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on Innovation |
| By: | Akcigit, Ufuk; Kerr, William R. |
| Abstract: | We build a tractable growth model where multi-product incumbents invest in internal innovations to improve their existing products, while new entrants and incumbents invest in external innovations to acquire new product lines. External and internal innovations generate heterogeneous innovation qualities, and firm size affects innovation incentives. This framework allows us to analyze how different types of innovation contribute to economic growth and how the firm size distribution can have important consequences for the types of innovations realized. Our model aligns with many observed empirical regularities, and we quantify our framework by matching Census Bureau operating data with patent data for U.S. firms. We observe that internal innovation scales moderately faster with firm size than external innovation. |
| Keywords: | Citations; Endogenous Growth; Entrepreneurs.; External; innovation; Internal; patents; Research and Development; Scientists |
| JEL: | L16 O31 O33 O41 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11660&r=ino |
| By: | Arthur Korus (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | The present study examines whether an innovation-oriented public procurement process can contribute to the development of lead markets. It is shown that the state, as a procurer of innovative products and services, respectively, can indeed influence leading market factors. Thus, the state can, with the procurement of a particular innovative design, generate a price advantage. However, it also appears that the state either cannot, or can only marginally, influence certain lead market factors. Furthermore, it will be shown that innovation-oriented public procurement may, under certain circumstances, maximize welfare. With the additional demand from the side of the state, the diffusion of innovative products can be accelerated. The study indicates that via innovation-oriented public procurement, lock-ins and path dependencies could be avoided or even eliminated. Moreover, an innovation-centric public procurement can lead to an increase in Research & Development (R&D) expenditures by private firms. Via this channel, a stronger public demand for innovative products and services gives rise to positive employment effects. So that innovation focused public procurement can lead to the emergence or development of lead markets and an expansions of R&D, in the past number of years an increasing number of political initiatives have been launched at the supranational, national and regional levels. Thus, as will be shown in the present study, procurement law at an EU-level was reformed with the goal of strengthening the public procurement of innovative products and services. The analysis shows that the reforms to EU procurement law will definitely have a beneficial effect on the extent of public acquisition of innovative products and services. In addition, this study explores the political initiatives of both the Federal Republic of Germany and the federal German state of North Rhine-Westphalia. |
| Keywords: | Public procurement, Innovation policy, Concepts of demand-oriented policy, Lead markets, Lead market initiative, Innovation |
| JEL: | H57 O3 O38 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei228&r=ino |
| By: | Salome Baslandze (Einaudi Institute for Economics and Fina) |
| Abstract: | What is the impact of information and communications technologies (ICT) on aggregate productivity growth and sectoral reallocation? In this paper, I analyze the impact of ICT through facilitating knowledge diffusion in the economy. There are two opposing effects. The increased flow of ideas between firms improves learning opportunities and spurs innovation. However, knowledge diffusion through ICT also results in broader accessibility of knowledge by competitors harming innovation incentives. The nature of the tradeoff between these opposing forces depends on an industry's technological characteristics, which I call external knowledge dependence. Industries whose innovations rely more on external knowledge benefit greatly from knowledge externalities and expand, while more self-contained industries are more affected by intensified competition and shrink. This results in the reallocation of innovation and production activities toward more externally-focused, "knowledge-hungry" industries. I develop a general equilibrium endogenous growth model featuring this mechanism. Using NBER patent and citations data together with BEA industry-level data on ICT, I empirically validate the mechanism of the paper. Quantitative analysis from the calibrated model illustrates that it is important to account for both technological heterogeneity and the knowledge-diffusion role of ICT to explain U.S. trends in productivity growth and sectoral reallocation in recent decades. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:1509&r=ino |
| By: | Andre Jungmittag (Economics and Quantitative Methods at the Frankfurt University of Applied Sciences) |
| Abstract: | Multinational enterprises increasingly internationalize collaterally to their production and sales also their research and development activities. In the media, this growing generation, transfer and diffusion of technology was labeled as technological globalization or techno-globalization – a catchword that was also adopted in the scientific literature. This paper consistently analyses global technological cooperation and global acquisitions of innovations as facets of techno-globalization with patent indicators proposed by Guellec/von Pottelsberghe de la Potterie (2001). Additionally to stocktaking for the cross section of the OECD countries and a time series examination for the whole OECD, Germany and the Netherlands, the significant drivers of techno-globalization are determined by simple correlation and regression analyses. Furthermore, simple tests for beta-convergence show that there are an international convergence of the patent shares with domestic inventor and foreign applicant and also a convergence of the countries’ patent shares with international cooperation of inventors. The analysis is completed by a view on the sector differences with regard to the internationalization of innovations as well as by some considerations with regard to the links between the internationalization of enterprises’ innovations and domestic employment. |
| Keywords: | Innovation, Technological Innovation, R&D, Research and Development, |
| JEL: | O31 O32 R11 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei221&r=ino |
| By: | Bernhard Dachs (Austrian Institute of Technology, Vienna); Martin Hud (ZEW Centre for European Economic Research, Mannheim); Christian Köhler (ZEW Centre for European Economic Research, Mannheim); Bettina Peters (ZEW, Mannheim, and CREA, University of Luxembourg) |
| Abstract: | A growing literature investigates how firms’ innovation input reacts to changes in the business cycle. However, so far there is no evidence whether there is cyclicality in the effects of innovation on firm performance as well. In this paper, we investigate the employment effects of innovations over the business cycle. Our analysis employs a large data set of manufacturing firms from 26 European countries over the period from 1998 to 2010. Using the structural model of Harrison et al. (2014), our empirical analysis reveals four important findings: First, the net effect of product innovation on employment growth is pro-cyclical. It turns out to be positive in all business cycle phases except for the recession. Second, product innovators are more resilient to recessions than non-product innovators. Even during recessions they are able to substitute demand losses from old products by demand gains of new products to a substantial degree. As a result their net employment losses are significantly lower in recessions than those of non-product innovators. Third, we only find resilience for SMEs but not for large firms. Fourth, process and organizational innovations displace labor primarily during upturn and downturn periods. |
| Keywords: | Innovation, employment, business cycle, resilience, Europe. |
| JEL: | O33 J23 C26 D2 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:16-20&r=ino |
| By: | Can Huang (School of Management, Zhejiang University, Hangzhou); Xiao Jin (School of Management, Zhejiang University, Hangzhou); Lanhua Li (School of Management, Zhejiang University, Hangzhou) |
| Abstract: | RIO R&I International Country Reports analyse and assess the research and innovation system, including the main challenges, framework conditions, regional R&I systems, and international co-operation, including with DG JRC. |
| Keywords: | R&I system, R&I policy, Innovation Union, Regional R&I, International, China |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc102345&r=ino |
| By: | Bernhard Dachs (AIT Austrian Institute of Technology) |
| Abstract: | During the last 20 years Austria developed from a country with below-average R&D intensity into one of the leading European countries in research and development. The article shows that affiliates of foreign multinational enterprises played a pivotal role in Austria’s catching up. Moreover, my contribution discusses various positive and negative effects from the presence of foreign-owned firms for the Austrian innovation system. |
| Keywords: | Innovation, Technological Innovation, R&D, Research and Development, FDI, Foreign Investment |
| JEL: | O32 G11 F21 F23 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei222&r=ino |
| By: | KRISHNA Venni Venkata |
| Abstract: | RIO R&I International Country Reports analyse and assess the research and innovation system, including the main challenges, framework conditions, regional R&I systems, and international co-operation, including with DG JRC. |
| Keywords: | R&I system, R&I policy, Innovation Union, Regional R&I, International, India |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc102465&r=ino |
| By: | Dar-Brodeur, Afshan; Baldwin, John R.; Yan, Beiling |
| Abstract: | This paper asks whether research and development (R&D) drives the level of competitiveness required to successfully enter export markets and whether, in turn, participation in export markets increases R&D expenditures. Canadian non-exporters that subsequently entered export markets in the first decade of the 2000s are found to be not only larger and more productive, as has been reported for previous decades, but also more likely to have invested in R&D. Both extramural R&D expenditures (purchased from domestic and foreign suppliers) and intramural R&D expenditures (performed in-house) increase the ability of firms to penetrate export markets. Exporting also has a significant impact on subsequent R&D expenditures; exporters are more likely to start investing in R&D. Firms that began exporting increased the intensity of extramural R&D expenditures in the year in which exporting occurred. |
| Keywords: | Business performance and ownership, Manufacturing, Research and development, Science and technology |
| Date: | 2016–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3e:2016386e&r=ino |
| By: | Catalina Martínez; Laura Cruz-Castro; Luis Sanz-Menéndez |
| Abstract: | This paper evaluates the effectiveness of a public programme intended to improve innovation capabilities in the private sector by subsidizing the hiring of R&D personnel. Using information from the programme management database, we study factors associated with the duration of contracts and their transformation into open-ended contracts, a basic aim of the programme. We explore the characteristics of subsidies, individuals, entities and projects related to the eventual stabilization of the new R&D employees, when the subsidies had ended. The programme was found to strengthen R&D capacity in recipient firms - above all in technology centres - yet only about half of the subsidized short term contracts had been converted into permanent contracts by the end of their second year. |
| Keywords: | Programme evaluation, company R&D and innovation, S&T employment, innovation policy, Spain |
| JEL: | O31 O38 H43 H83 Z18 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipp:wpaper:1510&r=ino |
| By: | Autor, David; Dorn, David; Hanson, Gordon; Pisano, Gary; Shu, Pian |
| Abstract: | Manufacturing is the locus of U.S. innovation, accounting for more than three quarters of U.S. corporate patents. The rise of import competition from China has represented a major competitive shock to the sector, which in theory could benefit or stifle innovation. In this paper we empirically examine how rising import competition from China has affected U.S. innovation. We confront two empirical challenges in assessing the impact. We map all U.S. utility patents granted by March 2013 to firm-level data using a novel internet-based matching algorithm that corrects for a preponderance of false negatives when using firm names alone. And we contend with the fact that patenting is highly concentrated in certain product categories and that this concentration has been shifting over time. Accounting for secular trends in innovative activities, we find that the impact of the change in import exposure on the change in patents produced is strongly negative. It remains so once we add an extensive set of further industry- and firm-level controls. Rising import exposure also reduces global employment, global sales, and global R&D expenditure at the firm level. It would appear that a simple mechanism in which greater foreign competition induces U.S. manufacturing firms to contract their operations along multiple margins of activity goes a long way toward explaining the response of U.S. innovation to the China trade shock. |
| Keywords: | China; firms; import competition; innovation; patents; Trade |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11664&r=ino |
| By: | Andrea Renda |
| Abstract: | This report analyses the peculiarities of innovation in Information and Communications Technologies (ICT), an ecosystem composed of various layers: from infrastructure to applications and content, and including end users. The report observes that innovation is becoming more open and collaborative in all layers, with various degrees of R&D intensity (greater at lower, physical layers); a prevalence of system goods with platforms and complementors mostly competing “for†rather than “in†the market; pervasive network effects coupled with relatively low entry barriers; short product life-cycles; and a high degree of co-evolution and co-dependency across and between layers. The nature of the ICT ecosystem determines a growing need for flexible, adaptive regulation, and the adoption of new policy instruments such as prizes and challenges. Policies should aim to create an environment favourable to the development of new, welfare-enhancing business models and avoid hindering the entrance of new players |
| Keywords: | Innovation, ICT, Commpetitiveness, growth, industry, digital economy |
| JEL: | L63 L86 L88 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc103661&r=ino |
| By: | Shang-Jin Wei; Zhuan Xie; Xiaobo Zhang |
| Abstract: | After more than three decades of high growth that was based on an exploration of its low-wage advantage and a relatively favorable demographic pattern in combination with market-oriented reforms and openness to the world economy, China is at a crossroad with a much higher wage and a shrinking work force. Future growth by necessity would have to depend more on its ability to generate productivity increase, and domestic innovation will be an important part of it. In this paper, we assess the likelihood that China can make the necessary transition. Using data on expenditure on research and development, and patent applications, receipts, and citations, we show that the Chinese economy has become increasingly innovative. In terms of drivers of innovation growth, we find that embracing expanded market opportunities in the world economy and responding to rising labor costs are two leading contributing factors. On the other hand, we find evidence of resource misallocation in the innovation area: while state-owned firms receive more subsidies, private firms exhibit more innovation results. Innovation can presumably progress even faster if resource misallocation can be tackled. |
| JEL: | O1 O3 O4 O53 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22854&r=ino |
| By: | Dan Andrews; Chiara Criscuolo; Peter N. Gal |
| Abstract: | In this paper, we aim to bring the debate on the global productivity slowdown – which has largely been conducted from a macroeconomic perspective – to a more micro-level. We show that a particularly striking feature of the productivity slowdown is not so much a lower productivity growth at the global frontier, but rather rising labour productivity at the global frontier coupled with an increasing labour productivity divergence between the global frontier and laggard (non-frontier) firms. This productivity divergence remains after controlling for differences in capital deepening and mark-up behaviour, suggesting that divergence in measured multi-factor productivity (MFP) may in fact reflect technological divergence in a broad sense. This divergence could plausibly reflect the potential for structural changes in the global economy – namely digitalisation, globalisation and the rising importance of tacit knowledge – to fuel rapid productivity gains at the global frontier. Yet, aggregate MFP performance was significantly weaker in industries where MFP divergence was more pronounced, suggesting that the divergence observed is not solely driven by frontier firms pushing the boundary outward. We contend that increasing MFP divergence – and the global productivity slowdown more generally – could reflect a slowdown in the diffusion process. This could be a reflection of increasing costs for laggard firms of moving from an economy based on production to one based on ideas. But it could also be symptomatic of rising entry barriers and a decline in the contestability of markets. We find the rise in MFP divergence to be much more extreme in sectors where pro-competitive product market reforms were least extensive, suggesting that policy weaknesses may be stifling diffusion in OECD economies. |
| Keywords: | firm dynamics, knowledge diffusion, productivity, regulation, technological change |
| JEL: | O43 O57 O30 O40 M13 |
| Date: | 2016–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaac:5-en&r=ino |
| By: | Vincent Van Roy (European Commission - JRC); Daniel Nepelski (European Commission - JRC) |
| Abstract: | This report contributes to a better understanding of the framework conditions that are conducive to the emergence and the growth of entrepreneurial activities in Europe. It takes into account a broad variety of framework conditions, including entrepreneurial culture, access to human capital, support initiatives for knowledge creation and networking, market conditions, availability of sufficient and appropriate finance, prevailing business regulations and the quality of the supporting infrastructure. For each of these framework conditions, the prevailing literature identifies the underlying components that affect the creation and growth of firms respectively. A set of two composite indicators – i.e. the Entrepreneurship and Scale-up Indices (ESIS) –have been constructed to facilitate the comparison across Member States. As such, this report provides a working tool to monitor and benchmark EU Member States in the creation of a business-friendly environment that can foster both the creation and the growth trajectories of firms. |
| Keywords: | ecosystem; financial; growth; ICT; indicator; innovation; policy; research; industry |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc103350&r=ino |
| By: | Ezra Oberfield (Princeton University); Francisco Buera (Federal Reserve Bank of Chicago) |
| Abstract: | We provide a tractable theory of innovation and technology diffusion to explore the role of international trade in the process of development. We model innovation and diffusion as a process involving the combination of new ideas with insights from other industries or countries. We provide conditions under which each country’s equilibrium frontier of knowledge converges to a Frechet distribution, and derive a system of differ- ential equations describing the evolution of the scale parameters of these distributions, i.e., countries’ stocks of knowledge. In particular, the growth of a country’s stock of knowledge depends only on its trade shares and the stocks of knowledge of its trading partners. We use the framework to quantify the contribution of bilateral trade costs to cross-sectional TFP differences, long-run changes in TFP, and individual post-war growth miracles. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:1538&r=ino |
| By: | Jens K. Perret (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | The present study examines the position of the EU28 member states and the comparative advantage of each vis-à-vis the other states in the EU28 market using four particular chosen leading markets; Renewable Energies, Biotechnology, Information and Communication Technologies and the Recycling sector. Within the framework of this study, two modified versions of a Revealed Comarative Advantage Indicator are employed, both of which are derived herein. It can be shown that ICT and Recycling are already established sectors, for which there is evidence of only a low level of structural dynamics within the EU28. On the contrary, for Renewable Energies and Biotechnology a different picture emerges: Established centers of production and innovation are indeed established, however the transformation process for these two sectors has not been completed and they better fulfil their function as leading markets than ICT or Recycling. |
| Keywords: | Environment, Alternative Energy Source, Biotechnology, Communication Industries, Recycling |
| JEL: | P48 Q42 Q53 L65 L96 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei223&r=ino |
| By: | Dar-Brodeur, Afshan; Baldwin, John R.; Yan, Beiling |
| Abstract: | Le present document vise a determiner si la recherche et developpement (R-D) stimule chez les entreprises le niveau de competitivite necessaire a leur entree sur les marches d?exportation et si, a son tour, la participation aux marches d?exportation fait croitre les depenses en R-D des entreprises. Il a ete demontre que les entreprises canadiennes qui n?avaient pas effectue d?exportations auparavant et qui se sont lancees sur les marches d?exportation au cours de la premiere decennie des annees 2000 ont non seulement vu leur productivite et leur taille augmenter, selon les constatations publiees au cours des decennies precedentes, mais sont egalement plus susceptibles d?avoir investi dans des activites de R-D. Les depenses extra-muros en R-D (pour l?acquisition aupres de fournisseurs canadiens et etrangers) et les depenses intra-muros en R-D (pour les activites effectuees par l?entreprise elle-meme) augmentent la capacite des entreprises a percer les marches d?exportation. L?activite d?exportation a egalement une incidence importante sur les depenses en R-D subsequentes, les entreprises exportatrices etant plus susceptibles de commencer a investir dans des activites de R-D. Les entreprises qui ont commence a exporter leurs produits ou services ont accru leurs depenses extra-muros en R-D pendant l?annee ou les exportations ont eu lieu. |
| Keywords: | Business performance and ownership, Manufacturing, Research and development, Science and technology |
| Date: | 2016–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:stc:stcp3f:2016386f&r=ino |
| By: | Alberto Galasso; Mark Schankerman |
| Abstract: | Cumulative innovation is central to economic growth. Do patent rights facilitate or impede follow-on innovation? We study the causal effect of removing patent rights by court invalidation on subsequent research related to the focal patent, as measured by later citations. We exploit random allocation of judges at the U.S. Court of Appeals for the Federal Circuit to control for endogeneity of patent invalidation. Patent invalidation leads to a 50 percent increase in citations to the focal patent, on average, but the impact is heterogeneous and depends on characteristics of the bargaining environment. Patent rights block downstream innovation in computers, electronics and medical instruments, but not in drugs, chemicals or mechanical technologies. Moreover, the effect is entirely driven by invalidation of patents owned by large patentees that triggers more follow-on innovation by small firms. |
| JEL: | J1 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:61614&r=ino |
| By: | Gigante, Anna Azzurra |
| Abstract: | This paper proposes a critical review of some of the main applications of path-dependence in economic theory. In particular, it calls attention on those theories clarifying the micro-foundations of path-dependent processes in economics. In the field of innovation, path-dependence shows the endogenous character of technological change, revealing the complex interplay among firm’s structural specificities, irreversibility, creativity, localized learning, externalities, feedbacks and contingent disturbing factors. In cognitive and institutional economics, the path-dependent character of learning processes, shown by cognitive and neurobiological studies, suggests interesting explanations for economic and institutional inefficiency persistence and, in general, for institutional genesis and evolution processes. Micro-foundations of economic path-dependence offer new opportunities for further extending theoretical and empirical economic research. For instance, they could contribute to extend economic self-organization approach, which has focused on the non-linear character of economic dynamic processes and has described economic systems as dissipative and entropic structures. In this sense, path-dependence represents a fertile tool for further clarifying economic and institutional dynamics and a precious opportunity of interdisciplinary research. |
| Keywords: | path-dependence; endogenous change; non-ergodic process; knowledge production; innovation economics; cognitive economics; institutions; neural structures; self-organization; dissipative systems; entropy law |
| JEL: | A12 B25 O31 |
| Date: | 2016–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75310&r=ino |
| By: | Marcus Dejardin (CERPE - Centre de Recherches en Economie Régionale et Politique Economique - Facultés Universitaires Notre Dame de la Paix (FUNDP) - Namur, CIRTES - Centre interdisciplinaire de recherche Travail Etat et Société - UCL - Université Catholique de Louvain); Sylvain Luc (Université Laval, Département des Relations industrielles - Université Laval) |
| Abstract: | Composé du mot entrepreneurial auquel est ajouté le suffixe -isme, l’entrepreneurialisme serait l'entrepreneuriat comme idéologie. Nous nous concentrons sur ce sens donné à l’entrepreneurialisme. |
| Keywords: | Entrepreneurship,Entrepreneurialism,Entrepreneuriat,Entrepreneurialisme,Entrepreneur |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01390565&r=ino |
| By: | Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | An analysis of the international trade structures of OECD countries shows that between these countries primarily high-tech products are traded; moreover, since 2006 the share of imports in the GDP of China has reduced, which in turn indicates the new capabilities of China, i.e. that Chinese firms are capable of producing high quality products with a growing share of national value-added inputs. The result of this, with a broad international focus, is the finding that competition in terms of quality, product innovations and Schumpeterian dynamics play an increasingly important role in the context of international markets. This gives rise to the particular interest in an analysis of the role of lead markets and quality-competition, respectively, on the one hand, on the other hand macroeconomic perspectives should be demonstrated, which indicate product innovations in a new way and appear to be relevant for an assessment of stability policy. Furthermore, the economic policy implications will be discussed. |
| Keywords: | Macroeconomic Policy, Export, Trade, Innovation, Research, Development |
| JEL: | E6 F10 O3 O32 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei220&r=ino |
| By: | María Isabel Rodríguez-Ferradas (​University of Navarra); José A. Alfaro-Tanco (​University of Navarra); Francesco Sandulli (University of Complutense of Madrid) |
| Abstract: | The research field of Open Innovation (OI) has grown exponentially since Chesbrough coined the term in 2003. However, after more than a decade of research, several essential areas in the OI literature, such as OI practices, are still fragmented and incomplete, as noted in the reviews of OI literature in recent years. The main objective of this research is to conduct a comprehensive literature review of OI practices, which is necessary to clarify the concept and propose more precise terminology. In this study, we develop a theoretical framework that identifies and defines 19 different OI practices typologies, according to three dimensions: direction of resources flow, innovation process stage, and type of relationship. This paper makes a relevant contribution from two perspectives: academic and managerial. From the academic perspective, our work opens the door to future research directions in the OI field that if based in the proposed theoretical framework, could help strengthen the theoretical foundations of this innovation management paradigm. In terms of the managerial view, this new typology of OI practices could help managers select more appropriate practices according to their needs and resources. |
| Keywords: | Open innovation, Openness, Practices, Literature review |
| JEL: | M1 M10 O3 O32 |
| Date: | 2016–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:una:unccee:wp0316&r=ino |
| By: | Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | The expansion of the digital health economy represents a strategic challenge for both the wider economy and society of the Federal Republic of Germany. In this context, economic policy actors need to set adequate framework conditions, such that competition in the health system, i.e. the interaction of statutory and private health insurance providers, will lead to optimal innovation dynamics and efficiency gains. Statutory and private health insurance funds each follow their own strategies. Amongst other strategies, private insurance providers make use of the possibility that firms are also involved in the area of occupational health management. There are, however, considerable obstacles to a digital modernization of the health sector, while Germany was also relatively late in introducing a digital health card. Among the significant benefits, for patients, insurers and care providers, are innovations in the area of digital check-ups and preventative care, telemedicine, digitalized after-care and an optimization of billing processes. Germany – in an EU context – ranks mid-table with regard to eHealth applications in the hospital industry, however, on the basis of a good positioning in terms of ICT and the large domestic market, Germany has the potential to become both a leading actor and a leading market in the medium term. From an economic perspective, eHealth progress can help to curb the rise of insurance contributions – digital advances have cost dampening effects, patient benefits and positive effects in the competitive process. Non-uniform health economy standards in EU countries largely prevent national software solutions and other eHealth concepts from easily being scaled-up, i.e. exported. Here, action by the EU is clearly required; including in the promotion and support of cooperation projects. |
| Keywords: | Health, Insurance, Innovation, Research |
| JEL: | I1 I18 O3 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei227&r=ino |
| By: | Arthur Korus (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | In 2007 the European Commission declared, with its Lead Market Initiative, an intention to expand the market for renewable energies into a lead market. Through targeted support measures on a supranational as well as on a national level, a lead market for renewable energies shall, or rather should, emerge in the European Union. Based upon various indicators, the present study analyzes the fields of wind energy and photovoltaic to see if they have developed into lead markets. It is shown that a lead market for wind power exists in Denmark. Thus, Denmark, where wind energy accounts for 39% of gross electricity generation, is the world leader in wind energy. Furthermore, it is shown that Germany can also be designated as a lead market for wind energy. However, planned amendments to the German Renewable Energy Act (EEG) endanger Germany’s position as a lead market in the field of wind power. The lead markets for photovoltaic power are arguably to be found outside of Europe. The analysis contained herein shows that the USA and China can be considered as lead markets for photovoltaic power. Moreover, in the present study the expenditures for Research & Development, as well as patent applications in the area of renewable energies are discussed. It is found that in this context, within Europe, Germany performs well. |
| Keywords: | Renewable energies, Wind energy, Photovoltaic, German Renewable Energy Act, Lead markets, Lead market initiative |
| JEL: | Q42 Q55 Q58 |
| Date: | 2016–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei225&r=ino |
| By: | Eckhardt Bode; Stephan Brunow; Ingrid Ott; Alina Sorgner |
| Abstract: | We present empirical evidence suggesting that technological progress in the digital age will be biased not only with respect to skills acquired through education but also with respect to noncognitive skills (personality). We measure the direction of technological change by estimated future digitalization probabilities of occupations, and noncognitive skills by the Big Five personality traits from several German worker surveys. Even though we control extensively for education and experience, we find that workers characterized by strong openness and emotional stability tend to be less susceptible to digitalization. Traditional indicators of human capital thus measure workers’ skill endowments only imperfectly. |
| Keywords: | Worker personality, Noncognitive skills, Digital transformation, Direction of technical change, Germany |
| JEL: | C25 J24 O33 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp875&r=ino |
| By: | Clifford Bekar; Kenneth Carlaw; Richard Lipsey (Simon Fraser University) |
| Abstract: | Distinguishing characteristics of GPTs are identified and definitions discussed. We propose a definition that includes many multipurpose and single-purpose technologies and that uses micro-technological characteristics not macro-economic effects. Identifying GPTs requires recognition that they evolve continually and that there are always boundary uncertainties concerning particular items. We consider existing ‘tests’ of whether particular technologies are GPTs, arguing that many of these are based on misunderstandings, either of what GPT theory predicts or of what such tests can establish. The evolution of formal GPT theories is outlined, showing that only the early theories predicted the inevitability of GPT-induced showdown and surges. More recent GPT models, that are designed to model GPT’s characteristics, demonstrate that GPT theory does not imply the necessity of specific macro effects. We then show how GPTs can rejuvenate the growth process without causing slowdowns or surges. We conclude that the concept is helpful, while the criticisms can be resolved. |
| Keywords: | General Purpose Technologies, technological change, patents, slowdowns, surges, growth theories, productivity |
| JEL: | N00 O30 O33 O40 O41 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:sfu:sfudps:dp16-15&r=ino |
| By: | Nin-Pratt, Alejandro |
| Abstract: | It has been apparent for more than a century that future economic progress in agriculture will be driven by the invention and application of new technologies resulting from expenditure in research and development (R&D) by governments and private firms. Nevertheless, it is conventional wisdom in the economic development literature that there is a significant underinvestment in agricultural R&D in developing countries. Evidence supporting this belief is provided, first by a vast literature showing returns on R&D expenditure to be so high as to justify levels of investment in multiples of those actually found, and second, from available data showing low research effort in developing countries as measured by the intensity ratio (IR), that is, the percentage of agricultural gross domestic product invested in agricultural R&D (excluding the for-profit private sector). This paper argues that the IR is an inadequate indicator to measure and compare the research efforts of a diverse group of countries and proposes an alternative index that allows meaningful comparisons between countries. The proposed index can be used to identify potential under-investors, determine intensity gaps, and quantify the R&D investment needed to close these gaps by comparing countries with similar characteristics. Results obtained using the new R&D intensity indicator with a sample of 88 countries show that the investment effort in developing countries is much higher than the one observed using the conventional IR measure. The new measure finds that countries like China, India, Brazil, and Kenya have similar levels of R&D intensity to those in the United States. To close the R&D intensity gap measured by the new index, developing countries will need to invest US$7.1 billion on top of the $21.4 billion invested on average during 2008–2011, an increase of 33 percent of total actual investment. |
| Keywords: | agricultural research, public expenditure, agricultural growth, economic growth, agricultural development, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1559&r=ino |
| By: | Arnold, Daniel; Arntz, Melanie; Gregory, Terry; Steffes, Susanne; Zierahn, Ulrich |
| Abstract: | Der technologische Wandel erlaubt es zunehmend, Wertschöpfungsprozesse automatisiert und digital gestützt zu erbringen. Diese Digitalisierung und Automatisierung ist im Produktionsbereich beispielsweise gekennzeichnet durch sich zunehmend selbststeuernde Anlagen und Roboter bis hin zu vollautomatisierten und mit anderen vor- und nachgelagerten Geschäftsbereichen vernetzten "Smart Factories" (Industrie 4.0). Im Dienstleistungsbereich sorgen analog intelligente Software und Algorithmen mit Hilfe großer Datenmengen und Internetschnittstellen für die Digitalisierung und Automatisierung von Geschäftsprozessen. Zum Einsatz kommen etwa Analysetools mit Big Data, Cloud-Computing-Systeme oder Online-Plattformen. Vor dem Hintergrund dieser technologischen Entwicklungen - oftmals Technologien der 4. Industriellen Revolution genannt - werden in der öffentlichen Debatte vermehrt Befürchtungen laut, dass in Zukunft viele Arbeitsplätze überflüssig werden könnten. Dieses Szenario einer "technologischen Arbeitslosigkeit" wird von Studien aus den USA gestützt, nach denen jeder zweite Arbeitsplatz gefährdet ist (Frey und Osborne, 2013). Für Politik und Gesellschaft drängen sich damit eine Reihe von Fragen auf: Führt die Automatisierung und Digitalisierung tatsächlich zum Abbau von Arbeitsplätzen? Welche Arbeitsplätze sind gefährdet? Wie verändern sich die Arbeitsprozesse und -inhalte im Zuge des Wandels? Wie verändern sich Qualifikations- und Kompetenzanforderungen? Besteht Anpassungsbedarf zur Sicherung der Beschäftigungsfähigkeit von Arbeitnehmern/-innen? Dieser Policy Brief fasst zentrale Erkenntnisse und Einschätzungen aus Sicht der Wissenschaft und den am ZEW entstandenen Arbeiten zusammen. |
| Abstract: | Technological change is increasingly turning the value chain into an automated and digitalised process. The digitalisation and automation of manufacturing processes is characterised by the use of increasingly autonomous systems and robots, as well as fully automated smart factories (Industry 4.0), which are interconnected with upstream and downstream business divisions. Similarly, service providers have been increasingly using intelligent software and algorithms which help digitalise and automate business processes on the basis of large data volumes and web interfaces. To this effect, businesses make use of big data analysis software, cloud computing systems or online platforms, to name but a few examples. In view of these technological developments, or so-called technologies of the fourth industrial revolution, many concerns have been voiced in the public debate about how numerous jobs might become redundant in the future. This scenario of a "technological unemployment" is supported by U.S. studies, which suggest that 50 per cent of jobs are at risk of being replaced by new digital technologies (Frey and Osborne, 2013). This raises a number of questions among decision-makers and the general public: Is it true that automation and digitalisation will result in major job losses? And if so, which jobs are at risk? In what way are technological developments changing work processes and contents? How does this affect qualification and competency requirements? Is it necessary to carry out adjustment measures to guarantee job security? This policy brief summarises key findings of studies and scientifically grounded assessments by ZEW researchers. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:82016&r=ino |
| By: | Ragasa, Catherine; Chapoto, Anthony |
| Abstract: | This paper examines closely the constraints in productivity improvements and evaluates available rice technologies looking at the heterogeneity of irrigated and rainfed ecologies in 10 regions in Ghana. Employing yield response models, profitability analysis, and adoption models, results show various practices contribute to yield improvements in irrigated and rainfed systems including chemical fertilizer use, use of certified seed of improved varieties, transplanting, bunding, leveling, use of a sawah system, seed priming, and row planting. Evidence also shows that extension services on rice production are limited and that intensifying extension services can contribute to increases in rice yield. |
| Keywords: | productivity, fertilizer, subsidies, rice, green revolution, profitability, technology adoption, agricultural policies, farm inputs, food policies, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1561&r=ino |
| By: | Chen, Yunnan; Sun, Irene Yuan; Ukaejiofo, Rex Uzonna; Xiaoyang, Tang; Bräutigam, Deborah |
| Abstract: | The question of how to promote structural transformation is central in fostering sustainable growth and poverty reduction in low-income countries in Africa. Following China’s domestic economic transformation and its growing outward investments in the developing world, we seek to understand how Chinese investment in Africa, particularly in manufacturing, may help to foster industrialization and in turn the structural transformation of African economies. We focus on Chinese investments and partnerships in Nigeria, a salient destination for Chinese manufacturing foreign direct investment in Africa, and examine the potential mechanisms of technology transfer that might catalyze such transformation. We find some small but significant cases of potential technology transfer, particularly through technical partnerships between firms. However, the future potential of such mechanisms will depend on the initiative of Nigerian actors to leverage Chinese investment to their interest. |
| Keywords: | technology transfer, industrialization, supply chains, manufacturing, |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1565&r=ino |
| By: | Teng Ma (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | This study investigates the choices of denitration technology in the Chinese thermal power sector. Using a multinominal logit model of the choices among 1,135 boilers in thermal power plants operating in China in 2013, we analyze how the choices were inuenced by government policies, the stringency of national standards, and subsidies for using speci_c technology. The results are as follows. First, China's 12th Five-year Plan might make it more attractive for plants to choose the cheapest denitration technology among the three options examined in this study. Second, technology choices differed signi_cantly by region before the 12th Five-year Plan period. These differences have disappeared, perhaps due to the economic development across all regions of China. Third, electricity price subsidies offered to plants that use denitration equipment might affect their technology choice. These results suggests that plants might choose the cheapest technology available, in order to lower investment costs. |
| Keywords: | technology choice, NOx emissions, China, thermal power sector |
| JEL: | O33 Q53 Q55 |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1644&r=ino |