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on Innovation |
| By: | Kerr, William R.; Nanda, Ramana |
| Abstract: | We review the recent literature on the financing of innovation, inclusive of large companies and new startups. This research strand has been very active over the past five years, generating important new findings, questioning some long-held beliefs, and creating its own puzzles. Our review outlines the growing body of work that documents a role for debt financing related to innovation. We highlight the new literature on learning and experimentation across multi-stage innovation projects and how this impacts optimal financing design. We further highlight the strong interaction between financing choices for innovation and changing external conditions, especially reduced experimentation costs. |
| Keywords: | finance, innovation, entrepreneurship, banks, venture capital, experimentation |
| JEL: | G21 G24 L26 M13 O31 O32 |
| Date: | 2015–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2015_028&r=ino |
| By: | Wei Jin (School of Economics, UNSW Business School, The University of New South Wales and School of Public Policy and Management, Zhejiang University); ZhongXiang Zhang (College of Management and Economics, Tianjin University) |
| Abstract: | Whether China continues its business-as-usual investment-driven, environment-polluting growth pattern or adopts an investment and innovation-driven, environmentally sustainable development holds important implications for both national and global environmental governance. Building on a Ramsey-Cass-Koopmans growth model that features endogenous technological change induced by R&D and knowledge stock accumulation, this paper presents an exposition, both analytically and numerically, of the mechanism underlining China’s economic transition from an investment-driven, pollution-intensive to an investment and innovation-driven, environmentally sustainable growth path. We show that if R&D technological innovation is incorporated into China’s growth mechanism, then at some tipping point in time when marginal welfare gain of R&D for knowledge accumulation becomes equalized with that of investment for physical asset deployment, China’s economy will launch capital investment and R&D simultaneously and make a transition to a sustainable growth path along which consumption, capital investment, and R&D have a balanced share of 5: 4: 1, consumption, capital stock, and knowledge stock all grow at a rate of 4.9%, and environmental quality improves at a rate of 2.5%. In contrast, if R&D technological innovation is not harnessed as a new growth engine, then China’s economy will follow its business-as-usual investment-driven growth path along which standalone accumulation of dirty physical capital stock will lead to an more than 200-fold increase in environmental pollution. |
| Keywords: | Endogenous Technological Change, Sustainable Development, Economic Growth Model, China’s Economic Transition |
| JEL: | Q55 Q58 Q43 Q48 O13 O31 O33 O44 F18 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.24&r=ino |
| By: | Antoine Dechezlepretre; Elias Einiö; Ralf Martin; Kieu-Trang Nguyen; John Van Reenen |
| Abstract: | We present the first evidence showing causal impact of research and development (R&D) tax incentives on innovation outcomes. We exploit a change in the asset-based size thresholds for eligibility for R&D tax subsidies and implement a Regression Discontinuity Design using administrative tax data on the population of UK firms. There are statistically and economically significant effects of the tax change on both R&D and patenting, with no evidence of a decline in the quality of innovation. R&D tax price elasticities are large at about 2.6, probably because the treated group is from a sub-population subject to financial constraints. There does not appear to be pre-policy manipulation of assets around the thresholds that could undermine our design, but firms do adjust assets to take advantage of the subsidy post-policy. We estimate that over 2006-11 business R&D would be around 10% lower in the absence of the tax relief scheme. |
| Keywords: | R&D; patents; tax; innovation; Regression Discontinuity design |
| JEL: | J24 M0 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:66428&r=ino |
| By: | Susan Alexander (Minerva); Slavcheva Milena (European Commission – JRC - IPTS) |
| Abstract: | The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | R&I system, R&I policy, ERA, innovation union, Semester analysis, Luxembourg |
| JEL: | I20 O30 Z18 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101201&r=ino |
| By: | Dory Tibor (Szechenyi Istvan University); Milena Slavcheva (European Commission – JRC - IPTS) |
| Abstract: | The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | R&I system, R&I policy, ERA, innovation union, Semester analysis, Hungary |
| JEL: | I20 O30 Z18 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101194&r=ino |
| By: | MURAKAMI Hiroki |
| Abstract: | In this paper, we present a model which enables us to look into the process of research and development (R&D) for product innovation in the presence of the product life cycle and the resultant firm or economic growth. Specifically, we describe R&D for product innovation as an activity to control the birth rate of a new product, which measures the probability of product innovation; derive the optimal birth rate of a new product, which determines the size of R&D expenditure; and examine the growth rate of the (representative) firm('s expected total revenue) along the optimal R&D plan. We then find that the growth rate of the firm converges to the optimal birth rate of a new product in the long run. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:16032&r=ino |
| By: | Kleeva, Lyudmila Petrovna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kleev, Ivan Vladimirovitch (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Nikitova, Anna (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Krotov, Alexander Yurievitch (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | We investigate the impact of regional research and educational facilities for the development of Russia and Kazakhstan. Revealed their negative impact on the development of depressed regions, and this applies not only underdeveloped complexes Kostroma (Russian Federation) and Kyzylorlinskoy (Republic of Kazakhstan) regions, but also a well-developed scientific and educational complex in Irkutsk region. Research has shown that this paradox is due to the fact that the development of science and education in the region is associated not only with all the elements of regional research and innovation system (including research and development, education, innovation infrastructure, real production and regional governments), but and with the elements of research and development and education of a higher level: the national economy, and even megaekonomiki. Because communication within the spheres of science and education are professional, they're pretty close. Therefore, in the case where there is no effective system of functioning of the regional research and innovation system as a whole, the achievements of science and education sector (skilled workers) as a result of professional contacts within the framework of science and education leave the region, reducing its capacity, and are used in other regions and countries. The findings make it possible to generate proposals for a regional research and innovation policy. |
| Keywords: | Russia, Kazakhstan, depressed regions, development, innovation |
| Date: | 2016–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:541&r=ino |
| By: | Carlino, Gerald; Kerr, William R. |
| Abstract: | This paper reviews academic research on the connections between agglomeration and innovation. We first describe the conceptual distinctions between invention and innovation. We then discuss how these factors are frequently measured in the data and note some resulting empirical regularities. Innovative activity tends to be more concentrated than industrial activity, and we discuss important findings from the literature about why this is so. We highlight the traits of cities (e.g., size, industrial diversity) that theoretical and empirical work link to innovation, and we discuss factors that help sustain these features (e.g., the localization of entrepreneurial finance). |
| Keywords: | agglomeration, clusters, innovation, invention, entrepreneurship |
| JEL: | J2 J6 L1 L2 L6 O3 R1 R3 |
| Date: | 2015–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2015_027&r=ino |
| By: | Mariotto, Carlotta; Verdier, Marianne |
| Abstract: | Over the recent years, the development of Internet banking and mobile banking has had a considerable impact on competition in the retail banking industry. In some countries, the regulatory framework has been adapted to allow non-banks to operate in retail payments and compete with banks for deposits. Several platforms or large retailers have started to offer innovative financial products to their customers. In this paper, we survey the issues related to innovation and competition in Internet banking and mobile banking and discuss some perspectives for future research. |
| Keywords: | bank competition, bank regulation, non-banks, payment systems, Internet banking, mobile banking, platform markets |
| JEL: | E42 G21 L96 |
| Date: | 2015–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2015_023&r=ino |
| By: | Christopoulos, George (UNU‐MERIT, Maastricht University); Wintjes, René (UNU‐MERIT, Maastricht University) |
| Abstract: | This paper introduces a new approach for the definition of innovation clusters, based on the co-location of concentrated patenting and manufacturing activity in the EU. The incorporation of data on both the production and use of technologies results in an indicator that depicts both formal and informal modes of innovation and conditions which can be expected to be conducive to the generation, diffusion and absorption of innovation, and consequently the enhancement of competitiveness. Our findings indicate that certain types of patenting and manufacturing activity tend to co-locate. The sectoral-technological composition of the three types of concentrations observed points towards a higher level of diversity than one would expect in the case of narrow specialisation. Applying the new indicator in a test of the often hypothesised benefits of innovative clustering, we find that the identified clusters have consistently higher wages in the sectors concerned. |
| Keywords: | Innovation, clusters, regional studies, patenting, manufacturing |
| JEL: | O30 R12 L60 |
| Date: | 2016–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2016023&r=ino |
| By: | Gourio, Francois; Messer, Todd; Siemer, Michael |
| Abstract: | Using an annual panel of US states over the period 1982-2014, we estimate the response of macroeconomic variables to a shock to the number of new firms (startups). We find that these shocks have significant effects that persist for many years on real GDP, productivity, and population. This result is consistent with simple models of firm dynamics where a “missing generation” of firms affects productivity persistently. |
| Keywords: | Productivity ; Business dynamics ; Employment ; Firm entry ; Missing generation ; New business formation |
| JEL: | E24 E32 L25 L26 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2016-43&r=ino |
| By: | Nesterenko Nadezhda Anatolyevna (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration) |
| Abstract: | value of the concepts "innovation", "innovative activity", "management of human resources" is considered. The attention to continuity of the technologies of management of human resources existing in the organization is paid, connecting them with the perspective future of the organization which activity will become effective and productive exactly thanks to introduction of the innovative technologies of management of human resources, but at observance which are available already in the organization of traditional values, approaches and the principles of human resource management. |
| Keywords: | innovation, innovative technologies, innovative directions, innovative activity, traditional values, diffusion of innovations, creative activity, human resource management, management of human resources |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:m16n2&r=ino |
| By: | Sándor Juhász; Balázs Lengyel |
| Abstract: | Knowledge networks in industrial clusters are frequently analyzed but we know very little about creation and persistence of ties in these networks. We argue that tie creation primarily depends on opportunities and thus the position ofactors in the network and in space; while tie persistence is influenced by the value of the tie. Accordingly, results from a Hungarian printing and paper product cluster suggest that reciprocity, triadic closure, and geographical proximity between firms increase the probability of tie creation. Tie persistence is positively affected by technological proximity between firms and the number of their extra-regional ties. |
| Keywords: | knowledge networks, clusters, network dynamics, stochastic actor-oriented models |
| JEL: | D85 L14 R11 O31 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1613&r=ino |
| By: | Schaefer, K. Aleks |
| Abstract: | In the presence of market imperfections, there is no guarantee that society will benet from technological change. This research analyzes the impact of biotechnology designed to bypass agricultural processes in the production of pharmaceutical products. High quality pharmaceuticals often exist alongside less eective treatments with a common active phytochemical ingredient. In this context, antimicrobial resistance generated by the consumption of one product also aects the ecacy of the other product. These interdependencies fundamentally alter the eects of biotechnology on retail markets, agricultural input markets, and antimicrobial resistance. I construct a dynamic epidemiological-economic model of the global market for anti-malarials to analyze the potential economic and public health costs associated with the introduction of a recently developed semi-synthetic production technology by which to procure artemisinin for use in artemisinin-based combination therapies (ACTs) used in the treatment of malaria. I nd that in addition to decreasing the price of ACTs, semi-synthetic production technology also lowers the price of low quality monotherapy treatments and increases resistance to all forms of artemisinin. Despite these adverse eects, the development of semi-synthetic artemisinin leads to a present-value gain of approximately $2 billion in social welfare over a seven-year time horizon. |
| Keywords: | artemisinin, biotechnology, drug resistance, Health Economics and Policy, International Development, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235716&r=ino |
| By: | Faggian, Alessandra; Partridge, Mark; Malecki, Ed |
| Abstract: | Researchers have long searched for the underlying causes of growth. In developed countries, as they shifted from industrial to knowledge economies, researchers have recently stressed the following sources of growth embodied in its workforce: human capital (linked to education), entrepreneurship (variously measured), and the creative class (associated with worker occupations). This study first proposes new conceptual ways to portray the interrelationship of these knowledge-based attributes. Then simultaneously considers all of these factors in an empirical model using U.S. counties. We find that human capital as measured by educational attainment and the intensity of small and medium-sized firms are statistically associated with subsequent growth, while other factors such as the share of creative class workers or the share of advanced technology industries are insignificant. We conclude that economic development strategies are too focused on attracting large outside firms and attracting advanced technology firms and not enough attention is given to building a foundation of competitive small and medium-sized firms. |
| Keywords: | Economic growth, human capital, entrepreneurship, creative class, US counties |
| JEL: | J24 O1 R11 |
| Date: | 2016–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71445&r=ino |
| By: | Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (Swedish Entrepreneurship Forum & Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology (KTH)) |
| Abstract: | This paper investigates how incumbent firm characteristics affect the viability of its spinoffs. The survival patterns of spinoffs with roots in exporting firms and in technologically innovative firms are compared to the survival of other spinoffs. Using comprehensive Swedish employer-employee panel data sets, three possible outcomes are identified: survival,acquisition and complete exit from the market. Experience from an exporting parent is positively associated with spinoff survival. These inheritance benefits do, however, decrease with the tenure of ex-employees. This suggests that inherited advantages in this case is not primarily driven by enhanced opportunities for on-the-job learning. Above-average attractiveness to employees, and associated ability sorting and opportunity costs mechanisms, provides explanations for the superior survival of spin-offs from exporting firms that seem more congruent with data. The study also suggest that technological innovativeness, captured by parent's patenting activity, is negatively associated with spinoff survival when controlling for exports. This result support the view that knowledge inside innovative firms is "sticky" and not easily transferable to new ventures by ex-employees. |
| Keywords: | entrepreneurship; exports; organizational heritage; innovation; spinoff; entrepreneurial spawning |
| JEL: | C25 F14 L26 M13 O33 |
| Date: | 2016–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0437&r=ino |
| By: | Lee, Yoo Hwan; Graff, Gregory D. |
| Abstract: | This study examines the mechanisms and geographic scope of the impact of university knowledge spillovers on the agricultural economy, using the case of Colorado State University (CSU) and the state’s agricultural economy. Our findings show that the spillover impacts of journal publications are rarely localized within Colorado; rather, the geographic scope of these impacts is national and even global. However, the extent to which the spillover impacts of patented knowledge is localized within Colorado is open to question because it is possible to control permissions for use, but at the same time it is impossible to limit everyone’s awareness and use of it, particularly in foreign jurisdictions where patents are not taken out by the university. The collaboration mechanism of knowledge dissemination, such as indicated by industry coauthorship on journal articles and private sponsorship of grants and contracts, which are more rivalrous by virtue of the more tacit qualities of knowledge being disseminated and because of the higher transaction costs, requires closer interaction and greater geographic proximity, which usually prevents global dissemination. Thus, we observe geographic proximity is significantly important for these channels. Finally, university start-ups are highly geographically bounded near universities because in the early stages start-up companies need support from their host university. |
| Keywords: | knowledge spillovers, geographic proximity, innovation, agriculture, university research, non-parametric model, Agribusiness, Community/Rural/Urban Development, Industrial Organization, Research and Development/Tech Change/Emerging Technologies, Q16, R12, O33, D23, C14, |
| Date: | 2016–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea16:235717&r=ino |
| By: | Hiromi Yamaoka (Bank of Japan); Akihiko Watanabe (Bank of Japan); Chiharu Takeuchi (Bank of Japan) |
| Abstract: | In designing payment systems, it is necessary to address how legal and institutional frameworks incentivize economic entities, and how their payment activities influence the safety and efficiency of overall systems as well as financial stability and market developments. Such studies and analyses are becoming all the more important in line with progress in information technology and payment innovation. In particular, we need to design a framework that continuously moves payments forward without causing gridlock or unwinding, since smooth payment flows are critical especially when highly-frequent transactions are processed back-to-back. We should also pay careful attention to network externalities and systemic risks. Information security is also a key issue, regardless of whether payments are processed in a centralized or decentralized manner. |
| Date: | 2016–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojrev:rev16e04&r=ino |