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on Innovation |
| By: | Fershtman, Chaim; Markovich, Sarit |
| Abstract: | R&D is an inherently dynamic process which involves different intermediate steps that need to be developed before the completion of the final invention. Firms are not necessarily symmetric in their R&D abilities; some may have advantages in early stages of the R&D process while others may have advantages in other stages of the process. The paper uses a simple two-firm asymmetric ability multistage R&D race model to analyse the effect of different types of patent policy regimes and licensing arrangement on the speed of innovation, firm value and consumers' surplus. The paper demonstrates the circumstances under which a weak patent protection regime, which facilitates free imitation of any intermediate technology, may yield a higher overall surplus than a regime that awards patent for the final innovation. This result holds even in cases where the length of the patent is optimally calculated. |
| Keywords: | licensing; patent protection; R&D race |
| JEL: | D43 L1 O3 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5481&r=ino |
| By: | Massimiliano Mazzanti (University of Ferrara); Roberto Zoboli (CERIS-CNR) |
| Abstract: | Technological innovation is a key factor for achieving a better environmental performance of firms and the economy as a whole, to the extent that it helps to increase the material/energy efficiency of production processes and to reduce emission/effluents associated to outputs. Environmental innovation may spur from exogenous driving forces, like policy intervention, and/or from endogenous factors associated to firm market and management strategies. Despite the crucial importance of research in this field, empirical evidence at firm microeconomic level, for various reasons, is still scarce. Microeconomic-based analysis is needed in order to assess what forces are lying behind environmental innovation at the level of the firm, where innovative practices emerge and are adopted. The paper exploits information deriving from two surveys conducted on a sample of manufacturing firms in Emilia Romagna region -Northern Italy- in 2002 and 2004, located in a district-intense local production system. New evidence is provided by testing a set of hypotheses, concerning the influence of: (i) firm structural variables; (ii) environmental R&D; (iii) environmental policy pressure and regulatory costs; (iv) past firm performances; (v) networking activities, (vi) other non-environmental techno-organizational innovations and (vii) quality/nature of industrial relations. We estimate input and output-based environmental innovation reduced form specifications in order to test the set of hypotheses. The applied investigation shows that environmental innovation drivers, both at input and output level, are found within exogenous factors and endogenous elements concerning the firm and its activities/strategies within and outside its natural boundaries. In the present case study, the usual structural characteristics of the firm and performances appear to matter less than R&D, induced costs, networking, organisational flatness and innovative oriented industrial relations. Environmental Policies and environmental voluntary auditing schemes exert some relevant direct and indirect effects on innovation, although evidence is mixed and further research is particularly needed. Although this new empirical evidence is focussing on a specific industrial territory, we provide food for discussion on firm environmental innovation strategies, and research suggestions for further empirical work. |
| Keywords: | Environmental innovation, Environmental R&D, Manufacturing sector, Local system, Environmental policy, Networking |
| JEL: | C21 L60 O13 O30 Q20 Q58 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2006.20&r=ino |
| By: | Jens Horbach (University of Applied Sciences Anhalt) |
| Abstract: | In most cases, empirical analyses of environmental innovations based on firm-level data relied on survey data for one point in time. These surveys, especially designed for the analysis of environmental innovations, are useful because they allow for the inclusion of many explanatory variables such as different policy instruments or the influence of stake-holders and pressure groups. On the other hand, it is not possible to address the dynamic character of the environmental innovation process. This paper uses two German panel data bases, the establishment panel of the Institute for Employment Research (IAB) and the Mannheim Innovation Panel (MIP) of the Centre for European Economic Research (ZEW), to explore the determinants of environmental innovations. These data bases were not specifically collected to analyze environmental issues, but they contain questions that allow the identification of environmental innovations. We use discrete choice models for each of the data bases to analyze hypotheses derived from the theoretical (environmental) innovation literature. The econometric estimations show that the improvement of the technological capabilities (“knowledge capital”) by R&D or further education measures triggers environmental innovations – this result is confirmed by both data bases and both methods to measure environmental innovation. The hypothesis that “Innovation breeds innovation” is confirmed by the analysis of the MIP data. General and environmental innovative firms in the past are more likely to innovate in the present. Environmental regulation, environmental management tools and general organizational changes and improvements trigger environmental innovation, a result that has also been postulated by the famous Porter-hypothesis. Environmental management tools especially help to detect cost-savings (specifically material and energy savings). Following our econometric results, cost-savings are an important driving force of environmental innovation. |
| Keywords: | Environmental innovation, Panel data analysis, Discrete choice models |
| JEL: | Q55 O33 O38 C25 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2006.13&r=ino |
| By: | Christine Greenhalgh (Oxford Intellectual Property Research Centre, St Peter's College, Oxford University); Mark Rogers (Harris Manchester College, Oxford University) |
| Abstract: | This paper provides evidence from a newly constructed database of UK firms about the extent of their intellectual property acquisition activities over five years. We focus on service sector firms, which have not previously been studied, with comparisons for firms in manufacturing and other sectors, such as agriculture. The measures of IP include both trade marks, which are most important in services, and patents, which are predominantly sought by manufacturing firms. The analysis includes patents and trade marks applied for via both the UK and European routes. While IP assets sought through the UK Patent Office remained strong, more services firms were seeking European Community trade marks and more manufacturing firms were seeking patents via European Patent Office through time. Firm characteristics that are positively correlated with IP activity include larger firm size, stock market listed status and high product market diversification. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2006n03&r=ino |
| By: | Maria Jose Gil-Molto (Dept of Economics, Loughborough University); Joanna Poyago-Theotoky (Dept of Economics, Loughborough University) |
| Abstract: | We study firms' adoption of flexible versus dedicated technologies in the context of a mixed versus a private duopoly with product differentiation. The flexible technology allows a firm to become multiproduct or multimarket without bearing additional costs. We find that a configuration where both firms adopt flexible technologies is more likely to arise in equilibrium in the private duopoly. A similar result occurs when both firms use a dedicated technology in the case of either almost independent products or products that are close substitutes. Privatization of the public firm is socially beneficial only in limited circumstances. |
| Keywords: | Flexible Technology, Privatization, Public Firm, Mixed Duopoly. |
| JEL: | L32 L33 L13 O33 |
| Date: | 2006–01 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2006_1&r=ino |
| By: | Basant Rakesh; Chandra Pankaj |
| Abstract: | This paper explores the role played by academic institutions in Bangalore and Pune cities of India. It shows that there exists a large variety of linkages between industry and academia in the two Indian cities; a hierarchy of institutions satisfies a hierarchy of local demands ranging from skills to new technologies. While labor market linkages continue to dominate, global and local changes are creating opportunities for knowledge based linkages. With enhanced competition and privatization of research and education, these linkages are bound to undergo significant change in the future and policy should facilitate this transition. |
| Keywords: | India, South Asia, spatial clusters, academia-industry linkages |
| Date: | 2006–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2006-02-01&r=ino |
| By: | Rod Falvey (School of Economics,University of Nottingham); Joanna Poyago-Theotoky (Department of Economics, Loughborough University); Khemarat Teerasuwannajak (Ministry of Foreign Affairs, Thailand) |
| Abstract: | We analyze a simple oligopoly model where firms can engage in cost-reducing R&D. We compare two R&D regimes, that is, R&D competition and R&D cooperation where firms can enter in a Research Joint Venture (RJV). We introduce coordination costs for the RJV and examine how these affect the equilibrium outcomes. Further, we examine the question of the equilibrium versus the optimal size of the RJV. For a given size of the RJV, its members decrease their own R&D as the anticipated coordination costs increase. This results in lower output and profits. On the contrary, the non-RJV firms increase their R&D investment in response to the fall in the RJV firms' R&D. We show that the performance of the RJV in terms of R&D investment, profit and welfare in relation to R&D competition is sensitive to the level of coordination costs. Furthermore, we show that, although the RJV as a whole may no longer conduct a unit of R&D at a lower cost compared to the independent firm under the non-cooperative R&D regime, its members can still make savings on their own R&D expense through information sharing. Finally, we find that not only the equilibrium size becomes smaller as coordination costs increase, but the discrepancy between the equilibrium and optimal sizes is widening. One important message from our analysis is that by ignoring the coordination costs of operating the RJV, the anticipated benefits or success of the cooperative project could have been grossly exaggerated. |
| Keywords: | research joint venture, coordination costs, equilibrium size, optimal size |
| JEL: | O30 L13 D43 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2006_3&r=ino |
| By: | Tooraj Jamasb; William J. Nuttall; Michael G. Pollitt |
| Abstract: | There is a growing concern over our reliance on conventional electricity sources and their long-term environmental, climate change, and security of supply implications, and much hope is vested in the ability of future technological progress to tackle these issues. However, informed academic analysis and policy debates on the future of electricity systems must be based on the current state, and prospects of, technological options. This paper is the introductory chapter in the forthcoming book Future Electricity Technologies and Systems. The book comprises contributions from leading experts in their respective technology areas. The chapters present state of the art and likely progress paths of conventional and new electricity generation, networks, storage, and end-use technologies. In this paper we review the growth trend in electricity demand and carbon emissions. We then present a concise overview of the chapters. Finally, we discuss the main contextual factors that influence long-term technological progress. |
| Keywords: | Energy technology, electricity, sustainable development, environment |
| JEL: | Q42 Q55 Q56 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0608&r=ino |
| By: | Alan Hughes; Michael S Scott Morton |
| Abstract: | This paper argues that the gains from ICT at the individual business level depend upon the implementation of a range of complementary ÔinvestmentsÕ and organisational changes appropriate to the competitive and institutional context of particular sectors. To support our proposition we provide a brief overview of a recently emerging but compelling body of large sample micro-econometric research. We focus in depth, however on a single case study of ICT related organisational transformation in the transportation sector. This case builds upon the conceptual framework developed in the MIT interesting organisations project (Scott Morton (2003)). Taken as a whole we believe there is clear evidence of the conditions that seem to be required before the payoff from ICT can be realised by an organisation and hence diffuse through the economy. Effective use of ICT requires a holistic solution which recognises that there is no single factor, or even just a few, which leads to successful exploitation. Rather success comes from the artful crafting of a series of interrelated and mutually interdependent driving forces. The paradoxical ÔgapÕ between investment in computers and realised performance can be closed if this lesson is absorbed. |
| Keywords: | ICT, Complementary Investment, Productivity, Transport Services |
| Date: | 2005–12 |
| URL: | http://d.repec.org/n?u=RePEc:cbr:cbrwps:wp316&r=ino |
| By: | Louis Coulomb; Karsten Neuhoff |
| Abstract: | The heuristic concept of learning curves describes cost reductions as a function of cumulative production. A study of the Liberty shipbuilders suggested that product quality and production scale are other relevant factors that affect costs. Significant changes of attributes of a technology must be corrected when assessing the impact of learning-by-doing. We use an engineering-based model to capture the cost changes of wind turbines that can be attributed to changes in turbine size. We estimate the learning curve and turbine size parameters using more than 1500 price points from 1991 to 2003. The fit between model and empirical data confirms the concept. |
| Keywords: | Learning curve, Turbine scale, Wind turbines |
| JEL: | O33 N70 L64 L94 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:0618&r=ino |