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on Innovation |
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Issue of 2009‒05‒30
eleven papers chosen by Steffen Lippert Massey University Department of Commerce |
| By: | Guido Cozzi; Silvia Galli |
| Abstract: | Firm success is often associated with the development of better products. Private firms undertake applied R&D seeking market advantage, by capitalizing on the freely accessible results of basic research. But unpatentable basic research often fails to address applied R&D open problems. What is the role of the incentives in improving the innovative performance of an economy by matching partially motivated public researchers to their mission? Sometimes government funded research projects are mission-directed, yet in many cases the public sector academics indulge in carrier-driven research. An innovation system where, as in the US, also basic research is driven by patents, implicitly sets an ex-post incentive to the researchers guided by invisible hand. For a public innovation system - like the European one - designing an incentive scheme to motivate public researchers is of key importance for fostering the performance of the economic system. This paper extends the Schumpeterian multisector growth model with vertical innovation by highlighting a link between the degree of "targetness" of public research and aggregate innovation. A positive effect of social capital is also proved. |
| Keywords: | Sequential Innovation, Research Tools, Basic Research, Knowledge Management, Social Capital. |
| JEL: | H44 O31 O34 O38 |
| Date: | 2009–04 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2009_19&r=ino |
| By: | Guido Cozzi; Silvia Galli |
| Abstract: | What is the most innovation-enhancing level of patent protection for the new ideas generated within the framework of multi-stage sequential innovation? How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? What does the common law system imply on the macroeconomic responses to institutional change? We show how the jurisprudential changes in intellectual property rights witnessed in the US after 1980 can be related to the well-known increase in wage inequality and in education attainments. A Schumpeterian general equilibrium approach is followed. |
| Keywords: | Basic and Applied R&D, Sequential Innovation, Skill Premium, Inequality and Education, Research Exemption, Common Law |
| JEL: | O31 O33 O34 |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:gla:glaewp:2009_20&r=ino |
| By: | John P. Walsh; Sadao Nagaoka |
| Abstract: | While individual inventors are key to technological progress, it is becoming increasingly necessary for inventors and their firms to exploit information and capabilities outside the firm in order to combine onefs own resources with resources from the external environment. To better understand the collaborative process in inventions, we collected detailed information on a sample of triadic patents, focusing on the invention process, sources of ideas, and collaboration (the RIETI-Georgia Tech inventor survey), with over 1900 responses from the US and over 3600 responses from Japan. Our results suggest that in both countries, just over 10% of inventions involved an external co-inventor and about 30% involved external (non-co-inventor) collaborators (with the rate of collaboration somewhat higher in Japan). Cross-organizational co-inventions increase as firm size declines, especially in Japan. In both countries, vertical collaborations (both co-inventions and other collaborations) with users and suppliers were the most common. The most important knowledge sources were similar in the two countries: patents, customers, publications, and information from other parts of the firm, although their relative rankings varied somewhat. In particular, patent literature is a relatively more important information source in Japan and scientific literature is relatively more important in the US. Since our evidence suggest that inventors see literature globally, such difference does not seem to be driven by the difference of the disclosed literature (for an example, more early patent disclosure in Japan) as suggested by earlier literature but by that of the incentive and capability of the inventors. While in both countries most R&D funding is provided internally, venture capital and government funding play a greater role in the US than in Japan, with venture capital funds especially important for the smallest US firms. On the other hand, industry funding plays a greater role for university researchersf inventions in Japan. There is some evidence that gopen innovationh through collaborations enhances not only the technical significance of the invention, but also the probability of its commercialization through, for an example, vertical collaboration facilitating better matches between the needs of customers or the capabilities of suppliers. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:09022&r=ino |
| By: | de Mel, Suresh; McKenzie, David; Woodruff, Christopher |
| Abstract: | Innovation is key to technology adoption and creation, and to explaining the vast differences in productivity across and within countries. Despite the central role of the entrepreneur in the innovation process, data limitations have restricted standard analysis of the determinants of innovation to consideration of the role of firm characteristics. The authors develop a model of innovation that incorporates the role of both owner and firm characteristics, and use this to determine how product, process, marketing, and organizational innovations should vary with firm size and competition. They then use a new, large, representative survey from Sri Lanka to test this model and to examine whether and how owner characteristics matter for innovation. The survey also allows analysis of the incidence of innovation in micro and small firms, which have traditionally been overlooked in the study of innovation, despite these firms comprising the majority of firms in developing countries. The analysis finds that more than one-quarter of the microenterprises are engaging in innovation, with marketing innovations the most common. As predicted by the model, firm size has a stronger positive effect, and competition a stronger negative effect, on process and organizational innovations than on product innovations. Owner ability, personality traits, and ethnicity have a significant and substantial impact on the likelihood of a firm innovating, confirming the importance of the entrepreneur in the innovation process. |
| Keywords: | E-Business,Education for Development (superceded),Innovation,Labor Policies,Microfinance |
| Date: | 2009–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:4934&r=ino |
| By: | Singh, Lakhwinder; Singh, Baldev |
| Abstract: | The national system of innovations in the recent phase of globalization has undergone dramatic structural transformation. Innovations entails organizational as well as changes in the rules of the game. The history of economic development of the developing and newly industrializing economies shows that national systems of innovation have evolved keeping in view the most pressing requirements of the national economic development. The knowledge generation and transmission are the two essential characteristics of national innovation system that connects the users and producers of knowledge and also allows institutional arrangements to functions as a feedback system. The institutional arrangements are being altered substantially to allow capital to move freely across national borders on the one side and strict trade related intellectual property rights on the other. How these arrangements have affected the national system of innovation both in the developed and developing countries during the recent liberalisation phase of economic development? In this paper an attempt has been made to provide some plausible answers to this question. Input and output indicators have been used with a view to unravel the dramatic structural changes occurring both in the economic and innovation structure of the global economy. The internationalisation of R&D expenditure and its implications for revealed comparative advantage have been examined in order to understand the direction of change during the era of liberalisation. The suitable changes in the science and technology policy have been suggested to strengthen the national system of innovation for generating unique competitive advantage in the developing countries. |
| Keywords: | National system of innovation; structural transformation; input and output measures of innovations; revealed competitive advantage; public policy; internationalisation of R&D; intellectual property rights |
| JEL: | O1 O3 O31 |
| Date: | 2009–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:15432&r=ino |
| By: | Michele Boldrin; David K Levine |
| Date: | 2009–05–06 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levrem:814577000000000211&r=ino |
| By: | Sadraoui Tarek (LORIA - ABC (Apprentissage et Biologie Computationnelle) - CNRS : UMR7503 - INRIA - Université Henri Poincaré - Nancy I - Université Nancy II - Institut National Polytechnique de Lorraine); Naceur Ben Zina (LORIA - ABC (Apprentissage et Biologie Computationnelle) - CNRS : UMR7503 - INRIA - Université Henri Poincaré - Nancy I - Université Nancy II - Institut National Polytechnique de Lorraine) |
| Abstract: | This paper investigates the relationship between private and public investment in R&D, while taking into account the effect of several instruments policies such as subsidies and taxes. We design a new look of knowledge spillovers and R&D cooperation to explain the contribution of public and private R&D on growth. We propose a heterogeneous dynamic panel data model to consider the endogenous effect of R&D investment. We also distinguish between the estimated long and short run results. Our results based on a sample of 23 countries over the period 1992-2004 indicate that both public and private investments in R&D are complementary. By establishing an endogenous growth model, the estimates indicate that public and private R&D depends on the host country's human capital investment. Results indicate that foreign direct investment is a more significant spillover channel than imports. |
| Keywords: | R&D investment; Technology Spillovers; Complementarities; Economic growth; Dynamic Panel Data; Cointegration; Unit root test; Private investment; Public investment; R&D cooperation |
| Date: | 2009–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00388525_v1&r=ino |
| By: | Anil. K Gupta |
| Abstract: | "Given the economic distress worldwide, the micro, small and medium scale enterprises (MSME) had been hit hard. Large numbers of workers have been laid off because of depressed demand, piled up inventory, pending retrievables and squeezed credit market. A sector which provides maximum employment cannot be left to fend for itself without a major transformation led by the entrepreneurs, policy makers and also other support organizations. There are several innovative options that one can try at four different levels such as (a) stimulating demand, (b) upgrading technology and skills, (c) promoting innovations for developing new products and services and (d) forging new partnerships among the entrepreneurs and also with the R&D institutions, grassroots innovation networks and the technology students.This is a painful time for the MSMEs and the workers being laid off. A bipartition approach is required among the major political parties to put forward a revitalization plan. Millions of workers and small entrepreneurs will anyway soon vote on the vision of the parties in taking country out of the current stressful situation.[IIMA WP NO 03]" |
| Keywords: | micro, small and medium scale enterprises; organized sector; industrial symbiosis; entrepreneurs; Upgrading technology; skills; Techpedia; National Innovation; National Innovation Foundation |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1958&r=ino |
| By: | Prüfer, J. (Tilburg University, Center for Economic Research) |
| Abstract: | The process of innovation is driven by two main factors: new inventions and institutions supporting the transformation of inventions into marketable innovations. This paper proposes a new institution, called a semi- public contest, that has been neglected by the economic literature but exists frequently in practice. I show how semi-public contests can mitigate a dilemma that arises at a very early stage of innovative activity and specify the general requirements for situations in which a semi-public contest can increase welfare. This paper's results suggest that governments promote knowledge about the semi-public contest mechanism but refrain from direct public funding of contests. |
| Keywords: | Innovation;Contests;Entrepreneurs;Institutional Design;Business Plan Competitions;Auctions |
| JEL: | D02 D86 L10 O31 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:kubcen:200933&r=ino |
| By: | Anil K Gupta |
| Abstract: | Many developing countries have taken interest in learning from the Honey Bee Network experience for replicating the model. In a UNESCO conference, the author was asked to identify the key steps that national governments can take to deal with the challenge of developing an inclusive innovation based development model. Thus, the author has identified six steps which can help the leaders in various countries.[W.P. No. 2009-03-01] |
| Keywords: | indigenous knowledge; India; Global Knowledge Conference; Honey Bee Network; Ugandan National Council of Science and Technology; SRISTI; NIF |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1985&r=ino |
| By: | Anitha Ramanna |
| Abstract: | India’s patent reforms represent a shift in India’s policy from one of enormous opposition to revising patent laws according to the WTO, to one of compliance with many aspects of TRIPs (Trade Related Intellectual Property Rights) Agreement. Industry and civil society had a strong interest in blocking reforms on IPRs (Intellectual Property Rights), and initially played an important role in preventing reforms of India’s patent law. India has recently changed its patent regime, led by important industry groups who revised their positions, and new NGOs that promoted reform. The preferences of actors and their changing interests are important factors in the reform process. Perceived benefits from the new regime partly explain the rise of a pro-reform constituency among industry and NGOs. Yet preference formation is complex and depends on interpretation of strategies by various actors.[IGIDR WP 06] |
| Keywords: | Intellectual Property Rights; industry groups; NGOs; reform; preferences; Trade Related Intellectual Property Rights |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:ess:wpaper:id:1979&r=ino |