nep-ino New Economics Papers
on Innovation
Issue of 2005‒03‒20
ten papers chosen by
Koen Frenken
Universiteit Utrecht

  1. China's Innovation System Reform and Growing Industry and Science Linkages By Kazuyuki Motohashi; Xiao Yun
  2. Canada’s Low Business R&D Intensity: the Role of Industry Composition By Aled ab Iorwerth
  3. Is There Really an Inverted U-shaped Relation Between Competition and R&D? By Poldahl, Andreas; Gustavsson Tingvall, Patrik
  4. Incentives for Developers’ Contributions and Product Performance Metrics in Open Source Development: An Empirical Exploration By Haruvy Ernan; Wu Fang; Chakravarty Sujoy
  5. Socio-economic Impact of Nanoscale Science: Initial Results and NanoBank By Lynne G. Zucker; Michael R. Darby
  6. Measuring the Impact of Research on Well-being: A Survey of Indicators of Well-being By Andrew Sharpe; Jeremy Smith
  7. Distance to the Efficiency Frontier and FDI Spillovers By Klara Sabirianova Peter; Jan Svejnar; Katherine Terrell
  8. Labour productivity, ICT and regions: The revival of Italian “dualism”? By Simona Iammarino; Cecilia Jona-Lasini; Susanna Mantegazza
  9. Does internationalisation of technology determine technological diversification in large firms? By Christian Le Bas; Pari Patel
  10. To Know is to Be: Three Perspectives on the Codification of Knowledge By Mike Bartholomaei

  1. By: Kazuyuki Motohashi; Xiao Yun
    Abstract: In this paper, linkages of S&T activities between industry and science are investigated in the context of innovation system reforms. A firm level dataset from S&T survey at National Bureau of Statistics (NBS) of PRC for about 22,000 manufacturing firms is used for econometrics analysis of firm's S&T outsourcing activities. In transition period of China's innovation system from 1996 to 2002, firm's S&T outsourcing activities have been increased significantly. In addition, positive association between basic research oriented firms and collaboration with science sector can be found. China's innovation system was suffered from Russian model, where S&T activities at public research institutes and production activities at state owned enterprises are completely separated. However, in transition period of innovation system reform toward network type one, we can find that some firms have gained their technological capability to collaborate with universities and PRIs.
    Date: 2005–03
  2. By: Aled ab Iorwerth
    Abstract: This paper looks at the reasons for Canada’s low business research and development (R&D) intensity. R&D performance across OECD countries is examined, and a detailed decomposition is undertaken of differences between Canadian and U.S. R&D levels across industries. Canada’s low aggregate R&D performance hides high research intensities in some research-intensive industries. The smaller relative size of these industries, however, combined with low R&D intensity in the motor vehicle and service industries, account for the weak aggregate R&D performance in Canada. <P> L’auteur examine les raisons pour le faible niveau de l’intensité en recherche et développement (R&D) dans le secteur privé au Canada. La performance en R&D dans les pays de l’OCDE est examinée et une décomposition détaillée est faite pour les différences entre les niveaux de R&D des industries aux États-Unis et au Canada. La faible performance agrégée du Canada en R&D cache des intensités en recherche élevées aux seins de plusieurs industries qui utilisent la R&D de façon intensive. Cependant la plus petite taille relative de ces industries en plus d’intensité très faible dans les industries des véhicules automobiles et des services enfreignent la performance globale en R&D au Canada.
  3. By: Poldahl, Andreas (FIEF); Gustavsson Tingvall, Patrik (FIEF)
    Abstract: We test whether predictions of the Aghion and Howitt (2004) model are supported by firm level data. In particular, we analyze if there is an inverted U-shaped relation between competition and R&D. Results show that the inverted U-shaped relation is supported by the Herfindahl index but not by the price cost margin. Using the Herfindahl index results suggest that breaking up monopolies increases R&D while further increases in competition most likely leads to reduced R&D. Comparing different estimators, we find that time-series based estimators typically result in less clear-cut results, probably driven by a lack of time series variation in measures of competition.
    Keywords: R&D; Competition; Firm size; Spillovers
    JEL: D40 L10 L60 O30
    Date: 2005–02–27
  4. By: Haruvy Ernan; Wu Fang; Chakravarty Sujoy
    Abstract: In open source software development, users rather than paid developers engage in innovation and development without the direct involvement of manufacturers. This paradigm cannot be explained by the two traditional models of innovation, the private investment model and the collective action model. Neither model in itself can explain the phenomenon of the open source model or its success. In order to bridge the gap between existing models and the open source phenomenon, we analyze data from a web survey of 160 open source developers. First, we investigate the motives affecting the individual developer’s contributions by comparing and contrasting the incentives from both the traditional private investment and collective action models. Second, we demonstrate that there is a common ground between the private and collective models where private returns and social considerations can coexist. Third, we explore the effect of incentives on the output of innovation—final product performance. The results show that the motivations for individual developer’s contributions are quite different from the incentives that affect product performance.
    Keywords: Open Source Software, Incentives, Altruism, Developers’ Contributions, Software Performance
    Date: 2005–03–10
  5. By: Lynne G. Zucker; Michael R. Darby
    Abstract: Research on the nanoscale has revolutionized areas of science and has begun to have an impact on, and be impacted by, society and economy. We are capturing early traces of these processes in NanoBank, a large scale, multi-year project to provide a public data resource which will link individuals and organizations involved in creating and using nano S&T across a number of activities including publishing, patenting, research funding, and commercial financing, innovation and production. We report preliminary results from our work in progress. Nanotechnology is on a similar trajectory to biotechnology in terms of patents and publication, already accounting for over 2.5% of scientific articles and 0.7% of patents. Joint university-firm research is widespread and increasing. Regional agglomeration is also evident in both science and commercial applications, with the main clusters of firm entry by both new and pre-existing firms forming around major research universities publishing in nanoscience. Nanoscience has been highly concentrated in the United States, a few European countries, and Japan, but China has recently passed Japan in total articles per year and is beginning to have a significant number of highly-cited articles.
    JEL: O31 L63 L65 M13
    Date: 2005–03
  6. By: Andrew Sharpe; Jeremy Smith
    Abstract: The main objective of this report is to conduct a survey and assessment of various indicators used by organizations, both in Canada and abroad, to measure attributes and the well-being of society at the economic, health, environmental, social, and cultural levels. The compilation includes a combination of quantitative and qualitative and objective and subjective indicators or measures. The report is divided into five major parts. The first part provides a brief overview of Canada’s research effort. The second part, by far the longest section, surveys a large number of sets of indicators and composite measures that have been developed to quantify well-being in Canada, in the United States, in OECD countries, and at the international level. The third section develops a preliminary framework for measuring the impact of research on well-being. The fourth section discusses briefly the role of indicators in public policy initiatives to improve the well-being of Canadians. The fifth and final section outlines directions for further work. The report concludes that it is entirely feasible to assess the impact of research investments in Canada on various dimensions of well-being. But it is important to specify what particular research investments and what dimensions of well-being are of interest given the many types of research investments and well-being dimensions as well as the complex interrelationships between research and well-being.
    Keywords: Well-being, Wellbeing, Well Being, Indicators, Indexes, Indices, Methodology, Economic Well-being, Economic, Social, Societal, Labour Market, Environmental, Research, R&D, Research and Development
    JEL: C82 C81 I31 I32 Z13 O30
    Date: 2005–02
  7. By: Klara Sabirianova Peter; Jan Svejnar; Katherine Terrell
    Abstract: We establish that domestically owned firms in two alternative models of emerging market economies, the Czech Republic and Russia, have not been converging to the technological frontier set by foreign owned firms. In both countries, the distance of domestic firms to the frontier grew (in all parts of the distribution) from 1992-1994 to 1995-1997 and did not change from 1995-1997 to 1998-2000. However, the distance to the frontier is orders of magnitude greater in Russia than in the Czech Republic throughout 1992-2000. We also find in both countries that domestic firms in industries with a greater share of foreign firms are falling behind more than domestic firms in industries with a smaller foreign presence. However, in the Czech Republic this “negative spillover” effect is diminished over time, whereas in Russia it continues to cause domestic firms to fall further behind. On the other hand, we find in both countries that foreign firms experience positive spillovers from other foreign firms operating in the same product market. This evidence on the dynamics of efficiency is consistent with the view that economies (firms) need to be more technologically advanced and open to competition in order to be able to gain from foreign presence.
    Keywords: foreign direct investment, productivity, convergence, frontier, knowledge spillovers, Czech Republic, Russia.
    JEL: C33 D20 F23 G32 L20 O33
    Date: 2004–09–01
  8. By: Simona Iammarino (SPRU, University of Sussex); Cecilia Jona-Lasini (Italian National Institute of Statistics (ISTAT), Rome, Italy); Susanna Mantegazza (Italian National Institute of Statistics (ISTAT), Rome, Italy)
    Abstract: Among the reasons underlying the slow economic convergence of some regions towards the national and the European Union average, the strong gap in technological endowment and innovation capacity has been indicated as one of the most important factors. The requirements of the current ‘knowledge-based economy’ and the contribution of Information and Communication Technology (ICT) to socio-economic change are very likely to have a significant impact upon regional differentials in the European Union. So far, however, it is rather unclear whether the new paradigm will spur greater socio-economic cohesion or, on the contrary, stronger territorial polarisation. This paper looks at the distribution of ICT-producing small and medium enterprises in Italy, comparing structural variables – in particular spatial and sectoral dimensions - with labour productivity levels. Ultimately, the objective is to shed some light on the role that ICT-producing firms might play with respect to regional gaps in the Italian economy, traditionally characterised by geographical polarisation and imbalances which are among the most striking in the “Europe of regions”. The first result of our analysis (carried out by using experimental micro data) is that a linkage seems to emerge between high labour productivity and the IT industry. This is in line with the insights of the economic theory of technical change, suggesting that IT-producing sectors are those where gains in productivity are by far the most evident. As expected, the geographical location of firms accounts for a good deal when looking at labour productivity levels across sectors, casting some concern on the development perspectives of the Italian regional divide.
    Keywords: regional development, Italy, Information and Communication Technology (ICT), small and medium enterprises, productivity
    JEL: R11 L63
    Date: 2004–11–10
  9. By: Christian Le Bas (Centre Walras, University of Lyon II); Pari Patel (SPRU, University of Sussex)
    Abstract: The purpose of the paper is to examine the relationship between technological diversification and internationalisation of technology for large multinational firms, operating at the world technological frontier. More precisely we address the question as to whether internationalisation determines diversification. The analysis is based on a rich database of the European patenting activity of 345 large multinational firms with the highest levels of patenting over two periods of time (1988-1990 and 1994-1996). The relationship is tested using a variety of different regression models. The results show that for the sample as a whole there is no statistically significant relationship between technological diversification and internationalisation of technology. However when the sample is disaggregated according to the predominant internationalisation strategy adopted by a firm, we find a statistically significant relationship. Our results show that in a cross-section of firms adopting a homebase- augmenting strategy, internationalisation determines the level of diversification. Thus amongst such large firms a higher level of internationalisation of technology is associated with a greater level of diversification.
    Keywords: multinational firms, technological diversification,internationalisation of technology, patenting
    JEL: O32
    Date: 2005–01–10
  10. By: Mike Bartholomaei (SPRU, University of Sussex)
    Abstract: This paper presents three perspectives on the codification of knowledge. These perspectives are formed by recent contributions in the fields of economics, business and management studies and of a group of writers who have a ‘relational’ perspective from the field of organisational behaviour. A comparison of these differing views highlights not only epistemological boundaries between different approaches but can also lead to the novel approach to studying knowledge codification presented in this paper. This approach is based on the knowledge topography of Cowan et al. (2000). This paper also develops a research approach for examining the situated intricacies of knowledge sharing in group activities as a means for identifying opportunities for knowledge codification in settings where, so far, only tacit knowledge has been seen as the major focus. Such research may enable us to bridge the dichotomy of explicit versus tacit knowledge and the three perspectives on knowledge codification presented. Moreover, in-depth case studies on the possibilities for knowledge codification can advance both the academic and practical debate. (Cowan, R., David, P.A. and Foray, D. (2000) ‘The explicit economics of knowledge codification and tacitness’, Industrial and Corporate Change, 9(2), 211-254.)
    Keywords: Knowledge Codification, Knowledge Perspectives, Situated Study
    JEL: O3 D8
    Date: 2005–03–09

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