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on Innovation |
| By: | Reyer Gerlagh (University of Manchester); Snorre Kverndokk (Ragnar Frisch Centre for Economic Research); Knut Einar Rosendah (Research Department, Statistics Norway) |
| Abstract: | This paper addresses the timing and interdependence between innovation and environmental policy in a model of research and development (R&D). On a first-best path the environmental tax is set at the Pigouvian level, independent of innovation policy. With infinite patent lifetime, the R&D subsidy should be constant and independent of the state of the environment. However, with finite patent lifetime, optimal innovation policy depends on the stage of the environmental problem. In the early stages of an environmental problem, abatement research should be subsidized at a high level and this subsidy should fall monotonically over time to stimulate initial R&D investments. Alternatively, with a constant R&D subsidy, patents’ length should initially have a very long life-time but this should be gradually shortened. In a second-best situation with no deployment subsidy for abatement equipment, we find that the environmental tax should be high compared to the Pigouvian levels when an abatement industry is developing, but the relative difference falls over time. That is, environmental policies will be accelerated compared to first-best. |
| Keywords: | Environmental Policy, Research and Development, Innovation Subsidies, Patents |
| JEL: | H21 O30 Q42 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.53&r=ino |
| By: | Hulsink, W.; Elfring, T.; Stam, W. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | Social networks matter in the innovation processes of young and small firms, since ‘innovation does not exist in a vacuum (Van De Ven, 1986: 601).’ The contacts a firm has could both generate advantages for further innovation and growth, and disadvantages leading to inertia and stagnation. In the first case the existing social network or the new business contact provides opportunities furthering eventual success, in the second case, the existing network or the new business contacts turns out to have a constraining or even detrimental effect on performance. The search and use of social capital is driven by goal-specificity: it only includes those ties that help the actor in the attainment of particular goals. Most of the research so far has been deliberately or unwillingly one-sided, by for instance only looking at entrepreneurial firms in dynamic industries (or more specifically, start-ups in the high-tech industries). Or selective attention has been paid to either the internal sources or the external contacts to trigger innovation. And when a conclusive study has been conducted into investigating both the effect of internal and external ties on innovation, the sample often includes large and established companies and managers (instead of entrepreneurs and smaller firms, as what we are interested in). The main line of reasoning in this paper is as follows. In the first section we discuss the key network concepts, such as, social capital, relational embeddedness (strong and weak ties), structural embeddedness (i.e. structural holes). Section two deals with innovation and the central role of knowledge in the discovery and realisation of innovations. Social networks and its potential for knowledge brokering appear to be important and therefore the last section focuses on the relationship between particular network characteristics and innovation. |
| Keywords: | entrepreneurship;innovation;social capital;networking;small- and medium-sized firms;James Dyson |
| Date: | 2008–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:1765012873&r=ino |
| By: | Fabio Mariani (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I) |
| Abstract: | This paper aims at explaining why countries with comparable levels of education still experience notable differences in terms of R&D and innovation. High-skilled migration, ultimately linked to differences in R&D costs, might be responsible for the persistence of such a gap. In fact, in a model where human capital accumulation and innovation are strategic complements, we show that allowing labor outflows may strengthen educational incentives in the lagging economy if migration is probabilistic in nature, but at the same time reduces the share of innovative production. Income (growth) might be consequently affected, and a positive migration chance is very unlikely to act as a substitute for educational subsidies. |
| Keywords: | Innovation; Education; Brain drain. |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00308746_v1&r=ino |
| By: | Anna Ilyina; Roberto Samaniego |
| Abstract: | The benefits from financial development are known to vary across industries. However, no systematic effort has been made to determine the technological characteristics that are shared by industries that tend to grow relatively faster in more financially developed countries. This paper explores a range of technological characteristics that might underpin differences across industries in the need or the ability to raise external funding. The main finding is that industries that grow faster in more financially developed countries tend to display greater R&D intensity or investment lumpiness, indicating that well-functioning financial markets direct resources towards industries that grow by performing R&D. |
| Keywords: | Technology transfer , External financing , Industrial investment , Investment policy , Development , Production growth , |
| Date: | 2008–07–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:08/182&r=ino |
| By: | Valerie Mercer-Blackman |
| Abstract: | Do tax incentives for science and technology stimulate additional investment? We use detailed data on applications and acceptances for R&D tax incentives, a special survey, and for the first time, the science and technology module from the 2000-2002 Survey of Manufacturers database in Colombia to analyze this question. We estimate the effect of the R&D tax deduction instituted in Colombia using Zellner's Seemingly Unrelated Regressions method, and find that the elasticity of demand of R&D investment in manufacturing is quite high in Colombia compared to other countries, particularly for smaller firms, but that the direct benefit from existing policies is minimal. Overall, the results of the paper suggest that there is a great potential for such incentives to promote R&D investment in Colombia, but in their current form, they fail to target those firms that could benefit the most. |
| Keywords: | Working Paper , Colombia , Tax incentives , Manufacturing sector , Industrial investment , Economic models , Development , |
| Date: | 2008–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:08/178&r=ino |
| By: | Vasileios Zikos (Loughborough University) |
| Abstract: | We develop a model of endogenous network formation in order to examine the incentives for R&D collaboration in a mixed oligopoly. Our analysis reveals that the complete network, where each firm collaborates with all others, is uniquely stable, industry-profit maximizing and efficient. This result is in contrast with earlier contributions in private oligopoly where under strong market rivalry a conflict between stable and efficient networks is likely to occur. A key finding of the paper is that state-owned enterprises may be used as policy instruments in tackling the potential conflict between individual and collective incentives for R&D collaboration. |
| Keywords: | Networks, R&D Collaboration, Mixed Oligopoly |
| JEL: | C70 L13 L20 L31 L32 O31 D85 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.25&r=ino |
| By: | Simona Tenaglia (ISFOL - Institute for the Development of Training for Workers); Marco Ventura (ISAE - Institute for Studies and Economic Analyses) |
| Abstract: | This paper aims at estimating the value of legal patent protection of environment-related technologies, using the real options approach. In particular, we manage to overcome the problem of the lack of data for those countries that do not collect patent renewal data. Following this estimation strategy, we rank the value of legal patent protection for seventeen countries, closely reproducing other rankings based on surveys, for instance the PatVal survey by the EU Commission (2006), but relying on macro data publicly available and easy to access. The unit value of damage is found to be the most important determinant of the value of patents granted by legal protection. |
| Keywords: | value of patents, legal protection, real options, abatement technology, environmental technologies. |
| JEL: | K40 O38 Q55 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:isa:wpaper:103&r=ino |
| By: | Ngo Van Long; Horst Raff; Frank Stähler |
| Abstract: | This paper examines how trade liberalization affects the innovation incentives of firms, and what this implies for industry productivity and social welfare. For this purpose we develop a reciprocal dumping model of international trade with heterogeneous firms and endogenous R&D. We identify two effects of trade liberalization on productivity: a direct effect through changes in R&D investment, and a selection effect due to inefficient firms leaving the market. We show how these effects operate in the short run when market structure is fixed, and in the long run when market structure is endogenous. Among the robust results that hold for any market structure are that trade liberalization (i) increases (decreases) aggregate R&D for low (high) trade costs; (ii) increases expected industry productivity; and (iii) raises expected social welfare if trade costs are low |
| Keywords: | international trade, firm heterogeneity, R&D, productivity, market structure |
| JEL: | F12 F15 |
| Date: | 2008–06 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1430&r=ino |
| By: | You, Liangzhi; Johnson, Michael |
| Abstract: | "Agriculture plays a dominant role in nearly all the countries of East and Central Africa, and many face similar agroecological, climatic, and development challenges. As a result, significant scale economies can be made through the regionalization of research and development (R&D) using networks such as the Association for Strengthening Agricultural Research in Eastern and Central Africa. The challenge for such networks, however, is to determine both regional and national research priorities with the highest potential rates of economic return. Methodology to assess regional research priorities is a critical input into this process, particularly when it comes to weighing likely complementarities among individual research programs, thus maximizing impact across countries at the regional level. This paper presents such an approach using spatial analysis and the Dynamic Research Evaluation for Management (Dream) modeling software, which was developed by the International Food Policy Research Institute to assess potential economic returns to agricultural R&D and guide resource allocation decisions. Dream is applied to the East and Central African region to estimate potential economic and technological spillovers from country- and regional-level R&D investments for select commodities based on future projections of supply and demand, trade flows between countries and world markets, and shared agroecologies and farming systems. The results of the study indicate significant potential for agricultural technology spillovers within the region. Countries will therefore reap greater economic benefits in their search for technology solutions if they pool their resources and pursue regional initiatives for the common good." from Author's Abstract |
| Keywords: | DREAM, Technology spillovers, Priority setting, Economic surplus, Agricultural research, |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:776&r=ino |
| By: | David Frachisse (CREUSET, Jean Monnet University); Pascal Billand (CREUSET, Jean Monnet University) |
| Abstract: | In this paper, we compare two different representations of Framework Programs as affiliation network: “One-mode networks”' and “Two-mode networks”'. The aim of this article is to show that the choice of the representation has an impact on the analysis of the networks and on the results of the analysis. In order to support our proposals, we present two forms of representation and different indicators used in the analysis. We study the network of the 6th Framework Program using the two forms of representation. In particular, we show that the identification of the central nodes is sensitive to the chosen representation. Furthermore, the nodes forming the core of the network vary according to the representation. These differences of results are important as they can influence innovation policies. |
| Keywords: | Affiliation Network, Innovation Policies, Centrality |
| JEL: | L14 |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2008.32&r=ino |