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on Innovation |
| By: | Ufuk Akcigit (Department of Economics, University of Pennsylvania and NBER); Douglas Hanley (Department of Economics, University of Pennsylvania); Nicolas Serrano-Velarde (Bocconi University and IGIER) |
| Abstract: | This paper introduces a model of endogenous growth through basic and applied research. Basic research differs from applied research in the nature and the magnitude of the generated spillovers. We propose a novel way of empirically identifying these spillovers and embed them in a general equilibrium framework with private firms and a public research sector. After characterizing the equilibrium, we estimate our model using micro-level data on research expenditures by French firms. Our key finding is that standard R&D policies can accentuate the dynamic misallocation in the economy. We also find a strong complementarity between the property rights of basic research and the optimal funding of public research. |
| Keywords: | Innovation, basic research, applied research, research and development, government spending, endogenous growth, spillover |
| JEL: | O31 O38 O40 L78 |
| Date: | 2013–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:13-051&r=ino |
| By: | Márcia Rapini (Cedeplar-UFMG) |
| Abstract: | This paper analyzes the pattern of financing R & D and innovation in Brazilian firms. For this data from Brazilian Innovation Survey (PINTEC) are used in the years 1998-2000, 2001-2003, 2003-2005. The PINTEC data show that, for all firms, financing R & D and innovation is mostly done with their own resources. Moreover, the government support for businesses is not significant being concentrated in financing machinery and equipment acquisition. The micro data estimations suggest that for 2003 and 2005 Surveys, is less likely to innovate in the presence of financial barriers. Multivariate analysis points to a distinct pattern of response of innovative and non-innovative firms, suggesting the need for a specific set of funding instruments. |
| Keywords: | Funding, innovation, PINTEC, Brazil |
| JEL: | O31 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td497&r=ino |
| By: | Jörg Bühnemann (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Steffen Burchhardt (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) |
| Abstract: | Knowledge-based innovations are a main driver for economic development of countries and a key factor in global competition. Most industrial countries aim to strengthen their innovative capacity breadthways. Beside large firms especially universities have the necessary potential (infrastructure and knowledge) to be regional drivers of innovations. They develop innovative ideas on their own and even more important support R&D-activities of the local economy. This paper offers a methodological framework for exploring the potential for commercialization within universities. The importance of inventions, publications and third-party funds as objective indicators is highlighted, and an additive value function is introduced to measure the potential for commercialization. Based on expert interviews at a technical university the required weights for all considered indicators are exemplarily identified. By applying different models to aggregate expert weights robust rankings of university units with respect to percapita and overall potential for commercialization were found. Based on these measures a central transfer unit could be able to allocate transfer-oriented resources properly. The specified scoring approach is a first step towards an EU-requested evaluation system. |
| Keywords: | knowledge transfer, potential for commercialization, patent, invention, university |
| JEL: | I23 O31 D81 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:130014&r=ino |
| By: | Draca, Mirko (University of Warwick) |
| Abstract: | US government spending since World War II has been characterized by large investments in defense related goods, services and R&D. In turn, this means that the Department of Defense (DoD) has had a large role in funding corporate innovation in the US. This paper looks at the impact of military procurement spending on corporate innovation among publicly traded firms for the period 1966-2003. The study utilizes a major database of detailed, historical procurement contracts for all Department of Defense (DoD) prime contracts since 1966. Product-level spending shifts – chiefly centered around the Reagan defense build-up of the 1980s – are used as a source of exogenous variation in firm-level procurement receipts. Estimates indicate that defense procurement has a positive absolute impact on patenting and R&D investment, with an elasticity of approximately 0.07 across both measures of innovation. In terms of magnitudes, the contribution of defense procurement to innovation peaked during the early Reagan build-up, accounting for 11.4% of the total change in patenting intensity and 6.5% for R&D. This compares to a defense sector share in output of around 4%. The later defense cutbacks under Bush Senior and Clinton then curbed the growth in technological intensity by around 2%. |
| Keywords: | Regan, Military, procurement |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:warwcg:167&r=ino |
| By: | Dev Nathan; Sandip Sarkar |
| Abstract: | Abstract This paper deals with the role of innovation in upgrading within global production networks (GPNs). Because of the distribution of production segments across firms and countries, there is also a distribution of production knowledge. The paper looks at some ways of upgrading by developing economy firms – the roles of distributed knowledge, reverse innovation and new types of innovation, based on frugal engineering in emerging economies. Process changes could also be innovation, though, unlike product innovations, they are easily copied and spread. The paper points out the limits of current reverse innovation and also asks whether the separation of manufacturing from design has increased the speed of innovation. Before concluding, the paper looks at innovation in terms of the ‘adjacent possible’ in evolutionary analysis. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:bwp:bwppap:ctg-2013-23&r=ino |
| By: | Markus Simeth (Ecole Polytechnique Fédérale de Lausanne (EPFL), College of Management, Switzerland); Julio Raffo (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland) |
| Abstract: | Whereas recent scholarly research has provided many insights about universities engaging in commercial activities, there is still little empirical evidence regarding the opposite phenomenon of companies disseminating scientific knowledge. Our paper aims to fill this gap and explores the motivations of firms that disclose research outcomes in a scientific format. Besides considering an internal firm dimension, we focus particularly on knowledge sourcing from academic institutions and the appropriability regime using a cost-benefit framework. We conduct an econometric analysis with firm-level data from the fourth edition of the French Community Innovation Survey (CIS4) and matched scientific publications for a sample of 2,512 R&D performing firms from all manufacturing sectors. The analysis provides evidence that the access to important scientific knowledge imposes the adoption of academic disclosure principles, whereas the mere existence of collaborative links with academic institutions is not a strong predictor. Furthermore, the results suggest that overall industry conditions are influential in shaping the cost-benefit rationale of firms with respect to scientific disclosure. |
| Keywords: | R&D, Industrial Science, Knowledge Disclosure, University-Industry collaboration |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:06&r=ino |
| By: | Asongu Simplice (Yaoundé/Cameroun); Antonio R. Andrés (Ifrane, Morocco) |
| Abstract: | This paper employs a recent methodological innovation on intellectual property rights (IPRs) harmonization to project global timelines for common policies against software piracy. The findings on 99 countries are premised on 15 fundamental characteristics of software piracy based on income-levels (high-income, lower-middle-income, upper-middle-income and low-income), legal-origins (English common-law, French civil-law, German civil-law and, Scandinavian civil-law) and, regional proximity (South Asia, Europe & Central Asia, East Asia & the Pacific, Middle East & North Africa, Latin America & the Caribbean and, Sub-Saharan Africa). The results broadly show that a feasible horizon for the harmonization of blanket policies ranges from 4 to 10 years. |
| Keywords: | Software piracy; Intellectual property rights; Panel data; Convergence |
| JEL: | F42 K42 O34 O38 O57 |
| Date: | 2013–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:13/010&r=ino |
| By: | Les Oxley (University of Waikato); Shangqin Hong (University of Canterbury); Philip McCann (University of Groningen) |
| Abstract: | The economic performance of the New Zealand economy is something of an enigma. Although ranked number one (of 144 countries) for four important 'growth fundamentals' New Zealand is 'middle of the pack' when it comes to economic growth, productivity and innovation. So what is missing in this story of New Zealand performance? Using three iterations (2005, 2007 and 2009) of the Business Operations Survey, the paper seeks to answer the question using a bivariate probit regression (biprobit) approach applied to samples in excess of 2,000 unit record observations of New Zealand firms. The results suggest that factors such as firm size, high perceived quality product, investment/R&D capability, major technology change, application of formal IP protection and new export markets are systematically and positively related to innovation; while many external issues such as those related to geography, market structure, business environment, appear to have little influence. At the firm level, innovations in New Zealand are highly dependent on the firms’ internal ability to develop new technologies and market demand. (Small) size does matter in New Zealand where ultimately government may need to be involved to maintain a viable (minimum) scale for domestic R&D. |
| Keywords: | innovation; New Zealand Business Operations Survey (BOS); new economic geography (NEG). |
| Date: | 2013–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:13/13&r=ino |
| By: | Benjamin Montmartin (GREDEG CNRS; University of Nice-Sophia Antipolis, France); Nadine Massard (GATE Lyon Saint-Etienne; Jean Monnet University, Saint-Etienne, France) |
| Abstract: | Many economists have long held that market failures create a gap between social and private returns to Research and Development (R&D), thereby limiting private incentives to invest in R&D. However, this common belief that firms significantly underinvest in R&D is increasingly being challenged, leading the rationale behind public support for private R&D to be questioned. In this paper, we attempt to clarify the perspectives of two sources: the theoretical literature on endogenous growth, and its recent developments in integrating a geographical dimension, and the empirical literature that measures the social returns to R&D in relation to the private returns. Ultimately, we are able to clearly distinguish among different types of market failures and compare their relative impact on the gap between the private and social returns to R&D. Two main conclusions are reached. First, systematic firm underinvestment in R&D is not demonstrated. Second, even though instances of underinvestment do occur, they are mainly explained by surplus appropriability problems rather than by knowledge externalities. This suggests the need for a new policy mix that employs more demand-oriented instruments and is more concentrated on identifying efficient allocations among activities rather than merely increasing global private R&D investment. |
| Keywords: | Returns to R&D, market failures, R&D based growth, economic geography, R&D policy |
| JEL: | E61 O41 O38 R11 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2013-34&r=ino |
| By: | Vladimir Komarov (Russian Presidential Academy of National Economy and Public Administration); Pavel Pavlov (Russian Presidential Academy of National Economy and Public Administration); V. Kotsubinskiy (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The paper presents a comprehensive analysis of the institutional barriers innovative development of Russia's economy. We consider the role of institutions in innovative development from the standpoint of modern theories of innovation, analyzed the impact of informal institutions on innovation dynamics explored the possibility of implementing institutional changes as a mechanism removal of institutional barriers. Finally, conclusions are offered for Russian innovation policy in the medium term. |
| Keywords: | institutional barriers to innovative development of Russian economy |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:37&r=ino |
| By: | Romaric Servajean-Hilst (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS : UMR7176) |
| Abstract: | This paper presents a framework for the dyadic study of inter-firm innovation cooperation, beyond the boundaries of collaborative innovation projects. In order to understand how two firms can maximize the performance of their relationship, we performed a literature review combined with interviews with practitioners. The result of this study is a model associated with propositions on the interactions between its different elements, which are (i) the governance of the relationship, (ii) its performance, (iii) its level of development and (iv) the degree of innovation of the collaborative projects. This paper concludes by suggesting future researches and stating implications for managers. |
| Keywords: | inter-firm innovation cooperation; governance; cooperation relationship development and performance |
| Date: | 2013–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00805560&r=ino |
| By: | Ernest Miguelez (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland) |
| Abstract: | The goal of this paper is to assess the influence of spatial mobility of knowledge workers on the formation of ties of scientific and industrial collaboration across European regions. Co-location has been traditionally invoked to ease formal collaboration between individuals and firms, since tie formation costs increase with physical distance between partners. In some instances, highly-skilled actors might become mobile and bridge regional networks across separate locations. This paper estimates a fixed effects logit model to ascertain precisely whether there exists a ‘previous co-location premium’ in the formation of networks across European regions. |
| Keywords: | inventors’ mobility, technological collaborations, co-location, European regions, panel data |
| JEL: | C8 J61 O31 O33 R0 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:07&r=ino |
| By: | EDAMURA Kazuma; OKADA Yosuke |
| Abstract: | Based upon the standard model of Grilliches (1981), this paper examines the relationship between the intangible asset of energy-saving technologies and stock market value. We furthermore construct the spillover variable of energy-saving technologies for each firm using the definition of technological proximity by Jaffe (1986), and consider their distinctive impact on stock market value. Non-linear estimation using firm-level data of listed Japanese manufacturing firms reveals that intangible assets as a whole are positively associated with market value, although the intangible asset of energy-saving technologies is negatively correlated with market value. In addition, we find that the spillover of energy-saving technologies raises stock market value significantly. These results suggest that developing energy-saving technologies is difficult to appropriate its potential private rate of return, and the research and development (R&D) for energy-saving technologies is underinvested and socially insufficient. Policy implications are also discussed. |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:13062&r=ino |
| By: | Asongu Simplice (Yaoundé/Cameroun) |
| Abstract: | This seminal paper provides global empirical evidence on catch-up processes in scientific and technical publications. Its purpose is to model the future of scientific knowledge monopoly in order to understand whether the impressive growth experienced by latecomers in the industry has been accompanied by a similar catch-up in scientific capabilities and knowledge contribution. The empirical evidence is based on 41 catch-up panels which together consist of 99 countries. The richness of the dataset allows us to disaggregate countries into fundamental characteristics based on income-levels (high-income, lower-middle-income, upper-middle-income and low-income), legal-origins (English common-law, French civil-law, German civil-law and, Scandinavian civil-law) and, regional proximity (South Asia, Europe & Central Asia, East Asia & the Pacific, Middle East & North Africa, Latin America & the Caribbean and, Sub-Saharan Africa). Three main issues are investigated: the presence or not of catch-up processes, the speed of the catch-up processes and, the time needed for full (100%) catch-up. The findings based on absolute and conditional catch-up patterns broadly show that advanced countries will continue to dominate in scientific knowledge contribution. Policy implications are discussed. |
| Keywords: | Research and Development; Catch-up |
| JEL: | F42 O10 O30 O38 O57 |
| Date: | 2013–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:13/001&r=ino |
| By: | Maxim Kotsemir (Institute for Statistical Studies and Economics of Knowledge, National Research University — Higher School of Economics) |
| Abstract: | The paper reviews the application of the data envelopment analysis (DEA) method for measuring the efficiency of national innovation systems (NIS). The paper firstly visualizes the logic of DEA method and briefly summarizes the key advantages and main limitations of the DEA method. Further, this paper provides a comprehensive review of 11 empirical studies on cross-country analysis of NIS efficiency with DEA technique. In its main part the paper analyses the specifications of DEA models used in the reviewed studies, the content of the country samples, sets of input and output variables used and the resulting lists of efficient countries. The review detects general trends and differences in the sets of variables and the content of country samples. Moreover, this paper highlights the problem of “small countries bias” in the reviewed studies: situation when “small” (in terms of national innovation system scope and the level of development) countries (like Venezuela, Kyrgyzstan etc.) are included in the country sample, these “small” countries become the efficient ones. In general, empirical studies on cross-country analysis of national innovation systems efficiency using DEA method pay little attention to profound analysis of previous relevant studies. Therefore, this paper is among the first papers with deep review of such empirical studies |
| Keywords: | data envelopment analysis, DEA, national innovation systems, national innovation system efficiency, economic review, efficiency analysis, review of empirical studies |
| JEL: | C44 C61 P49 P51 P52 Q55 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp16sti2013&r=ino |
| By: | Guido Bünstorf (University of Kassel); Christoph Engel (Max Planck Institute for Research on Collective Goods, Bonn); Sven Fischer (Max Planck Institute for Research on Collective Goods, Bonn); Werner Güth (Max Planck Institute of Economics, Strategic Interaction Group, Jena) |
| Abstract: | We experimentally test the effect of enforceable non-compete clauses on working efforts. The employee can invest into the probability of making a profitable innovation. After a successful innovation (Win) the employee may want to leave the firm (Shift) whereas after an innovation failure (Lose) he may remain (Stay) . In the treatments with non-compete clause, but not in the baseline, the employer can prevent successful innovators from leaving the firm. With standard preferences, effort should be lower if the worker cannot leave the firm, except if compulsory compensation for having to stay is very high. By contrast we find no reduction in effort even if compensation is low. Employers anticipate the incentive problem and pay a higher wage which employees reciprocate by higher effort. |
| Keywords: | labor relations, non compete clause, non compete covenant, reciprocity, fairness |
| JEL: | L51 D21 J33 J38 |
| Date: | 2013–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2013-038&r=ino |
| By: | Carsten Fink (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland); Mosahid Khan (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland); Hao Zhou (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland) |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:12&r=ino |
| By: | Sergei Belev (Russian Presidential Academy of National Economy and Public Administration); Vladimir Komarov (Russian Presidential Academy of National Economy and Public Administration); N. Moguchev (Russian Presidential Academy of National Economy and Public Administration); Albina Mukhlisova (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The results of monitoring of public policies science and technology in 2009-2010. and evaluation of its performance in terms of objectives, indicators, targets, priorities and main objectives of the first phase innovative development of the Russian economy set out in the concept of long-term socio-economic development of the Russian Federation for the period up to 2020. |
| Keywords: | monetary transmission |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:30&r=ino |
| By: | Khan, Haider |
| Abstract: | The main purpose of this paper is to explore the possibilities of industrialization and development in the 21st century. With an ongoing global financial and economic crisis with only a tepid recovery at the time of this writing(August 2013) as well as the still unfolding ecological crisis, the 21st century presents an even greater challenge for industrialization in the developing world than the post-WWII period. The changed global economic and ecological environment will shape the emergence of new technological and industrial paradigms and trajectories in significant ways (Dosi 2000, Khan 2004a). However, while the main thesis of this paper argues for a radical rethinking of development and industrialization within an ecological political economy framework in the 21st century, there are still many relevant lessons---positive and negative--- from the post-WWII development and industrialization experiences and discourses. Therefore, the next section focuses on the development and industrialization experiences of the post-WWII period. This section also focuses in particular on the successful Asian economies in order to bring out a number of still relevant insights. Section 3 discusses the problems of industrialization and innovation in the particular 21st century context for China. The problems revealed through this case study can highlight many of the challenges of development, industrialization and innovation in the 21st century. However, it must be pointed out that China is also a special case in many respects and poses some problems for itself and for the smaller developing countries by the strategy of development it has followed so far. The research strategy here is to both avoid the danger of falling into overgeneralization and to emphasize the need for a radical change in both the global economic environment and specific development and industrialization strategies. This is highlighted in section 4 of this paper where the outlines of an alternative development strategy are given. |
| Keywords: | Industrialization strategies, development strategies. Innovation, heterodox policies, industrial policies, China |
| JEL: | O1 P1 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:50168&r=ino |
| By: | Theresia Gunawan (Maastricht School of Management and Technical University of Eindhoven, the Netherlands); Jojo Jacob (United Nation University- Maastricht Economic and Social Research Institute on Innovation and Technology (UNU MERIT), the Netherlands); Geert Duysters (Tilburg University, the Netherlands) |
| Abstract: | This study investigates the role of intra-cluster ties, extra-cluster ties, and entrepreneurial orientation in shaping firms’ innovative performance. We conduct our analysis on a primary data set of 120 SMEs in the Cibaduyut footwear-manufacturing cluster, Indonesia. We find that extra-cluster ties mediate the relationship between proactiveness and innovative performance. A combination of high extra-cluster ties and risk taking exert a positive impact on innovative performance. Surprisingly, we find that risk taking negatively moderates the influence of intra-cluster ties on innovative performance. Overall, the findings of this study point to the synergistic effects of entrepreneurial orientation and extra-cluster ties on innovative performance. |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2013/28&r=ino |