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on Innovation |
| By: | Gaétan de Rassenfosse (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and ECARES, Université Libre de Bruxelles, Brussels and ECARES, Université Libre de Bruxelles.); Bruno van Pottelsberghe (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and DULBEA, Université Libre de Bruxelles and ECARES, Université Libre de Bruxelles.) |
| Abstract: | This paper investigates whether patent counts can be taken as indicators of macroeconomic innovation performance. The empirical model explicitly accounts for the two components of patenting output: research productivity and patent propensity. The empirical analysis aims at explaining the `correct' number of priority filings in 34 countries. It confirms that the two components play a substantial role as witnessed by the impact of the design of several policies, namely education, intellectual property and science and technology policies. A major policy implication relates to the design of patent systems, which ultimately induces, or allows for, aggressive patenting strategies. |
| Keywords: | education policy; patent policy; propensity to patent; R&D productivity; S&T policy. |
| JEL: | O30 O38 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:08-008&r=ino |
| By: | Broström, Anders (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | The systems of innovation approach has helped advocating a view on innovation as dependent on the interaction over time between different actors and brought the role of institutions to the center of interest. However, the approach has remained a general framework rather than evolved into an analytical tool for the study of the dynamics of innovation activities. In this discussion paper, we introduce the concept of innovation system services, defined as the set of factors that have a significant potential influence on the opportunities of a certain groups of actors to perform a certain type of activities efficiently. We suggest that the relevant innovation system for the actors-activities nexus at hand can be defined as this set of system services. We examine this analytical framework in a case study on R&D investments of multinational enterprises in Sweden. In this context, innovation system services are defined as the set of external factors that the case study suggests to have significant impact on the decisions of MNEs to invest in R&D in Sweden. The focus on services allows us to analyse the influence of an innovation system on the long-term development of R&D in Sweden in a structured and coherent manner and to identify critical dynamics. |
| Keywords: | innovation systems; R&D collaboration; multinational enterprises; innovation in services |
| JEL: | D29 O31 O32 |
| Date: | 2008–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0124&r=ino |
| By: | Erik Stam |
| Abstract: | What is meant by entrepreneurship, innovation and economic growth is often not clear or very idiosyncratic. This paper starts with a discussion of the nature of entrepreneurship and its relation to innovation. The second section provides an overview of theory and empirical research on the relation between entrepreneurship, innovation and economic growth. The paper continues with a study on entrepreneurship and innovation in the Netherlands in an international and historical perspective. After these conceptual, theoretical and empirical investigations, we turn to policy issues. |
| Keywords: | entrepreneurship, innovation policy, innovation systems, the Netherlands |
| JEL: | E61 G38 L26 L53 O12 O31 O33 O38 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0807&r=ino |
| By: | Lucia Cusmano; Maria Luisa Mancasi; Andrea Morrison |
| Abstract: | The paper investigates the diversified patterns of outsourcing in the Lombardy region and relates them to the probability of introducing product and process innovation. Based on a large firm-level survey, we show that outsourcing processes are strongly regionally embedded and that offshoring is still a limited phenomenon. Outsourcing strategies are shown to have a positive impact on firms’ innovation. In particular, the outsourcing of service activities contributes the most to innovation, thus suggesting that firms successfully pursue core strengthening strategies. Our econometric estimates show that both geographical and organizational proximity matter. Indeed, the positive association of services with innovation is strongly related to their regional dimension, which points toward the importance of local user-producer relationships. When outsourcing crosses national borders, keeping the outsourced activities at least loosely connected to the firm appears critical, as offshoring to non affiliated firms has a clear negative impact on innovation. |
| Keywords: | Product Innovation, Process Innovation, Outsourcing, Offshoring |
| JEL: | D21 F23 L22 L23 O31 O32 O33 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:0806&r=ino |
| By: | Tom-Reiel Heggedal and Karl Jacobsen (Statistics Norway) |
| Abstract: | This paper studies the timing of subsidies for environmental research and development (R&D) and how innovation policy is influenced by the costs of emissions. We use a dynamic computable general equilibrium (CGE) model with both general R&D and specific environmental R&D. We find two results that are important when subsidizing environmental R&D in order to target inefficiencies in the research markets. Firstly, the welfare gain from subsidies is larger when the costs of emissions are higher. This is because a high carbon tax increases the social (efficient) investment in environmental R&D, in excess of the private investment in R&D. Secondly, the welfare gain is greater when there is a falling time profile of the rate of subsidies for environmental R&D, rather than a constant or increasing profile. The reason is that the innovation externalities are larger in early periods. |
| Keywords: | Applied general equilibrium; endogenous growth; research and development; carbon emissions. |
| JEL: | E62 H31 O38 Q55 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:536&r=ino |
| By: | Arie Y. Lewin (Duke University – The Fuqua School of Business, US.); Silvia Massini (Manchester Business School, University of Manchester, UK.); Carine Peeters (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and ECARES, Université Libre de Bruxelles.) |
| Abstract: | This paper empirically studies the determinants of firms’ decision to offshore product development activities (i.e. R&D, product design and engineering services). A logit model is estimated using survey data from the Offshoring Research Network on offshore implementations initiated by US firms between 1990 and 2006. It relates the probability of offshoring product development to differences in companies’ strategic objectives (managerial intentionality), past experience (path dependence), and in environmental factors. The results show that offshoring of product development is partially explained by the emerging shortage of high skilled technical talent in the US, which drives the need to access talent globally. The data also suggest that firms use offshore cost savings opportunities to improve the efficiency of the innovation process, although not through labor arbitrages. Finally, increasing speed to market is another major reason underlying product development offshoring decisions. |
| Keywords: | offshoring, innovation, product development, global talent. |
| JEL: | O32 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:08-009&r=ino |
| By: | Yves Breitmoser (Institute of Microeconomics, European University Viadrina); Jonathan H.W. Tan (Nottingham University Business School, University of Nottingham); Daniel John Zizzo (School of Economics, University of East Anglia) |
| Abstract: | This paper presents an experimental study of dynamic indefinite horizon R&D races with uncertainty and multiple prizes. The theoretical predictions are highly sensitive: small parameter changes determine whether technological competition is sustained, or converges into a market structure with an entrenched leadership and lower aggregate R&D. The subjects’ strategies are far less sensitive. In most treatments, the R&D races tend to converge to entrenched leadership. Investment is highest when rivals are close. This stylized fact, and so the usefulness of neck-to-neck competition in general, is largely unrelated to rivalry concerns but can be explained using a quantal response extension of Markov perfection. |
| Keywords: | R&D race; innovation; dynamics; experiment. |
| JEL: | C72 C91 O31 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:cdx:dpaper:2008-04&r=ino |
| By: | Marko P. Hekkert; Simona O. Negro |
| Abstract: | Understanding the emergence of innovation systems is recently put central in research analysing the process of technological change. Especially the key-activities that are important for the build up of an innovation system receive much attention. These are labeled ‘functions of innovation systems’. In most cases the authors apply this framework without questioning its validity. This paper builds on five empirical studies, related to renewable energy technologies, to test whether the functions of innovation systems framework is a valid framework to analyse processes of technological change. We test the claim that a specific set of functions is suitable. We also test whether the claim made in previous publications that the interactions between system functions accelerate innovation system emergence and growth is valid. Both claims are confirmed. |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:uis:wpaper:0810&r=ino |
| By: | Joze P. Damijan; Crt Kostevc; Matija Rojec |
| Abstract: | The paper examines implications of endogenous growth theory on the relationship between firm productivity, innovation as well as productivity growth by combining information on firm-level innovation (CIS) with accounting data for a large sample of Slovenian firms in the period 1996-2002. We employ several different estimation methods in order to control for the endogeneity of innovation (Crépon-Duguet- Mairesse - CDM - approach) and idiosyncratic firm characteristics (matching and average treatment effects). We find a significant and robust link between productivity levels and firm propensity to innovate, while the results on the link between innovation activity and productivity growth are not robust to different econometric approaches. OLS estimates seem to provide some empirical support to the thesis of positive impact of innovation on productivity growth. More detailed empirical tests, however, reveal that these results are mainly driven by the exceptional performance of a specific group of services firms located in the fourth quintile with respect to size, productivity and R&D propensity measure. Estimates based on the matching techniques do not reveal any significant positive effects of innovation on productivity growth, regardless of the sectors, firm size and type of innovation. |
| Keywords: | Research and development, innovation, knowledge spillovers, productivity growth |
| JEL: | D24 F14 F21 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lic:licosd:20308&r=ino |
| By: | Paul H. Jensen (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Alfons Palangkaraya (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Julia Witt (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) |
| Abstract: | One component of the duration of pending patents – why applicants choose to delay the examination process – is modelled. We use a matched sample of 9,597 patent applications. Controlling for differences between patent offices, we find evidence of strategic behaviour by applicants. |
| Keywords: | Patent examinations; Patent pendency; Strategic behavior |
| JEL: | O31 O34 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2007n35&r=ino |
| By: | Mario Cimoli; Annalisa Primi |
| Abstract: | This paper aims to contribute to frame the IP for development debate into a more extensive discussion on appropriability, within the perspective of policies shaping scientific, technological and production capabilities in the light of development theory. Through the lenses of the paradigm based theory of innovation, the authors first recognize that technological asymmetries and gaps between firms and countries appear more as sticky features than as transitory stages of (automatic) adjustment processes, thus reassessing the appropriability ad disclosure function of patents. Then, the paper presents a taxonomy of contemporary markets for knowledge, flagging the existence of what we call derivative markets for knowledge. Patents become to a certain extent liquid because they loose the weight and the density of the technological component and they can easily circulate in the market without having necessarily to be entangled in any final artifact. Just as in derivative financial markets, the value of patents is a function of expectations regarding their uncertain potential future value. The paper concludes sketching the implications for development focusing on two major issues: i) how reassessing the role of IP through an evolutionary perspective affects behavioral microfoundations of innovative conducts and ii) how asymmetries in technological and production capacities between countries mould patenting behavior and participation and exclusion in the contemporary markets for knowledge. |
| Keywords: | intellectual property rights, patents, appropriability, markets for knowledge, developing countries |
| Date: | 2008–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2008/06&r=ino |
| By: | Sörlin, Sverker (Royal Institute of Technology); Wormbs, Nina (Royal Institute of Technology) |
| Abstract: | Given the strength of the Swedish air force and the role of state procurement in industrial expansion, so called development pairs, the size and direction of the non-military but relatively large Swedish space activity raises questions. The purpose of this article is to investigate the historic reasons for Swedish space activities, i.e. research and technology development, with focus on the early period. The relative weight of different policy areas has changed considerably over time. In our analysis the space sector in Sweden has adapted to a multilevel, multi-policy situation and has been instrumental in shaping a science and technology based social innovation system with focus on the Kiruna region. |
| Keywords: | innovation systems; Sweden; innovation policy; system evolution |
| JEL: | N00 O25 O30 |
| Date: | 2008–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0120&r=ino |
| By: | Horbach, Jens |
| Abstract: | "The paper explores employment effects of environmental product innovations at the firm level. The empirical analysis is based on the establishment panel of the Institute for Employment Research (Nuremberg). A descriptive analysis shows that more than 50% of the firms in the environmental sector developed new products or improved existing products or services. The most dynamic environmental fields were analytics, consulting, measurement technology, waste disposal and recycling. A firm specialised in environmental research and development seems to have the best employment perspectives in the short and in the long run. Our econometric analysis had to address a simultaneity problem because the decision of a firm on the realisation of innovations and on the enlargement or reduction of employment is mutually dependant. Therefore, we apply a bivariate probit model that allows estimating the two variables simultaneously. The econometric results show that the influence of environmental innovation activities on the employment development is significantly positive. Furthermore, the quantitative importance of the new products with regard to the whole turnover of the firm is also important for employment growth. Within the bivariate probit model, the determinants of environmental innovation activities are also explored. They may be interpreted as indirect influences on the employment development of the firm. The results show that the improvement of the innovative capacities by R&D and further education measures and the existence of a high qualified human capital are significantly important for the development of new products in the environmental sector. A good strategy to improve the innovativeness of a firm seems to be a diversification of environmental product lines offered by the firm." (author's abstract, IAB-Doku) ((en)) |
| Keywords: | Produktinnovation, Beschäftigungseffekte, Umweltschutzindustrie, IAB-Betriebspanel, Umweltforschung, Technik, Umweltverträglichkeit, Umwelttechnik, Recycling, Forschungsaufwand, Forschung und Entwicklung, Abfallbeseitigung, Umweltberatung, Innovationsfähigkeit |
| JEL: | Q52 Q55 J49 C25 |
| Date: | 2008–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:iab:iabdpa:200816&r=ino |
| By: | Paul H. Jensen (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Alfons Palangkaraya (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Elizabeth Webster (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne) |
| Abstract: | This paper describes two dimensions of the international patenting process: application outcomes and pendency periods using matched samples of patent applications filed at the Australian Patent Office (APO), the Japanese Patent Office (JPO), the United States Patent and Trademark Office (USPTO) and the European Patent Office (EPO). The evidence suggests that there are substantial differences across international patent agencies. For example, Japan only grants 40 per cent of those applications that are granted by both the APO and the USPTO (although a large proportion of applications at the JPO are withdrawn). Compared to the other offices, the APO is the closest to the USPTO in terms of the relative proportion of patents granted. Furthermore, the time taken to examine an application (i.e. after the request to examine has been made by the applicant) is on average shortest at the APO (approximately 14 months) and longest at the EPO (approximately 42 months). We argue that these findings are somewhat alarming because of their potential effects on the uncertainty faced by patent applicants, especially when it is linked to the overall rate of innovative activity. |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2008n06&r=ino |
| By: | Michael Peneder (WIFO) |
| Abstract: | This paper reviews the major finance-related causes of private under-investment in innovation and the consequent alternative choices for public policy. The focus is on incentive-based arguments that address the problem of limited appropriability of new knowledge, and on the lacking access to external sources of finance caused by imperfections in the capital market. Drawing a policy mind map, which aims to enhance the mutual awareness and coordination of policy makers at the crossroads of technology and corporate finance, the paper is organised along the following chain of thought: (causes and rationales, aims and targets, critical constraints, and the main finance-related instruments of innovation policy. |
| Keywords: | technological change, corporate finance, innovation policy, fiscal incentives, venture capital |
| Date: | 2008–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2008:i:313&r=ino |
| By: | ELENA REVILLA (Instituto de Empresa) |
| Abstract: | This paper contributes to the clarification of the connections between knowledge management and dynamic capabilities in the context of product development to see how they explain product development competences. Building on the knowledge management and dynamic capabilities literatures, the paper argues that the social side of knowledge management has a role to play as enabler of dynamic capabilities in the context of product development. Further, dynamic capabilities shape product development competences. Empirical evidence is provided by performing survey research with data collected from 80 product development projects developed in Spain. |
| Keywords: | Capabilities , Knowledge management, Organizational knowledge |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:emp:wpaper:wp08-14&r=ino |
| By: | Neeraj Parnami, Neeraj Parnami; Bandyopadhyay, T.K. |
| Abstract: | The term ‘collaboration’ is used to depict the all forms of agreement between academic institutions, corporate, universities, and any combination of such two or more parties who share the commitment to reach a common goal by using their resources available. Collaboration in Research and development (R&D) sector has been broadly used phenomenon for many years in India. In the collaborative research, the significant factors like time & cost being reduced to large extent because of sharing of the resources by the parties. Collaborative research contributes to the technological and economical development of the country. Collaboration avoids duplication in research. But there are lots of questions, may be arising in your mind like: what is actual meaning of collaborative research? Why do industries collaborate with the academic institutions? What goes on in the collaborative research? What are the effects of collaborative research? Which type of policy do they have? and simultaneously there are lots of issues - involved in collaborative research like intellectual property rights, technology licensing, confidential agreement etc. how can all these issues be resolved before or during collaboration, so that a healthy relationship may be established for the future benefits of all the parties involved? The purpose of writing this paper is to shed the light on the solutions available of all these questions and the issues arise between the parties involved in the collaborative research program. |
| Keywords: | Collaborative research; Intellectual property; Academic institution; Issues; University; Licensing; Industry; Driving force. |
| JEL: | A12 D89 I28 K11 A11 |
| Date: | 2008–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:8104&r=ino |
| By: | Bart van Ark (The Conference Board and University of Groningen); Charles R. Hulten (University of Maryland) |
| Abstract: | An earlier version of this paper was presented at a seminar on "Measurement of capital: beyond the traditional measures" at Conference of European Statisticians, 12 June 2007, Geneva; and at a conference on “Productivity and Innovation” organized by Statistics Sweden, October 24–25 2007, Grand Hotel, Saltsjöbaden. We are grateful to the participants for in these seminars for their comments. We also express our gratitude to our coauthors in the original projects underlying this paper, notably Marcel Timmer and Mary O’Mahony as concerning the EU KLEMS work, and Carol Corrado and Dan Sichel concerning the intangibles analysis for the United States. Any errors in this paper are of course entirely ours. |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:cnf:wpaper:0702&r=ino |
| By: | Fjaestad, Maja (Royal Institute of Technology and Stockholm University); Jonter, Thomas (Royal Institute of Technology and Stockholm University) |
| Abstract: | The purpose of this article is twofold. Firstly, the ambition is to analyze the role of the government in relation to private industry in the development of the nuclear power infrastructure in Sweden in the period of 1945-1970. Secondly, the purpose is to account for what was actually made in terms of education, research and financial funding in “the Swedish line” and to assess its importance for the swift take over by the light water reactor system. |
| Keywords: | Sweden; Innovation Systems; Nuclear Industry; System evolution |
| JEL: | N00 O31 |
| Date: | 2008–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0117&r=ino |
| By: | JAVIER CARRILLO (Instituto de Empresa); PABLO DEL RIO (Instituto de Empresa) |
| Abstract: | The paper applies and elaborates environmental and evolutionary theorising in the context of international research, development and demonstration (RD&D) cooperation. The theoretical framework of analysis lays particular emphasis on identifying and overcoming institutional barriers to international cooperation for the RD&D that contributes to radical and environmentally friendly systemic changes. The paper can be characterised as empirically based theory-building as it elaborates the conceptual framework and attests its validity with the interview findings and empirically based literature reviews. The empirical analysis is based on the HY-CO Era-Net interview results of government officers o |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:emp:wpaper:wp07-13&r=ino |
| By: | Arie Y. Lewin (Duke University – The Fuqua School of Business, US.); Silvia Massini (Manchester Business School, University of Manchester, UK.); Carine Peeters (Centre Emile Bernheim, Solvay Business School, Université Libre de Bruxelles, Brussels and ECARES, Université Libre de Bruxelles.) |
| Abstract: | The fifteen years following the introduction of the seminal construct of absorptive capacity (AC) by Cohen and Levinthal (1989, 1990) have seen the proliferation of a vast literature citing the AC construct in over 1500 published papers, chapters and books and interpreting it or applying it in many areas of organization science research, including organization theory, strategic management, and economics. However, with very few exceptions, the specific organizational routines and processes that constitute AC capabilities remain a black box. In this paper we propose a routine based model of AC that also operationalizes the AC construct. We decompose the construct of AC into two components, internal and external AC capabilities, and identify the configuration of meta-routines underlying these two components. The meta-routines are expressed within organizations by configurations of practiced routines that are observable and measurable. The ability of organizations to discover and implement complementarities between practiced AC routines may explain why some firms are successful early adopters and most firms are imitators. Success as an early adopter of a new management practice or an innovation is expected to depend on the extent to which an organization designs and implements the configuration of its internal and external absorptive capacity routines. |
| Keywords: | absorptive capacity, routines, capabilities, innovators, imitators. |
| JEL: | O31 O33 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:08-010&r=ino |
| By: | ELENA REVILLA (Instituto de Empresa) |
| Abstract: | Focusing on product development, this study extends the understanding of the environment-strategy framework and investigates the relative effect of two classical environmental variables, dynamism and complexity, on the knowledge strategy. Adopting a knowledge-based view, and assuming that the strategy´s locus is knowledge creation -exploration- and knowledge application -exploitation-, the study suggests that the development of a knowledge strategy is a managerial strategic choice that is related to the environment. The results of a survey on product development managers indicate that product development efforts operating in highly dynamic environments mostly pursue exploratory strategies. |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:emp:wpaper:wp08-15&r=ino |
| By: | Christian Keuschnigg |
| Abstract: | Venture capital has become an important source of financing young entrepreneurial firms. Venture capital backed firms are often perceived as more innovative and as creating more value than others. Perhaps for this reason, policy makers are keen to create a good institutional framework to facilitate the development of an active venture capital industry. We explore the role of tax policy in determining the incentives of individuals to start up new firms and of venture capitalists to finance and advise them. In particular, we examine how business taxation at the company and investor level together with start-up capital subsidies affect the volume and quality of venture capital backed entrepreneurship. |
| Keywords: | Entrepreneurship, venture capital, taxes, subsidies |
| JEL: | D82 G24 H24 H25 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:usg:dp2008:2008-07&r=ino |
| By: | Aurora A.C. Teixeira (INESC Porto, Faculdade de Economia (FEP), CEMPRE, Universidade do Porto, Portugal) |
| Abstract: | The literature on NSI is a relatively new field of research with a quite impressive diffusion rate in the last 15 years. Although the concept of NSI is nowadays widely used both in academic and policy contexts, and a set of comprehensive theoretical surveys were published in the most recent years, no ‘quantitative’ survey exists on this matter. The present paper aims to fill this gap. We offer a complementary, ‘quantitative’, description of the state-of-the-art in the literature resorting to bibliometric methods. Our exercise shows that the time evolution of articles published was quite irregular, and that the NSI contributions have not converged to an integrated framework. We further evidence that historically detailed descriptions on NSI à la Freeman are rare, and analyses using more rigorous and diversified quantitative methodologies for assessing the performance of NSI are on demand. The huge increase in the share of ‘Conceptual/critical meta-literature on NSI’ in the latter (2001-2007) periods interestingly documents the conceptual dynamism and methodological-analytical challenges faced presently by NSI approach. |
| Keywords: | National Systems of Innovation, Bibliometrics, Econlit |
| JEL: | O10 O30 C89 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:271&r=ino |
| By: | Olivier Bruno (University of Nice Sophia-Antipolis, GREDEG-CNRS, CERAM Business School); Cuong Le Van (PSE, CNRS, University Paris 1, CES); Benoît Masquin (University of Nice Sophia-Antipolis, GREDEG-CNRS) |
| Abstract: | <p>We develop a model of optimal pattern of economic development that is first rooted in physical capital accumulation and then in technical progress. We study an economy where capital accumulation and innovative activity take place within a two sector model. The first sector produces a consumption good using physical capital and non skilled labor. Technological progress in the consumption sector is driven by the research activity that takes place in the second sector. Research activity which produces new technologies requires technological capital and skilled labor. New technologies induce an endogenous increase of the Total Factor Productivity of the consumption sector. Physical and technological capital are not substitutable while skilled and non skilled labor may be substitutable.</p><p>We show that under conditions of the adoption process of new technologies, the optimal strategy for a developing country consists in accumulating physical capital first; postponing the importation of technological capital to the second stage of development. This result is due to a threshold effect from which new technologies begin to have an impact on the productivity of the consumption sector. However, we show that once a certain level of wealth is reached, it becomes optimal for the economy to import technological capital to produce new technologies.</p> |
| Keywords: | Model of optimal pattern of economic development, Capital accumulation, Innovative, Total Factor Productivity |
| Date: | 2008–02 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:1208&r=ino |