nep-ino New Economics Papers
on Innovation
Issue of 2005‒07‒03
thirteen papers chosen by
Koen Frenken
Universiteit Utrecht

  1. Productivity growth in UK industries, 1970-2000: structural change and the role of ICT By Nicholas Oulton; Sylaja Srinivasan
  2. Designing for learning and innovation at work By Sluis, Lidewey E.C. van der
  3. Managing drivers of innovation in construction networks By Bossink, Bart A.G.
  5. The Influence of University Research on Industrial Innovation By Jinyoung Kim; Sangjoon John Lee; Gerald Marschke
  6. Biomedical Academic Entrepreneurship Through the SBIR Program By Andrew A. Toole; Dirk Czarnitzki
  7. Early Academis Science and the Birth of Industrial Research Laboratories in the U.S. Pharmaceutical Industry By Megan MacGarvie; Jeffrey L. Furman
  8. "Innovation Versus Diffusion: Determinants of Productivity Growth Among Japanese Firms" By Kiyohiko G. Nishimura; Takanobu Nakajima; Kozo Kiyota
  9. Knowledge Flows and R&D Co-operation: Firm-level Evidence from Germany By Tobias Schmidt
  10. I Like the Way you Move - An Empirical Investigation into the Mechansimns Behind First Mover and Follower Strategies By Wolfgang Sofka; Tobias Schmidt
  12. Biodiscovery and Intellectual Property Rights: A Dynamic Approach to Economic Efficiency By Tom Dedeurwaerdere; Vijesh Krishna; Unai Pascual
  13. Consumer Benefits of Labels and Bans on GMO Foods: An Emprical Analysis Using Choice Experiments By Fredrik Carlsson; Peter Frykblom; Carl-Johan Lagerkvist

  1. By: Nicholas Oulton; Sylaja Srinivasan
    Abstract: This paper uses a new industry-level dataset to quantify the roles of structural change and information and communication technology (ICT) in explaining productivity growth in the United Kingdom, 1970-2000. The dataset is for 34 industries covering the whole economy, of which 31 industries are in the market sector. Using growth accounting, we find that ICT capital accounted for 13% of productivity growth in the market sector in 1970-79 (ie 0.47 percentage points out of 3.62% per annum growth of GDP per hour), 26% in 1979-90, and 28% in 1990-2000. In 1995-2000 the proportion rises to 47%. ICT capital, despite only being a small fraction of the total capital stock, contributed as much to growth as non-ICT capital in 1990-2000 and getting on for twice as much in 1995-2000. Econometric evidence also supports an important role for ICT. Total factor productivity (TFP) growth slowed down in 1995-2000, but we find econometric evidence that a boom in 'complementary investment', ie expenditure on reorganisation that accompanies ICT investment but is not officially measured as investment, could have led to a decline in the conventional measure of TFP growth.
  2. By: Sluis, Lidewey E.C. van der (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
    Abstract: In this article we focus on aspects of organisations that they can use to design workplaces in such a way that individual learning and organisational innovation can blossom. Recent studies in this field reported positive associations between organisational characteristics stimulating learning and innovation and performance of the firm. However, it stays unclear which factors are the most prominent facilitators or inhibitors of learning and innovation. This study provides directions for designing the workplace in order to stimulate on-the-job learning by employees, and by this, to organisational innovation. A range of both individual and organisational factors seems to be the building blocks of routes to workplace learning and innovation. Notwithstanding the way an organisation implement these routes and, also, measures the outcomes, it stays clear that designing for learning and innovation is beneficial for organisations in terms of their sustainable competitive advantage. Based on a literature review, we selected the most important organisational aspects to focus on in order to encourage learning and innovation in organisations. Furthermore, we derived from interviews with Dutch managers in what way and in what extent these aspects can be recognised in their organisations. Finally, various ways in which organisations can design the workplace for learning and innovation are discussed and suggestions for possible new directions are given.
    Keywords: workplace; innovation; performance
    Date: 2004
  3. By: Bossink, Bart A.G. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)
    Abstract: Various drivers of construction innovation are distinguished and classified in four distinctive categories: environmental pressure, technological capability, knowledge exchange, and boundary spanning. Innovation drivers in these categories are active at the transfirm, intrafirm, and interfirm level in the network of organizations in the construction industry. Empirical research in the Dutch construction industry illustrates that the innovation drivers are used by managers of the authorities, clients, architects, consultants, and contractors to stimulate and facilitate innovation processes. It also exemplifies that driving innovation on the transfirm, intrafirm, and interfirm level in the network of organizations is an opportunity for managers of both public and private organizations to develop, improve, and renew: their organizations' positions in the market, the quality of their organizations' projects, and the cooperative structure of the industry as a whole.
    Keywords: Construction industry; Netherlands; Innovation
    Date: 2004
  4. By: Kadri Ukrainski; Urmas Varblane
    Abstract: The paper aims to identify the role of different sources of innovation for the Estonian wood sector. Comparing data from survey of Innovation in Estonian Enterprises 1998 2000 with similar Finnish data reveals that linkages in Estonian forest and wood cluster are relatively weaker regarding innovation sources. Universities and research institutes are the weakest part identified in the knowledge flows of the emerging Estonian wood cluster. Technological capabilities of Estonian wood and forest industries have passed the absorption phase and entered the adoption phase, but still the absorptive capacities remain relatively low, as indicated by the high importance of internal innovation sources and the low intensity of using R&D institutions and universities as innovation sources. We applied binary logit model in order to identify the role of different sources of innovation for the Estonian wood sector. Suppliers are the most significant partner for innovation cooperation and also the second innovation source after internal sources. Customers are more used for innovative products and by those companies that lack knowledge about markets. The internal information of concerns is not diffused to other firms. The future development of the Estonian forest and wood cluster should be oriented towards the development of high end production capacities in the value network. This requires joint efforts of the government and industries, as well as collaboration oriented behaviour of Estonian companies.
    Date: 2005
  5. By: Jinyoung Kim; Sangjoon John Lee; Gerald Marschke
    Abstract: We use U.S. patent records to examine the role of research personnel as a pathway for the diffusion of ideas from university to industry. Appearing on a patent assigned to a university is evidence that an inventor has been exposed to university research, either directly as a university researcher or through some form of collaboration with university researchers. Having an advanced degree is another indicator of an inventor's exposure to university research. We find a steady increase in industry's use of inventors with university research experience over the period 1985-97, economy wide and in the pharmaceutical and semiconductor industries in particular. We interpret this as evidence of growth in the influence of university research on industrial innovation. Moreover, during this period we find that firms with large research operations in both industries, and young and highly capitalized firms in the pharmaceutical industry, are disproportionately active in the diffusion of ideas from the university sector. Finally, we find that the patents of firms that employ inventors with university research experience are more likely to cite university patents as prior art, suggesting that this experience better enables firms to tap academic research.
    JEL: J62 O31 O33
    Date: 2005–07
  6. By: Andrew A. Toole; Dirk Czarnitzki
    Abstract: This paper considers the U.S. Small Business Innovation research (SBIR) program as a policy fostering academic entrepreneurship. We highlight two main characteristics of the program that make it attractive as an entrepreneurship policy: early-stage financing and scientist involvement in commercialization. Using unique data on NIH supported biomedical researchers, we trace the incidence of biomedical entrepreneurship through SBIR and describe some of the characteristics of these individuals. To explore the importance of early-stage financing and scientist involvement, we complement our individual level data with information on scientist-linked and non-linked SBIR firms. Our results show that the SBIR program is being used as a commercialization channel by academic scientists. Moreover, we find that the firms associated with these scientists perform significantly better than other non-linked SBIR firms in terms of follow-on venture capital funding, SBIR program completion, and patenting.
    JEL: O38 O31 G38 M13 C25
    Date: 2005–07
  7. By: Megan MacGarvie; Jeffrey L. Furman
    Abstract: The establishment and growth of industrial research laboratories is one of the key organizational innovations affecting technological progress in the United States in the 20th century. In this paper, we investigate the rise of industrial research laboratories in the U.S. pharmaceutical industry between 1927 and 1946. Our evidence suggests that institutional factors, namely the presence of universities dedicated to research, played a significant role in the establishment and diffusion of private pharmaceutical research laboratories. Specifically, we document that the growth of industrial pharmaceutical laboratories between 1927 and 1946 is positively and significantly correlated with the extent of local university research, after controlling for other observable factors likely to influence the geographic distribution of industrial research. We supplement our core results with case histories illustrative of early university-industry interaction and an examination of the determinants of university-industry research cooperation. Our qualitative historical evidence and analyses of the birth of chemical engineering programs suggest that industry also played a role in influencing university research agendas. We correct for feedback effects from industry to universities using instrumental variables. Overall, our analyses suggest that while the presence of industrial facilities helped shape the direction of university research programs, there was a significant, positive, and causal effect running from university research to the growth of pharmaceutical research laboratories in the first half of the twentieth century in the United States.
    JEL: O32 N00
    Date: 2005–07
  8. By: Kiyohiko G. Nishimura (Policy Board, Bank of Japan); Takanobu Nakajima (Faculty of Business and Commerce, Keio University); Kozo Kiyota (Faculty of Business Administration, Yokohama National University)
    Abstract: This paper presents a model of firm-level productivity growth that distinguishes between innovation and technology diffusion, and then applies the model to a large-scale data set of Japanese manufacturing and non-manufacturing firms between 1994 and 2000. We find both innovation and diffusion are important factors in firm-level productivity growth. Results also suggest that innovation comes not only directly from R&D activities, but also indirectly from patent purchases and imports. Previously, patent purchases and imports were considered as sources of technology diffusion rather than innovation. In fact, we find patent purchases are more effective in this regard than R&D expenditure.
    Date: 2005–06
  9. By: Tobias Schmidt (ZEW Mannheim)
    Abstract: This paper analyzes the determinants of R&D co-operation among German manufacturing firms. Using firm level data from the Third Community Innovation Survey from Germany, we focus on the role of spillovers in explaining R&D cooperation. We also investigate firms’ decisions to cooperate with research institutions or with suppliers and customers. Implementing a two-step estimation procedure, we find a significant effect of knowledge flows on the probability of R&D co-operation in most model specifications. Additionally, we show that firms with high intramural R&D budgets are more likely to cooperate with universities and research institutions than with suppliers and customers.
    Keywords: Spillovers, R&D Co-operation, CIS 3
    JEL: O P
    Date: 2005–06–22
  10. By: Wolfgang Sofka (ZEW Mannheim); Tobias Schmidt (ZEW Mannheim)
    Abstract: There appears to be an ambivalent dimension in innovation strategies: timing. When is an innovation ready for the market or when is the market ready for the innovation? This paper empirically investigates the determinants of a firm’s decision to become a first mover or a follower in innovation strategies. Much of theoretical and empirical work has focused on whether first mover strategies pay off or not. Here we take a different approach by analysing the determinants that lead companies to opt for either a first mover or a follower strategy. One of this paper’s major goals is to distinguish between firm and industry specific effects on this particular strategic choice. We estimate our model using the most recent data from the German innovation survey of 2003. This dataset allows us to identify deliberate followers rather than outstripped first movers. One of our main findings is that firms choosing a first mover strategy operate in industries with intensive knowledge exchange and further leverage this advantage through excellent internal absorptive capacities. Followers, though, compete by way of their operational excellence for streamlining processes and cutting costs. Hence, we argue that neither of these two innovation strategies is per se superior to the other.
    Keywords: innovation strategy, first mover, bivariat probit
    JEL: L10 O32
    Date: 2005–06–22
  11. By: Xulia Guntin Araujo (Universidade de Santiago de Compostela)
    Abstract: The objective of this paper is to estimate a dynamic panel data model with heterogeneous coefficients. Since usual “within†estimators do not have good properties in an autoregressive model, we introduce instrumental variables for a fixed effects model, by adapting the method used by Balestra and Nerlove (1966) for a model with random effects. This methodology permits us to identify the importance of sectorial and national effects in the relation between innovation and international trade, based on the existence of different sectorial patterns in the innovation process, as well as in the characteristics of National Systems of Innovation which influence the effect of technology on the configuration of trade patterns.
    Keywords: Panel data, heterogeneous coefficients, instrumental variable, innovation, international trade
  12. By: Tom Dedeurwaerdere (Centre de Philosophie du Droit (CPDR), Université Catholique de Louvain, Belgium); Vijesh Krishna (Faculty of Agricultural Sciences, University of Hohenheim, Germany); Unai Pascual (Department of Land Economy, University of Cambridge, UK)
    Abstract: This paper examines the use the use of economic incentives for knowledge generation through biodiscovery, in the particular case of the use of a highly valuable biogenetic resource stock from the South for industrial/research input. The focus is on a dynamic approach to contracting and property rights building upon insights from institutional and ecological economics. Two important conclusions come out of this analysis. First, it highlights the necessity to go beyond standard market approaches to economic valuation in order to address the issues of future possibilities of use and innovation and the integration of the different stages in the process of value creation. Second, it shows the necessity of developing alternatives to the current intellectual property rights regime, including systems for appropriate protection of the traditional knowledge of local communities.
    Keywords: food security, Bioprospection, genetic resources, traditional knowledge, Kani model, benefit sharing
    Date: 2005–06
  13. By: Fredrik Carlsson; Peter Frykblom (Appalachian State University); Carl-Johan Lagerkvist
    Abstract: Applying a choice experiment on the choice of consumer goods we show that Swedish consumers do not regard GMO food as being equivalent to conventional food. A central argument by proponents of GMO is that the end products are identical to those where GMO has not been used. That respondents in our survey disagree with this argument is supported by two observations. First, a positive significant WTP is found for a mandatory labeling policy. This result confirms previous observations that GMO food can be a credence good causing a market failure. Second, consumers are also willing to pay a significantly higher product price to ensure a total ban on the use of GMO in animal fodder. Even if scientists and politicians argue that most of today’s GMO food is indistinguishable from GMO free food, the consumers disagree.
    Date: 2004

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