nep-ino New Economics Papers
on Innovation
Issue of 2007‒01‒14
68 papers chosen by
Koen Frenken
Universiteit Utrecht

  1. The Industry R&D Survey: Patent Database Link Project By William Kerr; Shihe Fu
  2. When Does Distributed Innovation Activity Make Sense? Location, Decentralization, and Innovation Success By Aija Leiponen; Constance E. Helfat
  3. European mechanical companies: Technological differences and organisational similarities By Stéphane Lhuillery; Arman Avadikyan
  4. Jostling for Advantage: Licensing and Entry into Patent Portfolio Races By Ralph Siebert; Georg von Graevenitz
  5. R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe By Andres Rodriguez-Pose; Riccardo Crescenzi
  6. Barriers Against the Transfer of Knowledge Between Universities and the Industry in Newly-Industrialised Countries - An Analysis of the Regional Innovation System of Bangkok By Javier Revilla Diez; Ludwig Schatzl
  7. Transferring Science-based Technologies to Industry - Does Nanotechnology Make a Difference? By Christopher Palmberg; Mika Pajarinen; Tuomo Nikulainen
  8. Migration and Innovation - Does Cultural Diversity Matter for Regional R&D Activity? By Annekatrin Niebuhr
  9. Do Different Types of Innovation Require Specific Kinds of Knowledge Links? By Franz Toedtling; Patrick Lehner
  10. Absorptive Capacity in Practice-Based Innovation Activities: the Case of Lahti Region, Finland By Anne Paalanen; Vesa Harmaakorpi; Timo Pihkala
  11. The Merits of New Pollutants and How to Get Them When Patents Are Granted By Grischa Perino
  12. Regional Learning Networks in Medium-Tech Technologies and European Integration By Riccardo Cappellin; Luigi Orsenigo
  13. Private-Collective Innovation and the Fragility of Knowledge Sharing By Simon Gaechter; Georg von Krogh; Stefan Haefliger
  14. Nanotechnology, Industry Competitiveness and University Strategies: the Case of the UWS Nanotechnology Network in South-West Sydney By M-Cristina Martinez-Fernandez; Kim Leevers
  15. Regional Knowledge Management: Contrasting Skills in Science, Technology and Innovation Along the Atlantic Space By Teresa De Noronha Vaz
  16. Innovation Hot Spots: the Case of the Computer Services Sector in the Region of Attica, Greece By Ioannis Katsikis; Klas Eric Soderquist; Gregory Prastacos
  17. An Empirical Investigation of Female Entrepreneurship & Innovation Activities in Greece By George Korres; Christos Kitsos; Stamatina Hadjidena
  18. Patterns of R&D and Growth Performance: Can a Technological Follower Be Converted Into an Economic Leader? By Argentino Pessoa; Mario Silva
  19. Trade Liberalisation, Process and Product Innovation, and Relative Skill Demand By Sebastian Braun
  20. The Role of Research in Wine: the Emergence of a Regional Research Area in an Italian Wine Production System By Andrea Morrison; Roberta Rabellotti
  21. Strategy for Innovation and Knowledge Creation in the Aeronautical Industrial Cluster in Campania Region. By Riccardo Cappellin; Eugenio Corti; Massimiliano Bianca
  22. The Geographical and Institutional Proximity of Scientific Collaboration Networks By Frank Van Oort; Roderik Ponds; Koen Frenken
  23. Alterung und technologisches Innovationspotential : Eine Linked-Employer-Employee-Analyse By Lutz Schneider
  24. Wheeling food products around the store… and away: the invention of the shopping cart, 1936-1953 By Catherine Grandclement
  25. Innovation As a Tool for Local Development. Introducing New Technologies for the Interpretation of Cultural Heritage: the Case of the RI-SE Programme in Sterea Ellada. By Dora Konsola; Zoe Fotiadi; Aliki Marinou
  26. Science and Technology Parks in Two Lagging Regions of Spain: A Comparative Evaluation Using an Innovation Network Approach By Achilleas Tsamis
  27. Embedding Stand-Alone, ‘Local Buzz’ and ‘Global Pipeline’ Firms; a Plea for a Less Traditional Regional Innovation Policy By Evert-Jan Visser; Oedzge Atzema
  28. Innovation and Its Diffusion Among Regions:The Aeronautical Case By Javier Alfonso-Gil
  29. Intrinsic Business Cycles with Pro-Cyclical R&D By Patrick Francois; Huw Lloyd-Ellis
  30. Innovation and Productivity a Story of Convergence and Divergence Process in EU Countries By Aikaterini Kokkinou
  31. Do Process Innovations Induce Product Ones? By Maria Rosa Battaggion; Piero Tedeschi
  32. R&D and productivity: Estimating production functions when productivity is endogenous By Doraszelski, Ulrich; Jaumandreu, Jordi
  33. T&K-toiminnan verokannustimet ja yritysdynamiikka By Niku Määttänen; Mika Maliranta
  34. Knowledge and Innovation in the Indonesian Artisanal Furniture Industry By Marina van Geenhuizen; Nurul Indarti
  35. From Planning to Mature: on the Determinants of Open Source Take-Off By Stefano Comino; Fabio Manenti; Marialaura Parisi
  36. Enrollment Responses to Labour Market Conditions: A Study of the Canadian Market for Scientists and Engineers By Sumon Majumdar; Katsumi Shimotsu
  37. Technological Innovation and Urban Processes By Stefano Aragona
  38. Innovation Networks in the Learning Economy By Mercy Escalante-Ludena
  39. Showcasing Innovative Greece By Christos Bezirtzoglou; Anna Andrikopoulou
  40. New Technology, Innovation and Space By Rossetos Fakiolas
  41. Innovation and Peripherality: A Comparative Study in Six EU Member Countries By Andrew Copus; Dimitris Skuras; Kyriaki Tsegenidi
  42. Science and Technology Policies In The Adjustment Process With European Union By Elif Tunali; Bilge Terzioglu
  43. Favorable Selection in the Labor Market: A Theory of Worker Mobility in R&D Intensive Industries By Kameshwari Shankar; Suman Ghosh
  44. Knowledge Accessibility and Regional Economic Growth By Charlie Karlsson; Martin Andersson; Urban Grasjo
  45. Innovation Systems in the European Periphery: the Case of Ireland and Greece By Patrick Collins; Dimitrios Pontikakis
  46. Towards the adoption of technological innovations: decision processes in transport policy definition By Giovanni Circella
  47. Cluster Performance reconsidered: Structure, Linkages and Paths in the German Biotechnology Industry, 1996-2003 By Carolin Häussler; Hans-Martin Zademach
  48. Technology Trade in Economic Development By Matthias Busse; José Luis Groizard
  49. Determinants of University Spin-Offs’ Growth: Do Socioeconomic Networks and Support Matter? By Danny Soetanto; Marina van Geenhuizen
  50. Historical Perspective of the Role of Technology in Economic Development By Jurica Šimurina; Josip Tica
  51. Industry Learning Environments and the Heterogeneity of Firm Performance By Natarajan Balasubramanian; Marvin Lieberman
  52. Formal Knowledge Examination Institutions: Chance Or Threat to European Medium Tech-Nology SMEs? A Cognitive and Institutional Perspective By Silviya Draganinska; Rudiger Wink
  53. Creating Composite Indicators with DEA and Robustness Analysis: the case of the Technology Achievement Index By Laurens Cherchye; Wim Moesen; Nicky Rogge; Tom Van Puyenbroeck; Michaela Saisana; A. Saltelli; R. Liska; S. Tarantola
  54. Small-scale technologies for energy innovations: role and implication directions By Knol, W.H.C.
  55. Approach to the Effects of Greek Regional Universities on Development of the Country Regions By Yiota Theodora
  56. Artistic creation and intellectual property By Alcala, Francisco; Gonzalez-Maestre, Miguel
  57. Monitoring and Evaluation of Regional Innovation Strategies By Zygmunt Zminda; Tomasz Zminda
  58. New Forms of Regional Inequalities in Greece: the Diffusion of the Internet Across Greek Regions By Sophia Skordili
  59. Can Risk-aversion towards fertilizer explain part of the non-adoption puzzle for hybrid maize? Empirical evidence from Malawi By Simtowe, Franklin
  60. The Territorial Availability and Diffusion of Broadband in Finland: Lessons From Finnish Broadband Policy By Timo Hirvonen; Lauri Frank
  61. Technology, Innovation and Latecomer Strategies: Evidence from the Mobile Handset Manufacturing Sector in China By Kingsley E. Haynes; Lei Ding
  62. Market Innovations and Knowledge Transfer in the Agricultural Food Market By Marit Hoven
  63. Low-Cost Broadband Connections: A Key Factor for SME Virtual Organizations By Odysseas Sakellarides; Vassilis Angelis; George Dounias; Iason Koufodontis
  64. Smart Technologies for Environmental Safety and Knowledge Enhancement in Intermodal Transport By Giovanni Luca Barletta; Dino Borri; Domenico Camarda; Giovanni Circella
  65. Design in practice: bridging the gap between design and use dichotomies in practice-based studies By de Vaujany, François-Xavier; Fomin, Wlad
  66. Does the Internet Kill the Distance? Evidence From Navigation, E-Commerce, and E-Banking. By Guido De Blasio
  67. Picking a Winner? Evidence from the Non-Manufacturing High-Tech Industry in the Blacksburg MSA By Bieri, David
  68. Incentives to Research in European Public Universities By Joan Rosselló

  1. By: William Kerr; Shihe Fu
    Abstract: This paper details the construction of a firm-year panel dataset combining the NBER Patent Dataset with the Industry R&D Survey conducted by the Census Bureau and National Science Foundation. The developed platform offers an unprecedented view of the R&D-to-patenting innovation process and a close analysis of the strengths and limitations of the Industry R&D Survey. The files are linked through a name-matching algorithm customized for uniting the firm names to which patents are assigned with the firm names in Census Bureau’s SSEL business registry. Through the Census Bureau’s file structure, this R&D platform can be linked to the operating performances of each firm’s establishments, further facilitating innovation-to-productivity studies.
    Keywords: innovation, research and development, patents, scientists, technology
    JEL: C81 O30 O31
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:06-28&r=ino
  2. By: Aija Leiponen; Constance E. Helfat
    Abstract: Companies face an expanding set of choices about where to locate their innovation activity, both within their home countries and abroad. This location choice also requires firms to make a simultaneous choice about the organizational structure of innovation activity : almost by definition, multiple locations per firm imply some degree of decentralization. Using firm-level data on innovation output and the location of research and development (R&D) activity, we shed new light on the question of whether firms that have multiple locations also have greater innovation success. Our results indicate that, on average, having distributed R&D activity is beneficial in terms of the extent and breadth of innovation success, and the effect is strongly related to the knowledge sourcing strategies that firms employ. These results are consistent with the interpreta-tion that R&D location decisions are driven by the desire of firms to access a broad set of external sources of knowledge for innovation activities. We also find that the benefits of multiple R&D lo-cations do not apply to novel (new-to-the-market) innovations. Our results suggest that when analyzing technological innovation, it is important to distinguish between novel and imitative innova-tions, since their determinants may differ.
    JEL: O32 L22
    Date: 2006–12–21
    URL: http://d.repec.org/n?u=RePEc:rif:dpaper:1063&r=ino
  3. By: Stéphane Lhuillery (Chaire en Economie et Management de l'Innovation, Ecole Polytechnique Fédérale de Lausanne); Arman Avadikyan (Bureau d'Economie Théorique et Appliquée, Université Louis Pasteur de Strasbourg)
    Abstract: All in all, French, Italian and British companies are surpassed technologically more often than not by Swiss, Austrian and German companies. This technological delay does however not show up at the organisational level.
    Keywords: R&D, innovation, organization, international comparison
    JEL: O32 O33 O57 L23
    Date: 2006–03
    URL: http://d.repec.org/n?u=RePEc:cmi:wpaper:cemi-report-2006-013&r=ino
  4. By: Ralph Siebert (Department of Economics, Krannert School of Management, Purdue University, 403 West State Street, West Lafayette, IN 47907-2056, USA. rsiebert@purdue.edu); Georg von Graevenitz (INNO-tec, Munich School of Management, University of Munich, Kaulbachstraße 45, 80539 Munich, Germany. graevenitz@bwl.uni-muenchen.de,)
    Abstract: Licensing in a patent thicket allows firms to either avoid or resolve hold-up. Firms’ R&D incentives depend on whether they license ex ante or ex post. We develop a model of a patent portfolio race, which allows for endogenous R&D efforts, to study firms’ choice between ex ante and ex post licensing. The model shows that firms’ relationships in product markets and technology space jointly determine the type of licensing contract chosen. In particular, product market competitors are more likely to avoid patent portfolio races, since the threat of hold-up increases. On the other hand, more valuable technologies are more likely to give rise to patent portfolio races. We also discuss the welfare implications of these results.
    Keywords: hold-up problem, licensing, innovation, patent race, patent thicket, research joint ventures
    JEL: L13 L49 L63
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:trf:wpaper:184&r=ino
  5. By: Andres Rodriguez-Pose; Riccardo Crescenzi
    Abstract: The paper aims at understanding the balance between “endogenous†factors and “external†knowledge flows in the process of innovation and growth of EU regions. Research on the impact of innovation on regional economic performance in Europe has fundamentally followed three approaches: a) the analysis of the link between investment in R&D, patents, and economic growth; b) the examination of geographical diffusion of regional knowledge spillovers; and c) the study of the existence and efficiency of regional innovation systems. These complementary approaches have, however, rarely been combined. Important operational and methodological barriers have thwarted any potential cross-fertilization. In this paper, we try to fill this gap in the literature by combining in one model R&D, spillovers, and innovation systems approaches. A multiple regression analysis approach is conducted for all regions of the EU-25, including measures of R&D investment, proxies for socio-economic structure, for each region and in neighbouring regions. The empirical results highlight how the three above-mentioned factors interact with one another uncovering the importance not only of “endogenousâ€innovative efforts but also of local socio-economic conditions for the genesis and assimilation of innovation and its transformation it into economic growth across European regions. In addition, the quantitative analysis shows the importance of proximity for the transmission of economically productive knowledge.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p371&r=ino
  6. By: Javier Revilla Diez; Ludwig Schatzl
    Abstract: This paper presents empirical evidence on university-industry relations (UIR) and knowledge transfer in the regional innovation system of Bangkok and broaches the issue of adapting well-established concepts for the analysis of innovation processes in newly industrialising countries. The potential for UIR is restricted due to 1) a weak and fragmented innovation system, 2) low technological and absorptive capacities in the industrial sector, and 3) slowly improving research capabilities in the scientific sector. Hence the level of UIR in the regional innovation system of Bangkok is mainly limited to occasional and personal modes. It is suggested to strengthen the knowledge transfer capabilities within both actors and to establish effective mechanisms for bridging institutional barriers between academia and industry.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p882&r=ino
  7. By: Christopher Palmberg; Mika Pajarinen; Tuomo Nikulainen
    Abstract: Nanotechnology has been touted as a general purpose technology (GPT) and engine of growth for the 21th century, following in the footsteps of ICT. Nanotechnology is still in an early phase of development, it is scientist driven and thus largely exogenous to the economy at present. In Finland the interest towards nanotechnology is also growing. This is visible especially through relatively large public R&D expenditures and numbers of scientific publications. A key question for the further development of nanotechnology towards commercialization in Finland, as well as for most other countries active in the field, is the degree to which channels for technology transfer from public research to firms can be established and supported further. This paper uses a new and extensive survey data covering individual Finnish researchers (and inventors) active in the field to assess whether nanotechnology brings forth new issues of policy relevance in the various dimensions of technology transfer. The results offer new insights into the definition of nanotechnology. Clear differences are also observed in the agents, modes, application and commercialization paths between researchers by the intensity at which they are engaged in nanotechnology. However, the challenges appear to be similar to those related to the transfer of science-based technologies generally. The paper also reports basic frequencies across the survey data as a whole.
    Keywords: nanotechnology, Finland, technology transfer, survey data
    JEL: O31 O32 O38
    Date: 2007–01–05
    URL: http://d.repec.org/n?u=RePEc:rif:dpaper:1064&r=ino
  8. By: Annekatrin Niebuhr
    Abstract: Recent theoretical research deals with economic costs and benefits of cultural diversity related to immigration. Empirical evidence regarding the impact of cultural diversity on economic performance is still scarce. This paper aims at investigating the effects of diversity on innovation and at providing corresponding empirical evidence. We apply the knowledge production function approach to investigate the significance of cultural diversity of work force for innovation output. The regression analysis considers the determinants of regional innovation, focusing on the effect of diversity, for a cross-section of German regions in the period 1995 to 2000.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p31&r=ino
  9. By: Franz Toedtling; Patrick Lehner
    Abstract: Innovations are increasingly seen as result of an interactive process of knowledge generation and knowledge application. According to the innovation systems model the business sector, the science sector, and policy actors are involved in this process. What is often neglected in existing literature is the aspect that different kinds of innovation may require specific types of relations. Radical innovations often draw on new scientific knowledge generated in universities and research organizations. The exchange of this type of knowledge requires intensive personal interactions and thus might favor local / regional levels over others. Incremental innovations on the other hand are often taking place in interaction with customers and suppliers which are often located at higher spatial levels beyond the region. In the present paper we will analyze the relationship between the different kinds of innovation and the respective knowledge links – characterized by the type and location of innovation partners as well as by the mode of knowledge exchange. Preliminary results show that firms introducing products new to the market are relying to a higher degree on patents and they are cooperating with universities and research institutes. Hereby, researchers seem to exert a bridging function between the business and the science sector. The mode of knowledge exchange seems to be also influenced by location. Knowledge between geographically close science and industry partners is exchanged through cooperation, whereas over longer distances knowledge is more often acquired by contract research.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p513&r=ino
  10. By: Anne Paalanen; Vesa Harmaakorpi; Timo Pihkala
    Abstract: As a consequence of for example agglomeration economies, features such as good reputation and highly-skilled labour force tend to accumulate in university regions. The accumulation of highly-skilled labour and high research intensity secure a continuous flow of “raw-material†for innovations in the knowledge-based economy. However, in the regions lacking a university it is vitally important to find other ways of increasing innovation activity. Through implementation of non-linear innovation activity which combines knowledge of normal practice-based activities and science-based research, a region can create radically new perspectives of operating. The new theories of innovation suggest that a great potential of innovation exists in the structural holes and weak links of the innovation system. The new sources of innovation set demands for the innovating partners. In order to exploit the hidden potential in the innovation system the actors of the region must possess, for example, high absorptive capacity, tolerance for diversification and especially the bridging elements of social capital. The Lahti Region in Finland is one of the regions lacking strong regional research base. Determined to create a new source of competitive advantage, the Lahti Region is heading towards a vision of being a top region in promoting practice-based innovation activities. Therefore, the region has created a new policy framework to achieve the vision: network-facilitating innovation policy. The policy aims to promote networked innovation processes especially by exploiting the potential of the structural holes of the innovation system and linking the research-based knowledge from neighbouring strong research centres in the regional innovation processes. This paper examines the readiness of the regional actors to face the demands of the new policy framework. The case study is a compilation of 12 interviews of the key persons in the regional development field and a survey study among representatives of companies, educational and research organizations as well as public organizations.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p347&r=ino
  11. By: Grischa Perino (University of Heidelberg, Department of Economics)
    Abstract: The performance of market based environmental regulation is affected by patents and vice versa. This interaction is studied for a new type of innovation where new technologies reduce emissions of a specific pollutant but at the same time cause a new type of damage. A robust finding is that the efficiency of permits is affected by monopoly pricing of the patent-holding firm. This result carries over to other types of innovation. Taxes are inefficient if technologies produce perfect substitutes and share all scarce inputs. Moreover, the optimal tax on pollution might be negative.
    Keywords: Innovation; Environment; Instrument Choice; Patents; Monopoly Pricing
    JEL: Q55 L5 H23 O3
    Date: 2006–07
    URL: http://d.repec.org/n?u=RePEc:awi:wpaper:0426&r=ino
  12. By: Riccardo Cappellin; Luigi Orsenigo
    Abstract: The paper aims at investigating the transfer of tacit knowledge both at the regional and at the interregional level and it focuses on the factors and forms of the processes of interactive learning between small and medium size in medium technology sectors. The analysis proceeds from the contributions of four strands of literature, focusing on economics of agglomeration, cognitive economics, industrial strategic alliances and governance in a knowledge economy. While industrial economics interprets technology spill-over at the local level as an automatic and chaotic process allowed by geographical proximity of the firms, regional economics identifies different specific types of flows and networks, which link together in an organized way the various firms and other private and public actors within a given regional innovation system. Cognitive economics may bring a significant contribution, as it considers the relevance for economics of human cognitive aspects and it discovers the key role in the creation of new ideas of selected factors, such as the stimulus by changes in the external environment, the process of “neurognosis†or negative reaction aiming to the protection of the internal integrity, the search process constrained by cognitive proximity, the success in pattern making and the achievement of consistency and compatability, the process of “exaptation†or reconversion leading to path-dependency, the creation of new connections and routines and institutions, which allows to save the limited cognitive capacity of individuals and organizations. This theoretical framework in the analysis of the processes of knowledge creation may be schematically represented through the model of “Territorial Knowledge Managementâ€, which aims at promoting the interactive learning processes within the regional innovation systems and focuses on a selected list of knowledge levers, such as: market orientation, accessibility, receptiveness, common identity, creativity and governance. On the base of these theoretical concepts and tools, the paper analyses various case studies of firms embedded in different industrial clusters in Europe, focusing on the forms of the process of interactive learning and innovation between the various regional actors. Finally, the paper attempts to derive from that analysis useful indications for the possible extension of knowledge and innovation networks at the interregional and international level and for decreasing the regional divide in a modern knowledge economy. The research has been undertaken within the framework of the project: “IKINET – International Knowledge and Innovation Network†(EU FP6, N° CIT2-CT-2004-506242). Keywords: knowledge creation, interactive learning processes, industrial clusters, innovation policies, European integration, medium technology sectors, small and medium size firms.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p334&r=ino
  13. By: Simon Gaechter (University of Nottingham); Georg von Krogh (ETH Zurich); Stefan Haefliger (ETH Zurich)
    Abstract: Incentives to innovate is a central element of innovation theory. In the private-investment model, innovators privately fund innovation and then use intellectual property protection mechanisms to appropriate returns from these investments. In the collective-action model, public subsidy funds public goods innovations, characterized by non-rivalry and non-exclusivity. Recently, these models have been compounded in the privatecollective innovation model where innovators privately fund public goods innovations (von Hippel and von Krogh, 2003). Private-collective innovation can be illustrated in the case of open source software development. The current paper contributes to the work on private-collective innovation by investigating incentives that motivate innovators to share their knowledge in an initial situation devoid of community activity. We use game theory to predict knowledge sharing behavior, and test these predictions in a laboratory setting. The results show that knowledge sharing is a coordination game with multiple equilibria, reflecting the fragility of knowledge sharing between innovators with conflicting interests. The experimental results demonstrate important asymmetries in the fragility of knowledge sharing and, in some situations, much more knowledge sharing than theoretically predicted. A behavioral analysis suggests that knowledge sharing is not only affected by the material incentives, but also by social preferences. The results offer general insights into the relationship between incentives and knowledge sharing and contribute to a better understanding of the inception of privatecollective innovation.
    Keywords: innovation, private-collective innovation model, knowledge sharing, incentive, open source software, experimental economics, game theory
    Date: 2006–10
    URL: http://d.repec.org/n?u=RePEc:cdx:dpaper:2006-21&r=ino
  14. By: M-Cristina Martinez-Fernandez; Kim Leevers
    Abstract: University-industry alliances have long been pursued by public funded programs hoping to boost innovation spillovers in a geographical or cognitive area of research-strength by universities. However, there is still a lack of industry-university cooperation in many fields while at the same time the benefits of universities to their regions’ knowledge intensity is firmly advocated (Acs 2004, Martinez-Fernandez & Leevers 2004, Martinez-Fernandez 2004)). The issue is not limited to the dissemination of knowledge, a traditional role of universities, but to introducing change into the region’s innovation system through activities that increase industry competitive advantage. Results from a project conducted in South-West Sydney from 2003 to 2005 shows that active industry engagement by Universities offering specific expertise in frontier technologies has a positive effect in university-industry cooperation if compared with other technologies well established in the private sector. The project results also show that the role of Universities as active facilitators of industry engagement in frontier technologies is a critical element in the regional/local innovation system where the university operates. The paper discusses first the context of the emergence of the UWS Nanotechnology Network as a sophisticated knowledge intensive service activity led by the University. Secondly the paper discusses the particular case of nanotechnology as a science in an early path and the role of universities at this particular stage. Thirdly, the paper discusses the use and barriers of firms to nanotechnology applications and the role played by UWS during the duration of the project. Finally policy issues arise in relation to the role of the public education sector in the early promotion of frontier technologies. References Acs, Z. (2002) Innovation and the Growth of Cities. Edward Elgar Publishing Ltd. Martinez-Fernandez, M.C. (2004) ‘Regional Collaboration Infrastructure: Effects in the Hunter Valley of NSW’, Australian Planner Vol 41(4); Planning Institute of Australia: Queensland. Martinez-Fernandez, M.C. and K. Leevers (2004) ‘Knowledge Creation, Sharing and Transfer as an Innovation Strategy: The Discovery of Nano-technology by South-West Sydney’. International Journal of Technology Management (IJTM), Volume 28 (3/4/5/6): 560-581.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p819&r=ino
  15. By: Teresa De Noronha Vaz
    Abstract: This paper represents an effort to evaluate the current position and perspectives of science, technology and innovation in several Atlantic Regions. It is based on the results of a still running European research project (REGINA) that puts together Andaluzia, Algarve, Norte, Galicia, País Vasco, Bretagne, West Midlands and Border, Midland and Western. Not discussing the large spectrum of the goals of that project, this is an exercise to discuss the possibility of setting up a lasting partnership for regional knowledge management in the politically so important Atlantic space. Comprehending Spain, Portugal, France, United Kingdom and Ireland, this part of Europe also integrates regions lagging in terms of tacit and codified knowledge environments and, consequent innovative attitudes. Would they benefit of a better territorial development balance within the Atlantic space in case of a regional innovation system common strategy? And if so, which sectors are those to show greater skills for technological transfer within cooperative performances? Highlighting an interactive model for which knowledge creation is understood in a broad perspective and innovation implicitly demands more than a simply gathering of discoveries and inventions the theoretical framing accepts the adaptation and combination of existing forms of knowledge. This interactive and dynamic concept emphasises the external environment of the firms in addition to their internal knowledge creation capacity and refers a synthetic framework based on the concept of the learning process as a driver to redress stakeholders’ attitudes and strategic choices. In such a context, the advantages that may result from institutional geographical proximity or similarity, specific knowledge diffusion and networking in coordination of common interests could build up advantages. In short, the specific construction of a territorial knowledge base and the consequent achievement of more sustainable regional development for a large part of the European Atlantic border are discussed in this practical case. Based on secondary data from the European Innovation Scoreboard, an outline over the regional innovation performances of the considered regions will be supplied. Also, based on primary data obtained near the institutional bodies of each region, an analysis of the existent governance structures is possible. The conclusion allows considerations related to the present context for the development of an Atlantic spatial development strategy.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p695&r=ino
  16. By: Ioannis Katsikis; Klas Eric Soderquist; Gregory Prastacos
    Abstract: Elaborating on the notion innovation hot spots, we examine the case of the computer services sector in the Region of Attica, Greece. Fast-growing, geographically and industrially clustered firms are becoming an increasingly important factor for innovation and regional development. As a result, innovation hot spots enjoy rapid growth, leading to job creation, knowledge expansion and, in the best cases, sustainable development. The most recent European Trend Chart Reports (2004 and 2005) present Greece as innovation leader in the computer services sector. Computer services are characterized by a high knowledge creation and knowledge diffusion intensity meaning that the hot spots exploiting such services position high on an innovation intensity scale. Consulting, implementation, operations management and support services enjoy similar growth since they are complementary industries forming the Attica IT innovation hot spot. The purpose of our research within this field is twofold. First, we present the conditions under which this innovation leadership has emerged and come to flourish. We argue that growth in the Region of Attica has been boosted by the Information Society Program, the Olympic Games and the necessity for modernizing Greek firms, which leads them to favor investments in new technologies. Moreover, the region presents a favorable macroeconomic environment, characterized by high rates of development, increase of consumption and investments. Second, we analyze and propose a framework for maintaining the dynamics in the region -and in innovation hot spots in general- as there is a significant risk of rise-and-fall patterns occurring, leading to former hot spots transforming into “blind spotsâ€, and core competencies developed turning into core rigidities and cultural lock-in.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p429&r=ino
  17. By: George Korres; Christos Kitsos; Stamatina Hadjidena
    Abstract: The importance of entrepreneurship for economic growth has been emphasised by economic literature. The recent debate on the determinants of output growth has concentrated mainly on the role of knowledge, typically produced by a specific sector of the economy, and furthermore in the role of entrepreneurship and the implications on economic growth. Much of the recent work on economic growth can be viewed as refining the basic economic insights of classical economists. The statistical analysis is therefore very important. Nowadays there are well-organized databases, and the researcher can easily decide about the sample, rather than some years ago. Research and Development, technical change and entrepreneurship are directly related with industrial infrastructure, productivity effects and regional development. Entrepreneurship aims to reinforce the competitiveness, and to succeed the modernisation process and the convergence between firms and industries in the member states, adopting statistical techniques, using the appropriate software. This paper attempts to examine the role of entrepreneurship, and those of innovation activities (technical change, research and development and diffusion of technology) and the effects of output growth, using both a theoretical and empirical approach in a Greek case study. In particular, the purpose of this paper is to analyse the framework, the obstacles, the determinant factors using the appropriate statistical techniques and furthermore the role of female entrepreneurship in the Greek firms. It also attempts to examine the role of female entrepreneurship on innovation activities and the effects on sustainable development and in the implications on growth, economic integration, regional development and social change.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p29&r=ino
  18. By: Argentino Pessoa; Mario Silva
    Abstract: It is well known that researchers in several traditions have argued that innovation is essential to ensure countries’ economic growth (Schumpeter, 1912; Freeman, 1987; Pavitt, 1982; Romer, 1990; Jones, 1995). At the same time, others researchers have stressed the role of imitative capacity in economic catching-up (Rosenberg, 1963; Abramovitz, 1986; Fagerberg, 1987). Simultaneously, for a great lot of countries economic growth has become one of the most significant policy commitments. Accordingly, although with very different results, several countries have vastly increased their economic and policy commitments to innovation and have made investments in their innovative capacity, and in their levels of R&D expenditures. Furthermore, R&D intensity, the structure of R&D expenditures and the productivity of R&D outlays show a remarkable diversity across countries. Our paper uses this diversity and the lessons of the past three decades to shed some light on the relationship between productivity and technological change and aims to answer the following questions: How was the productivity in economic miracles propelled by a technological change? What are the reasons why it seems so easy for some few countries — and so difficult for a lot of others — to catch-up with the levels of productivity of the world technological frontier? So, in this paper we investigate the patterns of development in national innovative capacity, focusing on the country level investments in R&D, and in the examination of the patent counts, in a broad sample of countries that include the leaders and the followers in catching up to the world's leading countries. The institutional configurations, and national policy decisions that shape the different behaviour of some follower nations in terms of productivity and innovative output, are also studied.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p710&r=ino
  19. By: Sebastian Braun
    Abstract: The interaction between trade liberalisation, product and process innovation, and relative skill demand is analysed in a model of international oligopoly. Lower trading barriers increase the degree of foreign competition. The competing enterprises respond by investing more aggressively in lowering marginal costs of production. Moreover, firms reduce the substitutability of their products through additional investment in product innovation. The paper also shows that the relative demand for skilled workers may increase as a result.
    Keywords: Intra-industry Trade; Process Innovation; Product Innovation; Relative Skill Demand; Trade Liberalisation
    JEL: F12 F15 F16 O32
    Date: 2007–01
    URL: http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2007-001&r=ino
  20. By: Andrea Morrison; Roberta Rabellotti
    Abstract: The process of technological modernisation of the wine industry has increasingly become a global phenomenon involving both traditional wine producing countries – such as France, Italy and Portugal – as well as new emerging producers –as the US, Australia, South Africa, Chile and Argentina. At this respect, the literature (Aylward, 2003; Unwin, 1991) remarks that in the industry the process of technological renovation has been spurred by the consistent investment of new producer countries, as California, Australia, New Zealand and South Africa, in creating or strengthening research institutions. These efforts have led to the creation of a specialised wine research system. Conversely, it seems that producers in traditional wine producing areas have often been locked in old technologies and methods of production, due to path dependency. The aim of this paper is to shed some light on how old producing countries have reacted to the increased technological competition by emerging producers. In particular we focus on role played by research organisations (e.g. universities, public research centres) and intermediate institutions (e.g. sectoral associations, extension agencies, technological transfer centres) in generating and diffusing knowledge within the industry. The paper is based on first and second hand information collected in Piemonte, where it is located one of the most important Italian wine cluster. There, we have conducted an extensive fieldwork and interviewed several key informants working at research organisations; extension agencies, associations of producers and other associations acting as opinion/lobbying groups. The information collected are elaborated to reconstruct a detailed picture of actors, linkages and processes underpinning the regional innovation and production wine system.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p199&r=ino
  21. By: Riccardo Cappellin; Eugenio Corti; Massimiliano Bianca
    Abstract: This empirical study is a part of a large theoretical and empirical research project, “IKINET – International Knowledge and Innovation Network†(EU FP6, N° CIT2-CT-2004-506242), coordinated by University of Roma “Tor Vergataâ€, on the international/interregional dimension of existing knowledge and innovation networks, where not only information or codified knowledge, as in the collaboration between RTD institutions, but also tacit knowledge, know-how and competencies circulate. With particular focus on how to decrease the “organisational and institutional distance†between the various regions at the international/interregional level, since tacit knowledge and innovation capabilities often are embodied in human capital and individual organisations and institutions. The aim of the paper is to identify the key barriers to an efficient operation of knowledge creation and transfer and innovation networks in the Aeronautical Industrial Cluster in Campania Region, in the south of Italy. In Campania there is a long tradition in this sector and today there are about sixty enterprise that work in the sector, we use, like sample of the regional industrial, fifteen enterprise subdivide in large primer contractor and suppliers of first and second range. Information and data on the selected sample are colleted, and also by suitable questionnaires, and interviews, that the authors have submitted to the entrepreneurs and to the top managers of either the enterprises. We focalize our analysis on firm recent performance and related factor of competitiveness; organizational characteristics of the firms, competencies and management of human resources; innovation history and knowledge creation and transfer processes within the firms; finally we analyze from qualitative point of view relevance of enterprise in the cluster like technological crux. Examined sample give back a realty extremely composed with strategy really different but with some common aim and operative behaviourism that let us to deduce some homogenous group.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p643&r=ino
  22. By: Frank Van Oort; Roderik Ponds; Koen Frenken
    Abstract: The geography of innovation has established itself as a central subject in economic geography. Geographical proximity to firms and organizations like universities is supposed to have a positive effect on a firms’ innovative performance. One of the reasons causing these positive agglomeration effects is the fact that collaboration is eased by geographical proximity. Although the role of proximity for collaboration is a well researched theme with regard to innovation, less is known about the role of proximity in scientific collaboration and how this affects the probability and nature of networking among research institutions. This is surprising given the fact that collaboration in science has become a central policy issue. In this paper we set out a number of theoretical considerations about the role of geography for innovation and see whether these apply for science as well. The empirical part will focus on the geography of collaboration in scientific knowledge production, testing the hypothesis that collaboration between different kinds of organizations is geographically more localized than collaboration between the same kinds of organizations due to institutional or organizational proximity. Besides this we will analyze the importance of spatial proximity for various forms of collaboration (such as university-university and university-firm collaboration) using the concept of the gravity model. Finally we will look at the spatial structure of these collaboration networks using insights from social network methodology. Based on co-publications, central nodes of collaborative interaction and network structures are analysed over time. On the network-level we conclude on differences in the fields of life- and physical sciences and on differences on the type of relations according to university-firm, university-university and university-governmental institution linkages. On the regional level we conclude on the centrality and spatial extent of scientific collaboration hubs over time
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p762&r=ino
  23. By: Lutz Schneider
    Abstract: Growth in advanced economies is essentially driven by innovation activities. From a demographic point of view the question rises, whether the trend of an ageing workforce will affect the innovation capacities of these economies. To answer this question, the paper examines on the basis of a German linked-employer-employee-dataset, whether an older workforce lowers a firm’s potential to generate product innovations. The empirical approach is based on an Ordered-logit regression model, relating a firm’s innovation potential to the age composition of its employees. The analysis provides evidence of significant age effects. The estimated age-innovation-profile follows an inverted-ushaped pattern, it peaks at the age of about 40 years. A separate estimation shows, that the technician’s and engineer’s age seems to be particularly relevant.
    Keywords: Innovation, Ageing, Linked-Employer-Employee-Analysis
    JEL: J14 O31
    Date: 2007–01
    URL: http://d.repec.org/n?u=RePEc:iwh:dispap:2-07&r=ino
  24. By: Catherine Grandclement (Centre de Sociologie de l'Innovation, Ecole des Mines de Paris)
    Abstract: Analyzes the invention and early development of the shopping cart (supermarket trolley) in the US using original archival sources.
    Keywords: Business history, innovation, mass consumption, material culture, shopping cart, Sylvan N. Goldman, Orla E. Watson, United States of America
    JEL: L81 O31 O33 O34 N82 N72 Z13
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:emn:wpaper:006&r=ino
  25. By: Dora Konsola; Zoe Fotiadi; Aliki Marinou
    Abstract: The introduction and pilot application of innovative methods in the field of cultural heritage can have a significant effect on local development by boosting tourism and the related economic activities, increasing familiarity with new technologies and creating a sense of local pride. The five Centres for Heritage Interpretation that were developed in the Region of Sterea Ellada within the framework of the RI-SE Innovative Actions Programme offer a good example of this process, illustrating the contribution of innovation to local development and the integral role played by the Local Authorities. This paper aims to examine the role of cultural innovation in local and regional development, mainly through the promotion of cultural tourism. The use of new technologies in the interpretation of cultural heritage upgrades the services provided to the visitors of cultural sites and can promote archaeological and historic monuments and sites that are less known to the wide public, therefore channeling the flow of tourists to under-developed areas of a Region. Furthermore, it is a means of introducing new technologies and innovation in a way that is user-friendly and appealing, regardless of the user’s degree of familiarity with information technology. The European Regional Innovation (RI-SE) Programme for Sterea Ellada, was implemented in 2003-2004, and aimed to introduce and incorporate innovation in the region’s economic and cultural activities through the provision of new services and the utilization of high technology. Within the framework of this programme, five pilot Centres for Heritage Interpretation were established in the towns of Orchomenos, Lamia, Gravia, Karystos and Fragista, in close collaboration with the respective Municipalities. The case study will examine the methodology and criteria that were used for the selection of the specific heritage sites from the plethora of monuments of the Sterea Ellada Region. It will also present the different multimedia solutions that were employed in each case and outline the reception of the Centres by the public. In addition, it will focus on the contribution of the Municipalities to the success of the project and analyze its effects on local development, both in the specific Municipalities, but also in the entire Region. Finally, the project’s demonstration effect will be evaluated and the prospects of its implementation in other Regions and other countries will be considered: the RI-SE programme developed an innovative model that can easily and successfully be adapted and implemented in every country with a rich cultural heritage (like, for example, in the Mediterranean countries: Spain, Italy, Turkey), especially in areas that are not included in major tourist routes.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p316&r=ino
  26. By: Achilleas Tsamis
    Abstract: Science and Technology Parks (STPs) have been widely used as innovation support and regional development instruments in most European countries. In Objective 1 regions of South Europe STPs projects were developed during the 90s through regional, national or EU structural funds as tools for promoting innovation and technology upgrade. Most existing studies cast doubt on the effectiveness of parks in achieving their goals, focussing on the traditional measures of the parks added-value (profitability and growth) to the tenant companies, the university-industry linkages developed. However, more recent developments of territorial innovation models stress the role of networks and interactions for knowledge creation and diffusion. While these approaches imply that the Parks – in their strict spatial nature – may become redundant in a networked space, they can also be used to identify additional performance assessment criteria focusing on the role of the park for the development of interactions, linkages and cooperation inside as well as outside its area. The quantity and quality of linkages inside and outside the STP area and its operation as an innovation cooperation promoter in the regional and broader space are used in this assessment. The present work assesses the performance of STPs in Objective 1 regions of South Europe. It develops an evaluation framework that integrates – together with the traditional linear performance criteria – the concepts of networking, interaction and cooperation and uses it to compare the performance of Parks in two regions in Greece (Thessaloniki and Crete) and two in Spain (Asturias and Andalusia). Our preliminary results from in depth analysis show that while there are different levels of success in terms of the traditional metrics/criteria, we observe in general low levels of interaction and cooperation developed inside the parks as well as with the broader region. The Parks do not seem to operate – at least so far – as places that facilitate intensive knowledge exchange inside and outside their area.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p443&r=ino
  27. By: Evert-Jan Visser; Oedzge Atzema
    Abstract: This paper deals with the policy implications of a research project based on a non-traditional approach to innovation measurement in a Dutch region. This region is characterized by an ‘innovation paradox’, as it lodges large numbers of ‘creative’ people while it also underperforms in traditional innovation measurements. A survey among experts regarding regional innovation yields large numbers of innovative firms in a wide range of industries, which in traditional studies would partly go unnoticed. Further data analysis reveals that innovation in the region has no clear face in terms of firms and sectors. This is due to the embroynic state of clustering in different subsectors, the mostly social and informal nature of network ties between entrepreneurs in the region, the international level at which much innovation-oriented networking takes place, and the lack of connectivity between the latter networks and local informal networks and the embryonic clusters. In terms of their innovation profile, firms in the region are strong in creative, non-technical and combined forms of innovation. So, dynamic capabilities especially show up ‘downstream’, connecting novelty with clients and markets, and translating this into change management and new practices. Next, we found that firms strategically engage in innovation ventures, in the three ways that were explained before by Bathelt et al. (2004), i.e. seeking and combining international knowledge with one’s own (constructing ‘global pipelines’), strengthening regional ties, identity, contact and linkages (‘local buzz’), and relying on one’s own resources for innovation (‘stand alone’ strategy). One challenge for policy is to exploit these three strategies of firms. Such can be done in three ways. One is to use the abundant social capital in the region, with a view to strengthening the economic relevance of existing local networks by constructing and extending ‘global pipelines’. The second is to display leadership and formulate a ‘community argument’ for innovation (dealing with the following sub questions: why must I innovate, why must I interact in networks and clusters, and why should I do so at different spatial scales?), thus strategically reorienting the available ‘local buzz’ and enhancing its economic relevance. Together, these two proposals serve the purpose of stimulating knowledge flows ‘outside-in’ and ‘inside-out’ (cf. Wolfe & Gertler 2005). The third is to correct for the policy myopia on cluster and network initiatives. The price we pay for the Porterian approach to clustering (cf. Martin & Sunley 2003; Hospers 2005) is that a significant number of firms in the region under review that individually engage in innovation processes, are not part of ‘global pipeline’ and ‘local buzz’ processes. Hence, they do not enrich nor benefit from these processes, and may thus relatively easy leave the region. Finally, they may be less effective in innovation, in terms of speed and the market fit of new products and processes. So, both from a regional and firm-level perspective, stand-alone firms merit attention.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p265&r=ino
  28. By: Javier Alfonso-Gil
    Abstract: Information (the level of, and its rate of increase) is key for creation and diffusion of innovation and more so in an increasing interconnected world. Therefore, knowing how information is transform in innovation, who are the agents responsible for it and where and why is mostly going to happen are important questions to answer. Furthermore, besides dealing with the production of innovation we have to confront with its diffusion both, between firms within the same geographical proximity and between firms in different regions and nations. The result of this diffusion will be the formation of “innovation nodes†that will interact not only within them but, more significantly, with other faraway nodes. The increase in knowledge (information) have made possible to overcome geographical distant as a barrier to business engagement. The aeronautical sector will be the specific subject studied in this paper. It shows that in that sector, the creation and diffusion of innovation, and the proper organization of production, is accomplished with the combination of big firms (in an oligopoly market) and small and medium enterprises (SMS) in a more competitive market. A typology of innovation and diffusion by this hybrid method will be exposed and explained.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p256&r=ino
  29. By: Patrick Francois (University of British Columbia); Huw Lloyd-Ellis (Queen's University)
    Abstract: Recent empirical work finds that R&D expenditures are quite procyclical, even for firms that are not redit-constrained during downturns. This has been taken as strong evidence against Schumpeterian-style theories of business cycles that emphasize the idea that downturns in production may be good times to allocate labor towards innovative activities. Here we argue that the procyclicality of R&D investment is, in fact, quite consistent with at least one of these theories. In our analysis, we emphasize three key features of R&D investment relative to other types of innovative activity: (1) it uses knowledge intensively, (2) it is a long-term investment with uncertain applications and (3) it suffers from diminishing returns over time.
    Keywords: Schumpeterian, R&D investment, endogenous cycles, endogenous growth
    JEL: E3 O3 O4
    Date: 2006–01
    URL: http://d.repec.org/n?u=RePEc:qed:wpaper:1102&r=ino
  30. By: Aikaterini Kokkinou
    Abstract: Technology is apparently one of the main determining sources of productivity and economic growth and there is a huge literature on productivity, growth and innovation. This paper is aiming to review the main topics related to productivity, growth and innovation activities. In particular, the paper is also aiming to apply some econometric models, in order to estimate the effects of innovation activities to productivity growth in EU member states and to conclude to some safe results and policy implications.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p452&r=ino
  31. By: Maria Rosa Battaggion (Department of Economics, University of Bergamo); Piero Tedeschi (Department of Statistics, University of Milan-Bicocca)
    Abstract: We study the relationship between process and product innovations in vertically differentiated duopolies. A process innovation can lead two competing firms to improve the quality of their goods introducing a product innovation. In fact, a cost reducing innovation has two effects: it spurs production and it enhances price competition. The former effect induces both firms to increase quality. The latter encourages differentiation, inducing low quality firm to decrease it. Therefore, high quality firm always improves its quality, while the other may or may not. The prevailing effect depends on the nature of quality costs (fixed or variable).
    Date: 2006–05
    URL: http://d.repec.org/n?u=RePEc:brg:wpaper:0601&r=ino
  32. By: Doraszelski, Ulrich; Jaumandreu, Jordi
    Abstract: We develop a simple estimator for production functions in the presence of endogenous productivity change that allows us to retrieve productivity and its relationship with R&D at the firm level. Our dynamic investment model can be viewed as a generalization of the knowledge capital model (Griliches 1979) that has remained a cornerstone of the productivity literature for more than 25 years. We relax the assumptions on the R&D process and examine the impact of the investment in knowledge on the productivity of firms. We illustrate our approach on an unbalanced panel of more than 1800 Spanish man- ufacturing firms in nine industries during the 1990s. Our ¯ndings indicate that the link between R&D and productivity is subject to a high degree of uncertainty, nonlinearity, and heterogeneity across firms. Abstracting from uncertainty and nonlinearity, as is done in the knowledge capital model, or assuming an exogenous process for productiv- ity, as is done in the recent literature on structural estimation of production functions, overlooks some of its most interesting features.
    Keywords: production function; knowledge capital; productivity; R&D;
    JEL: O3
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1246&r=ino
  33. By: Niku Määttänen; Mika Maliranta
    Abstract: TAX INCENTIVES FOR R&D AND FIRM DYNAMICS We compare different tax incentive schemes for private R&D investments using a numerical model of R&D-investments and firm dynamics. We find that tax incentives that are based on the incremental annual spending increase firms´ R&D spending much more than tax incentives that are based on the level of R&D spending. However, incremental incentives also distort the allocation of R&D personnel across different firms much more than level-based tax incentives. This effect tends to lower aggregate output. We also find that whether the tax benefits are targeted to only profit-making firms, which pay corporate income tax, or given to all firms, does not make a big difference in terms of aggregate R&D spending or aggregate output.
    Keywords: research and development, tax incentives, firm dynamics
    JEL: H25 O38 L11
    Date: 2007–01–05
    URL: http://d.repec.org/n?u=RePEc:rif:dpaper:1065&r=ino
  34. By: Marina van Geenhuizen; Nurul Indarti
    Abstract: In developed countries, localized learning in clusters of small and medium-sized firms is seen as beneficial for innovation in these firms. This paper questions whether such a situation is also true for small firms in developing countries. By examining 90 furniture manufacturers in the district of Jepara (Indonesia) we observe knowledge access mainly through one-sided local learning mechanisms, e.g. in-house learning-by-doing and informal contacts with buyers (contractors). This pattern tends to cause a dominance of product innovation (changes in design) and low levels of newness, and points to a lack of advantages from local learning. The major principle behind this is the way in which subcontracting relations are structured. However, the furniture manufacturers in Jepara are willing to connect with global knowledge, but financial obstacles prevent a change. This situation calls for the establishment of centres or renewal of existing centres where global knowledge can be accessed e.g. through the Internet, and support can be given in absorption of the new knowledge.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p847&r=ino
  35. By: Stefano Comino (University of Trento); Fabio Manenti (University of Padua); Marialaura Parisi (University of Brescia)
    Abstract: Open source is an example of user-centric innovation initiated by an individual or group of users to satisfy their specific needs; the more a software evolves towards a stable release able to address the requirements of its developers, the more successful the project. In this paper we use a large data-set obtained from SourceForge.net to estimate the impact of observed project characteristics on the evolution of the source code from a preliminary release to its mature version. We show that while projects distributed under highly restrictive licensing terms (GPL) have a significantly smaller probability of reaching a stable release, applications towards sophisticated users have a larger probability of evolving in the development status. Interestingly, we find that the size of the community of developers increases the chances of progress but this effect decreases as the community gets larger, a signal of possible coordination problems. Finally, we show that the determinants of the development stage of older projects differ significantly from those of newer projects, thus supporting the common perception of open source as an extremely dynamic phenomenon.
    JEL: O38 L51 L63
    Date: 2007–01
    URL: http://d.repec.org/n?u=RePEc:pad:wpaper:0035&r=ino
  36. By: Sumon Majumdar (Queen's University); Katsumi Shimotsu (Queen's University)
    Abstract: As Canada increasingly structures itself towards a "knowledge based economy", the supply of high-skilled professionals such as engineers and other science graduates acquires more importance. Following the theoretical framework developed by Ryoo and Rosen(2004), we develop and estimate a dynamic supply and demand model for engineers and scientists in Canada. We find that the estimated stock-flow dynamics are supportive of the theoretical model. The relative employment of engineers is quite sensitive to research and development (R&D) expenditures as a fraction of GDP, particularly after 1997. We then use the estimates to develop a dynamic impulse response function. Looking at the impact of a permanent increase in allocation towards R&D, we find that the adjustment process is relatively smooth and the market adjusts in about 2 to 8 years (plus the four years of natural lag in production) to within 80% of the final steady state. For a one-time improvement in R&D allocation, we find that under rational expectations, there is an initial increase in the number of science graduates, but then it falls to below the steady state value and remains there for a long period as the initial increase works its way through the market.
    Keywords: dynamic supply and demand, engineers and scientists, R & D expenditure, adjustment dynamics
    JEL: J23 J24 J31 J44 I2
    Date: 2006–09
    URL: http://d.repec.org/n?u=RePEc:qed:wpaper:1105&r=ino
  37. By: Stefano Aragona
    Abstract: Technological innovation pushes transformatioin, rennovation and urban regenaration of areas and services. Special attention is given to the major urban centres, for the most related to nationale and/or Ue policy (Ce, 2003; Ce, 2004). A number of important questions are emerging between the reinforcement of the bigger areas, both metropolitan and urban, and the smaller centres. Moreover, according with different institutional actors it would be better more balanced process of anthropization because environmental and social reasons (APAT, 2004). In Calabria there are very few towns with more then 15.000 residents, often they are isolated and in the internal land. It requires to connect these areas by network, to push the diffusion of innovation and technology, to build up the “educated technology†(Del Nord, 1991). As said in other place (Aragona, 2003), the region is becoming to partecipate to the global village and the Ue (Ue, 1994; 1995; 1996) have policies and areas of implementation (Information Society, POR Calabbria 2000-20006; RIS+ 2001-2002). The paper faces a number of questions continuing such a topic. How are changing some of these areas that have implemented the technological innovation? Which impact are making the strategies and the choices on the spatial, functional and social context. The social effectiveness related to the quality life, said by Gasparini (1990) does it better? Could it be the outcome due to the absence of concentrated localization as is the case of other territorial areas marked by the “reticular†network (Dematteis, 1990)? Above all it requires to evaluate, said that the technological facilities are present enough, the role plays by the innovation as engine for both the cultural and awareness growth. Push for and knowledge that overcomes the mere informatization and suggestes the e-government: a formation and information path dedicated to build up new tools for local action and planning in the global competition. Identification of new settlements and spatial criteria (Appold et al., 1990), construction of urban spaces as signs of the past (Augè, 2004) but also signals of a new development and of social choesion, new citizenship (Cacciari, 1991).
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p724&r=ino
  38. By: Mercy Escalante-Ludena
    Abstract: This paper presents breakthroughs of the proposal for a methodology to develop innovation networks with virtual links. It considers stages of analysis, design, implementation and follow up and can be applied to both large companies and SMEs. Fragmented approaches have predominance in literature, for this reason we want to close that gap somehow, within the framework of a systemic, dynamic, organic, and transparent approach. The methodology values the already existing contributions, from which new elements have been added, specially the support of electronic networks (ICT). We consider that innovation in networks must transcend spatial frontiers, thus considering virtual links since they turn the organizations faster and more flexible, therefore facilitating a more efficient access to information and knowledge; considered the key aspects in today’s interactive innovation process. The research methodology was bibliographical, documental, and exploratory.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p881&r=ino
  39. By: Christos Bezirtzoglou; Anna Andrikopoulou
    Abstract: The ability of regional economies to withstand competition and to manage change is related to their capacity to innovate. The increasing importance of knowledge in determining economic performance places innovation high on the regional development agenda. The Regional Programmes of Innovative Actions are seen as a catalyst which gives regions an opportunity to try more adventurous actions that are often otherwise postponed or ignored. It is particularly important for the least-developed regions, such as, among others, the thirteen Greek regions, that they have the chance to experiment in fields outside the norm of their structural funds programmes and develop greater co-operation and networking with more developed regions. The second publication of the Greek Regional Programmes of Innovative Actions, entitled Regional Innovation Excellence in Greece, deals thoroughly with the programmes themselves, notably by presenting a comprehensive inventory of each individual action as well as attempting to produce their first clustering categorisation. Clusters represent a different way of dividing the regional economy. Cluster policy is a ‘mature’ policy area in some countries, and one that is emerging in others.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p928&r=ino
  40. By: Rossetos Fakiolas
    Abstract: The new geography of the R&D activities As a rule, new technologies in today’s world are the result of a long R&D process. This includes basic theoretical and applied research, as well as repeated testing which ensures that the new techniques coming out of the previous processes are ready to be applied in production and/or to enrich the output-mix with new products. In a broader sense, R&D generates also new ideas and techniques that contribute to the introduction of more efficient methods in the organization of production. In that part in which the non-marketable results are significant, the R&D activity is primarily state funded or financed by international organizations. It manifests a wide spatial distribution, spreading practically to all countries, and includes mainly research aiming to improve public health and security conditions, and to raise agricultural efficiency. It aims also to increase environmental protection and to create positive external economies that promote the public interest. In many big countries a considerable amount of state funded research serves military purposes and the exploration of space, with some of it having spillover effects for peaceful purposes. In the remaining part of the R&D that is conducted in the private sector of the economy, the Multinational Enterprises (MNEs) are the dominant players. In the era of globalization they have emerged as principal economic actors and are even more important in the application of new technologies. They dispose of large material resources and can recruit scientific and engineering talent from all over the world. It matters therefore where they locate their R&D. Given that the developed countries spend on R&D 2-3% of their GDP, amounting to the largest part of the world research expenditure, the traditional view has been that those countries account also for nearly all research activity. According to the UN World Investment Report 2005, however, the view of more complex production activities being undertaken in the North and simpler ones in the South is less and less a true reflection of reality. In some developing countries like China, India, Pakistan and North Korea, the state budget allocations for R&D expenses, including those for military research, has been high. The actual research output per unit of expense may be even higher, in comparison to that of the developed countries, because their wage levels and the cost of the basic infrastructure (building and various kinds of materials) are lower. Many of their researchers, however, are not less efficient and inventive than their homologues in the more developed countries. Further, MNEs now view parts of the developing world not only as key sources of cheap labour, but also of growth, skills and even new technologies. They have accelerated the pace of their direct investment in overseas R&D and the delocation of R&D activities in other countries, acquiring or establishing new laboratories abroad and integrating them into global R&D networks. They have many reasons to implement those policies: Their purpose is to source foreign technology, gain access to the local science base, hire foreign skilled engineers and benefit from local expertise and scientific excellence. They also want first, to utilize their subsidiaries in adapting the local market products to those developed in the research laboratories of the mother multinational company; and second, to adjust their own products to the local market and manufacturing processes. R&D activities of acquired subsidiaries are more concerned with applied research and scanning of local technologies, while new established subsidiaries generally focus on the suitable for the local market development of products based on technologies applied in the mother company. All told, small and less developed countries contribute now substantially to the world research output in three main ways: By running their own public and private research centers; as partners and employees of the subsidiaries of the MNEs established in them; and through their nationals doing research work in foreign universities and research centers. Despite its alleged detrimental effects, globalization, whatever its definition, appears to be reducing at a quick pace the spatial inequalities in research activities. The ways and means of those developments and their actual effects will be analyzed in the proposed paper. Policy implications Exploring the spatial allocation of the R&D activity may lead to useful conclusions for rational policy decisions. The establishment of MNEs in any country has overall positive labour market affects. It may, however, cause unemployment to the less qualified workers, in the usual cases that labour intensive processes are introduced in production lines carried out with traditional techniques. R&D activities established by the MNEs in a host country generate also positive spillovers in it, by strengthening its policies designed to attract FDI in research and innovation, as well as through an increase in the local demand for highly qualified persons. The more pronounced the presence of foreign R&D subsidiaries in a host country, the higher the demand for domestic researchers. It follows that well trained and with appropriate work attitudes graduates of tertiary education in any country can find satisfactory employment, at home or abroad. The national borders are also open for the highly skilled. Far from causing a brain drain, their emigration develops, as a rule, into a brain gain because it creates incentives for more and better training in the sending country. Eventually, it develops also into a brain exchange between sending and receiving countries, for their mutual benefit. In the last fifteen years, for example, the Chinese and Indian researchers in the universities and the technological parks of many developed countries have contributed considerably to the economic development of their respective countries. Up until very recently, in Greece as well about nine out of ten persons with responsible positions in the academia, the research centers and practically in all walks of life had some research experience abroad. The hypothesis which will also be tested in the proposed paper is that, higher degrees of R&D internalization are associated with minimal negative effects of any brain drain Main Bibliography Bein M. and Docquier Fr 2004 “Skilled Migrationâ€, Brussels Economic Review, Vol. 47-No1, Spring, Special Issue Cornelius W., EspenshadeT. J. and Salehyan I. 2001 “The International Migration of the Highly Skilled: Demand, Supply, and Development Consequences in Sending and Receiving Countries†La Jolla, Uni. of California, San Diego United Nations 2005 “World Investment Report 2005. Transnational Corporations and the Internationalization of R&Dâ€, New York and Geneva Various publications in English and Greek by Lambrianidis L., Liargovas P., Liberaki Ant., Petrakos G., Pournarakis M. and Thardanidis Ch.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p861&r=ino
  41. By: Andrew Copus; Dimitris Skuras; Kyriaki Tsegenidi
    Abstract: The present work compares rates of innovative activity among firms located in peripheral dynamic and central lagging areas of the European Union. Data on 600 businesses located in twelve areas, in six countries of the EU were collected in the framework of an EU- funded research project (Aspatial Peripherality, Innovation and the Rural Economy- AsPIRE- QLK5-2000-00783). Empirical evidence shows that the regional rate of innovative activity is very well predicted by easily observable firm characteristics. Oaxaca-Blinder like decompositions between the difference in rates of innovative activity in peripheral and more central areas are undertaken. Decompositions show that the major part of the observed differential innovative activity rates is unobservable, i.e., it is due to unobserved characteristics and not due to observable firm characteristics. Unobserved characteristics may be either firm specific (human and entrepreneurial capital, etc.) or region specific (institutional environment, social capital, traditional economic factors, etc.) and constitute an unobserved type of innovation specific ‘untraded interdependencies’. This conclusion is important for planning policies to support innovation and especially to the regionalization of innovation policies. -
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p295&r=ino
  42. By: Elif Tunali; Bilge Terzioglu (Department of Economics, Ege University)
    Abstract: This paper focuses on technology and competition policies in the emerging countries. We present an analysis of interrelationship between technology and competition within evolutionary approach in three dimensions: (1) International Division of Labor, (2) Global Market System, (3) Dependency. Government intervention in the technology and competition processes is vital for developing countries. Moreover, national policies are not adequate, common acts applied by inter and supra national institutions are necessary. Through this aspect, documenting the common science and technology policies applied and results achieved in European Union and Turkey, we compare Turkey with new member states of EU.
    Keywords: Technology, International Division of Labor, Competition Policies.
    JEL: O34 O38
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:ege:wpaper:0608&r=ino
  43. By: Kameshwari Shankar (Charles River Associates, Boston, MA); Suman Ghosh (Department of Economics, College of Business, Florida Atlantic University)
    Abstract: This paper builds a theoretical model to address evidence on labor mobility patterns in technology-intensive firms engaged in R&D. Labor turnover in these firms is characteristically different from turnover in traditional industries both in size and composition. Specifically, the pool of workers switching employers comprises of relatively productive workers. Our model focuses on distinguishing features of R&D-intensive firms, in particular, the stochastic nature of returns to R&D investment and the transmission of knowledge spillovers through worker movement, to explain patterns of labor mobility in these firms. The analysis also serves as a tool to analyze the role of Non Disclosure Agreements in wage contracts.
    Date: 2005–12
    URL: http://d.repec.org/n?u=RePEc:fal:wpaper:05006&r=ino
  44. By: Charlie Karlsson; Martin Andersson; Urban Grasjo
    Abstract: This paper analyzes the role of knowledge accessibility in re¬gional economic growth. The research question is the following: can the variation in knowledge accessibility between regions in a given period explain the variation in their growth performance in subsequent periods? As knowledge measures, we use company R&D, university R&D and patents. A main assumption in the paper is that knowledge accessibilities as a measure of knowledge potentials transform into potential knowledge flows. Our regression results indicate that the intra-municipal and intra-regional knowledge accessibilities of municipalities are significant and capable of ex¬plaining a significant share of the variation in growth of value added per employee between Swedish municipalities. However, the inter-regional knowledge accessibility of municipalities turned out to be insignificant. This is interpreted as a clear indication of spatial dependence in the sense that the knowledge resources in a given municipality tend to have a positive effect on the growth of another municipality, conditional on that the municipalities belongs to the same functional region. Thus, the results of the analysis indicate that knowledge flows transcend municipal borders, but that they tend to be bounded within functional regions. Also, the analysis shows that there is no remaining spatial correlation among the residuals of the spatial units (municipalities) when using accessibility measures in the model, which confirms that the spatial dependence is captured by the accessibility variables.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p93&r=ino
  45. By: Patrick Collins; Dimitrios Pontikakis
    Abstract: Two decades ago, Greece and Ireland stood passive spectators of political, economic and technological developments at the core of an emerging European Economic Community. Away from the industrial centres of Europe, the attainment and application of new ideas, it seemed, had no place among the prescriptions of policy. The pursuit of each country’s comparative advantage dictated that they be net consumers of technological wares invented elsewhere. And while a lot has changed in the meantime, a great deal has also endured. Today, innovation is no longer confined to the fringes of industrial policy; it features prominently, throughout the continent, as ‘the solution’ to the re-discovered riddle of competitiveness. Ideas on how to best mobilise intellectual assets for innovation abound. Theory suggests that institutions are important in shaping productive efforts towards innovation; the experiences of Ireland and Greece offer a fitting testing ground. Ireland has made strides in the FDI route to prosperity, no longer labelled a cohesion country. Greece however faces pressing economic problems, in the aftermath of celebrated, largesse-fuelled growth. Over the period in question though, nowhere else have the differences between the two countries become more accentuated (and apparent), as in matters of innovation. We propose that the key to these differences lies with the drafting of policy and the consequent shaping of their institutions. We observe that importing solutions from abroad, with Greece looking to Brussels and Ireland to the US, was central to their respective experiences.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p707&r=ino
  46. By: Giovanni Circella
    Abstract: The widespread of technological innovations is rapidly changing the way modern societies are organized. Such phenomenon highly affects the economy of most developed countries (and, more recently, of developing countries, too), influencing work organization and habits. Besides, technological innovations modify the way in which transport systems are organized, by introducing new transport solutions as well as by upgrading the performances of the existing transport systems, in accordance to a more efficient organization. Several tools have been designed to predict the effects of the adoption of technological innovations in transport. The aim of this paper is to deal with the decision processes involved in the definition of the transport policies for the introduction of such technological solutions. To do this the way in which the new transport solutions affect the local context is analysed. In particular, this work aim to identify the most relevant attributes which influence the decision processes on the adoption of such technological solutions, with reference to their impact on the territory and on the economic activities. To do this, the analysis focuses on the effects involved by the use of wireless technologies and radio frequency identification into seaport infrastructures. Such technologies enable an easier identification of goods in transport terminals; this implies advantages in the organization of the terminal activities, allowing lower time and costs for handling, and at the same time it ensures a greater compliance to security requirements, thus upgrading the level of the performances in these transport systems. On the other hand, the effects of the improvements in transport systems affect the economic context in which transport infrastructures are set. Thus, the adoption of such a technological innovation can represent the chance for local development of the region, due to the better performances of the transport system and to the consequent increased territorial accessibility.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p556&r=ino
  47. By: Carolin Häussler (Institute for Innovation Research, Technology Management, and Entrepreneurship, Ludwig-Maximilian University of Munich. haeussler@bwl.uni-muenchen.de); Hans-Martin Zademach (Institute of Economic Geography, Ludwig-Maximilian University of Munich. zademach@bwl.uni-muenchen.de.)
    Abstract: This paper addresses the evolution of biotechnology clusters in Germany between 1996 and 2003, paying particular attention to their respective composition in terms of venture capital, basic science institutions and biotechnology firms. Drawing upon the significance of co-location of “money and ideas”, the literature stressing the importance of a cluster’s openness and external linkages, and the path dependency debate, the paper aims to analyse how certain cluster characteristics correspond with its overall performance. After identifying different cluster types, we investigate their internal and external interconnectivity in comparative manner and draw on changes in cluster composition. Our results indicate that the structure, i.e. to which group the cluster belongs, and the openness towards external knowledge flows deliver merely unsystematic indications with regard to a cluster’s overall success. Its ability to change composition towards a more balanced ratio of science and capital over time, on the other hand, turns out as a key explanatory factor. Hence, the dynamic perspective proves effective illuminating cluster growth and performance, where our explorative findings provide a promising avenue for further evolutionary research.
    Keywords: Cluster evolution, dynamic perspective, basic science, venture capital, biotechnology, Germany
    JEL: O18 O32 L22
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:trf:wpaper:188&r=ino
  48. By: Matthias Busse (Hamburg Institue of International Economics (HWWA)); José Luis Groizard (Universitat de les Illes Balears)
    Abstract: Recent evidence on the respective contributions of institutions and trade to income levels across countries has demonstrated that – once endogeneity is considered – institutional quality clearly dominates the effect of trade. We argue that overall trade is not the most appropriate measure for technology diffusion as a source of productivity growth and propose to focus on imports of research and development (R&D) intensive goods instead. Overall, we confirm previous findings that institutions matter most and that overall trade is not positively associated with per-capita income levels. Yet this does not hold for technology trade, as there is a positive and significant linkage between technology imports and income levels. This outcome is robust to various model specifications, including an instrumental variable approach.
    Keywords: Growth, Technology Diffusion, Trade, R&D Spillovers.
    JEL: F10 O11 O40
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:ubi:deawps:22&r=ino
  49. By: Danny Soetanto; Marina van Geenhuizen
    Abstract: University spin-offs (USOs), as a type of entrepreneurial firms, face the challenge of obtaining sufficient resources to realize perceived business opportunities. USOs are vulnerable to many obstacles in this endeavor, particularly obstacles related to a lack of entrepreneurial knowledge (skills). Support such as office facilities, loan, and business coaching provided by incubator organizations, may help USOs to overcome obstacles. On the other hand, USOs may also overcome the lack of resources by participating in networks of supportive relationships. Social networking by USOs, including its spatial dimension, is not well understood. For instance, it is still not known how universities as a main source of knowledge contribute to the knowledge needs of nearby USOs; similarly, the spatial layout of knowledge relations of USOs has remained virtually unknown. This paper attempts to fill this knowledge gap. Our conceptual model of early growth of USOs, in terms of knowledge needs and fulfilment, is based on resource-based theory and social network theory. In this paper, we assume that USOs’ embeddedness in a network of ties is an important source of variation in the acquisition of knowledge resources. We argue that, aside from support from incubation organizations, USOs that maintain networks rich in bridging or boundary-spanning ties with knowledge institutions/actors are better-off compared with USOs that don’t employ such ties. We focus on the role of local institutions, particularly the university, as a source of knowledge. Our assumptions are tested on the basis of a sample of academic spin-offs of TU Delft, the Netherlands. The results from regression modeling are expected to support the embeddedness hypothesis and to produce new insights about the link between USOs’ social networks, the acquisition of knowledge and survival and growth.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p467&r=ino
  50. By: Jurica Šimurina (Faculty of Economics and Business, University of Zagreb); Josip Tica (Faculty of Economics and Business, Unviersity of Zagreb)
    Abstract: The focus of this paper is to investigate technology changes and influence on economies since the First Industrial Revolution. The First Industrial Revolution was the first point in time when both increase of GDP per capita and population occurred at the same time (avoiding the Malthusian trap). Thus the selected point in time. Furthermore, developments of the late 18th and 19th centuries have some common properties with development of new technologies today. Even though the process of technological change changed during this time, there are still some lessons to be learned from distant and near history on how to gauge policies for fostering successful technological advances. Changes that occurred are relevant for respective economies, industries, companies and individuals. On all these levels changes occurred that were unprecedented in history before the First Industrial Revolution. It is not suggested that technological progress of centuries before the First Industrial Revolution was insignificant, but it certainly did not have such a profound impact in all areas of human life and existence.
    Keywords: development, economic history, technology
    JEL: N70
    Date: 2006–11–29
    URL: http://d.repec.org/n?u=RePEc:zag:wpaper:0610&r=ino
  51. By: Natarajan Balasubramanian; Marvin Lieberman
    Abstract: This paper characterizes inter-industry heterogeneity in rates of learning-by-doing and examines how industry learning rates are connected with firm performance. Using data from the Census Bureau and Compustat, we measure the industry learning rate as the coefficient on cumulative output in a production function. We find that learning rates vary considerably among industries and are higher in industries with greater R&D, advertising, and capital intensity. More importantly, we find that higher rates of learning are associated with wider dispersion of Tobin’s q and profitability among firms in the industry. Together, these findings suggest that learning intensity represents an important characteristic of the industry environment.
    Keywords: Learning, Firm Heterogeneity, RBV, Productivity
    Date: 2006–12
    URL: http://d.repec.org/n?u=RePEc:cen:wpaper:06-29&r=ino
  52. By: Silviya Draganinska; Rudiger Wink
    Abstract: For most SME in incumbent medium-technology sectors, international business is only possi-ble, if additional support by specified institutions is provided. These additional services in-clude information on foreign markets – regulation, market partners, sales potential – as well as coordination – for trade fairs, common international recruitment and qualification strategies – and capabilities like access to financial markets or international public funding for interna-tionalisation or cutting-edge technological knowledge. For many of these services, private provision is possible, as exclusive use and rivalry in consumption are given. For other ser-vices, however, network characteristics restrict a completely private provision. The proposed paper analyses institutional arrangements particularly designed on regional, national or European level to support linkages between organisations and networks in differ-ent European regions. The investigation is based on information collected within the frame-work of the “IKINET project – International Knowledge and Innovation Network†(EU FP6, N° CIT2-CT-2004-506242). The specific challenge of the institutions investigated within this paper refers to linkages between organisations and networks with different institutional de-signs, e.g. the role of public and/or private supply, the characteristics and subjects of services, organisational structures and modes of coordination. These institutions attempt to bridge the gap between SME and organisations in different regions, but also to ease the access to EU funding for transnational (transregional) cooperation between SME. The paper will analyse their products, organisational structure, funding and codes of interaction. This investigation will be used to identify general and regionally specific prerequisites for effective interregional boundary spanning institutions. Secondly, the connectivity between the institutions will be analysed to reveal necessary standards or institutional arrangements to secure interregional trust in cooperation. These standards can range from rather informal, for example on the basis of business norms in trade fairs, to completely formal arrangements, for example in the case of contractual agreements on intellectual property rights and licenses. The assessment of these institutional arrangements uses an integrative methodological framework based on institu-tional analysis to overcome information asymmetries in cooperative innovative processes, sociological and cognitive psychological models of organisational and cognitive proximity and management models for SME as learning organisations. As a result, insights are expected for the European Union, which institutional arrangements are necessary for technology plat-forms on a regional level to secure interregional knowledge interactions.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p404&r=ino
  53. By: Laurens Cherchye; Wim Moesen; Nicky Rogge; Tom Van Puyenbroeck; Michaela Saisana; A. Saltelli; R. Liska; S. Tarantola
    Abstract: Composite indicators are regularly used for benchmarking countries’ performance, but equally often stir controversies about the unavoidable subjectivity that is connected with their construction. Data Envelopment Analysis helps to overcome some key limitations, viz., the undesirable dependence of final results from the preliminary normalization of sub-indicators, and, more cogently, from the subjective nature of the weights used for aggregating. Still, subjective decisions remain, and such modelling uncertainty propagates onto countries’ composite indicator values and relative rankings. Uncertainty and sensitivity analysis are therefore needed to assess robustness of final results and to analyze how much each individual source of uncertainty contributes to the output variance. The current paper reports on these issues, using the Technology Achievement Index as an illustration.factor is more important in explaining the observed progress.
    Keywords: composite indicators, aggregation, weighting, Internal Market
    JEL: E13 E60 F02 O47
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:wpe:papers:ces0613&r=ino
  54. By: Knol, W.H.C.
    Abstract: Energy innovations with sustainable fundamentals are needed to fulfill energy demands for the coming decades. This leads to a seeking process for new knowledge and technologies in order to create incremental and breakthrough energy innovations. The question is what the role is of small-scale technologies (nanotechnologies) for these innovations? This paper examines in a brief and non-exhaustive manor the role and implication directions of small-scale technologies for energy innovations. First, the paper describes the necessity for energy innovations and small-scale technologies. Next, based on examples role and implication directions are discussed. The conclusion focuses on the outline presented.
    JEL: Q40 O33 L00
    Date: 2005–01–26
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1325&r=ino
  55. By: Yiota Theodora
    Abstract: Although the start of the debate on the contribution of universities to the local and regional development dates back to several decades ago, it is only in the past 25 years that it has been intensified and seen from a new angle of investigation and consideration. It is therefore imperative that the “higher education – development†relationship be reviewed and placed on different basis. The causes for this is the major change in the content of “development" and the concept of “university†[mainly in terms of its role in the society and economy], the new policies and socio-economic conditions globally, the contemporary weight attributed to new technologies and knowledge dissemination as a “development factorâ€, as well as the large number of unsuccessful attempts to use the universities a “means†for development. In the context of this general consideration at global level, it is investigated whether the Greek regional universities- as they have been established, allocated, organized and operating- have played, and may play, some part in the development of the broader areas [region, town]. In other words, it is investigated whether the expansion of higher education institutions throughout Greece has contributed to the improvement of the education quality standard and resolution of the country’s “regional problemâ€. The approach to this question is based on the grounds of two principal pursuits. First, it is studied whether and how the expansion of university education has been used as a “means of development†at the principal stages of the country's “regional development†[1946-1999]. It is, therefore, investigated whether the policy on regional universities planning and establishment was integrated in the broader framework of policies on development and education, also taking into account the regional and local specificities, needs and capabilities. Second, it is studied which are the main “operational factors†that seem to have influenced the development role of regional universities and the relationship of the latter with local societies. The implementation of the study was based on the investigation of the relevant international and Greek bibliography, and on a series of surveys focusing on : a) the Greek planning system for “developmentâ€, “spatialâ€, “regional policies†and their association with “higher education†and b) the entirety of regional universities [8 universities, 1999] and cities - prefecture capitals of Greece [53], placing special emphasis on the seventeen university-cities [2003].
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p540&r=ino
  56. By: Alcala, Francisco; Gonzalez-Maestre, Miguel
    Abstract: We analyze artistic markets considering three key distinctive features that have been overlooked by the standard analysis on intellectual property. These features are the dynamic link between the current number of young artists and future high-quality artistic creation, Rosen's superstars phenomenon, and the role played by promotion costs. Introducing them into an overlapping-generations model brings about a new perspective on the consequences for artistic creation of changes in the copyright term, progress in communication technologies favoring market concentration by stars, and the enlargement of markets. The conventional result that longer copyrights always stimulate artistic creation only holds as a particular case.
    Keywords: superstars; copyright; innate abilities; talent.
    JEL: O34 L82 J44
    Date: 2005–10
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1287&r=ino
  57. By: Zygmunt Zminda; Tomasz Zminda
    Abstract: Almost every textbook related to management includes chapter devoted to four key functions of management. Even a little-perceptive researcher will easily find the term of “controlâ€. However in literature there is definitely lower attention paid to the term of ‘monitoring’, especially if it refers to Regional Strategy. It entails difficulties to find ideal practices of monitoring and evaluation of Regional Innovation Strategythat would be suitable for Polish conditions. However, we can derive lessons from the best practices – (solutions) models that have been introduced and turned out to be useful in other regions of Europe or even the globe. The article covers the most important issues concerning essence of monitoring. It includes a consideration of some of the world best practice in search for the origins of monitoring of regional innovation capacity. At second part of the article authors present the conception of a simple monitoring and evaluation system of Regional Innovation Strategy that has been created and implemented in lubelskie region of Poland. Finally we show how to strengthen regional policy using monitoring system outlets we described.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p598&r=ino
  58. By: Sophia Skordili
    Abstract: A large number of studies dealing with the evolution of regional inequalities in Greece insist to make use of improper and outdated indices. Indices such as the number of telephone lines per capita and electricity consumption per capita were suitable to describe regional inequalities during the previous decades however, nowadays, they present insignificant regional variations. Among others, the diffusion of the internet to greek regions, is a useful indication of their growth potential and technological capacity. There is no doubt that internet can powerfully influence individuals, places, societies and economies and these effects are likely to grow over the foreseeable future. Primary data show that there is a notable imbalance at national level in terms of per capita usage levels. The disparity of the internet access around the country has given rise to the issue of a national digital divide. This paper investigates and maps the differences in the internet penetration rate to population and businesses across Greek regions and proceeds to a preliminary identification of the determinants of this unequal Geography. Data limitations, and paucity of earlier research make this a challenging task.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p895&r=ino
  59. By: Simtowe, Franklin
    Abstract: This study investigates the linkage between attitudes towards risk and adoption. We empirically examine the relative risk premium related to fertilizer-use among 404 farmers from Malawi and examine the relationship between risk aversion on fertilizer-use and the adoption of hybrid maize. Results show that Malawian farmers exhibit absolute Arrow-Pratt risk aversion towards the use of fertilizer. The findings also reveal that risk aversion towards the use of fertilizer is strongly associated with low intensity of hybrid maize adoption and that other than the safety net programs, human and financial capital variables such as age, household size, land size and off-farm income can be helpful in explaining the non-adoption puzzle. While safety net programs such as the free input distribution increase the likelihood of adoption, they are associated with low adoption intensity for hybrid maize. A key lesson is that when considering promoting a technology, it is important to assess the profit distribution associated with the use of complementary inputs and its implications for risk preference among technology users in order to avoid formulating misguiding policies.
    Keywords: Adoption; hybrid maize; fertilizer; risk-aversion; Malawi
    JEL: Q01
    Date: 2006–09–20
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1241&r=ino
  60. By: Timo Hirvonen; Lauri Frank
    Abstract: Most countries dispose towards the development of the information society (IS). Due to increased political interest, there has also been a growing need to collect and compile IS statistics for informed decision-making. Thus, various indicators have been collected and different indices developed to measure IS, to monitor its development and to compare countries in terms of IS performance. Although there is no unambiguous definition of what IS is actually composed of, the availability and use of information and communications technology (ICT) is seen to be an established part of it. This article examines the case of one IS indicator: the measurement of the availability of broadband in Finland from the year 2001 to 2004. The focus is on the overall sensibility of the indicators approach, the evolution of territorial differences at different spatial scales, and the effectiveness of the broadband policy in Finland in years 2001-2004. The analysis shows that the indicators of the availability of broadband might be misleading for purposes of policy formulation and monitoring. The results also indicate that the Finnish broadband policy has resulted in regional differences and spatially uneven impacts in terms of availability. This article is an outgrowth of the ESPON project “Identification of Spatially Relevant aspects of the Information Societyâ€.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p761&r=ino
  61. By: Kingsley E. Haynes; Lei Ding
    Abstract: Since the entry of Chinese domestic mobile handset manufacturers in 1998, Chinese domestic suppliers have successfully surpassed the market share of joint ventures (JVs) while direct imports have been largely phased out. By examining China’s mobile handset manufacturing sector as a whole and through case studies, we found several factors that contributed to the success of China’s domestic handset manufacturers which can be classified into three categories: market conditions, competition, and government’s support.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p17&r=ino
  62. By: Marit Hoven
    Abstract: Food markets change with increasing wealth and the globalization of the economy. WTO and EU are challenging countries to enhance lower level of national protection and regulation of markets, including the markets for agricultural foods. Thus, the producers of food are continuously exposed for competition. As an answer to this food producers in Norway have looked for different possibilities to keep up the level of production and profitability. To some degree producers have adapted to new markets by either introducing new products for a new set of customers, or by making changes in existing products to satisfy the customers preferences. Export of high quality sheep meat from Norway to Japan can be mentioned as an example of market innovations, one of the five types of innovations described by Schumpeter (1934). In later years we have seen a tendency for groups of customers paying more for food products of certain origin, taste, design or other qualities. Although the cooperatives still are dominant in food processing and marketing in Norway, there are now an increasing number of farmers working with market innovations outside the traditional channels. Possibilities for success might depend on factors as culture, price, design and more. Specialised knowledge in different professions seems to be relevant when handling production, processing and marketing. Questions raised in this paper are: Is there a connection between market innovation success and the farmer’s ability to develop and transfer knowledge? How can we measure, understand and describe such processes?
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p352&r=ino
  63. By: Odysseas Sakellarides; Vassilis Angelis; George Dounias; Iason Koufodontis
    Abstract: In an open global market, SMEs are facing new challenges while trying to compete with large worldwide corporations. The forming of innovative alliances, known as virtual organizations (VO), is one of the most interesting proposals to achieve competitiveness and exploit strategic advantages. However, besides the obvious positive potential of innovative actions like VOs, there are several drawbacks, especially when SMEs are involved in such projects. VOs have very high needs for IT and communications; in fact they rely so much on them that the forming of a VO is only possible with the development of an extensive information and communication infrastructure. A lot of innovating management, re-forming and re-structuring is involved in joining several independent companies into a new virtual schema and several cultural, economical and legislative problems must also be overcome. In this paper we focus on the technological needs, and in particular, the need for an organization-wide data sharing and communication network. The high cost involved with the investments necessary in IT and communications technology make the effort harder for SMEs, even if it was to be assumed that they could manage the other important aspects of forming a VO. Along with the cost of computer equipment and specialized software, networking cost has until recently been a particularly prohibiting factor for SMEs even on the most advanced business sectors. A new term, the “virtual organization technology threshold†is introduced, defined as the minimum of IT and communication technologies necessary to form a “true†virtual organization, in its pure and functional form described and widely adopted by the scientific community. The investments needed for IT and communications to form a VO are analyzed and compared to the related investments of conventional SMEs in EU. The evolution in the cost, focused around the networking tools, is then examined to extract useful information about the feasibility of such specialized investments compared to the overall investment and turnovers of typical SMEs. We then argue that a recent development, the price drop and wide spread of broadband connections can act as a “key factor†that could make the difference in lowering the “threshold†and increasing the possibilities for SMEs to compete successfully by utilizing technological advantages and innovations that have until now considered to be more suitable for larger enterprises.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p890&r=ino
  64. By: Giovanni Luca Barletta; Dino Borri; Domenico Camarda; Giovanni Circella
    Abstract: International concerns about security in transport systems are leading to a new international regulation in this field. This introduces new requirements for operators and authorities as well as it opens new challenges, in particular when referred to seaports and maritime transport in the Mediterranean area, where many seaport terminals and infrastructures are affected by a noteworthy technological divide from North European contexts. In such contexts, the adoption of the new regulations can represent the right chance for upgrading the local operative standards, increasing latu sensu the quality of maritime transport performances, while conferring a greater level to security and safety checks. This paper explores the chances for increasing the level of Mediterranean seaport competitiveness allowed by technological innovations in transport systems, both in operations and organization of these infrastructures. The aim of the work is to study the effects of the adoption of technological solutions such as wireless communications and radiofrequency identification on the competitiveness of Mediterranean seaport infrastructures. Technological solutions designed to identify good items help operators in organizing activities in terminals and make maritime transport faster in delivering goods, by cutting the handling time and costs in seaport terminals. Seaports that adopt this kind of technologies, and the surrounding economic areas connected to seaports, have a greater attractiveness on shipping companies and operators, since they allow faster handling activities and easier checks on goods. Besides, the analysis of direct and indirect effects of the use of such technologies specifically focuses on the contribution that the use of these solutions gives in ensuring higher security levels, by increasing the level of information and knowledge associated to goods. The different types of security provided (e.g. for people, environment and goods) and the extreme flexibility of the technologies involved give the overall worth of the challenge. It seems to be a great chance of growth for the Mediterranean area, more than a mere compliance to the international security regulations.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p607&r=ino
  65. By: de Vaujany, François-Xavier; Fomin, Wlad
    Abstract: Various trends related to technology, organizations and environment have resulted in fuzzy differences between 'design' and 'use' or 'designers' and 'end-users'. But despite the growing intricacy between the ICT design and organizational practice, the bulk of the IS literature still enact classic dichotomies “design-use”. First, in order to synthesize the current IS literature aiming at overcoming design-use dichotomies, the authors suggest two notions: Design In Use (DIU) and Design In Making (DIM). Four DIU-DIM configurations are also put forward before introducing Jean-Daniel Reynaud's Regulation Theory as a relevant framework to put them in broader sociotechnical perspective. Then, in order to test and refine the resulting theoretical framework, two case studies are presented: case A on an e-learning system in a French university, and case B on a loan management system in a Latvian bank. Lastly, the authors discuss the limitations, contributions and perspectives of this work.
    Keywords: Practice-based view; design in practice; joint regulation theory; Jean-Daniel Reynaud; critical realism; meta-model.
    JEL: M19
    Date: 2006–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1313&r=ino
  66. By: Guido De Blasio
    Abstract: By diminishing the cost of performing isolated economic activities in isolated areas, information technology might serve as a substitute for urban agglomeration. This paper assesses this hypothesis by using Italian household level data on internet navigation, e-commerce, and e-banking. Empirically, I find no support for the argument that the internet reduces the role of distance. My results suggest that: (1) Internet navigation is more frequent for urban consumers than their non-urban counterparts. (2) The use of e-commerce is basically not affected by the size of the city where the household lives. Remote consumers are discouraged by the fact that they cannot see the goods before buying them. Leisure activities and cultural items are the only goods and services for which e-commerce is used more intensively in isolated areas. (3) E-banking bears no relationship with city size. In choosing a bank, non-urban customers evaluate personal acquaintances as an important factor more intensively than urban clients. This also depends on the fact that banking account holders in remote areas are more frequently supplied with a loan by their bank.
    Date: 2006–08
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa06p440&r=ino
  67. By: Bieri, David
    Abstract: Regional scientists have developed numerous concepts and measures of economic diversity and diversification, primarily motivated by the desire to establish a relationship between diversity and economic performance. Rather than striving for a unified theory with a singular measure, this paper argues that economic developers should employ a multi-dimensional framework that combines the comparative advantages of a range of theoretical approaches. The application of locational, agglomerational and risk-reward measures to the non-manufacturing high-tech industry for the Blacksburg MSA in southwestern Virginia reveals specific policy implications and offers lessons for economic policy design.
    Keywords: Economic Development; Industry Concentration; Dispersion; Quantitative Measures
    JEL: O14
    Date: 2006–12–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:1079&r=ino
  68. By: Joan Rosselló (Universitat de les Illes Balears)
    Abstract: In this paper we study the implementation of policy incentives aimed at increasing the research output at European public universities by university managers and public administrations. Although public universities are subject to significant management rigidities, we provide some interesting policies aimed at increasing their research output. We pay special attention to the principal agent problem between professors and university managers due to the career options that professors face outside the university.
    Keywords: Efficiency, productivity, professors’ salaries, incentives to research, state and federal aid, resource allocation.
    JEL: I20 I21
    Date: 2006
    URL: http://d.repec.org/n?u=RePEc:ubi:deawps:24&r=ino

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