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on Innovation |
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Issue of 2009‒05‒23
nineteen papers chosen by Steffen Lippert Massey University Department of Commerce |
| By: | Paul Grootendorst |
| Abstract: | The question as to how society should support pharmaceutical (‘pharma’) innovation is both pertinent and timely: Pharma drugs are an integral component of modern health care and hold the promise to treat more effectively various debilitating health problems. The rate of pharma innovation, however, has declined since the 1980s. Many observers question whether the patent system is capable of providing the appropriate incentives for pharma innovation and point to several promising alternative mechanisms. These mechanisms include both ‘push’ programs – subsidies directed towards the cost of pharma R&D – and ‘pull’ programs – lumpsum rewards for the outputs of pharma R&D, that is, new drugs. I review evidence why our current system of pharma patents is defective and outline the various alternative mechanisms that may spur pharma innovation more effectively. |
| Keywords: | Pharmaceuticals, R&D, patents, prizes, innovation |
| JEL: | I18 O34 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:sedapp:246&r=ino |
| By: | Raquel Ortega-Argiles (European Commission, Joint Research Centre (JRC); Institute for Prospective Technological Studies (IPTS), Sevilla); Mariacristina Piva (Universita Cattolica del Sacro Cuore, Milano); Lesley Potters (European Commission, Joint Research Centre (JRC); Institute for Prospective Technological Studies (IPTS), Sevilla; Utrecht School of Economics, Utrecht); Marco Vivarelli (European Commission, Joint Research Centre (JRC); Institute for Prospective Technological Studies (IPTS), Sevilla; Universita' Cattolica del Sacro Cuore, Milano; Institute for the Study of Labour (IZA), Bonn) |
| Abstract: | This paper discusses the link between R&D and productivity across the European industrial and service sectors. The empirical analysis is based on both the European sectoral OECD data and on a unique micro longitudinal database consisting of 532 top European R&D investors. The main conclusions are as follows. First, the R&D stock has a significant positive impact on labour productivity; this general result is largely consistent with previous literature in terms of the sign, the significance and the magnitude of the estimated coefficients. More interestingly, both at sectoral and firm levels the R&D coefficient increases monotonically (both in significance and magnitude) when we move from the low-tech to the medium and high-tech sectors. This outcome means that corporate R&D investment is more effective in the high-tech sectors and this may need to be taken into account when designing policy instruments (subsidies, fiscal incentives, etc.) in support of private R&D. However, R&D investment is not the sole source of productivity gains; technological change embodied in gross investment is of comparable importance on aggregate and is the main determinant of productivity increase in the low-tech sectors. Hence, an economic policy aiming to increase productivity in the low-tech sectors should support overall capital formation. |
| Keywords: | R&D, productivity, high-tech sectors, innovation and industrial policy |
| JEL: | O33 |
| Date: | 2009–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-038&r=ino |
| By: | Gumbau-Albert, Mercedes; Maudos, Joaquin |
| Abstract: | This paper analyses the importance of different technological inputs (R&D and human capital) and different spillovers in explaining the differences in patenting among Spanish regions in the period 1986-2003. The analysis is based on the estimation of a knowledge production function. A region’s own R&D activities and human capital are observed to have a positive significant effect on innovation output, measured by the number of patents. R&D spillovers weighted by the distance and the volume of trade flows between regions cause positive effects on a region’s patents. However, distance matters more than the intensity of trade flows and the R&D spillover effects between regions are bounded: spillovers from closer regions perform better than spillovers from distant regions. On the opposite side, human capital spillovers do not cause any effect outside the region itself. |
| Keywords: | patents; R&D; human capital; spillovers |
| JEL: | O18 O31 R11 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15260&r=ino |
| By: | Roderik Ponds; Frank van Oort; Koen Frenken |
| Abstract: | This paper analyses the effect of knowledge spillovers from academic research on regional innovation. Spillovers are localized to the extent that the underlying mechanisms are geographically bounded. However, university-industry collaboration - as one of the carriers of knowledge spillovers - is not limited to the regional scale. Consequently, we expect spillovers to take place over longer distances. The effect of university-industry collaboration networks on knowledge spillovers is modelled using an extended knowledge production function framework applied to regions in the Netherlands. We find that the impact of academic research on regional innovation is mediated not only by geographical proximity but also by social networks stemming from collaboration networks. |
| Keywords: | knowledge production function, knowledge spillovers, university-industry collaboration, innovation, social networks |
| JEL: | C21 O18 O31 R11 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0903&r=ino |
| By: | Dietmar Harhoff; Karin Hoisl; Bruno van Potteslberghe de la Potterie |
| Abstract: | This paper analyzes firms’ choices regarding the geographic scope of patent protection within the European patent system. We develop an econometric model at the patent level to quantify the impact of office fees and translation costs on firms’ decision to validate a patent in a particular country once it has been granted by the EPO. These costs have been disregarded in previous studies. The results suggest that both translation costs and fees for validation and renewals have a strong influence on the behavior of applicants. The estimates are then employed to simulate the impact of the London Protocol, a recent policy reform which reduces translation requirements in the European patent system. National validations of patents granted by the EPO are estimated to increase by 29%. |
| Keywords: | Patents, patent fees, patent validation, renewal fees, translation costs. |
| JEL: | O30 O31 O38 O57 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2009_016&r=ino |
| By: | Astrid Cullmann; Jens Schmidt-Ehmcke; Petra Zloczysti |
| Abstract: | This paper assesses the relative efficiency of knowledge production in the OECD using a nonparametric DEA approach. Resources allocated to R&D are limited and should therefore be used efficiently given the institutional and legal constraints. This paper presents efficiency scores based on an intertemporal frontier estimation for the period 1995 to 2004 and analyzes the impact of the regulatory environment using the single bootstrap procedure suggested by Simar and Wilson (2007). The empirical evidence supports the hypothesis that barriers to entry, aimed at reducing competition, lower research efficiency by attenuating the incentive to innovate and to allocate resources efficiently. |
| Keywords: | R&D efficiency, data envelopment analysis, truncated regression, regulation |
| JEL: | C14 C24 L50 O31 O57 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp883&r=ino |
| By: | Uwe Cantner (Friedrich Schiller University Jena, Chair of Economics / Microeconomics); Kristin Joel (Friedrich Schiller University Jena, Chair of Economics / Microeconomics); Tobias Schmidt (Deutsche Bundesbank, Economic Research Centre) |
| Abstract: | The aim of this paper is to analyse the effects of knowledge management on the innovation success of firms in Germany. Using a matching procedure on data from the German Innovation Survey of 2003 ("Mannheim Innovation Panel"), we pair firms applying knowledge management with twin firms with similar characteristics not applying knowledge management. Our focus is on investigating the effects of knowledge management techniques on the economic success of firms with product and process innovations. The results of our matching analysis reveal that firms which apply knowledge management perform better in terms of higher-than-average shares of turnover with innovative products compared to their twins. We do not find a significant effect of knowledge management on the share of cost reductions with process innovation. |
| Keywords: | knowledge management, innovation, matching estimator |
| JEL: | O32 L23 L25 M11 |
| Date: | 2009–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-037&r=ino |
| By: | Jens Schmidt-Ehmcke; Petra Zloczysti |
| Abstract: | This paper analyzes research efficiency at the industry level in manufacturing for 13 European member and four nonmember countries during 2000 and 2004. A unique dataset was compiled that matches patent applications at the European Patent Office (EPO) to industry-specific R&D inputs from EU KLEMS. We find that Germany, the United States, and Denmark have the highest efficiency scores on average in total manufacturing. The main industries that are at the technology frontier are those involved in electrical and optical equipment and machinery. Separate frontier estimations for these industries, conducted without the constraint of a constant technology frontier, provide additional support for our results. |
| Keywords: | R&D efficiency, industry level, data envelopment analysis, manufacturing |
| JEL: | C14 L60 O31 O57 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp884&r=ino |
| By: | HOSONO Kaoru; TAKIZAWA Miho; TSURU Kotaro |
| Abstract: | We investigate the impact of merger on innovation and efficiency using a micro dataset of Japanese manufacturing firms including unlisted firms during the period of 1995-1999. We find that the acquirer's total factor productivity (TFP) decreases immediately after mergers and does not significantly recover to the pre-merger level within three years after mergers. We also find that the R&D intensity does not significantly change after mergers in spite of a significant increase in the debt-to-asset ratio. Our results suggest that the costs of business integration are large and persistent. To take into considering large integration costs, we also analyze the post-merger performance from one year after mergers, finding no significant increase in TFP or R&D intensity up to three years after mergers. Given the heterogeneity of mergers, we analyze the post-merger performance by classifying merger types. We find that the recovery of TFP after mergers is significant for mergers across industries or within the same business group, suggesting that a synergy effect works well and integration costs are small for those types of mergers. |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:09017&r=ino |
| By: | Alexandra Schröter (Friedrich Schiller University Jena, Faculty of Economics and Business Administration) |
| Abstract: | Ever since its introduction in the 1990s, the systems of innovations (SI) concept has received a great deal of attention from researchers and politicians. The systems of innovation policy (SIP) approach, which is based on the SI concept, is considered an alternative to neoclassical theory. Its goal is to provide new rationales and criteria for innovation policy, as well as concrete implications and guidelines for policymakers, that are more appropriate for innovation processes in comparison to the rationales and criteria of standard economic theory. The aim of this paper is to critically investigate to what extent the SIP approach provides additional rationales for public intervention in innovation processes compared to neoclassical theory. |
| Keywords: | Innovation, innovation systems, innovation policy |
| JEL: | O31 O38 P00 |
| Date: | 2009–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2009-033&r=ino |
| By: | Sunil Kanwar |
| Abstract: | This paper investigates whether, in what direction, and to what extent one mode of technology transfer – namely, overseas R&D – is influenced by the strength of intellectual property protection that host nations provide. Using data spanning the period 1977-2004, we find weak support at best for the claim that strengthening intellectual property rights will have a significant positive influence on the magnitude of overseas R&D investment by (US) multinationals. This result is found to be robust to dis-aggregation of both the measure of intellectual property protection into its component indices, as well as to dis-aggregation of overseas R&D into industry-specific magnitudes. Instead, the host country market size and availability of local human capital resources are found to be the consistently important explanatory variables. [CDE DSE WP NO 166] |
| Keywords: | intellectual property; technology transfer; overseas r&d; estimation model |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1948&r=ino |
| By: | Gustavo Crespi; Pablo D’Este; Roberto Fontana; Aldo Geuna |
| Abstract: | This paper contributes to the ongoing debate on the impact of academic patenting. On the basis of CV information and two separate surveys, we provide the first empirical evidence for a sample of UK academics in physics, chemistry, computer science and a subset of engineering. The main contribution of this paper is twofold. First, our econometric results suggest that academic patenting is complementary to publishing at least up to a certain level of patenting output after which we found some evidence of a substitution effect. Second, our analysis of the potential impact of patenting on the other channels of knowledge transfers seems to indicate that patenting does not have a negative impact on the other channels of knowledge exchange. We have found some positive correlation between the stock of patents and other channels of knowledge transfer, however, also in this case, we have found that a substitution effect sets in indicating a inverted U shape type of relationships between patenting and other knowledge transfer channels. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:01-2009&r=ino |
| By: | Thomas Brenner; Tom Broekel |
| Abstract: | Measuring the innovation performance of regions or nations has been repeatedly done in the literature. What is missing in the literature is a discussion of what innovation performance of a region means. How do regions or nations contribute really to the innovation output of Þrms? And how can this contribution be investigated in an empirically sound way? We argue that while the literature offers many suggestions, their theoretical foundation is often weak and the under- lying assumptions are rarely discussed. In this paper, we systematize various mechanisms by which spatial units inßuence ÞrmsÕ innovation activities. On the basis of this, common innova- tion performance measures and analyses are discussed and evaluated. It is concluded that there is no general best way of measuring the innovation performance of spatial units. In fact, the most interesting insights can be obtained using a multitude of different approaches at the same time. |
| Keywords: | innovation performance, regional innovativeness, innovation generation, regional innovation system, national innovation system |
| JEL: | R11 O31 R11 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0904&r=ino |
| By: | Tuomas Takalo |
| Abstract: | ABSTRACT : Economic interest in innovation policy largely arises from the fundamental importance of innovation to social welfare and from well-known inefficiencies in innovation in a competitive market environment. As a result, a wide variety of public innovation policies are used in practice. This report reviews the economic justifications for public innovation policies and compares the existing policy tools, paying particular attention to the Finnish innovation policy environment. |
| Date: | 2009–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1185&r=ino |
| By: | Cristiano Antonelli; Morris Teubal |
| Abstract: | This paper explores the new market-mediating mechanisms linking SU invention on the one hand and economic growth on the other. Two such mechanisms come to our mind under venture capitalism (of which venture capitalism is directly involved only in the first): 1) a systemic rather than haphazard link between radical inventions and the emergence of new product markets; and 2) a link between new product markets) on the one hand and invention & unbundled technology markets on the other. The first highlights not only the volatility and precariousness of the R&D companies which operated prior to venture capitalism, but also, and related to this, the weak links that existed then between radical invention and the emergence of new markets. There are two aspects of 2) above: 2a) derived demand for improvements in the product and process technology underlying a market (and industry); and 2b) a demand for a substitute, disruptive technology which could replace the existing one. In both cases market size signals the ‘benefits’ to be derived from improving or substituting the underlying technology. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:03-2009&r=ino |
| By: | Sami SAAFI (labrii, ULCO) |
| Abstract: | L’objectif de cet article est de déterminer les effets de la diffusion des innovations technologiques sur la demande de la main d'oeuvre qualifiée pour le cas d’un pays en développement (en l’occurrence la Tunisie). Cette étude présente trois originalités. La première tient à la prise en compte des coûts d'ajustement. La deuxième originalité tient à la mesure de l’innovation. La troisième originalité tient à la nature de données utilisées. L'étude économétrique montre l'existence d'un biais technologique, qui favorise la demande des cadres -supposés la main-d'oeuvre la plus qualifiée-par les industries. A cet effet s'ajoute un second effet favorable à la main d'oeuvre qualifiée: cette dernière est plus fortement complémentaire au capital que les ouvriers, qui sont supposés la main-d'oeuvre non qualifiée. |
| Abstract: | The aim of this article is to discover the effect of technological innovations diffusion on skilled-labour demand in the case of developing countries (especially in Tunisia). This research presents three originalities. The first takes into considerations the adjustment costs. The second originality depends on the innovation measurement. The third originality is due to the nature of used data. The econometric research shows the existence of skill-biased technical change that favour the industries demand of managers. These later are supposed the most skilled-labour. In addition to this effect, they complement the capital rather than the manual workers, who are supposed unskilled-labour. |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:206&r=ino |
| By: | Enrica De Cian (Fondazione Eni Enrico Mattei and School of Advanced Studies in Venice) |
| Abstract: | Starting from a system of factor demands, an empirical model that allows estimating factor-augmenting technical change is derived. Factor-augmenting technical change is defined as the improvement in factor productivities that can occur either exogenously or endogenously, with changes in other macroeconomic variables. This paper provides additional estimates for the substitution possibilities among inputs and it offers new empirical evidence on the direction and sources of factor-augmenting technical change, an issue that has not yet been explored by the empirical literature on growth determinants. The empirical findings suggest that technical change is directed. Technical change tends to be more energy-saving than capital- and labour-saving. Both R&D investments and international trade are important determinants of growth in energy and capital productivity whereas technical change for labour is positively related to education expenditure. Therefore, the sources of factor-augmenting technical change go beyond R&D investments, as proposed in the theory of directed technical change, and they differ across inputs. In other words, not only is technical change directed, the sources of factor-augmenting technical change appear to be input specific. |
| Keywords: | Factor-Augmenting Technical Change, Technology Spillovers, Panel Data |
| JEL: | C3 O47 Q55 Q56 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.18&r=ino |
| By: | Francesco Quatraro |
| Abstract: | This paper analyzes the effects of the evolution of knowledge base in the manufacturing sectors on regional productivity growth. Knowledge is viewed as a heterogeneous asset, and an evolutionary perspective is adopted. The results of the empirical estimations corroborate the hypothesis that beyond the traditional measure of knowledge stock, knowledge coherence and variety matter in shaping productivity dynamics. The check for spatial dependence suggests that cross-regional externalities exert additional triggering effects on productivity growth, without debasing the effects of knowledge. Important policy implications stem from the analysis, in that regional innovation strategies should be carefully coordinated so as to reach a higher degree of internal coherence and exert positive effects on productivity. |
| Keywords: | knowledge, variety, regional growth, productivity |
| JEL: | O33 R11 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0902&r=ino |
| By: | Valentina Bosetti (Fondazione Eni Enrico Mattei and CMCC); Carlo Carraro (FEEM, University of Venice, CEPR, CESIFO and CMCC); Romain Duval (OECD, Economics Department); Alessandra Sgobbi (Fondazione Eni Enrico Mattei and CMCC); Massimo Tavoni (Fondazione Eni Enrico Mattei and CMCC) |
| Abstract: | This paper uses the WITCH model, a computable general equilibrium model with endogenous technological change, to explore the impact of various climate policies on energy technology choices and the costs of stabilising greenhouse gas concentrations. Current and future expected carbon prices appear to have powerful effects on R&D spending and clean technology diffusion. Their impact on stabilisation costs depends on the nature of R&D: R&D targeted at incremental energy efficiency improvements has only limited effects, but R&D focused on the emergence of major new low-carbon technologies could lower costs drastically if successful – especially in the non-electricity sector, where such low-carbon options are scarce today. With emissions coming from multiple sources, keeping a wide range of options available matters for stabilisation costs more than improving specific technologies. Due to international knowledge spillovers, stabilisation costs could be further reduced through a complementary, global R&D policy. However, a strong price signal is always required. |
| Keywords: | Climate policy; Energy R&D; Fund; Stabilisation costs |
| JEL: | H0 H2 H3 H4 O3 Q32 Q43 Q54 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2009.14&r=ino |