nep-ino New Economics Papers
on Innovation
Issue of 2010‒01‒30
nine papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Renewables and Innovation - Empirical Assessment and Theoretical Considerations By Leo Wangler
  2. Not invented here: Technology licensing, knowledge transfer and innovation based on public research By Guido Buenstorf; Matthias Geissler
  3. Human resource management and learning for innovation: pharmaceuticals in Mexico By Santiago-Rodriguez, Fernando
  4. Intellectual Property Protection and Patterns of Trade By Jade Vichyanond
  5. Innovations as Response to Failures in Rural Financial Markets By Gilberto M. Llanto; Gabrielle Roanne Laviña
  6. Managing R&D activities in the Italian red biotech industry. A comparison between Italian independent firms and multinational companies By Alessia Pisoni; Alberto Onetti; Luciano Fratocchi; Marco Talaia
  7. Recombinant Knowledge and Growth: The Case of ICTs By Cristiano Antonelli; Jackie Krafft; Francesco Quatraro
  8. Understanding multilevel interactions in economic development By Goedhuys, Micheline; Srholec, Martin
  9. Intellectual Property Rights- Talking Points for RP-US FTA Negotiations By Delia S. Tantuico; Errol Wilfred Zshornack

  1. By: Leo Wangler (University of Jena, School of Economics and Business Administration)
    Abstract: This study is about structural change in the energy system. In a first step an econometric model is presented and in a second step diffusion of GTs is embedded theoretically. By focusing on different green technology industries (GT sector) in Germany, we analyze how policy induced demand stimulates innovation. Taking the size of the market as a proxy for demand and patent counts as a proxy for innovation, we find support that the presence of institutions enabling diffusion of GTs are correlated with innovative activity. Public R&D expenditures also play a significant role. We additionally control for a structural break by comparing the two institutional settings incorporated into the legal system in Germany, namely the Stromeinspeisegesetz (SEG) and the Erneuerbare Energiengesetz (EEG). We cannot find support for the supposition that innovative activity significantly differs for diffusion under the SEG and EEG. The empirical findings also show that electricity prices are not the driving force for innovative activity within the GT sector. The discussion at the end of the paper comes to the result that diffusion of GTs - under the EEG - is difficult to be justified theoretically.
    Keywords: Renewable Energies, Demand Pull, Structural Change
    JEL: L52 O31 O32 Q01 Q5
    Date: 2010–01–15
  2. By: Guido Buenstorf; Matthias Geissler
    Abstract: Using a new dataset encompassing more than 2,200 inventions made by Max Planck Society researchers from 1980 to 2004, we explore how licensee and technology characteristics affect the licensing and commercialization of technologies from public research. We find no evidence that spin-offs and external licensees systematically differ in their likelihood of successful commercialization. Technologies licensed to foreign firms are less often commercialized, which may reflect selection effects. Patented technologies and inventions by senior scientists are more likely to be licensed, but patent protection is related to lower commercialization odds and lower royalty payments.
    Keywords: Licensing, public research, cognitive distance, entrepreneurship, Max Planck Society Length 24 pages
    JEL: L26 O32 O34
    Date: 2009–12
  3. By: Santiago-Rodriguez, Fernando (UNU-MERIT)
    Abstract: This paper investigates the influence of human resource management on learning from internal and external sources of knowledge. Learning for innovation is a key ingredient of catching-up processes. The analysis builds on survey data about pharmaceutical firms in Mexico. Results show that the influence of human resource management is contingent on the knowledge flows and innovation goals pursued by the firm. Practices such as training-- particularly from external partners; and remuneration for performance are conducive to learning for innovation.
    Keywords: Learning, R&D, human resource management, pharmaceuticals, Mexico
    JEL: O31 O32 O54
    Date: 2010
  4. By: Jade Vichyanond (Princeton University)
    Abstract: The paper provides a simple theoretical model for understanding how the difference in the level of intellectual property rights protection determines trade patterns. In particular, I examine how countries ?levels of patent rights protection affect exports in industries with different degrees of reliance on innovation. In contrast to most models of institutional comparative advantage, which predict that countries with superior institutions specialize in industries that are very dependent on institutions, I show that higher patent rights protection does not necessarily lead to specialization in industries that rely heavily on innovation. There may exist a threshold beyond which occurs a reversal of specialization patterns, a consequence of monopoly power inherent in intellectual property rights protection. I then use the model?s implications to assess empirically whether such predicted patterns hold in cross-country trade data and fi?nd evidence for general patterns of specialization as well as a reversal of such patterns among countries with high levels of patent rights protection.
    Keywords: intellectual property rights, trade patterns, patent rights
    JEL: L10 L12 K39 H32
    Date: 2009–11
  5. By: Gilberto M. Llanto; Gabrielle Roanne Laviña (Philippine Institute for Development Studies)
    Abstract: The paper reviews the innovations developed by some financial institutions to meet the challenges of microfinance and rural finance markets. Innovations could be new products and methodologies or refinements to existing practices that are created in response to market inefficiencies and changing demands of a target clientele. Essentially, innovations by financial institutions are not only a means to reach the large unserved poor households but also to provide more and better products and services that could contribute to increasing profitability of the institutions adopting them. The first type is innovations on the financial system which refers to changes in the structure of the financial sector particularly in the legal and regulatory framework. The second type of innovation is institutional innovation which deals with the changes in the structure, organization, and legal form of the institution. Another type of innovation is the process innovation. This refers to the introduction of new business processes leading to increased efficiency or market expansion (most often associated with technological progress). The last type of innovations is products innovation which refers to the introduction of new or modified products or services tailored to the needs of the rural borrowers.
    Keywords: innovation, rural finance, microfinance, institutional innovation, process innovation, products innovation, systemic level of innovation, scarcity of collateral, leasing
    JEL: G21 G22 O31
    Date: 2010–01
  6. By: Alessia Pisoni (Department of Economics, University of Insubria, Italy); Alberto Onetti (Department of Economics, University of Insubria, Italy); Luciano Fratocchi (Department of Mechanical Thermal and Managerial Engineering – University of L’Aquila); Marco Talaia (Business Research Department – University of Pavia)
    Abstract: This paper aims at analysing the main features of R&D activities carried out by the Italian biotech companies. The proposed contribution can be ascribed to the massive stream of research related to the reconfiguration of the value chain activities at the international level. Such a topic has become more and more actual because of both the markets globalisation and diffusion of networked architectures within internationalised companies (see, among others, Bartlett 1986; Bartlett and Goshal 1987, 1990; Bartlett, Doz and Hedlund 1990; Forsgren 1993; Forsgren and Holm 1993; Forsgren, Holm and Johanson 1991, 1992; Forsgren and Johanson 1992; Forsgren and Pedersen 1998; Hedlund 1979, 1980, 1986, 1994; Hedlund and Ridderstrale 1994; Hedlund and Rolander 1990; Lipparini and Fratocchi 1999). Within such a stream of research, we decided to focus the attention on the biotech industry, due to its specific features, that deeply influence both the strategic behaviour of firms and the economic environment of the countries where they operate.Keeping in mind the different types of biotech firms operating at global level, we have decided to focus our attention to a less heterogeneous population. In so doing, we narrowed the analysis to the red biotech segment (that is health care biotech companies which develop drugs and diagnostics), because of its absolute predominance both in Italy (73% of enterprises, 94% of total revenue and 86% of investments1) and at worldwide level (51% of EU firms and 60% of USA ones2). First of all we collected data for a sample of companies operating in the Italian red biotech industry. Particularly, we focused on R&D activities: we tried to quantify its extent, to understand where they are located (domestically or abroad) and the role played by alliances/cooperation with -in and -out the industry. More specifically, in order to reach the goals above described, attention was paid to the aptitude of the Italian country-system to attract investments from abroad. In doing so, we studied separately the Italian independent firms and MNCs. Analysing the peculiarities of how Italian independent firms and MNCs manage R&D activities, we tried to find out the existence of a different approach to R&D investments. The paper is structured in four main sections. In the first one, the main relevant features of biotech firms are discussed and the literature background presented. The second paragraph deals with sample and methodology description. In the third section, the main results regarding the analysis of R&D activities carried out by the red Italian biotech companies are presented. The conclusions complete the paper.
    Keywords: Biotech, localisation, R&D, collaborative R&D, MNCs.
    Date: 2010–01
  7. By: Cristiano Antonelli (Department of Economics, University of Turin - University of Turin); Jackie Krafft (GREDEG - Groupe de recherche en Droit Economie Gestion - Université de Nice Sophia-Antipolis); Francesco Quatraro (Department of Economics, University of Turin - University of Turin, GREDEG - Groupe de recherche en Droit Economie Gestion - Université de Nice Sophia-Antipolis)
    Abstract: The economics of recombinant knowledge is a promising field of investigation. New technological systems emerge when strong cores of complementary knowledge consolidate and feed an array of coherent applications and implementations. However, diminishing returns to recombination eventually emerge, and the rates of growth of technological systems gradually decline. Empirical evidence based on analysis of the co-occurrence of technological classes within two or more patent applications, allows the identification and measurement of the dynamics of knowledge recombination. Our analysis focus on patent applications to the European Patent Office, in the period 1981-2003, and provides empirical evidence on the emergence of the new technological system based upon information and communication technologies (ICTs) and their wide scope of applications as the result of a process of knowledge recombination. The empirical investigation confirms that the recombination process has been more effective in countries characterized by higher levels of coherence and specialization of their knowledge space. Countries better able to master the recombinant generation of new technological knowledge have experienced higher rates of increase of national multifactor productivity growth.
    Date: 2010
  8. By: Goedhuys, Micheline (UNU-MERIT); Srholec, Martin (TIK Centre, University of Oslo, and CERGE-EI, Prague)
    Abstract: National framework conditions mediate the effect of technological capabilities of firms on their productivity. Although this has been recognized in the literature for a long time, a quantitative test that explicitly considers this hypothesis has been lacking. Using a World Bank datasets of about 19,000 firms in 42 countries, most of which are developing, we estimate a multilevel production function with effects of firm's technological capabilities nested in the national framework conditions. Our results confirm that various facets of firm's technological capabilities and national economic, technological and institutional conditions influence total factor productivity of firms. Furthermore, we find that the effects of the national conditions and firm's technological capabilities are closely intertwined with each other. Adherence to international standards, formal training of workers and access to technology through foreign ownership make more difference for productivity of firms in less developed countries, while R&D capabilities on the contrary boost significantly more performance of firms in countries at the technological frontier. Different features of the national framework are shown to be responsible for this.
    Keywords: Productivity, innovation, technological capability, institutions, multilevel modeling
    JEL: C39 D24 O12 O14 O31 O43
    Date: 2010
  9. By: Delia S. Tantuico; Errol Wilfred Zshornack (Philippine Institute for Development Studies)
    Abstract: Intellectual property rights – copyrights, trademarks, patents, trade secrets, and related rights –have become increasingly important with the advent of increased international trade, global and knowledge-based economy and fast developing technology. A strong intellectual property rights regime is necessary in order to attract foreign trade and direct investments. For this reason, the protection of intellectual property rights has become an important negotiating item in all FTAs which the United States has entered into. In view of the proposed RP-US FTA negotiations, this paper seeks to determine whether the existing intellectual property regime in the Philippines provides adequate and sufficient legal protection of intellectual property rights. It also seeks to determine whether the administrative and judicial processes are adequate and speedy and acceptable in the enforcement and protection of said rights in the light of FTAs already entered into by the United States with other countries, in general, and with Singapore, in particular, which will be the benchmark for the RP-US FTA. Other relevant issues in the protection of intellectual property rights such as the annual review of ountries by the United States Trade Representative in relation to Special 301 of the U.S. Trade Law; piracy of optical media, including books and pharmaceuticals; and the Trade-Related Aspects of Intellectual Property Rights (TRIPS) are also discussed. The author proposes certain provisions to be added to the Intellectual Property Code; sustained, consistent and stricter implementation of intellectual property laws including more efforts at curbing piracy; and more importantly, a strong political will and a strong determination to strengthen intellectual property rights, as necessary to make the IPR regime up to par with U.S. and international
    Keywords: TRIPS, Intellectual Property Rights, Dispute Settlement, WTO, FTA, Market Access, Optical Media Act, E-commerce Law, Legal Protection, Investments, Capability Building
    JEL: O34 F13 F53
    Date: 2010–01

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