nep-ino New Economics Papers
on Innovation
Issue of 2005‒05‒14
nineteen papers chosen by
Koen Frenken
Universiteit Utrecht

  1. European Productivity Gaps: Is R&D the Solution? By Christoph Meister; Bart Verspagen
  3. The Impact of Intellectual Property Rights on International Self-Employed Rates By Andrew Burke; Stuart Fraser
  4. Nascent entrepreneurship and the level of economic development By Sander Wennekers; André van Stel; Roy Thurik; Paul Reynolds
  5. Firm Location, Corporate Structure, R&D Investment, Innovation and Productivity By Johansson, Börje; Lööf, Hans; Rader Olsson, Amy
  6. Regional Productivity and Accessibility to Knowledge and Dense Markets By Karlsson, Charlie; Pettersson, Lars
  7. Implications of Product Patents : Lessons from Japan By Reiko Aoki; Tomoko Saiki
  8. Is Academic Science Raising Innovative Productivity? Theory and Evidence from Firm-Level Data By Lee Branstetter; Reiko Aoki
  9. Patents and R & D: The tournament effect By Prabal Roy Chowdhury
  10. Characterizing the Production Process: A Disaggregated Analysis of Italian Manufacturing Firms By Giulio Bottazzi; Marco Grazzi; Angelo Secchi
  11. Commercialisation Strategies of Technology based European SMEs: Markets for Technology vs. Markets for Products By Paola Giuri; Alessandra Luzzi
  12. Intellectual Property Rights and Market Dynamics By Fabrizio Cesaroni; Paola Giuri
  13. ICT, Skills and Organisational Change: Evidence from a Panel of Italian Manufacturing Firms By Paola Giuri; Salvatore Torrisi; Natalia Zinovyeva
  14. Performance improvement through supply chain collaboration: conventional wisdom versus empirical findings By Vereecke, Ann; Muylle, Steve
  15. In search for the heffalump: an exploration of the cognitive style profiles among entrepreneurs By Bouckenooghe, Dave; Van den Broeck, Herman; Cools,Eva; Vanderheyden, Karlien
  16. The Role of R&D Technology in Asymmetric Research Joint Ventures By Sami Dakhlia; Flavio M. Menezes; Akram Temimi
  17. Policy framework and systems management of global climate change By Minh Ha-Duong; Jean-Charles Hourcade
  18. The Static and Dynamic Efficiency of Instruments of Promotion of Renewables By D. Finon; P. Menanteau
  19. Upgrading in global value chains: lessons from latin american clusters By Elisa Giuliani; Carlo Pietrobelli; Roberta Rabellotti

  1. By: Christoph Meister; Bart Verspagen
    Abstract: This paper investigates the potential impact of increased business R&D efforts in Europe on the total factor productivity gap between European and U.S. industry. The paper addresses Europe’s ambition, expressed at the 2000 Lisbon Summit to become “the most competitive and dynamic knowledge-based economy in the world”, and the 3% R&D intensity target for Europe formulated at the 2002 Barcelona Summit. Based on existing empirical models from the literature on productivity and R&D expenditures, we provide projections on the expected productivity impacts of increased R&D in manufacturing industries. The results suggest that raising European R&D is not a complete solution to the European productivity backlog relative to the U.S. We also find that the most dramatic impacts may be expected from raising R&D in so-called low-tech sectors.
    Keywords: Technology, Economic growth, R&D, Europe, United States
    JEL: O38 O47 P52
    Date: 2005
  2. By: Clemente Forero; Andrés Zambrano
    Abstract: The purpose of this paper is to propose a characterization, different from the traditional ones, of developed and developing countries, in terms of science and technology. First, we identify the generating processes of the publication and patent series of the countries. Then we relate the development stages of the countries (Banze (2000)) with the dynamics of the series. The results show that is not necessary to have a strong scientific infrastructure in order to develop the technological field. For some countries, the technological innovation is the mean responsible of the national system of innovation trajectory. El objetivo de este documento es proponer una caracterización, distinta a las convencionales, de países desarrollados y en desarrollo, en términos de ciencia y tecnología. En primer lugar, identificamos los procesos generadores de las publicaciones y las patentes de los países. Luego relacionamos las etapas de desarrollo de los países (Banze (2000)) con la dinámica encontrada en las series. Los resultados indican que no es necesario tener una infraestructura científica fuerte para desarrollar el ámbito tecnológico. Para algunos países, es la innovación tecnológica la principal responsable de la trayectoria del sistema nacional de innovación.
    Keywords: series de tiempo
    JEL: C22
    Date: 2004–11–01
  3. By: Andrew Burke; Stuart Fraser
    Abstract: The importance of IPR regimes for large firm innovation is well documented but less is known about their impact on typically less innovative self-employed entrepreneurship. The paper estimates the net effect of the various elements that comprise an IPR regime including the political system, the laws, conventions and institutions as well as a general familiarity with and respect for IPR related products. Cumulatively, the analysis indicates that a well developed IPR regime raises self-employment rates significantly; by as much as 31% among males and 13% among females. Since the self-employed sector is possibly the only segment of the enterprise base where IPRs may be expected (and frequently assumed) to have a negative effect the research finding of a positive effect provides a useful contribution to our empirical understanding of the welfare effects of IPRs on the entrepreneurial economy more widely. The research also indicates that the formulation of effective enterprise policy which attempts to stimulate the less innovative self-employed sector of the entrepreneurial economy- particularly in developing countries - may need to look beyond the usual focus on industrial policy and consider wider political economy IPR determinants of self-employment activity.
    Keywords: self-employment, intellectual property rights, imitation
    JEL: L2 O33 O34 L2
    Date: 2005–05
  4. By: Sander Wennekers; André van Stel; Roy Thurik; Paul Reynolds
    Abstract: Based upon two strands of literature, this paper hypothesizes a U-shaped relationship between a country's rate of entrepreneurial dynamics and its level of economic development. This would imply a different scope for entrepreneurship policy across subsequent stages of development. Regressing GEM's 2002 data for nascent entrepreneurship in 36 countries on the level of economic development as measured either by per capita income or by an index for innovative capacity, we find support for a U-shaped relationship. Testing our results against several control variables, evidence is again found for this relationship with economic development, in addition to significant effects of the business ownership rate (+), social security expenditure (-), aggregate taxes (+) and population growth (+). The results suggest that a 'natural rate' of nascent entrepreneurship is to some extent governed by 'laws' related to the level of economic development. For the most advanced nations, improving incentive structures for business start-ups and promoting the commercial exploitation of scientific findings offer the most promising approach for public policy. Developing nations, however, may be better off pursuing the exploitation of scale economies, fostering foreign direct investment and promoting management education.
    Keywords: Nascent entrepreneurship, economic development
    JEL: J23 L16 M13 O11
    Date: 2005–01
  5. By: Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Rader Olsson, Amy (CEFIN)
    Abstract: This study elucidates how firm location and corporate structure influence R&D-intensity, external collaboration on innovation, return on R&D and economic performance. The study, based on 1,907 firm level observations, essentially compare a functional region with four other regional areas in Sweden. In this context, the Stockholm region is assumed as an integrated functional urban region with innovation-proximity characteristics. The paper examines systematically the influence of location versus various firm characteristics. The econometric results suggest the following: First, a typical Stockholm firm has a significantly larger likelihood than other firms of being engaged in innovation activities. Second, among innovative firms, the R&D intensity and global collaboration on innovation is primarily determined by its corporate structure, not geographic location. Third, the embeddedness in regional and national scientific and vertical innovation systems is relatively more intense outside Stockholm. Finally, the advantage of being located within Sweden’s most strongest concentration of R&D spending, universities, human capital and multinational enterprises with their global networks is reflected by a superior return on R&D investments and higher productivity, when controlling for firm size, human capital, physical capital, R&D-intensity, market orientation and sector classification.
    Keywords: Regional economy; multinational companies; R&D; innovation; innovation system
    JEL: C21 G34 L22 O33
    Date: 2005–05–09
  6. By: Karlsson, Charlie (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Pettersson, Lars (Jönköping International Business School)
    Abstract: Accessibility to knowledge and local service markets can be assumed to explain regional growth performance. The role of regional supply of services and educated labour with respect to regional development are stressed by many researchers. In this paper we make an empirical analysis using panel data for Swedish municipalities. The purpose is to analyse the relationship between regional productivity measures as gross regional product per square kilometre and accessibility to educated labour. We also acknowledge the extension of the regional economy in terms of functionality and access to population as a measure of accessibility to labour and to purchasing power. We estimate first a cross-section model by using OLS. Second we employ a panel data model, using time distance access to population and the share local labour force with longer higher education as explanatory variables. In the analysis we compare the results for Sweden from the different models with other studies in this field. We find that local externalities for increasing returns are very important in the Swedish economy. Our estimated models yields a high level of goodness of fit, and the results indicates that the elasticity for longer higher education and population density are around unity in the Swedish economy with respect to performance of regional gross domestic product per square kilometre
    Keywords: Agglomeration; Productivity; Sweden; Spatial; Regional; accessibility
    JEL: D24 J24 O47 R11 R23 R40
    Date: 2005–05–09
  7. By: Reiko Aoki; Tomoko Saiki
    Abstract: Product (material) patents were introduced to Japan in 1976. We examine data prior to 1976 and years immediately following to determine the law's effect on domestic pharmaceutical market, innovation by pharmaceutical firms, and relationship of the Japanese market to the rest of the world. There is evidence that the domestic market became more concentrated and quality of pharmaceutical innovation changed after the introduction. This is because introduction of product patents is different from simple strengthening of existing technology protection such as increasing breadth.
    Date: 2005–04
  8. By: Lee Branstetter; Reiko Aoki
    Date: 2005–04
  9. By: Prabal Roy Chowdhury (Indian Statistical Institute, New Delhi)
    Abstract: We identify a new route through which patent protection may affect R&D incentives, the tournament effect. It may decrease R\&D incentives, in which case patent protection may either adversely affect the level of R&D, or may discourage licensing. In either case welfare may fall.
    Keywords: Patents, R&D incentive, Tournament effect, Licensing
    JEL: O31 O34 O38
    Date: 2005–04
  10. By: Giulio Bottazzi; Marco Grazzi; Angelo Secchi
    Abstract: This paper provides a description of the production process by comparing different frameworks in which to analyze the relations between inputs and output. The analysis is performed on a representative sample of Italian manufacturing firms. We employ both parametric and non-parametric analysis. The last allows to detect presence of heterogeneity in the way the production is carried out within each sector. We review some traditional issues in the econometrics of production function estimation and explain how some of them can be solved exploiting the cross-sectional time-series nature of data. Results of the econometric analysis show that coefficients estimates tend to be robust with respect to different models employed. Analysis of levels of labor productivity confirms presence of significant intra-sector heterogeneity which persists over time.
    Keywords: Input and output relation, Panel data, Returns to scale .
  11. By: Paola Giuri; Alessandra Luzzi
    Abstract: This paper focuses on European small-medium "serial innovators" at the beginning of the 1990s and provides an empirical basis to answer the following questions: who are the upstream specialized small-medium technology producers? How are they distributed across countries? Are there technologies in which they show a relative advantage? By focusing on firms? history, activities, and the description of events obtained by different data sources, we also investigates if technology based SMEs choose to implement a strategy based on the commercialisation of their technologies or if they invest in the complementary assets of production, marketing and distribution becoming micro-chandlerian firms. Through this analysis we are able to propose a taxonomy of technology based SMEs? strategies in the market for technology, in the market for embedded technologies and in the market for products.
    Keywords: SMEs, Technology Strategies, Licensing.
  12. By: Fabrizio Cesaroni; Paola Giuri
    Abstract: Two opposite models are currently operating in the modern economy, the strong intellectual property rights (IPR) model, and the open source/open science model. They have traditionally been applied to alternative institutional contexts. The strong IPR model has been associated to the business environment, while the open science model has been associated to the academic or research system. More recently, a strengthening of the IPR system has occurred in the public research system, and open science models have been adopted in private sectors like the open source software. This paper discusses these different models and their implications on the innovative activity of firms and economies, and the market dynamics. One of the main benefits deriving from a strong IPR system is that it encourages the entry of new technology-based firms and the commercialisation of technologies in markets for technologies. At the same time, an increased patent protection is also associated to potential costs, such as those arising from a excessive fragmentation of property rights, an abuse of patent protection for strategic reasons (sleeping and blocking patents), and an increase in litigation costs.
    Keywords: Intellectual Property Rights, Patents, Patent Policy, Open Science, Open Source Software, Technology Commercialisation and Diffusion
  13. By: Paola Giuri; Salvatore Torrisi; Natalia Zinovyeva
    Abstract: This paper explores the complementarity between skills, organizational change and investments in information and communication technology (ICT). Our work contributes to the literature on the effects of ICT by testing the hypothesis of complementarity in a panel of 540 Italian manufacturing firms during the period 1995-2000. Our analysis provides strong support to the hypothesis of complementarity between skills and ICT (which is at the core of the skill-biased technical change theory). We also find some evidence in favour of the skill-biased organizational change hypothesis. The results obtained by drawing on different statistical methods suggest that interactions among ICT, skills and organizational change are complex and non-linear and difficult to explain.
    Keywords: Organisational Change, ICT Investment, Workplace Organization, Human Capital, Productivity
  14. By: Vereecke, Ann; Muylle, Steve
    Abstract: Supply chain collaboration is claimed to yield significant improvements in multiple performance areas: it is believed to reduce costs, to increase quality, to improve delivery, to augment flexibility, to cut procurement cost and lead time, and to stimulate innovativeness. Yet empirical support for the relationship between supply chain collaboration and performance improvement is scarce. Our research adds to this emerging stream of research by providing empirical evidence from the engineering/assembly industries, based on data collected through the International Manufacturing Strategy Survey (IMSS) in Europe. The study reveals that supply chain collaboration is no guarantee for success: performance improvement is only weakly related to the extent of collaboration with customers or suppliers. However, strong improvers in multiple performance areas are found to be heavily engaged in collaboration projects with customers and suppliers, through extensive information exchange and higher levels of structural coordination.
    Keywords: supply chain management, collaboration, performance improvement Note
    Date: 2005–03–11
  15. By: Bouckenooghe, Dave; Van den Broeck, Herman; Cools,Eva; Vanderheyden, Karlien
    Abstract: n this article we reopen the search for those features that distinguish entrepreneurs from non-entrepreneurs. Because the trait psychology approach failed to fulfill this promise the cognitive psychology approach was adopted. The exploration of cognitive styles among 497 entrepreneurs and 521 non-entrepreneurs in Flanders distinguishes six profiles: omnipotent thinkers, lazy thinkers, pacesetters, experts, inventors, and implementors. A comparison of both groups yields differences in the prevalence of inventors and implementors. We find significantly more inventors in the group of entrepreneurs and significantly more implementors in the group of non-entrepreneurs. Finally, the results of this study also indicate that entrepreneurs may differ in the cognitive style profiles they hold.
    Keywords: cognitive styles, entrepreneurs, non-entrepreneurs, cluster analysis Note
    Date: 2005–05–09
  16. By: Sami Dakhlia (University of Alabama); Flavio M. Menezes (Australian National University & EPGE/FGV); Akram Temimi (University of Alabama)
    Abstract: We characterize asymmetric equilibria in two-stage process innovation games and show that they are prevalent in the different models of R&D technology considered in the literature. Indeed, cooperation in R&D may be accompanied by high concentration in the product market. We show that while such an increase may be profitable, it may be socially inefficient.
    Keywords: Research and Development, Research Joint Ventures, Process Innovation Games
    JEL: D43 L1 O32
    Date: 2005–05–12
  17. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales;Ecole Nationale du Génie Rural des Eaux et Forêts;Ecole Nationale des Ponts et Chaussées); Jean-Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - - CNRS : UMR8568 - Ecole des Hautes Etudes en Sciences Sociales;Ecole Nationale du Génie Rural des Eaux et Forêts;Ecole Nationale des Ponts et Chaussées)
    Abstract: Climate change is representative of a general class of environmental issues where decisions have to be taken under controversies. The policy framework for these kinds of decisions is defined by three important traits: scientific ignorance, mediatization and the need for innovation. Scientific ignorance is an issue here because decisions must be taken before the end of scientific controversies about the predictability of future climate. Mediatization is key because agents can't have a sensible experience of the global climate change, and some interest-holders (future generations, distant countries) cannot participate directly in the decision. Third, the need for innovation is crucial because today's technology offers the only alternative between fossil fuels and nuclear power as a main primary energy source.In the case of climate change, the institutional context is the United Nations Framework Convention on Climate Change. The making of global environmental policy is framed not upon a hypothetical code of international law (there is no such a thing), but upon a body of doctrine arising from consistent reference to a given set of principles. The key principles are sustainability (satisfying the need of present generations without preventing future generations to satisfy theirs), precaution (ignorance is not an excuse for inaction), the common but differentiated responsibility (developed countries take the lead in action against climate change), and economic efficiency (which lead to prefer flexible instruments over blind regulation).Given the scientific controversies and the fuzziness of guiding principles, no clear-cut demonstration could justify the choice of a theoretically optimum course of action, even in the short term. Historically, climate negotiations can be seen as an oscillation between two regulation modes. On one side is coordinated policies and measures, where countries adopt an uniform international rate of carbon tax. On the other side is emission trading, where a defined emission reduction target is allocated to each country.
    Keywords: changement climatique; Protocole de Kyoto
    Date: 2004–02–10
  18. By: D. Finon (LEPII - Laboratoire d'économie de la production et de l'intégration internationale - - CNRS : FRE2664 - Université Pierre Mendès-France - Grenoble II); P. Menanteau (LEPII - Laboratoire d'économie de la production et de l'intégration internationale - - CNRS : FRE2664 - Université Pierre Mendès-France - Grenoble II)
    Abstract: This paper deals with a comparative analysis of the economic and social efficiency of the instruments used to promote renewable energy sources (RES), first from a static standpoint and then using dynamic criteria to assess their ability to stimulate technological progress and cost reduction. First, the instruments are analysed in relation to the classical discussion of environmental policy that opposes price-based instruments versus quantity-based instruments in an uncertain environment (feed-in tariffs as price based system on one hand, quotas + green certificates, competitive bidding as quantity-based instruments on the other hand). Next, the incentives to invest and innovate in the context of each framework are analysed in relation to the sharing of the surplus associated with each of them between producers/constructors and consumers or the public budget. Finally, the paper looks at the overall cost-efficiency of the policies on the basis of each instrument, by referring to factual evidence in European experiences. It concludes that if social preference is attached to climate change prevention and reflected in a high quantitative objective for renewables, sliding scale feed-in tariffs are a good compromise in order to promote technical progress and national RES industry also. The quota/certificate system also presents a number of advantages in terms of static efficiency, but its ability to stimulate innovation still has to be confirmed by experience.
    Keywords: énergies renouvelables;progrès technologique;certificat vert
    Date: 2004–03–16
  19. By: Elisa Giuliani; Carlo Pietrobelli; Roberta Rabellotti (SEMEQ Department - Faculty of Economics - University of Eastern Piedmont)
    Abstract: The literature on industrial districts in advanced and less developed countries has shown that clustering helps local enterprises overcome growth constraints and compete in distant markets. Nevertheless, recent contributions have stressed that more attention needs to be paid to external linkages and to the role played by global buyers to foster upgrading at cluster level. In this study, we contribute to this debate focusing on the analysis of the relationships existing between clustering, global value chains, upgrading and sectoral patterns of innovation in Latin America. We find that sectoral specificities matter and influence the mode and the extent of upgrading in clusters integrated in global value chains.
    Keywords: Latin America, small enterprise, industrial policy, clusters, global value chain, innovation
    JEL: O1 O3 O54 R11
    Date: 2004–02

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