nep-ino New Economics Papers
on Innovation
Issue of 2010‒06‒18
twelve papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Competition Issues in the Seed Industry and the Role of Intellectual Property By Moschini, GianCarlo
  2. IPR-Standardization Interaction in Japanese Firms:Evidence from Questionnaire Survey By Noriyuki Doi
  3. Innovation and Development. The Evidence from Innovation Surveys. By Francesco Bogliacino; Giulio Perani; Mario Pianta; Stefano Supino
  4. Fees versus royalties in a two dimensional square city with quadratic transport costs By Bouguezzi, Fehmi
  5. Software Innovation and the Open Source Threat By germán daniel lambardi
  6. The Quality Factor in Patent Systems By Bruno Van Pottelsberghe
  7. How do Clusters/Pipelines and Core/Periphery Structures Work Together in Knowledge Processes? By Pierre-Alexandre Balland; Raphael Suire; Jerome Vicente
  8. IT Innovativeness and Environmental Consciousness on Organizational Performance By Myung Ko
  9. Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence By Corinne Autant-Bernard; Muriel Fadairo; Nadine Massard
  10. The Role of Fees in Patent Systems: Theory and Evidence By Gaétan de Rassenfosse; Bruno Van Pottelsberghe
  11. Creative rationality and design education: Towards a pedagogy of adventure By Joelle Forest; Michel Faucheux
  12. Strategic Behavious of Firms in a Duopoly and the Impact of Extending the Patenting Period By Jolian McHardy; Tapan Biswas

  1. By: Moschini, GianCarlo
    Abstract: Research and Development (R&D) and innovation are crucial features of the seed industry. To support large R&D investments by the private sector, strong intellectual property rights, such as patents, are necessary. The exclusivity granted by patents naturally creates market power positions and raises difficult and unresolved competition issues in an antitrust context. 
    JEL: L1 L4 O3 Q1
    Date: 2010–06–08
  2. By: Noriyuki Doi (Kwansei Gakuin University)
    Abstract: To disentangle the relations between standards, innovation and competition, this paper examined the processes and effects of standardization in Japanese firms. The realities of their activities were provided by a postal questionnaire sent to progressive large firms in Japanese industries. Overall, although Japanese firms have sufficiently understood the significance of increased standardization, they donft always actively and strategically involve in the standardization process. The conclusion may be derived from the respondentsf evaluations that 1) the effects of standardization are less likely to be profitable; 2) formal standard setting organizations are not always an effective coordination mechanism of intellectual property rights; and 3) they donft have a sufficient internal institution for standardization strategy. They are rather skeptical of particularly formal and semi-formal standardization processes.
    Keywords: Consensus-based Standards, Split Type of Standardization, Intellectual Property Rights, Standards Setting Organizations; Patent Hold-up
    JEL: L15 L22 L41
    Date: 2010–05
  3. By: Francesco Bogliacino; Giulio Perani; Mario Pianta; Stefano Supino
    Abstract: In this article we investigate the existing evidence on innovation produced by innovation surveys in developing and emerging countries in Europe, Asia, Africa and Latin America. We review the relevant literature, discuss methodological issues, and analyse the results for the countries with the most comparable surveys, considering the well established findings of innovation surveys for Europe as a benchmark. From the evidence we considered, regional patterns are identified and some stylized facts on innovation and development are proposed, pointing out the specificity of innovation processes in economies engaged in industrialisation and catching-up.
    Keywords: Innovation Surveys, Patterns of Innovation, Emerging Countries.
    JEL: O14 O19 O3 O54
    Date: 2010
  4. By: Bouguezzi, Fehmi
    Abstract: This paper studies and compares licensing regimes of a cost reducing innovation in a two dimensional square city where consumers are located in the interior of the square city and pay a quadratic transport cost when moving to one of the competing firms. The difference between results in this model and results in the other models of the existing literature is that here I find that royalties licensing is always better than fixed fee licensing independently of the size of the innovation. This result contradicts those found in a linear city à la Hotelling and in a circular city à la Salop. However, the paper shows that optimal licensing strategies for the patent holding firm are the same as in a Hotelling model where royalties are better for a non drastic innovation.
    Keywords: Technology transfer; Patent licensing; Square city
    JEL: O32 O31 C21 L24
    Date: 2010–06
  5. By: germán daniel lambardi
    Abstract: In this paper I study how innovation investment in a software duopoly is affected by the fact that one of the firms is, or might become Open Source. Firms can either be proprietary source (PS) or open source (OS), and have different initial technological levels. An OS firm is a for profit organization whose basic software is OS and it is distributed for free. The OS firm, however, is able to make profits from selling complementary software and, on the cost side; it receives development help from a community of users. I first compare a duopoly composed by two PS firms with a mixed duopoly of a PS and OS firm and I find that a PS duopoly might generate more innovation than a mixed duopoly if the initial technological gap between firms is small. However if this gap is large, a PS duopoly generates less innovation than a mixed duopoly. I then extend the setting to allow PS firms to switch to OS or to remain PS. A PS firm wants to become OS if it gets behind enough in the technological race against a competitor. I find that the outside option to become OS might soften competition on innovation since the technological leader prefers to reduce his innovation investment to avoid the OS switch of the follower. Therefore, although the switch to OS could generate higher investment levels ex-post it might generate lower investment ex-ante. In this context I find that a government subsidy to OS firms could be potentially harmful for innovation.
    Date: 2010–06–12
  6. By: Bruno Van Pottelsberghe
    Abstract: This paper puts forward a new methodology that aims at comparing quality across patent systems. Quality is defined as the extent to which patent offices comply with the legal standards that rule patentability conditions (novelty, inventiveness, transparency). The methodology consists in a two-layer analytical framework composed of "legal standards" and their "operational design". Operational designs include several elements that frame the rigour and transparency of the filtering processes. The in-depth analysis of these two layers for the patent offices of the USA (USPTO), Japan (JPO) and Europe (EPO) lead to the following conclusions. The operational designs’ components are interdependent and form a coherent system. This systemic approach underlines that if legal standards are similar across countries, their operational design are heterogeneous. The empirical evidence suggests that the EPO provides higher quality services than the USPTO, the JPO being in an intermediate position. These differences call for a multi-faceted convergence of patent systems before worldwide mutual recognition and worksharing practices are to be put in place.
    Keywords: quality; patent propensity; intellectual property; patent system
    JEL: O30 O31 O34 O38 O57
    Date: 2010
  7. By: Pierre-Alexandre Balland; Raphael Suire; Jerome Vicente
    Abstract: This paper contributes to the empirical identification of geographical and structural properties of innovative networks, focusing on the particular case of Global Navigation Satellite Systems (GNSS) at the European level. We show that knowledge bases of organizations and knowledge phases of the innovation process are the critical factors in determining the nature of the interplay between structural and geographical features of knowledge networks. Developing a database of R&D collaborative projects of the 5th and 6th European Framework Programs, we propose a methodology based on social network analysis. Its originality consists in starting from a bimodal network, in order to deduce two affiliation matrixes that allow us to study both the properties of the organization network and the properties of the project network. The results are discussed in the light of the mutual influence of the cognitive, structural and geographical dimensions on knowledge production and diffusion, and in the light of the knowledge drivers that give rise to the coexistence of a relational core-periphery structure with a geographical cluster and pipeline structure.
    Keywords: Economic Geography, Knowledge networks, Social network analysis, EU Framework Programs, GNSS
    JEL: O32 R12
    Date: 2010–06
  8. By: Myung Ko (University of Texas at San Antonio)
    Abstract: The purpose of our study is to investigate the impacts of Information Technology (IT) innovation and environmental consciousness on firm performance. We tested the robustness of innovation theory using the most recent Information Week (IW) 500 annual datasets. As expected, performance of IT innovators was better than their industry average performance. However, performance of environmentally conscious IT innovators is frequently no better than that of less conscious IT innovative firms. And, for some performance indicators, less environmentally conscious IT innovative firms out-performed more environmentally conscious IT innovative firms.
    Keywords: Information technology (IT) innovation, firm performance, organizational innovation, IT role, environmental consciousness, and environmental performance
    JEL: Q55
  9. By: Corinne Autant-Bernard (Université de Lyon, Lyon, F-69003, France; CNRS, GATE Lyon St Etienne, UMR 5824, 93, chemin des Mouilles, Ecully, F-69130, France; Université de Saint-Etienne, Jean Monnet, F-42023 Saint Etienne, France); Muriel Fadairo (Université de Lyon, Lyon, F-69003, France; CNRS, GATE Lyon St Etienne, UMR 5824, 93, chemin des Mouilles, Ecully, F-69130, France; Université de Saint-Etienne, Jean Monnet, F-42023 Saint Etienne, France); Nadine Massard (Université de Lyon, Lyon, F-69003, France; CNRS, GATE Lyon St Etienne, UMR 5824, 93, chemin des Mouilles, Ecully, F-69130, France; Université de Saint-Etienne, Jean Monnet, F-42023 Saint Etienne, France)
    Abstract: This article builds upon empirical results concerning localised knowledge spillovers to highlight some policy implications within European regions. The analysis emphasises the role of regional innovation policies in supporting the institutions that generate knowledge and learning. However, the variety of regional features presented in the empirical literature suggests that the search for universal policy tools is unrealistic. From this perspective, we argue that original strategies must be generated to cope with the various dilemmas faced by regional innovation policies. Such specific strategies require accurate knowledge of local features. Improving data and indicators to diagnose and monitor regional innovation is therefore presented as a key issue for policy makers.
    Keywords: innovation policy, localised knowledge flows, European regions, knowledge-based economy
    JEL: O38 C12
    Date: 2010
  10. By: Gaétan de Rassenfosse; Bruno Van Pottelsberghe
    Abstract: This paper reviews the economic literature on the role of fees in patent systems. Two main research questions are usually addressed: the impact of patent fees on the behavior of applicants and the question of optimal fees. Studies in the former group confirm that a range of fees affect the behavior of applicants and suggest that a patent is an inelastic good. Studies in the latter group provide grounds for both low and high application (or pre-grant) fees and renewal (or post-grant) fees, depending on the structural context and on the policy objectives. The paper also presents new stylized facts on patent fees of thirty patent offices worldwide. It is shown that application fees are generally lower than renewal fees, and renewal fees increase more than proportionally with patent age (to the notable exception of Switzerland and the U.S.).
    Keywords: application fees; price elasticity; patent system; Intellectual property policy; renewal fees
    JEL: O30 O31 O38 O57
    Date: 2010
  11. By: Joelle Forest (EVS - Environnement Ville Société - CNRS : UMR5600 - Université Jean Moulin - Lyon III - Université Lumière - Lyon II - Université Jean Monnet - Saint-Etienne - Ecole Nationale des Travaux Publics de l'Etat - Ecole Normale Supérieure Lettres et Sciences Humaines - Institut National des Sciences Appliquées de Lyon); Michel Faucheux (EVS - Environnement Ville Société - CNRS : UMR5600 - Université Jean Moulin - Lyon III - Université Lumière - Lyon II - Université Jean Monnet - Saint-Etienne - Ecole Nationale des Travaux Publics de l'Etat - Ecole Normale Supérieure Lettres et Sciences Humaines - Institut National des Sciences Appliquées de Lyon)
    Abstract: Design education is usually based on the paradigm of innovation defined as a mere application of science. This paper aims at showing that such a point of view is the result of an intellectual perspective which has thrown techniques out of science and, thus, has neglected a specific kind of rationality (the “creative rationality”). Integrating this kind of rationality in the design education drives us to invent“pedagogy of the adventure”.
    Keywords: design; innovation; creativity; rationality; education
    Date: 2009–11–22
  12. By: Jolian McHardy (Department of Economics, The University of Sheffield Author-Person=pmc71); Tapan Biswas
    Abstract: This paper deals with strategic behaviour of firms in a duopoly, subsequent to the claim by one firm that it has reduced the unit cost of production. A variety of possible strategic equilibria are discussed in the context of a duopoly game between a multinational and a local firm. In the context of an extended uniform period of patenting, as finally agreed in the Uruguay round (1994), firms have increased incentive to take patents. In the presence of cost differences, the act of taking process-patents has implications for the equilibrium output strategies of the duopoly firms and sometimes may have a negative overall welfare effect for the local producer and consumers.
    Keywords: Asymmetric Information, Duopoly, Process Patenting, Repeated Games
    JEL: O12 D23 D43
    Date: 2010–06

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