|
on Innovation |
| By: | Daron Acemoglu (Department of Economics, Massachusetts Institute of Technology); Ufuk Akcigit (Department of Economic, University of Pennsylvania); Murat Alp Celik (Department of Economic, University of Pennsylvania) |
| Abstract: | This paper argues that openness to new, unconventional and disruptive ideas has a .first-order impact on creative innovations - innovations that break new ground in terms of knowledge creation. After presenting a motivating model focusing on the choice between incremental and radical innovation, and on how managers of different ages and human capital are sorted across different types of .firms, we provide cross-country, firm-level and patent-level evidence consistent with this pattern. Our measures of creative innovations proxy for innovation quality (average number of citations per patent) and creativity (fraction of superstar innovators, the likelihood of a very high number of citations, and generality of patents). Our main proxy for openness to disruption is manager age. This variable is based on the idea that only companies or societies open to such disruption will allow the young to rise up within the hierarchy. Using this proxy at the country, .firm or patent level, we present robust evidence that openness to disruption is associated with more creative innovations. |
| Keywords: | corporate culture, creative destruction, creativity, economic growth, entrepreneurship, individualism, innovation, openness to disruption |
| JEL: | O40 O43 O33 P10 P16 Z1 |
| Date: | 2014–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:14-004&r=ino |
| By: | Bratti, Massimiliano (University of Milan); Conti, Chiara (Sapienza University of Rome) |
| Abstract: | We use small Italian regions (i.e. provinces) to investigate the causal effect of foreign immigration on innovation during 2003-2008. Using instrumental variables estimation (based on immigrants' enclaves), we find that the overall stock of immigrants did not have any effect on innovation. However, decomposing the overall effect into the contributions of low- and high-skilled migrants shows that an increase of 1 percentage point in the share of low-skilled migrants on the population reduces patent applications by about 0.2%. By contrast, the impact of high-skilled immigrants on innovation is positive, in line with the previous literature, but cannot be precisely estimated. |
| Keywords: | immigration, innovation, patent applications, regions, Italy |
| JEL: | O3 J2 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp7922&r=ino |
| By: | Shimizu, Hiroshi; Wakutsu, Naohiko |
| Abstract: | By exploring the patterns of laser-diode technological development in the U.S. and Japan and theoretically examining market conditions and institutions that promote entrepreneurial spin-outs from a parental company, this study reveals how the existence and absence of entrepreneurial spin-out influence the ways in which technological trajectories emerge. It shows that vibrant entrepreneurial spin-out could hinder technological development, since the cumulative effects of incremental innovations on the technological trajectories could vanish if many firms spun out to target untapped sub-markets. |
| Keywords: | Innovation, Entrepreneurial Spin-Outs, Technological Trajectory, R&D Competition, Sub-markets, General Purpose Technology |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:iirwps:13-21&r=ino |
| By: | Andrés Rodríguez-Pose; Marco Di-Cataldo |
| Abstract: | Although it has frequently been argued that the quality of institutions affects the innovative potential of a territory, the link between institutions and innovation remains a black box. This paper aims to shed light on how institutions shape innovative capacity, by focusing on how regional government quality affects innovative performance in the regions of Europe. By exploiting new data on quality of government (QoG), we assess how government quality and its components (control of corruption, rule of law, government effectiveness and government accountability) shape patenting capacity across the regions of the European Union (EU). The results of the analysis – which are robust to controlling for the endogeneity of institutions – provide strong evidence of a causal link between the quality of local governments and the capacity of territories to generate innovation. In particular, low quality of government becomes a fundamental barrier for the innovative capacity of the periphery of the EU, strongly undermining any potential effect of any other measures aimed at promoting greater innovation. The results have important implications for the definition of innovation strategies in EU regions. |
| Keywords: | Institutions, Quality of government, Innovation, Regions, Europe |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1406&r=ino |
| By: | Alexander Eickelpasch |
| Abstract: | This paper investigates to what extent the R&D behavior of manufacturing companies was influenced by the 2008/09 crisis. Based on a broad official data set for German manufacturing companies, only a few companies that engaged in R&D during 2008 gave it up in the following year. Some companies even started R&D during crisis. R&D expenditures declined in 2009 compared to 2008, but expanded in 2010. The development of R&D expenditures was less volatile than sales. Probit analyses show that the occurrence of R&D in 2009 is very much determined by engagement in R&D in 2008 and that changes in demand are not relevant. However, fluctuation in demand proved to be relevant in the regressions computed where the intensity of R&D expenditures was the dependent variable. This result suggests that companies reacted counter cyclically in 2008/09, i.e. the reduction in R&D was smaller than the decline in demand, or the expansion of R&D expenditures was greater than the change in demand. Similar regressions for using R&D staff as the dependent variable did not find any influence of changes in demand. The results suggest that companies see R&D as a longer term task necessary to retain competitiveness. |
| Keywords: | Research and development, Business cycle, Manufacturing |
| JEL: | E32 L60 O31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1357&r=ino |
| By: | Afandi, Elvin; Kermani, Majid |
| Abstract: | By employing a rich sample of firm-level data in seven Eastern Europe and Central Asian countries from Europe and Central Asia, our paper investigates core as well as some specific determinants of firm innovation. We find that the likelihood of engaging in innovation for a firm increases with its core socio-economic characteristics such as size, age, capacity utilization, domestic competition and foreign ownership. In addition to the estimates of these socio-economic covariates, the ultimate purpose of our study is to obtain more in-depth knowledge about the policy implacable factors for firm innovation that the countries could focus on. These policy-related factors are: (i) access to finance, (ii) human capital, and (iii) foreign trade. In this respect, our study finds that firm’s innovation increases with better financial inclusion, greater human capital and engagement in foreign trade. We argue that these analysis and results, coupled with inclusive and targeted policies, can be used to enrich the process of private sector innovation in the region’s countries. |
| Keywords: | Firm innovation, access to finance, human capital, foreign trade |
| JEL: | G0 J24 O31 P33 |
| Date: | 2013–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53255&r=ino |
| By: | Diaz-Mayans, M.Angeles; Sánchez, Rosario/R |
| Abstract: | This paper analyses the relationship between exports, innovative activities and size and their effect over firms’ technical efficiency and then over their productivity. The analysis takes, also, into account other variables that could affect productivity as industrial sector, or firms’ financial conditions. We use a micro panel data set of Spanish manufacturing firms, during the period 2004–2009, to simultaneously estimate a stochastic frontier production function and the inefficiency determinants. The data source is published in the Spanish Industrial Survey on Business Strategies (Encuesta sobre Estrategias Empresariales, ESEE), collected by Fundación SEPI. Our results show that exporting firms are more efficient than non-exporting firms; and that small and medium-sized firms’ tent to be more efficient when they focus on international markets. |
| Keywords: | exports, firms, technical efficiency, productivity, innovative activities, R&D expenditures |
| JEL: | F14 L25 L60 |
| Date: | 2014–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53230&r=ino |
| By: | Chakraborty, Lekha (National Institute of Public Finance and Policy) |
| Abstract: | Gender responsive budgeting (GRB) is a fiscal innovation. Innovation is defined as a way of transforming a new concept into tangible processes, resources and institutional mechanisms in which a benefit meets identified problems. GRB is a fiscal innovation in that it translates the gender commitments into fiscal commitments through applying a `gender lens' to the identified processes, resources and institutional mechanisms; and arrives at a desirable benefit incidence. Theoretical treatment of gender budgeting as fiscal innovation is not incorporated, as the scope of this paper is broadly on the processes. GRB as an innovation has four specific components: knowledge processes and networking; institutional mechanisms; learning processes and building capacities; and public accountability and benefit incidence. This paper analyses these four components of GRB in the context of India. National Institute of Public Finance and Policy (NIPFP) has been the pioneer on gender budgeting in India, and also played a significant role in institutionalizing gender budgeting within Ministry of Finance, Government of India in 2005. The Expert Committee Group on `Classification of Budgetary Transactions" recommendations on gender budgeting (Ashok Lahiri Committee recommendations) led to the institutionalization process, integrating the analytical matrices of fiscal data through a gender lens and also the institutional innovations for GRB. Revisiting to the 2004 Lahiri recommendations and revamping the process of GRB in India is inevitable, at ex-ante and ex-post levels. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:14/128&r=ino |
| By: | Patrick Franco Alves; Nayara Lopes Gomes; Eric Jardim Cavalcante |
| Abstract: | Em economias em desenvolvimento, a aquisição de uma nova máquina pode significar para a firma a introdução de um novo produto ou um novo processo para a empresa ou para o mercado doméstico. Este texto busca avaliar a importância das introduções de inovações via tecnologia incorporada em novas máquinas e equipamentos. Para tal, verificou-se o impacto de tais aquisições sobre a produtividade das firmas industriais brasileiras. Visando controlar possíveis relações de simultaneidade e autosseleção existentes entre as variáveis envolvidas, estima-se um sistema de equações estruturadas. Os resultados encontrados demonstram a existência de impactos positivos e significantes, advindos do investimento em capital físico sobre a inovação tecnológica das firmas. O efeito médio do tratamento advindo da inovação em processo apresenta impacto positivo sobre a produtividade do trabalho. O tamanho da firma possui papel relevante na determinação da decisão de investir, no montante do investimento e sobre as diferentes formas de inovação tecnológica. In developing economies the purchase of a new machine by the firm can be a way of introducing a new product or processes. Under such considerations, this paper searches to measure the assumption of innovation via machine embodied technology, by verifying its impacts over the firm’s productivity. In order to control for possible simultaneity and self-selection relationship between the variables a structured system of equations is estimated. The found results reveal the existence of positive and statistically significant impacts from the investments decision on technological innovation over the firm’s productivity. The treatment effect estimated for product and process innovation presents positive and significant impact over the labor productivity. The firm size seems to be an important role in shaping the invest decision, the investment intensity choice and the different forms of technological innovation. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipe:ipetds:1930&r=ino |
| By: | Beatrice D'Ippolito (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | Scholars dedicated increasing attention towards appreciating how design has changed individuals' perception of new products, firms' understanding and formulation of strategy, or other relevant actors' approach to innovation and technology management. By emphasising the importance of design for the definition of consumers' needs, the restructuring of firms' organisational structures and strategies, and the evolution of firms' value creation processes, this review paper identifies relevant research gaps and questions that would benefit from future scholarly attention. In particular, it is suggested that such effort should address the analysis of: how design consumption can help better comprehend consumers' needs; what are the implications of design thinking on the skill sets of design professionals; the organisational structure of firms, including the reconfiguration of other business functions, and their strategy; and whether and how design thinking can shape firms' value creation processes and contribute to the formalisation of design tasks. |
| Keywords: | Design; strategy making; consumers' needs; value creation; literature review; firm competitiveness; research gaps |
| Date: | 2014–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00936947&r=ino |
| By: | Daron Acemoglu; Mohamed Mostagir; Asuman Ozdaglar |
| Abstract: | Crowdsourcing is an emerging technology where innovation and production are sourced out to the public through an open call. At the center of crowdsourcing is a resource allocation problem: there is an abundance of workers but a scarcity of high skills, and an easy task assigned to a high-skill worker is a waste of resources. This problem is complicated by the fact that the exact difficulties of innovation tasks may not be known in advance, so tasks that require high-skill labor cannot be identified and allocated ahead of time. We show that the solution to this problem takes the form of a skill hierarchy, where tasks are first attempted by low-skill labor, and high-skill workers only engage with a task if less skilled workers are unable to finish it. This hierarchy can be constructed and implemented in a decentralized manner even though neither the difficulties of the tasks nor the skills of the candidate workers are known. We provide a dynamic pricing mechanism that achieves this implementation by inducing workers to self select into different layers. The mechanism is simple: each time a task is attempted and not finished, its price (reward upon completion) goes up. |
| JEL: | D20 D83 L22 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19852&r=ino |
| By: | Covi, Giovanni |
| Abstract: | The paper aims at investigating the possible trajectories of regional clusters (industrial districts or local systems) in order to depict feasible strategies to cope with globalization. First, same relevant stylized facts on the new structure of global market are presented in order to illustrate the new competitive framework the SME must face. Second, the concept of ‘complete productive process’ is introduced to characterize the special setting is necessary for the survival of the regional systems of SME. Said briefly, a local cluster needs to co-produce values, capabilities, institutions: its very identity. Since local systems are essentially ‘cognitive systems’, they need to go global not as single firm but as a system. To accomplish this difficult task they must resort to a collective and cooperative behaviour. The paper tries to fill this gap introducing the concept of ‘Collective Local Entrepreneurship’, a reference point, a device to whom anchor the strategic pragmatism necessary to regional clusters to cope with globalization. The renewal of the local ‘ecosystems’ within the international networks (at all different levels) appears to be a general objective. A strong public-private partnership emerges as a strategic commitment. In this perspective the paper tries to capture, as a conclusion, the potential dynamics of the four evolutionary trajectories, which the regional clusters are called upon to deal with. |
| Keywords: | Industrial clusters; innovation; knowledge; industrial policy; entrepreneurship. |
| JEL: | L22 L26 O25 O31 |
| Date: | 2014–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:53334&r=ino |
| By: | Lorenzo Cassi; Andrea Morrison; Roberta Rabellotti |
| Abstract: | International collaboration among researchers is a far from linear and straightforward process. Scientometric studies provide a good way of understanding why and how international research collaboration occurs and what are its costs and benefits. Our study investigates patterns of international scientific collaboration in a specific field: wine related research. We test a gravity model that accounts for geographical, cultural, commercial, technological, structural and institutional differences among a group of Old World (OW) and New World (NW) producers and consumers. Our findings confirm the problems imposed by geographical and technological distance on international research collaboration. Furthermore, they show that similarity in trade patterns has a positive impact on international scientific collaboration. We also find that international research collaboration is more likely among peers, in other words, among wine producing countries that belong to the same group, e.g. OW producers or newcomers to the wine industry. |
| Keywords: | Proximity, International scientific collaboration, Wine industry, Gravity model, Scientometrics, Emerging countries |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1405&r=ino |
| By: | Mark F. Schultz; Douglas C. Lippoldt |
| Abstract: | This paper takes stock of the available legal protection for trade secrets (undisclosed information) in a broad sample of countries. Drawing on national and international material, the paper develops and presents an indicator of the stringency of protection of trade secrets (the Trade Secrets Protection Index) and provides an assessment of variation in the available protection. The result is a finding that while the sample countries have some similarities, notably with respect to definition and scope of trade secrets, they have many more substantial dissimilarities with respect to implementation of protection for trade secrets. For example, differences are particularly pronounced in evidence gathering and discovery, protection of trade secrets during litigation, technology transfer requirements and the effectiveness of legal systems with respect to enforcement. This diversity is reflected in the wide range of scores in the Trade Secrets Protection Index. Such variation in the stringency of protection for trade secrets may influence firm-level decision-making and may have implications for some aspects of economic performance (in particular, in relation to innovation). |
| Keywords: | trade secrets, trade secrets protection index, intellectual property rights |
| JEL: | F13 O34 |
| Date: | 2014–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:162-en&r=ino |