nep-ino New Economics Papers
on Innovation
Issue of 2009‒11‒07
nine papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Social capital and knowledge in interorganizational networks: Their joint effect on innovation By Ana Pérez-Luño; Carmen Cabello Medina; Antonio Carmona Lavado; Gloria Cuevas Rodríguez
  2. R&D investment and endogenous growth: a SVAR approach By Ángel Estrada; José Manuel Montero
  3. Innovation Processes and Factors on Peripheral Regions of Portugal and Spain By Natário, Maria Manuela
  4. Innovative interventions in support of innovation networks. A complex system perspective to public innovation policy and private technology brokering By Federica Rossi; Margherita Russo; Stefania Sardo; Josh Whitford
  5. Co-determination and Innovation By Kraft, Kornelius; Stank, Jörg; Dewenter, Ralf
  6. Multidisciplinary Innovation Teams: The New Product Development Center (NPDC) at Oklahoma State University (OSU) (PowerPoint) By Tilley, Daniel S.; Vaidyanathan, Ranji
  7. Evaluating National Innovation Systems - Key Insights from the Finnish Innoeval Survey By Annu Kotiranta; Tuomo Nikulainen; Antti-Jussi Tahvanainen; Matthias Deschryvere; Mika Pajarinen
  8. Goldilocks and the Licensing Firm: Choosing a Partner when Rivals are Heterogeneous By Anthony Creane; Hideo Konishi
  9. Monopoly Pricing of an Antibiotic Subject to Bacterial Resistance By Markus Herrmann

  1. By: Ana Pérez-Luño (Department of Business Administration, Universidad Pablo de Olavide); Carmen Cabello Medina (Department of Business Administration, Universidad Pablo de Olavide); Antonio Carmona Lavado (Department of Business Administration, Universidad Pablo de Olavide); Gloria Cuevas Rodríguez (Department of Business Administration, Universidad Pablo de Olavide)
    Abstract: This research analyzes the effects of interorganizational links on innovation using a comprehensive framework that integrates three research streams: social capital, knowledge based view and innovation. Using data from 143 R&D and/or marketing departments of innovative manufacturing and service companies, our results show that while knowledge complexity, per se, exerts a clear influence on the degree of innovations radicalness, the effect of knowledge tacitness appears only when it is combined with social capital. Similarly, the mere existence of strong cooperation agreements (relational social capital) does not guarantee more radical innovations. It is only when this social capital is combined with tacit knowledge that it really produces more innovative products. We also find that such radical products have an important impact on firm performance.
    Keywords: : Innovation; radicalness; social capital; knowledge complexity; knowledge tacitness; firm performance
    Date: 2009–10
  2. By: Ángel Estrada (Banco de España); José Manuel Montero (Banco de España)
    Abstract: We develop the barebones of a highly stylized theoretical endogenous growth model for analyzing the impact of R&D investment on long run growth. We use this framework to identify a structural vector autoregressive (SVAR) model on GDP growth, inflation and R&D investment, along with the (exogenous) flows of global knowledge, for the period 1970-2006 for the six more developed economies plus Spain. Besides, we also study the impact of private and public R&D on economic activity and prices or whether public R&D investment crowds out private one. Overall, we find that R&D shocks have a positive impact on economic activity, but a heterogeneous effect on prices. Moreover, public R&D disturbances tend to crowd out private R&D investment, except in the less innovative economies. And finally, demand shocks tend to have a negative impact on private R&D spending in the short- to medium-run.
    Keywords: R&D, Innovation, Endogenous growth, Crowding out, SVAR
    JEL: O30 O40 H50
    Date: 2009–10
  3. By: Natário, Maria Manuela
    Abstract: The innovation is the main locomotive of the economic growth and competitiveness. The understanding about innovation process has updated in last decades. The innovation concept not only includes the innovation, but also increases innovation, that can be operated in products but also in the production process, that can be in the conception of the product but also at the level of the market and even at the organizational level. The interactive models of innovation process are put upon linear models and are related with the context, environmental territory. The innovation as a system of innovation became fundamental to competitiveness. Based on these observations, this work intends to analyze the processes and innovation factors, but also enhancing the importance of innovation in system and discussing the main factors which stimulate innovation. The analysis happens on 5 NUTS III at the border of Portugal and Spain. We used the clusters analysis to verify how the companies are positioned in relation to the innovation activities. We intend to characterize the factors and processes of innovation, which distinguish the company’s groupings. The results appear to reveal the existence of three groups of companies and the distinction factors are linked to: general characteristics of companies and its director; initial objectives and innovate sources; cooperation relationships; financial support and obstacles to innovate.
    Keywords: Process of Innovation; Regional Innovation Systems; Innovation.
    JEL: R58 O31
    Date: 2009
  4. By: Federica Rossi; Margherita Russo; Stefania Sardo; Josh Whitford
    Abstract: The linear model of innovation has been superseded by a variety of theoretical models that view the innovation process as systemic, complex, multi-level, multi-temporal, involving a plurality of heterogeneous economic agents. Accordingly, the emphasis of the policy discourse has shifted over time. It has gone from a focus on direct public funding of basic research as an engine of innovation, to the creation of markets for knowledge goods, to, eventually, the acknowledgement that knowledge transfer very often requires direct interactions among innovating actors. In most cases, these interventions attempt to facilitate the match between “demand” and “supply” of the knowledge needed to innovate. A complexity perspective calls for a different framing, one focused on the fostering of process characterized by multiple agency levels, multiple temporal scales, ontological uncertainty and emergent outcomes. The article explores what it means to design interventions in support of innovation processes inspired by a complex systems perspective. It does so by analyzing two different examples of coordinated interventions: an innovative public policy funding networks of innovating firms, and a private initiative supporting innovation in the mechanical engineering industry thanks to the set up of a technology broker. Relying on two unique datasets recording the interactions of the various organizations involved in these interventions, the article combines social network analysis and qualitative research in order to investigate the dynamics of the networks and the roles and actions of specific actors in fostering innovation processes. Building upon this comparative analysis, some general implications for the design of coordinated interventions supporting innovation in a complexity perspective are derived.
    Keywords: Innovation policy; local development policies; regional development policies; evaluation management
    JEL: D78 O31 O32 O38 R58
    Date: 2009–09
  5. By: Kraft, Kornelius (University of Dortmund); Stank, Jörg (HOCHTIEF AG); Dewenter, Ralf (Technische Universität Ilmenau)
    Abstract: This paper examines the effect of the German co-determination law of 1976 (MitbestG) on the innovative activity of German firms. Co-determination applies to firms with 2000 employees or more. Data from 1971-1976 and 1981-1990 on 148 firms are used to compare the number of patents granted to co-determined firms before and after the introduction of the law. Several control variables are applied and in particular, in order to avoid a possible bias from specific effects of firm size, we compare the co-determined firms with others before and after 1976. The results do not support the view that co-determination slows down technological progress and reduces innovativeness.
    Keywords: co-determination, innovation, patents
    JEL: J5 L2 O3
    Date: 2009–10
  6. By: Tilley, Daniel S.; Vaidyanathan, Ranji
    Abstract: Presented to USDA Economists Group, Washington, DC
    Keywords: Product Development, Process Development, Business Analysis, Innovation, Agribusiness, Community/Rural/Urban Development, O,
    Date: 2009–09
  7. By: Annu Kotiranta; Tuomo Nikulainen; Antti-Jussi Tahvanainen; Matthias Deschryvere; Mika Pajarinen
    Abstract: ABSTRACT : This paper aims to provide new insights into the analysis of National Innovation Systems (NIS). Whereas the common approach is to analyze specific parts or a defined set of actors and their interactions, this paper attempts to take a more systemic approach by analyzing results of 13 surveys directed to different sets of actors related to the Finnish NIS. The focus is on the overall complexity of the system, the demand- and user-based dimensions of innovative activities and policies, internationalisation of innovative activities, public support for high growth companies, regional innovation policies, and educational policies. The results are mostly descriptive and the emphasis is on the most important findings of the surveys. In addition to the main findings, the paper includes all questionnaires and a description of the complete data set.
    JEL: O30 O38
    Date: 2009–10–28
  8. By: Anthony Creane (Michigan State University); Hideo Konishi (Boston College)
    Abstract: Markets are often characterized with firms of differing capabilities with more efficient firms licensing their technology to lesser firms.  We  examine the effects that the amount of the technology transferred, and the characteristics of the partner have on this licensing.  We find that a partial technology transfer can be the joint-profit minimizing transfer; no such transfer then is superior. However, under weakly concave demand, a complete transfer always increases joint profits so long as there are at least three firms in the industry.  We also establish a "Goldilocks" condition in partner selection: it is neither too efficient nor too inefficient.  Unfortunately, profitable transfers between sufficiently inefficient firms reduce welfare, while transfers from relatively efficient firms increase welfare.  However, an efficient firm might not select the least efficient partner, though it is the social-welfare-maximizing partner.
    Keywords: licensing, technology transfers
    JEL: D4 L24 L4
    Date: 2009–11–01
  9. By: Markus Herrmann
    Abstract: We develop a dynamic bio-economic model of bacterial resistance and disease transmission in which we characterize the pricing policy of a monopolist who is protected by a patent. After expiration, the monopolist behaves competitively in a generic industry having open access to the common pool of antibiotic efficacy and infection. The monopolist manages endogenously the levels of antibiotic efficacy as well as the infected population, which represent quality and market size respectively and achieves, at least temporarily, higher such levels than a hypothetically myopic monopolist who does not take into account the dynamic externalities. The pricing policy and the biological system are characterized by the turnpike property. Before the patent vanishes, the monopolist behaves more and more myopically, leading to a continuous decrease in the price of the antibiotic. Once the generic industry takes over, a discontinuous fall in price occurs. Whether a prolongation of the patent is socially desirable depends on the relative levels of antibiotic efficacy and infection.
    Keywords: Antibiotic efficacy, public health, monopoly pricing, renewable resource, optimal control, turnpike, patent length
    JEL: I18 L12 Q21
    Date: 2009

This nep-ino issue is ©2009 by Steffen Lippert. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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