nep-ino New Economics Papers
on Innovation
Issue of 2012‒07‒29
thirty-six papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Patents, competition and firms’ innovation incentives By Pilar Beneito; María E. Rochina-Barrachina; Amparo Sanchis
  2. Inventors and Imposters: An Analysis of Patent Examination with Self-Selection of Firms into R&D By Schuett, F.
  3. REGIONAL R&D&i PRODUCTIVITY IN EUROPE. IDENTIFYING REGIONAL TYPOLOGIES AND POLICY RECOMMENDATIONS By Ricardo AGUADO; Jabier MARTINEZ; Miguel Angel LARRINAGA
  4. A Different Path to Growth? Service Innovation and Performance amongst UK Manufacturers By Tether, B.; Bascavusoglu-Moreau, E.
  5. Determinants of Equity-based and Co-operative Foreign R&D and Impact on the Parent Firm's Performance. A Comparative Firm-level Analysis for Switzerland and Austria By Martin Berger; Heinz Hollenstein
  6. Promoting intellectual property monetization in developing countries : a review of issues and strategies to support knowledge-driven growth By Ghafele, Roya; Gibert, Benjamin
  7. An exam of the role of the geographical proximity for the university-industry linkages By Renato Garcia; Veneziano Araujo; Suelene Mascarini
  8. Innovation systems and regional clustering: the diffusion of knowledge for sustainability issues By Rita Santos; Walter Leal; Evando Mirra
  9. Does agglomeration boost innovation? An econometric evaluation By Megha Mukim
  10. The Community Structure of R&D Cooperation in Europe. Evidence from a social networks perspective By Michael J. Barber; Manfred M. Fischer; Thomas Scherngell
  11. Assessing technology-based spin-offs from university support units By Mircea Epure; Diego Prior; Christian Serarols
  12. Innovation activity in the SMEs and local environment By Esa Storhammar; Timo Tohmo
  13. Can Innovation Enhance Entrepreneurial Activities of a Region? An Analysis Utilizing the Entrepreneurial Remedy Model (EREM). By Adli Abouzeedan; Boo Edgar; Thomas Hedner
  14. KNOWLEDGE INTENSIVE SERVICES CONCENTRATION ACROSS EUROPEAN REGIONS By Xavier Vence; Manuel Gonzalez
  15. UK Innovation Index: Productivity and Growth in UK Industries By Goodridge, Peter; Haskel, Jonathan; Wallis, Gavin
  16. The Influence of Clustering on MNE Location and Innovation in Great Britain By Gary Cook; Naresh Pandit; Hans Loof; Bˆrje Johansson
  17. Medio siglo de innovación y transferencia de tecnología en España, 1950-2000 By Antonio Cubel; Vicente Esteve; Juan A. Sanchis; María T. Sanchis
  18. Scenario Planning as a Tool to Promote Innovation in Regional Development Context By Boo Edgar; Adli Abouzeedan; Thomas Hedner
  19. Low-Tech Innovation in a High-Tech Environment? The Food Industry in the Metropolitan Region of Vienna By Michaela Trippl
  20. Pursuing sustainable growth through an intense collaboration between universities/colleges and SME's in West-Flanders (Belgium) By Marie Van Looveren
  21. Marshall's Dilemma: Intangible Assets and European Universities By Edward Bergman
  22. What do innovation networks really do for local development? By Nicolas Bonnet
  23. Universities, Entry and Growth By Antonio Della Malva; Martin Carree; Enrico Santarelli
  24. Learning networks of academic spin-offs - A spatial perspective By Mozhdeh Taheri; Marina Van Geenhuizen
  25. Location, knowledge sourcing and innovation – Evidence from the ICT sector in Austria By Markus Grillitsch; Christoph Höglinger; Franz Tödtling
  26. The Evolution of Science Policy and Innovation Studies By Martin, B.R.
  27. Regional efficiency in generating technological knowledge By Axel Schaffer; Jan Rauland
  28. Innovation systems and policy: not only for the rich? By Carlota Perez
  29. Spatial Characteristics of Labor Mobility and Innovation inside an Industrial Cluster: Some Reflections from Siteler in Ankara By Burak Beyhan
  30. Creative capacity for sustainable development: A comparative analysis of European and Turkish rural regions By Aliye Ahu Gulumser; Tuzin Baycan-Levent; Peter Nijkamp
  31. The Industrial District's Influence on the Innovative Process: The Case of the Spanish Plastics Industry By M¬™ Jesus Santa Maria Beneyto; JosÈ Miguel Giner PÈrez
  32. The Regional distribution of Knowledge-Intensive Business Services in Europe: a spatial approach By Mercedes Rodriguez; JosÈ Antonio Camacho
  33. Evaluating the Economic Impacts of Technological Innovation in the Automobile Industry: The Input-Output Approach By Hiroyuki Shibusawa; Takafumi Sugawara
  34. People, Publications, Patents, and Places: The Early Diffusion of Laser-Research and Laser-Technology in West Germany, 1960- 2005 By Michael Fritsch; Luis F. Medrano E.
  35. Pharmaceutical Innovation and Longevity Growth in 30 Developing and High-income Countries, 2000-2009 By Frank R. Lichtenberg
  36. Micro foundations for knowledge spillovers in spatial equilibrium models By Stein Ostbye; Sylvain Barde

  1. By: Pilar Beneito (University of Valencia and ERICES); María E. Rochina-Barrachina (University of Valencia and ERICES); Amparo Sanchis (University of Valencia and ERICES)
    Abstract: In this paper we analyze how industrial property rights (IPRs), measured by patents granted, affect competition at the industry level, and their induced effects on firms’ innovation incentives. We use for that purpose a panel dataset of Spanish manufacturing firms for the period 1990-2006. Using indicators of fundamentals of competitive pressure and factor analysis techniques, we construct a new synthetic measure of competition. Our results indicate that although the use of IPRs (in terms of industry patenting intensity) reduces market competition, it may also encourage firms’ innovation incentives (in terms of firms’ R&D expenditures and the number of product innovations).
    Keywords: IPRs, patents, competition, innovation
    JEL: D22 L10 L60 O31 O34
    Date: 2012–07
    URL: http://d.repec.org/n?u=RePEc:eec:wpaper:1211&r=ino
  2. By: Schuett, F. (Tilburg University, Tilburg Law and Economics Center)
    Abstract: Abstract: I present a model in which firms differing in R&D productivity choose between ambitious research projects, which are socially desirable, and unambitious ones, which are socially undesirable. The patent office must decide how rigorously to examine applications, which affects the probability of weeding out bad applications but also how firms self-select into more or less ambitious projects. Both the ex post and ex ante welfare effects need to be taken into account in determining the optimal examination intensity. The model allows me to assess the impact of various policy changes on examination and welfare, including the creation of specialized patent courts, post-grant opposition, and the delegation of fee-setting authority to the patent office. It generates a number of predictions that are consistent with empirical evidence on the patent system.
    Keywords: innovation;patent office;optimal patent policy.
    JEL: O31 O38 D73 D82 L50
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:dgr:kubtil:2012026&r=ino
  3. By: Ricardo AGUADO; Jabier MARTINEZ; Miguel Angel LARRINAGA
    Abstract: Research, development and innovation activities have become key sources of competitive advantage, which is one of the main factors behind the wellbeing of citizens living in a given territory. Being aware of this fact, public administrations at different administrative levels have encouraged the production of innovations through different public policies. On the other hand, firms that invest in research, development and innovation usually obtain in the long and medium terms innovative products and services that allow them to compete in favorable conditions in the local and international markets. If we focus in Europe, regional disparities in the amount of innovation inputs on one side and in the amount of innovation outputs on the other side are very high. In this paper the authors will measure the productivity of research, development and innovation activities performed by all regions in the EU. In order to do so, the authors will take into account some indicators to measure innovation inputs and outputs (related to science, technology and also to collaboration among agents in innovation activities and wealth creation) at the regional level. Using the Data Envelopment Analysis (DEA) we will measure regional productivity in the field of R&D and innovation and we will compare this productivity outcome between regions in the EU. After explaining this first DEA model, we will use the main components analysis and then cluster analysis to achieve a typology of regions regarding their productivity in R&D and innovation activities. Once the typology of regions has been described and analyzed, the paper will end with some policy recommendations for each type of region, taking into account the regional innovation systems approach to innovation understanding and innovation policy. It may be possible to establish learning processes between different types of regions, taking into account the singularity and the unique mix of assets of each region.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p412&r=ino
  4. By: Tether, B.; Bascavusoglu-Moreau, E.
    Abstract: Introducing and innovating services is advocated as a means by which manufacturing firms in advanced economies can retain or enhance their competitiveness. But little is known about how manufacturers innovate services, nor about the impact of service innovation on manufacturers' performance. Using two consecutive waves of the UK Innovation Survey, this paper first examines how manufacturers innovate services, comparing this with how they innovate goods (i.e., material products) and production processes. We find that manufacturers tend to innovate services differently: R&D is found to be unimportant, whilst investments in marketing and training are found to be related to service innovation. The paper then examines the impact of service innovation on performance, in terms of innovative sales per employee and total sales per employee. We find that service innovation does not increase innovative sales but is associated with higher total sales per employee.
    Keywords: Service Innovation, Servitization, Innovation Survey, Multivariate Probit, Multinomial Logit.
    JEL: O30 O32 O40
    Date: 2012–06
    URL: http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp433&r=ino
  5. By: Martin Berger; Heinz Hollenstein (WIFO)
    Abstract: The paper complements entry mode research by dealing with the choice of alternative modes of governance in the specific case of foreign R&D and its impact on a parent firm's performance. Firstly, we identify the factors that determine whether a firm locates abroad any R&D activities, and, if it does so, whether it chooses an equity-based rather than a non-equity co-operative mode of governance. The OLI paradigm is used as theoretical background of this analysis. Secondly, we determine the impact of foreign R&D on a parent firm's performance in terms of innovation output and labour productivity, and investigate whether this effect differs among firms using the one or the other governance mode. The study is based on separate estimations for Switzerland and Austria using comparable firm data and model specifications. The two countries are interesting cases as they strongly differ in terms of level and pattern of internationalisation.
    Keywords: Internationalisation of R&D, Governance of foreign R&D, International R&D cooperation
    Date: 2012–07–18
    URL: http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2012:i:432&r=ino
  6. By: Ghafele, Roya; Gibert, Benjamin
    Abstract: This paper outlines and evaluates several intellectual property monetization strategies available to patent holders in developing countries that help generate domestic innovation and knowledge-driven growth by promoting more active technology markets. Based on a review of World Intellectual Property Report indicators, the patent ownership gap between a sample of developed and developing countries has narrowed gradually for more technologically-sophisticated developing countries. However, based on complementary International Monetary Fund Balance of Payments data, the patent commercialization divide (as indicated by licensing income) has been widening. The paper argues that patents, and all forms of intellectual property, are an enabling mechanism rather than a defensive right: an intangible asset class that can be proactively nurtured and managed for greater value extraction to stimulate knowledge-based entrepreneurship and growth in developing countries. The paper presents multiple case studies of alternative monetization strategies to address the commercialization divide. These strategies range from private, market-driven options to those requiring a greater amount of public policy support: from patent securitization and patent exchanges (focusing on the United States-initiated Intellectual Property Exchange International and the Shanghai Silicon Intellectual Property Exchange), to the strengthening of technology transfer and commercialization infrastructure (focusing on the experience of the Association of University Technology Managers and Taiwan, China's Intellectual Property Rights Institute), to patent litigation support (including South Korea's support of patent infringement lawsuit costs for small and medium enterprises). The paper also highlights areas where further policy research would be helpful.
    Keywords: E-Business,Technology Industry,ICT Policy and Strategies,Debt Markets,Real&Intellectual Property Law
    Date: 2012–07–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6143&r=ino
  7. By: Renato Garcia; Veneziano Araujo; Suelene Mascarini
    Abstract: It is widely recognized in the literature that the clustering of firms can generate benefits for the local firms, especially in terms of the creation and diffusion of knowledge among producers. One of the main sources of this new knowledge is the academic research, which can contribute to the innovative efforts of the firms, mainly when researchers in university and industry can cooperate by build joint research projects. Many authors (Audrescht and Feldman, 1996; Acs and Varga, 2005; Breschi and Lissoni, 2009) have shown that academic research is positively correlated with firms’ innovation at the geographical level. There are two reasons that are pointed out for this correlation. First, there are many ways in which knowledge generated by academic research can spill over to the firms, such as papers, patents and informal contacts. Second, geographical proximity can encourage cooperation between academic researchers and the R&D staff in the firms. Based on these statements, it was done an empirical research by using data from the Brazilian Research Council (CNPq), collected at the CNPq Directory of Research Groups of Brazilian universities. This database allows the identification of 2,151 interactive research groups, among 19,470, that declared that they have interactions with 3,068 firms. By the localization of both firms and university research groups, it was possible to gather information about the geographical pattern of university-industry linkages.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p761&r=ino
  8. By: Rita Santos; Walter Leal; Evando Mirra
    Abstract: The innovation systems perspective is primarily concerned with the knowledge flow and diffusion and its positive impact of stimulating economic growth. In innovation systems observed at the regional level there is a tendency of technologically dynamic production to become spatially concentrated in clusters, where individuals and organizations possessing specialized knowledge and technological capabilities. Consequently, results appear as collective efficiency, competitive advantage and economic benefits. During the 1980s and early 1990s, Brazil set up an important telecommunications cluster in Campinas region, fostered by government policies, and evolved around a telecom R&D Centre. Several small high-tech firms were established, grew, competed and cooperated with the local infrastructure and multinational corporation (MNC) subsidiaries. These, in turn, increased their local technological efforts and engaged in joint technological programs with local partners. In this paper the relation between innovation and knowledge is illustrated by the high-technology cluster of Campinas. It also discusses clustering enabling technology for environmental sustainability issues and regional implications. Keywords: development; knowledge spillovers; region; innovation systems; sustainability
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1539&r=ino
  9. By: Megha Mukim
    Abstract: Innovation is crucial to regional economic competitiveness and to productivity growth. A salient feature of the Indian economy is the geographic concentration of both, economic activity and innovation, as measured by patent activity. Theoretical models argue that the clustering of economic activity within a geographic region results in knowledge spillovers, which in turn drives innovation. The literature also posits that the presence of human capital is critical to the generation of new knowledge. This paper studies how and why economic geography and factor endowments matter for innovative activity – in other words, what is the relationship between human capital and patent generation, and crucially, how is this affected by the spatial distribution of economic activity? The paper analyses patent activity, both applications and grants, between 1995 and 2004 across districts in India. By using an econometric model, it then relates innovation to measures of agglomeration, industry-type and the size distribution of firms, and to the distribution of human capital endowments. It also uses data on employment by industrial activity, productivity and FDI flows. Understanding the magnitude of the effects of economic geography and factor endowments is vital for policy formulation aimed at encouraging innovative activity.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1356&r=ino
  10. By: Michael J. Barber; Manfred M. Fischer; Thomas Scherngell
    Abstract: The focus of this paper is on pre-competitive R&D cooperation across Europe, as captured by R&D joint ventures funded by the European Commission in the time period 2002-2006, within the 5th Framework Program. The cooperations in this Framework Program give rise to a collaborative network, with network nodes representing actors (i.e. organizations including firms, universities, research organizations and public agencies) and network edges representing R&D projects. With this construction, participating actors are linked only through joint projects. We formally describe and analyze the network from a social networks perspective that shifts attention to the detection and analysis of the community structure within the network. Distinct communities within networks may be loosely defined as groups of actors such that there is a higher density of relations within groups than between them. In this study, we attempt to detect communities of actors solely on the basis of the relational structure within the network, and to characterize and differentiate the identified network communities by means of information-theoretic methods, community-specific profiles and the location of their major actors. We expect the results to enrich our picture of the European research area by providing new insights into the global and local structures of R&D cooperation across Europe.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p615&r=ino
  11. By: Mircea Epure; Diego Prior; Christian Serarols
    Abstract: Literature highlights the importance of university spin-offs and their assistance mechanisms. However, there is little evidence on how to select and operationalize the appropriate variables for assessing this type of firms. This paper provides tools to estimate and interpret the efficiency of spinoffs embedded in university-based support mechanisms. We thus contribute to the literature in at least two ways. First, we identify the specific inputs and outputs that are required by both the organisational and regional development perspectives. Second, an application considers a unique sample of spin-offs created at Catalan universities within a regional support programme. Main descriptive results indicate that many efficient spin-offs have formal technology transfer agreements and emerge from universities with more technological background. Second stage analyses show that higher levels of innovation and specific academic knowledge or experience related with the university of origin are associated with higher efficiency.
    Keywords: university spin-off, regional development, efficiency, entrepreneurship, technology transfer, innovation
    JEL: M1 R1
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:upf:upfgen:1330&r=ino
  12. By: Esa Storhammar; Timo Tohmo
    Abstract: ABSTRACT The aim of this study is to clarify what factors affect the innovation activity of small and medium-sized enterprises (SMEs), and especially the effect of regional factors. Innovations are seen as central phenomena on both micro and macro levels in economy. However, we know little about the formation, development and diffusion of innovations in different milieus. The different types of branch and enterprise structure might be the essential factor that accounts for regional differences in innovation activities. Many studies show remarkable differences between branches. Additionally, the resources of firms give an unequal starting point for innovation activities. Our study observed that the differences between regions were smaller than anticipated. It also found the innovation profiles in different areas to be fairly convergent.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p240&r=ino
  13. By: Adli Abouzeedan; Boo Edgar; Thomas Hedner
    Abstract: In contrast to the Entrepreneurial Recycling Model (EREC), the Entrepreneurial Remedy Model (EREM) demands an active role of innovation to create an environment where small and medium size companies (SMEs) are developed. The EREM may provide a conceptual platform which may explain why developed regions have succeeded in maintaining a healthy entrepreneurial environment, while the less developed have failed to do that. Further, the Open Innovation concept is brought into the discussion connecting innovation to entrepreneurial environment conditions. A question which remains to be solves has to do to with the impact of innovation on the extent of entrepreneurial activities at a regional level. In this paper we will analyze and discuss this issue and provide understanding of the impact of innovation using the EREM. As such, the EREM offers an analytical tool to examine how the macroeconomic conditions impact the creation of new firms within a region or a country. Keywords: Open innovation, Entrepreneurial Remedy Model, EREM, regional development, incubators, start-ups, Small and medium-sized enterprises, SMEs
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1277&r=ino
  14. By: Xavier Vence; Manuel Gonzalez
    Abstract: This paper aims to contribute toa better understanding of the Knowledge Intensive Services spatial distribution across the European Union(EU) regions(NUTSII), linking recent research approaches on innovation and structural change with approaches to regional economics. As a means of conducting this research, we classify economic activities according to six sectors based on their knowledge/technology intensity. Our results show that the higher the knowledge/technology content of the economic activity, the higher the concentration level of the activity.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1377&r=ino
  15. By: Goodridge, Peter; Haskel, Jonathan; Wallis, Gavin
    Abstract: This paper provides an update of the NESTA Innovation Index and 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 34% greater than tangible investment, in 2009, £124.2bn and £92.7bn respectively; (b) that R&D is about 11% of total intangible investment, software 18%, design 12%, and training and organizational capital 21% each; (d) the most intangible-intensive industry is manufacturing (intangible investment is 17% 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 has less impact on aggregate measures of growth in the 2000s. Regarding the contribution to growth, for 2000-09, (a) intangible capital deepening accounts for 26% of labour productivity growth, against computer hardware and telecommunications equipment combined (16%) and TFP (-0.4%); (b) adding intangibles to growth accounting lowers TFP growth by about 18 percentage points (c) capitalising R&D adds 0.04% to input growth and reduces ΔlnTFP by 0.02% and (d) manufacturing accounts for 47% of intangible capital deepening plus TFP.
    Keywords: growth; innovation; intangibles
    Date: 2012–07
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:9063&r=ino
  16. By: Gary Cook; Naresh Pandit; Hans Loof; Bˆrje Johansson
    Abstract: This paper addresses two questions: what, if anything, is the influence of geographic concentration of economic activity on patterns of foreign direct investment; what is the relationship, if any, between geographic concentration of economic activity, multinationality and innovation. The paper identifies the consensus view which is emerging in the literature, based on both theory and evidence, that strong clusters are likely to be attractive for inward direct investment and that they promote innovation. The paper tests whether this relationship is evident in Great Britain using data derived from the UKís Annual Foreign Direct Investment survey and the UKís Community Innovation Survey 2007. It addresses a surprising gap in the emerging literature by also examining the relationship between cluster strength and outward direct investment, thereby testing Porterís (1990) claim in The Competitive Advantage of Nations, that advantages gained in strong clusters would be the foundations of international competitiveness. The paper also distinguishes between two different types of agglomeration economy, localisation economies based on collocation of firms in related lines of activity, and urbanisation economies based on the overall concentration of economic activity in a particular region, a distinction most of the emerging literature in International Business has not made clear. The first set of models examine the propensity to engage in outward direct investment and the geographic pattern of foreign ownership of firms active in Great Britain and find that both are positively related to cluster strength, with localisation economies being more important than urbanisation economies. T wo models of innovation are estimated, the first examines what factors influence firms to be innovative and the second what influences innovation effort as measured by R&D intensity. In both cases there is evidence that regional agglomeration promotes innovation and that there are stronger effects flowing from own industry agglomeration than from broader regional scale.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1489&r=ino
  17. By: Antonio Cubel (Universitat de València); Vicente Esteve (Universitat de València y Universidad de la Laguna); Juan A. Sanchis (Universitat de València y ERI-CES); María T. Sanchis (Universitat de València e Instituto Figuerola de Ciencias Sociales)
    Abstract: In this study we analyse the effect of both foreign and domestic technological innovation on Total Factor Productivity (TFP) for Spain in the second half of the XXth century. For this purpose we estimate an extended version of Coe and Helpman (1995) model including a general human capital variable. The foreign and domestic stock of knowledge have been approximated throughout several variables such as are the stock of R&D, the stock of patents and the expenses for using foreign licenses and patents. Our results suggest that the inflow of foreign technology had a positive and significant effect on the Spanish TFP, being this effect higher than the effect of the domestic stock of knowledge. Moreover, the openness to foreign trade has also favoured the arrival of foreign technology and the increase of productivity. Finally, it is interesting to highlight that our results indicate that human capital played also a relevant role on the evolution of TFP
    Keywords: España: segunda mitad del siglo XX; transferencia internacional de tecnología; patentes; productividad; técnicas de cointegración
    JEL: N14 O33 O47 O22
    Date: 2012–07
    URL: http://d.repec.org/n?u=RePEc:eec:wpaper:1212&r=ino
  18. By: Boo Edgar; Adli Abouzeedan; Thomas Hedner
    Abstract: Scenario planning is a tool that can be used to project and promote innovation activities in organizations. The more disruptive the innovation is, the more beneficial effects will be expected to come out of utilizing a scenario planning process. This planning approach may be considered when discussing innovation in relation to regional development as well as in respect to the introduction of novel and potentially radical innovations. In this paper, we discuss the utilization of scenario planning to promote innovation in a regional development context. Scenario planning may provide possibilities for creating various alternative but plausible outcomes (scenarios) of the future and may further provide the possibility to examine them in depth. Scenario planning considers the uncertainties and driving forces that may have an impact on the dynamics of regional development. In the paper we discuss the policies and strategies which are required to promote and enhance the application of the scenario planning technique in initiating and sustaining progress and development in the Nordic region. Keywords: Scenario planning, innovation, regional development, plausible outcomes, regional development.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1294&r=ino
  19. By: Michaela Trippl
    Abstract: This paper deals with innovation activities and the pattern of knowledge linkages in the food industry located in the metropolitan region of Vienna. Drawing on 20 qualitative interviews with local companies and knowledge providers (universities and other research organisations) it is shown that in the Vienna food sector innovation has a high importance as competitive strategy. Furthermore, we demonstrate that Vienna’s innovative food companies embrace a wide range of different knowledge sources. Analysing the geography of linkages to these sources, reveals that most of them are extra-local in nature. This finding has to be interpreted against the background of an ongoing reconfiguration of the regional innovation system (RIS). Vienna’s RIS is in a process of transformation, becoming increasingly oriented on promoting young high-tech industries and providing only few impulses for innovation in older and more traditional sectors such as the food industry.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p133&r=ino
  20. By: Marie Van Looveren
    Abstract: The region of West Flanders scores rather low in Flanders on a number of economic indicators, such as innovation, and a number of education-related indicators such as the intake in higher education and the participation in scientific education. In order to change this situation, initiatives were taken by the province in order to reinforce the higher education as well as the socio-economic position of the region based on thorough scientific research. On the basis of the cluster theory by Porter, highlighting the importance of thematic clustering of research and socio-economic activities, analysis is made of the strengths and weaknesses of the socio-economic field as well as of the available research expertise in the higher education institutions; this in close collaboration with the socio-economic partners and employers/employees from the various provincial sub-regions. It resulted in a growth plan containing several thematic spearhead actions. In the elaboration of the growth plan, emphasis is laid on the coherence and mutual reinforcement of the entire innovation chain going from knowledge development to knowledge application and spreading. A concrete initiative contributing to the realization of this plan are the easily accessible expertise and services centres (LEDs) set up on the initiative of the province. Thematically, they complement the expertise present in the higher education institutions and meet the actual needs of small and medium entrepreneurs in the region. Entrepreneurs or organizations can appeal to the network for innovation questions and they can leave the elaboration to research groups. Both partners are in a win- win situation: the entrepreneur who often does not have the means for R&D can innovate after all and the research groups in the higher education institutions are given the possibility to accumulate and develop their scientific knowledge. It is clear that a close collaboration between higher education and the socio-economic field has a surplus value for both actors.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p72&r=ino
  21. By: Edward Bergman
    Abstract: Difficulty in extracting scientific and research findings from EU universities and placing such knowledge at the commercial disposal of innovation-dependent firms and industries is a cause for grave concern by the European Commission and many of its member states and regions, particularly when contrasted with the notable success enjoyed by U.S. universities. A review of literature from the perspective of EU knowledge-seeking firms and knowledge-generating universities reveals a striking asymmetry: firms presently seek mainly public science outputs, while universities pursue proprietary science opportunities more heavily in their dealings with business and industry. At the same time knowledge flows are being promoted far more aggressively, universities are being totally restructured, harmonised in many respects and decentralized regarding governance and accountability. Results from a web-survey of 1798 EU academics posted in Europe’s universities listed in the Shanghai TOP 500 reveal several important findings of interest. First, EU and U.S. respondents have quite similar views of what is considered reasonable with regard to public vs. private science. The exceptions reveal a generally stronger approval by EU academicians for their universities to be more proactive regarding commercialization, particularly university support of research-based start-up firms, with some differences based on respondents’ discipline [(1) biological sciences, 2) physics, 3) computer science, 4) chemical engineering, 5) economics and 6) history]. Further investigation shows those who have already undertaken or investigated commercialization opportunities tend to approve a battery of commercialization measures taken by their universities, and those who: a. have worked on externally-funded research projects with colleagues from industry, b. see regional business leaders influencing university commercialization policies, c. are heavily engaged in public service activities, and have collaborated with industry colleagues on research projects. (submitted to Uddevalla)
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p363&r=ino
  22. By: Nicolas Bonnet
    Abstract: We address the role of innovation networks on growth of territories in the Canadian space (TER WALL et BOSCHMA, 2009). We rely on an analysis of labor market areas for the period 1996 - 2008 on the basis of patent applications filed jointly by several inventors so as to develop the networks of cooperation. An analysis of such networks on the basis of these geography areas can provide some additional explanatories on the core-periphery model, which appears between the labor market areas that innovate and those that develop economically. The working hypothesis is therefore as follows. If technological change is undeniably the macro-economic factors of growth (ROMER, 1990), the level of flow of knowledge spillover between cities and particularly the degree of centrality of each of them within the collaborative network, has a differential impact on local economic development between urban areas (GORDON et McCANN, 2000). This working hypothesis is based on the observation that innovation at the local level does not necessarily lead to economic development of territories in which it operates.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1571&r=ino
  23. By: Antonio Della Malva; Martin Carree; Enrico Santarelli
    Abstract: The anecdotal evidence provided by the literature on high tech clusters has paved the way to systematic explorations of the localized effects of academic research on technological success and economic development. Prime drivers of such development are new entrants. New entrants are more likely to embark in the risky activity of developing new products and/or new processes, they often open up new markets, restructure existing ones, replace declining industries and reshape local markets. Studies on the relation between academic R&D and business entry have found modest effects of the former on the latter. Recent empirical findings in the field of technology transfer, however, suggest that quality of academic research and the entrepreneurial attitude by faculty be the main factors explaining economic relevance of academic R&D. In this study we test the hypothesis that knowledge spilling over departments conducting cutting-edge research generates higher entry in related technology-intensive sectors than lower standing departments. We thus explore the extent to which the quantity, quality and orientation of research carried on at universities stimulates differently market entry in high-tech and low-tech sectors and the consequences of entry (high and low tech) on economic growth. We use data on business entry in 103 Italian provinces (NUTS3) between 2001 and 2006; we relate entry to a battery of measures of university presence in the province: the number of students graduated in scientific disciplines in 2001, the scientific productivity of academics between 1985 and 1999 and the number of patents invented by academics between 1978 and 2000. We apply a three-equation recursive model where in the first place we estimate the contribution of universities to entry, both in high-tech and low tech sectors and secondly the effects of entry and universities on economic growth. Additionally, we include patents and trademarks to control for the existence of innovative activities from the private sector, the presence and relevance of industrial districts to account for industrial specialization, the quality of road infrastructures and the existence of business service providers to support the creation of new ventures.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p554&r=ino
  24. By: Mozhdeh Taheri; Marina Van Geenhuizen
    Abstract: Abstract-The importance of new knowledge in innovative activities of firms and the impact of these activities on economic development of regions have been acknowledged in many studies. In particular, universities and firms that are established on university knowledge, spin-off firms, function as nodes and channels through which new knowledge is diffused into the wider (regional) economy. New knowledge is a strategic resource of competitive advantage for young high-tech firms. Of course, many of these firms are based on new technical knowledge but they may lack market and managerial knowledge and skills. An important way of learning on these different aspects is through social networks and business networks, with a local (national) and/or international coverage. Many studies have attempted to understand the characteristics of networks of young high-tech firms, but a detailed picture and understanding of the time and space dimension of models of learning relationships are rare. What may be true is that a well-developed local learning network performs as an important condition for establishing international learning relationships, indicating a stepwise model. The theory of ëborn globalsí indicates, however, international learning from the start of the firm. This paper explores the learning models of university spin-off firms, including some aspects of absorptive capacity, with a focus on various combinations of local and global knowledge networks and changes in these combinations by age of the firms. The analysis draws on a sample of 100 spin-offs from two universities: TU Delft University in the Netherlands and Norwegian University of Science and Technology (NTNU) in Trondheim in Norway. Resource based views and organizational learning theory will be applied to design an analytical model of young high-tech firmsí shaping of learning connections and improving of innovation performance. The empirical part of the paper will include descriptive and explanatory results, the latter derived from correlation analysis.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1661&r=ino
  25. By: Markus Grillitsch; Christoph Höglinger; Franz Tödtling
    Abstract: The competitiveness of many of today’s industries largely depends on the ability to innovate. Innovation is nowadays regarded as a result of an open and interactive knowledge process, demanding from companies to generate, absorb and apply knowledge relying both on internal and external sources. Companies often maintain links to a large variety of knowledge sources and partner types on different geographic levels and they use different mechanisms for acquiring knowledge from these sources. In addition, the location of companies is thought to have an important impact on innovativeness through potential regional knowledge links and accessibility to interregional ones. The location of a company in a “thick” Regional Innovation System (RIS) should lead to a better performance as compared to a location in a “thin” RIS. Conceptually, the paper aims to develop a better understanding of the relationships and dynamics between internal knowledge and learning through external knowledge sourcing. The derived presumptions are tested by developing and applying a multivariate model that describes the impact of the above-mentioned factors on the innovativeness of firms. The importance of internal knowledge, the variety of knowledge sourcing on regional, national and international levels, the importance of cooperation as a transfer mechanism as well as the location of companies are identified as key determinants of innovativeness in knowledge-based sectors. The paper draws on data from the ICT sector in three regions in Austria. Overall, 110 personal interviews and questionnaires were collected from companies of this sector.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p676&r=ino
  26. By: Martin, B.R.
    Abstract: This article examines the origins and evolution of the field of science policy and innovation studies (SPIS). In particular, it seeks to identify the key intellectual developments in the field over the last 50 years by analysing the publications that have been highly cited by other researchers. Along with other studies reported in this Special issue, it represents one of the first and most systematic attempts to identify and analyse the most influential contributions to an emerging field on the basis of highly cited books and articles. The analysis reveals how the emerging field of SPIS drew upon a growing range of disciplines in the late 1950s and 1960s, and how the relationship with these disciplines evolved over time. Around the mid-1980s, SPIS started to become a more coherent field centred on the adoption of an evolutionary (or neo-Schumpeterian) economics framework, and an interactive model of the innovation process, and (a little later) the concept of 'systems of innovation' and the resource-based view of the firm. The article concludes with a discussion of whether SPIS is perhaps in the early stages of becoming a discipline.
    Keywords: innovation studies, science policy, history, evolution, highly cited publications, key contributions
    JEL: O30 O31 O32 B25
    Date: 2012–06
    URL: http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp432&r=ino
  27. By: Axel Schaffer; Jan Rauland
    Abstract: There is broad consensus among economists that regions’ competitiveness heavily relies on their ability to produce innovative goods and services (Baumol 1967, Romer 1990, Grossman and Helpman 1991, Barro and Sala-i-Martin 1997, Los and Verspagen 2006). Main drivers of innovation include, but are not limited to, human and cognitive capital (Quelle), R&D expenditures (Quelle), industrial clusters and structure (Quelle) and foreign direct investments (Quelle). Most empirical studies confirm the presumed positive correlation of these inputs and regional innovativeness, measured for example by patent applications. At the same time, regions operating at similar input level show significant differences in the degree of innovativeness. These differences can, to some extent, be explained by the regions efficiency in using their available input factors (Quelle). The presented paper aims, in a first step, to identify this efficiency by using an outlier robust enhancement of the data envelopment analysis (DEA), the so-called order-α-frontier analysis (Daouia and Simar 2005, Daraio and Simar 2006), for a sample of more than 200 EU regions (NUTS 2). The findings of this model suggest that the regions’ efficiency is partly affected by a spatial factor. Therefore, the study foresees to decompose regional efficiency into a spatial and non-spatial part by introducing a geoadditive regression analysis based on markov fields. The spatial part reveals differences of the efficiency for greater areas. Regions located in efficient areas, for example, are likely to be efficient as well, since they benefit by the efficiency of neighboring regions. In contrast, the non-spatial effect gives an idea on a region’s efficiency compared to the neighboring and nearby regions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1108&r=ino
  28. By: Carlota Perez
    Abstract: This article argues that the conditions for innovation by and for the poor have changed considerably in the last four decades in ways that can be related to the paradigm shift in technology and to the resulting changes in behaviour of the major corporations. It suggests that innovation studies and evolutionary economics should consciously and constantly pursue an understanding of such changes by fully incorporating history in the interdisciplinary mix. In essence it holds that evolutionary thinking needs to strike an appropriate balance between universal and changing truths, especially when studying innovation with a view to making policy recommendations.
    Date: 2012–07
    URL: http://d.repec.org/n?u=RePEc:tth:wpaper:42&r=ino
  29. By: Burak Beyhan
    Abstract: Although the literature on industrial clusters and districts emphasizes the role of labor mobility in the diffusion of innovation and tacit knowledge, relatively little academic effort supported by strong empirical evidences has been made in order to reveal the association between labor mobility and innovation in an appealing way. Likewise, the experimental studies outlining the spatial characteristics of labor mobility and innovation inside a cluster are nearly absent. In terms of its inner spatial configuration, the cluster itself is a black box for not only economists but also for geographers and planners especially when the interplay of labor mobility and innovation is considered. Most of the studies either tend to concentrate on a single cluster without informing us about the actual relevance of space inside the cluster or compare the clusters in a region (or country) again without developing a proper measure for the comparisons of the respective clusters in terms of the spatial characteristics of the labor mobility and innovation inside them. In this regard, the basic pursuit of this paper is both to develop and utilize simple measures in order to account for the relevance of space in different configurations of innovation and labor mobility inside an industrial cluster by making use of the parameters and analysis developed for Social Network Analysis (SNA), Space Syntax (SS) and Geographic Information Systems (GIS). What is especially remarkable in this study is the preference for free and open source software and establishment of author’s own algorithms. In an attempt to reveal the spatial contexts of the labor mobility and innovation occurring inside a cluster, firstly streets involved in Siteler, an industrial cluster in Ankara and specialized in furniture production, are divided into segments according to some intuitive criteria. Subsequently, a series of analysis is conducted by employing parameters of SNA, SS and GIS. What is evident from this paper is that labor mobility and innovation inside Siteler is strongly imprinted with the spatial configuration of streets in the cluster.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p421&r=ino
  30. By: Aliye Ahu Gulumser; Tuzin Baycan-Levent; Peter Nijkamp
    Abstract: Creative capacity in the field of regional sciences means the capability of any region to generate knowledge and thus to achieve innovation and the diffusion of the output of the innovative activity while obtaining the viability and sustainability of this process. Although creative capacity studies mainly focus on urban regions, the late rural studies and empirical evidences showed that rural region has a great potential capacity in terms of its five components viz. knowledge; innovation; entrepreneurship; creativity; and networks. But, these opportunities have shown by a rural specific approach rather than an urban approach. On this basis, by taking into consideration these discussions in the literature, we assume that the rural creative capacity can be evaluated by the recent changes in rural regions that show the capability of rural regions to exploit its knowledge as an output. On this purpose, in this study, we aim to evaluate which component is relatively important to identify the level of rural creative capacity. Therefore, the study focuses on 60 villages from Europe and 17 villages from Turkey by deploying the data obtained from the in-depth questionnaires. This study is a first attempt at settlement level with an optimistic approach to measure the opportunities lying at the heart of rural regions. The results of the study showed that creativity in terms of traditions is the most important component in both cases while European villages have more opportunities and do not have the latent rural problems while Turkish villages are still suffering from the well-known rural problems that their capacity exists but it is very limited.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p451&r=ino
  31. By: M¬™ Jesus Santa Maria Beneyto; JosÈ Miguel Giner PÈrez
    Abstract: In the last decades numerous studies on industrial districts have proved how concentrations of small firms located in the same area and specialized in the production of the same products contribute to the competitiveness and the economic development of this type of areas. In the recent years several works have emphasized the innovative capacity generated in these areas, in which the proximity of related industries has sustained processes of generation and diffusion of knowledge. Specifically, the marshallian concept of industrial atmosphere, the continuous linkages among firms and the processes of cooperation and competition between firms and local agents are elements that can generate competitive advantages for the firms located inside an industrial district. In addition, these elements also promote the generation of specific knowledge and localized knowledge spillovers and innovative processes. In the plastics industry, the high level of competitiveness, the high level of diversification and the flexibility to attend the demand of different industrial sectors are factors that can explain the great innovation effort and the sector dynamism to search for new business opportunities. The aim of this work is to analyze the characteristics of the innovative plastics firms in Spain and to explore if the belonging to an industrial district promote the innovative processes and increase firms’ innovation performance. To achieve this objective, the results from a survey made it to a sample of plastics firms in Spain will be analyzed. In addition, this work investigates if there are differences in the characteristics of the innovative firms depending on their location inside or outside an industrial district. This empirical analysis contributes to enhance the knowledge about the innovative processes carried out in the industrial districts and provides evidence about the impact of the spatial agglomeration of specialized firms on the innovative capacity.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p588&r=ino
  32. By: Mercedes Rodriguez; JosÈ Antonio Camacho
    Abstract: There is a rich debate in the innovation literature about to what extent innovation has become an international (or globalised) phenomenon, or, on the contrary, it maintains its local/regional character. As Koschatzky (2001) notes, given the fact that knowledge is commonly tied to personal capabilities; it has a clear geographical component. In the case of knowledge-intensive services (KIS) most of analyses come to the same conclusion: distance is particularly relevant when knowledge (mainly of a tacit type) is diffused. Starting from this premise, a burgeoning literature on the contribution of those knowledge-intensive business services (KIBS) to regional innovation has emerged. Most of these papers adopt a national perspective, that is, analyse regions in a specific country. On the contrary, comparisons of regional features have been carried out in very few papers: Germany and the UK (Simmie and Strambach, 2006) or Germany and France (Muller and Zenker, 2001) are two examples. The objective of this paper is to take a step further and examine the distribution of knowledge-intensive services (KIS) in the European regions. For so doing we employ the data provided by the Regional Innovation Scoreboard (RIS) 2009. This database provides information on the innovation performance across 194 regions of the European Union and Norway. The methodology employed is known as spatial analysis and evaluates whether there are clusters in the location of KIS in the European regions, which involves three processes. First, to evaluate the existence of spatial autocorrelation by means of global statistics; the Moran’s I and the Geary’s C. Once verified the existence of positive spatial autocorrelation, it is possible to identify “clusters” of regions with high and low participations of KIS by using a local indicator of spatial autocorrelation (LISA). Finally, employing an econometric model, some potential explanatory factors for the concentration of KIS are examined. The results obtained support the hypothesis that KIS are spatially concentrated and confirm that spatial clusters are different in northern/central and southern/eastern regions. Moreover, a close relationship between location of KIS and regional innovation performance is found.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p277&r=ino
  33. By: Hiroyuki Shibusawa; Takafumi Sugawara
    Abstract: In this paper, the economic impacts of technological innovation, such as electric and hybrid vehicles, in the automobile industry in Japan are examined. The automobile industry has to develop environmentally friendly vehicles in the face of the global warming issue and the exhaustion problem of petroleum. The conventional automobiles with gasoline and diesel oil don’t meet the demands of present age. The new generation automobiles will become popular for coming several decades. The industrial structure will be affected by the appearance of new generation automobile. Especially, since the Japanese economy strongly depends on the automobile industry, the appearance of technological innovation in the automobile industry has an influence on the other industries and the industrial regions where the automobile firms are concentrated. In this study, we explore the economic impacts of shifting the production system in the automobile industry from the conventional automobile technology to an electric and hybrid vehicle technology using the national and multiregional input-output models.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p519&r=ino
  34. By: Michael Fritsch; Luis F. Medrano E.
    Abstract: We analyze the spatial diffusion of laser-technology in Germany during the early phase of development, between 1960 and 2005. Research in this new technological field began in a few larger centers and then spread to other regions. In the early years, a large firm of the electronics industry located in Munich played a dominating role. The intraregional diffusion of the knowledge in laser technology was particularly high in those regions which have started laser research rather early. There is also no significant effect of regional knowledge in the field of laser technology on the number of regional laser-producers, what may be due to the rather early development stage of the system where not many producers entered the market. Mobility of persons as well as co-publications and co-patents between institutions played only a minor role in the period under investigation.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p1099&r=ino
  35. By: Frank R. Lichtenberg
    Abstract: We examine the impact of pharmaceutical innovation, as measured by the vintage of prescription drugs used, on longevity, using longitudinal, country-level data on 30 developing and high-income countries during the period 2000-2009. We control for fixed country and year effects, real per capita income, the unemployment rate, mean years of schooling, the urbanization rate, real per capita health expenditure (public and private), the DPT immunization rate, HIV prevalence and tuberculosis incidence. Life expectancy at all ages and survival rates above age 25 increased faster in countries with larger increases in drug vintage. The increase in drug vintage was the only variable that was significantly related to all of these measures of longevity growth. Controlling for all of the other potential determinants of longevity did not reduce the vintage coefficient by more than 20%. Pharmaceutical innovation is estimated to have accounted for almost three-fourths of the 1.74-year increase in life expectancy at birth in the 30 countries in our sample between 2000 and 2009, and for about one third of the 9.1-year difference in life expectancy at birth in 2009 between the top 5 countries (ranked by drug vintage in 2009) and the bottom 5 countries (ranked by the same criterion).
    JEL: I12 J11 O33 O4
    Date: 2012–07
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:18235&r=ino
  36. By: Stein Ostbye; Sylvain Barde
    Abstract: Knowledge spillovers have recently been analysed by Barde (2009) and Ostbye (2010) in a spatial general equilibrium framework. Both studies lack explicit micro foundations for the spillovers – spillovers just take place and depend on firm density. The models must therefore be seen as reduced forms that may potentially be consistent with several structural interpretations. In this paper, the aim is to go some way in offering plausible micro foundations. We consider two alternatives: knowledge dissemination through knowledge embodied in labour moving between firms following Combes and Duranton (2006) and knowledge creation and dissemination through research and development (R&D) following d’Asprémont and Jacquemin (1988).
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa10p794&r=ino

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