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on Innovation |
| By: | Hong, Jifeng; Kazakis, Pantelis; Strieborny, Martin |
| Abstract: | As economic integration advances, the interdependence between upstream and downstream firms within the supply chain intensifies. Using data from Chinese listed firms (2010–2023), we examine the impact of suppliers’ environmental misconduct on downstream firms’ green innovation continuity. We show that suppliers’ environmental misconduct significantly undermines downstream firms’ green innovation continuity. In addition, suppliers’ environmental misconduct lowers downstream executives’ green cognition and increases financial constraints, reducing green innovation continuity. Further, greater bargaining power in downstream firms mitigates the negative impact of suppliers’ environmental misconduct, while closer geographic proximity amplifies its harm to green innovation continuity. Moreover, we find that China’s 2015 environmental protection law curbed suppliers’ environmental misconduct, boosting green innovation continuity in downstream firms. Finally, talent introduction policies enhance green innovation continuity, though this effect is weakened by suppliers’ environmental misconduct. Our findings add to the green supply chain literature, provide a perspective of green innovation continuity for corporate governance, and expand research on the impact of exogenous policies and environmental regulations on firms. |
| Keywords: | supply chain relationships; supply chain information transmission; environmental misconduct; green innovation continuity; green policy; financial constraints |
| JEL: | G30 L14 L22 Q51 Q55 |
| Date: | 2024–11–17 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122743 |
| By: | KATTEL Rainer; SOETE Luc |
| Abstract: | European policymakers face difficult trade-offs when aiming to increase economic growth and industrial competitiveness, stepping up efforts in green and digital economies, and coming to terms with new security realities requiring increased investments. As European and several national elections in 2024 have shown, this is not an easy circle to square. This paper makes an argument for the European Union to develop a coherent and overarching approach to security investments aligned with the current green and digital agendas and based on a broadening of two of Europe’s unique, long-standing policy frameworks. The first is the area of research and innovation policy, where the nature of the multi-level governance between the EU and its Member States has been one of “shared parallel competence”, implying that EU Member States can carry out national science and research policies in parallel to the EU. This institutional set-up offers the opportunity to broaden, in a relatively straightforward way, the current European Research and Innovation Area (ERA) into a European Defence Research and Innovation Area (EDRIA). The second framework is the EU’s regional, so-called cohesion policy, which could be described as Europe’s “secret” weapon. The integration of security issues into European regional policies represents, in the current insecure international geo-political environment, a logical, new expression of intra-regional European solidarity, and offers the opportunity to enlarge current cohesion policy towards a European territorial security policy. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139401 |
| By: | Antelo, Manel; Bru, Lluís |
| Abstract: | We consider a non-producer patentholder with a cost-reducing innovation that can be used in a homogeneous duopolistic industry. To profit from the innovation, the patentholder can decide to sell it, or license it, and if the latter, the number of licences to grant as well as the corresponding contractual terms. We show that the size (value or quality) of innovation is crucial for that decision. The patentholder prefers to sell a small-sized innovation, in which case the buyer further licenses it to the competitor by means of a pure ad-valorem royalty contract. However, if the innovation is moderate or large, the patentholder retains ownership and licenses it to both firms through 2PT contracts involving per-unit royalties. Sale is shown to be welfare superior to licensing for both consumers and firms. |
| Keywords: | Cost-reducing innovation, sale, licensing, per-unit royalty, ad-valorem royalty, welfare |
| JEL: | L13 L24 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122731 |
| By: | Kapoor, Amita; Singh, Narotam; Chaudhary, Vaibhav; Singh, Nimisha; Soni, Neha |
| Abstract: | This paper explores the transformative impact of Generative AI (GenAI) on the business landscape, examining its role in reshaping traditional business models, intensifying market competition, and fostering innovation. By applying the principles of Neo-Schumpeterian economics, the research analyses how GenAI is driving a new wave of "creative destruction, " leading to the emergence of novel business paradigms and value propositions. This research incorporates a novel AI-augmented SPAR-4-SLR framework as a key component, offering a systematic and innovative approach to analysing the rapidly evolving GenAI domain. By leveraging co-occurrence network analysis and LLM-based evaluation, this methodology identifies interdisciplinary trends and highlights diverse applications of GenAI. Beyond this, the study extends its scope to explore insights from internet-scraped data, Twitter analytics, and company reports, providing a comprehensive understanding of how GenAI is transforming businesses. This multi-faceted approach underscores GenAI's profound impact across industries such as technology, healthcare, and education, revealing its role in enhancing operational efficiency, driving product and service innovation, and creating new revenue streams. However, the deployment of GenAI also presents significant challenges, including ethical concerns, regulatory demands, and the risk of job displacement. By addressing the multifarious nature of GenAI, this paper provides valuable insights for business leaders, policymakers, and researchers, guiding them towards a balanced and responsible integration of this transformative technology. Ultimately, GenAI is not merely a technological advancement but a driver of profound change, heralding a future where creativity, efficiency, and growth are redefined. |
| Date: | 2024–11–20 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:khptm |
| By: | MCCANN Philip; JANSSEN Matthijs; STIERNA Johan (European Commission - JRC) |
| Abstract: | Mission-oriented innovation policies, as adopted by the European Union and several member states, tie top-down prioritization of societal problems to bottom-up problem-solving capacities. A critical challenge is to create resonance between (supra)national missions and the daily reality of field-level actors located in strong or weak regions with different problems, capabilities and institutions. Possibilities for synchronising those two worlds depend on how actors perceive risk and uncertainty, and on how these reframe the salience, credibility and legitimacy of missions. We conceptualise ‘local missions’ as both embedded in and re-scoping overarching missions, and discuss possibilities to support them through EU Cohesion policy. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139535 |
| By: | ROGGE Karoline; KIVIMAA Paula |
| Abstract: | With this concept paper we aim to stimulate discussions on how the new policy objective of open strategic autonomy (OSA) should be fitted together with the existing objective of achieving just sustainability transitions (ST) – and what the practical means are to pursue these dual policy objectives more effectively together. Both OSA and ST are vital for the future of Europe and require profound and rapid structural changes. Hence, recognising synergies and trade-offs between the two and seeking ways to align them is important. We do so by drawing both from academic literature and recent EU policy developments to examine these objectives and their interconnections. We start by introducing the conceptualisation and challenges around OSA and related terms, followed by explaining policy mix thinking in transition studies and recent attention to policy intervention points and transformative outcomes. We then deliberate how OSA should be addressed in the context of public policy influencing ST by integrating it as an additional policy objective into the transition policy mix – a mix that requires coordination across multiple policy fields. We discuss how security policy, green industrial policy and trade policy generate connections between ST and OSA. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139504 |