nep-ino New Economics Papers
on Innovation
Issue of 2010‒03‒28
twenty-six papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Product and process innovation and the decision to export : firm-level evidence for Belgium By VAN BEVEREN, Ilke; VANDENBUSSCHE, Hylke
  2. Determinants of R&D cooperation in Japanese high-tech start-ups By Okamuro, Hiroyuki; Kato, Masatoshi; Honjo, Yuji
  3. R&D Productivity and the Organization of Cluster Policy: An Empirical Evaluation of the Industrial Cluster Project in Japan By Junichi Nishimura; Hiroyuki Okamuro
  4. Endogenous network formation in patent contests and its role as a barrier to entry By MARINUCCI, Marco; VERGOTE, Wouter
  5. Proteccionism under R&D Policy: Innovation Rate and Welfare By Felipa de Mello-Sampayo; Sofia de Sousa-Vale; Francisco Camões; Orlando Gomes
  6. The Influence of University Research on Industrial Innovation By Jinyoung Kim; Sangjoon John Lee; Gerald Marschke
  7. Venture capital and innovation at the firm level By Pere Arqué Castells
  8. Which firms want PhDS? The effect of the university-industry relationship on the PhD labour market By José García-Quevedo; Francisco Mas-Verdú; Jose Polo-Otero
  9. Inventor Mobility and Knowledge Transmission in Nanotechnology By Jinyoung Kim; Sangjoon John Lee; Gerald Marschke
  10. Impact of University Scientists on Innovations in Nanotechnology By Jinyoung Kim; Sangjoon John Lee; Gerald Marschke
  11. Starting an R&D project under uncertainty By Dobbelaere, Sabien; Luttens, Roland Iwan; Peters, Bettina
  12. Patent Portfolio Management of Sequential Innovations By Jinyoung Kim
  13. The Strategic Effects of Parallel Trade~Market stealing and wage cutting~ By Colin Davis; Laixun Zhao
  14. The welfare cost of one-size-fit-all patent protection By Chu, Angus C.
  15. Cost-Benefit Analysis of the Community Patent By Jerôme Danguy; Bruno van Pottelsberghe de la Potterie
  16. EQUILIBRIUM PRINCIPAL-AGENT CONTRACTS Competition and R&D Incentives By Federico Etro; Michela Cella
  17. On the Determinants of the Reach of Innovation-related Collaboration in Small Firms By Mark Freel; Jeroen P.J. de Jong; Tyler Chamberlin
  18. Policy-driven EU Research Networks: Impact on the Greek S&T System By Aimilia Protogerou; Yannis Caloghirou; Evangelos Siokas
  19. Intellectual Property Right Protection in the Software Market By Arai, Yasuhiro
  20. Clean technology adoption and its influence on tradeable emission permit prices. By SANIN, Maria Eugenia; ZANAJ, Skerdilajda
  21. Discontinuous Innovation Capability Accumulation in Latecomer Natural Resource-processing Firms: Evidence from Brazil By Paulo N. Figueriredo
  22. The Two Faces of Collaboration: Impacts of University-Industry Relations on Public Research By Markus Perkmann; Kathryn Walsh
  23. Firm Productivity, Innovation and Financial Development By Geneviève Verdier; Erasmus Kersting; Era Dabla-Norris
  24. Is the US Outperforming Europe in University Technology Licensing? A New Perspective on the European Paradox By Annamaria Conti; Patrick Gaulé
  25. Non-Compete Covenants: Incentives to Innovate or Impediments to Growth By Sampsa Samila; Olav Sorenson
  26. Fuel on the Invention Funnel: Technology Licensing-in, Antecedents and Invention By Maria Isabella Leone; Toke Reichstein; Paolo Boccardelli; Mats Magnusson

  1. By: VAN BEVEREN, Ilke (Katholieke Universiteit Leuven, LICOS and Lessuis, Antwerpen, Belgium); VANDENBUSSCHE, Hylke (UniversitŽ catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium and KULeuven, LICOS, B- 3000 Leuven, Belgium)
    Abstract: Using data from the Community Innovation Survey for Belgium in two consecutive periods, this paper explores the relationship between firm-level innovation activities and the propensity to start exporting. To measure innovation, we include indicators of both innovative effort (R&D activities) as well as innovative output (product and process innovation). Our results suggest that the combination of product and process innovation, rather than either of the two in isolation, increases a firmÕs probability to enter the export market. After controlling for potential endogeneity of the innovation activities, only firms with a sufficiently high probability to start exporting engage in product and process innovation prior to their entry on the export market, pointing to the importance of self-selection into innovation
    Keywords: exports, product innovation, process innovation, self-selection, firm heterogeneity
    JEL: D24 F14 L25 O31 O33
    Date: 2009–12–01
  2. By: Okamuro, Hiroyuki; Kato, Masatoshi; Honjo, Yuji
    Abstract: This paper explores the determinants of R&D cooperation in Japanese hightech start-ups. Using a sample from an original survey conducted in 2008, we examine the effects of founder-, firm-, and industry-specific characteristics on R&D cooperation by the type of partners. Our findings indicate that founder-specific characteristics, such as educational background, academic affiliation, and prior innovation output, are fairly important in determining R&D cooperation with universities and public research institutes. We also provide evidence that founders' work experience and prior innovation output have positive and significant effects on R&D cooperation with business partners. With respect to firm-specific characteristics, it is found that firms investing more in R&D tend to engage in R&D cooperation, regardless of the type of partners. Furthermore, it is found that independent firms are less likely to cooperate on R&D with universities and public research institutes, than subsidiaries and affiliated firms.
    Keywords: Start-up, R&D cooperation, Founder, University, Business partner
    JEL: L14 M13 O32
    Date: 2009–11
  3. By: Junichi Nishimura; Hiroyuki Okamuro
    Abstract: Industrial clusters have attracted increasing attention as important locations of innovation. Therefore, several countries have started promotion policies for industrial clusters. However, there are few empirical studies on cluster policies. This paper examines the effects of the “Industrial Cluster Project” (ICP) in Japan on the R&D productivity of participants, using a unique dataset of 229 small firms, and discusses the conditions necessary for the effective organization of cluster policies. Different from former policy approaches, the ICP aims at building collaborative networks between universities and industries and supports the autonomous development of existing regional industries without direct intervention in the clustering process. Thus far, the ICP is similar to indirect support systems adopted by successful European clusters. Our estimation results suggest that participation in the cluster project alone does not affect R&D productivity. Moreover, research collaboration with a partner in the same cluster region decreases R&D productivity both in terms of the quantity and quality of patents. Therefore, in order to improve the R&D efficiency of local firms, it is also important to construct wide-range collaborative networks within and beyond the clusters, although most clusters focus on the network at a narrowly defined local level. However, cluster participants apply for more patents than others without reducing patent quality when they collaborate with national universities in the same cluster region.
    Keywords: Industrial cluster; University-industry partnership; Small and medium enterprise; R&D; Patent
    JEL: O23 O32 O38 R38
    Date: 2010
  4. By: MARINUCCI, Marco (UniversitŽ catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium); VERGOTE, Wouter (FacultŽs universitaires Saint-Louis, CEREC, B-1000 Bruxelles, Belgium and UniversitŽ catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium)
    Abstract: In a setting of R&D co-opetition we study, by using an all-pay auction approach, how collaboration affects strategic decisions during a patent contest, and how the latter influences the possible collaboration network structures the firms can hope to form. The all pay auction approach allows us to 1) endogenize both network formation and R&D intensities and 2) take heterogeneous and private valuations for patents into account. We find that, different from previous literature, the complete network is not always the only pairwise stable network, even and especially if the benefits from cooperating are important. Interestingly, the other possible stable networks all have the realistic property that some firms decide not to participate in the contest. Thus, weak cooperation through network formation can serve as a barrier to entry on the market for innovation. We further show that there need not be any network that survives a well known refinement of pairwise stability, strong stability, which imposes networks to be immune to coalitional deviations.
    Keywords: patent game, networks, R&D cooperation, all-pay auction
    JEL: L14 L24 O32
    Date: 2009–11–01
  5. By: Felipa de Mello-Sampayo (ISCTE - Lisbon University Institute - Department of Economics and UNIDE-ERC); Sofia de Sousa-Vale (ISCTE - Lisbon University Institute - Department of Economics and UNIDE-ERC); Francisco Camões (ISCTE - Lisbon University Institute - Department of Economics and UNIDE-ERC); Orlando Gomes (Instituto Politécnico de Lisboa - Escola Superior de Comunicação Social and UNIDE-ERC)
    Abstract: The pressure from national lobbies may lead governments to shift from an optimal into a non-optimal innovation policy. This paper examines the growth and welfare effects of optimal and non-optimal innovation policies. The non-optimal policy corresponds to a subsidy for national innovators that is equivalent to an optimal policy of incentives (tax cuts) to foreign investors. Since we are assessing what can nationals do with the support that could be oriented to foreign firms, we are measuring what the economy loses for not supporting foreign firms. We find welfare loss when supporting national R&D instead of foreign R&D. We conclude that the same support given to innovation can produce strikingly different outcomes depending on who receives the support.
    Keywords: Endogenous Growth, Foreign Direct Investment, R&D Policy
    JEL: F21 H21 O40
    Date: 2010–02
  6. By: Jinyoung Kim (Korea University); Sangjoon John Lee (Alfred University); Gerald Marschke (University at Albany-SUNY, NBER and IZA)
    Abstract: We use U.S. patent records to examine the role of research personnel as a pathway for the diffusion of ideas from university to industry. Appearing on a patent assigned to a university is evidence that an ineventor has been exposed to university research, either directly as a university researcher or through some form of collaboration with university researchers. Having an advanced degree is another indicator of an inventor's exposure to university research. We find a steady increase in industry's use of inventors with university research experience over the period 1985-97, economy wide and in the pharmaceutical and semiconductor industries in particular. We interpret this as evidence of growth in the influence of university research on industrial innovation. Moreover, during this period we find that firms with large research operations in both industries, and young and highly capitalized firms in the pharmaceutical industry, are disproportionately active in the diffusion of ideas from the university sector. Finally, we find that the patents of firms that employ inventors with university research experience are more likely to cite university patents as prior art, suggesting that this experience better enables firms to tap academic research.
    Keywords: Patents; Innovation; Technology spillovers; University research
    JEL: J62 O31 O33
    Date: 2010
  7. By: Pere Arqué Castells (Universitat de Barcelona & IEB)
    Abstract: This paper studies the relationship between venture capital (VC) and innovation using a self-collected dataset containing 119 innovative, VC-funded firms and 164,486 controls that operate in Spain. Probit model estimates indicate that firms that have applied for at least one patent are significantly more likely to obtain VC investments. However, when implementing a matching approach to correct for selectivity, no evidence is found of a significant impact of VC on firms’ patenting activity. Rather, evidence is found of a positive effect of VC on the sales growth of funded firms. These results suggest that, rather than having an impact on innovation activities, venture capitalists (VCs) focus on the commercialization of existing products. A finer breakdown by ownership and investment stage also provides evidence that private VCs and early stage investments are notably more effective at stimulating sales than public VCs and late stage investments respectively.
    Keywords: Venture capital, innovation, patents, matching estimator
    JEL: G24 O32
    Date: 2010
  8. By: José García-Quevedo (University of Barcelona & IEB); Francisco Mas-Verdú (Universidad Politécnica de Valencia & IEB); Jose Polo-Otero (University of Barcelona & CYD Foundation & IEB)
    Abstract: PhD graduates hold the highest education degree, are trained to conduct research and can be considered a key element in the creation, commercialization and diffusion of innovations. The impact of PhDs on innovation and economic development takes place through several channels such as the accumulation of scientific capital stock, the enhancement of technology transfers and the promotion of cooperation relationships in innovation processes. Although the placement of PhDs in industry provides a very important mechanism for transmitting knowledge from universities to firms, information about the characteristics of the firms that employ PhDs is very scarce. The goal of this paper is to improve understanding of the determinants of the demand for PhDs in the private sector. Three main potential determinants of the demand for PhDs are considered: cooperation between firms and universities, R&D activities of firms and several characteristics of firms, size, sector, productivity and age. The results from the econometric analysis show that cooperation between firms and universities encourages firms to recruit PhDs and point to the existence of accumulative effects in the hiring of PhD graduates.
    Keywords: PhD, university, R&D, technology transfer
    JEL: O32 J24 I23
    Date: 2010
  9. By: Jinyoung Kim (Korea University); Sangjoon John Lee (Alfred University); Gerald Marschke (University at Albany-SUNY, NBER and IZA)
    Abstract: Using U.S. patent records in nanotechnoloy, we study the relationship between inventor mobility among firms and knowledge diffusion. We find evidence consistent with a story that, in one important nanotechnology subfield, when inventors move among firms they spread knowledge. In particular, we find that if we consider any two patents in the "Chemicals, misc." subclass, A and B, where A and B are assigned to different firms and where A is granted after B, patent A is more likely to cite patent B if the patent A firm employs an inventor who earlier worked for the patent B firm.
    Keywords: Nanotechnology, Patents; Innovations; Knowledge spillovers;
    JEL: J62 O31 O33
    Date: 2010
  10. By: Jinyoung Kim (Korea University); Sangjoon John Lee (Alfred University); Gerald Marschke (University at Albany and NBER)
    Abstract: Using U.S. patent records in nanotechnoloy, we study the impact of university research on industry innovations with the premise that knowledge is diffused from universities to industry via personnel with university research experience. Appearing on a patent assigned to a university is evidence that an inventor has been exposed to university research, either directly as a university researcher or through some from of collaboration with university researchers. Over the period 1985-97, we find a steady increase in industry's employment of inventors with university research experience. In the 1990s we find the productivity (in terms of patenting rates and patent quality) of inventors with university backgrounds begins to exceed the productivity of the inventors without such experience. We also find that the share of industry patents in nanotechnology that cite university-assigned patents almost doubles during the period and inventors with university experience cite mostly university patents not invented by them, implying that they are instrumental in transferring general knowledge created throughout the university community.
    Keywords: Nanotechnology, Patents; Innovations; Knowledge spillovers; University research
    JEL: J62 O31 O33
    Date: 2010
  11. By: Dobbelaere, Sabien; Luttens, Roland Iwan; Peters, Bettina
    Keywords: investment under uncertainty, R&D, demand uncertainty, technical uncertainty, entry threat
    JEL: D21 D81 L12 O31
    Date: 2009–05–01
  12. By: Jinyoung Kim (Korea University)
    Abstract: This paper develops a model for understanding a firm's decisions regarding the maintenance (renewal) and patenting of sequential innovations and studies how these decisions are affected by the model's parameters, including maintenance fees and filing fees. The model demonstrates that the two prices exert negative effects on renewal and patenting, respectively (i.e. adverse own price effects). The model also offers a discriminating testable hypothesis, predicted on the cross-price effects, to identify complementarity or substitutability across sequential innovations. Our regression results show that the probability of patent renewal and maintenance fees are correlated negatively and that the patent propensity and application fees are correlated negatively. We also demonstrate that higher application fees are associated with lower probability of patent renewal, which corroborates the case of complementarity in sequential innovations.
    Keywords: Renewal, Patenting, Sequential innovations, Patent portfolio, Patent maintenance fees, Application filing fees
    JEL: J63 O32 O34
    Date: 2010
  13. By: Colin Davis (Faculty of Economics, Kobe University); Laixun Zhao (Research Institute for Economics and Business Administration, Kobe University)
    Abstract: This paper examines researchers' choices between either collaborating with venture capitalists (Regime C) or going independently (Regime I), and how their interaction affects long-run endogenous growth, in an economy characterized by incomplete contracts and financial market imperfections. Both research and production require labor and physical capital. We find that an improvement in financial regulation leads to a higher rate of innovation under Regime I. In contrast, an improvement in R&D incentives for researchers in Regime C can coincide with either an increase or a decrease in the long-run rate of innovation, due to the holdup problem in post bargaining over created value. We also rank the growth rates in the two regimes under different contractual and financial environments. Finally, we find that conflicts can arise when entrepreneurs choose one regime based on investment incentives but the other regime provides a higher growth rate.
    Keywords: Firm-asymmetry; Endogenous Growth, R&D, Incomplete Contracts, Financial Imperfection
    JEL: O16
    Date: 2010–03
  14. By: Chu, Angus C.
    Abstract: To analyze the welfare gain from allowing for differentiated patent protection across sectors, this study develops a two-sector quality-ladder growth model in which patent breadth is a policy variable and derives the optimal patent breadth under two policy regimes. We show that (i) the optimal uniform patent breadth is a weighted average of the optimal sector-specific patent breadth, and (ii) the optimal sector-specific patent breadth is larger in the sector that has a larger market size and more technological opportunities. To derive the optimal policy, we allow for an arbitrary path of patent breadth and derive the optimal path by solving a Stackelberg differential game. We find that the optimal path of patent breadth under each regime is stationary, time-consistent and subgame perfect. Finally, we perform a numerical investigation and find that even a moderate degree of asymmetry across sectors can generate a significant welfare cost of uniform patent protection.
    Keywords: economic growth; R&D; uniform patent protection; time-consistent patent policy
    JEL: O34 O31 O40
    Date: 2009–09
  15. By: Jerôme Danguy; Bruno van Pottelsberghe de la Potterie
    Abstract: For more than 40 years, governments and professional associations have acted, voted or lobbied against the implementation of the Community Patent (COMPAT). The econometric results and simulations presented in this paper suggest that, thanks to its attractiveness in terms of market size and a sound renewal fee structure, the COMPAT would drastically reduce the relative patenting costs for applicants while generating more income for the European Patent Office and most National Patent Offices. The loss of economic rents (€400 million would be lost by patent attorneys, translators and lawyers) and the drop of controlling power by national patent offices elucidate further the observed resistance to the Community Patent.
    Keywords: Patent systems, community patent, patenting cost, renewal fees, maintenance rate.
    JEL: O34 O38 P14
    Date: 2010
  16. By: Federico Etro; Michela Cella
    Abstract: We analyze competition between firms engaged in R&D activities in the choice of incentive contracts for managers with hidden productivities. The equilibrium screening contracts require extra effort/investment from the most productive managers compared to the first best contracts: under additional assumptions on the hazard rate of the distribution of types we obtain no- distortion in the middle rather than at the top. Moreover, the equilibrium contracts are characterized by effort differentials between (any) two types that are always increasing with the number of firms, suggesting a positive re- lation between competition and high-powered incentives. An inverted-U curve between competition and absolute investments can emerge for the most pro- ductive managers, especially when entry is endogenous. These results persist when contracts are not observable, when they include quantity precommit- ments, and when products are imperfect substitutes.
    Keywords: Principal-agent contracts, asymmetric information, endogenous market structures
    JEL: D82 D L13
    Date: 2010–03
  17. By: Mark Freel; Jeroen P.J. de Jong; Tyler Chamberlin
    Abstract: This paper takes as its starting point an item of relatively recent academic orthodoxy: the insistence that ‘…interactive learning and collective entrepreneurship are fundamental to the process of innovation’ (Lundvall, 1992, p. 9). From this, academics have frequently taken “interactive” to imply “inter-organisational” and, whilst one might be concerned by this too casual conflation, there is a growing consensus that firms’ embeddedness in collaborative networks matters for their innovative performance (Gilsing et al., 2008).
    Date: 2010
  18. By: Aimilia Protogerou; Yannis Caloghirou; Evangelos Siokas
    Abstract: This paper focuses on the impact of EU-funded collaborative research networks at a national level using a combined method approach, social network analysis and in-depth case study work. First, it examines the participation intensity and role of the Greek organizations in the research network established through the Information Society Technologies priority of the European Community’s 4th, 5th and 6th Framework Programmes. Furthermore, it attempts to assess the impact of the IST research network on the diffusion and deployment of innovation in Greece. Some interesting results with significant policy implications arise: a) Greece exhibits high participation intensity in the EU-funded IST network, b) there are Greek organizations that have assumed an influential role in the network through time, in addition, they are also critical to the connectivity of the more peripheral Greek actors to the IST network, c) the value of the network, lies for the most part in indirect or ‘behavioural’ effects than in immediate project outputs measured in terms of commercialized products or services, d) however, while the knowledge obtained through the network assists organizations to gain better understanding of the market and identify future deployment opportunities this is not always possible due to the lack of sufficient infrastructure and national policies to support market introduction.
    Date: 2010
  19. By: Arai, Yasuhiro
    Abstract: We discuss the software patent should be granted or not. There exist two types of coping in the software market; reverse engineering and software duplication. Software patent can prevent both types of copies since a patent protects an idea. If the software is not protected by a patent, software producer cannot prevent reverse engineering. However, the producer can prevent the software duplication by a copyright. It is not clear the software patent is socially desirable when we consider these two types of coping. We obtain the following results. First, the number of copy users under the patent protection is greater than that under the copyright protection. Second, the government can increase social welfare by applying copyright protection when the new technology is sufficiently innovative.
    Keywords: Copyright Protection, Intellectual Property Right, Software
    JEL: D42 K39 L86
    Date: 2010–01
  20. By: SANIN, Maria Eugenia; ZANAJ, Skerdilajda (UniversitŽ catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))
    Keywords: environmental innovation, tradable emission permits, Cournot interaction
    JEL: D43 L13 Q55
    Date: 2009–04–01
  21. By: Paulo N. Figueriredo
    Abstract: Most of the studies that describe the building of innovation capability in emerging and developing economies have focused on the ways in which latecomer firms develop continuously towards advanced capability levels along existing technological trajectories, particularly for the assembled products industries, especially in Asia. A slightly different approach is adopted herein by focusing on pathways of discontinuous capability building of firms in natural resource-processing industries. By drawing on evidence from a variety of case studies taken from 13 forestry, pulp, and paper firms in Brazil in the period 1950-2007, it was found that: (1) in contrast with the majority of case studies reported in the literature, the pathways followed by firms in their accumulation of innovation capability involved a qualitative departure from the established technological trajectory at an early stage in the development of their capability; (2) the pathways of firms along the new technological trajectories were nevertheless characterised by a high degree of variability (from world leader to laggard) in terms of the levels and speeds of the accumulation of innovation capability; (3) firms that have attained progressively higher levels of innovative performance have more rapidly developed a combination of internal and external research-based arrangements in order to undertake increasingly complex, but firm-centred innovation efforts. This paper sheds some light on some of the discussions that relate to the role of natural resources in the patterns of industrial progress and growth in those countries endowed with particular natural resource-based industries. It also provides a methodological contribution to the study of the long-term innovation strategies that make use of the dynamics of capability building, especially within natural resource-processing industries.
    Keywords: Technological trajectory; innovation capability; disruptive innovation; latecomer firms; natural resources; multiple case-study; Brazil
    JEL: O34
    Date: 2010
  22. By: Markus Perkmann; Kathryn Walsh
    Abstract: We analyze the impact of university-industry relationships on public research. Our inductive study of university-industry collaboration in engineering suggests that basic projects are more likely to yield academically valuable knowledge than applied projects. However, applied projects show higher degrees of partner interdependence and therefore enable exploratory learning by academics, leading to new ideas and projects. This result holds especially for research-oriented academics working in the ‘sciences of the artificial’ and engaging in multiple relationships with industry. Our learning-centred interpretation qualifies the notion of entrepreneurial science as a driver of applied university-industry collaboration. We conclude with implications for science and technology policy.
    Keywords: University industry relations; Collaborative research; Contract research; Academic consulting; Science technology links; Engineering
    Date: 2010
  23. By: Geneviève Verdier; Erasmus Kersting; Era Dabla-Norris
    Abstract: How do firm-specific actions-in particular, innovation-affect firm productivity? And what is the role of the financial sector in facilitating higher productivity? Using a rich firm-level dataset, we find that innovation is crucial for firm performance as it directly and measurably increases productivity. Moreover, its effects on productivity are mediated through the financial sector; firms reap the maximum benefits from innovation in countries with well-developed financial sectors. This effect is particularly important for firms in high-tech sectors, which typically have higher external financing needs.
    Keywords: Access to capital markets , Capital , Cross country analysis , Development , Economic growth , Financial sector , Industrial production , Labor productivity , Private sector , Productivity ,
    Date: 2010–02–26
  24. By: Annamaria Conti; Patrick Gaulé
    Abstract: Europe is perceived to be lagging behind the US in converting its academic results into economic outcomes. Using new survey data on European and US Technology Transfer Offices (TTOs), we find that differences in academic research, TTO staff and experience explain to a great extent the gap between the US and Europe in terms of the number of license agreements concluded. However, these factors account for only part of the difference in license income. We relate the difference in licensing income to differences in the organization and staffing of TTOs. Our analysis reveals that US TTOs do not attach more importance to generating revenue as an objective than their European counterparts. However, they employ more staff with experience in industry which explains some of the remaining differential in license income performance.
    Date: 2010
  25. By: Sampsa Samila; Olav Sorenson
    Abstract: We find that the enforcement of non-compete clauses significantly impedes entrepreneurship and employment growth. Based on a panel of metropolitan areas in the United States from 1993 to 2002, our results indicate that, relative to states that enforce non-compete covenants, an increase in the local supply of venture capital in states that restrict the scope of these agreements has significantly stronger positive effects on (i) the number of patents, (ii) the number of firm starts, and (iii) employment. We address potential endogeneity issues in the supply of venture capital by using endowment returns as an instrumental variable. Our results point to a strong interaction between financial intermediation and the legal regime in promoting entrepreneurship and economic growth.
    JEL: G24 K31 L26 O43
    Date: 2010
  26. By: Maria Isabella Leone; Toke Reichstein; Paolo Boccardelli; Mats Magnusson
    Abstract: In this paper, we examine the impact of technology licensing-in on firm invention performance. Studying a sample of 266 licensees and matched non-licensees using a two-part model specification, we find that licensees are more likely to introduce inventions than their non-licensee counterparts. This holds both if we consider invention in general, and invention in the licensed technological class only. We also show that familiarity with the licensed technology and technological specialization drives licensees to pursue a narrow invention strategy primarily focusing on the technological class specified in the license agreement.
    Keywords: Licensing-in, Invention, Dynamic Capabilities, Learning Opportunities, Technological familiarity, Technological specialization
    Date: 2010

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