nep-ino New Economics Papers
on Innovation
Issue of 2007‒05‒19
thirteen papers chosen by
Koen Frenken
Utrecht University

  1. Hospital Financing and the Development and Adoption of New Technologies By Marisa Miraldo
  2. Employment, innovation, and productivity: Evidence from italian microdata By Bronwyn H. Hall; Francesca Lotti; Jacques Mairesse
  3. Innovation, Dynamic Regions and Regional Dynamics By Karlsson, Charlie; Andersson, Åke E; Cheshire, Paul; Stough, Roger R
  4. Pitfalls and Opportunities in Knowledge Sharing By Björn Johnson; Jens Müller; Jeffrey Orozco
  5. Workplace Organization and Innovation By Zoghi, Cindy; Mohr, Robert D.; Meyer, Peter B.
  6. How Much Does the UK Invest in Intangible Assets? By Haskel, Jonathan; Marrano, Mauro Giorgio
  7. Innovation studies-an emerging discipline (or what)? A study of the global network of innovation scholars By Jan Fagerberg; Bart Verspagen
  8. Innovation and Export of Vietnam’s SME Sector By Nguyen, Ngoc Anh; Pham, Quang Ngoc; Nguyen, Dinh Chuc; Nguyen, Duc Nhat
  9. Americans Do I.T. Better: US Multinationals and the Productivity Miracle By Bloom, Nicholas; Sadun, Raffaella; Van Reenen, John
  10. The Impact of Vintage Capital and R&D on Japanese Firmsf Productivity (In Japanese) By Joji Tokui; Tomohiko Inui; Katsuaki Ochiai
  11. Media industry facing biggest upheaval since Gutenberg. Media consumers morphing into media makers By Heng, Stefan
  12. E-commerce settles for established payment systems: Limited market potential for innovative payment systems By Heng, Stefan
  13. Inside the Black Box of Regional Development - human capital, the creative class and tolerance By Florida, Richard; Mellander, Charlotta; Stolarick, Kevin

  1. By: Marisa Miraldo (Centre for Health Economics, University of York)
    Abstract: We study the influence of different reimbursement systems, namely Prospective Payment System, Cost Based Reimbursement System and Mixed Reimbursement System on the development and adoption of different technologies with an endogenous supply of these technologies. We focus our analysis on technology development and adoption under two models: private R&D and R&D within the hospital. One of the major findings is that the optimal reimbursement system is a pure Prospective Payment System or a Mixed Reimbursement System depending on the market structure.
    Keywords: Prospective Payment System; Cost Based Reimbursement; R&D
    JEL: I11 O33
    Date: 2007–04
  2. By: Bronwyn H. Hall (University of California, Berkeley); Francesca Lotti (Bank of Italy, Research Department); Jacques Mairesse (INSEE-CREST)
    Abstract: Italian manufacturing firms have been losing ground with respect to many of their European competitors. This paper presents some empirical evidence on the effects of innovation on employment growth and therefore on firms’ productivity with the goal of understanding the roots of such poor performance. We use firm level data from the last three surveys on Italian manufacturing firms conducted by Mediocredito-Capitalia, which cover the period 1995-2003. Using a modified version of the model proposed by Harrison, Jaumandreu, Mairesse and Peters (2005), which separates employment growth rates into those associated with old and new products, we provide robust evidence that there is no employment displacement effect stemming from process innovation. The sources of employment growth during the period are split equally between the net contribution of product innovation and the net contribution from sales growth of old products. However, the contribution of product innovation is somewhat lower than that for the four comparison European countries considered by Harrison et al.
    Keywords: Innovation, employment, productivity, Italy.
    JEL: L60 O31 O33
    Date: 2007–04
  3. By: Karlsson, Charlie (Jönköping International Business School (JIBS) and CESIS); Andersson, Åke E (Jönköping International Business School (JIBS) and CESIS); Cheshire, Paul (London School of Economics (LSE)); Stough, Roger R (George Mason University (GMU))
    Abstract: This paper analyses the aspects of spatial economics that deals with innovation, regional specialization and dynamic systems of functional regions and in particular the contributions made by the economist Börje Johansson. The innovation aspect consists of innovation networks, knowledge sources and knowledge sinks, cost and innovation of product characteristics and innovation at the industry and sector level. In the regional specialization part the infrastructure, regional economic milieus, the specialization of regions and specific the specialization in small and large regions, spatial transaction costs, and endogenous specialization are subjects that are being treated. Regional dynamics consists of location dynamics in a system of functional urban regions where different theories are being discussed as the spatial product life cycle theory and filtering-down theory. The last part does also take up lead-lag models.
    Keywords: innovation; regional; specialization; dynamic systems; functional regions
    JEL: O18 O31 R10
    Date: 2007–04–18
  4. By: Björn Johnson; Jens Müller; Jeffrey Orozco
    Abstract: A number of attempts have been made in the North to assist in the formation of independent research capacities in the South by establishing knowledge sharing through North-South research collaboration. One such attempt was initiated by Danida through its programme for Enhancement of Research Capacity (ENRECA). Aalborg University was approached by the National University of Costa Rica to make a joint research venture within the field of sustainable development. The project got a Central American (CA) regional perspective by including participants from Nicaragua and El Salvador. The project was titled Sustainable Development Strategies for Central America (SUDESCA) and aimed at support of relevant CA research activities, including the formation of adequate organizational setups that would eventually sustain forthwith. The project focused on two theoretical themes, i.e. the National Systems of Innovation and the Social Construction of Technology approaches. In this paper the CA universities are viewed as important sub-systems of the respective national systems of innovation. Thus, the following is an analysis of the institutional sustainability of the research capacity of universities perceived as parts of the national systems of innovation. To what extent did the knowledge transfer and exchange as well as the organizational capacity building efforts succeed? What were the main pitfalls and opportunities experienced? What did the Aalborg team learn about its own research capacity set-up? Our overall conclusion is that it is a mistake to assume that research capacity may be more or less directly transferred from the North to the South. Research capacity existing in the North has to be carefully adapted to the specific conditions where it may be expected to be useful.
    Keywords: Innovations systems; knowledge adaption; Central America
    JEL: O19 O32 N86
    Date: 2007
  5. By: Zoghi, Cindy (U.S. Bureau of Labor Statistics); Mohr, Robert D. (University of New Hampshire); Meyer, Peter B. (U.S. Bureau of Labor Statistics)
    Abstract: This study uses data on Canadian establishments to test whether particular organizational structures are correlated with the likelihood of adopting process and product innovations, controlling for the endogeneity of the predictors. We find that establishments with decentralized decision-making, information-sharing programs, or incentive pay plans are significantly more likely to innovate than other establishments. Larger establishments and those with a high vacancy rate are also more likely to innovate. These findings are consistent with a model in which workers hold information about production inefficiencies or consumer demands that can lead to productive innovations and that workplace organization attributes facilitate the communication and implementation of those ideas.
    Keywords: Innovation, Decision-Making, Information-Sharing
    JEL: D23 D81 O32
  6. By: Haskel, Jonathan; Marrano, Mauro Giorgio
    Abstract: We attempt to replicate for the UK the Corrado, Hulten and Sichel (2005, 2006) work on spending on intangible assets in the US. Their work suggests private sector expenditure (investment) on intangibles is about 13% (11%) of US GDP 1998-2000, with intangible investment about equal to tangible capital investment. Our work, using a similar method, suggests the UK private sector spent, in 2004, about £127bn on intangibles, which is about 11% of UK GDP. The implied investment figure is around £116bn (10% of GDP) which is about equal to UK investment in tangible assets. Of the £127bn expenditure, (in round numbers) about 15% is spent on software, about 10% on scientific R&D, almost 20% on non-scientific R&D (design, product development etc.), about 14% on branding, about 20% on training and the rest on organisational capital.
    Keywords: intangible assets; investment; organisational capital; R&D; training
    JEL: E1 E22 O47
    Date: 2007–05
  7. By: Jan Fagerberg (Centre for Technology, Innovation and Culture, University of Oslo); Bart Verspagen (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: Although innovation is not a new topic for scholarly research, the academic literature on innovation was, for a long time, not very voluminous. However, more recently innovation has become a major focus among scholars of different backgrounds, and this change is also reflected in an increasing number of academic publications in this area. In parallel with this we have seen the emergence of a number of new journals and professional associations devoted to the subject. The research reported in this paper is motivated by these trends. We wish to find an answer to the question to what extent it now exists a unified community of innovation scholars that identify themselves with innovation studies as a field rather than particular sub-fields within other, more traditional disciplines. Moreover, we want to explore the factors (sources of inspiration, academic leadership, professional societies, publishing outlets etc.) that bind scholars together or - alternatively - continue to keep them divided. The research reported in this paper is based on a web-survey carried out in during 2004 and 2005. The results suggest that a global innovation studies community exists as a collection of a large number of relatively small groups (characterized dense internal relationships) defined along geographical and disciplinary lines. Although the field has spread over many countries and disciplines, it is particularly developed in Europe and among scholars with a background in economics. These smaller groups, however, are embedded in larger transnational groups or clusters that are kept together by what is commonly referred to as "weak ties". Leading scholars, professional associations and journals all play an important role in keeping these larger groups together (as well as distinguishing them from each other).
    Keywords: Innovation, Networks
    JEL: O10
    Date: 2006–09
  8. By: Nguyen, Ngoc Anh; Pham, Quang Ngoc; Nguyen, Dinh Chuc; Nguyen, Duc Nhat
    Abstract: Innovation has long been considered an important factor for creating and maintaining the competitiveness of nations and firms. The relationship between innovation and exporting has been investigated for many countries. However, there is a paucity of research in Vietnam with respect to this issue. In this paper we examine whether innovation performed by Vietnam’s small and medium enterprises (SMEs) enhances their exporting likelihood. Using the recently released Vietnam Small and Medium Enterprise Survey 2005, we find that innovation as measured directly by ‘new products’, ‘new production process’ and ‘improvement of existing products’ are important determinants of exports by Vietnamese SMEs.
    Keywords: Vietnam; Export; Innovation; Small and Medium Enterprise
    JEL: F10 O3
    Date: 2007–05
  9. By: Bloom, Nicholas; Sadun, Raffaella; Van Reenen, John
    Abstract: The US has experienced a sustained increase in productivity growth since the mid-1990s, particularly in sectors that intensively use information technologies (IT). This has not occurred in Europe. If the US “productivity miracle” is due to a natural advantage of being located in the US then we would not expect to see any evidence of it for US establishments located abroad. This paper shows in fact that US multinationals operating in the UK do have higher productivity than non-US multinationals in the UK, and this is primarily due to the higher productivity of their IT. Furthermore, establishments that are taken over by US multinationals increase the productivity of their IT, whereas observationally identical establishments taken over by non-US multinationals do not. One explanation for these patterns is that US firms are organized in a way that allows them to use new technologies more efficiently. A model of endogenously chosen organizational form and IT is developed to explain these new micro and macro findings.
    Keywords: information technology; multinationals; Productivity
    JEL: E22 O3 O47 O52
    Date: 2007–05
  10. By: Joji Tokui; Tomohiko Inui; Katsuaki Ochiai
    Date: 2007–04
  11. By: Heng, Stefan
    Abstract: The advance of innovative information and communication technologies has triggered a fundamental upheaval in the media industry. The technology is reforming the conventional media model. The media mix will become more varied; interactive and personalised offers are taking root and finding their ideal milieu on the web. Newspapers, radio stations and TV broadcasters will have to reposition themselves if they want to remain attractive in the media industry with the arrival of the Web 2.0. This will include seeking new distribution channels and considering e.g. pay-per-view programming and innovative forms of advertising.
    Keywords: Information and communications technology; ICT; TV; Radio; Newspaper; media portal; Internet; Web 2.0; broadband; convergence; triple play
    JEL: O33 O34 O14 L82 L86 K23 L88 H41
    Date: 2006–10–16
  12. By: Heng, Stefan
    Abstract: Established payment systems play a dominant role also in B2C e-commerce. Innovative payment systems can only be a success here if they pay attention to the particular features of e-commerce, convey the worth of their value-adding unique selling proposition and enjoy the support of established e-shops or financial service providers. However, apart from rare cases the conventional payment systems leave little room for the innovative systems. This holds all the more since the conventional payment systems are responding to the new demands of B2C e-commerce.
    Keywords: Information- and communication technology; ICT; E-Business; E-Commerce; B2C-E-Commerce; Internet; e-payments
    JEL: O33 O14 E42 G29 E51
    Date: 2007–05–14
  13. By: Florida, Richard (George Mason University, US); Mellander, Charlotta (Jönköping International Business School (JIBS) and CESIS); Stolarick, Kevin (Carnegie Mellon University , US)
    Abstract: While there is a general consensus on the importance of human capital to regional development, debate has emerged around two key issues. The first involves the efficacy of educational versus occupational measures (i.e. the creative class) of human capital, while the second revolves around the factors that effect its distribution. We use structural equation models and path analysis to examine the effects of these two alternative measures of human capital on regional income and wages, and also to isolate the effects of tolerance, consumer service amenities, and the university on its distribution. We find that human capital and the creative class effect regional development through different channels. The creative class outperforms conventional educational attainment measures in accounting for regional labor productivity measured as wages, while conventional human capital does better in accounting for regional income. We find that tolerance is significantly associated with both human capital and the creative class as well as with wages and income.
    Keywords: Human Capital; Creative Class; Tolerance; Wages; Income; Regional Development
    JEL: J24 O30 R10 R20
    Date: 2007–04–18

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