|
on Technology and Industrial Dynamics |
| By: | Wörter, Martin; Rammer, Christian; Arvanitis, Spyros |
| Abstract: | This paper analyses the relationship between past innovation output, competition, and future innovation input in a dynamic econometric setting. We distinguish two dimensions of competition that correspond to the concepts of product substitutability and entry barriers due to fixed costs. Based on firm-level panel data for Germany and Switzerland we obtain consistent results for both countries. Innovation output in t-1 as measured by the sales share of innovative products is positively related to the degree of product obsolescence in t, and negatively to the degree of substitutability in t in both countries. Further, we find that rapid product obsolescence provides positive incentives for higher - primarily product-oriented - R&D investments in t+1, while high substitutability exerts negative incentives for future R&D investment. -- |
| Keywords: | Innovation,R&D,Competition |
| JEL: | O3 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10039&r=tid |
| By: | Francesco Bogliacino (JRC-IPTS); Mario Pianta (University of Urbino) |
| Abstract: | In this article we investigate – both conceptually and empirically – the relationship between three interconnected elements of the Schumpeterian “engine of progress”: the ability of industries’ R&D efforts to turn out successful innovations; the ability of innovations to lead to high entrepreneurial profits; the commitment of industries to invest profits in further technological efforts. We build a simultaneous three-equation model – with appropriate lags – and we test it at industry level – for 38 manufacturing and service sectors – on eight European countries over two time periods from 1994 to 2006. The results show that the model effectively accounts for the dynamics of European industries. Our main results are that demand and innovation are the key determinants for firm profitability; second that both technology adoption and R&D concur to improve innovative performance; third, that R&D is path dependent and is negatively related to the distance from the frontier. Finally, manufacturing and services show similar behaviour. |
| Keywords: | Profits, R&D, Innovation, System Two Stages Least Squares |
| JEL: | L6 L8 O31 O33 O52 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201005&r=tid |
| By: | Polder, Michael; Van Leeuwen, George; Mohnen, Pierre; Raymond, Wladimir |
| Abstract: | We propose a model where both R&D and ICT investment feed into a system of three innovation output equations (product, process and organizational innovation), which ultimately feeds into a productivity equation. We find that ICT investment and usage are important drivers of innovation in both manufacturing and services. Doing more R&D has a positive effect on product innovation in manufacturing. The strongest productivity effects are derived from organizational innovation. We find positive effects of product and process innovation when combined with an organizational innovation. There is evidence that organizational innovation is complementary to process innovation. |
| Keywords: | Innovation; ICT; R&D; productivity |
| JEL: | L25 O30 O32 O33 O31 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23719&r=tid |
| By: | Simon Alder |
| Abstract: | This paper provides new evidence on the relationship between innovation, competition and distance to the technology frontier, using enterprise surveys from 40 developing and transition countries. Different from previous empirical studies, the distance to frontier is measured by a firm's technology level relative to its main competitor. This self-reported comparison allows to capture a crucial determinant of a firm's business strategy and its response to competition. The findings from the empirical analysis are as follows. Firstly, firms with more advanced technology compared to their main competitors have more product innovations. Secondly, there is evidence that innovation and competition are more positively correlated at low levels of competition than at high levels. With some measures of competition, the correlation is highest at intermediate levels of competition, which suggests an inverted-U relationship. Thirdly, in certain specifications, competition is most positively correlated with product innovation when a firm is more advanced than its main competitor. In other cases, this correlation is strongest for firms that are at the same technology level as their competitors. However, the differences in the correlations between more and less advanced firms are not always significant. |
| Keywords: | Market structure, competition, innovation, technology adaption, growth |
| JEL: | O16 O31 O33 O38 O40 L16 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:zur:iewwpx:493&r=tid |
| By: | Müller, Kathrin; Peters, Bettina |
| Abstract: | This paper explores the role of R&D worker mobility on innovation performance. As one main novelty, we employ churning as a measure for worker mobility. Churning depicts the number of workers which are replaced by new ones. It is a very informative indicator since a firm may be exposed to simultaneous leave and inflow of R&D workers even if the size of R&D employment remains unchanged. Hence, we can separate the effect of replacement from net change in R&D workforce. Our results from estimating various knowledge production functions suggest an inverse u-shaped relationship. The exchange of R&D personnel fosters innovation through inter-firm knowledge spillovers and improved job-match quality up to certain threshold. The point when costs of churning exceed the benefits is reached faster if the R&D knowledge is non-duplicative. -- |
| Keywords: | innovation,churning,mobility |
| JEL: | O33 C35 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10032&r=tid |
| By: | Gaétan de Rassenfosse |
| Abstract: | This paper tackles one of the most persistent criticism of patent statistics. Because not all inventions are patented, the patent-to-R&D ratio reflects both a productivity effect (the number of inventions created per unit of research input) and a propensity effect (the proportion of inventions patented). We propose a solution to this identification problem. Our methodology uses information on the density of patent value and leads to results that are easy to interpret. It is applied to a novel data set of priority patent applications in which each patent is fractionally allocated to its inventors’ countries and to the technological areas to which it belongs. Interestingly, it is frequently observed that an industry may exhibit a low number of patents per unit of R&D in one country yet actually be more productive than the same industry in another country where the patentto-R&D ratio is higher. |
| Keywords: | identification strategy; patent family; patent value; research productivity; propensity to patent |
| JEL: | O30 O52 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/59648&r=tid |