nep-ino New Economics Papers
on Innovation
Issue of 2008‒01‒26
ten papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. IPRs, technological and industrial development and growth: the case of the pharmaceutical industry. By Francesco Laforgia; Fabio Montobbio; Luigi Orsenigo
  2. Product Innovation and Survival in a High-Tech Industry By Roberto Fontana; Lionel Nesta
  3. The cost of switching Internet providers in the broadband industry, or why ADSL has diffused faster than other innovative technologies: Evidence from the French case By Jackie Krafft; Evens Salies
  4. Does Technological Diffusion Explain Australia's Productivity Performance? By Thierry Tressel
  5. Patent Validation at the Country Level - The Role of Fees and Translation costs By Harhoff, Dietmar; Hoisl, Karin; Reichl, Bettina; van Pottelsberghe de la Potterie, Bruno
  6. Capitalizing R&D Expenditures By Diewert, Erwin; Huang, Ning
  7. Ambitious Nascent Entrepreneurs and National Innovativeness By Jolanda Hessels; Kashifa Suddle
  8. Competition and innovative intentions: A study of Dutch SMEs By Jeroen de Jong
  9. Entrepreneurship and innovation By Ro Braaksma; Joris Meijaard
  10. Knowledge management, innovation orientation and innovation performance By Lorraine Uhlaner; Haibo Zhou; Sita Tan

  1. By: Francesco Laforgia (Brescia University and CESPRI - Bocconi University, Milan, Italy.); Fabio Montobbio (University of Insubria and CESPRI, Bocconi University, Milan, Italy.); Luigi Orsenigo (Brescia University, CESPRI - Bocconi University, Milan, Italy, and The Open University, UK.)
    Abstract: In this paper we provide an introduction to some of the most salient aspects of the debate regarding the relationships between stronger intellectual property rights (IPRs) regimes and innovation in the pharmaceutical industry. We emphasize that, despite increased knowledge on the subject, little is known on the relationships between IPRs, innovation, and growth, especially as developing countries are concerned. We report on preliminary research on the patenting activities in Brazil using domestic patent data, rather than – as it is customary – international patents. Firstly, we show that the adoption of the TRIPs had substantial positive impact on the number of patent applications in Brazil, but that the great majority of these new patent applications have come from nonresidents, most likely as extensions of foreign patents. However it is too early to assess if this substantial increase in (foreign) patents is a permanent characteristic of patenting activity in Brazil. Secondly, the introduction of TRIPs has not changed the technological composition of patenting activity in Brazil, with one major exception, the growth of the share of the chemical and pharmaceutical patents, few years after the upsurge of patenting in other fields.
    Keywords: Intellectual Property Rights, Patents, Pharmaceuticals, Brazil, Developing Countries.
    JEL: O31 O34
    Date: 2007–10
    URL: http://d.repec.org/n?u=RePEc:cri:cespri:wp206&r=ino
  2. By: Roberto Fontana; Lionel Nesta
    Date: 2007
    URL: http://d.repec.org/n?u=RePEc:fce:doctra:0730&r=ino
  3. By: Jackie Krafft (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR6227 - Université de Nice Sophia-Antipolis); Evens Salies (OFCE-DRIC - OFCE)
    Abstract: The innovative broadband Internet industry is characterised by inertia phenomena in terms of technology choice, as well as selection of Internet service providers (ISPs). Within the set of firms providing Internet, very often in Europe the incumbent operator has the lion’s share of end-customers and supplies the dominant technology. Focusing on the French case, this paper shows that although inertia on the supply side (partly due to the regulation process in itself), helps to explain the technology mix reached to date, a more complete picture of the inertia can be obtained when we consider the existence of costs faced by customers when switching between ISPs. We calculate these so-called “switching costs”. The closing section of this paper derives several implications in terms of policy.
    Date: 2008–01–10
    URL: http://d.repec.org/n?u=RePEc:hal:papers:hal-00203512_v1&r=ino
  4. By: Thierry Tressel
    Abstract: This paper analyzes the impact of product and labor market policies on technological diffusion and multi-factor productivity (MFP) in a panel of industries in 15 OECD countries over the period 1980 to 2003, with a special focus on Australia. We use a simple convergence empirical framework to show that, on average, convergence of MFP within industries across countries has slowed-down in the 1990s. In contrast, Australian industries have significantly caught-up with industry productivity best practices over the past 16 years, and have benefited from the diffusion of Information and Communication Technologies (ICTs). We show that reforms of both the labor and product markets since the early 1990s can explain Australia's productivity performance and adoption of ICTs.
    Keywords: Productivity , Australia , Labor markets ,
    Date: 2008–01–10
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:08/4&r=ino
  5. By: Harhoff, Dietmar; Hoisl, Karin; Reichl, Bettina; van Pottelsberghe de la Potterie, Bruno
    Abstract: One feature of the European patent system that is heavily criticized nowadays is related to its complex fragmentation and the induced cost burden for applicants. Once a patent is granted by the EPO, the assignee must validate (and often translate) it and pay the renewal fees to keep it in force in each country in which the applicant seeks protection. The objective of this paper is to assess to what extent validation and renewal fees as well as translation costs affect the validation behavior of applicants. We rely on a gravity model that aims at explaining patent flows between inventor and target countries within the European patent system. The results show that the size of countries, their wealth and the distance between their capital cities are significant determinants of patent flows. Validation fees and renewal fees further affect the validation behavior of applicants. Translation costs seem to have an impact as well. The important role played by fees suggests that the implementation of cost-reducing policy interventions like the London Protocol would induce a significant increase in the number of patents validated in each European country.
    Keywords: patent fees; validation fees; renewal fees; gravity model
    JEL: O30 O31 O38 O57
    Date: 2007–11–01
    URL: http://d.repec.org/n?u=RePEc:lmu:msmdpa:2073&r=ino
  6. By: Diewert, Erwin; Huang, Ning
    Abstract: The next international version of the System of National Accounts will recommend that R&D (Research and Development) expenditures be capitalized instead of being immediately expensed as in the present System of National Accounts 1993. An R&D project creates a new technology, which in principle does not depreciate like a reproducible asset. A new technology is however subject to obsolescence, which acts in a manner that is somewhat similar to depreciation. The paper looks at the net benefits of an R&D project in the context of a very simple intertemporal general equilibrium model and suggests that R&D expenditures be amortized using the matching principle that has been developed in the accounting literature to match the fixed costs of a project to a stream of future benefits. Of particular interest is the evaluation of the net benefits of a publicly funded project where the results are made freely available to the public.
    JEL: C43 C61 C67 C68 C82 D24 D42 D45 D57 D58
    Date: 2008–01–18
    URL: http://d.repec.org/n?u=RePEc:ubc:bricol:diewert-08-01-18-09-24-04&r=ino
  7. By: Jolanda Hessels; Kashifa Suddle
    Abstract: Abstract This study investigates whether ambitions amongst nascent entrepreneurs regarding innovativeness matter for the national level of innovativeness. We link ambitious nascent entrepreneurship to the national level of innovativeness for 36 countries, using data from the Global Entrepreneurship Monitor. We find a significant positive relation between the level of nascent entrepreneurs who intend to offer a product or service that is new to all or to some of their customers and the national technology level. This may suggest that ambitions to offer new products or services tend to contribute to higher levels of competition and knowledge spillovers, and consequently to the emergence of highly innovative economies. Our results also suggest that this relationship is less strong in poor countries.
    Date: 2007–01–03
    URL: http://d.repec.org/n?u=RePEc:eim:papers:h200702&r=ino
  8. By: Jeroen de Jong
    Abstract: This paper explores the complex relationship between competition and innovation. Traditional measures of competition using industry statistics are often challenged andfound wanting. This paper distinguishes between three types of competitive forces: internal rivalry among incumbent firms in an industry, bargaining power of suppliers,and bargaining power of buyers. Using survey data from 2,281 Dutch firms, we apply new perception-based measures for these competitive forces to explore how competition relates to firms innovative intentions. We also investigate the influence of innovation strategy as a contingency variable. Results show that specific innovative intentions, i.e. to invest in product and process innovation, are related to different competitive forces. Process innovation is correlated with the bargaining power of suppliers, while intentions to invest in product innovation are associated with buyer power. Finally, intended product innovation is related to internal rivalry, but only when firms have no innovation strategy.
    Date: 2007–05–30
    URL: http://d.repec.org/n?u=RePEc:eim:papers:h200707&r=ino
  9. By: Ro Braaksma; Joris Meijaard
    Abstract: This report provides an overview of recent facts and figures on start-ups in the Netherlands, techno start-ups in particular and the overall link between entrepreneurship and innovation.
    Date: 2007–12–20
    URL: http://d.repec.org/n?u=RePEc:eim:papers:h200717&r=ino
  10. By: Lorraine Uhlaner; Haibo Zhou; Sita Tan
    Abstract: Western economies are increasingly viewed as knowledge-driven (Audretch and Thurik, 2001, 2004). Knowledge plays a crucial role in determining firm innovation capability and in enhancing working life quality of knowledge workers (Corso, Martini, Pelligrini, and Paolucci, 2001). Previous studies show that knowledge is managed in a different manner in SMEs. It is identified that knowledge is created, shared, transferred and applied via people based mechanisms in SMEs. Although research and policy interest in knowledge management is beginning to grow for SMEs (Sparrow, 2001; Wong, & Radcliffe, 2000), still relatively limited attention has been paid to understand the specifics of knowledge management issues for SMEs and to KM’s contribution to innovation performance in particular. Furthermore, most of studies are conducted by using methods on either qualitative case studies or very small samples. The aim of this study is to provide a quantitative insight of the relationship between KM and innovation performance of SMEs based on a large sample of Dutch SMEs, as well as the role of innovation orientation in this relationship. Our findings indicate that knowledge management- external acquisition and internal sharing- contribute positively to exploratory innovation performance of a firm. A full mediated effect of innovation orientation is identified in the relationship between external acquisition and exploratory innovation performance. We discuss how KM contributes to innovation performance, using the perspective of absorptive capacity. Based on a literature review on absorptive capacity, an implicit relationship between knowledge management practices and building a firm’s absorptive capacity is identified.
    Date: 2007–12–21
    URL: http://d.repec.org/n?u=RePEc:eim:papers:h200718&r=ino

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