|
on Innovation |
| By: | Mario A. Maggioni (DISEIS and Catholic University of Milan); Mario Nosvelli (CERIS-CNR); T. Erika Uberti (DISEIS and Catholic University of Milan) |
| Abstract: | In the last fifteen years, income differences among European Member States have been strongly narrowing while the process has been matched with a widening of the inter-regional variance within single countries. Traditionally, regional economic disparities in Europe have been ascribed to peripherality and/or to a high level of dependence on declining sectors. Nowadays regional disparities can be no longer defined only in terms of statistical differences in the values of standard macroeconomic indicators, but also according to innovative capacities and knowledge endowment. This paper provides an original framework for the interpretation of the existing relationships between innovation process and research activity in Europe and the structural and geographical features shaping the European scientific and technological map. In order to do so, we focus on two knowledge-based relational phenomena: participation in the same research networks (funded by the EU Fifth Framework Programme) and EPO co-patent applications. Using two complementary econometric techniques we try to assess those factors that determine patenting activity, distinguishing structural features, geographical and relational spillovers. Through these variables we measure the intrinsic relational structure of knowledge flows which directly connects people, institutions and, indirectly, regions, across European countries in order to test whether hierarchical relationships based on a-spatial networks between geographically distant excellence centres prevail over diffusive patterns based on spatial contiguity. |
| Keywords: | Spatial Distribution, Networks, European Analysis |
| JEL: | O31 R12 C21 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2006.153&r=ino |
| By: | Albert van der Horst; Arjan Lejour; Bas Straathof |
| Abstract: | Innovation seldom has purely domestic causes and consequences, but how can a European innovation policy complement or substitute national policies? Taking the subsidiarity principle as a starting point, this report discusses the economic rationale of a European innovation policy. Explorative empirical analysis suggests that public R&D and public funding of private R&D are subject to economies of scale and external effects. This is an argument in favour of a European innovation policy but amongst other things, the heterogeneity in social economic objectives on public R&D spending between Member States pleas for national government involvement. In addition, there are scale economies in the protection of intellectual property and in the development of standards. We conclude that a European innovation policy could have, or already has, substantial benefits over purely national policy in these areas. With respect to innovation policies targeted at SMEs, we do not find economies of scale or external effects. It seems to be efficient that these policies are mainly conducted at the national level. |
| Keywords: | innovation policy; subsidiarity; European Union |
| JEL: | O38 H77 H87 F15 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:docmnt:132&r=ino |
| By: | Paolo Giorgio GARELLA; Emanuele BACCHIEGA |
| Abstract: | We study firms' incentives to transfer knowledge about production technology to a rival in a Cournot duopoly. In a setting where two technologies are available, a technology is characterized by its associated cost function and no single technology is strictly superior to the other. A firm has superior information if it knows both techniques and the other only one. Cost efficiency may be "reversed" after the voluntary disclosure, so that the rival's costs are improved at the equilibrium level of output. Adding R&D investments to the picture, we find that a firm can decide to invest just for the purpose of acquiring knowledge that will be transferred and not used. Furthermore, for the same point in the parameters space, the acquisition of full knowledge may occur or not as a function of the initial distribution of information |
| Keywords: | Oligopoly, Information disclosure, R&D Joint Ventures, R&D Consortia, Returns to scale |
| JEL: | L13 O30 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2007-01&r=ino |
| By: | Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Svensson, Roger (Research Institute of Industrial Economics) |
| Abstract: | According to Schumpeter, the creative process of economic development can be divided into three distinguishable stages of invention, innovation (commercialization) and imitation. We show why there is a rationale for the Schumpeterian entrepreneur to also include the inventor in the innovation process. In addition, we provide a framework where the theories of Knight’s risk defining entrepreneur and Schumpeter’s innovative entrepreneur can be bridged. Merging the two enhances the possibilities of successful commercialization since the inventor may further adapt the innovation to customer needs, transmit information and reduce uncertainty. This serves to expand the market opportunities for the entrepreneur. The empirical analysis is based on a survey covering Swedish patents granted to individuals and small firms, with a response rate of 80 %. The results show improved commercialization performance when the patent is licensed or sold to an entrepreneur, or if the inventor is employed in an entrepreneurial firm, as compared to commercialization in the inventor’s own firm. Another important result is that, irrespective of commercialization mode, an active involvement of the inventor is shown to have a positive impact on performance. |
| Keywords: | Entrepreneur; inventor; innovations; commercialization |
| JEL: | M13 O31 O32 |
| Date: | 2007–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0078&r=ino |
| By: | Dixit Mukund R.; Girja Sharan |
| Abstract: | Systems for harvesting dew for human consumption are new to India. This paper provides insights from the tracking of the innovation journey of dewrain harvest systems from incidental observation to commercialization. It traces the key phases in the innovation journey and documents the activities and outcomes in each phase. Based on the analysis it identifies a class of innovations called ‘leveraged innovations’. These innovations leverage on the early innovating experience of the innovator, the knowledge base of the stakeholders and the available infrastructure. Data for the paper was collected from the narrative of the innovator and the documents prepared by the innovator and his team. The paper has been divided into three sections. The phases in the innovation journey are presented in the first section. Key themes in leveraged innovation are identified based on the insights from phases, and their link with the literature on innovations management are discussed in the second section. The third section provides concluding remarks and suggests ways forward for mapping the innovation journeys of individual innovators and developing the themes further. The overall view is that the development of the dewrain harvest system was facilitated by the background of the innovator, the observation of spin offs, the larger externally linked definition of the problem, linkage with the local community that shared the need for solving similar problems, association with local laboratory and network of scientists, and independent learning to augment the received knowledge facilitated the leveraging process for a successful journey. |
| Date: | 2007–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:iim:iimawp:2007-01-04&r=ino |
| By: | Sean M. Dougherty; Robert Inklaar; Robert H. McGuckin; Bart van Ark |
| Abstract: | Purchasing power parities (PPPs) for R&D expenditure in 19 manufacturing industries are developed for France, Germany, Japan, the Netherlands and the United Kingdom relative to the United States for the years 1997 and 1987. These PPPs are based on R&D input prices for specific cost categories and differ substantially from current practice of comparing R&D expenditure using GDP PPPs and deflators. After taking into account differences in the relative price of R&D labor and materials, separate PPPs for other R&D cost categories are less essential, and a simpler version using GDP PPPs for these other categories should suffice. Our preferred PPPs are used to compare international R&D costs and intensity. The results suggest that the efforts devoted to R&D in each country are more similar across countries than is apparent using the nominal R&D intensities that are currently the norm. |
| JEL: | C43 L16 L60 O32 O47 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12829&r=ino |
| By: | Harold Creusen; Björn Vroomen; Henry van der Wiel; Fred Kuypers |
| Abstract: | The Dutch retail trade demonstrated a relatively meagre performance in terms of productivity (growth) during the 1990s; especially seen from an international perspective. This study analyses the productivity performance of the Dutch retail trade in more detail; and focuses on competition and innovation as two main drivers of productivity growth. More precisely; it takes the mutual relationship between competition; innovation and productivity explicitly into account. Between 1993 and 2002 changes in competition varied substantially within the retail trade. However, on average competition slightly declined. Furthermore, only a few firms in the Dutch retail trade innovate. Regression analysis reveals that both competition and innovation enhance productivity growth directly. Further, fiercer competition induces more innovation, and consequently also raises productivity indirectly via innovation. |
| Keywords: | competition; innovation; productivity; measurement; productivity policy |
| JEL: | D24 L1 L5 L81 O31 |
| Date: | 2006–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:docmnt:137&r=ino |
| By: | Tarmo Valkonen |
| Abstract: | TAX INCENTIVES OF R&D It is popular to promote private R&D investments with tax credits or tax allowances in the OECD countries. This report depicts the justifications and criteria presented in economic literature, which should be used when decisions about tax incentives are made. The main argument is that firms do not consider all the social welfare gains, when they decide about an R&D investment. Another linked justification is that the production based on the innovation may be too small, because the firm must finance the sunken costs generated both by the failed and the successful trials, and sell with a price that is higher than the marginal costs. On the other hand, there are also negative externalities involved in R&D investments. Moreover, introduction of a tax incentive necessitates that the welfare gain generated is sufficient to cover the losses due to the marginal costs of public funds, which appear due to the lost tax revenues. The report concludes that there are well-founded theoretical reasons for promoting private R&D investments with public funds, but the optimal scale and the best methods, such as choice between direct support and tax incentives, are questions to be solved by empirical studies. |
| Keywords: | research and development investments, tax incentives |
| JEL: | H25 O1 O4 |
| Date: | 2007–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1066&r=ino |
| By: | Ajay Agrawal; Devesh Kapur; John McHale |
| Abstract: | We examine how the spatial and social proximity of inventors affects knowledge flows, focusing especially on how the two forms of proximity interact. We develop a knowledge flow production function (KFPF) as a flexible tool for modeling access to knowledge and show that the optimal spatial concentration of socially proximate inventors in a city or nation depends on whether spatial and social proximity are complements or substitutes in facilitating knowledge flows. We employ patent citation data, using same-MSA and co-ethnicity as proxies for spatial and social proximity, respectively, to estimate the key KFPF parameters. Although co-location and co-ethnicity both predict knowledge flows, the marginal benefit of co-location is significantly less for co-ethnic inventors. These results imply that dispersion of socially proximate individuals is optimal from the perspectives of the city and the economy. In contrast, for socially proximate individuals themselves, spatial concentration is preferred - and the only stable equilibrium. |
| JEL: | O33 R12 Z13 |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12823&r=ino |
| By: | William R. Johnson |
| Abstract: | Technological changes over the past two decades have made it easier to distribute and to copy intellectual property. Creators and owners of intellectual property have responded to these changes with a variety of creative pricing strategies. The paper reviews some of these pricing innovations. Two broad categories of innovations are explored: those that facilitate price discrimination and those that exploit complementarities between di¤erent types of creative works. |
| Keywords: | pricing, intellectual property |
| JEL: | D4 O34 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:vir:virpap:369&r=ino |
| By: | Jim Engle-Warnick; Javier Escobal; Sonia Laszlo |
| Abstract: | The lack of adoption of new farming technologies despite known benefis is a well-documented phenomenon in development economics. In addition to a number of market constraints, risk aversion predominates the discussion of behavioral determinants of technology adoption. We hypothesize that ambiguity aversion may also be a determinant, since farmers may have less information about the distribution of yield outcomes from new technologies compared with traditional technologies. We test this hypothesis with a laboratory experiment in the field in which we measure risk and ambiguity preferences. We combine our experiment with a survey in which we collect information on farm decisions and identify market constraints. We find that ambiguity aversion does indeed predict actual technology choices on the farm. <P>Un phénomène bien documenté en économie du développement est le nombre peu élevé d’agriculteurs qui décident d’adopter de nouvelles technologies en agriculture, malgré leurs avantages connus. En plus des nombreuses contraintes imposées par le marché, l’aversion au risque prédomine la discussion sur les déterminants de l’adoption de nouvelles technologies. Nous émettons l’hypothèse que l’aversion à l’ambiguïté pourrait aussi être un déterminant puisqu’il est possible que les agriculteurs aient moins d’information sur la distribution du rendement des nouvelles technologies que sur celle des technologies traditionnelles. Nous testons la validité de cette hypothèse avec une expérience en laboratoire sur le terrain où nous mesurons les préférences vis-à-vis du risque et de l’ambiguïté. Nous combinons notre expérience à un sondage portant sur les décisions prises en matière d’agriculture et identifiant les contraintes du marché. Nous constatons qu’effectivement, l’aversion à l’ambiguïté dicte les choix technologiques réels relatifs à la ferme. |
| Keywords: | experimental economics, risk measurement instruments, risk preferences, rural development, technology choice, choix technologiques, développement rural, économie expérimentale, instruments de mesure du risque, préférences vis-à-vis du risque |
| JEL: | O33 O18 C91 |
| Date: | 2007–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2007s-01&r=ino |
| By: | Enrica De Cian (Fondazione Eni Enrico Mattei) |
| Abstract: | This paper analyzes two possible methodologies of modeling international technology spillovers in a climate-economy CGE model. Technological change, by affecting productivity, energy and carbon intensity, eventually influences the amount of CO2 emissions, the costs and the timing of the policies targeted at their reduction. Technological change is here defined so as to include also the diffusion and adoption phase. In an increasingly integrated world, new products and technologies developed in one region will eventually diffuse internationally. The two approaches described in this paper are based on two mechanisms used to model technological change in climate models: learning curves, total factor productivity and the autonomous energy efficient improvement parameter. This paper considers spillovers mediated by international trade in capital goods. In particular, it looks at how imports machinery and equipments from the OECD countries can affect the technology variables related to CO2 emissions: learning rates in the first approach, productivity, energy and carbon intensity in the second one. |
| Keywords: | Climate Policy, International Trade, Learning Curves, International Technology Spillovers, Biased Technical Change |
| JEL: | F18 Q54 Q55 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2006.141&r=ino |
| By: | Gregory F. Nemet (University of California) |
| Abstract: | The incorporation of experience curves has enhanced the treatment of technological change in models used to evaluate the cost of climate and energy policies. However, the set of activities that experience curves are assumed to capture is much broader than the set that can be characterized by learning-by-doing, the primary connection between experience curves and economic theory. How accurately do experience curves describe observed technological change? This study examines the case of photovoltaics (PV), a potentially important climate stabilization technology with robust technology dynamics. Empirical data are assembled to populate a simple engineering-based model identifying the most important factors affecting the cost of PV over the past three decades. The results indicate that learning from experience only weakly explains change in the most important cost-reducing factors— plant size, module efficiency, and the cost of silicon. They point to other explanatory variables to include in future models. Future work might also evaluate the potential for efficiency gains from policies that rely less on ‘riding down the learning curve’ and more on creating incentives for firms to make investments in the types of cost-reducing activities quantified in this study. |
| Keywords: | Learning-by-doing, Experience Curves, Learning Curves, Climate Policy |
| JEL: | O31 Q42 Q48 Q55 |
| Date: | 2006–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2006.143&r=ino |
| By: | Acs, Zoltan (George Mason University, School of Public Policy); Audrestch, David (Indiana University, School of Environmental and Public Affairs); Braunerhjelm, Pontus (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Carlsson, Bo (Case Western Reserve University, Weatherhead School of Management, Department of Economics) |
| Abstract: | Contemporary theories of entrepreneurship generally focus on the recognition of opportunities and the decision to exploit them. While the prevailing view in the entrepreneurship literature is that opportunities are exogenous, the most prevalent theory of economic growth suggests that opportunities are endogenous. This paper bridges the gap between the entrepreneurship and economic growth literatures by developing a knowledge spillover theory of entrepreneurship. Knowledge created endogenously results in knowledge spillovers that give rise to opportunities to be identified and exploited by entrepreneurs. |
| Keywords: | Opportunity; knowledge; entrepreneurship; knowledge filter |
| JEL: | J24 M13 O31 R10 |
| Date: | 2007–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0077&r=ino |
| By: | Nicholas Economides (Stern School of Business, New York University); |
| Abstract: | We discuss salient economic aspects of the Internet, including the possible abolition of net neutrality by local broadband access networks as well as potential incompatibilities and degradation of connectivity in the Internet backbone. |
| Keywords: | Internet, net neutrality, price discrimination, antitrust |
| Date: | 2007–01 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:0701&r=ino |