nep-ino New Economics Papers
on Innovation
Issue of 2007‒10‒27
ten papers chosen by
Koen Frenken
Utrecht University

  1. Barriers to Innovation faced by Manufacturing Firms in Portugal: How to overcome it? By Silva, Maria; Leitão, João; Raposo, Mário
  2. National innovation systems, capabilities and economic development By Jan Fagerberg; Martin Srholec
  4. Stuck in the Adoption Funnel: The Effect of Delays in the Adoption Process on Ultimate Adoption By Anja Lambrecht; Katja Seim; Catherine Tucker
  6. An Appreciative Model of Schumpeterian Evolution By Pol, Eduardo-Fernandez
  7. The Impact of Research Grant Funding on Scientific Productivity By Brian Jacob; Lars Lefgren
  8. Size, Innovation and Internationalization: A Survival Analysis of Italian Firms By Giorgia Giovannetti; Giorgio Ricchiuti; Margherita Velucchi
  9. Patents and Antitrust: Video Games and Violent Crime By Michael R. Ward; ;
  10. e-Commerce as a sign: The diffusion of electronic commerce in the UK ceramic industry By Thea Hinde

  1. By: Silva, Maria; Leitão, João; Raposo, Mário
    Abstract: This paper aims to identify the barriers to innovation that influence the innovation capability of Portuguese industrial firms. The literature review about innovation makes use of two references approaches: (i) the systemic; and (ii) the networks and inter-organizational relationships. The database is obtained through the Community Innovation Survey II (CIS II) conducted by EUROSTAT. Furthermore, from the results several public policies are proposed in order to overcome the restraining factors of the entrepreneurial innovative capability.
    Keywords: Innovation; Entrepreneurial Innovative Capability.
    JEL: O38 O31
    Date: 2007–10–23
  2. By: Jan Fagerberg (Centre for Technology, Innovation and Culture, University of Oslo); Martin Srholec (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: This paper focuses on the role of capabilities for economic development. In recent years data on different aspects of development have improved a lot. This provides new opportunities for in-depth research on capabilities and their measurement. The analysis, based on a factor analysis on 25 indicators and 115 countries from the 1992-2004 period, identifies four different types of “capabilities”; the development of the “innovation system”, the quality of “governance”, the character of the “political system” and the degree of “openness” of the economy. Innovation systems and governance are shown to be of particular importance for economic development.
    Keywords: national innovation system, capabilities, governance, development.
    JEL: E11 F43 O30
    Date: 2007–10
  3. By: Shahzad Ansari (Rotterdam School of Management(RSM),Erasmus University.); Raghu Garud (Smeal College of Business, The Pennsylvania State University);
    Abstract: Many technology studies have conceptualized transitions between technological generations as a series of S-curve performance improvements over time. Surprisingly, the interregnum between successive technological generations has received little attention. To understand what happens in the interregnum, we build upon a framework of technological change as happening within an ecosystem that is characterized by both momentum and inertia. Applying this framework to study the mobile communications ecosystem, we found that the transition between 2G to 3G wireless was far from sequential. Different parts of the ecosystem evolved at different rates exerting both inertia and momentum with “collateral technologies” playing an important role in shaping the transition path that unfolded. Based on this study we suggest that, rather than a distinct or unitary shift from an old to a new technology, transitions proceed in a zigzag manner resulting in the emergence of hybrid technologies. These processes hold implications for both theory and practice that we explore in this paper.
    Keywords: technological transitions, ecosystem, collateral technologies, momentum, inertia, mobile communications, S-curve.
    JEL: D9 D92 O3 O32 O33
    Date: 2007–09
  4. By: Anja Lambrecht (London Business School); Katja Seim (Wharton School, University of Pennsylvania); Catherine Tucker (MIT)
    Abstract: Online applications and services automate communications and transactions between firms and consumers, promising large efficiency gains. However, consumers have been slow to use these online technologies intensively, despite widespread adoption of the internet. Customers frequently undergo a staggered adoption process that may involve sign-up, experimentation, trial, and substantial usage until they fully embrace internet services. We ask whether delays in moving through the initial stages of this adoption process contribute to consumers ultimately not using the service intensively. Such behavior would be consistent with laboratory findings on consumer memory. We explore this question using data from a German retail bank where only 24% of the customers who sign up for the bank's online banking service use it substantially. We use exogenous variation in delays in the adoption process, caused by vacations and public holidays in different German states, to identify this effect. We find that delays in the early stages of adoption significantly reduce a customer's probability of moving to substantial usage: A 10-day delay of a customer's first online login reduces the likelihood that she will ever use the technology substantially, by 33%. This effect is more severe for demographic groups with less online experience.
    Keywords: patents, technology adoption, adoption process, online services, banking
    JEL: M3 M30 M31 L1 L16 L86
    Date: 2006–10
  5. By: Jim Engle-Warnick; Javier Escobal; Sonia Laszlo
    Abstract: The lack of adoption of new farming technologies despite known benefits 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.
    JEL: O33 O18 C91
    Date: 2007–05
  6. By: Pol, Eduardo-Fernandez (University of Wollongong)
    Abstract: Schumpeter persistently sought to reconcile innovation with general equilibrium to explain economic evolution. In essence, he was interested in innovatory discontinuities that upset equilibrium and generate a transitional dynamics converging to a different state of technology. There are two central approaches to the analysis of economic evolution which revolve around the Schumpeterian vision: the evolutionary approach as originated in the landmark book by Nelson and Winter An Evolutionary Theory of Economic Change and the neoclassical approach emerging from Romer’s seminal paper “Endogenous Technological Change” Neither of these approaches is able to explain economic evolution in an economy where both general equilibrium and innovatory discontinuities can happen. In this paper I formalize the notion of innovatory discontinuity using the concept of ‘ideas production function’ and present an appreciative model of economic evolution involving equilibrium, innovation and innovatory discontinuities. This (hybrid) model sheds some light on the answer to the question: is economic evolution continuous or discontinuous?
    Keywords: General equilibrium, economic evolution, neoclassical approach, evolutionary economics, mega-invention, innovatory discontinuities, Schumpeterian view
    Date: 2007
  7. By: Brian Jacob; Lars Lefgren
    Abstract: In this paper, we estimate the impact of receiving an NIH grant on subsequent publications and citations. Our sample consists of all applications (unsuccessful as well as successful) to the NIH from 1980 to 2000 for postdoctoral training grants (F32s) and standard research grants (R01s). Both OLS and regression discontinuity estimates show that receipt of either an NIH postdoctoral fellowship or research grant leads to about one additional publication over the next five years. The estimates represent about 20 and 7 percent increases in research productivity for F32 and R01 recipients respectively. The limited research impact of NIH grants may be explained in part by a model in which the market for research funding is competitive, so that the loss of an NIH grant simply causes researchers to shift to another source of funding.
    JEL: H0 H51 I1 I12 I18 O3 O38
    Date: 2007–10
  8. By: Giorgia Giovannetti (Università degli Studi di Firenze, Dipartimento di Scienze Economiche); Giorgio Ricchiuti (Università degli Studi di Firenze, Dipartimento di Scienze Economiche); Margherita Velucchi (Università degli Studi di Firenze, Dipartimento di Statistica “G. Parenti”)
    Abstract: The birth of new enterprises and their survival in the market are often seen as a crucial variable of economic growth and competitiveness in a modern economy. This paper focuses on business demography of Italian firms, using a merged dataset between Capitalia-Reprint and AIDA, to identify the relationships among firms’ characteristics their demographic dynamics and survival. We show that size and technological level increases survival probability. Internationalized firms show higher failure risk: on average the competition is stronger on international markets, forcing firms to be more efficient. Finally, a long lasting successful internationalized firm is a high-tech, large and innovating firm.
    Keywords: Business Demography, Survival, Competitiveness, Internationalization
    JEL: C41 L11 L25 F21
    Date: 2007
  9. By: Michael R. Ward (University of Texas, Arlington); ;
    Abstract: Psychology studies of the effects of playing video games have found emotional responses and physical reactions associated with reinforced violent and anti-social attitudes. It is not clear, however, whether these markers are associated with increases in one's preferences for anti-social behaviors or whether virtual behaviors act to partially sate one's desire for actual antisocial behaviors. Violent or criminal behaviors in the virtual world and in the physical world could plausibly be either complements or substitutes. A finding of one versus the other would have diametrically opposing policy implications. I study the incidence of criminal activity as related to a proxy for increased gaming, the number of game stores, from a panel of US counties from 1994 to 2004. With fixed county and year effects, I can examine if changes relative increases in gaming in an area are associated with relative increases or decreases in criminal activity. For six of eight categories of crime, more game stores are associated with significant declines in crime rates. Proxies for other leisure activities, sports and movie viewing, do not have a similar effect. For confirmation, I also find that mortality rates, especially mortality rates stemming from injuries, also are negatively related to the number of game stores.
    Keywords: Video Games, Violence, Crime
    JEL: L86 D18 I18
    Date: 2007–09
  10. By: Thea Hinde (SCEME, University of Stirling, UK)
    Abstract: ‘E-commerce’ is conventionally understood to refer to a discrete set of Internet-related business practices, with discussions focused on their potential to improve the efficiency and reach of business. However, there is evidence that in practice, the term ‘e-commerce’ is applied to a wide range of activities often bearing little or no relation to the Internet. Reporting from the ceramics industry, this paper argues that despite involving significant cost and sometimes adversely affecting the business, ‘e-commerce’ activities are often pursued unquestioningly and largely enthusiastically. Through a series of case studies, it reviews the range of these ‘e-commerce’ activities, and identifies the implicit strategies to use e-commerce as a way to alter the way that the company is experienced or perceived. Thus conceived, we cannot continue to consider ‘doing e-commerce’ as a purely technical endeavour: it is also intimately connected with managing impressions and expectations. Drawing on the work of Barthes’ ‘Mythologies’ (1957), the paper explains how e-commerce can have associations that are not directly linked to its conventional or literal meaning.
    Keywords: electronic-commerce, ceramics-industry, Roland-Barthes, myth
    JEL: L81 L61 Z1 B41
    Date: 2007–10

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