nep-ino New Economics Papers
on Innovation
Issue of 2008‒03‒08
seven papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Monopoly and the Incentive to Innovate When Adoption Involves Switchover Disruptions By Thomas J Holmes; David K Levine; James A Schmitz Jr
  2. The Voyage of the Beagle in Innovation Systems Land.Explorations on Sectors, Innovation, Heterogeneity and Selection By Srholec, Martin; Verspagen, Bart
  3. Crafting Firm Competencies to Improve Innovative Performance. By Lokshin, Boris; Gils, Anita van; Bauer, Eva
  4. Public–private partnerships in international agricultural research: By Spielman, David J.; Hartwich, Frank; von Grebmer, Klaus
  5. The Calm Before the Storm? - Anticipating the Arrival of General Purpose Technologies By Daniel Schiess; Roger Wehrli
  6. Durable Goods, Innovation and Network Externalities By Cerquera Dussán, Daniel
  7. Financial Constraints: Routine Versus Cutting Edge R&D Investment By Binz, Hanna L.; Czarnitzki, Dirk

  1. By: Thomas J Holmes; David K Levine; James A Schmitz Jr
    Date: 2008–02–29
  2. By: Srholec, Martin (Centre for Technology, Innovation and Culture (TIK) and Centre for Advanced Study (CAS) at the Norwegian Academy of Science and Letters); Verspagen, Bart (Centre for Technology, Innovation and Culture (TIK) and Eindhoven Centre for Innovation Studies (ECIS))
    Abstract: The aim of the paper is to assess heterogeneity of the innovation process. Using exploratory factor analysis on micro data from the third Community Innovation Survey in 13 countries, we identify four factors that that can be interpreted as research, user, external and production ingredients of innovation. All too often it is assumed that the differences between the rates at which these factors are found in firms' innovation strategies can be accounted for by differences across sectors and/or countries. To put this proposition under scrutiny, we partition variability of the innovation process into components identified by the different levels. The analysis shows that sectors and countries matter to a certain extent, but far most of the variance is given by heterogeneity among firms within either sectors or countries. On the other hand, a grouping of firms produced by cluster analysis ac-counts for a much higher share of the variance, which implies that the most relevant contextual fac-tors cut across the established boundaries between sectors and countries. We discuss the implica-tions of these findings for the literature on national and sectoral systems of innovation, and for the way in which evolutionary economics has analyzed the role of selection.
    Keywords: Technological Change, Innovation, Heterogenity, Variance Components Analysis, Factor Analysis, Systems of Innovation
    JEL: O31 O38 C40 C49
    Date: 2008
  3. By: Lokshin, Boris (UNU-MERIT and Maastricht University); Gils, Anita van (Maastricht University); Bauer, Eva (BBDO Consulting)
    Abstract: Recent interdisciplinary research suggests that customer and technological competencies have a direct, unconditional effect on firms' innovative performance. This study extends this stream of literature by considering the effect of organizational competencies. Results from a survey-research executed in the fast moving consumer goods industry suggest that firms that craft organizational competencies - such as improving team cohesiveness and providing slack time to foster creativity - do not directly improve their innovative performance. However, those firms that successfully combine customer, technological and organizational competencies will create more innovations that are new to the market.
    Keywords: Innovation, Research and Development, Consumer Goods, Product Innovation, Production Management, Personnel Management, Capability Building
    JEL: O31 O32 L68 M11 M12
    Date: 2008
  4. By: Spielman, David J.; Hartwich, Frank; von Grebmer, Klaus
    Abstract: "Public-private partnerships (PPPs) in agricultural research and development are increasingly viewed as an effective means of conducting advanced research, developing new technologies, and deploying new products for the benefit of small-scale, resource-poor farmers and other marginalized groups in developing countries. There are, however, few studies that empirically establish whether PPPs fulfill this role in the context of developing-country agriculture. This brief presents the results of a study that examines how PPPs in agricultural research stimulate greater investment in pro-poor innovation in developing country agriculture. The brief provides policymakers, research managers, and business decisionmakers with a better understanding of how such partnerships operate, what types of challenges they face, and how their operation can be improved to make a greater contribution to food security and poverty reduction." from text
    Keywords: Agricultural research, Agricultural development, Research and development, Public-private partnership,
    Date: 2007
  5. By: Daniel Schiess (CER-ETH Center of Economic Research at ETH Zurich, Switzerland); Roger Wehrli (CER-ETH Center of Economic Research at ETH Zurich, Switzerland)
    Abstract: This paper presents a Schumpeterian quality-ladder model incorporating the impact of new General Purpose Technologies (GPTs). GPTs are breakthrough technologies with a wide range of applications, opening up new innovational complementarities. In contrast to most existing models which focus on the events after the arrival of a new GPT, the model developed in this paper focuses on the events before the arrival if R&D firms know the point of time and the technological impact of this drastic innovation. In this framework we can show, that the economy goes through three main phases: First, the economy is in its old steady state. Second, there are transitional dynamics and finally, the economy is in a new steady state with higher growth rates. The transitional dynamics are characterized by oscillating cycles. Shortly before the arrival of a new GPT, there is an increase in R&D activities and growth going even beyond the old steady state levels and immediately before the arrival of the new GPT, there is a large slump in R&D activities using the old GPT.
    Keywords: Schumpeterian growth, research and development, general purpose technologies
    JEL: O11 O33 O41
    Date: 2008–02
  6. By: Cerquera Dussán, Daniel
    Abstract: We develop a model of R&D competition between an incumbent and a potential entrant with network externalities and durable goods. We show that the threat of entry eliminates the commitment problem that an incumbent may face in its R&D decision due to the goods’ durability. Moreover, a potential entrant over-invests in R&D and an established incumbent might exhibit higher, equal or lower R&D investments in comparison with the social optimum. In our model, the incumbent’s commitment problem and the efficiency of its R&D level are determined by the extent of the network externalities.
    Keywords: Network externalities, Durable Goods, Innovation, Imperfect Competition
    JEL: D21 D85 L13 O31
    Date: 2007
  7. By: Binz, Hanna L.; Czarnitzki, Dirk
    Abstract: We analyze financial constraints for R&D, where we account for heterogeneity among investments which has been neglected in previous literature. According to economic theory, investments should be distinguished by their degree of uncertainty, e.g. routine R&D versus cutting-edge R&D. Financial constraints should be more binding for cutting-edge R&D than for routine R&D. Using panel data we find that R&D spending of firms devoting a significant fraction of R&D to cutting-edge projects is curtailed by credit constraints while routine R&D investments are not. This has important policy implications with respect to the distribution of R&D subsidies in the economy.
    Keywords: R&D, Financial Constraints, Panel Data
    JEL: O31 O32
    Date: 2008

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