nep-ino New Economics Papers
on Innovation
Issue of 2009‒03‒28
six papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Why the Rich Should Like R&D Less By Guido Cozzi
  2. Using continuous improvement and innovation principles for strategic planning in a government department By Griffith, Gary R.; Mullen, John D.
  3. Evidence for increasing concentration in plant breeding industries in the United States and the European Union By Nolan, Elizabeth; Santos, Paulo
  4. Measuring the benefits from R&D investment beyond the farm gate: the case of the WA wine industry* By Radhakrishnan, Manju; Islam, Nazrul; Ward, Glynn
  5. Managing R&D Alliance Portfolios By Engel Nielsen, Lars; Mahnke, Volker
  6. Determinants of the Innovation Propensity in Tunisia: the Central Role of External Knowledge Sources By Mohamed Ayadi; Mohieddine Rahmouni; Murat Yildizoglu

  1. By: Guido Cozzi
    Abstract: It is well known that research and development (R&D) is an important engine for economic growth. Also, initial wealth inequality and subsequent economic growth are well known to be related. This paper links inequality and R&D-driven growth. It shows that in a class of economies where R&D is the main engine for growth, different wealth groups differ in their desire for aggregate innovative efforts: the higher the profit share of the individual's incomes the lower their ideal aggregate R&D and innovation. If rich shareholders were able to pursue their common interest and to discourage too much R&D compared, then a pro-labour government able to impose distortionary progressive taxation, by minimizing the difference between the rich and the poor can maximize growth. Such predicted negative relationship between desired R&D and dynastic wealth is robust to any subsidy rate lower than 100%
    Keywords: R&D and Growth; Social Preferences for Innovation; Inequality, Redistribution and Growth.
    JEL: O31 O32 O38 P16 P48
    Date: 2008–06
  2. By: Griffith, Gary R.; Mullen, John D.
    Abstract: Continuous Improvement and Innovation (CI&I) is both a management process and a management strategy. In this paper, we describe how CI&I principles have been used in a strategic planning context by the research economist group in the NSW Department of Primary Industries. We provide some background on the development of CI&I as a management concept and describe the steps involved in implementing the CI&I process in this context. We conclude with some observations about the usefulness of this approach for strategic planning in a government department.
    Keywords: Continuous improvement and innovation, process, strategic planning, action design.,
    Date: 2009
  3. By: Nolan, Elizabeth; Santos, Paulo
    Abstract: There is evidence of an increase in market concentration and in the importance of private plant breeding in the seed industry following the widespread adoption of Intellectual Property Rights regimes for the industry in the developed world. We use data from the US Patent and Trademark Office, US Plant Variety Protection Office and various European Plant Variety Protection databases to estimate the extent of these changes in the seed corn industry.
    Keywords: Intellectual Property Rights, R&D, market concentration, germplasm,
    Date: 2009
  4. By: Radhakrishnan, Manju; Islam, Nazrul; Ward, Glynn
    Abstract: Evaluations of public sector agricultural research and development (R&D) often focus on farm level benefits. Flow-on benefits that accrue to other sectors such as processing and marketing typically are ignored. This paper however includes these benefits. Using the Western Australian wine industry as an example this paper highlights the relative importance of farm and flow-on benefits generated by farmlevel R&D. A wine industry value chain model is used to measure these benefits. The benefits per dollar of R&D investment are found to be $2.8 at the farm level compared to $14.9 when flow-on benefits are taken into account. In this case, solely reporting farm level benefits hugely understates the returns to the R&D investment. The R&D policy implications of the inclusion of flow-on benefits are discussed briefly.
    Keywords: R&D investment, Benefit cost analysis, Value chain modelling, wine.,
    Date: 2009
  5. By: Engel Nielsen, Lars (Department of Informatics, Copenhagen Business School); Mahnke, Volker (Department of Informatics, Copenhagen Business School)
    Abstract: Many companies in high technology fields engage with alliance partners to reduce risks, create synergies and learn. While the challenges of managing individual alliances are well documented, little is known on how to manage several R&D alliances simultaneously. Multiple alliance strategies can be observed in several companies engaged in the cross section of telecommunication and mobile technology where increased complexity magnifies managerial challenges. Drawing on modern portfolio theory, this paper offers a model for managing portfolios of R&D alliances. In particular, an analysis of a technology platform leader reveals how companies can reduce several types of risks associated with new technology and gain synergies by engaging in several alliances simultaneously
    Keywords: na
    JEL: H00
    Date: 2009–03–18
  6. By: Mohamed Ayadi (ISG - Institut supérieur de gestion - Université de Tunis, Ecole Supérieure des Sciences Economiques et Commerciales de Tunis - Université de Tunis, GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Mohieddine Rahmouni (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - CNRS : UMR5113 - Université Montesquieu - Bordeaux IV); Murat Yildizoglu (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales - CNRS : UMR6579)
    Abstract: This article is dedicated to the analysis of the first innovation survey of the Tunisian firms. Starting from basic mechanisms of innovation processes, we test a set of conjectures adapted to a developing country like Tunisia. We analyze the motivation of firms to innovate and the determinants of product and process innovations. Our results show that firms must benefit from external knowledge sources in order to exhibit significant innovation propensities. The large size is also a necessary (but not sufficient) condition for innovation. We also notice that the participation of the State plays an harmful role.
    Keywords: Innovation; development; absorptive capacity; learning
    Date: 2009–03–16

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