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on Innovation |
| By: | Josh Lerner; Morten Sørensen; Per Strömberg |
| Abstract: | A long-standing controversy is whether LBOs relieve managers from short-term pressures from public shareholders, or whether LBO funds themselves are driven by short-term profit motives and sacrifice long-term growth to boost short-term performance. We investigate 495 transactions with a focus on one form of long-term activities, namely investments in innovation as measured by patenting activity. We find no evidence that LBOs are associated with a decrease in these activities. Relying on standard measures of patent quality, we find that patents granted to firms involved in private equity transactions are more cited (a proxy for economic importance), show no significant shifts in the fundamental nature of the research, and are more concentrated in the most important and prominent areas of companies' innovative portfolios. |
| JEL: | G24 G32 O31 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14623&r=ino |
| By: | Ilir Maçi; Kresimir Zigic |
| Abstract: | We study the potential loss in social welfare and changes in incentives to invest in R&D that result when the market leading firm is deprived of its position. We show that under plausible assumptions like free entry or repeated market interactions there is a social value of market leadership and its mechanical removal by means of competition policy is likely to be harmful for society. |
| Keywords: | Market leaders, Competition policy, Innovation. |
| JEL: | F12 F13 L11 L13 L16 K21 |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp375&r=ino |
| By: | Fumiko Hayashi; Zhu Wang |
| Abstract: | This paper studies product innovation and firm survival in the U.S. ATM/debit card industry. The industry started with a few shared ATM networks in the early 1970s. The number of networks grew quickly up until the mid 1980s, but then declined sharply. We construct a theoretical model based on Jovanovic and MacDonald (1994). In contrast to their model focusing on cost-saving technological innovation, our model shows a major product innovation may also trigger the shakeout. The theoretical predictions are tested using a novel dataset on network entry, exit, size, location, ownership and product choices. The findings suggest introducing the point of sale debit function in the mid 1980s played an important role driving the network consolidation. Unlike previous studies, we find little advantage of being early industry entrants. Rather, due to network effects in the industry, large networks had better chance to adopt the product innovation and survive the shakeout. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedkrw:rwp08-14&r=ino |
| By: | Alessandro Innocenti; Francesco Molinari |
| Abstract: | This paper provides evidence of the positive correlation between participation in the European ICT-RTD Programmes, the innovation capacity of the EU regions and the growth of regional added value adjusted by worked hours, We also offer additional support to the findings of previous studies concerning the raionale of the geographical concentration of innovation activities in some core areas of Europe. This evidence calls for a further integration of EU ICT-RTD policies at regional rather than national level, particularly encouraging the participation of regional organizations in multiple and related instruments. |
| Keywords: | regional innovation systems, regional growth, European policies, ICT RTD programmes. |
| JEL: | C23 E62 O38 R58 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:usi:depfid:1208&r=ino |