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on Innovation |
| By: | Stefano Bianchini; Gabriele Pellegrino; Federico Tamagni |
| Abstract: | In this work, we explore the relations between sales growth and a set of innovation indicators that capture the different sources, modes and results of the innovative activity undertaken within firms. We exploit a rich panel on innovation activity of Spanish manufacturing firms, reporting detailed CIS-type information continuously over the period 2004-2011. Standard GMM-panel estimates of the average effect of innovation activities reveal significant and positive effect for internal R&D, while no effect is found for external sourcing of knowledge (external R&D, acquisition of embodied and disembodied technologies) as well as for output of innovation (process and product innovation). However, fixed-effects quantile regressions reveal that innovation activities, apart from process innovation and disembodied technical change, display a positive effect on high-growth performance. Finally, we find evidence of super-modularity of the growth function, revealing complementarities of internal R&D with product innovation, and between product and process innovation. |
| Keywords: | firm growth, product and process innovation, internal and external R&D, embodied and disembodied technical change, fixed-effects quantile regressions, complementarity |
| Date: | 2016–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2016/03&r=ino |
| By: | Geng, Heng; Hau, Harald; Lai, Sandy |
| Abstract: | Innovation processes under patent protection generate hold-up problems if complementary patents are owned by different firms. We show that in line with Hart and Moore (1990), shareholder ownership overlap across firms with patent complementarities helps mitigate such hold-up problems and correlates significantly with higher patent investment and more patent success as measured by future citations. The positive innovation effect is strongest for concentrated overlapping ownership and for the cases when the overlapping shareholders are dedicated investors. |
| Keywords: | hold-up problems; innovation; institutional ownership; patents |
| JEL: | G31 G32 L22 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11064&r=ino |
| By: | Verba, M. (UNU-MERIT) |
| Abstract: | This article develops a model of growth and innovation in which accumulation dynamics of knowledge and R&D are explicitly considered. The model is based on a more general knowledge production process than commonly used in Endogenous Growth Theory and R&D productivity literatures, reconciling as special cases of a broader framework disparate analytical approaches. The model of knowledge dynamics highlights the role of human capital, physical capital, and accumulation in the creation of innovations and establishes the theoretical possibility of long-run idea-driven growth without the razor-edge assumption of Romer (1990) and in the absence of growth in R&D employment stipulated by Jones (1995). This analysis also predicts the structure of estimation biases that can result from omission of relevant factors and failure to take into account the accumulation dynamics of knowledge and R&D. Empirical estimation supports these predictions. Findings provide recommendations for future empirical studies aiming to explain innovation. |
| Keywords: | Growth theory, innovation, R&D, productivity, knowledge, production function, accumulation |
| JEL: | O30 O31 O32 O40 |
| Date: | 2015–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2015054&r=ino |
| By: | Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Tony Irawan (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | The analysis explains innovations in EU25 for the period 2006-2012, namely through R&D (relative to GDP), cumulated FDI inflows – relative to the host country capital stock - , joint internet intensity, broadband intensity and potential competition. For the first time we can offer a broad analysis of innovation dynamics in Europe that should be the basis not only for better supply-side policy in EU countries and growth policy, respectively, it also suggests a strong role of international digital communication for innovation dynamics. Moreover, the approach gives new important arguments in favor of the TTIP negotiations between the US and the EU. |
| Keywords: | Innovation, TTIP, Foreign Direct Investment, EU, Internet |
| JEL: | O11 O32 F40 F10 F15 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei209&r=ino |
| By: | Dominik Heinisch (University of Kassel); Önder Nomaler (Eindhoven University of Technology); Guido Buenstorf (University of Kassel); Koen Frenken (Utrecht University); Harry Lintsen (Eindhoven University of Technology) |
| Abstract: | It has long been argued that geographic co-location supports knowledge spillovers. More recently, this argument has been challenged by showing that knowledge spillovers mainly flow through social networks, which may or may not be localized at various geographic scales. We further scrutinize the conjecture of geographically bounded knowledge spillovers by focusing on knowledge flows between academia and industry. Looking into citations to non-patent literature (NPL) in 2,385 Dutch polymer patents, we find that citation lags are shorter on average if Dutch rather than foreign NPLs are cited. However, when excluding individual and organizational self-citations, geographically proximate NPLs no longer diffuse faster than foreign NPLs. This suggests that knowledge is not “in the air” but transferred by mobile individuals and/or direct university-industry collaboration. Our findings moreover suggest an important role of international conferences in the diffusion of recent scientific knowledge. |
| Keywords: | Non-patent literature, citation lags, knowledge spillovers, university-industry interaction, polymer industry |
| JEL: | O33 R10 L65 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201527&r=ino |
| By: | Dicks, David; Fulghieri, Paolo |
| Abstract: | We develop a theory of innovation waves, investor sentiment, and merger activity based on uncertainty aversion. Investors must typically decide whether or not to fund an innovative project with very limited knowledge of the odds of success, a situation that is best described as "Knightian uncertainty." We show that uncertainty-averse investors are more optimistic on an innovation if they can also make contemporaneous investments in other innovative ventures. This means that uncertainty aversion makes investment in innovative projects strategic complements, which results in innovation waves. We also show that innovation waves may be sparked by favorable technological shocks in one sector, and then spill over to other contiguous sectors. Thus, innovation waves ripple through the economy amid strong investor sentiment. Finally, we argue that an active M&A market promotes innovative activity and leads to greater innovation rates and firm valuations. |
| Keywords: | ambiguity aversion; hot IPO markets; innovation |
| JEL: | G31 G32 G34 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11082&r=ino |
| By: | Luca Marcolin; Sébastien Miroudot; Mariagrazia Squicciarini |
| Abstract: | This work addresses the role of global value chains (GVCs), workforce skills, ICT, innovation and industry structure in explaining employment levels of routine and non-routine occupations. The analysis encompasses 28 OECD countries over the period 2000-2011. It relies on a new country-specific measure of routine intensity built using individual-level information from the OECD Programme for the International Assessment of Adult Competencies (PIAAC) survey, as well as on new industry-level Trade in Value Added (TiVA) indicators of offshoring, domestic outsourcing, and the services content of manufacturing. The results suggest that comparatively higher skills are associated with higher employment in non-routine (NR) and low routine-intensive (LR) occupations. Also, employment in all types of occupations, both routine and non-routine ones, shows to positively relate to innovation, as measured by patents. A generally positive relationship also emerges between employment and the ICT intensity of industries, with the notable exception of jobs in high-routine occupations, where ICTs seemingly displace workers. With respect to offshoring patterns, a positive correlation is observed between the offshoring of inputs and domestic outsourcing with more routine-intensive jobs. Conversely, the offshoring of final assembly in manufacturing leads to the shedding of jobs in NR occupations and a relatively higher service content of manufacturing relates negatively with employment in HR occupations. Taken together, the results point to the existence of complex interactions between the routine content of occupations, skills, technology, industry structure and trade, which do not allow for a neat identification of “winners” and “losers” in a GVC context. While the effects appear heterogeneous across quartiles of routine intensity, a persistent and positive role of skills and innovative output for employment is found across all quartiles of routine intensive occupations. |
| Date: | 2016–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2016/1-en&r=ino |
| By: | Rune Dahl Fitjar; Andrés Rodríguez-Pose |
| Abstract: | It has often been argued that ‘there is something in the air’ which makes firms in high-density environments – such as cities or clusters – more innovative. The co-location of firms facilitates the emergence of serendipity and casual encounters which promote innovation in firms. We assess this hypothesis using data from a survey of Norwegian firms engaged in innovation partnerships. The results indicate that there may be ‘much less in the air’ than is generally assumed in the literature. The relationships conducive to innovation by Norwegian firms emerged as a consequence of purpose-built searches and had little to do with chance, serendipity, or ‘being there’. |
| Keywords: | Innovation, tacit knowledge, agglomeration, externalities, spillovers, firms, Norway. |
| JEL: | O31 O33 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1602&r=ino |
| By: | Elif Dayar (Department of Economics, Atilim University); Mehmet Teoman Pamukçu (TEKPOL, Science and Technology Policy Studies, Middle East Technical University) |
| Abstract: | In this paper we are investigating the following question for Turkey: “How does the increase in R&D capital stock and how do foreign knowledge spillovers affect labor productivity?” Our sample is composed of R&D performers only, hence the Heckman two stage procedure with the instrumental variables technique for panel data is implemented (Semykina and Wooldridge, 2010). Appropriate instruments are used in regressions for the endogenous variables. Our findings signal that the indigenous efforts of R&D performers and their physical capital stock intensity exert a positive effect on firm-level labor productivity. However, neither foreign ownership nor foreign knowledge spillovers are found to affect R&D performers’ labor productivity positively. On the other hand, skill exerts a strong positive impact on productivity, pointing to the significant role of educated staff in R&D performing firms. We can conclude that Turkish R&D performers are dependent on their accumulated physical capital stock intensity and their own R&D efforts when it comes to increasing labor productivity. |
| Keywords: | R&D |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:met:stpswp:1402&r=ino |
| By: | Paola Cardamone; Valeria Pupo; Fernanda Ricotta (Dipartimento di Economia, Statistica e Finanza, Università della Calabria) |
| Abstract: | This study provides empirical evidence on the role of universities’ Technological Transfer (TT) activities in the Italian manufacturing sector, with particular attention to the food industry. By using the UniCredit-Capitalia database (2008) for firms and data from the Ministry of Education, University and Research (MIUR) to obtain the university TT indicator, we estimate a probit model to assess the effect of universities’ TT activities on a firm’s likelihood to innovate. Results show that university TT activities seem to stimulate food industry firms innovation and the impact appears significantly higher than for the manufacturing sector. |
| Keywords: | Universities, Technology transfer, Food firms, Innovation, Spillovers |
| JEL: | O30 C25 D22 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201602&r=ino |
| By: | Gianluca Benigno (Department of Economics, London School of Economics (LSE); Centre for Economic Policy Research (CEPR); Centre for Macroeconomics (CFM)); Luca Fornaro (Centre for Economic Policy Research (CEPR); Centre de Recerca en Economia Internacional (CREI) Barcelona Graduate School of Economics (Barcelona GSE); Departament d'Economia i Empresa Universitat Pompeu Fabra Barcelona Graduate School of Economics (Barcelona GSE)) |
| Abstract: | We provide a Keynesian growth theory in which pessimistic expectations can lead to very persistent, or even permanent, slumps characterized by unemployment and weak growth. We refer to these episodes as stagnation traps, because they consist in the joint occurrence of a liquidity and a growth trap. In a stagnation trap, the central bank is unable to restore full employment because weak growth depresses aggregate demand and pushes the interest rate against the zero lower bound, while growth is weak because low aggregate demand results in low profits, limiting firms' investment in innovation. Policies aiming at restoring growth can successfully lead the economy out of a stagnation trap, thus rationalizing the notion of job creating growth. |
| Keywords: | Secular Stagnation, Liquidity Traps, Growth Traps, Endogenous Growth, Multiple Equilibria |
| JEL: | E32 E43 E52 O42 |
| Date: | 2015–01 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:1606&r=ino |
| By: | Francesco Bogliacino; Dario Guarascio; Valeria Cirillo |
| Abstract: | This article explores the impact of innovation, offshoring and demand on profits and wage dynamics. The growing relevance of functional distribution in terms of explaining personal distribution underscores the importance of our results for understanding recent increases in inequality. The empirical analysis performed herein involves a panel of 38 manufacturing and service sectors over four time periods (1995 to 2010) across five European countries (Germany, France, Italy, Spain and United Kingdom). Our identification strategy relies on instrumental variables and recently proposed heteroskedasticity-based instruments (Lewbel, 2012). Additionally, we perform sensitivity analysis to account for omitted variables bias, following the recent theoretical results of Oster (2015). The main results of our study can be summed up in three points. First, it highlights the contrasting effects of R&D and offshoring as wage determinants: the former exerts a positive effect while the latter exert a negative effect. Second, it shows that external demand is a key variable driving profits growth. Third. it provides evidence of noteworthy results stemming from the categorization of workers according to skill level, such as: high-skilled workers are favored by both innovation and offshoring, offshoring exerts downward pressure primarily on low-skilled wages (not on mediumskilled wages as predicted by SBTC) and profits are positively correlated with high-skill wages, negatively correlated with medium-skill wages and not correlated with low-skill wages. |
| Keywords: | rent; surplus; distribution; inequality; skills; offshoring; R&D |
| Date: | 2016–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2016/04&r=ino |
| By: | Jean Bonnet (CREM, UMR CNRS 6211, UFR SEGGAT, University of Caen Normandie, France) |
| Abstract: | In a market economy, reward structures are more or less favorable to opportunity entrepreneurship, which brings growth and jobs (Schreyer, 2000). Currently the small group of high-growth firms generates a large proportion of permanent jobs (Henrekson and Johansson, 2010; Falkenhall and Junkka, 2009) and new companies are widely represented (Daunfeldt and al, 2014). How to nurture these new companies with high-growth potential in France is a major issue that, we believe, is mainly based on a better functioning of the labor market, and the development of entrepreneurial education and ecosystems favorable to entrepreneurship. |
| Keywords: | Entrepreneurship by opportunity, Entrepreneurial Education, Entrepreneurial Ecosystems |
| JEL: | L26 J24 P16 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:2016-02&r=ino |
| By: | Silvia Cruz (UNICAMP - University of Campinas [Campinas] - University of Campinas); Sônia Paulino (University of Sao Paolo); Faïz Gallouj (Clersé - UMR CNRS 8019 - Institut de Sociologie et d'Anthropologie - Université Lille 1 - Sciences et technologies) |
| Abstract: | This paper is devoted to public services innovation in the municipal solid waste sector. It analyses the implementation of Clean Development Mechanism (CDM) projects in the Bandeirantes and São João landfills in the municipality of São Paulo, Brazil. The study is based on the concept of Public-Private Innovation Networks in services (ServPPINs). Using the ServPPIN concept it was possible to identify competence gaps affecting the stakeholders involved in these CDM projects. We focus in particular on those organisational and relational competence gaps that are likely to weaken innovation feasibility in services related to solid waste. In fact, innovation is closely linked to the development of new competences among service providers and users. For the most part, these will arise out of changes in interactions between actors-given that the projects in question include the coordination of various actors (public, private, and citizen). |
| Keywords: | landfill,public service innovation,clean development mechanism,ServPPIN |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01247615&r=ino |
| By: | Valeria Cirillo; Matteo Sostero; Federico Tamagni |
| Abstract: | Within-firm wage dispersion represents a relevant dimension of the overall wage inequality. A large stream of literature has analysed the wage-technology link without explicitly taking into account within-firm wage dispersion. In this work we aim to empirically investigate how technology affects within-firm wage dispersion and how it changes according to employer size. By exploiting employer-employee data from a survey of European firms (Eurostat's Structure of Earnings Survey - 2010) matched with information on sector innovation derived from the Community Innovation Survey, we look at the impact of innovation across small and medium-large firms, both on the average wages paid by firms and on the degree of within-firm wage inequality. Furthermore, we distinguish between high-paying and low-paying firms and more equal and unequal firms by means of a quantile regression approach. |
| Keywords: | wage inequalities, innovation, quantile regressions, employer-employee matched data |
| Date: | 2016–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2016/05&r=ino |
| By: | Massa, Isabella (Overseas Development Institute) |
| Abstract: | Over the past years, the manufacturing sector has gone through a period of significant technological change. Technological innovation may bring significant socio-economic benefits and improve the environmental prospects, but it may also pose severe challenges to the economy, human well-being, and the environment. The aim of this paper is to review and discuss the existing literature on the economic/social, social/environmental, and environmental/economic trade-offs stemming from technological change in the manufacturing sector, with a focus on developing countries. The policy designs proposed in the literature to minimise the trade-offs arising from technological innovation and to achieve technology-driven sustained economic growth, social inclusiveness and environmental sustainability are also examined. |
| Keywords: | technological change, developing countries, manufacturing, trade-offs, growth, inclusiveness, social inclusion, social exclusion, environmental sustainability |
| JEL: | O11 O13 O14 O15 O33 O38 |
| Date: | 2015–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2015051&r=ino |
| By: | Catherine Moreddu |
| Abstract: | Public-Private Partnerships (PPPs) are increasingly used in agricultural innovation to leverage public funds, enhance efficiency, and improve the adaptation of innovation to demand so as to foster wider and faster diffusion. For governments, PPPs for innovation are but one policy option, whose costs and benefits need to be compared with those of other options. Governments have put in place a policy and regulatory environment to facilitate the development of PPPs for innovation, including financing mechanisms and Intellectual Property (IP) protection. Most programmes are not specific to the food and agriculture system, but apply to the economy-wide innovation system. The main a priori conditions for forming a successful partnership between public and private participants are existence of common objectives, sharing of mutual benefits, and complementarity of human and financial resources. Institutional arrangements need to be clear, but the degree of formality can vary. Elements of good governance include setting clear objectives and rules, and implementing regular monitoring and evaluation that use well-established, open and competitive processes to select PPPs for public participation. Transparency is desirable at all stages of implementation. Improving partners’ capacity to design, manage and participate in PPPs is an important factor of success, and is particularly relevant for agricultural innovation. |
| Keywords: | governance, agricultural innovation, research funding, public-private partnerships |
| JEL: | O31 O38 Q16 |
| Date: | 2016–01–28 |
| URL: | http://d.repec.org/n?u=RePEc:oec:agraaa:92-en&r=ino |
| By: | Florian Schock; Jan Mutl; Florian Taübe; Paschen P. von Flotow |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/226225&r=ino |
| By: | H Peyton Young; Lucas Merrill Brown |
| Abstract: | Abstract: We study the increasing use of stock options to compensate executives in US corporations. As with many technological innovations, the adoption curve exhibits a classic S-shaped pattern: the rate rises slowly at first, then there is a period of rapid acceleration, and finally it tails off as the saturation level is approached. Using a longitudinal data set of Frydman and Saks (2010) supplemented with financial reports compiled by the authors, we argue that the diffusion of options was initially given a jump-start by a change in the tax law, but thereafter it was propelled by a process in which firms learned from the experience of earlier adopters. The notion that options spread primarily through social conformity or ‘jumping on the bandwagon’ is not borne out by the data. |
| JEL: | O33 |
| Date: | 2016–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:777&r=ino |
| By: | Maurice Baslé (CREM - Centre de Recherche en Economie et Management - UR1 - Université de Rennes 1 - Université de Caen Basse-Normandie - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | 1 Gouvernance publique libre et ouverte versus simple réduction des coûts : comment mieux agir collectivement en connaissance de(s) cause(s) de l'impact sociétal. Passer au stade du post-bureaucratique et du post-compétitif grâce à la co-innovation ouverte avec un management public vraiment responsable fondé sur des équipes professionnelles apprenantes et outillées par des plateformes coopératives à la recherche du meilleur impact économique et sociétal. Maurice Baslé, emeritus professeur CREM-CNRS-Université de Rennes 1. Chaire Jean Monnet ad personam, Chaire Connaissance et action territoriale. Maurice.basle(a)univ-rennes1.fr Mots-clés : performance publique en économie mixte ou en économie sociale de marché, bonne gouvernance, innovation ouverte, données ouvertes, gouvernement ouvert, communautés apprenantes, plateformes coopératives de données, conférences de consensus sur l'impact économique et social des politiques publiques et des programmes et sur les chaines de valeurs et réseaux de valeurs publiques. Keywords : public performance in a public-private economy, good governance, open innovation, open data, open gov, learning professional communities, cooperative data platforms, consensus conferences on the impact factor of Public policies and programs, public value chains and networks. |
| Keywords: | learning professional communities, consensus conferences on the impact factor of Public policies and programs, cooperative data platforms,public performance in a public-private economy, good governance, open innovation, open data, open gov, public value chains and networks,performance publique en économie mixte ou en économie sociale de marché,bonne gouvernance,innovation ouverte,données ouvertes,gouvernement ouvert,communautés apprenantes,plateformes coopératives de données,conférences de consensus sur l'impact économique et social des politiques publiques et des programmes et sur les chaines de valeurs et réseaux de valeurs publiques.,chaines de valeur publique,réseaux de valeur publique |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01250361&r=ino |