nep-ino New Economics Papers
on Innovation
Issue of 2008‒12‒01
six papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Learning and Technology Adoptions By Scholz, Sebastian
  2. Who are the brokers of knowledge in regional systems of innovation? A multi-actor network analysis By Martina Kauffeld-Monz; Michael Fritsch
  3. Openness and Innovation - Home and Export Demand Effects on Manufacturing Innovation: Panel Data Evidence for Ireland and Switzerland By Martin Woerter; Stephen Roper
  4. Competition, Innovation and Distance to Frontier By Bruno Amable; Lilas Demmou; Ivan Ledezma
  5. KNOWLEDGE DEVELOPMENT PATTERNS IN RADICALLY NEW PRODUCT ARCHITECTURES By Sköld, Martin
  6. Open innovation in SMEs: Trends, motives and management challenges By Jeroen de Jong; Vareska van de Vrande; Wim Vanhaverbeke; Maurice de Rochemont

  1. By: Scholz, Sebastian
    Abstract: A government that wants to increase welfare by subsidizing either an industry’s sales or process innovations or both has to account for possible changes of production, when firms can foresee the government’s actions. In an optimal control framework welfare can be increased by subsidizing either an industry’s sales or process innovations. An earlier innovation date increases the price that is charged up to that innovation date, but decreases it afterwards, when process innovation costs depend on the date of innovation. Hence the welfare effect might be negative. This paper will be the first that sets up a framework, which helps to examine the optimal mixture of sales and innovation subsidies, where innovation costs depend on time and learning on cumulative production quantities. The process innovation can be understood as a substitute to learning. In this set up innovation subsidies are more beneficial for the monopolist, sales subsidies for consumers.
    Keywords: Process Innovation; Timing; Learning-by-Doing
    JEL: L11 L51 O30
    Date: 2008–10–31
    URL: http://d.repec.org/n?u=RePEc:lmu:muenec:7575&r=ino
  2. By: Martina Kauffeld-Monz (Institute for Urban Science and Structural Policy (IfS Berlin), Germany.); Michael Fritsch (Friedrich Schiller University Jena, German Institute for Economic Research (DIW-Berlin), and Max Planck Institute of Economics, Jena, Germany.)
    Abstract: The discussion on regional innovation systems emphasizes the duality of local and global links. While the former enable effective knowledge exchange between regional actors, the latter are considered to provide regional systems with knowledge diverse to their knowledge base. Our empirical analysis of 18 German regional innovation networks highlights the importance of public research organizations for inter-regional knowledge exchange. The broker and gatekeeper function of public research organizations may be particularly important in lagging regions that typically suffer from a lack of large firms who often assume the role of "gatekeepers of knowledge".
    Keywords: Regional systems of innovation, innovation networks, knowledge broker, gatekeeper
    JEL: D83 D85 L14
    Date: 2008–22–24
    URL: http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2008-089&r=ino
  3. By: Martin Woerter (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Stephen Roper (Centre for Small and Medium Enterprises, Warwick Business School, University of Warwick, Coventry, UK)
    Abstract: Recent studies in the tradition of Schmookler have re-emphasised the potential role of demand in stimulating innovation. Here, we reconsider the role of ‘home’ and ‘export’ market demand in stimulating manufacturing innovation using comparable panel data for two small open economies – Ireland and Switzerland. Our analysis is based on the estimation of reduced form innovation production functions using panel data estimators over the sample period 1994 to 2005. For a range of innovation indicators, however, we find little evidence of any significant market demand effects, with innovation performance instead determined largely by firm-level capability effects and characteristics. In policy and strategy terms this suggests the continued value of measures to improve innovation capability regardless of market demand conditions. In more methodological terms our results suggest the validity of the usual assumption implicit in modelling innovation outputs that supply-side factors predominate.
    Keywords: Innovation, demand, Ireland, Switzerland
    JEL: O3 O5 P5
    Date: 2008–11
    URL: http://d.repec.org/n?u=RePEc:kof:wpskof:08-210&r=ino
  4. By: Bruno Amable (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I); Lilas Demmou (DGTPE - Direction Générale du Trésor et de la Politique Economique); Ivan Ledezma (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I)
    Abstract: According to a recent literature, the positive effect of competition is supposed to be growing with the proximity to the technological frontier. Using a variety of indicators, the paper tests the effect of competition and regulation on innovative activity measured by patenting. The sample consists of a panel of 15 industries for 17 OECD countries over the period 1979-2003. Results show no evidence of a positive effect of competition growing with the proximity to the frontier. Two main configurations emerge. First, regulation has a positive effect whatever the distance to the frontier and the magnitude of its impact is higher the closer the industry is to the frontier. Second, the effect of regulation is negative far from the frontier and becomes positive (or non significant) when the technology gap decreases. These results contradict the belief in the innovation-boosting effect of product market deregulation such as taken into account in the Lisbon Strategy.
    Keywords: Innovation, competition, distance to frontier.
    Date: 2008–07
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00340409_v1&r=ino
  5. By: Sköld, Martin (Dept. of Business Administration, Stockholm School of Economics)
    Abstract: Knowledge development patterns in radically new product architectures are explored. The aim is to achieve rich insights to generate explanatory propositions from a longitudinal field-study of three years. Results descend from a strategically selected sample pictured by a large industrial corporation up to develop a new product architecture as a principal mean to achieve synergies from an acquisition process. The study demonstrates how knowledge about two domains; components and architecture, simultaneously changes when developing radically new product architectures. Explanatory propositions suggest: (1) architecture to add complexity and uncertainty; (2) components to reduce complexity and uncertainty; (3) and architectural knowledge to be developed from knowledge about components.
    Keywords: Knowledge development; patterns; radical innovation
    Date: 2008–11–18
    URL: http://d.repec.org/n?u=RePEc:hhb:hastba:2008_008&r=ino
  6. By: Jeroen de Jong; Vareska van de Vrande; Wim Vanhaverbeke; Maurice de Rochemont
    Abstract: Although evidence for open innovation practices has been provided for large MNEs, they have not yet been analyzed systematically for SMEs. This paper presents the results of a survey among 605 Dutch innovating SMEs. The results show that SMEs are increasingly adapting open innovation practices. Moreover, they indicate a difference in the adaption to open innovation between manufacturing and services firms, and between larger and smaller SMEs. Larger SMEs adapting more quickly and in a more structured and professionalized way to open innovation than smaller ones. The survey furthermore shows that SMEs generally pursue an open innovation strategy to realize market-related objectives such as meeting customer demands, or keeping up with competitors. In addition, the results show that the most important barriers respondents face are related to the organizational and cultural differences when cooperating with other partners. Other serious barriers are administrative burdens, financing and knowledge transfer problems.
    Date: 2008–11–17
    URL: http://d.repec.org/n?u=RePEc:eim:papers:h200819&r=ino

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