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on Innovation |
| By: | Jeroen de Jong; Mark Freel |
| Abstract: | This paper explores the geographical distance of innovation collaborations in high tech small firms. We test if absorptive capacity is a key determinant. Drawing on survey data from a sample of 316 Dutch high-tech small firms, engaging in 1.245 collaborations, we find most partners to be ‘local’. However, controlling for a variety of potential influences, higher R&D expenditure is positively related to collaboration with more distant organisations. |
| Date: | 2010–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:eim:papers:h201008&r=ino |
| By: | Helene LATZER (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)) |
| Abstract: | Our paper presents a new rationale for innovation by incumbents. We show that the possibility to price-discriminate between consumers having different levels of wealth is a sufficient incentive for the industry leader to overcome the Arrow (1962) effect and keep investing in R&D, even in the absence of any incumbent advantage in the R&D field. We model an economy composed of two distinct groups of consumers, differing in their wealth endowment and subject to non-homothetic preferences, obtained through unit consumption of the quality good. We demonstrate that in such a framework, there exists a unique steady state equilibrium with positive innovation rates of both incumbents and challengers. Beyond its novelty, this result then also allows us to analyze the effect of the extent of income inequalities on both the challenger and incumbent innovation rates, and by extension on the economic growth rate. We demonstrate that a higher share of the population being poor is detrimental to the rate of economic growth, while a redistribution of wealth from rich to poor consumers increases the challenger innovation rate and has ambiguous effects on the incumbentÕs investment in R&D. |
| Keywords: | Growth, Innovation, Income inequalities. |
| JEL: | O3 O4 F4 |
| Date: | 2009–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2010002&r=ino |
| By: | Reiner, Christian (University of Salzburg) |
| Abstract: | This article focuses on the role of Technology Transfer Offices (TTOs) in regional development in three Austrian regions that represent different types of regional economies. TTOs can be defined as “bridging institutions” between academia and business. The value added by this approach emerges due to empirical results demonstrating that the variety of TTO functions and their respective spatial-profile of activities depend heavily on the regional context. Regional economic structure and regional policy systematically shape the spatial profile of TTO activities. The distinction between active and passive TTOs emerged as an important one regarding their potential regional economic development impact. While passive TTOs merely facilitate already existing contacts of the academic staff, active TTOs generate new university-industry linkages. These additionally created contacts are heavily biased towards the regional level. Intellectual property rights (IPR)-related TTO activities show a rather weak regional impact. This might prove problematic for policy makers that foster the patent-oriented commercialization of knowledge as a means to intensify knowledge spillovers from the universities to regional or national firms. |
| Keywords: | Universities; Technology transfer offices; regional innovation systems; regional policy; Austria |
| JEL: | I23 I28 O33 O34 R11 R58 |
| Date: | 2010–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:sbgwpe:2010_005&r=ino |
| By: | Ernest Miguelez (Faculty of Economics, University of Barcelona); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | TWe investigate the importance of the labour mobility of inventors, as well as the scale, extent and density of their collaborative research networks, for regional innovation outcomes. To do so, we apply a knowledge production function framework at the regional level and include inventors’ networks and their labour mobility as regressors. Our empirical approach takes full account of spatial interactions by estimating a spatial lag model together, where necessary, with a spatial error model. In addition, standard errors are calculated using spatial heteroskedasticity and autocorrelation consistent estimators to ensure their robustness in the presence of spatial error autocorrelation and heteroskedasticity of unknown form. Our results point to the existence of a robust positive correlation between intra-regional labour mobility and regional innovation, whilst the relationship with networks is less clear. However, networking across regions positively correlates with a region’s innovation intensity. |
| Keywords: | Speed Limits; inventors’ mobility, networks of co-inventors, knowledge production function, spatial econometrics, European regions |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201001&r=ino |
| By: | Bala Subrahmanya, M. H.; Mathirajan, M.; Krishnaswamy, K. N. |
| Abstract: | This paper probes the drivers, dimensions, achievements, and outcomes of technological innovations carried out by SMEs in the auto components, electronics, and machine tool sectors of Bangalore in India. Further, it ascertains the growth rates of innovative SMEs vis-à-vis non-innovative SMEs in terms of sales turnover, employment, and investment. Thereafter, it probes the relationship between innovation and growth of SMEs by (i) estimating a correlation between innovation sales and sales growth, (ii) calculating innovation sales for high, medium, and low growth innovative SMEs and doing a aggregate one-way ANOVA, and (iii) ascertaining the influence of innovation sales, along with investment growth and employment growth on gross value-added growth by means of multiple regression analysis. The paper brings out substantial evidence to argue that innovations of SMEs contributed to their growth. |
| Keywords: | Technological innovations, sales growth, auto components, electronics, machine tools, Bangalore |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2010-03&r=ino |
| By: | Stelios Michalopoulos; Luc Lueven; Ross Levine |
| Abstract: | We model technological and financial innovation as reflecting the decisions of profit maximizing agents and explore the implications for economic growth. We start with a Schumpeterian endogenous growth model where entrepreneurs earn monopoly profits by inventing better goods and financiers arise to screen entrepeneurs. A novel feature of the model is that financiers also engage in the costly, risky, and potentially profitable process of innovation: Financiers can invent more effective processes for screening entrepreneurs. Every existing screening process, however, becomes less effective as technology advances. Consequently, technological innovation and, thus, economic growth stop unless financiers continually innovate. Historical observations and empirical evidence are more consistent with this dynamic model of financial innovation and endogenous growth than with existing models of financial development and growth. |
| Keywords: | Invention, Economic Growth, Corporate Finance, Financial Institutions, Technological Change, Entrepreneurship. |
| JEL: | G0 O31 O4 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:tuf:tuftec:0746&r=ino |
| By: | Serena Novero (Ceris - Institute for Economic Research on Firms and Growth, Moncalieri (Turin), Italy) |
| Abstract: | The aim of this work is to investigate the probability of success or failure of public interventions, made to support the development of some Italian firms. The great number of small and medium-size enterprises, placed in the Canavese area, north of Turin, Italy, has suffered, in the nineties, of a gap in technological innovation in their production. The Consortium for the Canavese Technological District (CCTD), a public local association established in 1993 specifically to support the firms of the area, has supplied them with some technological, innovative services, sustaining their growth. More exactly, some research centres, named Centres of Competence, were created, with the pre-existing structures of the Polytechnic of Turin and of the firm RTM (placed in Vico Canavese, Province of Turin): their targets were to supply innovative services to the local firms and to place technical machineries at the disposal of the local units, to support their innovation and competitiveness. The present research analyzes a central point: which has been the impact of these services? Which is the probability that a public o private intervention to innovate has success and brings economic growth to the involved firms? This objective is achieved with a Probit Model, built on a panel of 103 firms, that covers a 6-year range (from 1999 to 2004) and contains their balance-sheets data and the technical information regarding their collaborations with the Centres; the results highlight the role of a solid patrimonial stability, of the choice of the right innovations to apply to the production processes as well as the importance of a high previous technological status of the involved enterprises. |
| Keywords: | Innovation probability, Public interventions, Firms growth, Qualitative choice models |
| JEL: | C35 D92 H71 O31 |
| Date: | 2008–12 |
| URL: | http://d.repec.org/n?u=RePEc:csc:cerisp:200811&r=ino |
| By: | Block, Joern; Sandner, Philipp; De Vries, Geertjan |
| Abstract: | This study analyzes the effect of the 2008 financial crisis on the venture capital market. We show that the crisis is associated with a decrease in the number of initial funding rounds as well as with a decrease in the amount of funds raised in later funding rounds. The effects of the crisis differed across industries and were stronger in the US than in other countries. We suggest that the crisis has led to a severe ‘funding gap’ in the financing of technological development and innovation |
| Keywords: | Venture capital; financial crisis; innovation finance; entrepreneurial finance; recession |
| JEL: | M13 G24 O3 |
| Date: | 2010–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20287&r=ino |
| By: | Xiaoji Lin |
| Abstract: | We study technology adoption, risk and expected returns using a dynamic equilibrium model with production. The central insight is that optimal technology adoption is an important driving force of the cross section of stock returns. The model predicts that technology adopting firms are less risky than non-adopting firms. Intuitively, by preventing firms from freely upgrading existing capital to the technology frontier, costly technology adoption reduces the flexibility of firms in smoothing dividends, and hence generates the risk dispersion between technology adopting firms and non-adopting firms. The model explains qualitatively and in many cases quantitatively empirical regularities: (i) The positive relation between firm age and stock returns; (ii) firms with high investment on average are younger and earn lower returns than firms with low investment; and (iii) growth firms on average are younger than value firms, and the value premium is increasing in firm age. |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:fmg:fmgdps:dp645&r=ino |