nep-ino New Economics Papers
on Innovation
Issue of 2009‒12‒19
twenty-six papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Effects of Patent Length on R&D: A Quantitative DGE Analysis By Angus C. Chu
  2. Innovation-Specific Patent Protection By Angus C. Chu
  3. Macroeconomic Effects of Intellectual Property Rights: A Survey By Angus C. Chu
  4. Offshore Outsourcing, Contractual R&D and Intellectual Property in Developing Countries By Marjit, Sugata; Xu, Xinpeng; Yang, Lei
  5. Building Absorptive Capacity to Organise Inbound Open Innovation in Low Tech Industries By A. SPITHOVEN; B. CLARYSSE; M. KNOCKAERT
  6. The design paradox: the contribution of in-house and external design activities on product market performance By Czarnitzki , Dirk; Thorwarth, Susanne
  7. France: innovation system and innovation policy By Muller, Emmanuel; Zenker, Andrea; Héraud, Jean-Alain
  8. Drivers for international innovation activities in developed and emerging countries By Schmiele, Anja
  9. International R&D cooperation: the perceptions of SMEs and Intermediaries By Margarida Catarino; Aurora A.C. Teixeira
  10. Selectivity in search strategies for innovation: from incremental to radical, from manufacturing to services By Köhler, Christian; Sofka, Wolfgang; Grimpe, Christoph
  11. Investment in Intangible Assets in Canada: R&D, Innovation, Brand, and Mining, Oil and Gas Exploration Expenditures By Baldwin, John R.; Gu, Wulong; Lafrance, Amélie; Macdonald, Ryan
  12. The Dynamics of R&D Network in the IT Industry By Nobuyuki Hanaki; Ryo Nakajima; Yoshiaki Ogura
  13. Searching for innovation in market and transition economies: evidence across Europe By Sofka , Wolfgang; Grimpe, Christoph
  14. The evolution of Norway’s national innovation system By Fagerberg, Jan; Mowery , David C; Verspagen, Bart
  15. On the Growth and Welfare Effects of Defense R&D By Angus C. Chu; Ching-Chong Lai
  16. Do we really need regional innovation agencies? Some insights from the experience of an Italian region By Annamaria Fiore; Maria Jennifer Grisorio; Francesco Prota
  17. Bridging University-Firm relationships and Open Innovation literature: a critical synthesis By Luís Pinheiro; Aurora A.C. Teixeira
  18. The Contribution of the Publicly Funded R&D Capital to Productivity Growth and an application to the Greek food and beverages industry By mamatzakis, e
  19. Innovation, Fast Seconds, and Patent Policy By George Norman; Lynn Pepall; Dan Richards
  20. Strategic Under-utilization of Patents and Entry Deterrence: The Case of Pharmaceutical Industry By Marjit, Sugata; Kabiraj, Tarun; Dutta, Arijita
  21. Innovation Policy and Development in the ICT Paradigm: Regional and Theoretical Perspectives By Kalvet, Tarmo
  22. Fit and complementarity: cognitive distance and combined competence as predictors of co-operative R&D projects' outcomes in Europe By Zibell, Laurent; Allen, Peter M.
  23. Investissement en actifs incorporels au Canada : dépenses de R-D, d'innovation, d'image de marque et de prospection minière, pétrolière et gazière By Baldwin, John R.; Gu, Wulong; Lafrance, Amélie; Macdonald, Ryan
  24. International Intellectual Property Rights: Effects on Growth, Welfare and Income Inequality By Angus C. Chu; Shin-Kun Peng
  25. North - South R&D Spillovers and Student Flows By Thanh Le
  26. Formal vs. informal protection instruments and the strategic use of patents in an Expected-Utility framework By Neuhaeusler, Peter

  1. By: Angus C. Chu (Institute of Economics, Academia Sinica, Taipei, Taiwan)
    Abstract: This paper develops an R&D-growth model and calibrates the model to aggregate data of the US economy to quantify a structural relation ship between patent length, R&D and consumption. Under parameter values that match the empirical flow-profit depreciation rate of patents and other key features of the US economy, extending the patent length beyond 20 years leads to a negligible increase in R&D despite equilibrium R&D underinvestment. In contrast, shortening the patent length leads to a significant reduction in R&D and consumption. Finally, this paper also analytically derives and quantifies a dynamic distortionary effect of patent length on capital investment.
    Keywords: innovation-driven growth, intellectual property rights, patent length, R&D
    JEL: O31 O34
    Date: 2009–01
    URL: http://d.repec.org/n?u=RePEc:sin:wpaper:09-a001&r=ino
  2. By: Angus C. Chu (Institute of Economics, Academia Sinica, Taipei, Taiwan)
    Abstract: This study develops an R&D-based growth model that features both vertical and horizontal innovation to shed some light on the current debate on whether patent protection stimulates or stifles innovation. Speci…cally, we analyze the growth and welfare effects of patent protection in the form of profit division between sequential innovators along the quality ladder. We show that patent protection has asymmetric effects on vertical innovation (i.e., quality improvement) and horizontal innovation (i.e., variety expansion). Maximizing the incentives for vertical (horizontal) innovation requires a profit-division rule that assigns the entire flow profit to the entrant (incumbent) of a quality ladder. In light of this finding, we argue that in order to properly analyze the growth and welfare implications of patent protection, it is important to firstly disentangle its different effects on vertical and horizontal innovation.
    Keywords: economic growth, innovation, intellectual property rights
    JEL: O31 O34 O40
    Date: 2009–10
    URL: http://d.repec.org/n?u=RePEc:sin:wpaper:09-a010&r=ino
  3. By: Angus C. Chu (Institute of Economics, Academia Sinica, Taipei,Taiwan)
    Abstract: This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection as well as empirical evidence on the effects of patent rights. Then, the second part considers the international aspects of IPR protection. In summary, this paper draws the following conclusions from the literature. Firstly, different patent policy instruments have different effects on R&D and growth. Secondly, there is empirical evidence supporting a positive relationship between IPR protection and innovation, but the evidence is stronger for developed countries than for developing countries. Thirdly, the optimal level of IPR protection should tradeoff the social benefits of enhanced innovation against the social costs of multiple distortions and income inequality. Finally, in an open economy, achieving the globally optimal level of protection requires an international coordination (rather than the harmonization) of IPR protection.
    Keywords: economic growth, income inequality, patent policy, international coordination
    JEL: O34 O40 F13 D31
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:sin:wpaper:09-a007&r=ino
  4. By: Marjit, Sugata; Xu, Xinpeng; Yang, Lei
    Abstract: This paper examines the role of intellectual property in developing countries in offshore outsourcing of R&D. We find that strengthened intellectual property protection in developing countries provides incentive for firms, both multinational and local, to specialize in undertaking an R&D activity in which it has competitive advantage (the specialization effect). It also facilitates the process for local firms to switch from imitators to potential innovators (the switching effect). We demonstrate that the multinational firm's strategic behavior on IPR enforcement can be used as an effective instrument to subsidize contractual research and development in developing countries (the subsidizing effect). We further illustrate how a policy mix of IPR and FDI subsidy in developing countries affects R&D activities adding an offshore R&D subsidiary as an additional organizational form.
    Keywords: Intellectual Property Rights; Contractual R&D; R&D Chain.
    JEL: O1 L13 O34 F14
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:19362&r=ino
  5. By: A. SPITHOVEN; B. CLARYSSE; M. KNOCKAERT
    Abstract: The discussion on open innovation suggests that the ability to absorb external knowledge has become a major driver for competition. In the case of inbound open innovation, companies screen their environment to search for the appropriate technology and knowledge and do not exclusively rely on in-house R&D. A key precondition is that firms dispose of “absorptive capacity” to internalise external knowledge. For R&D intensive large firms, the concept of absorptive capacity is well understood. In contrast, for small firms and firms operating in traditional sectors, implementing the concept of absorptive capacity is less documented. These firms will have to look for assistance to build their absorptive capacity or even to ‘outsource’ a significant part of this function. This paper, therefore, focuses on the role of collective research centres in Belgium in building absorptive capacity at the intraorganisational dyad level. This type of technology intermediaries are created to help firms operating in traditional sectors to take advantage of the latest technological developments. The aim of the paper is to demonstrate that the trend towards openness of the innovation process forces firms lacking absortive capacity to search for alternative ways to engage in inbound open innovation. The paper highlights the multiple activities of which absorptive capacity is made up; it defines the concept of absorptive capacity as a precondition to open innovation; and it demonstrates how firms lacking absorptive capacity collectively cope with the distributedness of knowledge and innovation.
    Keywords: open innovation; absorptive capacity; technology intermediation
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:rug:rugwps:09/606&r=ino
  6. By: Czarnitzki , Dirk; Thorwarth, Susanne
    Abstract: This paper explores the contribution of design activities on product market performance of Belgian companies. While there is mounting evidence that design can be seen as a strategic tool to successfully spur sales of new product developments at the firm level, the topic of design innovation has not been linked to the open innovation concept yet. In this paper we empirically test whether design activities conducted in-house differ in their contribution to new product sales from externally acquired design. Using a large crosssection of manufacturing and service firms, we investigate the effects on sales of products new to the market and of imitation or significantly improved products of the firm. At first glance, we find the paradox that externally acquired design is not superior to in-house design activities. This effect is robust to several modifications of the model specification. As earlier literature on new technological developments in high-tech sectors, we argue, however, that external design may not affect the sales of market novelties as the “market news” may spill-over quickly to rivals through common customers and suppliers including external designers. --
    Keywords: Design,R&D,Collaboration,Open Innovation,Product Market Performance
    JEL: O31 O32
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:09068&r=ino
  7. By: Muller, Emmanuel; Zenker, Andrea; Héraud, Jean-Alain
    Abstract: --
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:zbw:fisidp:18&r=ino
  8. By: Schmiele, Anja
    Abstract: This paper aims to shed light on firm specific drivers that lead firms to internationalise their innovation activities. The paper draws a comprehensive picture of driving forces by including firm capabilities, characteristics of the firm’s competitive environment and the influence of innovation obstacles in the home country. In particular, the role of the potential driving forces is tested on the probability to carry out different innovative activities abroad (R&D, design/conception of new products, manufacturing of innovative products and implementation of new processes). In a second step these driving forces are used to observe their impact on the decision to locate innovation activities in various countries and regions (China, Eastern Europe, Western Europe and North America) as well as in groups of countries with similar levels of knowledge (country clubs). The analysis is based on the Mannheim Innovation Panel survey which represents the German CIS (Community Innovation Survey) contribution. Two survey waves are combined and result in a sample of about 1400 firms. The results show that the decision to perform innovation activities abroad is mainly driven by organisational capabilities such as absorptive capacities, international experience and existing technological competences of the respective firm. Innovation barriers at the German home base such as lack of labour and high innovation costs foster the set up of later-stage innovation activities abroad while the lack of demand demonstrates a barrier to the internationalisation decision for the development and manufacturing of new products. Location decisions receive the strongest influencing effects from the international experience of the firm. Firms which innovate in developing countries seem to require a more extensive level of international experience by international R&D cooperation. --
    Keywords: Internationalisation of R&D,Innovation,Absorptive Capacities,Market Structure,China,Asia,Emerging countries
    JEL: F23 L22 L25 O31 O32 O47
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:09064&r=ino
  9. By: Margarida Catarino (Faculdade de Economia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto)
    Abstract: Despite the large number of studies on Research and Development (R&D) cooperation, this is, in general, focused on the firms’ perceptions, neglecting the perception of the R&D Intermediary (e.g., universities, technology centres, R&D institutes, intellectual property supporting offices). Moreover, cooperation has been analyzed on a national perspective with cooperation projects in R&D involving entities from different countries being rarely studied. In the present paper we gathered empirical evidence on the motivation, obstacles and outcomes of international R&D cooperation projects based on the perceptions from both firms and intermediaries. Resorting to an unique database that includes 473 R&D international cooperation projects, developed within the 6th Framework Programme, we demonstrate that the heterogeneity is quite large as far as the motivations are concerned for the international R&D cooperation. This high heterogeneity might explain the high failure rate of R&D partnerships, namely the ones involving firms and universities. Not losing sight of the necessary enhancement of the scientific and knowledge basis, essential for the technological progress of nations, evidence gathered seem to advise an attitude on behalf of Intermediaries more focused on firms’ intended results.
    Keywords: international R&D cooperation, Intermediaries, firms
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:344&r=ino
  10. By: Köhler, Christian; Sofka, Wolfgang; Grimpe, Christoph
    Abstract: The shift towards more open and interconnected innovation activities has been a major topic of recent academic and practitioner discussions. Firms have to connect their in-house R&D activities with external partners, such as leading customers or universities, to increase the effectiveness of their innovation activities. Hence, management needs to define search strategies for valuable knowledge in its environment. In this paper we argue that search strategies have to reflect the heterogeneity of various knowledge sources with regard to the knowledge they can provide and how these sources can be activated. We hypothesize that search strategies driven by science, suppliers and the product market will contribute differently to innovation success with radically new versus incrementally refined products. We suggest that innovation in service sectors is fundamentally different in nature which influences the performance of different search strategies. We test these hypotheses for a sample of more than 5,000 firms from five European countries. The results support our hypotheses and highlight the potentials and shortcomings of different search strategies. --
    Keywords: Search strategies,service innovation,radical versus incremental innovation
    JEL: L60 O32
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:09066&r=ino
  11. By: Baldwin, John R.; Gu, Wulong; Lafrance, Amélie; Macdonald, Ryan
    Abstract: This paper presents estimates of intangible investment in Canada for the purpose of innovation, advertising and resource extraction. It first expands upon work by Beckstead and Gellatly (2003), Baldwin and Hanel (2003), Beckstead and Gellatly (2003), Beckstead and Vinodrai (2003) and Baldwin and Beckstead (2003) who argue that the scope of innovative activity extends beyond research and development (R&D) as defined by the Frascati Manual. It extends the definition of innovative activities to include all scientific and engineering expenditures - regardless of whether they are market-based or produced with a firm. The paper also considers expenditures on intangible items such as brands or resource exploration. The paper contributes to the existing literature by creating intangible investment estimates (science and engineering knowledge, advertising, mineral exploration by industry) using Statistics Canada's high quality and internally consistent databases. It produces estimates that accord with other intangibles studies (Corrado, Hulten and Sichel 2005, 2006; Jalava, Ahmavarra and Alanen 2007) and shows that traditional R&D type investment estimates account for about a quarter of intangible science and engineering investments.
    Keywords: Science and technology, Innovation, Research and development
    Date: 2009–12–02
    URL: http://d.repec.org/n?u=RePEc:stc:stcp6e:2009026e&r=ino
  12. By: Nobuyuki Hanaki; Ryo Nakajima; Yoshiaki Ogura
    Abstract: In this paper, we provide an empirical analysis of evolving networks of successful R&D collaborations in the IT industry (consisting of firms that obtained patents in the technological category of computers and communication) in the U.S. between 1985 and 1995. We first show that the R&D network has become more extensive, more clustered, and more unequal in the sense that 'stars' have emerged in the network. We then analyze the effect of the existing network structure in the process of new R&D collaboration formation. We control for unobserved similarities among firms based on the community structures within the network that the algorithm developed by Girvan and Newman (2004) identifies and find a significant cyclic closure and preferential attachment effect.
    Date: 2009–08
    URL: http://d.repec.org/n?u=RePEc:tsu:tewpjp:2009-014&r=ino
  13. By: Sofka , Wolfgang; Grimpe, Christoph
    Abstract: Searching for externally available knowledge has been characterized as a vital part of the innovation process. The availability of such innovation impulses, however, critically depends on the environment a firm is operating in. Little is known on how institutional infrastructures for innovation differ with respect to the munificence in providing innovation impulses. In this paper, we suggest that these differences are particularly pronounced between established market economies and transition economies. We argue that these differences shape a firm's search pattern and that the search pattern subsequently moderates the relationship between innovation inputs and outputs. Based on a sample of more than 4,500 firms from ten European countries we find that search strategies differ considerably between established market and transition economies. Search in transition economies is characterized by much more variety. However, management capacity in these countries is a particularly scarce resource which is why focused search strategies turn out to be most successful. --
    Keywords: Search strategies,open innovation,transition economies,institutional infrastructure for innovation
    JEL: L60 O32
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:09061&r=ino
  14. By: Fagerberg, Jan; Mowery , David C; Verspagen, Bart
    Abstract: This paper analyses the co-evolution of science, technology and innovation policy and industrial structure in a small, open, resource-based economy (Norway). The contributions of the paper are threefold. First, it develops an evolutionary and historically oriented approach to the study of the development of these policies that may have wide applicability. Second, it focuses on a particular type of innovation, innovation in resource-based activities, that differs in many respects from the more commonly studied case of innovation in ‘high-tech’ industries. Third, the paper advances our understanding of the roles played by institutions and politics in innovation. Previous work on national systems of innovation has devoted little attention to these matters, possibly because much of this work examines ‘snapshots’ of various innovation systems at a specific point in time and lacks historical depth.
    Keywords: innovation; national innovation system; Norway; evolution
    JEL: O1 N10 F50
    Date: 2009–07
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:19330&r=ino
  15. By: Angus C. Chu; Ching-Chong Lai (Institute of Economics, Academia Sinica, Taipei, Taiwan)
    Abstract: In the US, defense R&D share of GDP has decreased significantly since 1960. To analyze the implications on growth and welfare, we develop an R&D-based growth model that features the crowding-out and spillover effects of defense R&D on civilian R&D. The model also captures the effects of defense technology on (i) national security resembling consumption-type public goods and (ii) aggregate productivity via the spin-off effect resembling productive public goods. In this framework, economic growth is driven by market-based civilian R&D as in standard R&D-based growth models and government-financed public goods (i.e., defense R&D) as in Barro (1990). We find that defense R&D has an inverted-U effect on growth, and the growth-maximizing level of defense R&D is increasing in the spillover and spin-off effects. As for the welfare-maximizing level of defense R&D, it is increasing in the security-enhancing effect of defense technology, and there exists a critical degree of this security-enhancing effect below (above) which the welfare-maximizing level is below (above) the growth-maximizing level.
    Keywords: defense R&D, public goods, economic growth, social welfare
    JEL: H41 H56 O38 O40
    Date: 2009–07
    URL: http://d.repec.org/n?u=RePEc:sin:wpaper:09-a008&r=ino
  16. By: Annamaria Fiore (Agenzia Regionale per la Tecnologia e l’Innovazione - ARTI); Maria Jennifer Grisorio (Agenzia Regionale per la Tecnologia e l’Innovazione - ARTI); Francesco Prota (Department of Economics & Mathematics, University of Bari)
    Abstract: Increasing globalization, if properly exploited, can provide interesting opportunities for regional economies. Nevertheless, when they are not managed with a far-sighted approach, regions, and particularly those at an intermediate level of development, can lose their comparative advantages compared to regions of developing countries. Innovation is the main instrument for improving and ensuring competitiveness to enterprises and growth opportunities to local economies. The aim of this paper is to discuss the importance of public policies in reinforcing regional innovation systems, and the role of regional innovation agencies. With this in mind, we describe the policies implemented by the Regional Agency for Technology and Innovation (ARTI) of Apulia, a region in Southern Italy. We also provide the first assessment of ARTI’s activities and provide some suggestions on how to improve regional R&D policies.
    Keywords: public policy, innovation, regional innovation system, regional competitiveness
    JEL: O18 O38 R58
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:bai:series:wp0025&r=ino
  17. By: Luís Pinheiro (Faculdade de Economia, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto)
    Abstract: Open Innovation is understood as a flow of incoming and outgoing knowledge and technology which allows, at the level of a firm, the acceleration of the innovation process, as well as a faster establishment and access to new markets, for external use of that same innovation. This type of innovation includes technological innovation, which comes from internal and external sources, as well as different modalities of accessing the market and, therefore, commercializing the innovation. Resorting to a bibliometric analysis, using Open Innovation as the search keyword, we found that the majority of the existing studies on OI is of conceptual character. On the one hand, from the scarce existing empirical studies, the issue of the relation University – Enterprise (U-E), one of the components of the open innovation model, is analyzed in a relatively superficial way neglecting, or not referring in the most appropriated way, the mechanisms by which companies could obtain (via innovation) competitive advantage through the exploration of a more open model of innovation based on the relationships with universities. On the other hand, the existing studies on U-E relations do not highlight, at least in an explicit way, the question of the open innovation model. Such studies are still highly directed to a unidirectional profit optic, that is, are too centred on the advantages which the enterprises will be able to obtain from the relation with the universities, failing taking into account the value that potentially goes to universities from such links.
    Keywords: Open Innovation; U-E relations; Emergency; Sustainability; Benefits
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:346&r=ino
  18. By: mamatzakis, e
    Abstract: This paper follows the dual cost function methodology and develops a theoretical specification that assesses the contribution of public R&D capital to the productivity growth. The empirical application focuses on Greek food and beverages industry. For this purpose it employs a micro-aggregated annual data set over the period 1976-2002. The regression analysis shows that publicly funded R&D capital is a productive input as 8.7 percent and 7.3 percent of the total factor productivity growth in the food industry and in the beverages industry respectively is attributed to the publicly funded R&D capital. The relationship between publicly funded R&D and private purchased inputs is also examined.
    Keywords: Public R&D; Productivity Growth; Rate of return.
    JEL: L6 O32
    Date: 2009–12
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:19388&r=ino
  19. By: George Norman; Lynn Pepall; Dan Richards
    Abstract: We develop a model of innovation in which entrepreneurs develop a new (differentiated) product market that is subsequently exploited by a well-established firm that "stretches" its brand to enter a new market as "fast second". In this setting, there is a positive externality to the pioneering efforts of the intitial entrants that may well increase with the number of such entrants. We develop a model that exhibits this externality and use it to evaluate the design of patent policy--specifically patent breadth--with a view to encouraging the optimal amount of initial entry.
    Keywords: fast second, product differentiation, contestability
    JEL: L5 O25
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:tuf:tuftec:0745&r=ino
  20. By: Marjit, Sugata; Kabiraj, Tarun; Dutta, Arijita
    Abstract: This paper seeks to explain why some pharmaceutical companies are observed to withdraw their products before patents are expired and simultaneously introduce new patented (competing) products. Given the specific nature of drug markets, the companies in fact increase the entry cost of the potential generic drug manufacturers and thereby lessen competition for new drugs. The paper determines the optimal date of withdrawing the product and studies comparative static effects of the change of parameters underlying the model.
    Keywords: Patent protection; patent expiry; pharmaceutical industries; generic drugs; entry cost.
    JEL: O3 L1
    Date: 2009–11
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:19157&r=ino
  21. By: Kalvet, Tarmo
    Abstract: Innovation policy forms a foundation, and probably the most important one, of economic development in any society, especially in today’s society driven by information and communication technologies (ICT). The Schumpeterian processes of creative destruction need stewardship – creative destruction management – and this paper aims to explore some key aspects of innovation policies from the perspective of the current ICT paradigm. The basic feature of the latter is the trend towards globalisation, towards facilitation of heterogeneity, diversity, and adaptability, which leads to market segmentation and niche proliferation as well as to production disaggregation and segment relocation. Analysis of innovation policies of the Central and Eastern European (CEE) countries shows that their current national innovation system based innovation policies are lacking several crucial features. First, one of the central arguments of creative-destruction management is paradigm-based, activity-specific priority-setting, but such wide-scale selection mechanisms have been and are still missing, and currently innovation policies by themselves can not lead to economic restructuring. Second, the whole concept of innovation systems has to a large extent focused on activities related to the production and use of codified scientific and technical knowledge leading to the situation where existing policies have essentially nothing to do with the average companies. Third, the current paradigm is characterised by globalised and open financial markets which, in case of the CEE countries, have enforced speculative economic growth, fuelled by domestic consumption and based on foreign borrowing. Finally, while the state is generally considered an important factor influencing how concrete innovation systems develop, linkages to policymaking itself and administrative capacities are quite missing and need to be revived, including the reconsideration of governance.
    Keywords: innovation; economic development; innovation policy; ICT Paradigm; open innovation; governance; dissertations;
    JEL: O38 O30 B52 O20 B15
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:19387&r=ino
  22. By: Zibell, Laurent; Allen, Peter M.
    Abstract: This article considers cognitive distance and combined competence as predictors of concrete outcomes in co-operative Research and Development projects. The operationalisation is based upon a dedicated survey, answered by matched pairs of projects managers in partnering organisations, addressing technical and scientific competence, R&D management competence and cultural features. Empirical validation was performed on 92 projects based in France, Germany and the United Kingdom in the industry of electronics and telecommunications equipment. Selected dimensions of the cognitive distance and of combined competence being developed appear to be better predictors of concrete project outcomes than geographic distance, differences in organisation size or in legal status. --
    Keywords: Cognitive distance,Competence,Capability,Cooperation,R&D
    JEL: M14 L24 L25 O31 O32
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:09073&r=ino
  23. By: Baldwin, John R.; Gu, Wulong; Lafrance, Amélie; Macdonald, Ryan
    Abstract: Le présent document fournit des estimations de l'investissement en actifs incorporels au Canada dans les domaines de l'innovation, de la publicité et de l'extraction de ressources naturelles. Il prolonge avant tout les travaux de Beckstead et Gellatly (2003), Baldwin et Hanel (2003), Beckstead et Gellatly (2003), Beckstead et Vinodrai (2003), ainsi que Baldwin et Beckstead (2003) qui soutiennent que la portée des activités d'innovation s'étend au delà de la recherche et développement telle qu'elle est définie dans le Manuel de Frascati. Ces auteurs élargissent la définition des activités d'innovation afin d'y inclure toutes les dépenses scientifiques et en génie, que les services soient obtenus sur le marché ou produits par l'entreprise. Ils examinent aussi les dépenses en éléments d'actif incorporels, tels que les marques ou l'exploration des ressources naturelles. Le document contribue à la littérature existante grâce à la présentation d'estimations de l'investissement en actifs incorporels (connaissances en science et en génie, publicité, prospection minière et pétrolière par industrie) en s'appuyant sur des bases de données de Statistique Canada dont la haute qualité et la cohérence interne sont établies. Les estimations produites concordent avec les résultats d'autres études sur les investissements incorporels (Corrado, Hulten et Sichel, 2005, 2006; Jalava, Ahmavarra et Alanen, 2007) et montrent que l'investissement de type R D classique représente environ le quart des investissements incorporels dans le domaine des sciences et du génie.
    Keywords: Science et technologie, Innovation, Recherche et développement
    Date: 2009–12–02
    URL: http://d.repec.org/n?u=RePEc:stc:stcp6f:2009026f&r=ino
  24. By: Angus C. Chu; Shin-Kun Peng (Institute of Economics, Academia Sinica, Taipei, Taiwan)
    Abstract: What are the effects of increasing developing countries’ intellectual property rights protection on growth, welfare and income inequality in the global economy? To analyze this question, we develop a two-country R&D-growth model with wealth heterogeneity. We find that the North experiences higher growth and welfare at the expense of higher income inequality while the South experiences higher growth at the expense of lower welfare and higher income inequality. As for global welfare, there exists a critical degree for the domestic importance of foreign goods below (above) which global welfare decreases (increases). In light of these findings, we discuss policy implications on China’s accession to the WTO in 2001. Furthermore, we analyze the effects of China’s rising innovative capability on domestic and foreign income inequality.
    Keywords: endogenous growth, heterogeneity, income inequality, patent policy, TRIPS
    JEL: O34 O41 D31 F13
    Date: 2009–06
    URL: http://d.repec.org/n?u=RePEc:sin:wpaper:09-a006&r=ino
  25. By: Thanh Le (MRG - School of Economics, The University of Queensland)
    Abstract: In global context, as human capital embodies technology, international student flows may play an important role as a channel of R&D spillovers from developed countries to less developed ones. Empirical study on a data set of 76 developing countries during 1998-2005 lends strong support to this hypothesis.
    URL: http://d.repec.org/n?u=RePEc:qld:uqmrg6:33&r=ino
  26. By: Neuhaeusler, Peter
    Abstract: The present article examines the question whether or not different types of firms tend to protect their innovations with varying mechanisms. Against the background of the Expected-Utility Theory (EU-Theory), firms are differentiated by their size, technological field and their degree of internationalization. According to the EU-Theory modelling, it is hypothesized that large, high-tech and strongly internationalized firms show a stronger tendency to use formal instruments, e.g. patents, to protect their innovations, whereas small and medium-sized (SME), low-tech and weakly internationalized companies fol-low the strategy of protecting their innovations with informal instruments, e.g. secrecy, to maximize their expected utility. A twofold approach is followed to analyze the theoretical model. For the empirical testing a large-scale survey about 540 records of patenting companies in Germany is used. Differences in attitudes towards protection mechanisms and differences in the actual IPR-management behavior between firms are analyzed. The results show that the attitudes towards protecting innovative achievements only differ slightly by firm type. Large differences can be revealed on the behavioral level which, together with other findings, leads to the conclusion that mostly SMEs are forced to use certain protection mechanisms to keep pace with large companies and technological precursors in fast growing markets. --
    Keywords: Intellectual property,rational choice,patents,secrecy,expected utility
    Date: 2009
    URL: http://d.repec.org/n?u=RePEc:zbw:fisidp:20&r=ino

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