. The degree of effectiveness of the tax credit in raising R&D expenditures is broadly consistent with the empirical literature: €1 extra R&D credit raises total R&D expenditures by an equal amount. |
| Keywords: | R&D; applied general equilibrium models; international economic policy analysis |
| JEL: | C68 O38 O4 |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:memodm:189&r=ino |
| By: | Reiko Aoki |
| Abstract: | This manuscript is based on a chapter to be included in gIntellectual Property - Innovation and Incentivesh by Suzanne Scotchmer, translated by Munetomo Ando, forthcoming from Nihon Hyoronsha. The purpose of the chapter is to shed light on Japanese historical and institutional aspects that corresponds to US aspects in the original book. We particularly focus on innovation and incentives before Meiji period. There was no intellectual property but there were significant innovations. We seek to answer the questions, what is the environment that produced them and how did innovators make a living? We see that there were organizations such as gzah that functioned like guilds in the west while gsenbaih system probably induced a procurement system, much like government of today. This manuscript is not an English translation of the final version (in Japanese) in the book. |
| Date: | 2007–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:a492&r=ino |
| By: | Reiko Aoki; Aaron Schiff |
| Abstract: | This paper reviews and compares patent pools and intellectual property clearinghouses as alternative systems for increasing the efficiency of access to intellectual property. These systems improve economic efficiency in downstream research and development by economizing on search and transaction costs faced by potential licensees, and by mitigating externalities among owners of complementary intellectual property that lead to excessively high license fees. We compare the administrative and economic features of different systems, review some successful examples, and suggest directions for future economic research. |
| Date: | 2007–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:a491&r=ino |
| By: | Oliver Falck (Ifo Institute for Economic Research and CESifo); Stephan Heblich (Max Planck Institute of Economics, Entrepreneurship, Growth, and Public Policy Group,) |
| Abstract: | This paper discusses the role of so-called national champions within the context of the EU's ambitious goal to become the most competitive and dynamic knowledge-based economic region in the world by 2010. We find football to be a useful analogy in our discussion of national champions. There are many different types of football players: veteran performers who are past their prime, young stars who have not yet developed their full potential, fans' darlings, and the actual stars - he key performers. For a team to be consistently successful across time, it needs to maintain the right mix of different types of players, particularly in regard to current and future key performers. What makes a key performer a "real" star is not only extraordinary talent but also, and perhaps even more important, ability to be a team player and inspire others to be the same. Applying this analogy to the economic field, we come to the conclusion that the "real" champions in the business environment serve as network pilots within regional networks. By fostering a dynamic economic environment, they create their own rents, unlike less successful firms who concentrate on unproductive rent seeking and shifting. |
| Keywords: | national champions, industrial policy, evolutionary economics, systems of innovation |
| JEL: | L52 O25 O33 P11 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-088&r=ino |
| By: | Dan Li (Indiana University, EUA); Manuel Portugal Ferreira (Instituto Politécnico de Leiria, Portugal); Fernando Serra (UNISUL Business School, Brasil) |
| Abstract: | Much theory and research that seeks to explain why and how technology transfers occur within multinational enterprises (MNEs) actually addresses the question of how these transfers occur among cooperative subsidiaries, and relies on the assumption of inter-subsidiary cooperation. However, subsidiaries do not always cooperate. We suggest that the success of technology transfer among subsidiaries depends on the extent to which the relationships among an MNE's subsidiaries (i.e. inter-subsidiary) are competitive or cooperative. Inter-subsidiary cooperation is determined by the MNE's international strategy, organizational structure, and the social relationships among subsidiaries. Both hierarchical and social relational factors drive the potential for inter-subsidiary multimarket competition that originates from the overlap on the subsidiaries' products, technologies, and market portfolios. |
| Keywords: | technology transfer, subsidiaries, competition and cooperation, international strategy |
| JEL: | M1 |
| Date: | 2007–08 |
| URL: | http://d.repec.org/n?u=RePEc:pil:wpaper:1&r=ino |
| By: | David B. Audretsch (Max Planck Institute of Economics and Indiana University); Erik E. Lehmann (University of Augsburg and Max Planck Institute of Economics); Lawrence A. Plummer (Clemson University and Max Planck Institute of Economics) |
| Abstract: | An important literature has made a fundamental link between corporate governance and corporate strategy. According to agency theory, assigning managers stock options aligns their interests with the interests of the owners of the firm. This paper suggests that this may not apply in the context of new ventures. Instead, an alternative perspective offered in this paper suggests that if contracts are incomplete, then managerial stock ownership not only provides a mechanism to align managerial incentives with the owners' goals, as agency theory predicts, it also grants top managers residual control rights to be used in subsequent negotiations with the owners. The ability to exercise residual control rights improves the ex post bargaining position of the CEO as an asset owner, thereby increasing her incentive to make relationship-specific investments that are specific to the new venture. Thus, in the context of new venture strategy assigning asset ownership to those who have the most important relationship-specific resources or who have indispensable human capital is a crucial source of subsequent competitive advantage. This theory of entrepreneurial governance is tested using patent ownership as a proxy for both relationship-specific investments and indispensable human capital of the CEO of the new venture. The empirical results support the main hypothesis posited by the entrepreneurial governance model. |
| Keywords: | managerial equity ownership, new ventures, property rights, governance, knowledge, innovation |
| JEL: | M13 L R30 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-086&r=ino |
| By: | Ricardo Paes Mamede (GEE, Ministério da Economia e da Inovação; Faculdade de Economia, Instituto Universitário de Lisboa - ISCTE); Daniel Mota (Instituto Nacional de Estatística); Manuel Mira Godinho (Instituto Superior de Economia e Gestão, Universidade Técnica de Lisboa) |
| Abstract: | The concept of «knowledge-based industries» (KBIs) has been widely used both in the academy and in policy-making over the last decade, due to the increasing role those industries play – both in terms of value added and employment – in contemporary, advanced economies. In this paper we discuss the extent to which KBIs differ from other industries in what concerns some of the stylised facts and regularities of industry dynamics usually found in the literature. In particular, we analyse the patterns and the determinants of firm entry and post-entry performance (measured in terms of survival of new firms), comparing KBIs groups with the remaining industries, using data for the Portuguese economy in the second half of the 1990s. We find that KBIs and the firms within them show some signs of distinctiveness in their dynamics as compared to the general case. In particular, on average, KBIs firms have higher survival chances, and entry within the KBIs groups is less responsive to incentives. |
| Keywords: | knowledge-based industries; market entry; firm survival |
| JEL: | L29 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0003&r=ino |
| By: | Uwe Cantner (Friedrich-Schiller-University Jena, Department of Economics. Chair of Economics / Mircroeconomics); Holger Graf (Friedrich-Schiller-University Jena, Department of Economics. Chair of Economics / Mircroeconomics) |
| Abstract: | We attempt to extend the static analysis of innovator networks by providing case study based insights into the dynamic, developmental or evolutionary pattern of such networks. In the theoretical part, we develop some building blocs that are considered central to a theory of network evolution. Especially, we focus on the growth of innovator networks and their structural change over time, i.e. how new relationships come into existence and existing ties are cut, how new actors join the system, and other actors leave it. The factors shaping these structural properties, can explain how coherence might increase in some periods while it might decrease in others. We exemplify these patterns for the case of the Jena network of innovators during the period 1995-2001. |
| Keywords: | Innovator network, internal/external relationships, network entry and exit |
| JEL: | O31 L14 R11 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-090&r=ino |
| By: | Sameeksha Desai (Max Planck Institute of Economics and George Mason University); Zoltan J. Acs (George Mason University and Max Planck Institute of Economics) |
| Abstract: | Policy interest since the early 1980s has focused in different ways on the creation of a large, productive, taxable economy - in which entrepreneurship plays a role for employment, income growth and innovation. The current understanding of various forms of entrepreneurship remains incomplete, focusing largely on productive and unproductive entrepreneurship. However, destructive entrepreneurship plays an important role in many, if not most, economies. This paper addresses the conceptual gap in the allocation of entrepreneurship by proposing a theory of destructive entrepreneurship. |
| Keywords: | destructive entrepreneurship, allocation of entrepreneurship, rent-seeking, rent-destroying, incentives, institutions, property rights, contractual enforcement, conflict, social capital, trust, ethnic capital |
| JEL: | O17 O20 P00 |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2007-085&r=ino |
| By: | IRAWATI, DESSY |
| Abstract: | This paper is a component of my conceptual foundation paper due to PhD field work in Indonesia to understand the possibility and the chance for developing country such as Indonesia to strengthen cluster building alongside The Triple Helix model within the region of Java. This paper is a conceptual paper based on case study in Indonesia related to the Triple Helix and cluster approach for chosen Industrial Clusters in Java. In this paper, the focus will be on six selected industrial clusters across the Java region. They are Gresik Industrial District in East Java, Tugu Wijaya Semarang in Central Java, Sentul Bogor in West Java, Jababeka in Bekasi, Kujang Industrial District, and Kawasan Berikat Nusantara in Jakarta. In conjunction with the fact in Indonesian industrial condition, Indonesian government initiated the setting up of industrial district which later known as 2 industrial cluster to make existence easier for both domestic and international investors by providing all necessary infrastructure, facilities and housing in one safe location - at a reasonable cost - thus providing a secure base for industry and manufacturing. Regarding clustering approach, Indonesia has a very long tradition of SMEs (Small and Medium Sized Enterprises) cluster around similar activities. In 2002, the cluster comprised approximately 3700 firms mostly SMEs employing 58.000 permanent workers (Loebis and Schmitz, 2005). They are usually craft industries and export oriented driven. About 70% of the cluster production is exported while the rest is sold on the domestic markets. However, little is known about the critical success factors that determine economic development of cities and regions and empirical studies that draw lessons for policy are scarce (Tichy, 1998), specifically for implementing cluster approach in industry/manufacturing sector in Indonesia. Moreover, there are good reasons to doubt to what extent a purely sectoral view is adequate to analyse region economic growth and to design policies. There are many indications that urban economic growth increasingly seems to emerge from fruitful cooperation between economic actors, who form innovative networks. It is in these geographically concentrated network configurations, or ‘cluster’ that value-added and employment growth in urban regions is realised. This demands a new policy approach in urban economic development, specifically for Indonesian study. Accordingly, it is motivating to investigate the process of cluster building in industrial district in Java region as the important region due to economic, social, and political condition. Thus, details can be read in the following section within this paper. |
| Keywords: | Cluster; Triple Helix; SMEs; |
| JEL: | O5 |
| Date: | 2007–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5831&r=ino |
| By: | Reiko Aoki; Aaron Schiff |
| Abstract: | We focus on downstream uses that combine multiple intellectual property rights and examine the effects of introducing an intellectual property clearinghouse that reduces transaction costs associated with licensing. We show that this causes equilibrium royalties to rise in some cases and may harm licensors due to the etragedy of the anticommonsf. Downstream welfare effects may also be positive or negative and we characterise the effects on downstream manufacturers and final consumers. We also show that total welfare is most likely to increase following a transaction cost reduction when the number of intellectual property rights per downstream use is small, or if rights are relatively substitutable in downstream use, but it is also possible for welfare to decrease. |
| Keywords: | Intellectual property, licensing, tragedy of the anticommons, clearinghouses |
| JEL: | L24 O34 |
| Date: | 2007–06 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:a495&r=ino |
| By: | IRAWATI, DESSY |
| Abstract: | This paper is based on the conceptual and theoretical analysis regarding the triple helix model as the demand or a challenge for developing country, particularly the Indonesian case study under investigation. The paper will discuss the essential stages required to establish a robust synergy between three different actors: the university, the industry and the government alongside the local context in Indonesia, mainly the role of university in providing help for SMEs in Indonesia together with the government or other institutional developing agencies. This paper will also explore the promotion of SMEs by clustering approach as the fact that Indonesian SMEs are scattered across the region. Furthermore, this paper will analyse the potential strengths and weaknesses within Indonesian SMEs, of setting up appropriate strategic movements for the future of the triple helix paradigm itself. It will start with the lessons, learned from the implementation of the triple helix implementation in the developed countries then it will look at the local Indonesian context in order to bridge the gaps within the actors involved. |
| Keywords: | Triple Helix; Cluster Approach; SMEs (Small and Medium Sized Enterprises); University – Industry - Government Relations |
| JEL: | O5 |
| Date: | 2006–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:5829&r=ino |