nep-ino New Economics Papers
on Innovation
Issue of 2006‒09‒30
twenty papers chosen by
Koen Frenken
Universiteit Utrecht

  1. What do we know about Firms’ Research Collaboration with Universities? New Quantitative and Qualitative Evidence By Broström, Anders; Lööf, Hans
  2. The Regional Dimension of Knowledge Transfers - A Behavioral Approach By Tom Brökel; Martin Binder
  3. Creating First-Mover Advantages: The Case of Samsung Electronics By Jang-Sup SHIN; Sung-Won JANG
  4. France's search for institutional schemes to promote innovation : the case of genomics By Anne Branciard
  5. PRODUCT INNOVATION, EXPORT AND LOCATION OF ENTREPRENEURSHIP By Andersson, Martin; Johansson, Börje
  6. Endogenous Skill Bias in Technology Adoption: City-Level Evidence from the IT Revolution By Paul Beaudry; Mark Doms; Ethan Lewis
  7. Has the European ICT sector a chance to be competitive ? By Christian Genthon; Godefroy Dang Nguyen
  8. Managing Risk and Synergies R&D-Collaborations By Mahnke, Volker; Overby, Mikkel Lucas
  9. A Four-Dimensional Product Innovativeness Typology By Rosenø, Axel
  10. The R&D drop in European utilities. Should we care about it? By Sterlacchini, Alessandro
  11. Open Source Software Acquisition By Holck,, Jesper; Pedersen, Mogens Kühn; Larsen, Michael Holm
  12. Climbing Atop the Shoulders of Giants: The Impact of Institutions on Cumulative Research By Jeffrey L. Furman; Scott Stern
  13. Product market reform and innovation in the EU By Rachel Griffith; Rupert Harrison; Helen Simpson
  14. Strategic perspectives on modularity By Florent Catel; Jean-Charles Monateri
  15. Innovative Work Practices, Information Technologies and Working Conditions: Evidence for France By Philippe Askenazy; Eve Caroli
  16. Designing for the cultural "other" By Nielsen , Janni
  17. Green Revolutions and Miracle Economies : Agricultural Innovation, Trade and Growth By Brishti Guha
  18. Incentives for Clinical Trials By Grönqvist, Erik; Lundin, Douglas
  19. A composite index of the creative economy with application to regional best practices By Bowen, H.P.; Moesen, W.; Sleuwaegen, L.
  20. Concurrence, roulement des entreprises et croissance de la productivité By Baldwin, John R.; Gu, Wulong

  1. By: Broström, Anders (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 chapter provides an integrated view of knowledge transfer between university and industry by combining two different approaches. First, we report results from an econometric analysis, where recent matching techniques are used on a dataset of 2,071 Swedish firms. Our findings from this analysis strongly suggest that university collaboration has a positive influence on the innovative activity of large manufacturing firms. In contrast, there appears to be an insignificant association between university collaboration and the average service firm’s innovation output. Second, in the pursuit of credible explanations for these findings, we apply a semi-structured interview methodology on 39 randomly selected firms collaborating with two research universities in Stockholm, Sweden. We identify three ideas for how collaboration may help firms become more innovative in the literature of innovation studies. In analysis of the interviews, we find very weak support for the first idea; that firms are able to exploit and market innovations originating in the university. The second idea – that firms improve their internal innovative capability by collaboration – is found to apply to about half of the investigated firms. Innovation efficiency gains in the form of reduced cost and risk for innovation projects, which is a third idea suggested by the literature, are also suggested to be a major factor behind firms’ benefits. Finally, we offer tentative explanations for the lack of measurable effects of collaboration for service firms.
    Keywords: University-Industry Link; Innovation; Technology transfer; R&D; Research collaboration
    JEL: C10 I23 O31 O33
    Date: 2006–08–28
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0074&r=ino
  2. By: Tom Brökel; Martin Binder
    Abstract: Innovations are inherently connected to knowledge transfers. The need of face-to-face contacts to transfer tacit knowledge is commonly argued to cause a regional dimension of innovative activities. The paper presents an alternative explanation based on a model of boundedly rational actors who search for knowledge. It is shown that a regional dimension exists in these processes that results from a regional bias in an actor’s search activities. Social embeddedness, a shared regional identity and limited spatial mobility foster this bias. We argue that insights from research on these topics can help to define the geographic size of a region.
    Keywords: Regional Economics, Innovation, Knowledge Transfers, Tacit Knowledge, Bounded Rationality Length 31 pages
    JEL: B52 D83 O31 R12
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:esi:evopap:2006-12&r=ino
  3. By: Jang-Sup SHIN (Department of Economics, National University of Singapore); Sung-Won JANG (Samsung Economic Research Institute)
    Abstract: This paper analyzes the sources of first-mover advantages by examining the case of Samsung Electronics, a firm which has maintained and strengthened the technological leadership in the DRAM industry since 1992. The focus is on endogeneity of first-mover advantages under changing technological and competitive environments, part of which are also shaped by the technology leader. The paper also discusses general implications of this case study for strategy and organization for innovation.
    Keywords: First-mover advantages, innovation, firm growth, Samsung Electronics, semiconductors
    URL: http://d.repec.org/n?u=RePEc:sca:scaewp:0513&r=ino
  4. By: Anne Branciard (LEST - Laboratoire d'économie et de sociologie du travail - [CNRS : UMR6123] - [Université de Provence - Aix-Marseille I][Université de la Méditerranée - Aix-Marseille II])
    Abstract: The subject of this paper is the relationship between the policy-making and the innovation performance in genomics and biomedical related biotechnologies in the national research and innovation system in France in 1990'. The aim is to highlight the relative effectiveness of the different public policies and their instruments compared to the action of the non for profit sector. Government policy has recently supported a development of the biotechnology sector by encouraging start-ups and creating favourable framework conditions such as incubators, a specialised stock exchange, financial institutions or technopoles. <br />By studying the co-ordination mechanisms between the different organisations (non for profit organisations, public authorities, public sector research, biotech SMEs and large firms, especially in the biomedical sector), this paper shows that the path dependant institutions and the contradiction between the different policy tools to promote science base knowledge commercialisation can explain the poor development of biotech sector in France in the last few years, in spite of a high investment in the basic scientific researcb in life sciences.
    Keywords: innovation system; S§T policy; biotechnology; genomics; Triple Helix model; France; policy-making; diffusion-oriented policy; science base knowledge
    Date: 2006–09–24
    URL: http://d.repec.org/n?u=RePEc:hal:papers:halshs-00098134_v1&r=ino
  5. By: Andersson, Martin (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper introduces a model where new products are introduced by entrepreneurs or innovating firms in a quasi-temporal setting. Market conditions are characterized by monopolistic competition between varieties belonging to the same product group, where varieties can become obsolete over time and hence disappear from demand. Firms that innovate have to make an R&D investment, and a firm’s decision to export a variety to a given market is associated with a market channel investment. The model is used to predict export behavior by firms in different regional milieus, and these predictions are compared with observations from a rich data set describing export activities of Swedish firms. The data set contains firm level information about export flows, where the flow of each variety is associated with the exporting firm’s location, export value, price and destination. In the empirical analysis we examine how the arrival of innovation ideas varies across regions and how this variation depends on regional characteristics.
    Keywords: location; entrepreneurship; innovation; exports; diversity
    JEL: F12 O31 R11 R12
    Date: 2006–09–22
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0075&r=ino
  6. By: Paul Beaudry; Mark Doms; Ethan Lewis
    Abstract: This paper focuses on the bi-directional interaction between technology adoption and labor market conditions. We examine cross-city differences in PC-adoption, relative wages, and changes in relative wages over the period 1980-2000 to evaluate whether the patterns conform to the predictions of a neoclassical model of endogenous technology adoption. Our approach melds the literature on the effect of the relative supply of skilled labor on technology adoption to the often distinct literature on how technological change influences the relative demand for skilled labor. Our results support the idea that differences in technology use across cities and its effects on wages reflect an equilibrium response to local factor supply conditions. The model and data suggest that cities initially endowed with relatively abundant and cheap skilled labor adopted PCs more aggressively than cities with relatively expensive skilled labor, causing returns to skill to increase most in cities that adopted PCs most intensively. Our findings indicate that neo-classical models of endogenous technology adoption can be very useful for understanding where technological change arises and how it affects markets.
    JEL: E13 J31 O33
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:12521&r=ino
  7. By: Christian Genthon (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II]); Godefroy Dang Nguyen
    Abstract: The ICT sector is featured by technical progress, convergence and systems integration. This leads to risks of monopolization regimes at the core with higher competition regimes at the periphery. Moreover, some specific component of the system may be essential for its evolution. In particular, networking to some extent creates the system, while software (notably operating systems) is the “glue” which holds it together. In this context, the European ICT industry is potentially smashed between the cost advantages of Asian countries such as China, and the inventiveness and dynamism of the US industry. The way out of this difficult situation is to create in Europe the conditions of restoring knowledge accumulation. By concentrating on an ambitious project of open source software production in embarked and domestic systems, Europe could reach several objectives: to make freely accessible an essential facility of networks, to stimulate competition, to help reaching the Lisbon objectives and to restore the European competitiveness in ICT.
    Keywords: information and communications technologies ; industrial policy ; competition regimes ; knowledge based society ; open source
    Date: 2006–09–19
    URL: http://d.repec.org/n?u=RePEc:hal:papers:halshs-00096180_v1&r=ino
  8. By: Mahnke, Volker (Department of Informatics, Copenhagen Business School); Overby, Mikkel Lucas (Department of Informatics, Copenhagen Business School)
    Abstract: Many companies in the cross section of telecommunication and mobile technology engage in R&D collaborations to manage uncertainty, create synergies and learn. While the challenges of managing individual collaborations are well documented, little is known on how to systematically manage several R&D collaborations simultaneously. We use modern portfolio theory as an analogy to show how companies active in mobile telecommunication manage risks and create synergies by simultaneously engaging in several inter-firm collaborations.
    Keywords: Portfolio theory; risk; synergy; R&D collaboration; mobile commerce
    JEL: O30
    Date: 2006–09–19
    URL: http://d.repec.org/n?u=RePEc:hhs:cbsinf:2004_016&r=ino
  9. By: Rosenø, Axel (Department of Informatics, Copenhagen Business School)
    Abstract: Product innovativeness is a key moderating variable for the study of innovation management (Song & Montoya-Weiss 1998, p. 124). For this reason, some empirical studies of innovation management examine new product processes, critical success factors, and market learning practices for incremental versus discontinuous new product projects (Song & Montoya-Weiss 1998; Atuahene-Gima 1995; Veryzer 1998a; Lynn et al. 1996; O’Connor 1998; Rice et al. 1998). By looking at both these types of new product development projects, empirical observations are likely to be more realistic than those of studies that do not discriminate between more or less innovative projects. Even so, a dualistic view of the matter does not capture the nuances (Green et al.1995)1 of the relationship between product innovativeness and innovation management practices. Hence, there is a need for richer innovativeness typologies that go beyond the dichotomous view and, thereby, lend themselves to a more finegrained study of innovation management practices for different types of new product projects. In fact, various innovativeness typologies exist that include more than two product types. Notably, the typology by Booz, Allen & Hamilton (1982)2 introduces two dimensions: newness to the market and newness to the company, resulting in six products types (with various combinations of high, medium and low newness). An alternative set of typologies differentiates between the product’s technological newness and its market newness, for example Abernathy & Clark’s (1985) typology with four new product types; Leonard-Barton’s (1995) five product types; and Veryzer’s (1998a) four types in a two-by-two matrix. Interestingly, these two meta-perspectives on product innovativeness (i.e. 1. new to the market and/or new to the company and 2. technological and/or market newness) are generally not included within the same typology in extant literature. For example, discussions of the technological and/or market newness of a product, often leave out the question of whether that newness is in the eyes of the industry and market (exogenous newness) or only for the focal firm itself (endogenous newness). More broadly, it can be stated that “…little continuity exists in the new product literature regarding from whose perspective this degree of newness is viewed and what is new (Garcia & Calantone 2002, p. 112).
    Keywords: None
    JEL: O30
    Date: 2005–09–19
    URL: http://d.repec.org/n?u=RePEc:hhs:cbsinf:2005_001&r=ino
  10. By: Sterlacchini, Alessandro
    Abstract: By using accounting data from the largest utility companies of Europe, this note illustrates the recent R&D performance in energy and telecommunication. Although not all the companies under consideration behaved symmetrically, most of them reduced substantially their R&D investment. Over the period 2000-05, their total R&D expenditures at current prices decreased by 33%, while their R&D intensity (on sales) diminished from 1.1 to 0.7%. In discussing the above findings, it is argued that a drop of this size is hardly justifiable and weakens the EU economy in a non-negligible manner.
    Keywords: R&D performance; energy and telecommunication utilities
    JEL: O38 L97 O32
    Date: 2006–09–18
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:31&r=ino
  11. By: Holck,, Jesper (Department of Informatics, Copenhagen Business School); Pedersen, Mogens Kühn (Department of Informatics, Copenhagen Business School); Larsen, Michael Holm (Department of Informatics, Copenhagen Business School)
    Abstract: Lately we have seen a growing interest from both public and private organisations to adopt Open Source Software (OSS), not only for a few, specific applications but also on a more general level throughout the organisation. As a consequence, the organisations’ decisions on adoption of OSS are becoming increasingly more important and complex. We present three perspectives organisations can employ in their decisions: seeing OSS acquisition as a business case, as COTS acquisition, and as architectural change within a governance framework. We present case studies of decisions on OSS adoption, and categorise the decision criteria we have found. Our results indicate that for large-scale adoption of OSS, focus will be on architectural considerations: enterprise-wide architectures will at first be a barrier, but in the long term OSS’s support of open standards can be a major enabler for OSS adoption. In contrast, in smaller organisations and in small-scale adoption of OSS, the cheap price of OSS is a major enabler, as it provides a good opportunity for experiments and short-term economic benefits. For small organisations these experiments can lead to development of a common IT-architecture, and in larger organisations OSS can be adopted in niche-areas, without significantly violating an existing IT-architecture.
    Keywords: open source; COTS; IT architecture; governance
    JEL: H00
    Date: 2005–09–19
    URL: http://d.repec.org/n?u=RePEc:hhs:cbsinf:2005_007&r=ino
  12. By: Jeffrey L. Furman; Scott Stern
    Abstract: While the cumulative nature of knowledge is recognized as central to economic growth, the microeconomic foundations of cumulativeness are less understood. This paper investigates the impact of a research-enhancing institution on cumulativeness, highlighting two effects. First, a selection effect may result in a high correlation between “high-quality†institutions and knowledge of high intrinsic quality. Second, an institution may have a marginal impact – an incremental influence on cumulativeness, conditional on the type and quality of knowledge considered. This paper distinguishes these effects in the context of a specific institution, biological resource centers (BRCs). BRCs are “living libraries†that authenticate, preserve, and offer independent access to biological materials, such as cells, cultures, and specimens. BRCs may enhance the cumulativeness of knowledge by reducing the marginal cost to researchers of drawing on prior research efforts. We exploit three key aspects of the environment in which BRCs operate to evaluate how they affect the cumulativeness of knowledge: (a) the impact of scientific knowledge is reflected in future scientific citations, (b) deposit into BRCs often occurs with a substantial lag after initial research is completed and published, and (c) “lagged†deposits often result from shocks unrelated to the characteristics of the materials themselves. Employing a difference-in-differences estimator linking specific materials deposits to journal articles, we find evidence for both selection effects and the marginal impact of BRCs on the cumulativeness of knowledge associated with deposited materials. Moreover, the marginal impact increases with time and varies with the economic and institutional conditions in which deposit occurs.
    JEL: H4 L3 O3 O33
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:12523&r=ino
  13. By: Rachel Griffith (Institute for Fiscal Studies); Rupert Harrison (Institute for Fiscal Studies and University College London); Helen Simpson (Institute for Fiscal Studies)
    Abstract: European Union countries have implemented widespread reforms to product markets in order to stimulate competition, innovation and economic growth. We provide empirical evidence that the reforms carried out under the EU Single Market Programme (SMP) were associated with increased product market competition, as measured by a reduction in average profitability, and with a subsequent increase in innovation intensity and productivity growth for manufacturing sectors. In our analysis we exploit exogenous variation in the expected impact of the SMP across countries and industries to identify the effects of reforms on average profitability, and the effects of profitability on innovation and productivity growth.
    JEL: L1 O31 O47
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:ifs:ifsewp:06/17&r=ino
  14. By: Florent Catel (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II]); Jean-Charles Monateri (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II])
    Abstract: In this paper we argue that the debate on modularity has come to a point where a consensus is slowly emerging. However, we also contend that this consensus is clearly technology driven. In particular, no room is left for firm strategies. Typically, technology is considered as an exogenous variable to which firms have no choices but to adapt. Taking a slightly different perspective, our main objective is to offer a conceptual framework enabling to shed light on the role of corporate strategies in the process of modularization. From interviews with academic design engineers, we show that firms often consider product architecture as a critical variable to fit their strategic requirements. Based on design sciences, we build an original approach to product modularity. This approach, which leaves an important space for firms' strategic choices, proves also to seize a large part of the industrial reality of modularity. Our framework, which is a first step towards the consideration of strategies within the framework of modularity, gives an account for the diversity of industrial logics related to product modularization.
    Keywords: product modularity ; corporate strategy ; technological determinism
    Date: 2006–09–22
    URL: http://d.repec.org/n?u=RePEc:hal:papers:halshs-00097733_v1&r=ino
  15. By: Philippe Askenazy (Paris Sciences Economiques and IZA Bonn); Eve Caroli (University Paris X, EconomiX and Paris Sciences Economiques)
    Abstract: We investigate the impact of new work practices and information and communication technologies (ICT) on working conditions in France. We use a unique French dataset providing information on individual workers for the year 1998. New work practices include the use of quality norms, job rotation, collective discussions on work organization and working time flexibility. Working conditions are captured by occupational injuries as well as indicators of mental strain. We find that workers involved in the new practices face working conditions that are significantly worse than those of workers in non innovative work practices. But, the picture is mixed for ICT that seem to make the workplace safer and less risky.
    Keywords: new work practices, technology, working conditions, occupational injuries
    JEL: J28 L23
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2321&r=ino
  16. By: Nielsen , Janni (Department of Informatics, Copenhagen Business School)
    Abstract: The process of globalization is opening new windows for Danish initiatives. The requirement for innovation and development of new areas as a consequence of the globalization will lead to radical changes and the IT businesses need to take active part in the development. But in order to understand and explain the globalization process we also have to understand the limitations. One such limitation is found in the global digitalization of information- and communication processes. This global development requires, from the world citizens, literacy in use of computers. The majority of the world populations are illiterates, they are not only technical illiterates but also illiterates in the traditional sense: they cannot read and write, however, the global ICT development largely disregards the problem with illiteracy and cultural differences. It seems that a future area of growth for the Danish IT business with their specific competencies may be to strengthen the user oriented and interdisciplinary approaches to design and development of ICT applications - targeted to specific cultural groups and the illiterates - in developing countries and also to large groups of immigrants in the developed world. India is an example of the global structural changes. India has developed an impressive ICT industry and has a very high level of expertise in software engineering. India’s government has a vision for e-democracy and have implemented e-government systems, which also address the rural populations. But the Indian population is very large and the potential users are highly diverse groups of which many are illiterate. Denmark has an IT industry that supplements India’s, e.g. a strong expertise in e-government, and ICT for the agriculture. Denmark has a long tradition for cooperation between IT developers, researchers and users and is strong in interdisciplinary approaches to development and design of ICT applications. Denmark also has a tradition for a human centred design, and usability is seen as a competitive factor. In India usability is on the agenda in only few IT companies, and it is also new to the academic world (Pradeep Y. 2004). Copenhagen Business School, department of Informatics has for the last 18 months been involved in the establishment of a Euro-India Centre. The departments research group on human-computer interaction(HCI) has prioritized HCI work in the Asian world for the last 4 years (Clemmensen 2004, Nielsen Janni 2004, Nielsen, Clemmensen and Yssing 2002, Levinsen, K. 2002, Nielsen, Lene and Gregers Koch 2003). The wish for a collaborative network has come about as a result of meetings and discussions between researchers from especially India and Denmark and also from Great Britain and Sweden. The first Indian conference on HCI in December 2004 and the initiative from CBS, department of Informatics in May 2005 where an Indian – European workshop was held, created the basis for this network application.
    Keywords: None
    JEL: H00
    Date: 2005–09–18
    URL: http://d.repec.org/n?u=RePEc:hhs:cbsinf:2005_011&r=ino
  17. By: Brishti Guha (School of Economics and Social Sciences, Singapore Management University)
    Abstract: The purpose of this paper is to develop a simple model of an economy in which growth is driven by a combination of exogenous technical change in agriculture as well as by a rising world demand for labor-intensive manufactured exports. We explore the relative roles of agricultural innovation and rising export demand in a model with two traded industrial goods and a non-traded agricultural good, food. When the non-traded sector uses a specific factor, we show that technical change in agriculture may be the key to sustained factor accumulation in industry, in particular driving intersectoral labor migration. A key assumption is a less than unitary price elasticity of demand for food. Our results could form a crucial link in capturing the story of labor-abundant economies which experienced structural transformation and growth through labor-intensive manufactured exports, without prior technology breakthroughs in industry. They contribute to explaining the massive growth in factor accumulation which shows up in some growth accounting studies : they may also imply that some of the contribution of “technical progress” is mistakenly attributed solely to factor accumulation.
    Keywords: Structural change, agricultural productivity, labor migration, terms of trade.
    JEL: O3 O4 F1
    Date: 2005–09
    URL: http://d.repec.org/n?u=RePEc:siu:wpaper:20-2005&r=ino
  18. By: Grönqvist, Erik (Centre for Health Economics, Department of Economics); Lundin, Douglas (Pharmaceutical Benefits Board)
    Abstract: Who gains from more information on the quality of pharmaceutical drugs? Are there incentives for voluntary post-approval clinical trials among pharmaceutical companies? Contrary to popular belief, this paper shows that it is not in the consumer interest that clinical evidence establishing the relative effectiveness within a class of drugs are produced. Pharmaceutical companies, on the other hand, do benefit: the elimination of uncertainty regarding quality increases expected product differentiation, thereby raising prices for both high-quality and low-quality drugs, to the disadvantage of consumers. <p> Still there is no unique equilibrium where the market provides clinical trials. If the costs of carrying out clinical trials are small, in relative terms, there will be a coordination problem between firms, as firms will want a rival firm to carry the cost. If the costs are large they will be prohibitive. Legislation that obligates entering firms to carry out post-approval trials is beneficial for firms if it solves the coordination problem, but is otherwise harmful. Legislation is never in the interest of consumers. <p>
    Keywords: Quality uncertainty; Symmetric information; Pharmaceutical market; Clinical trials
    JEL: D81 D83 I18 L15
    Date: 2006–09–25
    URL: http://d.repec.org/n?u=RePEc:hhs:hastef:0636&r=ino
  19. By: Bowen, H.P.; Moesen, W.; Sleuwaegen, L.
    Abstract: This paper develops a “Composite Index of the Creative Economy” (CICE) for the purpose of benchmarking an entity’s (e.g., country or region) creative capacity as reflected by it’s achievement in three dimensions: Innovation, Entrepreneurship and Openness. To determine the weight each sub-dimension should contribute to the total value of the CICE, we introduce a novel method – endogenous weighting – that allows each entity to have its own unique set of “best” weights. This method addresses the issue of whether an entity’s CICE score value reflects underlying capabilities (or lack thereof) or an “inappropriate” weighting of the underlying dimensions. Our endogenous weight method isolates achievement on the underlying dimensions as the source of a higher or lower CICE score value. In this paper we construct a value of the CICE for each of nine regions: Baden-Württemberg, Catalonia, Flanders, Lombardy, Maryland, Nord-Pas-De-Calais, Quebec, Rhône-Alpes, Scotland. A region’s CICE value indicates its distance from “best practice” and can therefore be used to benchmark a region’s creative capacity relative to other regions. In this respect, a focus of our analysis is the relative creative capacity of Flanders. We also examine the absolute and relative achievement of each region on each of the three underlying dimensions to identify specific areas of strength or weakness. The results indicate that Baden-Württemberg ranks highest in terms of creative capacity while Nord-Pas-De-Calais ranks lowest among the nine regions. Flanders ranks 3rd behind 2nd ranked Maryland. However, Flanders’ rank masks that its CICE score value is 25% below that of Baden-Württemberg and 11% below that of Maryland, indicating a non-trivial gap in creative capacity between Flanders and “best practice.” On the three dimensions underlying creative capacity, Flanders ranks 2nd behind Baden-Württemberg on Innovation and Openness, but ranks 7th on Entrepreneurship (only ahead of Rhône-Alpes and Nord-Pas-De-Calais). Flanders’ relatively poor ranking on Entrepreneurship reflects it’s below average level of achievement on each of the three sub-dimensions of Entrepreneurship (ratio of newly established to existing firms, absence of a fear of failure, and venture capital as a share of GDP). This indicates that fostering and improving conditions for Entrepreneurship remains a challenge for Flanders compared to the other top ranked regions.
    Date: 2006–09–22
    URL: http://d.repec.org/n?u=RePEc:vlg:vlgwps:2006-31&r=ino
  20. By: Baldwin, John R.; Gu, Wulong
    Abstract: Le présent document porte sur la mesure dans laquelle la croissance de la productivité est attribuable au roulement des entreprises au fur et à mesure que la production est déplacée d'une entreprise à une autre du fait du processus concurrentiel. Le roulement a lieu lorsque certaines entreprises augmentent leur part de marché tandis que d'autres voient diminuer la leur. Une partie de ce roulement est le résultat des entrées et sorties d'entreprises. L'autre est due à l'expansion et au déclin des entreprises existantes qui demeurent en activité. Dans le présent document, nous proposons une méthode permettant de mesurer l'effet du roulement des entreprises sur la croissance de la productivité et nous montrons que cet effet est beaucoup plus important que ne l'indiquent les auteurs de nombreuses études empiriques antérieures. Nous soutenons que la concurrence est la principale source de croissance agrégée de la productivité du travail dans les industries manufacturières canadiennes.
    Keywords: Comptes nationaux, Entreprises commerciales, Productivité, Conjoncture économique
    Date: 2006–09–25
    URL: http://d.repec.org/n?u=RePEc:stc:stcp5f:2006042f&r=ino

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