nep-ino New Economics Papers
on Innovation
Issue of 2006‒09‒23
23 papers chosen by
Koen Frenken
Universiteit Utrecht

  1. Blogs, wikis and creative innovation By John Quiggin
  2. Patent Laws and Innovation in China By Linda Y. Yueh
  3. Variety of technological trajectories in low emission vehicles (LEVs): a patent data analysis By Vanessa OLTRA (E3i-IFReDE-GRES); Maïder SAINT-JEAN (E3i-IFReDE-GRES)
  4. The Organization of Work and Innovative Performance: A comparison of the EU-15 By Anthony Arundel; Edward Lorenz; Bengt-Åke Lundvall; Antoine Valeyre
  5. Intellectual Property Rights and Innovation in Developing Countries: Evidence from Panel Data By Léger, Andréanne
  6. An Assessment of the Regional Innovation Policy by the European Union based on Bibliometrical Analysis By Claudia Werker
  7. Competition Policy and Innovation By Møllgaard, Peter; Lorentzen, Jo
  8. Migration and innovation : does cultural diversity matter for regional R&D activity? By Niebuhr, Annekatrin
  9. Les évolutions du système d'innovation et le marché du travail des jeunes scientifiques<br />The evolutions of the system of innovation and the labour market of young scientists By Philippe Moguerou
  10. Adaption of New Technologies and Costs of Health Care By Martti Kulvik; Ismo Linnosmaa; Raine Hermans
  11. Entrepreneurship in biotechnology: The case of four start-ups in the Upper-Rhine Biovalley. By Antoine Bureth; Julien Pénin; Sandrine Wolff
  12. ICT Adoption and Productivity in Developing Countries: New Firm Level Evidence from Brazil and India By Rakesh Basant; Simon Commander; Rupert Harrison; Naercio Menezes-Filho
  13. R&D Subsidies and the Surplus Appropriability Problem By Sørensen, Anders
  14. Innovation Capabilities: The Knowledge Capital Behind the Survival and Growth of Firms By Baldwin, John R.; Gellatly, Guy
  15. Open Standards and their Early Adoption By Fomin, Vladislav V.; Pedersen , Mogens Kühn
  16. Capacités d'innovation : le capital de savoir, gage de survie et de croissance des entreprises By Baldwin, John R.; Gellatly, Guy
  17. Public & Private Spillovers, Location and the Productivity of Pharmaceutical Research By Jeffrey L. Furman; Magaret K. Kyle; Iain M. Cockburn; Rebecca Henderson
  19. Knowledge-Driven Economic Development By Sanghamitra Bandyopadhyay
  20. Diffusion of information among small-scale farmers in Senegal: the concept of Farmer Field Schools By Witt, Rudolf; Waibel, Hermann; Pemsl, Diemuth E.
  21. Free Software’s Market-Oriented Aspects:The Example of Free Software Service Companies in France By Marie CORIS (E3i-IFReDE-GRES)
  22. Dragging developers towards the core. How the Free/Libre/Open Source Software community enhances developers’ contribution By Francesco Rullani
  23. Creative Destruction in Industries By Boyan Jovanovic; Chung-Yi Tse

  1. By: John Quiggin (Department of Economics, University of Queensland)
    Keywords: blogs, internet, innovation
    JEL: O31
    Date: 2006–02
  2. By: Linda Y. Yueh
    Abstract: This paper explores whether the patent law and intellectual property rights (IPR) system have resulted in innovation in China during the reform period. It appears that the patent laws have produced a stock of patents, where the success rates of patent applications are fairly uniform across the country. As the IPR framework does not vary across provinces, we asked which factors would explain innovation in China. We find the main determinants of patents to be R&D expenditure and foreign direct investment, but not the number of researchers, though the level of human capital matters. We conclude that the patent laws in China have been associated with innovation that has accompanied economic growth despite imperfections in the legal system.
    Keywords: Intellectual Property Rights, Patent Laws, Law and Economics, Innovation, Economic Growth, China
    JEL: O34 K29 O4 O53 K19
    Date: 2006
  3. By: Vanessa OLTRA (E3i-IFReDE-GRES); Maïder SAINT-JEAN (E3i-IFReDE-GRES)
    Abstract: This paper focuses on the diversity of engine technologies for Low Emission Vehicles (LEVs) that are developed by car manufacturers in order to substitute for the conventional internal combustion engine vehicle. Our purpose is to analyse the competition between the various technologies for LEVs as well as the innovative strategy of car manufacturers. We first propose to define and to represent these technological trajectories in order to compare their performances and to identify their strength and weaknesses. The technological bottlenecks, the barriers to the adoption of these alternative engine technologies as well as the features of this technological competition are underlined. We then use a patent data analysis to study the patent portfolios of the main car manufacturers in these technologies on the period from 1990 to 2005. The dynamics of patents applied by car manufacturers gives insight on the competition among technologies and on the strategy of firms. This analysis emphasises the progressive diversification of firms patent portfolios over the whole set of engine technologies and the differentiated strategic positioning of car manufacturers according to countries.
    Keywords: Low emission vehicles; environmental innovation; technological competition; patent data
    JEL: O33 Q55 L62
    Date: 2006
  4. By: Anthony Arundel; Edward Lorenz; Bengt-Åke Lundvall; Antoine Valeyre
    Abstract: It is widely recognised that while expenditures on research and development are important inputs to successful innovation, these are not the only inputs. Further, rather than viewing innovation as a linear process, recent work on innovation in business and economics literatures characterises it as a complex and interactive process involving multiple feedbacks. These considerations imply that relevant indicators for innovation need to do more than capture material inputs such as R&D expenditures and human capital inputs. The main contribution of this paper is to develop EU-wide aggregate measures that are used to explore at the level of national innovation systems the relation between innovation and the organisation of work. In order to construct these aggregate measures we make use of micro data from two European surveys: the third European survey of Working Conditions and the third Community Innovation Survey (CIS-3). Although our data can only show correlations rather than causality they support the view that how firms innovate is linked to the way work is organised to promote learning and problem-solving.
    Keywords: National innovation systems; measuring; methodology
    JEL: O31 O52
    Date: 2006
  5. By: Léger, Andréanne
    Date: 2006
  6. By: Claudia Werker
    Abstract: The Lisbon strategy for growth and jobs seeks to use knowledge and innovation in the context of the European Research Area (ERA). To build the ERA the European Union (EU) implements – amongst others - regional innovation policy. Ample scientific publications have investigated how innovation drives regional dynamics. Therefore, we assess the goals of European regional innovation policy in the light of the scientific findings, which we collected and condensed by bibliometrical analysis. The general goals of the Lisbon strategy to at the same time stimulate growth and achieve cohesion of economic activities across the EU is not in line with the finding that positive cumulative and self-reinforcing processes go hand in hand with the agglomeration of economic activities. However, the goals of the specific innovation policies for the regional level are mainly in line with the scientific findings.
    Keywords: Region, innovation policy, European Union, bibliometrical analysis Length 28 pages
    JEL: O31 O33 O38 R11
    Date: 2006–09
  7. By: Møllgaard, Peter (Department of Economics, Copenhagen Business School); Lorentzen, Jo (Department of Economics, Copenhagen Business School)
    Abstract: We briefly review the rationale behind technological alliances and provide a snapshot of their role in global competition, especially insofar as it is based around intellectual capital. They nicely illustrate the increased importance of horizontal agreements and thus establish the relevance of the topic. We move on to discuss the organisation of industries in a dynamic context and draw out consequences for competition policy. We conclude with an outlook on the underlying tensions between technology alliances, competition policy, and industrial policy.
    Keywords: Competition policy; innovation; alliances; industrial policy
    JEL: L40 L50 O31
    Date: 2006–09–13
  8. By: Niebuhr, Annekatrin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    Abstract: "Recent theoretical research deals with economic costs and benefits of cultural diversity related to immigration. However, empirical evidence regarding the impact of cultural diversity on economic performance is still scarce. This paper investigates the significance of cultural diversity of the workforce on innovation output for a cross-section of German regions. The findings indicate that cultural diversity indeed affects innovative activity. The results suggest that differences in knowledge and capabilities of workers from diverse cultural backgrounds enhance performance of regional R&D sectors. However, education levels are also important. Diversity among highly qualified employees has the strongest impact on innovation output." (author's abstract, IAB-Doku) ((en))
    Keywords: Einwanderung - Auswirkungen, kulturelle Faktoren, Forschung und Entwicklung, Innovationspotenzial, Innovationsfähigkeit, regionale Faktoren, Arbeitskräftestruktur, regionale Herkunft, ausländische Arbeitnehmer, Wissensarbeit, Wissenstransfer, regionale Disparität, Arbeitsmigration - Auswirkungen, Migranten, Qualifikationsniveau, Patente - Quote, regionaler Vergleich
    Date: 2006–08–11
  9. By: Philippe Moguerou (IREDU - Institut de recherche sur l'éducation : Sociologie et Economie de l'Education - [CNRS : FRE5211] - [Université de Bourgogne])
    Abstract: En France, comme dans de nombreux autres pays de l'OCDE, la forte augmentation du nombre de diplômés scientifiques de niveau doctoral du milieu des années 80 au milieu des années 90, puis la progressive désaffection pour les études doctorales qui s'en est suivie, se sont combinées à une internationalisation accrue et à des transformations importantes des processus d'innovation. Notre hypothèse est qu'on assiste à l'émergence d'un marché du travail scientifique intermédiaire, à l'intersection du secteur académique et du secteur de la R&D privée, qui permet de répondre à ces évolutions. Une analyse détaillée, essentiellement à la lumière de l'économie du travail, des processus de production des scientifiques et des transformations récentes des carrières des jeunes scientifiques est tout d'abord entreprise. Puis, davantage dans la perspective de l'économie de l'innovation, les caractéristiques de l'emploi et de l'activité de R&D des jeunes chercheurs sont étudiées en fonction de leur appartenance à une des trois communautés scientifiques isolées (enseignants-chercheurs et chercheurs du secteur académique, chercheurs du secteur privé, chercheurs du secteur intermédiaire).
    Keywords: Marché du travail scientifique ; Innovation ; Secteur académique ; Chercheur ; Doctorat
    Date: 2006–09–12
  10. By: Martti Kulvik; Ismo Linnosmaa; Raine Hermans
    Keywords: technology, health care, costs
    JEL: I11 L65
    Date: 2006–09–11
  11. By: Antoine Bureth; Julien Pénin; Sandrine Wolff
    Abstract: This paper explores entrepreneurship in biotech through the in depth analysis of four new ventures located in the Upper-Rhine Biovalley. One of the strengths of this paper is the presence of both successful cases of entrepreneurship and of cases of failures. This gives the opportunity to discuss the role of several factors on the performance of a new biotech venture. Three points particularly comes out of this study: The importance of public science, without which new biotech firms could hardly exist; the role of the patent system, the importance of which we link to the business model adopted by the firm; and the importance of collaborations, which we study through the concept of distributed entrepreneurship.
    Keywords: Intellectual property rights, patents, science, distributed entrepreneurship, collective invention.
    JEL: D2 O3
    Date: 2006
  12. By: Rakesh Basant (Indian Institute of Management Ahmedabad); Simon Commander (London Business School and IZA Bonn); Rupert Harrison (Institute for Fiscal Studies, London); Naercio Menezes-Filho (Universidade de São Paulo)
    Abstract: This paper uses a unique new data set on nearly a thousand manufacturing firms in Brazil and India to investigate the determinants of ICT adoption and its impact on performance in both countries. The descriptive evidence shows that Brazilian firms on average use ICT more intensively than their Indian counterparts but changes over time have been rather similar in both places. Within countries ICT intensity is strongly related to size, ownership structure, share of administrative workers and education. The econometric evidence documents a strong relationship between ICT capital and productivity in both countries, even after controlling for several other factors, including firm-specific fixed-effects. The rate of return of ICT investment seems to be much larger than usually found in more developed countries. Specific types of organisational changes matter for the return of ICT, but only for high adopters. Firms report several constraints to ICT investment in both countries and power disruption seems to significantly depress adoption and returns to ICT expenditures in India. This may be indicative of the impact of a cluster of poor institutions and/or infrastructure on performance.
    Keywords: ICT, productivity
    JEL: J2 E20 L20 L60 O33
    Date: 2006–09
  13. By: Sørensen, Anders (Department of Economics, Copenhagen Business School)
    Abstract: It may be optimal from a welfare perspective to use R&D subsidies when the source of R&D distortions originates from the surplus appropriability problem and technological spillovers in the form of knowledge spillovers, creative destruction, and duplication externalities are absent. Hence, R&D subsidies may constitute the optimal policy even when subsidies directly targeted on monopoly pricing could be applied. The result holds when dynamic effects are important relative to static effects and when governments spending is restricted. The latter characteristic arises when a government is unable or unwilling to use the level of spending required to implement the optimum policy. The argument is developed in a semi-endogenous growth model where the only distortion is monopoly pricing of intermediate goods.
    Keywords: R&D; policy instruments; welfare; market power
    JEL: O38 O41
    Date: 2005–09–13
  14. By: Baldwin, John R.; Gellatly, Guy
    Abstract: This paper summarizes the findings of a research program aimed at outlining the importance to the firm growth process of competencies that arise from investments in intangible assets. The program has consisted of two parts. First, longitudinal databases have provided a rich set of studies on entry, exit, mergers and other aspects of dynamics related to growth and decline in firm populations. These studies have shown the pervasiveness of growth and decline in the firm population. By themselves, these studies do not demonstrate what strategies differentiate the most successful from the least successful. To do so, we have built a set of firm surveys that allowed profiles to be developed of the type of competencies that stem from investments in organizational capital. In turn, these are linked to administrative data that allow us to classify firms as either growing or declining. We then asked how differences in competencies were related to the performance of firms.
    Date: 2006–09–18
  15. By: Fomin, Vladislav V. (Department of Informatics, Copenhagen Business School); Pedersen , Mogens Kühn (Department of Informatics, Copenhagen Business School)
    Abstract: None
    Keywords: None
    JEL: H00
    Date: 2006–09–15
  16. By: Baldwin, John R.; Gellatly, Guy
    Abstract: Le présent document décrit les constatations tirées d'un programme de recherche visant à souligner l'importance des compétences qui découlent des investissements dans l'actif incorporel pour le processus de croissance des entreprises. Le programme comportait deux parties. Premièrement, des bases de données longitudinales ont fourni un riche ensemble d'études sur les entrées, les sorties, les fusions et d'autres aspects de la dynamique liée à la croissance et au déclin des populations d'entreprises. Ces études ont démontré l'omniprésence de la croissance et du déclin dans la population des entreprises. En soi, elles n'indiquent pas quelles stratégies distinguent les entreprises les plus prospères des moins prospères. Voilà pourquoi nous avons créé un ensemble d'enquêtes-entreprises qui ont permis de concevoir des profils sur le genre de compétences qui découlent des investissements dans le capital organisationnel. À leur tour, celles ci ont été reliées aux données administratives pour nous permettre de classer les entreprises comme étant en expansion ou en déclin. Nous nous sommes alors demandés quel était le lien entre les différences dans les compétences et le rendement des entreprises.
    Date: 2006–09–18
  17. By: Jeffrey L. Furman; Magaret K. Kyle; Iain M. Cockburn; Rebecca Henderson
    Abstract: While there is widespread agreement among economists and management scholars that knowledge spillovers exist and have important economic consequences, researchers know substantially less about the "micro mechanisms" of spillovers -- about the degree to which they are geographically localized, for example, or about the degree to which spillovers from public institutions are qualitatively different from those from privately owned firms (Jaffe, 1986; Krugman, 1991; Jaffe et al., 1993; Porter, 1990). In this paper we make use of the geographic distribution of the research activities of major global pharmaceutical firms to explore the extent to which knowledge spills over from proximate private and public institutions. Our data and empirical approach allow us to make advances on two dimensions. First, by focusing on spillovers in research productivity (as opposed to manufacturing productivity), we build closely on the theoretical literature on spillovers that suggests that knowledge externalities are likely to have the most immediate impact on the production of ideas (Romer, 1986; Aghion & Howitt, 1997). Second, our data allow us to distinguish spillovers from public research from spillovers from private, or competitively funded research, and to more deeply explore the role that institutions and geographic proximity play in driving knowledge spillovers.
    JEL: L23 L65 O3 R3
    Date: 2006–09
  18. By: Dhanoos Sutthiphisal
    Abstract: This paper investigates the impact of “learning-by-producing” on inventive activity and shows that, in both emerging (electrical equipment and supplies) and maturing (shoes and textiles) industries, the geographic association between invention andproduction was rather weak during the Second Industrial Revolution. Regional shifts in production were neither accompanied nor followed by corresponding increases in invention. Instead, this paper finds that the geographic location of inventive activity tended to mirror the geographic distribution of individuals with advanced technical skills appropriate to the particular industry in question. Even in the craft-based shoe industry, much of the invention came from those with the advanced technical skills. The findings suggest that scholars have over-emphasized the importance of learningby-producing in accounting for the geographic differences in inventive activity, and underestimated the significance of technical skills or human capital amongst the population.
    JEL: N0 O3
    Date: 2006–09
  19. By: Sanghamitra Bandyopadhyay
    Abstract: This paper examines the impact of mass media and information and communications technologies (ICT) as knowledge-based infrastructures on economic development. The results strongly suggest that both mass media and ICT penetration are negatively associated with corruption. This result holds across both the entire sample (of both developed and developing countries), and only for developing countries. The same result is also obtained for the effects of ICT and mass media on economic inequality. However, ICT reveals itself inequality increasing for the developing country sample but inequality decreasing for the entire sample. Finally, lower poverty is robustly associated with higher media (newspaper circulation) penetration.
    Keywords: Information and Communications Technologies, Mass Media, Economic Growth and Development, Poverty, Corruption, Inequality
    JEL: D30 D80 O1 O57
    Date: 2006
  20. By: Witt, Rudolf; Waibel, Hermann; Pemsl, Diemuth E.
    Abstract: Recent research on the Farmer Field School (FFS) approach in agriculture in developing countries has raised some doubts on the economic impacts of this concept and especially the knowledge diffusion effects from trained to non-trained farmers. Based on a study in Senegal this paper hypothesizes that the question of the project placement strategy is vital when analyzing knowledge diffusion effects of FFS in Africa. Results show that the share of trained farmers in a community is a decisive factor for adoption behavior and knowledge diffusion. It is concluded that when introducing an FFS, a critical mass of trained farmers is important to attain effective dissemination of information and to generate positive stimuli for adoption and learning among non-participants.
    Keywords: Africa, Senegal, agricultural extension, Farmer Field School, diffusion
    Date: 2006
  21. By: Marie CORIS (E3i-IFReDE-GRES)
    Abstract: Considering the french case of Free Software Service Companies (FSSCs), this paper analyses Free software’s market-oriented aspects. We try to answer a fundamental question for free software: is the software industry have room for an alternative economic model based on the communities’ ethic? Analysing FSSCs’ competition with traditionnal IT Service Companies (ITSCs) and regarding the integration of free software in the ITSCs’ product offer, we show how the software sector’s strutures could explain both FSSCs and ITSCs recent changes.
    Keywords: Free software, Organisational production, Software industry
    JEL: L23 L86 O14
    Date: 2006
  22. By: Francesco Rullani
    Abstract: The paper presents a dynamic perspective on the landscape of Free/Libre/Open Source Software (FLOSS) developers’ motivations and tries to isolate mechanisms sustaining developers’ contribution over time. The first part of the paper uses data gathered by the empirical studies relative to the FLOSS case to judge the relative importance of each group of incentives detected by the literature. In the second part of the paper, the same data are used to further characterize developers’ motivations in dynamics terms. In particular, the study shows that the relative importance of different incentives do change over time. Drawing inspiration from the literature aimed at explaining these changes, the third part of the paper identifies a specific mechanism fostering developers’ contribution to the community activities, namely that: "Independently of developers’ exogenous preferences, the more their exposure to the FLOSS community social environment, the more their contribution to the community activities". The key point of this hypothesis is that, if the exposure to the FLOSS community social environment is able to foster developers’ contribution beyond the level granted by their predetermined preferences, this leads directly to the evidence that the FLOSS community is provided with a mechanism sustaining and enhancing developers’ incentives to produce and diffuse code. In the last part of the paper, data relative to 14,497 developers working on during two years (2001-2002) are employed to estimate a model testing the aforementioned hypothesis. Endogeneity problems are explicitly accounted for, and robustness checks are performed in order to make sure that the observed confirmation of the hypothesis is actually an empirically grounded result.
    Keywords: Free/Libre/Open Source Software, Incentives to Innovate, Dynamics of Motivations, Cooperation, Community.
    Date: 2006–09–20
  23. By: Boyan Jovanovic; Chung-Yi Tse
    Abstract: Most industries go through a "shakeout" phase during which the number of producers in the industry declines. Industry output generally continues to rise, however, which implies a reallocation of capacity from exiting firms to incumbents and new entrants. Thus shakeouts seem to be classic creative destruction episodes. Shakeouts of firms tend to occur sooner in industries where technological progress is rapid. Existing models do not explain this. Yet the relation emerges naturally in a vintage-capital model in which shakeouts of firms accompany the replacement of capital, and in which a shakeout is the first replacement echo of the capital created when the industry is born. We fit the model to the Gort-Klepper data and to Agarwal's update of those data.
    JEL: L11
    Date: 2006–09

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