nep-ino New Economics Papers
on Innovation
Issue of 2008‒07‒14
seven papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Incidence and Growth of Patent Thickets - The Impact of Technological Opportunities and Complexity By Harhoff, Dietmar; von Graevenitz, Georg; Wagner, Stefan
  2. China’s prospects as an innovative country: an industrial economics perspective By Yu, J.; Nijkamp, P.
  3. Locational Conditions, Cooperation, and Innovativeness : Evidence from Research and Company Spin-Offs By Anna Lejpras; Andreas Stephan
  4. Appropriation and Intellectual Property By Michele Boldrin; David K Levine
  5. Market Structure and Property Rights in Open Source Industries By Michele Boldrin; David K Levine
  6. Innovation and Information Acquisition Under Time Inconsistency and Uncertainty By Sophie Chemarin; Caroline Orset
  7. Outlaw Community Innovations By Schulz, Celine; Wagner, Stefan

  1. By: Harhoff, Dietmar; von Graevenitz, Georg; Wagner, Stefan
    Abstract: We investigate incidence and evolution of patent thickets. A theoretical model of patenting encompassing complex and discrete technologies is introduced. It is shown that decreased technological opportunities increase patenting incentives in complex technologies. This effect gets stronger as complexity grows. In contrast, lower technological opportunities reduce patenting incentives in discrete technologies. We also analyze under which conditions greater complexity increases patenting incentives in complex technologies. A new measure of technological complexity is proposed that captures the density of patent thickets. Additionally, measures of fragmentation and technological opportunities are constructed exploiting European patent citations. We employ a panel capturing patenting behaviour of 2074 firms in 30 technology areas over 15 years. GMM estimation results show that patenting conforms to our theoretical model. The results indicate that patent thickets exist in 9 of the 30 technology areas. Decreasing technological opportunities are a surprisingly strong driver of patent thicket growth.
    Keywords: complexity; patent portfolios; patent thickets; patenting; technological opportunities
    JEL: L13 L20 O34
    Date: 2008–07
  2. By: Yu, J. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Nijkamp, P.
    Abstract: The recently announced Independent Innovation Strategy (IIS) signifies the climax of China’s technology catch-up effort during the past 30 years. This paper investigates the efficacy of, and prospects for this effort by reviewing comments from the relevant literature, by conducting a theoretical analysis based on industrial economics and by testing hypotheses with the latest empirical evidence. Our results suggest a bleak prospect for IIS if the Chinese government retains its excessive administrative protection of state-owned enterprises, and a long struggle ahead for China to finally push further into the technology frontier.
    Keywords: state monopoly; R&D; independent innovation; state-owned enterprise
    JEL: L12 O38 P31
    Date: 2008
  3. By: Anna Lejpras; Andreas Stephan
    Abstract: This paper has two goals. First, it analyzes the extent to which the innovativeness of spin-offs, either born from a research facility or from another company, is influenced by locational conditions. Second, it provides evidence on how important local cooperation links are in comparison to nonlocal ones. Using a sample of approximately 1,500 East German firms from knowledge-intensive sectors, we estimate a structural equation model applying the partial least squares method. We find that proximity to local research institutes and universities is the most influential factor for the cooperation intensity of spin-offs. Furthermore, the higher the cooperation intensity, the greater the innovativeness of a firm. Moreover, the results indicate that it is not the local but the nonlocal cooperation ties that are more conducive to innovativeness of research spin-offs. The findings also highlight that the innovativeness of research spin-offs with solely local links is strongly depends on support from various authorities and institutions.
    Keywords: Research and Company Spin-Offs, Locational Conditions, Cooperation Intensity, Innovativeness, Structural Equation Modeling, Partial Least Squares Approach
    JEL: M13 O18 R3
    Date: 2008
  4. By: Michele Boldrin; David K Levine
    Date: 2008–07–06
  5. By: Michele Boldrin; David K Levine
    Date: 2008–07–10
  6. By: Sophie Chemarin; Caroline Orset
    Abstract: We propose to analyse the hyperbolic discounting preferences effect on the innovator's research investment decision. Investing in research allows him to acquire information, and then to reduce the uncertainty of the risks of his project. We find that whatever the innovator's preferences, that is hyperbolic or time-consistent, there exists a research investment constraint that limits the information acquisition. However, even if the information is free, while a time-consistent agent always acquires information, a hyperbolic agent may prefer staying ignorant. We also emphasize that hyperbolic discounting preferences induce and information precision constraint that leads the hyperbolic innovator to ignore the information whilethe time-consistent innovator gets it. Moreover, the possibility that the agent has a commitment power in the future strengthens this ignorance strategy. Finally, we investigate the impact of existing liability rules on the innovator's decision to acquire information.
    Keywords: Innovation, information acquisition, uncertainty, self-control, time inconsistency, liability rules
    JEL: D81 D83 D92
    Date: 2008
  7. By: Schulz, Celine; Wagner, Stefan
    Abstract: Recent studies of outlaw communities provide qualitative evidence of their existence and the organisation of the underlying innovation processes. We provide descriptive results from a large scale survey of two online outlaw communities focussing on Microsoft's XBox. In line with previous findings, we identify two types of participants in outlaw communities - user innovators and adopters. Based on 2,256 responses, we find that users modify their XBox mainly to be able to increase the set of available functions of their XBox. Users are also motivated to modify their XBox for the sake of having fun and to conduct pirate behaviour. Finally, the results from our survey suggest that user innovators are largely intrinsically motivated by fun and the intellectual stimulation of writing code for homebrew software.
    Keywords: Outlaw community innovation; video game consoles; homebrew software
    JEL: M10 M20
    Date: 2008–07–01

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