|
on Innovation |
| By: | Hendrik Hakenes; Andreas Irmen |
| Abstract: | This paper revisits the debate about the appropriate differential equation that governs the evolution of knowledge in models of endogenous growth. We argue that the assessment of the appropriateness of an equation of motion should not only be based on its implications for the future, but that it should also include its implications for the past. We maintain that the evolution of knowledge is plausible if it satisfies two asymptotic conditions: Looking forwards, infinite knowledge in finite time should be excluded, and looking backwards, knowledge should vanish towards the beginning of time (but not before). Our key results show that, generically, the behavior of the processes under scrutiny is either plausible in the future and implausible in the past or vice versa, or implausible at both ends of the time line. |
| Keywords: | endogenous technological change, Malthus, long-run growth |
| JEL: | O11 O31 O40 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1483&r=ino |
| By: | Andrés Fuentes; Margaret Morgan; Eckhard Wurzel |
| Abstract: | <P>Key indicators show Germany belonging to the countries in the OECD with strong innovation activity even though some weakening in Germany’s position relative to other OECD countries has occurred recently. While the redirection of resources towards unification-related spending as well as low economic growth have contributed to this development, more fundamental structural issues have also played a role. Germany has benefited less than other high-performing countries from the surge in new technologies, such as ICT and biotechnology, as innovation activities continue to focus on sectors, such as machinery and automobiles, in which Germany has a long record of strong export performance. Some features of the regulation of capital, product and labour markets are hampering the supply of risk capital, the creation of new firms and the reallocation of labour. In addition, firms are finding it increasingly difficult to recruit highly qualified labour. Measures to improve the framework ...</P> <P>Selon les principaux indicateurs, l’Allemagne est l’un des pays de l’OCDE où l’activité d’innovation est soutenue, même si sa position relative s’est quelque peu dégradée ces derniers temps. Si ce phénomène peut s’expliquer en partie par un détournement des crédits vers les dépenses liées à l’unification et par la lenteur de la croissance économique, des facteurs structurels plus fondamentaux sont également intervenus. L’Allemagne a bénéficié moins que autres pays de l’explosion des nouvelles technologies, telles que les TIC et la biotechnologie, l’activité d’innovation restant axée sur les secteurs dans lesquels l’Allemagne obtient depuis longtemps de très bons résultats à l’exportation. Certaines caractéristiques de la réglementation des marchés des capitaux, des produits et du travail freinent l’offre de capital-risque, la création de nouvelles entreprises et la redistribution de la main-d’œuvre. De plus, les entreprises ont de plus en plus de mal à recruter des travailleurs ...</P> |
| Keywords: | productivity, productivité, innovation, innovation, competition, concurrence, subsidies, research and development, technological change, potential growth, business taxes, tertiary education, intellectual property rights, firm entry, recherche-développement, changement technologique, croissance potentielle, impôts aux entreprises, subsides, éducation tertiaire, droits de propriété intellectuelle, entrée des entreprises |
| JEL: | H25 I28 O30 O31 O33 O38 O52 |
| Date: | 2004–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:407-en&r=ino |
| By: | Panayotis Dessyllas (Said Business School, University of Oxford); Alan Hughes (Centre for Business Research, University of Cambridge) |
| Abstract: | In this paper we investigate the motives of high-tech acquirers by analysing their revealed preferences in terms of the high-tech companies they acquire. Using a large sample of acquisitions involving publicly traded firms from various countries we ask whether high technology acquisitions are best understood in terms of acquirers seeking to source externally special innovation-related assets by acquiring firms with “superior” innovative performance; or acquirers seeking to acquire firms with “inferior” innovative performance in order to turn them around. We find evidence that acquisition is a very noisy phenomenon and that economic and innovation related variables explain only a modest part of the probability of becoming a target. We do however find that, compared to non-acquired firms, high-tech targets tend to be somewhat larger, to have poorer profitability, lower Tobin’s q and liquidity. In relation to their innovative profile, targets, in general, seem to have a relatively larger stock of accumulated knowledge (stock of citation-weighted patents), relatively higher R&D inputs (R&D-intensity), but they are more likely to generate no R&D output (citation-weighted patent- intensity) before they are acquired. We conclude that high technology acquisitions reflect a process which is primarily driven by acquirers wishing to exploit the potential for turning around firms which, despite a good past record, appear to be innovatively and economically inefficient before they are acquired. |
| Keywords: | Mergers and acquisitions, acquisition likelihood, R&D, patents |
| JEL: | G34 O30 L20 |
| Date: | 2005–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0507009&r=ino |
| By: | Seung Mo Choi (University of Chicago) |
| Abstract: | This paper proposes a two-country 'economic' model (in the sense that it contains utility and profit maximization motives), in which a low-income economy enjoys a high growth rate relative to a high-income economy, thanks to importing technologies (or 'machines') invented in the high- income economy. Following Romer (1990), the growth of an economy is sustained by increasing varieties of inputs; while a high-income economy (and a closed economy) should invest in R&D to invent new inputs (or 'machines'), an open, low-income economy may trade with the high-income economy to import them, which reduces the cost of productivity advances. The model can generate the growth paths of the U.S. and the South Korea. |
| Keywords: | International Trade, Technological Progress, Growth |
| JEL: | F19 F41 F43 O30 O40 |
| Date: | 2005–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpge:0507013&r=ino |
| By: | Mihaela Pintea (Department of Economics, Florida International University); Peter Thompson (Department of Economics, Florida International University) |
| Abstract: | Persistent trends in R&D intensity and educational attainment, in conjunction with the absence of any trend in per capita income growth, are inconsistent with the predictions of most growth models. Jones (American Economic Review, 92(1):220-39, 2002), has shown that the data are consistent with out-of-steady state predictions of his semi-endogenous growth model. This paper presents an alternative explanation: R&D intensity and educational attainment are rising because passive learning has become more difficult in the face of increasing technological complexity. We construct a model in which R&D and learning are substitutes and education facilitates on-the-job learning. The model presents an endogenous explanation for the observed increases in the inputs into knowledge creation, along with a rise in the skill premium. In contrast to Jones, our model does not predict that a dramatic decline in the growth rate of per capita income must follow the transition period. |
| Keywords: | Economic growth, technological change, learning, R&D, complexity |
| JEL: | O40 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0502&r=ino |
| By: | Laura Bottazzi; Giovanni Peri |
| Abstract: | In this paper we estimate the dynamic relationship between employment in R&D and generation of knowledge as measured by patent applications across OECD countries. In several recently developed models, known as `idea-based' models of growth, the afore mentioned "idea-generating" process is the engine of productivity growth. Moreover, in real business cycle models technological shocks are an important source of fluctuations. Our empirical strategy is able to test whether knowledge spillovers are strong enough to generate sustained endogenous growth and to estimate the quantitative impact of international knowledge on technological innovation of a country in the short and in the long run. We find that a country's stock of knowledge, its R&D resources and the stock of international knowledge move together in the long run. International knowledge has a very significant impact on innovation. As a consequence, a positive shock to R&D in the US (the largest world innovator) has a significant positive effect on the innovation of all other countries. Such a shock produces its largest effect on domestic and international innovation after five to ten years from its occurrence. |
| JEL: | O31 F43 C23 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11524&r=ino |
| By: | Philipp Koellinger (DIW Berlin) |
| Abstract: | This is a monograph that presents both a comprehensive literature review and original research results on the diffusion and the implications of e-business technologies. The diffusion of e-business technologies among firms is regarded as part of the ongoing process of technological change and economic development. It is shown that increasing returns to adoption can arise if the technologies do not substitute each other in their functionalities, leading to an endogenous acceleration mechanism of technological development. Hence, the probability to adopt any e- business technology is hypothesized to be an increasing function of previously adopted, related technologies. Early mover advantages can exist until the early mover has exhausted all possibilities of the new technological paradigm that promise positive returns on investment. Thus, history matters for the technological development of a firm and adoption decision today affect the expected value of any other related technology in the future. The existence of the endogenous acceleration mechanism has important implications for the management of new technologies, the performance of enterprises, the development of market structures and entire economies. The theory is empirically tested and supported in four independent inquiries, using two different exceptionally large datasets and different econometric methods. The existence of a growing digital divide among companies is demonstrated for the period between 1994 and 2002. In addition, the adoption of new e-business technologies by firms creates opportunities to conduct innovation, either to reduce the costs for a given output, to create a new product or service, or to deliver products to customers in a way that is new to the enterprise. Hence, it is argued that the adoption of new technologies does have strategic relevance for firms. Empirical evidence is presented showing that e-business technologies are currently an important enabler of innovations. It is found that innovative firms are more likely to grow. Also, e-business related innovations are at the very least not inferior to traditional kinds of innovations in terms of simultaneous occurrence with superior financial performance of enterprises. The study takes an interdisciplinary approach by relating both to the economics and the management literature, with the objective to show complementarities between both research fields and to draw conclusions for both kinds of audiences. |
| Keywords: | Technological change, innovation, diffusion, adoption, multiple related technologies, e-business, ICT, firm performance, endogenous acceleration, competitive advantage |
| JEL: | O3 L0 C1 |
| Date: | 2005–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0507008&r=ino |
| By: | Liane Turner and Christina Apelt |
| Abstract: | The aim of this research was to apply a new conceptual framework to describe and explain the factors that have enabled the diffusion, adoption and operationalisation of electronic lodgement within the Australian tax system. The uptake of electronic lodgement of tax returns by both tax agents and taxpayers has increased significantly since introduction. Electronic lodgement of tax returns is part of a burgeoning global trend by OECD members to engage in and broaden the implementation of e-government applications. This research applied an eight factor framework to analyse the diffusion and adoption of electronic lodgement of tax returns within Australia. These eight factors were the circulation of ideas, national context, tax policy context, technological context, path of entry, effectiveness of champions, roles of key constituents and internal and external networks of support. The methodology comprised textual analysis and in-depth interviews. This study revealed that a coalescence of factors and actors were pivotal in enabling the diffusion and adoption of electronic lodgement services within the Australian national context. Globalisation, information exchange and advances in technology in computer hardware and software were key drivers. Contemporary issues in the Australian tax administration system and the broader national context were also influential. This study highlights that Australia was amongst the countries championing the global phenomenon of use of electronic lodgement services within tax authorities. The framework provided a comprehensive means to analyse and explain the diffusion and adoption of electronic lodgement strategies within the Australian environment. |
| Keywords: | electronic lodgement, tax system, Australia, Globalisation |
| Date: | 2005–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:nsw:discus:226&r=ino |
| By: | Luciano Martins Costa Póvoa (Cedeplar-UFMG); Leandro Alves Silva (Cedeplar-UFMG) |
| Abstract: | The aim of this paper is to contribute for the debate about Goias State System of Innovation presenting data on the technological (INPI patents) and scientific dimension (scientific papers indexed by the ISI) and theoretical arguments that enable us highlight the economic importance of the Fundação de Amparo à Pesquisa do Estado de Goiás (FAPEGO) creation, a government institution for research funding. The investment in scientific research in the state of Goias to build a scientific infrastructure and to help the technological advance will contribute to initiate a catching up process. |
| Keywords: | scientific production, patents, systems of innovation |
| JEL: | H50 O00 O30 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td269&r=ino |
| By: | Gang Zhang |
| Abstract: | <P>Intellectual property rights (IPRs) have an important role to play in helping China realise a modernisation strategy based on technological upgrading and integration into the global economy. Through the protection they offer to inventors, IPR regimes can help promote domestic technological innovation and facilitate transfer of foreign technology. Having recognised the importance of IPRs, the Chinese government has taken great strides in the past two decades to develop a modern system of IPR legislation and to further amend it in accordance with China’s membership in the World Trade Organisation (WTO). Progress with respect to IPR enforcement, however, still falls short of the levels needed to stimulate Chinese innovation and meet the expectations of the international business community.</P><P>This report summarises two policy dialogues that the OECD organised with China in Spring 2004 on IPR issues. These dialogues aimed at assisting China in its efforts to further improve IPR ...</P> <P>Améliorer le régime des droits de propriete intellectuelle et le respect de leur protection en Chine <P>Les droits de propriété intellectuelle (DPI) ont un rôle majeur à jouer dans la réussite de la stratégie de modernisation de la Chine, fondée sur le relèvement du niveau technologique et l’intégration dans l’économie mondiale. Au travers de la protection donnée aux inventeurs, les régimes de DPI contribuent au développement de l’innovation dans l’économie nationale et facilitent les transferts de technologie étrangère. Conscient de l’importance des DPI, au cours des 20 dernières années le gouvernement chinois a consenti un effort considérable à la mise en place d’un régime moderne régissant les DPI, totalement inexistant jusque-là, et en l’améliorant encore à l’occasion de l’adhésion du pays à l’Organisation mondiale du commerce (OMC). Cependant, le progrès réalisé du point de vue du respect de la législation relative aux DPI n’est pas encore suffisant tant au regard de ses effets sur le développement de l’innovation qu’à celui des attentes des milieux d’affaires internationaux ...</P> |
| Date: | 2005–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2005/1-en&r=ino |
| By: | Masahiro Katsuno |
| Abstract: | <P>This paper examines the state of official ICT statistics in China and tries to assess ICT development in China from the currently available information. This can be seen as a first order stocktaking. The aim would be to move to a situation where data can be collected more systematically from China so as to compare them internationally.</P><P>Compared with OECD countries, statistics play a unique role in China, as they are an important tool for showing the progress made towards reaching the quantitative goals set in each Five-Year Plan. The provision of statistical data by various government bodies is therefore quite comprehensive, but because of he objective of these statistics, the information is often not or only partially comparable internationally. Most data from non-official sources are based on official statistics. The Chinese government recently passed legislation which restricts the collection of statistical data by foreign bodies, be they private or ...</P> <P>Indicateurs officiels sur les tic en Chine: tour d’horizon et bilan de la situation <P>Ce document examine la situation en matière de statistiques officielles des TIC en Chine et s’efforce d’évaluer le développement des TIC en Chine en se basant sur les informations existantes. Ce travail peut être considéré comme une première tentative de bilan. L’objectif serait d’accéder à une situation dans laquelle les données peuvent être collectées de manière plus systématique en Chine afin de pouvoir figurer dans des comparaisons internationales.</P><P>En Chine, les statistiques occupent une place particulière par rapport aux pays de l’OCDE : elles constituent un outil important pour démontrer les progrès accomplis au regard des objectifs quantitatifs fixés dans chaque plan quinquennal. Les données statistiques fournies par les différentes instances gouvernementales sont donc assez complètes, mais étant donné la finalité de ces statistiques, l’information n’est souvent pas comparable internationalement, ou elle ne l’est qu’en partie. La plupart des données des sources non ...</P> |
| Date: | 2005–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2005/4-en&r=ino |
| By: | Lee Branstetter; Raymond Fisman; C. Fritz Foley |
| Abstract: | This paper examines how technology transfer within U.S. multinational firms changes in response to a series of IPR reforms undertaken by 16 countries over the 1982-1999 period. Analysis of detailed firm-level data reveals that royalty payments for technology transferred to affiliates increase at the time of reforms, as do affiliate R&D expenditures and total levels of foreign patent applications. Increases in royalty payments and R&D expenditures are concentrated among affiliates of parent companies that use U.S. patents extensively prior to reform and are therefore expected to value IPR reform most. For this set of affiliates, increases in royalty payments exceed 30 percent. Our results collectively imply that U.S. multinationals respond to changes in IPR regimes abroad by significantly increasing technology transfer to reforming countries. |
| JEL: | O34 O33 F23 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11516&r=ino |
| By: | Diego Comin; Sunil Mulani |
| Abstract: | This paper presents an endogenous growth model that explains the evolution of the first and second moments of productivity growth at the aggregate and firm level during the post-war period. Growth is driven by the development of both (i) idiosyncratic R&D innovations and (ii) general innovations that can be freely adopted by many firms. Firm-level volatility is affected primarily by the Schumpeterian dynamics associated with the development of R&D innovations. On the other hand, the variance of aggregate productivity growth is determined mainly by the arrival rate of general innovations. Ceteris paribus, the share of resources spent on development of general innovations increases with the stability of the market share of the industry leader. As market shares become less persistent, the model predicts an endogenous shift in the allocation of resources from the development of general innovations to the development of R&D innovations. This results in an increase in R&D, an increase in firm-level volatility, and a decline in aggregate volatility. The effect on productivity growth is ambiguous. On the empirical side, this paper documents an upward trend in the instability of market shares. It shows that firm volatility is positively associated with R&D spending, and that R&D is negatively associated with the correlation of growth between sectors which leads to a decline in aggregate volatility. |
| JEL: | D9 E3 L1 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11503&r=ino |
| By: | Brigitte van Beuzekom |
| Abstract: | <P>This document reflects recent efforts made by the OECD to obtain an accurate assessment of the current state of biotechnology statistics in OECD member and observer countries. It is an update of the original document, which was released in 2000.</P><P>The inventory was prepared by Brigitte van Beuzekom of the OECD’s Directorate for Science, Technology and Industry, and benefited from contributions of the delegates involved in the OECD Ad hoc Meeting on Biotechnology Statistics. Comments are welcome and should be sent by e-mail to Brigitte van Beuzekom [e-mail: <A href="mailto:brigitte.vanbeuzekom@oecd.org">brigitte.vanbeuzekom@oecd.org</A>] ...</P> <P>Ce document reflète les récents efforts de l’OCDE pour établir un état des lieux précis de la disponibilité des statistiques de la biotechnologie dans les pays membres de l’OCDE et dans les pays observateurs. Il s'agit d'une mise à jour du document paru en 2000.</P><P>Cet inventaire a été préparé par Brigitte van Beuzekom de la direction de la Science, de la Technologie et de l’Industrie de l’OCDE, avec les contributions des délégués impliqués dans la réunion Ad hoc sur les statistiques de la biotechnologie. Tous commentaires sont les bienvenus et devront être adressés par mél à Brigitte van Beuzekom [Courriel: <A href="mailto:brigitte.vanbeuzekom@oecd.org">brigitte.vanbeuzekom@oecd.org</A>] ...</P> |
| Date: | 2004–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2004/8-en&r=ino |
| By: | Michele Cincera (DULBEA, Université libre de Bruxelles, Brussels, and CEPR) |
| Abstract: | This paper aims at assessing the impact of R&D activities on the number of patents applied by Belgian R&D manufacturing firms in the mid nineties. The paper extends previous work on the R&D-patent relationship by distinguishing different types as well as sources of financing of R&D activities. Another question addressed is the extent to which technological determinants differently affect the patenting of foreign R&D subsidiaries localised in Belgium as compared to domestic firms. Foreign subsidiaries appear to have a lesser propensity to patent in the host country, R&D activities exhibit slightly decreasing returns to scale with respect to patenting and important differences are observed in the estimated impacts of these activities according to their type and source of financing. |
| Keywords: | R&D, patents, MNEs, Belgian manufacturing firms, count data econometric models |
| JEL: | F23 O31 O32 O34 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:dul:wpaper:05-10rs&r=ino |
| By: | Hélène Dernis; Mosahid Khan |
| Abstract: | <P>Patent indicators – within the science and technology (S&T) context – are used to measure inventive performance, diffusion of knowledge and internationalisation of innovative activities – across countries, firms, industries, technology areas, etc. A common approach is to calculate patent indicators based on information (filings, grants, etc.) from a particular patent office. While the richness and strength of those indicators are broadly recognised, they are affected by “home” advantage bias – where proportionate to their inventive activity, domestic applicants tend to file more patents in their home country compared to foreign applicants.</P><P>Patents taken in various countries to protect inventions can be linked together to build triadic patent families: a set of patents taken at the European Patent Office (EPO), the Japanese Patent Office (JPO), and the US Patent and Trademark Office (USPTO) that share one or more priorities. Patent families are derived from priority application ...</P> <P>Méthodologie relative aux familles triadiques de brevets <P>Les indicateurs sur les brevets sont utilisés, dans le cadre de la science et de la technologie (S-T), pour mesurer les performances de l’innovation, la diffusion du savoir et la mondialisation des activités innovantes dans les pays, les entreprises, les industries ou les domaines technologiques. Une technique fréquemment utilisée pour leur comptage consiste à s’appuyer sur les informations (nombres de demandes, de délivrances, etc.) d’un office de brevets spécifique. Si la richesse et l’importance de ces indicateurs sont largement reconnues, leur fiabilité n’en est pas moins soumise à des biais liés à l’avantage national : proportionnellement à leurs activités de découverte, les demandeurs nationaux déposent généralement davantage de brevets dans leur pays d’origine que les demandeurs étrangers.</P><P>Les brevets déposés dans divers pays pour protéger des inventions peuvent être regroupés en familles triadiques de brevets : un groupe de brevets déposés auprès de l’Office européen des ...</P> |
| Date: | 2004–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2004/2-en&r=ino |
| By: | Sachin Chaturvedi |
| Abstract: | The purpose of this paper is twofold. First, an inventory is made of biotechnology data collection in India. This will include an assessment of how the need for biotechnology related statistics is being addressed, mainly in terms of patent data, commercialisation of genetically modified organisms, R&D allocations for biotechnology and industry statistics. In general, limited efforts have been made by different Indian agencies to collect statistics on biotechnology. One of the reasons for this scarcity of statistics is a missing consensus in India on a definition of biotechnology. However, initiatives are underway to address this and to establish a measurement framework. A second objective of this document is to present a broad overview of the status of biotechnology in India, with a focus on the agricultural and the health sector. First the funding and research programmes of various institutions are discussed, followed by an overview of human resources development and training possibilities in the country. A third section discusses capital venture funding and the role of financial institutions, while the last two sections look at initiatives by state governments and the policy regulations in place. <P>Dynamique de la recherche et de l'industrie biotechnologiques en Inde Cet ouvrage répond à un double objectif. Il vise tout d’abord à faire le point sur la collecte des données relatives aux biotechnologies en Inde, notamment à travers une évaluation des solutions apportées aux besoins de statistiques dans les domaines suivants : brevets, commercialisation d’organismes génétiquement modifiés, crédits de R-D consacrés aux statistiques des biotechnologies et de l’industrie. Les différentes instances indiennes concernées ont en général relativement peu investi dans la collecte de statistiques, entre autres parce qu’il n’existe en Inde aucun consensus sur la définition des biotechnologies. Des initiatives ont toutefois été engagées dans le but d’y remédier et d’établir un cadre d’analyse. Cette publication a par ailleurs pour ambition de présenter un vaste panorama des biotechnologies en Inde, en privilégiant plus particulièrement les secteurs de l’agriculture et de la santé. Sont tout d’abord décrits les dispositifs de financement et les programmes de recherche de diverses institutions, puis est présenté un tour d’horizon des perspectives de développement des ressources humaines et de formation. Une troisième section est consacrée à l’analyse du financement du capital-risque et du rôle des institutions financières, tandis que les deux dernières sections passent en revue les actions engagées par les autorités publiques des Etats et les réglementations en place. |
| Date: | 2005–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2005/6-en&r=ino |
| By: | Marie Thursby; Jerry Thursby; Swastika Mukherjee |
| Abstract: | Whether financial returns to university licensing divert faculty from basic research is examined in a life cycle context. As in traditional life cycle models, faculty devote more time to research, which can be either basic or applied, early and more time to leisure as they age. Licensing has real effects by increasing the ratio of applied to basic effort and reducing leisure throughout the life cycle, but basic research need not suffer. When applied effort adds nothing to the stock of knowledge, licensing reduces research output, but if applied effort leads to publishable output as well as licenses, then research output and the stock of knowledge are higher with licensing than without. When tenure is added to the system, licensing has a positive effect on research output except when the incentives to license are very high. |
| JEL: | D9 J2 O3 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11497&r=ino |
| By: | Filipe J. Sousa (Instituto Superior de Administração e Línguas (ISAL)); Luís M. de Castro (Faculdade de Economia, Universidade do Porto) |
| Abstract: | The Industrial Networks Theory (cf. Axelsson and Easton, 1992, Hakansson and Snehota, 1995) sets out to describe and explain the business relationships and markets in which the focal firm is deeply embedded. One of its major propositions pertains to the (time-varying) significance of business relationships for the focal firm (Gadde et al., 2003), i.e., business relationships influence to some extent the focal firm’s survival. Such significance seems strongly related to the role played by business relationships and consequently the relationship outcomes accruing to the focal firm. The theoretical justification underlying this proposition is outwardly oriented, somewhat overlooking the inside of the focal firm - in particular the influence of business relationships on what the focal firm does competently within and across its boundaries. Arguably, the creation and appropriation of relationship value by the focal firm is a necessary but not sufficient condition for relationship significance. A supplementary (internal) explanation supported by Knowledge-based Theories of the Firm (e.g., see Kogut and Zander, 1992), we suggest, may be missing. Our aim here has been to intuitively pinpoint a theoretical flaw, further suggesting a feasible path for its solution. |
| Keywords: | Industrial Networks Theory; relationship significance proposition; relationship functions, dysfunctions, benefits, sacrifices, and value |
| JEL: | M31 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:183&r=ino |
| By: | Peter Thompson (Department of Economics, Florida International University); Steven Klepper (Department of Social and Decision Sciences, Carnegie Mellon University) |
| Abstract: | Various theories have been advanced for why employees leave incumbent firms to found firms in the same industry, which we call spinoffs. We review the accumulating evidence about spinoffs in various high-tech industries, highlighting the central role often played by disagreements. Because existing theories have ignored them, we develop the foundations of a model of spinoff formation driven by disagreements. Doing so proves to be rather challenging, because disagreements are not possible among rational actors that talk to each other. We introduce a minimal degree of non-rationality, based on the concept of solipsism, and ask whether such a concept is capable of generating predictions consistent with the empirical literature. |
| Keywords: | Spinoffs, Technological change, learning, disagreements |
| JEL: | L2 O33 |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0503&r=ino |
| By: | Peter Thompson (Department of Economics, Florida International University) |
| Abstract: | I report new evidence for localized knowledge spillovers identified by within-patent variations in the geographic matching rates of citations added by inventors and citations added by examiners. Evaluated at the mean citation lag, inventor citations are 20 percent more likely than examiner citations to match the country of origin of their citing patent, while US inventor citations are 25 percent more likely to match the state or metropolitan area of their citing patent. The localization of intranational knowledge spillovers declines with the passage of time, but international borders present a persistent barrier to spillovers. |
| Keywords: | Voting, patent citations, knowledge spillovers, geography |
| JEL: | O31 O34 |
| Date: | 2004–03 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0405&r=ino |
| By: | Peter Thompson (Department of Economics, Florida International University); Melanie Fox Kean (Department of Economics, University of Houston) |
| Abstract: | Jaffe, Trajtenberg and Henderson (Quarterly Journal of Economics, 108(3):577-98, 1993) developed a matching method to study the geography of knowledge spillovers using patent citations, and found that knowledge spillovers are strongly localized. Their method matches each citing patent to a non-citing patent intended to control for the pre-existing geographic concentration of production. We show how the method of selecting the control group may induce spurious evidence of localized spillovers. This paper reassesses their findings using control patents selected under different criteria. Doing so eliminates evidence of strong intranational localization effects at the state and metropolitan levels, but leaves largely unaffected evidence of international localization effects. |
| Keywords: | patent citations, knowledge spillovers, geography |
| JEL: | O31 O34 |
| Date: | 2004–01 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0401&r=ino |
| By: | Peter Thompson (Department of Economics, Florida International University) |
| Abstract: | Several theories of firm performance can explain the well-known observation that survival is positively related to age. However, a more mundane explanation – selection bias driven by variations in firm quality – may also underlie the phenomenon. This paper employs a 90-year plant-level panel data set on the US iron and steel shipbuilding industry of the 19th and early 20th centuries to discriminate between the two explanations. The shipbuilding industry exhibits the usual joint dependency of survival on age and size, but this dependency is eliminated after controlling for heterogeneity by using pre-entry experience as a proxy for firm quality. The evidence points to a dominant role for selection bias in creating the age-dependency of survival. At the same time, pre-entry experience is found to have a large and extremely persistent effect on survival, and this finding is inconsistent with standard explanations for the role of pre-entry experience on firm performance. |
| Keywords: | shipbuilding, firm survival, age, selection, unobserved heterogeneity |
| JEL: | N16 L11 L25 |
| Date: | 2004–03 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0404&r=ino |
| By: | Rasmus Lentz (University of Wisconsin-Madison, Boston University and CAM); Dale T. Mortensen (Northwestern University, NBER and IZA Bonn) |
| Abstract: | Productivity dispersion across firms is large and persistent, and worker reallocation among firms is an important source of productivity growth. The purpose of the paper is to estimate the structure of an equilibrium model of growth through innovation that explains these facts. The model is a modified version of the Schumpeterian theory of firm evolution and growth developed by Klette and Kortum (2004). The data set is a panel of Danish firms than includes information on value added, employment, and wages. The model's fit is good and the structural parameter estimates have interesting implications for the aggregate growth rate and the contribution of worker reallocation to it. |
| Keywords: | labor productivity growth, worker reallocation, firm dynamics, firm panel data estimation |
| JEL: | E22 E24 J23 J24 L11 L25 O3 O4 |
| Date: | 2005–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp1685&r=ino |
| By: | Pablo Marquez (Pontificia Universidad Javeriana) |
| Abstract: | The target of this paper is to question the causes of software intellectual property rights violation. To solve this question, the author analyses how has evolved the economic literature of IPR violation showing that the traditional market variables do not fulfill the requirements to explain the IPR violation. Thus, the author proposes that it is necessary to include in the model the educational, cultural, technological, and institutional context, which has not been taken into account, in order to build a coherent exposition of the problem. Subsequently, shows econometrically that it is possible to build an alternative model to explain software piracy including the a forementioned variables. The results suggest that culture, institutions and technology matter in the development of IPR protection policy even more than traditional variables as income. |
| Keywords: | Intellectual property, piracy, culture, institutions, education, innovation, intellectual property rights violation. |
| JEL: | K |
| Date: | 2005–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwple:0508002&r=ino |
| By: | Aimee Chin (Department of Economics, University of Houston); Chinhui Juhn (Department of Economics, University of Houston); Peter Thompson (Department of Economics, Florida International University) |
| Abstract: | Using a large, individual-level wage data set, we examine the impact of a major technological innovation — the development of powerful and economical steam engines — on skill demand and the wage structure among the merchant marine. Our data reveal a complex range of responses to the new technology. The new technology created a new demand for skilled workers, the engineers, while destroying other skills relevant only to sail. There were also contradictory effects among the less skilled. On the one hand, technological innovation may have been deskilling for production work since many experienced able-bodied seamen were replaced by laborers in the engine room. On the other hand, able-bodied seamen employed on steam earned a premium relative to their counterparts on sail. Our data allow us to identify this steam premium as a skill premium rather than a compensating differential. At the managerial level, we identify a skill premium on steam for mates, whose job became more complex on the larger vessels, but not for bosuns whose job did not. In aggregate, there is little change traditional measures of the skill premium, but such measures are too crude to illuminate the rich wage dynamics induced by a major technical innovation. |
| Keywords: | steam power, wage inequality, skill premium, technical change, merchant marine, Canada |
| JEL: | J31 N71 |
| Date: | 2004–06 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:0410&r=ino |
| By: | Joao Leitao (Universidade da Beira Interior); Carlos Osorio (Universidade da Beira Interior) |
| Abstract: | This article proposes a normative model for the cluster articulation in Cova da Beira (Portugal), based on network functioning which accomplishes the general purposes of the National Integrated Programme to the Support for Innovation, and creates a connectivity between traditional Microclusters: Textile, Agriculture, and Public Sector; and a set of emergent Microclusters: Information, Multimedia and Technological Contents, Distribution, Leisure, Health, and Mobility. In this context, is enhanced the decisive role played by University of Beira Interior in the creation of the Information Microcluster, and in the speeding-up of the innovations which have been locally introduced by several institutions and digital enterprises, on the products, services, production processes, and business practices. |
| Keywords: | Clusters, Megaclusters, Microclusters, Innovation, Networks. |
| JEL: | L14 M2 |
| Date: | 2005–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0507011&r=ino |
| By: | Hélène Dernis; Mosahid Khan |
| Abstract: | <P>The Patent Cooperation Treaty provides the possibility to seek patent rights in a large number of countries by filing a single international application with a single patent office. Since the mid-1980s, the patent cooperation treaty (PCT) procedure has become a popular method for filing patent applications, as is reflected in the substantial increase in PCT applications over the past 15 years.</P><P>This paper analyses the impact of the PCT data on the European Patent Office (EPO) patent statistics, and explores methods to improve the timeliness of the EPO indicators by estimating the number of PCT applications which enter the EPO regional phase (see Annex A for details). This paper shows the following main impacts of PCT data in the EPO patent statistics:</P><P><UL><LI>Including all EPO designated PCT applications data will overestimate the total number of EPO patent applications; and</LI> <LI>It will introduce a bias in favour of non-EPC countries (countries that are not signatory ...</LI></UL></P> <P>Répercussions du traité de coopération en matière de brevets sur les statistiques des brevets de l’oeb et possibilités d’amélioration de ces indicateurs <P>Le Traité de coopération en matière de brevets permet, en déposant une seule demande internationale de brevet, d’obtenir la protection d’une invention conférée par un brevet dans un grand nombre de pays. Depuis le milieu des années 80, la procédure en vertu du traité de coopération en matière de brevets (PCT) connaît un succès grandissant, ainsi qu’en témoigne l’augmentation considérable du nombre de demandes PCT au cours des 15 dernières années.</P><P>Le présent document analyse les répercussions des données du PCT sur les statistiques de l’Office européen des brevets (OEB) et étudie les possibilités d’améliorer la disponibilité de ces indicateurs pour les années récentes en effectuant des estimations du nombre de demandes PCT entrant dans la phase régionale de l’OEB (voir l’Annexe A pour plus de détails). Le présent document met en évidence les répercussions principales suivantes:</P><P><UL><LI>Si l’on inclut les données relatives à la totalité des demandes PCT désignant ...</LI></UL></P> |
| Date: | 2005–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2005/2-en&r=ino |
| By: | Panayotis Dessyllas (Said Business School, University of Oxford); Alan Hughes (Centre for Business Research, University of Cambridge) |
| Abstract: | In this paper we investigate the incidence of high technology acquisitions using a large international sample of acquisitions by public high technology firms. Controlling for firms’ financial characteristics, we examine the impact of the following innovation- related factors on the propensity to acquire: R&D-intensity as a proxy for R&D inputs; the citation-weighted patent-intensity as a proxy for R&D output; the stock of citation-weighted patents as a proxy for the accumulated stock of knowledge generated by past R&D efforts. The following conclusions can be drawn with respect to the characteristics of acquirers of non-public targets – mainly private firms and former subsidiaries. First, we find support for the view that the propensity to acquire new knowledge-related assets through acquisitions is driven by declining returns from the exploitation of a firm’s existing knowledge base. Second, we find evidence in favour of the make-or-buy theory that acquisitions are a substitute for in-house R&D activity. Third, our results are in accordance with the theoretical argument that a large stock of accumulated knowledge enhances a firm’s ability to absorb external knowledge through acquisitions. These results suggest that smaller acquisitions can be seen as part of an innovation strategy by acquiring firms with relatively low levels of internal R&D which seek to offset low R&D productivity by exploring a range of potential innovation trajectories in new and smaller business units. Interestingly, we find that these interpretations cannot be made for acquirers of the larger public companies. |
| Keywords: | Mergers and acquisitions, acquisition likelihood, R&D, patents |
| JEL: | G34 O30 L20 |
| Date: | 2005–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0507008&r=ino |
| By: | Ilya Segal; Michael Whinston |
| Abstract: | We study the effects of antitrust policy in industries with continual innovation. A more protective antitrust policy may have conflicting effects on innovation incentives, raising the profits of new entrants, but lowering those of continuing incumbents. We show that the direction of the net effect can be determined by analyzing shifts in innovation benefit and supply holding the innovation rate fixed. We apply this framework to analyze several specific antitrust policies. We show that in some cases, holding the innovation rate fixed, as suggested by our comparative statics results, the tension does not arise and a more protective policy necessarily raises the rate of innovation. |
| JEL: | L40 O31 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11525&r=ino |
| By: | Martin Schaaper |
| Abstract: | This paper shows that China is catching up rapidly with other dynamic Asian economies and the Triad economies on a score of indicators relating to the knowledge-based economy. Taking into account that a number of measurement issues hamper international comparability to varying degrees, some of the main results are the following. • Economic growth in China has outpaced the other economies substantially. Nevertheless, GDP per capita is still considerably smaller than that of the other economies. • The main contributor to GDP in China is industry (mining; manufacturing; electricity, gas and water supply; and construction), which saw its share rise by 10 percentage points to 52% between 1990 and 2002. • Trade in goods as a percentage of GDP doubled between 1990 and 2002, reaching a level well above that of the Triad economies. The largest contribution to this expansion... |
| Date: | 2004–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2004/4-en&r=ino |
| By: | Petr Hanel (GREDI, Département d'économique, Université de Sherbrooke); Dirk Czarnitzki (Centre for European Economic Research (ZEW), Dept. of Industrial Economics and International Management); Julio Miguel Rosa (Statistics Canada) |
| Abstract: | This study examines the effect of R&D tax credits on innovation activities of Canadian manufacturing firms. Over the 1997-1999 period the Federal and Provincial R&D tax credit programs were used by more than one third of all manufacturing firms and by close to two thirds of firms in high-technology sectors. We investigate the average effect of R&D tax credits on a series of innovation indicators such as number of new products, sales with new products, originality of innovation etc. using a non-parametric matching approach. Compared to a hypothetical situation in the absence of R&D tax credits, recipients of tax credits show significantly better scores on most but not all performance indicators. We therefore conclude that tax credits increase the R&D engagement at the firm level and that the R&D activities induced by fiscal incentives lead to additional innovation output. |
| Keywords: | R&D, Innovation, Public Subsidies, Tax Credit, Policy Evaluation. |
| JEL: | C14 C25 H50 O38 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:05-01&r=ino |
| By: | Jos Jansen |
| Abstract: | A firm actively manages its rival’s beliefs by disclosing and concealing information on the size of its process innovation. The firm’s disclosure strategy results from the trade-off between two effects on product market incentives. First, the firm’s competitor learns that the firm is efficient, which discourages the competitor. Second, the competitor becomes more efficient himself, since he can expropriate part of the disclosed knowledge, which encourages him. I characterize the equilibrium disclosure strategies for any knowledge spillover in a simple Cournot duopoly model, and illustrate the results graphically. Moreover, I compare the strategic disclosure equilibria with equilibria under non-strategic disclosure. |
| Keywords: | process innovation, Cournot competition, strategic substitutes, information disclosure, knowledge spillovers |
| JEL: | D82 L23 O31 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_1459&r=ino |