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on Innovation |
| By: | Cozzi, Guido; Galli, Silvia |
| Abstract: | The incentives to conduct basic or applied research play a central role for economic growth, and this question has not been explored in much detail so far. How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? In the US, what does the common law system imply on the macroeconomic responses to institutional change? This paper analyzes the macroeconomic effects of patent protection by incorporating a two-stage cumulative innovation structure into a quality-ladder growth model with skill acquisition. We consider three issues (a) the over-protection vs. the under-protection of intellectual property rights; (b) the evolution of jurisprudence shaping the bargaining power of the upstream innovators; and (c) the implications of strengthening patent protection on wage inequality and growth. We show analytically and numerically how the jurisprudential changes in intellectual property rights witnessed in the US after 1980 can be related to the well-known changes in wage inequality and in education attainments. Basic research patents may have grown disproportionately due increasing jurisdictional protection, eventually compromising applied innovation, education, and growth. By simulations, we show that the dynamic general equilibrium interations may mislead the econometric assessment of the temporary vs persistent effects IPR policy. |
| Keywords: | Basic and Applied R&D; Two-Stage Sequential Innovation; Skill Premium; Inequality and Education; Common Law. |
| JEL: | K40 O34 O31 |
| Date: | 2011–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31902&r=ino |
| By: | Egger, Peter; Keuschnigg, Christian |
| Abstract: | This paper proposes a model where heterogeneous firms choose whether to undertake R&D or not. Innovative firms are more productive, have larger investment opportunities and lower own funds for necessary tangible continuation investments than non-innovating firms. As a result, they are financially constrained while standard firms are not. The efficiency of the financial sector and a country's institutional quality relating to corporate finance determine the share of R&D intensive firms and their comparative advantage in producing innovative goods. We illustrate how protection, R&D subsidies, and financial sector development improve access to external finance in distinct ways, support the expansion of innovative industries, and boost national welfare. International welfare spillovers depend on the interaction between terms of trade effects and financial frictions and may be positive or negative, depending on foreign countries' trade position. |
| Keywords: | Financial Development; Innovation; Protection; R&D Subsidy |
| JEL: | F11 G32 L26 O38 |
| Date: | 2011–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8467&r=ino |
| By: | Federico Etro (Department of Economics, University Of Venice Cà Foscari); Dirk Czarnitzki (K.U. Leuven); Kornelius Kraft (Technical University of Dortmund) |
| Abstract: | Simple models of competition for the market with endogenous entry show that, contrary to the Arrow view, an endogenous entry threat in a market induces the average firm to invest less in R&D and the incumbent leader to invest more. We test these predictions based on a unique dataset and survey for the German manufacturing sector (the Mannheim Innovation Panel). In line with our predictions, endogenous entry threats as perceived by the firms reduce R&D intensity for the average firm, but they increase it for an incumbent leader. These results hold after a number of robustness tests with instrumental variable regressions. |
| Keywords: | Endogenous market structures, innovation, leadership |
| JEL: | O31 O32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2011_04&r=ino |
| By: | Bronwyn H. Hall |
| Abstract: | What do we know about the relationship between innovation and productivity among firms? The workhorse model of this relationship is presented and the implications of analysis using this model and the usually available data on product and process innovation are derived. The recent empirical evidence on the relationship between innovation and productivity in firms is then surveyed. The conclusion is that there are substantial positive impacts of product innovation on revenue productivity, but that the impact of process innovation is more ambiguous, suggesting some market power on the part of the firms being analyzed. |
| JEL: | O30 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17178&r=ino |
| By: | Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | Since the contribution of Cohen et al. (2002), it is well established that linkages between firms and public research organisations (PROs) serve purposes of both suggesting new R&D projects and completing existing projects. However, the extant literature has little to say about whether these two types of outcomes are linked or independent effects. This paper examines how a firm’s ability to absorb useful impulses to new R&D projects from interaction with public research organisations depends on how and how well the firm is able to utilise such linkages in project completion. An analysis of Swedish firms suggests that interaction provides impulses to further R&D primarily when it is successfully linked to achieving objectives in ongoing R&D projects of the firm. However, linkages which are focused on contributions to short-term projects are less likely to generate useful impulses. Moreover, not only are linkages which support both long-term and short-term objectives better than linkages which solely serve short-term objectives; firm-PRO linkages in which short-term objectives play a less accented role are most likely to facilitate valuable impulses to further R&D and innovation. |
| Keywords: | university-industry; externalities from public research; impulses to innovation |
| JEL: | O32 O33 O38 |
| Date: | 2011–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0252&r=ino |
| By: | Chen, Yongmin |
| Abstract: | A vertically integrated firm, having acquired the intellectual property (IP) through innovation to become an input monopolist, can extract surplus by supplying efficient downstream competitors. That the monopolist would refuse to do so is puzzling and has led to numerous debates in antitrust. In this paper, I clarify the economic logic of refusal to deal, and identify conditions under which prohibiting such conduct would raise or lower consumer and social welfare. I further show how IP protection (as determined by IP laws) and restrictions on IP holders' conduct (as determined by antitrust laws) may interact to affect innovation incentive and post-innovation market performance. |
| Keywords: | Refusal to Deal; Intellectual Property Rights; IP protection; Antitrust; innovation |
| JEL: | O3 L1 L4 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31974&r=ino |
| By: | Copenhagen Economics |
| Abstract: | The study deals with the links between energy taxation and innovation and presents also new empirical evidence on the impact of energy taxes on patenting activities related to energy technologies. The study suggests that while taxation is a very effective driver of innovation, it can be usefully complemented with other public policy tools, such as public research grants and other technology policies. |
| Keywords: | European Union, taxation, innovation, environment |
| JEL: | H24 H25 L29 |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:tax:taxstu:0036&r=ino |
| By: | Corinne Autant-Bernard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure de Lyon) |
| Abstract: | Preliminary introduced by Anselin, Varga and Acs (1997) spatial econometric tools are widely used in economic geography of innovation. Taking into account spatial autocorrelation and spatial heterogeneity of regional innovation, this paper analyzes how these techniques have improved the ability to quantify knowledge spillovers, to measure their spatial extent, and to explore the underlying mechanisms and especially the interactions between geographical and social distance. It is also argued that the recent developments of spatio-dynamic models opens new research lines to investigate the temporal dimension of both spatial knowledge flows and innovation networks, two issues that should rank high in the research agenda of the geography of innovation. |
| Keywords: | Geography of innovation; spatial correlation; spatio-dynamic panels; innovation |
| Date: | 2011–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00605056&r=ino |
| By: | Petrakis, Emmanuel; Poyago-Theotoky, Joanna |
| Abstract: | In this paper we study a neglected aspect ofteclmology policy, namely the adverse impact it might have on the envirol1Il1ent through increased production when R&D expenditure leads to cost reduction. Although teclmology policy measures that encourage finns to reduce their production costs would usually reduce energy inputs and therefore generate less pollution per unit of output production, we explore here the case where with reorganisation of production output gene rally increases. So even if per unit of production pollution is less, total pollution generated by the increased production induced by the innovative efforts of films increases. In this context it is therefore necessary to address the issue of tying-in teclmology and environmental policy, which is the issue we raise in this paper. We show that, irrespective of whether teclmology policy takes the fonn of R&D subsidies or R&D cooperation, R&D would gene rally lead to increased pollution and thus have a negative impact on the environment. Policies that might be optimal in the absence of concem for the enviroJUllent ceas e to be so. We claim that not only is a comparison between policy instruments more delicate but the optimal R&D subsidy might be negative. FinalIy, we propose and evaluate a speeific poliey in the form of a targeted subsidy tied-in to abatement activities and show that it is welfare improving. |
| Keywords: | Technology policy; Process innovation; Pollution; R&D cooperation; R&D subsides; |
| URL: | http://d.repec.org/n?u=RePEc:ner:carlos:info:hdl:10016/6072&r=ino |
| By: | M. Comune; A. Naghavi; G. Prarolo |
| Abstract: | With the rise of the knowledge economy, delivering sound innovation policies requires a thorough understanding of how knowledge is produced and diffused. This paper takes a step to analyze a new form of globalization, the so-called system of Global Innovation Networks (GINs), to shed light on how the protection of intellectual property rights (IPRs) influences their creation and development. We focus on the role of IPR protection in fostering international innovative activities in emerging economies (South), such as China and India, and more generally, how IPRs affect the development of GINs between newly industrialized countries and OECD countries. Using both survey-based firm-level and country-level global data, we find IPRs to be an important determinant of participation in GINS from a Southern perspective. We find IPR protection at home and its harmonization across county pairs foster South-North formation of GINs. We also find that a stringent regime in the destination country discourages foreign international innovative activities that originate in NICs. Both levels of our analysis confirm the ICT industry, particularly the hardware segment, to rely on IPRs when engaging in the international outsourcing and offshoring of innovation or in patenting activities abroad. |
| JEL: | D23 F53 O34 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp764&r=ino |
| By: | Timo Seppälä; Olli Martikainen |
| Abstract: | In this paper, we examine new Internet ecosystem strategies through compre-hensive OECD PATSTAT patent data analyses focusing on mobile operating system software firms. We also describe current patent disputes between mobile hardware firms and mobile operating system software firms in the US and their relevant intellectual property in order to highlight the changes and decisions made within current mobile value chains, which may then enable the further examination of strategic decisions of individual firms. Based on OECD PATSTAT and our descriptive analyses, we find that the latest strategic decisions made by the mobile hardware and operating system firms target industry-level competition on intellectual property and control over new industry convergence, whereas the value of hardware-based intellectual property is measured and evaluated against software and heuristics related intellectual property. This industry convergence includes the evolution of new ecosystems based on Apple, Google and Microsoft technologies that will change the role of several firms in the mobile value chain. |
| Keywords: | Apple, Microsoft, Google, Nokia, ICT, ecosystems, intellectual property, patenting |
| JEL: | L86 L8 L25 |
| Date: | 2011–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1254&r=ino |
| By: | Gianni De Fraja (Faculty of Economics, University of Rome "Tor Vergata") |
| Abstract: | This paper studies government funding for scientific research. Funds must be distributed among different research institutions and allocated between basic and applied research. Informational constraints prevent less productive institutions to be given any government funding. In order to internalise the beneficial effects of research, the government requires the most productive institutions to carry out more applied research than they would like. Funding for basic research is used by the government to induce more productive institutions to carry out more applied research then they would like. |
| Keywords: | Basic and applied research, R&D, Scientific advances |
| JEL: | O38 H42 D82 |
| Date: | 2011–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:rtv:ceisrp:199&r=ino |
| By: | Nicolas van Zeebroeck; Bruno Van Pottelsberghe |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/60731&r=ino |
| By: | Lee G. Branstetter; Chirantan Chatterjee; Matthew Higgins |
| Abstract: | With increasing frequency, generic drug manufacturers in the United States are able to challenge the monopoly status of patent-protected drugs even before their patents expire. The legal foundation for these challenges is found in Paragraph IV of the Hatch-Waxman Act. If successful, these Paragraph IV challenges generally lead to large market share losses for incumbents and sharp declines in average market prices. This paper estimates, for the first time, the welfare effects of accelerated generic entry via these challenges. Using aggregate brand level sales data between 1997 and 2008 for hypertension drugs in the U.S. we estimate demand using a nested logit model in order to back out cumulated consumer surplus, which we find to be approximately $270 billion. We then undertake a counterfactual analysis, removing the stream of Paragraph IV facilitated generic products, finding a corresponding cumulated consumer surplus of $177 billion. This implies that gains flowing to consumers as a result of this regulatory mechanism amount to around $92 billion or about $133 per consumer in this market. These gains come at the expense to producers who lose, approximately, $14 billion. This suggests that net short-term social gains stands at around $78 billion. We also demonstrate significant cross-molecular substitution within the market and discuss the possible appropriation of consumer rents by the insurance industry. Policy and innovation implications are also discussed. |
| JEL: | I11 I38 O3 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17188&r=ino |
| By: | d'Agostino, Giorgio; Scarlato, Margherita |
| Abstract: | ABSTRACT. This paper carries out an explanatory investigation into the relationship between socio-institutional conditions, quality of life indicators and economic growth in the Italian regions. Previous studies stress the importance of institutional quality, social capital and social conditions in determining disparities between richer and poorer regions. Building on this literature, we consider a three-sector model of semi-endogenous growth with negative externalities depending on structural and institutional factors that affect the innovative capacity of regional systems (the “social externalities hypothesis”). Simulations based on the scaled stationary system confirm that endogenous socio-economic conditions are crucial for the successful translation of innovation into economic growth. It is suggested that generating a development strategy designed to improve social conditions and well-being in the poorer regions may yield dividends in terms of the effectiveness of public policy and economic development. |
| Keywords: | Development; growth; regional disparities; well-being |
| JEL: | R58 O10 O30 C23 C61 R11 O40 |
| Date: | 2011–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31939&r=ino |
| By: | Nicolas van Zeebroeck; Bruno Van Pottelsberghe |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/60730&r=ino |
| By: | ITO Keiko |
| Abstract: | This paper examines whether first-time exporters achieve productivity improvements through learning-by-exporting effects. The results suggest that the start of exporting to North America/Europe has a strong positive effect on sales and employment growth, R&D activity, and productivity growth. On the other hand, the start of exporting to Asia does not have any strong productivity-enhancing effects, although it does tend to boost the growth rates of sales and employment and to be associated with an increase in R&D expenditure. However, even considering these variables, the positive impact from the start of exporting to North America/Europe is much larger. Further analysis shows that export starters to North America/Europe are larger, more productive, more R&D intensive, and more capital intensive than export starters to Asia even before they start exporting, suggesting that the former are potentially better performers than the latter. Moreover, export starters to North America/Europe become more innovative than export starters to Asia after the start of exporting. The results obtained here imply that potentially innovative non-exporters should be supported through an export-promotion policy. |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:11066&r=ino |
| By: | Nicolas van Zeebroeck |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/60729&r=ino |
| By: | Ernest Miguélez (Faculty of Economics, University of Barcelona); Ismael Gómez-Miguélez (Technical University of Catalonia) |
| Abstract: | An increasing number of studies in recent years have sought to identify individual inventors from patent data. A variety of heuristics have been proposed for using the names and other information disclosed in patent documents to establish “who is who” in patents. This paper contributes to this literature by describing a methodology for identifying inventors using patents applied to the European Patent Office (EPO hereafter). As in much of this literature, we basically follow a three-step procedure: (1) the parsing stage, aimed at reducing the noise in the inventor’s name and other fields of the patent; (2) the matching stage, where name matching algorithms are used to group similar names; and (3) the filtering stage, where additional information and various scoring schemes are used to filter out these similarly-named inventors. The paper presents the results obtained by using the algorithms with the set of European inventors applying to the EPO over a long period of time. |
| Keywords: | “Names game”, patent data, unique inventors, name matching algorithms. JEL classification:C8, J61, O31, O33, R0. |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201105&r=ino |
| By: | Capellen, van der J.; Koppius, O.R.; Dittrich, K. |
| Abstract: | Considerable attention has been paid to the network determinants of knowledge sharing. However, most, if not all, of the studies investigating the determinants of knowledge sharing are either focused on knowledge-intensive organizations such as consultancy firms or R&D organizations, or knowledge workers in regular organizations, while lesser knowledge intensive organizations or non-knowledge workers are rarely explored. This is a gap in the literature on social networks and knowledge sharing. In this paper, the relations between network determinants and actor determinants of knowledge sharing are empirically tested by means of a network survey in a less knowledge intensive organization, specifically employees of a Dutch department store chain. The results show that individual-level variables such as departmental commitment and enjoyment in helping others are the major determinants of individuals’ knowledge sharing behavior, but none of the social network variables play a role. The results thus present an important boundary condition to social networks effects on knowledge sharing: social networks only seem to play a role in knowledge sharing for knowledge workers, not for blue-collar workers. |
| Keywords: | knowledge sharing;social networks;non-knowledge intensive organizations |
| Date: | 2011–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765023489&r=ino |
| By: | Andreas Reinstaller (WIFO) |
| Abstract: | This paper gives a selective overview on contributions studying issues of complexity, near-decomposability and modularity in relation to economic behaviour and the theory of the firm. In the first part the paper reviews contributions studying the relationship between human problem solving in the face of complex problems and the emergence of specific technological and organisational designs. The second part of the paper reviews recent research that has studied the impact of modular designs in the organisation of production at the firm level on industrial organisation and dynamics. The paper draws some conclusions on future avenues of research. |
| Keywords: | Innovation decision, catching up, distance to frontier |
| Date: | 2011–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2011:i:398&r=ino |
| By: | Mueller, Dennis C. (Department of Economics Fakultät für Wirtschaftswissenschaften University of Vienna) |
| Abstract: | In the year 2000 at a meeting in Lisbon, leaders of the European Union (EU) articulated a set of goals for the Union, which have come to be called the Lisbon Strategy or Lisbon Agenda. The agenda had three main goals: to promote growth through innovation, to create a learning economy, and to bring about social and environmental renewal. Exactly what the last goal implies is not clear, at least to me, but the intent and substance behind the first two certainly is. Research spending was to rise across the EU, university enrollments would rise with them, and a more friendly environment for innovation would be created as markets continued to be liberalized and integrated. The EU leaders meeting in Lisbon set the year 2010 as their goal for fulfilling this agenda. The year 2010 has come and gone. Today, growth rates in Europe are even lower than they were in 2000. Research and university budgets have been cut – sometimes drastically – across the EU. These developments are, of course, largely a response to the recent financial crisis and its impact on state finances. But the crisis would not have been nearly as severe as it has been, if EU countries had been well on their way to fulfilling the goals of the Lisbon Agenda when the crisis hit. The EU’s failure to come anywhere near meeting the goals set out in the year 2000 stems, I shall argue, to underlying structural factors and ideological perspectives, which constitute major obstacles to the kind of knowledge-based, innovative society that the EU leaders dreamed of in Lisbon more than a decade ago. This paper attempts to identify what these obstacles are. |
| Keywords: | Entrepreneurship; Economic Growth; Human Capital; European Union |
| JEL: | J24 L26 L53 |
| Date: | 2011–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0170&r=ino |