nep-ino New Economics Papers
on Innovation
Issue of 2006‒05‒13
fourteen papers chosen by
Koen Frenken
Universiteit Utrecht

  2. Innovation, Knowledge and Regional Economic Performances: Regularities and Differences in the EU By Alessandro STERLACCHINI
  3. The Impact of Entry and Competition by Open Source Software on Innovation By Bitzer, Jürgen; Schröder, Philipp J.H.
  4. The Private Value of Software Patents By Bronwyn H. Hall; Megan MacGarvie
  5. Technology, Information and the Decentralization of the Firm By Daron Acemoglu; Philippe Aghion; Claire Lelarge; John Van Reenen; Fabrizio Zilibotti
  6. Growth, Structural Change and Technological Capabilities. Latin America in a Comparative Perspective By Mario Cimoli; Marcio Holland; Gabriel Porcile; Annalisa Primi; Sebastiàn Vergara
  7. From a Routine-Based to a Knowledge-Based View: Towards an Evolutionary Theory of the Firm By Fritz Rahmeyer
  8. R&D Accessibility and Regional Export Diversity R&D Accessibility and Regional Export Diversity R&D Accessibility and Regional Export Diversity By Karlsson, Charlie; Johansson, Sara
  9. CBD and TRIPS: Empowering Knowledge - Rich, Economically Poor People through IPR Reforms By Gupta Anil K
  10. Can Countries Create Comparative Advantages? R&D-expenditures, high-tech exports and country size in 19 OECD-countries, 1981-1999 By Braunerhjelm, Pontus; Thulin, Per
  12. Toward Formal Representations of Search Processes and Routines in Organizational Problem Solving. An Assessment of the State of the Art. By Giovanni Dosi; Marco Faillo; Luigi Marengo
  13. The Diffusion of the Internet and the Geography of the Digital Divide in the United States By Shane Greenstein; Jeff Prince
  14. Does Venture Capital Investment Really Require Spatial Proximity? An Empirical Investigation By Michael Fritsch; Dirk Schilder

  1. 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)
    Abstract: This paper examines systematically the importance of location versus a vector of firm attributes on firms’ innovation engagements. The various factors that can influence a firm’s innovation efforts are divided into (i) firm location, reflecting the regional milieu, and (ii) firm attributes such as corporate structure, nature of the knowledge production, type of industry and a set of specific firm characteristics. The study is based on information about 2, 094 individual Swedish firms, where a firm may be non-affiliated or belong to a group (multi-firm enterprise), domestically or foreign owned. The study concludes that the propensity to be innovative differs between the five macro-region investigated. Among innovative firms, however, the R&D intensity as well as most other innovation-activity characteristics remain invariant with regard to location, when controlling for the skill composition, physical capital intensity, industry, corporate structure firm, size and market extension
    Keywords: Functional regions; innovation systems; corporate structure; R&D
    JEL: C21 G34 L22 O33
    Date: 2006–05–04
  2. By: Alessandro STERLACCHINI (Universita' Politecnica delle Marche, Dipartimento di Management ed Organizzazione Aziendale)
    Abstract: This paper examines how the recent economic performance - jointly measured by the level and growth rate of per capita GDP - of 151 developed European regions has been affected by their innovation and knowledge base. A regression analysis is carried out by using as a main explanatory variable a composite indicator extracted from a comprehensive set of innovation and education variables. The above relationship is controlled for structural characteristics and allowed to vary across EU countries. The results point to a highly significant economic impact of innovation and knowledge which, however, is not homogeneous among countries and regions.
    Keywords: innovation and knowledge, regional economic performance
    JEL: O18 O33 R11
    Date: 2006–05
  3. By: Bitzer, Jürgen (Free University, Berlin); Schröder, Philipp J.H. (Department of Organisation and Management, Aarhus School of Business)
    Abstract: No abstract
    Keywords: No keywords;
    Date: 2005–12–01
  4. By: Bronwyn H. Hall; Megan MacGarvie
    Abstract: We investigate the value creation or destruction associated with the introduction of software patents in the United States in two ways. The first looks at the cumulative abnormal returns to ICT firms around the time of important court decisions impacting software patents, and the second analyzes the relationship between firms' stock market value, the sector in which they operate, and their holdings of software patents cross-sectionally. We find that the extension of patentability to software was initially negative for software firms, especially for those producing application software or services. We also find that software patents are positively and significantly associated with Tobin's Q, and that the market's valuation of software patents increased following changes in the USPTO's treatment of software patents in 1995.
    JEL: O34 L63 L86
    Date: 2006–05
  5. By: Daron Acemoglu; Philippe Aghion; Claire Lelarge; John Van Reenen; Fabrizio Zilibotti
    Abstract: This paper develops a framework to analyze the relationship between the diffusion of new technologies and the decentralization decisions of firms. Centralized control relies on the information of the principal, which we equate with publicly available information. However, the manager can use her informational advantage to make choices that are not in the best interest of the principal. As the available public information about the specific technology increases, the trade-off shifts in favor of centralization. We show that firms closer to the technological frontier, firms in more heterogeneous environments and younger firms are more likely to choose decentralization. Using three datasets of French and British firms in the 1990s we report robust correlations consistent with these predictions.
    JEL: O31 O32 O33 F23
    Date: 2006–05
  6. By: Mario Cimoli; Marcio Holland; Gabriel Porcile; Annalisa Primi; Sebastiàn Vergara
    Abstract: Countries differ in terms of technological capabilities and complexity of production structures. According to that, countries may follow different development strategies: one based on extracting rents from abundant endowments, such as labor or natural resources, and the other focused on creating rents through intangibles, basically innovation and knowledge accumulation. The present article studies international convergence and divergence, linking structural change with trade and growth through a North South Ricardian model. The analysis focuses on the asymmetries between Latin America and mature and catching up economies. Empirical evidence supports that a shift in the composition of the production structure in favor of R&D intensive sectors allows achieving higher rates of growth in the long term and increases the capacity to respond to demand changes. A virtuous export-led growth requires laggard countries to reduce the technological gap with respect to more advanced ones. Hence, abundance of factor endowments requires to be matched with technological capabilities development for countries to converge in the long term.
    Keywords: Latin America, Structural Change, Technological Capabilities, Growth
    Date: 2006–05–07
  7. By: Fritz Rahmeyer (University of Augsburg, Department of Economics)
    Abstract: Evolutionary economics in the initial version of Nelson and Winter is concentrated on the analysis of the evolution of industries and markets and in that entrepreneurial innovation activities. But a theory of the firm beneath the level of the industry is not taken into account to a large extent. In order to widen its fundamental principles a resource-based, and as its extension, a knowledge-based view of the firm, both originated in the field of Business Strategy, are seen as promising candidates to close this gap within evolutionary economics. Industry dynamics as the evolution of a population of firms in this way is supplemented by a more detailed characterization of the internal structure of individual firms. It is the fundamental question with regard to the adequacy of an evolutionary interpretation of firm behaviour and development as to what extend a firm and its individual activities are considered to be capable of purposefully and actively influencing its environment, on the one hand, and are blindly selected by environmental pressure, on the other hand. In this way firms become intendedly heterogenous concerning market performance and organizational structure. Regarding the general topic of a theory of the firm, a unified approach will not be constructed, but more likely a hybrid one being composed of technological, institutional and efficiency-based elements.
    Keywords: economic evolution; resource-based view; knowledge-based view of the firm; theory of the firm management
    JEL: B52 D21 D83 L23
    Date: 2006–05
  8. By: Karlsson, Charlie (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Sara (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper examines the influence of accessibility to R&D on the regional diversity in Swedish export. A theoretical model with fixed R&D cost predicts that spatial knowledge spillovers generates external economies of scale in R&D activities and these external effects increase the innovative capacity in regions that have high accessibility to R&D. The model implies that the effects of R&D on regional export performance are reflected by the size of the export base rather than by the export volumes. The empirical analysis focus on three different indicators of export diversity; the number of exported goods, the number of exporting firms and the number of export destinations. The hypothesis that regional accessibility to R&D facilities in the private business sector, on the one hand, and university research departments on the other hand, increases the export diversity in regions is tested in cross-regional regression models. Since knowledge cannot be regarded as a spatially trapped resource the empirical analysis includes two measures of R&D accessibility; intra-regional and inter-regional. The empirical results indicate that the three indicators of regional export diversity are positively affected by the intra-regional accessibility to company R&D in commodity groups that have a relatively high R&D-intensity in production. Inter-regional accessibility to company R&D has significant positive impacts on the number of export goods and the number of export destinations also in less R&D-intensive industries. In the case of university R&D, the empirical results are weaker, in particular in the case of intra-regional accessibility. Yet, the inter-regional accessibility to university R&D has a significant positive impact on the number of export goods and the number of export destinations in the majority of commodity groups
    Keywords: Export diversity; knowledge; accessibility
    JEL: F12 R11 R12
    Date: 2006–05–04
  9. By: Gupta Anil K
    Abstract: The discussion in the recent COP 8 (Conference of Parties) meeting ending on March 31, 2006, the subject of Prior Informed Consent and protection of intellectual property rights of knowledge holders remained very contentious. I discuss various kinds of incentives that need to be provided for protecting the IPRs of local communities and individual knowledge holders, innovators without undermining the goal of people to people learning. The policy reforms are suggested in primarily five areas viz., registry of innovation and traditional knowledge. Prior Informed Consent, disclosure requirement, licensing and other issues relating to collecting societies (collective rights of innovators), etc. It is hoped that the deliberation of the next meeting of the Article 8J working group prior to COP 9 would draw upon these lessons and incorporate the same in the discussion.
    Date: 2006–04–24
  10. By: Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Thulin, Per (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper analyses how increased R&D expenditures and market size influence the distribution of comparative advantage. Previous studies report ambiguous results and also refer to periods when markets where much more segmented and production factors less mobile. The empirical analysis comprise 19 OECD-countries and spans the period 1981 to 1999. It is shown how an increase in R&D-expenditures by one percentage point implies a three-percentage point increase in high-technology exports, whereas market size fails to attain significance. Also institutional factors influence the dynamics of comparative advantage
    Keywords: Dynamic comparative advantage; R&D; market size; institutions
    JEL: F10 O30
    Date: 2006–05–04
  11. By: Deiaco, Enrico (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Melin, Göran (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: The main emphasis of this study has been to explore the phenomenon of creating alliances between universities. Alliances are a response to a hardened international competitive climate. An examination of ten alliances during the recent years is carried out, and the motives behind as well as the outcomes of them are analysed. The analysis indicates that there are threats and risks at play side by side of large opportunities. An alliance should be able to increase the interface between the universities on many levels and also create more opportunities for establishing powerful forms of cooperation to compete for international grants, programmes and corporate funding. Some policy implications and recommendations are given in the end.
    Keywords: university alliance; university merger; academic collaboration; strategic alliance
    JEL: O19 O39
    Date: 2006–05–05
  12. By: Giovanni Dosi; Marco Faillo; Luigi Marengo
    Abstract: This paper presents a critical overview of some recent attempts at building formal models of organizations as information-processing and problem-solving entities. We distinguish between two classes of models according to the different objects of analysis. The first class includes models mainly addressing information processing and learning and analyzes the relations between the structure of information flows, learning patterns, and organizational performances. The second class focuses on the relationship between the division of cognitive labor and search processes in some problem-solving space, addressing more directly the notion of organizations as repositories of problem-solving knowledge. Here the objects of analysis are the problem-solving procedures which the organization embodies. The results begin to highlight important comparative properties regarding the impact on problem-solving efficiency and learning of different forms of hierarchical governance, the dangers of lock-in associated with specific forms of adaptive learning, the relative role of “online” vs. “offline” learning, the impact of the “cognitive maps” which organizations embody, the possible trade-offs between accuracy and speed of convergence associated with different “decomposition schemes”. We argue that these are important formal tools towards the development of a comparative institutional analysis addressing the distinct properties of different forms of organization and accumulation of knowledge.
    Keywords: Division of labor, Mental models, Problem-solving, Problem decomposition.
    Date: 2006–05–02
  13. By: Shane Greenstein; Jeff Prince
    Abstract: This paper analyses the rapid diffusion of the Internet across the United States over the past decade for both households and firms. We put the Internet's diffusion into the context of economic diffusion theory where we consider costs and benefits on the demand and supply side. We also discuss several pictures of the Internet's physical presence using some of the current main techniques for Internet measurement. We highlight different economic perspectives and explanations for the digital divide, that is, unequal availability and use of the Internet.
    JEL: O3 L8 R0
    Date: 2006–05
  14. By: Michael Fritsch; Dirk Schilder
    Abstract: We examine the role of spatial proximity for Venture Capital (VC) investments in Germany. The main database is a survey of 85 personal interviews with representatives of different types of financial institutions. The analysis shows that spatial proximity is far less important for VC investments than is often believed. For example, the results indicate that syndication is partly used as an alternative to spatial proximity. Telecommunication does not work as a substitute for face-to-face contact. On the whole, regional proximity is not a dominant factor in VC partnerships. Therefore, the absence of VC firms in a region does not appear to cause a severe regional equity gap.
    Keywords: Venture Capital, spatial proximity, start-up financing
    JEL: G24 O16 D21 M13 R12
    Date: 2006–05

This nep-ino issue is ©2006 by Koen Frenken. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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