|
on Innovation |
|
Issue of 2010‒04‒17
forty-five papers chosen by Steffen Lippert Massey University Department of Commerce |
| By: | Seong-Sang Lee; Yeonbae Kim (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | With the premise that patent data are reliable indicators of innovativeness, the empirical analysis of R&D?patents relationship is useful for monitoring the efficiency of the innovation process. This paper extends the research on the relationship between R&D spending and patent counts by estimating the impact of efficiency parameters. A data set from 1255 firms with nonzero R&D expenditures in Korea was studied. Results show that the difference in firms¡¯ innovative performance is attributable to firm-specific characteristics, including propensity to patent and firm size, and differences in efficiency parameters. They also indicate that firms that conduct patent searches before starting R&D activities obtain an average of 13.9% more patents with an increase of one unit on the ¡®patent search¡¯ scale. Results also show the importance of the role of IP managers and revenue splitting policy for employee-inventors in the innovation process. |
| Keywords: | Incentive for employee-inventor, Innovation process, Innovative performance, IP manager, preliminary patent search, R&D-patents relationship |
| Date: | 2009–10 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200924&r=ino |
| By: | Lesley Potters (JRC-IPTS) |
| Abstract: | This research investigates deals with the impact of various innovation activities on innovation output by using Spanish CIS3 data on 3,247 innovative firms and applying several Knowledge Production Functions. It is confirmed that different innovation activities lead to differences in both the propensity to innovate and innovation output, depending on the technological characteristics a firm has. In general, internal R&D leads to product innovation, while machinery acquisition leads to process innovation. Size, group belonging and protection of innovations are important determinants for innovation output, but show either a positive or negative relation, depending again on the firm's innovation strategy. |
| Keywords: | R&D, innovation, Knowledge Production Function, double sample selection |
| JEL: | O33 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:200910&r=ino |
| By: | Ana Pérez-Luño (Department of Business Administration, Universidad Pablo de Olavide); Ramón Valle-Cabrera (Department of Business Administration, Universidad Pablo de Olavide) |
| Abstract: | While there is robust empirical evidence that firm patenting is positively associated with various measures of overall performance and competitiveness, less is known about what determines the patenting choice. For this reason, this paper examines whether R&D expenditure and the type of knowledge used in the invention determine the decision to patent. With this aim, we use a sample of firms and the European Patent Office to analyse how the combination of R&D expenditure and knowledge codifiability, observability and simplicity influences the patent decision. Our results contribute to the literature and assist R&D managers by showing that both R&D and codified knowledge have a positive impact on the number of inventions patented by a firm, while observable knowledge has a negative impact on patents. Furthermore, we find that the effect of R&D expenditure on the propensity to patent inventions is negatively moderated by knowledge observability and simplicity. |
| Keywords: | : R&D, patents, knowledge, invent |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpbsad:10.01&r=ino |
| By: | Flavio Lenz-Cesar; Almas Heshmati (Technology Management, Economics and Policy Program(TEMEP), Seoul National University) |
| Abstract: | R&D cooperation has received great attention among industrialists, decision makers and researchers as it facilitates research collaboration, information sharing, reduced R&D cost, and affects R&D resource allocation, advancement and competitiveness of the national industry, employment and survival of firms. This paper introduces an econometric approach for identifying the factors that lead firms to cooperative innovation. The determinants of firms cooperation in innovation were defined according to empirical findings on a dataset from the internationally standardized Korean Innovation Survey 2005, captured in a multivariate probit regression model. The model identified the determinants on firms¡¯ likelihood to participate in cooperation with other organizations when conducting innovation activities. The aim of this model was to subsidize further research applying agent-based modeling to simulate innovation networks in the Korean manufacturing sector in order to test different policy strategies on fostering cooperation in innovation. |
| Keywords: | Collaborative R&D, multivariate probit models, Korean innovation survey |
| JEL: | C35 C71 D20 L20 O31 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:200927&r=ino |
| By: | Hagedoorn, John (UNU-MERIT, and Maastricht University); Wang, Ning (Maastricht University) |
| Abstract: | The mixed picture of extant research on the relationship between internal and external R&D prompts us to ask such a question: under what conditions is there complementarity or substitutability between different R&D strategies? The goal of this paper is to contribute to the empirical literature by advancing and testing the contingency of the relationship between internal and external R&D strategies in shaping firms‘ innovative output. Using a panel sample of incumbent pharmaceutical firms covering the period 1986-2000, our empirical analysis suggests that the level of in-house R&D investments, which is characterized by decreasing marginal returns, is a contingency variable that critically influences the nature of the link between internal and external R&D strategies. In particular, internal R&D and external R&D, through either R&D alliances or R&D acquisitions, turn out to be complementary innovation activities at higher levels of in-house R&D investments, whereas at lower levels of in-house R&D efforts internal and external R&D are substitutive strategic options. These findings are robust to alternative specifications and estimation techniques, including a dynamic perspective on firm innovative performance. |
| Keywords: | Complementarity, Substitutability, Internal R&D, External R&D, Innovative Output, Pharmaceutical Industry, Biotechnology |
| JEL: | O32 L24 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2010005&r=ino |
| By: | Joëlle Noailly |
| Abstract: | This paper investigates the impact of alternative environmental policy instruments on technological innovations aiming to improve energy efficiency in buildings. The empirical analysis focuses on three main types of policy instruments, namely regulatory energy standards in buildings codes, energy taxes as captured by energy prices and specific governmental energy R&D expenditures. Technological innovation is measured using patent counts for specific technologies related to energy efficiency in buildings (e.g. insulation, high-efficiency boilers, energy-saving lightings). The estimates for seven European countries over the 1989-2004 period imply that a strengthening of 10% of the minimum insulation standards for walls would increase the likelihood to file additional patents by about 3%. In contrast, energy prices have no significant effect on the likelihood to patent. Governmental energy R&D support has a small positive significant effect on patenting activities. |
| Keywords: | Innovation; technological change; patents; energy-efficiency; buildings; environmental policy |
| JEL: | O31 O34 Q55 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:137&r=ino |
| By: | Raquel Ortega-Argilés (JRC-IPTS); Maria-Cristina Piva (Universita Cattolica di Milano); Lesley Potters (JRC-IPTS); Marco Vivarelli (Universita Cattolica di Milano) |
| 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 over the period 1987-2002 and on a unique micro longitudinal database consisting of 532 top European R&D investors over the six-year period 2000-2005. 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 it is the main determinant of the productivity increase in the low-tech sectors. Hence, an economic policy aiming to increase productivity in the low-tech sectors should support the overall capital formation. |
| Keywords: | R&D, productivity, high-tech sectors, innovation and industrial policy |
| JEL: | O33 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:20099&r=ino |
| By: | Fabio Pammolli; Massimo Riccaboni; Laura Magazzini (Department of Economics (University of Verona)) |
| Abstract: | We analyze the decline of R&D productivity in pharmaceuticals and its determinants. Since the molecular biology revolution, science has dramatically expanded the set of plausible therapeutic targets. However, innovation has become more difficult to achieve, and attrition rates of R&D projects have increased, especially in late-phase clinical trials. We show that the R&D productivity slowdown is associated with a higher concentration of R&D investments in high-risk domains, corresponding to unsolved therapeutic needs and unexploited biological mechanisms. We compare the strategies of European and US companies, finding differences in the composition of R&D portfolios, but no evidence of any productivity gap. |
| Keywords: | R&D productivity, pharmaceutical industry |
| JEL: | O31 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:ver:wpaper:6/2010&r=ino |
| By: | Hall, Bronwyn H. (University of California at Berkeley, UNU-MERIT, and Maastricht University); Mairesse, Jacques (UNU-MERIT, Maastricht University, and CREST); Mohnen, Pierre (UNU-MERIT, Maastricht University, and CIRANO) |
| Abstract: | We review the econometric literature on measuring the returns to R&D. The theoretical frameworks that have been used are outlined, followed by an extensive discussion of measurement and econometric issues that arise when estimating the models. We then provide a series of tables summarizing the major results that have been obtained and conclude with a presentation of R&D spillover returns measurement. In general, the private returns to R&D are strongly positive and somewhat higher than those for ordinary capital, while the social returns are even higher, although variable and imprecisely measured in many cases. |
| Keywords: | returns to R&D, innovation, social returns, spillovers |
| JEL: | O30 C23 C81 D24 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2010006&r=ino |
| By: | Honjo, Yuji; Kato, Masatoshi; Okamuro, Hiroyuki |
| Abstract: | This paper explores research and development (R&D) financing of start-up firms. Using a sample from an original survey conducted in 2008, we identify whether initial funds and founder-specific characteristics relate to R&D investment of start-up firms in Japan. It is found that internal finance is positively associated with R&D investment. It is also found that founders with higher educational background, prior innovation output and academic affiliation tend to raise more funds for R&D. On the other hand, we provide evidence that the effects of founders' human capital are mediated by investment opportunities, which would indicate that R&D investment of start-up firms depends heavily on investment opportunities. |
| Keywords: | Founder, Human capital, Internal finance, R&D, Start-up |
| JEL: | G30 M13 O32 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hitcei:2009-15&r=ino |
| By: | Gantumur, Tseveen (DIW); Stephan, Andreas (JIBS) |
| Abstract: | To quickly adapt to technological change and developments, and thus remain competitive, firms increasingly resort to the use of external technology. This paper investigates whether and to what extent the acquisition of external disembodied technology affects the efficiency and productivity in innovation of technology acquiring firms. Using the stochastic frontier analysis combined with a difference-in-difference matching approach and firm-level panel from the German Innovation Survey for the period 1992-2004, we find that manufacturing firms that acquire disembodied technology experience more growth in innovative productivity than nonacquiring firms do. Thus, this study provides evidence on complementarity between internal and external R&D in innovation production, which is attributed by increasing returns to R&D scale and increasing technical efficiency. Moreover, we find that firm size significantly contributes to innovative efficiency and productivity of external technology acquirers. |
| Keywords: | Technology Acquisition; Innovative Efficiency; Innovative Productivity; SFA; Difference-in- Difference Matching |
| JEL: | L24 L25 L60 O30 |
| Date: | 2010–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0222&r=ino |
| By: | Raquel Ortega-Argilés (JRC-IPTS); Andries Brandsma (JRC-IPTS) |
| Abstract: | The average firm size of the top R&D investors among US-based companies is smaller than that of the EU-based firms. Does this help to explain why the US has a greater R&D intensity, or is the higher firm size in the EU, just as its lower R&D intensity, determined by the sectors in which the top R&D investors are operating? Using data on the top-R&D investors from the 2006 EU Industrial R&D Investment Scoreboard, the size differential between R&D performers in the EU and US is more closely examined. A first observation is that, despite great differences between sectors, the overall distribution of companies' R&D investments in both economies is remarkably similar, as opposed to the distribution of the R&D/sales ratios of the same two sets of companies. The notion that size plays a role, independent of the sectoral composition of R&D, is then confirmed by regression analysis. In the US as well as in the EU, smaller sized Scoreboard companies tend to spend a larger proportion of their income from sales on R&D. |
| Keywords: | Research and Development intensity, EU-US R&D gap, size of firms |
| JEL: | O33 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:20092&r=ino |
| By: | Peter Voigt (JRC-IPTS); Pietro Moncada-Paternò-Castello (JRC-IPTS) |
| Abstract: | R&D and the entire innovation process are likely to be affected by the current crisis. Apart from changes in R&D spending, as any crisis usually provides also chances it may stimulate a new wave of networked / open innovation and in this regard lead to 'creative destruction' as Schumpeter called it. Thus, high-technology manufacturing is far better-positioned to face the crisis compared to low-tech manufacturing, which is assumed to fare especially badly. The figures of R&D expenditure are assumed to evolve accordingly. And small companies and particularly those which are financially restricted (many SMEs) are supposed to suffer most. In general, the downturn is supposed to accelerate the shift of EU manufacturing towards higher value-added, highly integrated, and internationally oriented sectors. Assumed that the latter tends to be characterised by higher R&D-intensity this in turn may have a positive impact on R&D investment figures. But, as structural changes usually happen slowly, this leverage effect may appear just in the long-run. Empirical evidence from a series of recent business surveys [mainly capturing R&D-performing / higher R&D-intensity sectors] suggests that the perception as well as the funding of corporate R&D and innovation activities are holding up fairly well so far which suggests an anti-cyclic firm behaviour in terms of R&D engagement in the light of the current economic and financial crisis. For 2008/09 the estimates of R&D expenditure changes differ significantly among the sources – mainly due to the corresponding assumption on the further evolvement of the current financial and economic crisis with the estimate of 4.1% for EU – based on the JRC-IPTS' IRMA-Survey – well in-between. However, across the sources, the corridor for the R&D investment change is assumed to be above the corresponding assumptions on GDP and sales growth. Evidence suggests that the impact of the crisis on R&D activities and the correspondingly assumed adjustments of firm strategies is sector specific. However, looking at micro level, there is no unique company strategy obvious commonly applied to face the crisis. In fact, some companies leave their R&D engagements unchanged, others cut them down, and a third group even accelerates their R&D and innovation activities (inclusive a significant leveraging of spending on R&D). In this regard experiences from past downturns suggest that companies having the farsightedness and the courage to invest more in R&D and innovation activities while others are cutting back have a significant advantage in the inevitable upswing that will come. Market rewards will follow – but not immediately. |
| Keywords: | corporate strategy, R&D and innovation, R&D spending, economic crisis |
| JEL: | O33 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:200912&r=ino |
| By: | Raquel Ortega-Argilés (JRC-IPTS); Peter Voigt (JRC-IPTS) |
| Abstract: | This report discusses business R&D in SMEs in the light of a systematic review of publicly available information on industrial R&D, its common trends and related emerging issues. A number of factors towards better understanding of SME trajectories, specifics in terms of their R&D activities, and the attendant main challenges of SMEs are thus examined along their main boundaries. Company size, the life cycle stage of individual firms, the lack of entrepreneurial spirit in the EU, the lack of access to finance in Europe compared to the US, limited capabilities of SMEs, internationalisation/globalisation effects, intellectual property rights, and the effect of administrative burdens are considered in particular. In general, achieving a suitable support mix for business R&D in SMEs and embedding it in local, regional, national and European research and innovation systems remains an open but crucial question on the way towards achieving the Lisbon objectives. |
| Keywords: | business R&D, SMEs |
| JEL: | O33 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:20097&r=ino |
| By: | D. THORLEUCHTER; D. VAN DEN POEL; A. PRINZIE; |
| Abstract: | The planning of technological research and development (R&D) is demanding in areas with many relationships between technologies. To support decision makers of a government organization with R&D planning in these areas, a methodology to make the technology impact more transparent is introduced. The method shows current technology impact and impact trends from the R&D of an organization's competitors and compares these to the technology impact and impact trends from the organization's own R&D. This way, relative strength, relative weakness, plus parity of the organization's R&D activities in technology pairs can be identified. <br>A quantitative cross impact analysis (CIA) approach is used to estimate the impact across technologies. Our quantitative CIA approach contrasts to standard qualitative CIA approaches that estimate technology impact by means of literature surveys and expert interviews. In this paper, the impact is computed based on the R&D information regarding the respective organization on one hand, and based on patent data representative regarding R&D information of the organization's competitors on the other hand. As an illustration, the application field 'defence' is used, where many interrelations and interdependencies between defence-based technologies occur. Firstly, an R&D-based and patent-based Compared Cross Impact (CCI) among technologies is computed. Secondly, characteristics of the CCI are identified. Thirdly, the CCI data is presented as a network to show the overall structure and the complex relationships between the technologies. Finally, changes of the CCI are analyzed over time. The results show that the proposed methodology generates useful insights for government organizations to direct technology investments. |
| Keywords: | Compared cross impact, Cross impact analysis, Technological impact analysis, R&D, Patent analysis, Defence Taxonomy, Centroid Vector, Machine Learning, Multi Label Classification |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:10/632&r=ino |
| By: | Otto Toivanen (University of Helsinki); Lotta Väänänen (University of Mannheim) |
| Abstract: | A key input to inventive activity is human capital. Hence it is important to understand the monetary incentives of inventors. We estimate the effect of patented inventions on individual earnings by linking data on U.S. patents and their inventors to Finnish employer-employee data. Returns are heterogeneous: Inventors get a temporary reward of 3% of annual earnings for a patent grant and for highly-cited patents a longer-lasting premium of 30% in earnings three years later. Similar medium-term premia accrue to inventors who initially hold the patent rights, although they forego earnings at the time of the grant. |
| Keywords: | citations, effort, incentives, inventors, intellectual property, patents, performance pay, return, wages |
| JEL: | O31 J31 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:trf:wpaper:309&r=ino |
| By: | Pietro Moncada-Paternò-Castello (JRC-IPTS); Constantin Ciupagea (Institute of World Economy and Romanian Centre for Economic Modelling); Keith Smith (Australian Innovation Research Centre, University of Tasmania); Alexander Tübke (JRC-IPTS); Mike Tubbs (Innovomantex Ltd and Ashcroft International Business School) |
| Abstract: | This paper examines whether there are differences in private R&D investment performance between the EU and the US and, if so, why. The study is based on data from the 2008 EU Industrial R&D Investment Scoreboard. The investigation assesses the effects of several very distinct factors that can determine the relative size of the overall R&D intensities of the two economies: these are the influence of sector composition (structural effect) vis-à-vis the intensity of R&D in each sector (intrinsic effect) and the company demographics. The paper finds that the lower overall corporate R&D intensity for the EU is the result of sector specialisation (structural effect) - the US has a stronger sectoral specialisation in the high R&D intensity (especially ICT-related) sectors than does the EU, and also has a much larger population of R&D investing firms within these sectors. Since aggregate R&D indicators are so closely dependent on industrial structures, many of the debates and claims about differences in comparative R&D performance are in effect about industrial structure rather than sector R&D performance. These have complex policy implications that are discussed in the closing section. |
| Keywords: | Research and Development intensity, EU-US R&D gap, size of firms |
| JEL: | O33 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:200911&r=ino |
| By: | José García-Quevedo (Barcelona Institute of Economics (IEB) and Dpt. of Political Economy and Public Finance, University of Barcelona); Francisco Mas-Verdú (Dpt. of Economics and Social Sciences, Universidad Politécnica de Valencia and Barcelona Institute of Economics (IEB)); José Polo-Otero (CYD Foundation and Barcelona Institute of Economics (IEB)) |
| Abstract: | PhD graduates hold the highest education degree, are trained to conduct research and can be considered a key element in the creation, commercialization and diffusion of innovations. The impact of PhDs on innovation and economic development takes place through several channels such as the accumulation of scientific capital stock, the enhancement of technology transfers and the promotion of cooperation relationships in innovation processes. Although the placement of PhDs in industry provides a very important mechanism for transmitting knowledge from universities to firms, information about the characteristics of the firms that employ PhDs is very scarce. The goal of this paper is to improve understanding of the determinants of the demand for PhDs in the private sector. Three main potential determinants of the demand for PhDs are considered: cooperation between firms and universities, R&D activities of firms and several characteristics of firms, size, sector, productivity and age. The results from the econometric analysis show that cooperation between firms and universities encourages firms to recruit PhDs and point to the existence of accumulative effects in the hiring of PhD graduates. |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:xrp:wpaper:xreap2010-2&r=ino |
| By: | Frank R. Lichtenberg |
| Abstract: | We examine the effects of two important types of medical innovation—diagnostic imaging innovation and pharmaceutical innovation—and cancer incidence rates on U.S. cancer mortality rates during the period 1996-2006. The outcome measure we use is not subject to lead-time bias, and our measures of medical innovation are based on extensive data on treatments given to large numbers of patients with different types of cancer. We estimate difference-in-difference models of the age-adjusted cancer mortality rate using longitudinal, annual, cancer-site-level data on over 60 cancer sites. There is a significant inverse relationship between the cancer mortality rate and both lagged imaging innovation and contemporaneous drug innovation, and a significant positive relationship between the cancer mortality rate and the lagged incidence rate. Imaging innovation, drug innovation, and declining incidence jointly explain about three-fourths of the decline in cancer mortality. Only 7% of the mortality decline is attributable to the decline in (lagged) incidence. About one-fourth of the mortality decline is attributable to drug innovation, and 40% of the decline is attributable to (lagged) imaging innovation. Life expectancy at birth may have been increased by almost three months between 1996 and 2006 by the combined effects of cancer imaging and cancer drug innovation. |
| JEL: | C23 C33 I12 J1 L64 L65 O33 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15880&r=ino |
| By: | Luc Soete; Bart Verspagen; Bas ter Weel |
| Abstract: | We review the literature on national innovation systems. We first focus on the emergence of the concept of innovation systems, reviewing its historical origins and three main flavours (associated to three "founding fathers" of the concept). After this, we discuss how the notion of innovation systems filled a need for providing a broader basis for innovation policy. We conclude with some perspectives on the future of the innovation systems literature. |
| Keywords: | National innovation systems; innovation policy |
| JEL: | O38 O31 |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:138&r=ino |
| By: | Piercarlo Zanchettin; Vincenzo Denicolò |
| Abstract: | We study a quality-ladder model of endogenous growth that produces stochastic leadership cycles. Over a cycle, industry leaders can innovate several successive times in the same industry, gradually increasing the magnitude of their technological lead before being replaced by a new en-trant. Initially, new leaders are eager to enlarge their lead and do much of the research, but if they innovate repeatedly, their propensity to invest in R&D decreases. Eventually they stop doing research ltogether, and as they are overtaken a new cycle starts. The model generates a skewed firm size distribution and a deviation from Gibrat's law that accord with the empirical evidence. We also consider various policy measures, showing that in some cases policy should favour R&D by incumbents, not outsiders, and that stronger patent protection may reduce innovation and growth. |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:09/25&r=ino |
| By: | Michael Peneder (WIFO) |
| Abstract: | This paper presents an integrated set of innovation taxonomies for firms and sectors. It discards the practice of representing industries by some average behaviour, instead characterising them by the distribution of diverse innovation modes at the firm level. The theoretical focus is on (i) Schumpeter's distinction between "creative" and "adaptive response", and (ii) differences regarding technological opportunities, appropriability conditions and the cumulativeness of knowledge. Applying statistical cluster analysis, the empirical identification is based on the micro-data of the Community Innovation Survey (CIS) for 22 European countries. The final cluster validation highlights the simultaneous diversity and contingency of firm behaviour with distinct technological regimes exhibiting systematic differences in the distribution of heterogeneous firms. |
| Keywords: | Technological regimes, innovation modes, sectoral taxonomy, industry classification, cluster analysis |
| Date: | 2010–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2010:i:362&r=ino |
| By: | Fabrizio Cesaroni; Lola C. Duque |
| Abstract: | Firms have been modifying their innovation management processes to generate, implement and exploit new technological knowledge. A gradual shift from a closed to an open model of innovation has been the recurring pattern of this change. Firms have to revise their overall strategic orientation to adapt their managerial procedures according to the Open Innovation (OI) paradigm. The New Service-Dominant (S-D) Logic can offer a useful guideline to firms in the implementation of an OI model. This paper presents the bases of the OI paradigm by means of the S-D Logic mindset. For each of the premises characterizing the S-D Logic, instances of firms that have implicitly adopted the OI paradigm are provided. We discuss how the S-D Logic can be put in practice within the context of the OI model |
| Keywords: | S-D Logic, Open Innovation, Value creation, Co-creation capabilities |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wbrepe:wb100702&r=ino |
| By: | Tomislav Baković (Faculty of Economics and Business, University of Zagreb) |
| Abstract: | Successfully managing innovations has become the basic precondition for the development of both companies and national economies. At the national level governments are forming innovation systems whose primary goal is to create conditions at which science and technology can flourish and then transfer their findings trough private sector into new revolutionary products and services. Unfortunately not all countries have the same preconditions for creating such systems and transition economies due to many of their characteristics face serious difficulties. The aim of this paper is to first describe the role of innovations and innovation systems in economic development and then describe many problems transition countries face regarding this issue. After describing the main problems some of the measures that could be used to improve the current innovation output in transition economies are presented. |
| Keywords: | national innovation system, economic development, transition economies |
| JEL: | O30 |
| Date: | 2010–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:zag:wpaper:1001&r=ino |
| By: | Bala Subrahmanya, M. H. (Indian Institute of Science); Mathirajan, M. (Anna University); Krishnaswamy, K. N. (Indian Institute of Science) |
| Abstract: | This paper probes the drivers, dimensions, achievements, and outcomes of technological innovations carried out by SMEs in the auto components, electronics, and machine tool sectors of Bangalore in India. Further, it ascertains the growth rates of innovative SMEs vis-a-vis noninnovative SMEs in terms of sales turnover, employment, and investment. Thereafter, it probes the relationship between innovation and growth of SMEs by (i) estimating a correlation between innovation sales and sales growth, (ii) calculating innovation sales for high, medium, and low growth innovative SMEs and doing a one-way ANOVA, and (iii) ascertaining the influence of innovation sales, along with investment growth and employment growth on gross value-added growth by means of multiple regression analysis. The paper brings out substantial evidence to argue that innovations of SMEs contributed to their growth. |
| Keywords: | technological innovations, sales growth, auto components, electronics, machine tools, Bangalore |
| JEL: | L25 L26 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2010007&r=ino |
| By: | Julian P. Christ |
| Abstract: | This paper contributes with empirical findings to European co-inventorship location and geographical coincidence of co-patenting networks. Based on EPO co-patenting information for the reference period 2000-2004, we analyze the spatial configuration of 44 technology-specific co-inventorship networks. European co-inventorship (co-patenting) activity is spatially linked to 1259 European NUTS3 units (EU25+CH+NO) and their NUTS1 regions by inventor location. We extract 7.135.117 EPO co-patenting linkages from our own relational database that makes use of the OECD RegPAT (2009) Files. The matching between International Patent Classification (IPC) subclasses and 44 technology fields is based on the ISI-SPRU-OST-concordance. We confirm the hypothesis that the 44 co-inventorship networks differ in their overall size (nodes, linkages, self-loops) and that they are dominated by similar groupings of regions. The paper offers statistical evidence for the presence of highly localized European co-inventorship networks for all 44 technology fields, as the majority of linkages between NUTS3 units (counties and districts) are within the same NUTS1 regions. Accordingly, our findings helps to understand general presence of positive spatial autocorrelation in regional patent data. Our analysis explicitly accounts for different network centrality measures (betweenness, degree, eigenvector). Spearman rank correlation coefficients for all 44 technology fields confirm that most co-patenting networks co-locate in those regions that are central in several technology-specific co-patenting networks. These findings support the hypothesis that leading European regions are indeed multi-field network nodes and that most research collaboration is taking place in dense co-patenting networks. |
| Keywords: | co-patenting, co-inventorship, networks, linkages, co-location, RegPAT |
| JEL: | C8 O31 O33 R12 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:y:2010:i:31:p:1-40&r=ino |
| By: | Michele Cincera (JRC-IPTS); Raquel Ortega-Argilés (JRC-IPTS); Pietro Moncada-Paternò-Castello (JRC-IPTS) |
| Abstract: | Based on an original data set with information of a representative portfolio of among the largest 304 R&D investing companies over the 2003-2006 period, the overall analysis, except in a few cases, gives some robust evidence of a positive relationship between top R&D-investing companies and their performance in the stock markets as measured by the evolution of their market capitalisations' values. In terms of sectors, companies in the pharmaceuticals and biotechnology and software & computer services sectors in the UK and the chemicals sector in Germany appear to outperform the respective sectoral stock market indexes in which they operate. On the other hand some other sectors, such as technology hardware and equipment one in France, show an underperforming behaviour. Empirical findings from the econometric analysis suggest a positive impact of the firm's R&D intensity on its market capitalisation performance. Besides some data limitations which call for further investigations, R&D investment can without uncertainty be acknowledged as representing an important strategic element for companies' economic and financial performance, but is not the only one. To name a few of them, framework conditions in the economy, marketing activities and the level of market power of companies are only other important factors that have an impact on companies' performances which are also reflected on their stock markets values. |
| Keywords: | top R&D firms, market capitalisation performance, R&D intensity, size of R&D investments |
| JEL: | G30 L60 O31 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:200914&r=ino |
| By: | Ha, Joonkyung (Hanyang University); Jin Kim, Yong (Ajou University); Lee, Jong-Wha (Asian Development Bank) |
| Abstract: | This paper presents a theoretical model and empirical evidence to explain the observation that a country in which the level of technology approaches the technology frontier tends to rely more on technology creation than adoption, and to invest more in basic research than in development. The model shows that technology creation involves both basic and development research processes while technology adoption uses only the latter process. Thus, research and development (R&D) investment in our model involves three different processes: basic research in technology creation, development in technology creation, and development in technology adoption. The results suggest first, that the rate of growth is positively correlated with the level of basic research activities in the technology creation sector, if one country’s technology gap with the technology frontier is small enough. Second, an increase in the efficiency of the education system for highly skilled workers raises the level of basic research and the rate of growth. Third, verifying these theoretical results, empirical analyses using panel data of Japan; Republic of Korea; and Taipei,China show that the narrower the technological distance to the frontier, the higher the growth effect of basic R&D, indicating that the share of basic R&D matters for economic growth. Last, these also show that the quality of tertiary education has a significantly positive effect on the productivity of R&D. |
| Keywords: | Basic research; technology creation; technology adoption; economic growth |
| JEL: | O31 O47 |
| Date: | 2009–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0163&r=ino |
| By: | Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto); Luís Pinheiro (Faculdade de Economia, Universidade do Porto) |
| Abstract: | Existing studies on University-Firm (U-F) relations do not highlight, at least in an explicit way, the issue of open innovation. Such studies are still too centred on the advantages which the Firms are able to obtain from the relation with the Universities, failing taking into account the value that potentially goes to Universities from such links. The present paper intends to fill in this gap by empirically studying the process of emergency, evolution, and sustainability of the U-F relations in an open innovation context. Resorting to the case study methodology, we empirically demonstrate how the relations of a firm (Brisa) with the Universities (namely, ISEL) emerged, how they evolved and became sustained through time, giving special emphasis to the issue of mutual benefits derived from these relationships. Face-to-face interviews with the key-players at Brisa and ISEL, complemented with an extensive analysis of secondary sources, allowed us to conclude that the establishment of a connection between the two entities is a more complex and time consuming process (requiring a large relational and resources investment on both parts) than what the existing literature assumes. Besides the recognized gains for firms from adopting a more open-led perspective of innovation, namely based on U-F relations, our work (also) highlights the benefit deriving to the Universities from the link to companies. It is mainly due to the existence of mutual benefits that U-F relations are preserved in the long term; in other words, are sustainable. |
| Keywords: | Open Innovation; University-Firm relations; Emergency; Sustainability; Benefits |
| Date: | 2010–02 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:366&r=ino |
| By: | Hansen, Thorsten |
| Abstract: | This paper studies the impact of innovation on the organizational structure. The theoretical framework predicts that a larger parental pool of knowledge raises the probability of oshoring. This holds in a national as well as an international context. However, when the producer loses territorial protection, the changeover from non-integration to integration is delayed. Employing data on German rms investing in Eastern Europe nds empirical evidence for the theoretical predictions. The results are robust to dierent measurements and an instrumental variable regression. |
| Keywords: | offshoring; innovation; firm structure |
| JEL: | D23 D51 F23 L14 L21 L22 L23 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:11464&r=ino |
| By: | Eberhardt, Markus (St Catherine's College, Oxford, Department of Economics); Helmers, Christian (Wolfson College, Oxford); Strauss, Hubert (European Investment Bank, Economic and Financial Studies) |
| Abstract: | A large body of literature on the estimation of private returns to R&D adopts the Griliches knowledge production framework, ignoring the impact omitted spillover effects may have on consistent estimation. A separate body of literature is primarily interested in the presence and magnitude of spillovers but imposes a rigid ad hoc structure on the channels these can take, e.g. within-industry, within-country or determined by industry input-output matrices. In this paper we adopt a common factor approach which accounts for R&D spillovers without imposing any arbitrary structure on their nature and channels. At the same time we can account for other unobserved common processes which may aect countries or sectors dierentially, e.g. economic shocks or business cycles, as well as heterogeneous evolution of TFP over time. Panel data from 12 industrial sectors of 12 OECD and EU countries (1980-2005) is used to arrive at unbiased estimates of private returns to R&D. Our results indicate the presence of substantial cross-sectional dependence in the residuals of the Griliches knowledge production function, pointing to the presence of knowledge spillovers. Further, our estimations suggest that when ignoring the presence of spillovers, R&D produces positive returns. However, when cross-sectional dependence is accounted for, we do not nd any convincing evidence for positive private returns to R&D. These results suggest that spillovers may not be additively separable from own-R&D and need to be accounted for in the estimation even when the exclusive interest lies in obtaining estimates for private returns to R&D. |
| Keywords: | Productivity; R&D; Spillovers; Common Factor Model |
| JEL: | C23 D24 L16 |
| Date: | 2010–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibefr:2010_001&r=ino |
| By: | Joelle Noailly; Svetlana Batrakova; Ruslan Lukach |
| Abstract: | This document provides a case study of policies aiming to foster technological innovations for ‘green’ buildings in the Netherlands. The study aims to provide 1) a detailed overview of the policy framework over the last thirty years, and 2) a picture of the level of innovations related to energy efficiency in buildings in the Netherlands. The analysis shows an intensification of environmental policy in the Dutch building sector in the mid-1990s, followed by a slight decline after 2001. A striking feature of environmental policy in this sector is the large number of policy programs implemented successively for short periods of time. This might affect the stability and continuity of the policy framework and be damaging for innovation. Faced with high levels of uncertainty about future policies, firms may prefer to postpone risky investments in innovative activities. Finally, governmental R&D support for green innovations in general remains very low in the Netherlands. Descriptive data on patenting activities show that Dutch firms file nowadays about 150 patents annually in the field of energy efficiency in buildings. The Netherlands have a clear comparative advantage in the field of energy-saving lighting technologies, mainly due to intensive patenting activities by Philips. High-efficiency boilers also represent a substantial share of Dutch innovation activities in this domain over the last decades. In many other fields (such as insulation, heat-pumps and co-generation, solar boilers, etc), however, Germany, Austria and Scandinavian countries rank much higher than the Netherlands. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:docmnt:198&r=ino |
| By: | Mehdi Nekhili (Université de Reims Champagne Ardennes); Dhikra Chebbi Nekhili (Université de Bourgogne); Walid Cheffi (Groupe ESC Rouen) |
| Abstract: | The paper aims to explain the choice of organizational forms by multinational companies (MNCs) when decentralizing abroad their R&D activities. We identify five main organizational forms: wholly owned green-field subsidiary, wholly owned acquired subsidiary, joint venture, cross-licensing agreements and unilateral licensing agreements. On the basis of questionnaires addressed to the R&D managers of American and European MNCs, we highlight that the choice of an organizational form is related to the firm’s capacity of control, performance measurement and incentive systems, to resolve the agency conflicts in each form. Our findings show that the internalization choice is underprivileged because of behavioral control difficulties. The possibility of ensuring a strategic performance evaluation of R&D activities favors the cross-licensing agreement over the joint venture choice. Finally, the choice of unilateral licensing agreements is not supported because of feasibility issues concerning the financial evaluation of the performance of R&D activities. |
| Keywords: | R&D;foreign investments;multinational companies;control mechanisms;organizational Forms. |
| JEL: | F23 L22 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:dij:wpfarg:1090503&r=ino |
| By: | Andersson, Martin (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper develops a framework to appreciate the observed heterogeneity of firm size distributions and the entry and exit of products and firms associated with it. It is based on a model where new products are introduced by innovating firms in a quasi-temporal setting of monopolistic competition. The rate at which a firm innovates, according to a firm-specific Poisson process, is assumed to be influenced by the firm’s past experience and cumulated knowledge assets. The model assigns a fundamental role to entrepreneurship of existing and potential firms. The empirical analysis is based on detailed firm-level export data, which describes firm size in terms of products and markets, and firm dynamics in terms of changes in the supply pattern (varieties and markets) of existing firms in combination with entry/exit of firms. The empirical results are consistent with the model. First, the modeled innovation process imply a persistent distribution of heterogeneous firms. Second, the invariant size distribution of firms is associated with significant micro-dynamics, where firms continuously add and subtract varieties from their product mix, and new firms may enter while some exit. Third, an econometric analysis where firms’ introduction of new varieties is explained by firm attributes provides support for the assumption of a firm-specific and state-dependent stochastic innovation process. |
| Keywords: | innovation; firm heterogeneity; size distribution; entry; exit; dynamics; |
| JEL: | F12 L11 L26 O31 |
| Date: | 2010–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0211&r=ino |
| By: | João Bernardino; Tanya Araújo |
| Abstract: | Positional behavior is a source of externalities and sets limits to wellbeing. Remedies against this market failure are defended by some authors and rejected by others, while the core of the discussion rests on the benefits and costs of applying economic instruments. One of the issues discussed is the role that the competition for positional goods may have in generating technological innovation. This paper aims to contribute to the understanding of this process by analyzing an agent-based model. We observe a plausible structure of the dynamics behind the process of generation of technological innovation by positional consumption and obtain results on the influence of some key factors on the pace of innovation, particularly those of income inequality, the Hirsch conjecture of relative increase of positional consumption with affluence, and consumer network and social neighborhood sizes. |
| Keywords: | Positional consumption, innovation, agent-based models, Robert Frank |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp42010&r=ino |
| By: | Yijuan Chen |
| Abstract: | Focused on innovation frequency of durable complementary goods, this paper shows that interdependency of innovation decisions generically gives rise to coordination failure between the producers. More importantly, the coordination failure may arise in opposite directions: Not only may the producers delay introducing new products, they may also introduce new products faster than the social optimum. The possibility of hastened innovations is in contrast to the conclusion from the literature focused on the monopolistic setting. The results provide a caution for policy-makers, and on the other hand serve as benchmarks for future studies incorporating competition. |
| JEL: | O31 |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2010-515&r=ino |
| By: | Dhikra Chebbi Nekhili (Université de Bourgogne); Mehdi Nekhili (Université de Reims Champagne Ardennes); Frédéric Nlemvo (Groupe ESC Troyes) |
| Abstract: | (VF)L’objectif de cet article est d’expliquer le choix des modes de gouvernance des activités de R&D entreprises par les firmes multinationales à l’étranger. Principalement, trois modes de gouvernance sont identifiés : l’internalisation totale des activités de R&D au sein d’une filiale (créée ou acquise) à l’étranger, les alliances en R&D (avec ou sans prise de participation) et l’externalisation totale de ces activités. Dans la perspective de la théorie fondée sur les ressources, le choix d’un mode par rapport à un autre s’explique par le souhait des firmes multinationales de construire un avantage concurrentiel en comblant l’écart entre les ressources réellement détenues et les ressources qu’elles souhaitent acquérir. A travers une étude quantitative de 67 firmes multinationales européennes et nord-américaines, nous montrons que les licences unilatérales sont utilisées en cas de non-disponibilité des ressources en interne et que les alliances sans prise de participation, par opposition aux alliances avec prise de participation, sont choisies lorsque les connaissances à transférer sont codifiables.(VA)The objective of this paper is to explain the choice of governance modes of foreign R&D activities by multinational firms. Mainly, three governance modes are identified: the complete internalization of R&D activities in a wholly owned subsidiary (created or acquired), the R&D alliances (equity alliances or non-equity alliances) and the complete externalization. According to the Resource Based View (RBV), the choice of a mode over another is due to the desire of multinational firms to build a competitive advantage in bridging the gap between resources actually held and resources that they wish to acquire. Through a study of 67 European and North-American multinational firms, our article shows that the unilateral licensing agreements are used in the case of the lack of internal resources. However, non-equity alliances, conversely to equity alliances, are chosen when the knowledge to be transferred is codified. |
| Keywords: | R&D;externalisation;théorie fondée sur les ressources;externalization;ressource based view. |
| JEL: | F23 L22 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:dij:wpfarg:1090502&r=ino |
| By: | Francesco Bogliacino (Universidad EAFIT); Mario Pianta (University of Urbino) |
| Abstract: | The diversity of technological activities that contribute to growth in labour productivity is examined in this paper for manufacturing and services industries in eight major EU countries. We test the relevance of the two major strategies of technological competitiveness (based on innovation in products and markets) or cost competitiveness (relying on innovation in processes and machinery) and their impact on economic performances. We propose models for the determinants of changes in labour productivity and we carry out empirical tests both for both the whole economy and for the four Revised Pavitt classes that group manufacturing and services industries with distinct patterns of innovation. Tests are carried out by pooling industries, countries and three time periods, using innovation survey data from CIS 2, 3 and 4, linked to economic variables.The results confirm the strong diversity of the mechanisms leading to productivity growth in Europe, with different roles of sector-specific technological activities developed in the pursuit of the strategies of technological competitiveness and cost competitiveness. In all empirical tests, for all industries as well as for each revised Pavitt class, we find a presence of both strategies, with a relevance and impact that is specific for each subgroup of industries. Economic performances in European industries appear as the results of different innovation models, with strong specificities of the four Revised Pavitt classes (i.e. "Science Based industries", "Scale and Information Intensive industries", "Specialised Suppliers industries" and "Suppliers Dominated industries").A number of policy lessons emerge from our findings. Policies aiming at greater labor productivity growth may have to take into account the different mechanisms resulting from technological and cost competitiveness strategies, and the different relevance that they have in industry groups. Efforts to introduce new processes have emerged as a strong aspect of innovative activities in all industries, but their impact on productivity growth is likely to be inferior to that of a search for new products and markets, typical of "Science Based" and "Specialised Suppliers" industries alone. Policies may be more effective when they focus on the latter type of efforts. As the dynamics of demand plays a strong role in the potential for productivity growth, innovation policies should also develop a stronger integration with industrial and macroeconomic policies. |
| Keywords: | Innovation, Labour Productivity, Industry Taxonomies, Technological and Cost Competitiveness |
| JEL: | O31 O33 O41 |
| Date: | 2009–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:200913&r=ino |
| By: | Pennings, H.P.G.; Sereno, L. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | This study sets up a compound option approach for evaluating pharmaceutical R&D investment projects in the presence of technical and economic uncertainties. Technical uncertainty is modeled as a Poisson jump that allows for failure and thus abandonment of the drug development. Economic uncertainty is modeled as a standard di¤usion process which incorporates both up-and downward shocks. Practical application of this method is emphasized through a case analysis. We show that both uncertainties have a positive impact on the R&D option value. Moreover, from the sensitivity analysis, we nd that the sensitivity of the option with respect to economic uncertainty and market introduction cost decreases when technical uncertainty increases. |
| Keywords: | G13;G24;G30;compound option;jump-discussion process;R&D;pharmaceutical industry |
| Date: | 2010–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765018211&r=ino |
| By: | Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | Considerable advances, even breakthroughs, have been made during the last decades in our understanding of the relationship between knowledge and growth on one hand, and entrepreneurship and growth on the other. Similarly, more profound insights have also been gained as to how entrepreneurship, innovation and knowledge are interrelated. Yet, a comprehensive understanding is still lacking concerning the interface of all of those variables: knowledge, innovation, entrepreneurship and growth. The link between the micro-economic origin of growth and the macro-economic outcome is still too rudimentary modeled to grasp the full width of these complex and intersecting forces. The main objective of this paper is hence to shed light on recent advances in our understanding of the forces that underpin the creation of knowledge, its diffusion and commercialization through innovation, and the role of the entrepreneur in the growth process. The policy implications of recent research findings conclude this survey. Particularly important policy implications refer to the design of regulation influencing knowledge production, ownership, entry barriers, labor mobility and (inefficient) financial markets. They all have implication for the efficient diffusion of knowledge through entry. Knowledge creation has to be matched by incentives that induce mechanisms to convert knowledge into societal and useful needs. |
| Keywords: | Entrepreneurs; knowledge; innovation; growth; policy |
| JEL: | O31 |
| Date: | 2010–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0224&r=ino |
| By: | Dhikra Chebbi Nekhili (Université de Bourgogne; Université de Reims Champagne Ardennes) |
| Abstract: | (VF)Parmi les formes d’internationalisation des activités de R&D, les multinationales peuvent opter pour la localisation de ces activités au sein de leurs filiales à part entière. Si ce choix peut procurer de nombreux avantages, liés notamment à l’internalisation des fonctions stratégiques, il suscite des interrogations d’ordre organisationnel. La décentralisation de la R&D peut accentuer les divergences entre les intérêts de la maison-mère et les responsables nommés à la tête de ces filiales. Des mécanismes particuliers de contrôle et d’incitation devraient être mis en place pour réussir cette forme d’investissement.(VA)Among the forms of internationalization of R&D activities, multinationals can opt to locate these activities within their wholly owned subsidiaries. Although such a choice can provide many advantages, notably in relation to the internalization of strategic functions, it raises questions of an organizational nature. Decentralization of R&D can emphasize the differences between the parent company’s interests and the managers appointed to run the subsidiaries. Specific control and incentive mechanisms should be put into place for this form of investment to be successful. |
| Keywords: | R&D;internalisation;filiales;multinationales;internalization;subsidiaries;multinationals. |
| JEL: | F23 L22 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:dij:wpfarg:1090504&r=ino |
| By: | Filippo Belloc |
| Abstract: | Proponents of minority shareholder protection state that national legal institutions protecting small investors boost stock markets and, in turn, long-term countries’ performance. In this paper, we empirically challenge this argument. We perform three-stage least-square estimation on a sample of 48 countries over 1993-2006 and find that countries with stronger shareholder protection tend to have larger market capitalization but also lower innovation activity. We cope with stock market’s endogeneity and industry heterogeneity, and circumvent omitted variables bias, so that this finding is unlikely to be driven by misspecification problems. We interpret our estimation results arguing that stronger shareholder protection may depress, rather than encourage, the most valuable corporate productions, because it enables small and diversified shareholders to play opportunistic actions against undiversified stockholders, after specific investments are undertaken by the company; innovation activity, largely based on specific investing, is particularly exposed to this problem. |
| Keywords: | shareholder protection, innovation, specific investments, inter-shareholder opportunism. |
| JEL: | D23 K22 O31 P12 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:583&r=ino |
| By: | Dhikra Chebbi Nekhili (Université de Bourgogne; Université de Reims Champagne Ardennes Groupe ESC-Troyes) |
| Abstract: | Notre objectif est d’expliquer le choix des firmes multinationales entre les alliances avec prise de participation et les alliances sans prise de participation pour investir en R&D à l’étranger. Les déterminants du choix peuvent être contractuels ou cognitifs. Nos résultats montrent que les alliances sans prise de participation sont choisies en cas d’une spécificité des actifs et de fréquence moyennes ou faibles des transactions et au cas où les firmes parentes détiennent des capacités en R&D similaires. Nos résultats montrent aussi que les firmes multinationales n’optent pas nécessairement pour les alliances à fort degré d’interdépendance organisationnelle dans un objectif d’exploration des nouvelles ressources. Elles n’optent pas, non plus, pour les alliances sans prise de participation en raison de la complémentarité des ressources détenues avec celles des partenaires. |
| Keywords: | R&D;alliances;théorie des coûts de transaction;théories cognitives;alliances;transaction costs theory;Knowledge based view. |
| JEL: | F23 L22 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:dij:wpfarg:1090505&r=ino |
| By: | Christina Guenther |
| Abstract: | The question of whether and when to enter a newly emerging product market has been the focus of practitioners as well as researchers. This paper contributes to the literature by investigating the order of entry as well as pre-entry experiences with a population-based approach for the radically new product market of multifunctional machine tools for the case of Germany between 1949 and 2002. Estimation results show, that later entrants outperform pioneers. Moreover, it turns out that industry and technology specific capabilities do not increase survival chances. But when decomposing the known positive age effect on survival, we see that particularly dynamic capabilities, i.e. the competence to integrate additional business activities into the current product portfolio, significantly lower the risk of failure in the new product market. |
| Keywords: | Length 20 pages |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2009-22&r=ino |
| By: | Ivan Savin; Peter Winker |
| Abstract: | Innovations, be they radical new products or technology improvements are widely recognized as a key factor of economic growth. To identify the factors triggering innovative activities is a main concern for economic theory and empirical analysis. As the number of hypotheses is large, the process of model selection becomes a crucial part of the empirical implementation. The problem is complicated by the fact that unobserved heterogeneity and possible endogeneity of regressors have to be taken into account. A new efficient solution to this problem is suggested, applying optimization heuristics, which exploits the inherent discrete nature of the problem. The model selection is based on information criteria and the Sargan test of overidentifying restrictions. The method is applied to Russian regional data within the framework of a log-linear dynamic panel data model. To illustrate the performance of the method, we also report the results of Monte-Carlo simulations. |
| Keywords: | Innovation, dynamic panel data, GMM, model selection, threshold accepting, genetic algorithms. |
| Date: | 2010–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:com:wpaper:027&r=ino |