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on Innovation |
| By: | Bronwyn H. Hall; Francesca Lotti; Jacques Mairesse |
| Abstract: | Both Research and Development (R&D) and Information and Communication Technology (ICT) investment have been identified as sources of relative innovation underperformance in Europe vis-à-vis the United States. In this paper we investigate R&D and ICT investment at the firm level in an effort to assess their relative importance and to what extent they are complements or substitutes. We use data on a large unbalanced panel data sample of Italian manufacturing firms constructed from four consecutive waves of a survey of manufacturing firms, together with a version of the CDM model (Crepon et al., 1998) that has been modified to include ICT investment and R&D as the two main inputs into innovation and productivity. We find that R&D and ICT are both strongly associated with innovation and productivity, with R&D being more important for innovation, and ICT investment being more important for productivity. For the median firm, rates of return to both investments are so high that they suggest considerably underinvestment in both these activities. |
| JEL: | L60 O31 O33 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18053&r=ino |
| By: | Nepelski, Daniel; De Prato, Giuditta |
| Abstract: | We apply network analysis to study the ICT R&D locations at the city level. We use a dataset on the location and R&D activity of over 3000 R&D centres belonging to 175 MNEs, located in over 1300 cities around the world. The results show that most of the cities have few R&D connections and are grouped into "cliques", linked through network hubs. Hence, not only is the R&D activity concentrated in space, but also the nexus of connections between locations is limited. Asian and Japanese cities are favoured as a source of R&D services, as compared to European or US cities. |
| Keywords: | Networks; innovation and R&D; globalization; R&D complexity; network |
| JEL: | M2 O32 M10 |
| Date: | 2012–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38796&r=ino |
| By: | Maureen McKelvey (University of Gothenburg, Institute for Innovation and Entrepreneurship, School of Business, Economics and Law); Bastian Rake (Friedrich Schiller University Jena, Graduate College "The Economics of Innovative Change") |
| Abstract: | This paper explores how and why collaboration with different types of partners and the position within a research network can affect firms' innovative performance in terms of product innovations. A detailed empirical analysis is carried out in the biotechnology and pharmaceutical industry. This industry is characterized by a rapidly developing, complex, and dispersed knowledge base, where one would expect positive benefits from collaboration and the position within a network for innovative output. The paper uses a unique dataset in pharmaceutical cancer research based on scientific co-publications and new drug approvals. We apply social network analysis and count data regressions. We observe that collaboration with a diverse set of partners from academia and the network position in terms of eigenvector centrality is positively related to product innovation. However, we do not find a general positive association between collaboration, particularly with biotechnology companies, and product innovation or between central network positions and product innovation. Therefore, these results require a re-assessment of the role of scientific collaboration and biotechnology companies in the development of the pharmaceutical industry. |
| Keywords: | Research Networks, Research Collaboration, Innovative Performance, Pharmaceuticals |
| JEL: | L25 O31 |
| Date: | 2012–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2012-021&r=ino |
| By: | Matteo Bugamelli (Bank of Italy); Luigi Cannari (Bank of Italy); Francesca Lotti (Bank of Italy); Silvia Magri (Bank of Italy) |
| Abstract: | The lag in innovation in Italy vis-Ã -vis the other main industrial countries is one of the effects of the fragmentation of the production system into many small firms that have trouble bearing the high cost of R&D and taking the related risks. Such other causes as shortages in human capital for management and R&D and excessive labor flexibility, undermining the incentive to invest in training, also play a role. Lack of financial sources is a further hurdle; equity, more suitable than debt for financing innovation, is less common than in other countries. Public incentives for firms have had modest results. To enhance the capacity for innovation some actions should be taken to help firms grow, adopt a more managerial approach, and increase their equity. It is important to support the venture capital market, which is less developed than in other countries. The design and management of public funding for innovation need improvement. |
| Keywords: | R&D, innovation, policy measures, Italy |
| JEL: | O32 O38 L11 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_121_12&r=ino |
| By: | Ben Ferrett (School of Business and Economics, Loughborough University; GEP, University of Nottingham); Joanna Poyago-Theotoky (School of Economics, La Trobe University; CRIEFF, University of St Andrews; Rimini Centre for Economic Analysis (RCEA); SIERC, Massey University) |
| Abstract: | We study the decision of two firms within an oligopoly concerning whether to enter into a horizontal agreement to exploit complementarities between their R&D activities and, if so, whether to merge or form a research joint venture (RJV). In contrast to horizontal merger, there is a probability that an RJV contract will fail to enforce R&D sharing. We find that a horizontal agreement always arises. The insiders' merger/RJV choice involves a trade-off: While merger offers certainty that R&D complementarities will be exploited, it leads to a profit-reducing reaction by outsiders on the product market, where competition is Cournot. Greater brand similarity and contract enforceability ("quality") both favour RJV, while greater R&D complementarity favours merger. Interestingly, the insiders may choose to merge even when RJV contracts are always enforceable, and they may opt to form an RJV even when the likelihood of enforceability is negligible. |
| Keywords: | horizontal merger, research joint venture (RJV), contract enforceability, process R&D, R&D complementarity |
| JEL: | O30 L13 D43 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:13_12&r=ino |
| By: | Daniela Baglieri; David Carf\`i; Giovanni Battista Dagnino |
| Abstract: | In this paper we show how the study of asymmetric R&D alliances, that are those between young and small firms and large and MNEs firms for knowledge exploration and/or exploitation, requires the adoption of a coopetitive framework which consider both collaboration and competition. We draw upon the literature on asymmetric R&D collaboration and coopetition to propose a mathematical model for the coopetitive games which is particularly suitable for exploring asymmetric R&D alliances. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1205.2878&r=ino |
| By: | Horácio C. Faustino; Joana C. Lima; Pedro Verga Matos |
| Abstract: | This study examines the evolution of Portuguese exports to Spain and its determinants in the period 2004-2008, based on a sample of the 97 largest exporters to Spain. The econometric study, using panel data and a static and dynamic analysis, considers as theoretically relevant explanatory variables productivity, equity capital, remuneration and innovation measured by the expenditure on research and development (R&D). The static results of the estimated models confirm the positive influence of productivity and equity capital on the variation of exports, and the negative effect of the labour costs. The variable R&D is statistically significant, with a positive effect on Portuguese exports in the dynamic model. The dynamic estimations also suggest that the exports in the previous period have a positive effect on contemporaneous exports. |
| Keywords: | Exports. Innovation. Panel data. Productivity. Portugal. Spain JEL Classification: C33. F14. L25 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:ise:isegwp:wp132012&r=ino |
| By: | Hülsbeck, Marcel; Kitzinger, Elena N. |
| Abstract: | Similar to the creation and distribution of new knowledge through industrial R&D and university research, entrepreneurial activity tends to vary across regions. Therefore the regionalized production of new knowledge is a prerequisite of entrepreneurial innovation. Based on endogenous growth theory, in particular the so-called Griliches-Jaffe-Model of regional knowledge production, we investigate industrial and university characteristics as determinants of technologically oriented entrepreneurship. Using hand-collected data from multiple sources, our results clearly show that high technology entrepreneurship is highly dependent on regional knowledge production by industry and university, while medium technology entrepreneurship does largely not dependent on these factors. -- |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:auguow:0311&r=ino |
| By: | De Prato, Giuditta; Nepelski, Daniel |
| Abstract: | Global innovation networks are emerging as a result of the international division of innovation processes through, among others, international technological collaborations. At the aggregate level, the creation of technological collaboration between countries can be considered as mutually beneficial (or detrimental) and their random distribution is unlikely. Consequently, the dynamics and evolution of the technological collaborations can be expected to fulfil the criteria of a complex network. To study the structure and evolution of the global technological collaboration network, we use patent-based data of international co-inventions and apply the network analysis. In addition, extending the gravity model of international technological collaboration by measures controlling for countries position in the network, we show that that a country's position in the network has very strong impact on the intensity of collaboration with other members of the network. |
| Keywords: | globalisation of technology; technological collaboration; co-invention; network analysis; patent |
| JEL: | O30 F23 O57 D8 O14 |
| Date: | 2012–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38818&r=ino |
| By: | Masino, Serena |
| Abstract: | This paper investigates the channels through which macroeconomic volatility prevents or hinders innovative investment undertakings financed by the domestic business sector. The analysis is based on a sample of 48 countries, representing all levels of development, and uses various measures of macroeconomic instability, such as political, real and monetary volatility. The results suggest a negative impact of macroeconomic instability on the share of R&D financed by the domestic business sector. These outcomes highlight the desirability of counter-cyclical policy interventions aiming to prevent the avoidance or abandonment of private R&D undertakings in unstable macroeconomic environments. |
| Keywords: | Macroeconomic Volatility; Political Instability; R&D Investment; Innovation |
| JEL: | O11 O33 O31 C33 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38766&r=ino |
| By: | Masino, Serena |
| Abstract: | This paper investigates the channels through which macroeconomic volatility prevents or hinders innovative investment undertakings financed by the domestic business sector. The analysis is based on a sample of 48 countries, representing all levels of development, and uses various measures of macroeconomic instability, such as political, real and monetary volatility. The results suggest a negative impact of macroeconomic instability on the share of R&D financed by the domestic business sector. These outcomes highlight the desirability of counter-cyclical policy interventions aiming to prevent the avoidance or abandonment of private R&D undertakings in unstable macroeconomic environments. |
| Keywords: | Macroeconomic Volatility; Political Instability; R&D Investment; Innovation |
| JEL: | O11 O33 O31 C33 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38830&r=ino |
| By: | Czarnitzki, Dirk; Thorwarth, Susanne |
| Abstract: | R&D encompasses plenty of activities which are usually summarized under the terms of basic research, applied research and development. Although basic research is often associated with low appropriability it provides the fundamental basis for subsequent applied research and development. Especially in the high-tech sector basic research capabilities are an essential component for a firm's success. We use firm-level panel data stemming from Belgian R&D surveys and apply a production function approach which shows that basic research exhibits a premium on a firm's output when compared to applied research and development. When we split the sample into high-tech and low-tech companies, we find a large premium of basic research for firms in high-tech industries, but no premium in low-tech sectors. -- |
| Keywords: | Basic Research,R&D,Production Function Estimation |
| JEL: | L23 O30 O33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12027&r=ino |
| By: | Czarnitzki, Dirk; Delanote, Julie |
| Abstract: | Young Innovative Companies (YIC) gained increasing attention from governments and scholars due to their expected high innovative performance and growth. Consequently, this study investigates whether Young Innovative Companies, as defined by the EU, grow more than other firms, both in terms of employment and in terms of sales. Using a database of Flemish firms over the years 2001-2008 reveals that these firms do grow significantly more than other firms. In addition, this study shows that YICs can be differentiated from New Technology Based Firms and small young firms in terms of growth, pointing to the importance of combining the individual properties characterizing YICs, that is being young (<6 years), small (<250 employees) and R&D intensive (R&D intensity > 15%). In our estimations, we also take the underlying distribution of the growth variables into account by performing quantile regressions. The results of these quantile regressions reveal that YICs especially grow faster than the other, already fast-growing firms, indicating that they are high performers. In addition, we never find that these companies perform significantly worse than the other firms. -- |
| Keywords: | Young Innovative Companies,Growth |
| JEL: | M13 L25 O33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12030&r=ino |
| By: | Budzinski, Oliver; Monostori, Katalin |
| Abstract: | In the context of the WTO, intellectual property rights (IPR) are codified in the TRIPS-agreement. While covering all the different types of IPR, landmark cases of the still young history of TRIPS have dealt with commercial copyrights. This paper summarizes the basic economics of the IPR branch commercial copyrights, reviews the TRIPS history and analyses two TRIPS landmark cases - China-IPR and US-copyrights - from an economic perspective. Eventually, the paper outlines new challenges for the international governance of IPR in the WTO context emerging from digital media. Against an economic background, the re-emergence of unilateral strategies to enforce cross-border commercial copyrights is met with skepticism against. -- |
| Keywords: | intellectual property rights,TRIPS,world trade,commercial copyrights,media economics,innovation |
| JEL: | O34 F02 F13 L82 D02 B52 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:71&r=ino |
| By: | Dal Borgo, Mariela (University of Warwick); Goodridge, Peter (Imperial College Business School); Pesole, Annarosa (Imperial College Business School) |
| Abstract: | This paper tries to calculate some facts for the “knowledge economy”. Building on the work of Corrado, Hulten and Sichel (CHS, 2005,9), using new data sets and a new micro survey, we (1) document UK intangible investment and (2) see how it contributes to economic growth. Regarding investment in knowledge/intangibles, we find (a) this is now greater than tangible investment at, in 2008, £141bn and £104bn respectively; (b) that R&D is about 11% of total intangible investment, software 15%, design 17%, and training and organizational capital 22%; (d) the most intangible-intensive industry is manufacturing (intangible investment is 20% of value added) and (e) treating intangible expenditure as investment raises market sector value added growth in the 1990s due to the ICT investment boom, but slightly reduces it in the 2000s. Regarding the contribution to growth, for 2000-08, (a) intangible capital deepening accounts for 23% of labour productivity growth, against computer hardware (12%) and TFP (40%); (b) adding intangibles to growth accounting lowers TFP growth by about 15% (c) capitalising R&D adds 0.03% to input growth and reduces lnTFP by 0.03% and (d) manufacturing accounts for just over 40% of intangible capital deepening plus TFP |
| Keywords: | : innovation, productivity growth |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:87&r=ino |
| By: | Hülsbeck, Marcel; Lehmann, Erik E.; Weiß, Dominik; Wirsching, Katharine |
| Abstract: | Familienunternehmen gelten in der öffentlichen Wahrnehmung als besonders innovativ und als Hidden Champions der deutschen Wirtschaft. In jüngster Zeit widmen sich Forscher vermehrt der Überprüfung dieser These und kommen zu diametral unterschiedlichen Ergebnissen. Einerseits wird Familienunternehmen ein besonderer Unternehmergeist bescheinigt, der sie besonders innovativ macht, andererseits soll die mangelnde Trennung von Eigentum und Kontrolle sowie unzureichende Diversifikation zu deutlich geringer Innovationsaktivität führen. In dieser Studie untersuchen wir Innovationsaktivitäten von 436 deutschen Industrieunternehmen unterschiedlicher Rechtsformen, Größen, Alter, Industrien und vor allem unterschiedlicher familiärer Beteiligung und Beeinflussung des Management und des Aufsichtsrates. Wir kommen dabei zu differenzierten Ergebnissen. Grundsätzlich wirkt sich sowohl familiäres Anteilseigentum als Beteiligung der Eignerfamilie im Top Management signifikant negativ auf Innovationsaktivitäten aus. Im Gegensatz dazu hat der Grad familiärer Kontrolle im Aufsichtsrat signifikant positive Auswirkungen auf das Innovationsverhalten. Die Ergebnisse deuten darauf hin, dass inhabergeführte Unternehmen aufgrund von Risikoaversion wenig innovativ sind, während der Rückzug der Investorenfamilie in die Rolle eines Ideengebers und Kontrolleurs zu mehr Innnovationen führt. -- Family businesses are publicly believed to be highly innovative and to be the Hidden Champions of the German industry. In recent times scholars have begun to examine this thesis and have come to starkly opposing results. On the one hand family businesses are attested to have a special entrepreneurial spirit which makes them highly innovative. On the other hand the lack of separation of ownership and control and insufficient diversification of family-investors are said to lead to less innovation activity. In this study we investigate the innovation activity of 436 German manufacturing firms differing in legal structure, size, age, industry, and - most importantly - in the degree of family ownership, family management and family control. The results of our analysis reveals differentiated results. Fundamentally, family ownership and family management are detrimental to firm innovation, at the same time family control has a positive impact on innovation activities. Our Results point to the fact that owner-managed businesses tend to innovate less due to risk aversion while a focus on controlling instead of managing a corporation by the owning family lead to an increase in innovations. |
| Keywords: | Familienunternehmen,Corporate Governance,Performance,Innovation,family firms,corporate governance,performance,innovation |
| JEL: | M21 G32 G34 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:auguow:0211&r=ino |
| By: | Andrea Canidio |
| Abstract: | I explore the efficiency properties of a decentralized labor market for scientists. I use a model where firms produce science by building labs and hiring researchers in a competitive market. Firms may invest in science to produce new scientific knowledge or to increase their absorptive capacity: the ability to use scientific knowledge produced outside of the firm. In both cases firms underinvest in labs. More interestingly, when firms' investment in science is motivated by absorptive capacity, researchers and labs may be substitutes in the revenue function, even though they are complements in the research production function. This generates a novel form of inefficiency: for any given distribution of labs, the allocation of researchers to firms is non optimal. Subsidies to the investment in labs cannot restore the first best. I show that the existence of scientists' reputation concerns, by preventing the free transfer of surplus between firms and researchers, may affect the allocation of scientists to labs and increase total welfare. |
| Date: | 2012–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:ceu:econwp:2012_7&r=ino |
| By: | Mapila, Mariam A.T.J.; Anesu, Makina |
| Abstract: | The study evaluates the gendered impacts of Agricultural Innovation Systems driven research on livelihood improvements in Africa. Using a case study from Malawi, the study employs a quasi-experimental research design with propensity score matching to establish a counterfactual and single differencing to measure impact. Results demonstrate that innovation systems driven agricultural research programs impact positively and significantly upon the livelihood outcomes of rural women. However there are differences in benefits accruing to women in rural communities depending on headship of the household with female-headed households benefiting more as compared to women in male-headed households. Policy implications are that; although innovation systems thinking has the potential to improve the livelihood outcomes of the poor in Africa; there is need for deliberate gender facilitation in program implementation to ensure equitable and sustainable livelihood improvements. This requires budgetary support to and capacity building of grassroots agricultural advisory service providers and researchers. |
| Keywords: | Gender equity, Quasi-experimentation, Enabling Rural Innovation, Africa, Agricultural and Food Policy, Community/Rural/Urban Development, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:123359&r=ino |