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on Innovation |
| By: | Furukawa, Yuichi |
| Abstract: | By allowing for investment activities by research and development (R&D) firms to prevent product obsolescence, we show that if legal patent protection is too strong, a higher R&D subsidy rate delivers insufficient investments for survival in the R&D sector, depressing innovation and growth in the long run. |
| Keywords: | Firm survival, R&D subsidy, patent breadth, endogenous growth |
| JEL: | O31 O34 O41 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47728&r=ino |
| By: | Baraldi, Anna Laura; Cantabene, Claudia; Perani, Giulio |
| Abstract: | Starting from the failure of the R&D-patents traditional relationship, when time-series and/or within industry dimensions are included in the empirical analysis, the present work tries to contribute to the empirical literature in two directions. Firstly, it perform a Granger causality test on the theoretical presumption of a reverse patents→R&D link as an explanation of the failure of the traditional relationship. Second, assuming the reverse patents-R&D causality, we test and interpret the lag structure of such a relationship as showing the effective patent life which firms expect in the two Schumpeterian patterns of innovations they belong to. To the light of the effective patent life, we offer a further explanation of innovation persistence which overturns the findings of the existing literature on persistence. |
| Keywords: | R&D, patents, innovation persistence, Granger causality |
| JEL: | C2 O3 O30 |
| Date: | 2013–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47684&r=ino |
| By: | Anna Zaytseva (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Olga Shuvalova (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Dirk Meissner (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics) |
| Abstract: | Innovations are commonly seen as resulting from the commercialization of new ideas and technological goods by dedicated organizations, especially firms. This conception is reflected in a producer-oriented approach to science, technology and innovation policy-making (STI). However a new understanding of the role of users within innovation processes is gradually taking shape, with profound policy implications. User innovations are often not based on technological improvement or R&D and remain largely under-estimated. Although there are many case studies of user innovators at the industry level, the role of users is not captured by general statistics on innovation. Up to now the only exception is the empirical evidence-based study of user innovation carried out in the UK in 2009. Recently it was complemented by empirical data from the USA and Japan. The present article aims to contribute to closing the gap of empirical data on user engagement into innovation activities at cross-country level. The analysis is based on the results from a national survey carried out in Russia in 2011. The findings contribute to the better understanding of user innovators profile and of the factors which underpin user innovator activities in the context of emerging economies. The article is organized as follows. The first section reviews the relevant literature on the user innovation concept and the main features of user innovations as compared to producer-generated innovations, as well as on the measurement of user innovators. The second section presents the research methodology and the main empirical results. Finally, the paper discusses some of main analytical and policy implications of the empirical findings. |
| Keywords: | User Innovation, Innovation Sources, Open Innovation, Innovation Management, Demand Driven Innovation. |
| JEL: | L21 M10 M14 M31 O21 O32 O33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:wp-brp-08-sti-2013&r=ino |
| By: | Chiara Franco (Department of International Economics, Institutions and Development, Catholic University of the Sacred Heart of Milan); Fabio Pieri (Departamento de Estructura Economica (Economia Aplicada II), Universitat de Valencia); Francesco Venturini (Department of Economics, Finance and Statistics, University of Perugia) |
| Abstract: | We study the role of upstream product market regulation (PMR) on innovation efficiency. By estimating a knowledge production function for a large sample of OECD industries through a stochastic frontier analysis, we find that service regulation remarkably reduces R&D efficiency in the manufacturing sector. These results are robust to controlling for the institutional setting of the technology, the labour and the financial market, as well as to various forms of heterogeneity such as, for instance, non-linearities in the effect of PMR. The marginal impact of upstream regulation is higher in less regulated economies indicating that large improvements in R&D efficiency cannot be achieved at the earlier stages of deregulation. We quantify total gains in R&D efficiency and patenting that could be obtained by late reforming countries by liberalizing the product market. |
| Keywords: | R&D, knowledge production, eciency, product market regulation |
| JEL: | L5 L6 O3 O5 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1313&r=ino |
| By: | Brancati, Emanuele |
| Abstract: | Financial frictions may represent a severe obstacle for firms' innovative activity. This paper shows the existence and quantifies the effect of binding financial constraints on the innovation propensity of Italian companies. Once provided a rich baseline specification for innovation, I analyze the impact of financial constraints by exploiting a survey-based direct measure, enriched with a credit-score-index estimated ad hoc on a representative sample of confidential local bank ratings. A recursive bivariate probit model is employed to estimate the probability of undertaking innovative projects conditional on the likelihood of facing financial constraints. This econometric strategy accounts for possible correlations between these two features. My results show firms that are more likely to suffer from financial problems to have a probability of innovation that is 34% lower than financially-sound companies. Furthermore, instrumenting innovation with R&D into the financial-status equation, I control for a feedback effect of the innovation propensity on the financial status. As predicted by economic theory, most dynamic firms are shown to suffer from greater financial problems. This in turn is reflected onto a stronger depressive effect of financial constraints on innovation (-42%). This impact is shown to be sizable only for those firms with a higher ex ante probability to innovate, not being driven by a sub-group of most distressed companies. Finally, the last section deepens the role of firm size in alleviating the effects of financial frictions on a breakdown of three definitions of innovation. Relevant differences are found, especially for product and process--innovations. |
| Keywords: | Innovation; firm performance; financial constraints; banks; ratings |
| JEL: | G21 L25 O31 |
| Date: | 2013–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47750&r=ino |
| By: | Agustí Segarra (Universitat Rovira i Virgili & CREIP); José García-Quevedo (Universitat de Barcelona & IEB); Mercedes Teruel (Universitat Rovira i Virgili & CREIP) |
| Abstract: | Theoretical and empirical approaches have stressed the existence of financial constraints in innovative activities of firms. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project. Although a large number of innovation projects are abandoned before their completion, the empirical evidence has focused on the determinants of innovation while failed projects have received little attention. Our analysis differentiates between internal and external barriers on the probability of abandoning a project and we examine whether the effects are different depending on the stage of the innovation process. In the empirical analysis carried out for a panel data of potential innovative Spanish firms for the period 2004-2010, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that financial constraints most affect the probability of abandoning an innovation project during the concept stage and that low-technological manufacturing and non-KIS service sectors are more sensitive to financial constraints. |
| Keywords: | Barriers to innovation, failure of innovation projects, financial constraints |
| JEL: | O31 D21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-11&r=ino |
| By: | Macneill Stewart; Hugues Jeannerat (Group of Research in Territorial Economy GRET, Faculty of Letters and Human Sciences, University of Neuchâtel, Switzerland) |
| Abstract: | At regional level a number of models, such as innovation systems and cluster have been developed which have been influential on this policy support. Policy initiatives based around these models are firmly rooted in a technological model of innovation and a standard market situation which takes little account of the socio-economic environment and the potential for downstream based innovation. Here we present a case study of the automotive industry in the UK West Midlands region where we consider innovation networks and knowledge developments associated with a shift from the standard market, largely prevalent in the sector, towards a status based market. We observe how, in the status market, composite knowledge networking and interaction with consumers is integral to the innovation process. |
| Keywords: | Territorial knowledge dynamics, production market, status market, territorial innovation models, EURODITE |
| JEL: | D71 D81 G1 G23 Q01 R11 R51 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:nct:wpaper:01-13&r=ino |
| By: | ICHIDA Toshihiro |
| Abstract: | This paper investigates the interaction between innovation and imitation costs for heterogeneous ideas (industries). It analyzes the effect of various patent-related policies under the common patent length across different industries. It also looks at a policy that will strengthen trade secrets such as the Soleau envelope policy. Under the common term of patent with moderate assumption about the joint distribution of costs, the model predicts the existence of imitating products which are successfully invented around the original patent. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:13054&r=ino |
| By: | Jean Paul Simon |
| Abstract: | The Information Society Unit of the JRC-IPTS has been investigating the Information and Communication Technology (ICT) sector and its R&D in Asia for several years as an extension of the PREDICT research project. The workshop was organised as part of this on-going research to gather the most recent information on the growing role of BRICs Countries in the IT sector. |
| Keywords: | BRIC, Information and Communication Technologies, ICT industry |
| JEL: | O57 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc80745&r=ino |
| By: | Nunes, Sérgio; Lopes, Raul |
| Abstract: | The economic and financial crisis has brought firms, territories and countries before a set of restrictions to a greater or lesser extent, function as the conditioners of economic activity for several agents, also affecting their activities associated with the development of its innovation process. Innovation is a highly complex process, very contingent and onerously demanding. With innovation as a key source of high economic performance, it is important to understand to what extent the current economic crisis is to constrain the innovation of firms and thus, the process of wealth creation. The main objective of this paper is to show that the economic crisis has a different effect on firms, depending on the type of innovation strategies adopted. For this, we identify some relevant relations between the economic crisis and the critical factors of the innovation process, namely knowledge networks and context costs, special dimensions that we associate with the efficiency of institutional and relational capital. These objectives will be achieved using several statistical and econometric techniques, with information found in a database obtained through a business survey. Our main results show some interesting findings: first we find evidence that the most dynamic firms recognize less impact of the economic crisis. Second, we find empirical evidence that the knowledge networks can be taken as a resilient mechanism of firms to manage the negative impacts of the crisis. Finally, firms that recognize more importance to the reduction of context cost seems more resilient to economic crisis. We finish with some recommendations for regional policy. |
| Keywords: | knowledge networks, innovation process, economic crisis, context costs, territorial resilience, regional policy |
| JEL: | L25 O31 O33 O43 O52 R58 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47715&r=ino |
| By: | Christian Le Bas (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon); Nicolas Poussing (CEPS/INSTEAD - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development) |
| Abstract: | Despite the increased strategic importance of environmental innovation on the one hand and corporate social responsibility on the other, there are still few studies that show firm voluntary measures create a primary determinant of environmental changes. First, we clarify the meaning of voluntary measures and CSR. Second, we utilize a survey carried out in Luxemburg on firm CSR practices jointly with the Community Innovation Survey 2008 (CIS 2008). We merge them and show through the estimation of a probit model that CSR is an important factor that explains environmental innovation. Thanks to a question from CIS 2008 we can contribute to the literature by developing a new indicator measuring the scale of the positive impacts on the environment coming from the firm technological innovation capacity. A negative binomial regression enables us to estimate a significant and positive effect of CSR and firm value on this scale. |
| Keywords: | environmental innovation; corporate social responsibility; Community Innovation Survey 2008; innovation impacts on the environment |
| Date: | 2013–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00838005&r=ino |
| By: | Marina Doroshenko (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Ian Miles (University of Manchester, Research Laboratory for Economics of Innovation, Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Dmitri Vinogradov (Essex Business School, University of Essex) |
| Abstract: | Knowledge Intensive Business Services (KIBS) are widely argued to be important actors in innovation systems. They are active both innovating themselves, and by providing their clients with important knowledge and learning opportunities. This study uses survey data to investigate the mechanisms of knowledge transfer and innovativeness improvement through the provision of KIBS. The empirical core of the paper is a set of Russian surveys of KIBS and their clients: KIBS are a fairly new phenomenon in Russia, so this provides an opportunity to contrast KIBS supplier-client relationships featuring more and less experienced customers. Many of the KIBS firms’ services are highly tailored to customer specificities, and we consider how far this is minor customisation and how far novel products (and thus potentially product innovations) are involved. These services typically involve KIBS consumers into a coproduction process, where both the formal supplier and the formal user of the service are engaged together in service production. Knowledge transfers through learning-by-doing in such cases affect customers' propensity to innovate and improve their absorptive capacity. The paper concludes that the generation of innovations through KIBS may well be a self-sustaining process. In this process, service providers are incentivised to engage in service innovations by more innovative customers’ demand for highly individualised services. In turn, the process stimulates the innovativeness of customers, as they engage in learning-by-doing through coproduction. |
| Keywords: | service innovations, customised service production, knowledge-intensive business services (KIBS), knowledge spill-over, learning-by-doing. |
| JEL: | D83 L84 O32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp12sti2013&r=ino |
| By: | Andrea Filippetti (Institute for the Study of Regionalism, Federalism and Self-Government); Marion Frenz (Department of Management, Birkbeck University of London); Grazia Ietto-Gillies (Centre for Innovation Management Research, Birkbeck University of London) |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:img:wpaper:10&r=ino |
| By: | Evgeniy Kutsenko (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Dirk Meissner (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics) |
| Abstract: | Cluster policy is recognized as one of the pivotal elements of state-of-art innovation policy. State support for clusters helps to take into account regional peculiarities and engage the most innovative local actors into the process of innovation policy drafting and implementation. Cluster development stimulates trust building and enhances knowledge spillovers among different organizations in the region. Finally the cluster approach makes innovation policy more systemic by coordinating measures aimed to support different actors (large companies, SMEs, universities, venture funds) towards comprehensive efforts linking the most perspective localized industries (ecosystems). The development of clusters has been determined as one of the priorities of the Strategy of Innovative Development of the Russian Federation for the period to 2020 which was confirmed end 2010. In the framework of this Strategy the first national cluster program was launched in 2012. The paper is devoted to the detailed description of the background of the national cluster program in Russia and its first phase – the selection of the pilot innovative clusters – which was implemented last year. Special attention is given to the comparison of planned design of the Russian cluster program with such widely known cluster programs as the BioRegio, InnoRegio and Les poles de competitivite. The similarities and peculiarities of the Russian program have been defined that allowed to identify several most significant areas for improvement. |
| Keywords: | Clusters, knowledge spillovers, cluster policy, innovation policy. |
| JEL: | O14 O17 O25 O38 O43 P16 R11 R53 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:wp-brp-11-sti-2013&r=ino |
| By: | Ekaterina Khramova (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Dirk Meissner (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics); Galina Sagieva (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics) |
| Abstract: | Patent data provide a rich set of information which can be used for comparative studies and trend analysis. The paper presents a systematic overview of the most appropriate tools methodologies that are available for determining the technological specialization of countries. Such analysis includes a discussion of databases, approaches, and indexes appropriate for this kind of analysis. This paper discusses different indicators of technological specialisation, concentration, and patent quality are analysed, including Revealed Technological Advantage (RTA) index, patent share, C20 concentration index, and Gini concentration index. the main available patent databases, especially those with open access, and summarizes arguments for the study of technological specialisation based on assignee and inventor patent data. Also the limits and potentials of the statistics on resident / nonresident patenting on internal and external markets are discussed in the paper. |
| Keywords: | Revealed Technological Advantage (RTA) index, patent share, C20 concentration index, Gini concentration index, country technological position. |
| JEL: | O31 O32 O33 O34 O47 O57 L24 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:wp-brp-09-sti-2013&r=ino |
| By: | Christian Livi; Hugues Jeannerat; Olivier Crevoisier (Group of Research in Territorial Economy GRET, Faculty of Letters and Human Sciences, University of Neuchâtel, Switzerland) |
| Abstract: | Various territorial innovation models have been developed since the 1980s, offering a new perspective on how certain regional production systems have grown out of the innovation and training processes specific to certain local milieus. These models reflect a process of economic globalisation characterised by the increased mobility of goods and services but limited by those production factors which underpin innovation such as knowledge and innovation capital. This article reconsiders this approach, taking into account the new equally increased mobility of those cognitive and financial resources. It also seeks to understand how innovation embeds in a broader valuation system. Taking as its case study western Switzerland’s photovoltaic industry, the concept of the ‘innovative milieu’ is re-examined in the context of ever-increasing economic, political and social interest in sustainable development. Finally, in this revisited approach to territorial innovations, the use of the term ‘multi-local valuation milieu’ is proposed. |
| Keywords: | Territorial innovation models, Innovative milieu, Photovoltaic industry, Regional economy, Valuation, Multi-local valuation milieu |
| JEL: | D71 D81 G1 G23 Q01 R11 R51 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:nct:wpaper:04-13&r=ino |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Ronney Aamoucke (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | Based on detailed information about the regional knowledge base, particularly about universities, we find that regional public research and education have a strong positive impact on new business formation in innovative industries but not in industries classified as non-innovative. Measures for the presence and size of public academic institutions have more of an effect on the formation of innovative new businesses than indicators that reflect the quality of these institutions. We find relatively weak evidence for interregional spillovers of these effects. Our results clearly demonstrate the importance of localized knowledge and, especially, of public research for the emergence of innovative new businesses. |
| Keywords: | New business formation, innovative start-ups, universities, regional knowledge |
| JEL: | L26 L60 L80 O18 R12 R30 |
| Date: | 2013–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2013-026&r=ino |
| By: | Hugues Jeannerat; Leila Kebir (Group of Research in Territorial Economy GRET, Faculty of Letters and Human Sciences, University of Neuchâtel, Switzerland) |
| Abstract: | In their attempt to explain in ever more in-depth manner learning processes at the roots of economic change, territorial innovation models (TIMs) have remained centred on production. Consumption is mainly regarded as the expression of an abstract demand relayed by exogenous market mechanisms. Building on a socio-institutional approach of market, the article conceptualises an ‘economic system’ in which knowledge is analysed as a resource constructed and valued through the market co-evolution of a production and a consumption system. Drawing upon various case studies, four particular economic systems are depicted and contrasted with regard to different territorial knowledge dynamics (TKDs). |
| Keywords: | Territorial knowledge dynamics, resources, production, consumption, market, EURODITE. |
| JEL: | D71 D81 G1 G23 Q01 R11 R51 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:nct:wpaper:02-12&r=ino |
| By: | Peeters, T.J.G. (Tilburg University) |
| Abstract: | Abstract: With rapidly shifting technological frontiers, innovative organizations cannot rely solely on internally generated knowledge and technologies anymore. Therefore, externally developed knowledge and technologies are getting more and more important in the development of new products. Not surprisingly, the search and use of external knowledge by innovating organizations is at the locus of scholarly attention. However, the literature has not yet been able to fully map its antecedents and consequences. To date, we only have a limited understanding of how external knowledge is used in the development of new products, especially in relation to internally generated knowledge. Furthermore, we do not have a clear picture yet of how successful organizations are in searching external knowledge. Drawing on analyses of two distinct datasets, this dissertation presents three interrelated studies that aim to advance our understanding of how external knowledge can be successfully searched and used in new product development. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ner:tilbur:urn:nbn:nl:ui:12-5906731&r=ino |
| By: | Doepke, Matthias (Northwestern University); Zilibotti, Fabrizio (University of Zurich) |
| Abstract: | We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile. As a consequence, the occupational choice of entrepreneurship hinges on risk tolerance and patience. Parents expecting their children to become entrepreneurs have an incentive to instill these two values in their children. Cultural transmission is Beckerian, i.e., parents are driven by the desire to maximize their children's happiness. We also consider, in an extension, a paternalistic motive for preference transmission. The growth rate of the economy depends on the fraction of the population choosing an entrepreneurial career. How many entrepreneurs there are in a society hinges, in turn, on parental investments in children's patience and risk tolerance. There can be multiple balanced-growth paths, where in faster-growing countries more people exhibit an "entrepreneurial spirit." We discuss applications of models of endogenous preferences to the analysis of socio-economic transformations, such as the British Industrial Revolution. We also discuss empirical studies documenting the importance of culture and preference heterogeneity for economic growth. |
| Keywords: | culture, entrepreneurship, innovation, economic growth, endogenous preferences, intergenerational preference transmission |
| JEL: | J20 O10 O40 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7459&r=ino |