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on Innovation |
| By: | Mary O'Mahony; Michela Vecchi; Francesco Venturini |
| Abstract: | We investigate the decline of the labor share in a world characterized by rapid technological changes and increasing heterogeneity of capital assets. Our theoretical model allows for these assets to affect the labor share in different directions depending on the capital-labor substitution/complementary relationship and the workers’ skill level. We test the predictions of our model using a large cross-country, cross-industry data set, considering different forms of tangible and intangible capital inputs. Our results show that, over the 1970-2007 period, the decline of the labor share has been mainly driven by technical change and Information and Communication Technology (ICT) assets, mitigated by increasing investments in R&D based knowledge assets. Extending to other forms of intangible capital from 1995 onwards, we find that intangible investments related to innovation increase the labor share while those related to the organisation of firms contribute to its decline, particularly for the low and intermediate skilled workers. Our results are robust to an array of econometric issues, namely heterogeneity, cross sectional dependence, and endogeneity. |
| Keywords: | labor shares, technological change, ICT capital, intangible capital |
| JEL: | C23 E24 E25 O33 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:escoed:escoe-dp-2019-17&r=all |
| By: | Roberto Piazza; Yu Zheng |
| Abstract: | This paper extends the Schumpeterian model of creative destruction by allowing followers’ cost of innovation to increase in their technological distance from the leader. This assumption is motivated by the observation the more technologically ad- vanced the leader is, the harder it is for a follower to leapfrog without incurring extra cost for using leader’s patented knowledge. Under this R&D cost structure, leaders innovate to increase their technological advantage so that followers will eventually stop innovating, allowing leadership to prevail. A new steady state then emerges featuring both leaders and followers innovating in few industries with low aggregate growth. |
| Date: | 2019–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:19/294&r=all |
| By: | Suzuki, Keishun |
| Abstract: | Empirical evidence on the effect of corporate income tax on economic growth is mixed. This paper explores the ambiguous mechanism of corporate income tax by using a Schumpeterian growth model with heterogeneous innovators and endogenous market structure. Our main findings are as follows: (i) Corporate tax cuts do not necessarily enhance innovation. (ii) Corporate tax cuts are likely to have a positive growth effect when the research and development (R&D) productivity across firms is heterogeneous. (iii) R&D tax deduction increases the growth rate. (iv) Based on our calibration, the corporate tax cut in 2018 had a negative effect on economic growth and welfare in the U.S. economy. |
| Keywords: | Corporate income tax, R&D tax deduction, Innovation, Heterogeneity, Endogenous entry, Market competition |
| JEL: | H21 H25 O31 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:97829&r=all |
| By: | Strandburg, Katherine J.; Frischmann, Brett M.; Madison, Michael J (University of Pittsburgh) |
| Abstract: | Governing Medical Knowledge Commons makes three claims: first, evidence matters to innovation policymaking; second, evidence shows that self-governing knowledge commons support effective innovation without prioritizing traditional intellectual property rights; and third, knowledge commons can succeed in the critical fields of medicine and health. The editors' knowledge commons framework adapts Elinor Ostrom's groundbreaking research on natural resource commons to the distinctive attributes of knowledge and information, providing a systematic means for accumulating evidence about how knowledge commons succeed. The editors' previous volume, Governing Knowledge Commons, demonstrated the framework's power through case studies in a diverse range of areas. Governing Medical Knowledge Commons provides fifteen new case studies of knowledge commons in which researchers, medical professionals, and patients generate, improve, and share innovations, offering readers a practical introduction to the knowledge commons framework and a synthesis of conclusions and lessons. |
| Date: | 2019–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:lawarx:7udfb&r=all |
| By: | Angus C. Chu; Guido Cozzi; Yuichi Furukawa; Chih-Hsing Liao |
| Abstract: | This study explores the effects of minimum wage on automation and innovation in a Schumpeterian growth model. We find that raising the minimum wage decreases the employment of low-skill workers and has ambiguous effects on innovation and automation. Specifically, if the elasticity of substitution between low-skill workers and high-skill workers in production is less (greater) than unity, then raising the minimum wage leads to an increase (a decrease) in automation and innovation. We also calibrate the model to aggregrate data to quantify the effects of minimum wage on the macroeconomy. |
| Keywords: | minimum wage, unemployment, innovation, automation |
| JEL: | E24 O30 O40 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:liv:livedp:201912&r=all |
| By: | Angus C. Chu; Yuichi Furukawa; Sushanta Mallick; Pietro Peretto; Xilin Wang |
| Abstract: | This study explores the dyanmic effects of patent policy on innovation and income inequality in a Schumpeterian growth model with endogenous market structure and heterogeneous households. We find that strengthening patent protection has a positive effect on economic growth and a positive or an inverted-U effect on income inequality when the number of differentiated products is fixed or in the short run. However, when the number of products adjusts endogenously, the effects of patent protection on growth and inequality become negative in the long run. We also calibrate the model to US data to perform a quantative analysis and find that the long-run negative effect of patent policy on inequality is much larger than its short-run positive effect. This result is consistent with our empirical finding from a panel vector autoregression. |
| Keywords: | minimum wage, unemployment, innovation, automation |
| JEL: | D30 O30 O40 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:liv:livedp:201911&r=all |
| By: | Giuliana Battisti; Paul Stoneman |
| Abstract: | In this paper an encompassing, output orientated, indicator of the innovativeness of firms which defines innovation as the successful exploitation of new ideas, is formalised as the contribution of innovative activity to firm profit growth and measured as the difference between growth in the (endogenously determined) nominal profits of the firm and an appropriately weighted sum of exogenously determined (i) growth in wage rates and (ii) inflation/demand shifts in the market for the firm’s output. The measure can be calculated for any firm using publicly available accounting data. For an unbalanced sample of 16,457 quoted firms over the period 1988-2012, operating in 39 sectors, and in 38 countries, the mean value of the innovativeness measure over the whole panel data set is estimated as 5.15% p.a. Statistically significant differences in innovative performance within and across countries, sectors and time are identified. |
| Keywords: | Firms, innovativeness, international, measurement |
| JEL: | O32 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:nsr:escoed:escoe-dp-2019-19&r=all |
| By: | Nairi Babayan (H&H Trade FZCO); Tsoghik Grigoryan (Higher Colleges of Technology) |
| Abstract: | Many approaches seek to describe the dynamic process of the implementation of innovation adoption. However, little is known about the factors linked to choices to adopt innovations and how the likelihood of adoption of innovations can be increased. The purpose of this review is to evaluate the recent practices of innovation adoption approaches in the field of education in the integration of mobile technology in the classroom. It presents an overview of the theories and approaches used to examine the process and effects of introducing new teaching methods into the educational system. The better the adoption approaches are understood, the more likely adoption challenges are addressed thus leading to primary operations. |
| Keywords: | Adoption, educational research, innovation adoption approaches, innovation adoption theories |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9911049&r=all |
| By: | Angus C. Chu; Pietro Peretto |
| Abstract: | This study explores the evolution of income inequality in an economy featuring an endogenous transition from stagnation to growth. We incorporate heterogenous households into a Schumpeterian model of endogenous takeoff. In the pre-industrial era, the economy is in stagnation, and income inequlaity is determined by an unequal distribution of land ownership and remains stationary. When takeoff occurs, the economy experiences innovation and economic growth. In this industrial era, income inequality gradually rises until the economy reaches the balanced growth path. Finally, we calibrate the model for quantitative analysis and compare the simulation results to historical data in the UK. |
| Keywords: | income inequality, innovation, economic growth, endogenous takeoff |
| JEL: | D30 O30 O40 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:liv:livedp:201910&r=all |
| By: | Renai Jiang (School of Economics and Finance, Xian Jiaotong University); Daniel Tortorice (Department of Economics, College of the Holy Cross); Zhaohui Xuan (Chinese Academy of Science and Technology for Development) |
| Abstract: | Beginning in 1999, the Chinese government initiated a substantial restructuring of its roughly 4,000 research institutes. While many were given specific classifications to designate their institute objectives, many were left unconverted. We use a novel, fifteen-year panel dataset on China’s system of research institutes to examine if unconverted institutes were disadvantaged relative to their converted counterparts. Unconverted institutes had a higher risk of exiting the research institute system and lower productivity growth than converted research institutes. However, their revenue growth kept pace with converted institutes and they continued to patent at similar rates. Finally, their publication of scientific papers declined relative to converted institutes. We conclude that the restructuring program has not left the unconverted institutes behind. |
| Keywords: | China, R&D, Research Policy, Patenting, Research Institutes |
| JEL: | O31 O32 O38 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:1909&r=all |
| By: | Renai Jiang (School of Economics and Finance, Xian Jiaotong University); Daniel Tortorice (Department of Economics, College of the Holy Cross); Zhaohui Xuan (Chinese Academy of Science and Technology for Development) |
| Abstract: | We use a novel, fifteen-year panel dataset on China’s system of research institutes to examine the determinates of knowledge production, the role external factors play in increasing research productivity, and the extent to which distance mitigates these spillovers. We find robust evidence that knowledge inputs like R&D personnel increase patenting and publication. External R&D spending in the institute’s province and the institute’s industry knowledge stock spill over into increased knowledge production. We find that being located on average farther from institutes engaged in similar research reduces the impact of these spillovers. These results have important policy implications as China attempts to increase economic activity away from the coast and aims to improve the productivity of its research institute sector. |
| Keywords: | China, R&D, Research Policy, Knowledge Spillovers |
| JEL: | O31 O32 O33 L2 |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:1910&r=all |
| By: | Raul Caruso (European Center of Peace Science, Integration and Cooperation CESPIC; Catholic University 'Our Lady of Good Counsel'); Antonella Biscione (European Center of Peace Science, Integration and Cooperation CESPIC; Catholic University 'Our Lady of Good Counsel'); Annunziata de Felice (Department of Law, University of Bari Aldo Moro) |
| Abstract: | This paper explores the demand-pull, technology-push and regulation factors influencing the environmental innovation strategies. We focus on a subset of manufacturing firms of a group of European Transition Countries. The data available to investigate the driving factors that lead to eco-innovate are taken from the Community Innovation Survey data (CIS 2014). The data is a cross-section covering the three-year period between 2012 and 2014. We employ a multivariate probit model to observe the effect of several drivers on eco-innovation, captured by means of different measures. Empirical findings highlight that: (i) some drivers are common to some types of eco-innovation; (ii) regulation does have a positive impact on all drivers. The latter provides a clear-cut implication for policy-making. Broadly speaking, in transition economies public policies and invectives appear to trigger environmental innovation much more than demand-pull factors. |
| Keywords: | environmental innovation, European Transition countries, demand-pull, technology-push, regulation |
| JEL: | Q55 Q58 L6 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:pea:wpaper:1005&r=all |
| By: | Guilherme Strifezzi Leal; David Turchick |
| Abstract: | We include elastic labor supply and risk aversion in a standard vertical innovation model in order to address four main questions. First, under what conditions will we find workers in the R&D sector of the economy? Second, under what conditions will these workers actually do any research? Third, can a simple redistributive policy provide an escape route from the so-called no-growth trap? And fourth, to what extent is this policy capable of correcting the inherent inefficiencies of the model? |
| Keywords: | labor supply; Schumpeterian growth; income redistribution; no-growth trap; research effort |
| JEL: | H21 O3 O4 |
| Date: | 2019–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2019wpecon54&r=all |