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on Innovation |
| By: | Arts, Sam; Cassiman, Bruno; Veugelers, Reinhilde |
| Abstract: | We study the process of how firms access basic research and translate this into applied research. Drawing on basic research firms develop higher quality technologies and develop these technologies more intensely internally. Critical in this process are boundary crossing inventors – inventors that access basic research by active involvement in basic research projects and subsequent involvement in the development of more applied technologies. Nevertheless, these boundary crossing inventors need to be embedded in a complementary institutional relation between the firm and the organization developing the basic research to have an effect. We examine this process through IMEC, an important basic research organization in nano-electronics, with the explicit mission to bridge the gap between basic research done at universities and applied research developed by industry. |
| Keywords: | basic researcher; industry-science links; inventor; partnership; patents |
| JEL: | O33 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9215&r=ino |
| By: | Frank R. Lichtenberg |
| Abstract: | We investigate the effect of the vintage (year of FDA approval) of the prescription drugs used by an individual on his or her survival and medical expenditure. When we only control for age, sex, and interview year, we estimate that a one-year increase in drug vintage increases life expectancy by 0.52%. Controlling for other variables including activity limitations, race, education, family income as a percent of the poverty line, insurance coverage, Census region, BMI, smoking and over 100 medical conditions has virtually no effect on the estimate of the effect of drug vintage on life expectancy. Between 1996 and 2003, the mean vintage of prescription drugs increased by 6.6 years. This is estimated to have increased life expectancy of elderly Americans by 0.41-0.47 years. This suggests that not less than two-thirds of the 0.6-year increase in the life expectancy of elderly Americans during 1996-2003 was due to the increase in drug vintage. The 1996-2003 increase in drug vintage is also estimated to have increased annual drug expenditure per elderly American by $207, and annual total medical expenditure per elderly American by $218. This implies that the incremental cost-effectiveness ratio (cost per life-year gained) of pharmaceutical innovation was about $12,900. |
| JEL: | I12 J11 O33 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:18552&r=ino |
| By: | Ponzetto, Giacomo AM |
| Abstract: | This paper shows that intellectual property rights yield static efficiency gains, irrespective of their dynamic role in fostering innovation. I develop a property-rights model of firm organization with two dimensions of non-contractible investment: how much cost-minimizing effort to exert, and whether to direct it towards partnership or defection. In equilibrium, the first best can be attained if and only if property rights are as strong for intangible as for tangible assets. When IP rights are weaker, the structure of the firm is distorted and efficiency declines. An entrepreneur must either integrate her suppliers, which induces a fall in their investment; or else risk their defection, which entails a waste of her human capital. My model predicts greater prevalence of vertical integration in response to weaker IP rights. It also predicts a switch from integration to outsourcing over the product cycle. Both empirical predictions are consistent with evidence on the organization of multinational companies. As a normative implication, I find that IP rights should be strong but narrowly defined, to protect one business opportunity without holding up its potential spin-offs. |
| Keywords: | Hold-up problem; Intellectual property; Licensing; Organization; Outsourcing; Product cycle; Property rights; Spin-off; Vertical integration |
| JEL: | D23 D86 K11 L22 L24 O34 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9212&r=ino |
| By: | smruti, Smruti Ranjan Behera |
| Abstract: | This paper examines the spillover effect of foreign direct investment (FDI) and determinant of FDI across Indian manufacturing industries. The result, based on two-equation model that allows for the two-way link between labor productivity of locally owned industries and foreign presence provide evidence that foreign presence brings new channels of knowledge and technology spillover to domestic industrial firms. We find that intermediate factors like R&D intensity and technology import intensity can impact positively the productivity of domestic firms. Furthermore, we find that bigger market size and highly productive domestic sectors are likely to attract more foreign capital into Indian industries. |
| Keywords: | Foreign Direct Investment; Technology Spillover; Manufacturing; Panel Cointegration; Unit Root Tests |
| JEL: | F30 O32 C33 L60 |
| Date: | 2012–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42178&r=ino |
| By: | Jong-Hee Hahn (School of Economics, Yonsei University); Jin-Hyuk Kim |
| Abstract: | In network industries, we often observe frequent upgrades of existing products as well as delayed introductions of new products. In order to explain these contrasting phenomena, this paper examines a durable-good monopolist's incentive for R&D in- vestment in new product development in a market with network effects. We show that if the network effect is strong the monopolist underinvests in R&D compared to the commitment level, whereas overinvestment occurs when the network effect is weak. The monopolist also chooses full intergenerational compatibility between products. We then extend the analysis to the cases of potential entry and successive innovations, and examine how the results change in these extensions. |
| Keywords: | Planned Obsolescence, Network Effects, Vaporware |
| JEL: | L12 L15 M21 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:rwp-201243&r=ino |
| By: | Volkova N.N. |
| Date: | 2012–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:nos:taxcti:article_5&r=ino |
| By: | Azevedo, Susana; Cudney, Elizabeth A.; Grilo, António; Carvalho, Helena; Cruz-Machado, V. |
| Abstract: | This paper aims to study the influence of eco-innovation practices on eco-efficiency of business, which embraces environmental and economic performance. Four hypotheses are drawn up based on the existing literature in green supply chain and considering the business innovation. A survey questionnaire was used to collect data on a sample of USA and Portuguese innovative organizations. Multivariate statistics and Partial Least Squares (PLS) path modelling techniques were used to test the proposed hypothesis. The statistical analysis allows to conclude that there are differences between the eco-innovation practices deployed by organizations belonging to different sectors and with different sizes. Also, it was found that the level of implementation of the different eco-innovation practices by organizations influence the eco-efficiency of businesses. |
| Keywords: | Eco-innovation; eco-efficiency; economic performance; environmental performance |
| JEL: | C14 C12 C42 M21 |
| Date: | 2012–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:42704&r=ino |
| By: | Nuno Araújo (Centro de Apoio Tecnológico à Indústria Metalomecânica); Leonardo Costa (Faculdade de Economia e Gestão - Universidade Católica Portuguesa, Porto) |
| Abstract: | We view innovation as a productive process, with outputs and inputs. We aim at compare the productivity of innovation across the twenty seven Member States of the European Union (EU-27), having a particular focus on Portugal. The data on inputs and outputs of innovation were collected from the Innovation Union Scoreboard 2010 report and covers the EU-27 Member States, from 2006 to 2010. The Total Factor Productivity index (TFP index) was used as the technique for data analysis. The choice of this technique was mainly determined by its flexibility and by data constraints. Two types of TFP indexes were computed: i) TFPt (time), which compares the productivity of innovation in each Member State with its productivity in a base year; ii) TFPs (space), which compares the productivity of innovation in each Member State with the productivity of the EU-27 average. Results show larger TFPs differences across Member States than TFPt differences. Concerning TFPt, there is a reduction of productivity of most of the Member States during the time length, which can be explained by the recent world financial crisis. This was the case of Portugal, where average TFPt in the time length is slightly below 1. The seven Member States that did not lose any productivity are mostly from Eastern Europe, Member Sates which have entered the European Union and accede to its structural funds more recently. Concerning TFPs, Portugal presents average TFPs well above 1. The Portuguese average TFPs value is close to the one of Germany and higher than the one of Sweden. The Innovation Union Scoreboard 2010 report classifies Portugal as Moderate innovator and Germany and Sweden as innovation leaders. We conclude that productivity of innovation in Portugal is similar to the one of Germany and higher than the one of Sweden. Differences between Portugal and those Member States, such as the ones reported in the Innovation Union Scoreboard 2010, can be explained by the fact of Portugal having fewer resources allocated to innovation and thus fewer outputs from innovation than Germany or Sweden have. |
| Keywords: | TFP index, productivity, innovation |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:cap:wpaper:052012&r=ino |
| By: | Riccardo Crescenzi; Carlo Pietrobelli; Roberta Rabellotti |
| Abstract: | This paper investigates the geography of multinational corporations’ investments in the EU regions. The ‘traditional’ sources of location advantages (i.e. agglomeration economies, market access and labour market conditions) are considered together with innovation and socio-institutional drivers of investments, captured by means of regional “social filter” conditions. The introduction of a wider set of attraction factors makes is possible to empirically assess the different role played by such advantages in the location decision of investments at different stages of the value chain and disentangle the differential role of national vs. local and regional factors. The empirical analysis covers the EU-25 regions and suggests that regional-socio economic conditions are crucially important for an understanding of the location investment decisions in the most sophisticated knowledge-intensive stages of the value chain. |
| Keywords: | Innovation, Multinationals, Systems of Innovation, Value Chains, Regions, European Union |
| JEL: | F21 F23 O33 R12 R58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:eiq:eileqs:53&r=ino |
| By: | Jakub Growiec (Warsaw School of Economics - Institut of Econometrics); Ingmar Schumacher (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X) |
| Abstract: | We derive a R&D-based growth model where the rate of technological progress depends, inter alia, on the amount of technological opportunity. Incremental innovations provide direct increases to the knowledge stock but they reduce technological opportunity and thus the potential for further improvements. Technological opportunity is renewed by radical innovations, which have no direct impact on factor productivity. We study both the market equilibrium and the social planner allocation in this economy. Investigating the model for its implications on economic growth we find: (i) in the long run, a balanced growth path requires that the returns to radical innovations are at least as large as those of the incremental ones; (ii) the transition need not be monotonic. We show under which conditions our model generates endogenous cycles via complex dynamics without resorting to uncertainty; (iii) the calibrated model exhibits substantial quantitative differences between the market outcome and the social planner allocation. |
| Date: | 2012–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00753532&r=ino |