nep-ino New Economics Papers
on Innovation
Issue of 2005‒04‒30
five papers chosen by
Koen Frenken
Universiteit Utrecht

  1. Knowledge-based Entrepreneurship: The Organizational Side of Technology Commercialization By U. Witt; C. Zellner
  2. MNEs and Industrial Structure in Host Countries:A Mean Variance Analysis of Ireland’s Manufacturing Sector By Colm Kearney; Frank Barry
  3. Computer Use and Earnings By Mary A. Silles
  4. Knowledge Sources of Innovation in a Small, Open Economy: The Case of Singapore By Poh Kam Wong; Yuen Ping Ho
  5. Credit Rationing and Internal Ratings in the face of Innovation and Uncertainty By Guido Fioretti

  1. By: U. Witt; C. Zellner
    Abstract: New knowledge with commercial potential is continually created in academic institutions. How is it turned into economically valuable businesses? This paper argues that the transfer is an entrepreneurial process. To understand this, the actions and the constraints characteristic for the entrepreneurial reshaping of the division of labor must be recognized. In the case of knowledge-based entrepreneurship, specific constraints result from the peculiarities of scientific knowledge – epitomized by contrasting tacit and encoded knowledge. Scientifically trained labor is required for transferring both forms of knowledge. However, the mode of transfer differs crucially and shapes the organizational form of commercializing new scientific knowledge.
    JEL: L23 M13 O31 O32
  2. By: Colm Kearney; Frank Barry
    Abstract: We use mean-variance analysis to demonstrate the importance of a hitherto neglected benefit of enticing MNEs to locate in small and medium-sized countries. During the 25 years from 1974 to 1999, over 1000 foreign MNEs have located in Ireland, and they have raised their share of all manufacturing jobs in the country from one-third to one-half. The foreign MNEs tend to operate in high-technology sectors, and they grow faster with greater volatility than the traditional low-technology indigenous firms. Because they are imperfectly correlated with the indigenous sectors, however, the foreign MNEs have helped to create a more completely diversified manufacturing sector in the host country that can grow faster without a commensurate rise in volatility and risk.
    Keywords: FDI, MNEs, industrial structure, Ireland.
    Date: 2005–01–28
  3. By: Mary A. Silles (Institute of Economics, University of Copenhagen)
    Abstract: This paper uses longitudinal data for the UK to investigate the observed correlation between computer use at work and labor market earnings. Our findings suggest that there are no returns to computer use at work. This is evidence against the productivity interpretation of these returns and supports the view that the premium can be attributed to unobserved characteristics.
    Keywords: technological change; earnings
    JEL: I21 J31
    Date: 2005–04
  4. By: Poh Kam Wong (Entrepreneurship Centre, National University of Singapore); Yuen Ping Ho (Entrepreneurship Centre, National University of Singapore)
    Abstract: By tracing the flows of patent citation of prior patents and scientific journal articles, we investigate the sources of knowledge for innovation output in Singapore, a small, highly open economy that has traditionally been significantly dependent on foreign multinational corporations (MNCs). We found that the local production of new knowledge by indigenous Singaporean firms depends disproportionately on technological knowledge produced by MNCs with operational presence in Singapore and scientific knowledge generated by foreign universities. Locally produced new knowledge by indigenous firms and local universities constitute an insignificant, albeit rapidly growing, source for innovation in Singapore.
    Keywords: innovation system, patent citation, Singapore, knowledge sources
    JEL: O P
    Date: 2005–04–28
  5. By: Guido Fioretti (University of Bologna)
    Abstract: Some empirical investigations are pointing to the fact that high-tech firms are subject to credit rationing to a higher extent than the average. This excess of credit rationing may not be due to information asymmetries, but rather to the inability of credit institutions to screen projects in novel fields. This article provides a model of this phenomenon and explores its implications in the light of recent changes in the screening procedures of major banks. In particular, the changes to be made in order to comply with the ``Basel II'' accord emphasize the impact of screening procedures on credit rationing.
    Keywords: Credit rationing, High-Tech Firms, Internal Rating Systems, Basel II
    JEL: G
    Date: 2005–04–28

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