nep-ino New Economics Papers
on Innovation
Issue of 2010‒05‒15
six papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. The determinants of technology transfer efficiency and the role of innovation policies: a survey By Maria D.M. Oliveira; Aurora A.C. Teixeira
  2. Regional economic divide and the role of technological spillovers in Italy. Evidence from microdata By Aiello, Francesco; Cardamone, Paola
  3. Innovation, firm dynamics, and international trade By Andrew Atkeson; Ariel Burstein
  4. Corporate Liquidity Management and Future Investment Expenditures By Christopher F Baum; Mustafa Caglayan; Oleksandr Talavera
  5. A model-based analysis of the impact of Cohesion Policy expenditure 2000-06: simulations with the QUEST III endogenous R&D model By Janos Varga; Jan in 't Veld
  6. Scarcity, regulation and endogenous technical progress By Raouf BOUCEKKINE; Natali HRITONENKO; Yuri YATSENKO

  1. By: Maria D.M. Oliveira (UPIN, Universidade do Porto); Aurora A.C. Teixeira (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC Porto; OBEGEF)
    Abstract: The diversity found in the various Technology Transfer Offices (TTOs), besides being a consequence of the capacities and motives of the different stakeholders involved (public research organisations, industry, consulting firms and public authorities) also reflects the specificities of public incentives or policies and their differing degrees of commitment to technology transfer. Notwithstanding the fact that the literature on technology transfer is voluminous, few studies (up to the present date) have investigated the role of innovation policy on TTOs efficiency and the instruments available for governments to improve technology transfer from publicly funded research. The present paper surveys the literature on the determinants of TTOs efficiency, highlighting in particular the role of innovation policy. Additionally, evidence within the context of the European Union on innovation policies for technology transfer improvement is detailed.
    Keywords: Technology transfer, innovation policies, technology transfer efficiency
    JEL: O31 O34 O38
    Date: 2010–05
  2. By: Aiello, Francesco; Cardamone, Paola
    Abstract: This paper assesses the impact of R&D efforts on production in the North and Centre-South of Italy by using a panel of 1203 manufacturing firms over the period 1998-2003. The estimations are based on a nonlinear translog production function augmented by a measure of R&D spillovers. This measure combines the geographical distance between firms, the technological similarity within each pair of firms and the technical efficiency of each firm. The estimation method takes into account the endogeneity of regressors and the potential sample selection issue regarding firms’ decision to invest in R&D. Results show that the external stock of technology exerts a higher impact in the Centre-South of Italy. Finally, it emerges that R&D capital and R&D spillovers are substitutes for Northern firms and complements for Centre-Southern firms.
    Keywords: R&D spillovers; Italian economic divide; translog production function; technical efficiency
    JEL: C23 O33 L29
    Date: 2010–05–10
  3. By: Andrew Atkeson; Ariel Burstein
    Abstract: We present a general equilibrium model of the response of firms' decisions to operate, innovate, and engage in international trade to a change in the marginal cost of international trade. We find that, although a change in trade costs can have a substantial impact on heterogeneous firms' exit, export, and process innovation decisions, the impact of changes in these decisions on welfare is largely offset by the response of product innovation. Our results suggest that microeconomic evidence on firms' responses to changes in international trade costs may not be informative about the implications of changes in these trade costs for aggregate welfare.
    Date: 2010
  4. By: Christopher F Baum (Boston College; DIW Berlin); Mustafa Caglayan (University of Sheffield); Oleksandr Talavera (School of Economics, University of East Anglia)
    Abstract: This paper empirically examines whether additional future fixed capital and R&D investment expenditures induce firms to accumulate cash reserves while considering the role of market imperfections. Implementing a dynamic framework on a panel of US, UK and German companies, we find that firms make larger additions to cash holdings when they plan additional future R&D rather than fixed capital investment expenditures. This behavior is particularly prevalent among small and non-dividend paying firms that are heavily involved in R&D activities. We also show that the cash flow sensitivity of cash is substantially higher for financially constrained firms than for their unconstrained counterparts in the US and the UK, but only marginally higher in Germany.
    Keywords: cash holdings, fixed investment, R&D investment, dynamic panel regressions
    JEL: G21 G32
    Date: 2010–04–21
  5. By: Janos Varga; Jan in 't Veld
    Abstract: More than a third of the EU budget is devoted to Cohesion Policy with the objective to foster economic and social cohesion in the European Union. Large-scale fiscal transfers are used to support investment in infrastructure, R&D and human capital. This paper provides a model-based assessment of the potential macro-economic impact of these fiscal transfers using a DSGE model with semi-endogenous growth (Jones, 1995) and endogenous human capital accumulation. The simulations show the potential benefits of Structural Funds with significant output gains in the long run due to sizeable productivity improvements.
    Keywords: A Model-based Analysis of the Impact of Cohesion Policy Expenditure 2000-06, Cohesion Policy, endogenous growth, dynamic general equilibrium modelling, Varga, in 't Veld,
    JEL: C53 E62 O30 O41
    Date: 2009–10
  6. By: Raouf BOUCEKKINE (UNIVERSITE CATHOLIQUE DE LOUVAIN, Department of Economics and Core, Univerity of Glasgow, Department of Economics); Natali HRITONENKO (Prairie View A&M University, USA); Yuri YATSENKO (Houston Baptist University, USA)
    Abstract: This paper studies to which extent a firm using a scarce resource input and facing environmental regulation, can still manage to have a sustainable growth of output and profits. The firm has a vintage capital technology with two complementary factors, capital and a resource input subject to quota, the latter being increasingly scarce through an exogenously rising price. The firm can scrap obsolete capital and invest in adoptive and/or innovative R&D resource-saving activities. We show that there exists a threshold level for the growth rate of the resource price above which the firm will collapse. Below this threshold, two important properties are found. In the long-run, a sustainable growth is possible at a growth rate which is independent of the resource price. In the short-run, not only will the firms respond to increasing resource price by increasing R&D on average, but they will also reduce capital expenditures and speed up the scrapping of older capital goods. Finally, we identify optimal intensive Vs extensive transitional growth regimes depending on the history of the firms.
    Keywords: Vintage capital, technological progress, dynamic optimization, Sustainability, scarcity, environmental regulation
    JEL: C61 D21 D92 O33 Q01
    Date: 2010–03–19

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