nep-ino New Economics Papers
on Innovation
Issue of 2010‒06‒26
sixteen papers chosen by
Steffen Lippert
Massey University Department of Commerce

  1. Unlocking Public Entrepreneurship and Public Economies By Elinor Ostrom
  2. Innovation, R&D and Productivity in the Costa Rican ICT Sector: A Case Study By Ricardo Monges-Gonzalez; John Hewitt
  3. Innovation strategies as a source of persistent innovation By Tommy Clausen; Mikko Pohjola; Koson Sapprasert; Bart Verspagen
  4. Research contracts and patents in the Spanish ceramic tile district innovation system By Gabaldón-Estevan, Daniel; Molina-Morales, Francesc Xavier; Fernández-de-Lucio, Ignacio
  5. Smoothing the lies: Do patent examiners take notice if applicants include citations? By Azagra-Caro, Joaquín M.; Mattsson, Pauline; Perruchas, François
  6. Knowledge diffusion and innovation policies within the European regions: Challenges based on recent empirical evidence By Corinne Autant-Bernard; Nadine Massard; Muriel Fadairo
  7. Innovation: Exploring the knowledge base By Jan Fagerberg; Koson Sapprasert
  8. Product Innovation and Adoption in Market Equilibrium: The Case of Digital Cameras By Juan Esteban Carranza
  9. Renewable Energy Policy in the Presence of Innovation: Does Government Pre-Commitment Matter? By Madlener, Reinhard; Neustadt, Ilja
  10. Low_Tech Innovation in a High-Tech Environment? The Case of the Food Industry in the Vienna Metropolitan Region By Michaela Trippl
  11. What do Spanish Engineering Students Think about Innovation and Entrepreneurship? By Edwards, Mónica; Fernández-Diego, Marta; González-Ladrón-de-Guevara, Fernando
  12. Biotechnology and Poverty Reduction in Developing Countries By Gregory Graff; David Zilberman; David Roland Holst
  13. Do product market regulations in upstream sectors curb productivity growth? Panel data evidence for OECD countries By Bourlès, R.; Cette, G.; Lopez, J.; Mairesse, J.; Nicoletti, G.
  14. Innovations in Innovation: Developing a Coherent Discipline - examples from Social Entrepreneurship By Haynes, Paul
  15. Twins or Strangers? Differences and Similarities between Industrial and Academic Science By Henry Sauermann; Paula E. Stephan
  16. Enhancing Knowledge-Based Regional Economic Development: Potentials and Barriers for Technology Transfer Offices By Christoph Kober

  1. By: Elinor Ostrom
    Abstract: Unlocking human potential requires a rich network of institutional arrangements in both private and public spheres. Opening the private sphere to entrepreneurship and complex market organization is well understood as a key to increasing the level and quality of private goods available to consumers. Opening the public sphere to entrepreneurship and innovation at local, regional, and international levels is also a key to increasing the level and quality of public goods – e.g., peace, safety, and health – available to citizens. This paper reviews studies of urban service delivery that have repeatedly found communities of individuals who have self-organized to provide and co-produce surprisingly good local services. In addition to unlocking individual freedom, we need to unlock the public sector from rigid, top-down, hierarchical organization.[Discussion Paper No. 2005/01]
    Keywords: entrepreneurship, urban public services, polycentricity
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2580&r=ino
  2. By: Ricardo Monges-Gonzalez; John Hewitt
    Abstract: This paper addresses the relationships between innovation, research and development (R&D) and productivity in domestic ICT firms in Costa Rica. Factors considered were the types of innovation outputs produced by domestic ICT firms, the relative importance of innovation inputs, the impacts of innovation on firm productivity, the protection of innovations, and impediments to innovation. While most firms engaged in all types of output and input innovations, they appear to be driven by retaining or increasing market share rather than increasing productivity. Half of firms do not formally protect the intellectual property created by their innovations, are not familiar with methods for protecting innovation or the availability of government grants for such purposes, and face barriers associated with the Costa Rican Patent Office. Other impediments include lack of knowledge about financial resources available and scarcity of human resources. There is also evidence of knowledge spillovers through worker mobility from multinationals operating in Costa Rica to domestic ICT firms.
    Keywords: Research and development, Information communications technology, Innovation, Costa Rica
    JEL: L20 L63 L86 O31
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:idb:wpaper:4670&r=ino
  3. By: Tommy Clausen (Centre for Technology, Innovation and Culture, University of Oslo); Mikko Pohjola (Turku School of Economics, Finland); Koson Sapprasert (Centre for Technology, Innovation and Culture, University of Oslo); Bart Verspagen (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: An important topic in the recent literature on firms’ innovation is the question of whether, and to what extent, firms which innovate once have a higher probability of innovating again in subsequent periods. This phenomenon is called the ‘persistence of innovation’. Although the literature has established that innovation persistence is indeed important from an empirical point of view, relatively little attention has been paid to identifying the reasons why this is the case. This study proposes that the differences in innovation strategies across firms are an important driving force behind innovation persistence, and analyses this issue using a panel database constructed from R&D and Community Innovation Surveys in Norway. Empirical measures of various innovation strategies are identified by means of a factor analysis. A cluster analysis is used in addition to a dynamic random effects probit model to extend the methodology adopted by prior studies, for the purpose to not only examine innovation persistence, but also determine how this persistence is influenced by innovation strategies. The results support the idea that the differences in innovation strategies across firms are an important determinant of the firms’ probability to repeatedly innovate. The study also distinguishes the effects of strategy differences on the persistence of product and process innovation in all firms, and within high-tech versus low-tech firms.
    Keywords: Persistence of innovation, Firm heterogeneity, Innovation strategy, Panel data
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:tik:inowpp:20100617&r=ino
  4. By: Gabaldón-Estevan, Daniel; Molina-Morales, Francesc Xavier; Fernández-de-Lucio, Ignacio
    Abstract: This work applies the systemic approach to analyze the innovation process in an industrial district through the notion of the District Innovation System. We are particularly interested in the analysis of the interactions between the productive-technological and the scientific environments through the analysis of research contracts and patents. The empirical section of the paper develops a quantitative analysis of the interactions between different actors of the system included in the district. This analysis was used to indicate the special features of the innovation system in a territorially bounded industrial district. Findings suggest relevant conclusions about specific characteristics of the inter-organizational environments in the industrial district which have to be considered.
    Keywords: innovation systems; industrial districts, tile industry; agglomeration; research contracts; patents
    Date: 2009–06–26
    URL: http://d.repec.org/n?u=RePEc:ing:wpaper:200901&r=ino
  5. By: Azagra-Caro, Joaquín M.; Mattsson, Pauline; Perruchas, François
    Abstract: Examiner patent citations are a popular source of indicators of technological impact and knowledge flows, despite various critiques. We analyse the distribution of examiner patent citations according to patent characteristics, to show their comparative meaningless. Our findings show that it is the science-base of the technology that determines the inclusion of applicant citations. However, this gets masked by the citations added by patent examiners, who smooth the distribution of citations across technology classes and include the 'standard' knowledge bases regardless of which references applicants cite. Some researchers have called for the use of applicant rather than examiner patent citations to build indicators of technology impact and knowledge flows. However, we show that the former are not necessarily 'better' than the latter, because applicants may 'inflate' the numbers in international patents especially when there are co-applicants. The implications are that analysts should consider alternative uses of patent citations e.g. to build indicators of trust within a research system.
    JEL: O31 O33 O34
    Date: 2010–06–17
    URL: http://d.repec.org/n?u=RePEc:ing:wpaper:201005&r=ino
  6. By: Corinne Autant-Bernard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Nadine Massard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines); Muriel Fadairo (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)
    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
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00491062_v1&r=ino
  7. By: Jan Fagerberg (Centre for Technology, Innovation and Culture, University of Oslo); Koson Sapprasert (Centre for Technology, Innovation and Culture, University of Oslo)
    Abstract: New types of knowledge, and new ways of organising the production of it, may emerge as knowledge producers respond to the challenges posed by a changing society. This study will focus on the core knowledge of one such emerging field, namely, innovation studies, i.e. the attempt to understand the social process which enables the continuation of qualitative improvements of products, technologies, and the organisation of economic activities. To explore the knowledge base of innovation, a new data base of references in scholarly surveys of various aspects of innovation, mostly published in “handbooks”, is developed. The paper describes the process that led to the construction of the data base and its exploitation in identifying the core literature on innovation. Furthermore, the characteristics of this literature, the central contributors and the use of the literature (as reflected by references to this core literature in scholarly journals) are analysed. Finally, cluster analysis is used to make inferences about how the field is structured and its links with different disciplinary and cross-disciplinary contexts.
    Keywords: Innovation, cross-disciplinarity, emerging scientific field, social science
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:tik:inowpp:20100616&r=ino
  8. By: Juan Esteban Carranza
    Abstract: This paper contains an empirical dynamic model of supply and demand in the market for digital cameras with endogenous product innovation. On the demand side, heterogeneous consumers time optimally the purchase of goods depending on the expected evolution of prices and characteristics of available cameras. On the supply side, firms introduce new camera models accounting for the dynamic value of new products and the optimal behavior of consumers. The model is estimated using data from the market for digital cameras and the estimated model replicates rich dynamic features of the data. The estimated model is used to perform counterfactual computations, which suggest that more competition or lower product introduction costs generate more product variety but lower average product quality.
    Date: 2010–06–16
    URL: http://d.repec.org/n?u=RePEc:col:000130:007127&r=ino
  9. By: Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Neustadt, Ilja (Socioeconomic Institute (SOI), Faculty of Economics, University of Zurich)
    Abstract: In a perfectly competitive market with a possibility of technological innovation we contrast guaranteed feed-in tariffs for electricity from renewables and tradable green certificates from a dynamic efficiency and social welfare point of view. Specifically, we model decisions about the technological innovation with convex costs within the framework of a game-theoretic model, and discuss implications for optimal policy design under different assumptions regarding regulatory pre-commitment. We find that for the case of technological innovation with convex costs subsidy policies are preferable over quota-based policies. Further, in terms of dynamic efficiency, no pre-commitment policies are shown to be at least as good as the pre-commitment ones. Thus, a government with a preference for innovation being performed if the achievable cost reduction is high should be in favor of the no pre-commitment regime.
    Keywords: Renewable Electricity; Feed-In Tariffs; Regulatory Pre-Commitment; Tradable Green Certificates; Quota Target; Innovation; Energy Policy
    JEL: Q42 Q48
    Date: 2010–04
    URL: http://d.repec.org/n?u=RePEc:ris:fcnwpa:2010_004&r=ino
  10. By: Michaela Trippl
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2010_02&r=ino
  11. By: Edwards, Mónica; Fernández-Diego, Marta; González-Ladrón-de-Guevara, Fernando
    Abstract: This paper analyzes the interrelationships between creativity, innovation and entrepreneurship as key enablers of an entrepreneurial and innovation-oriented culture. Empirical results of exploring perceptions and opinions about these three concepts are presented, using a sample of 121 engineering students. The findings show that the majority of students perceive the traditional linear model of innovation and consider innovation strongly related to creativity but moderately related to entrepreneurship. There are contradictions between the students' self-perceptions as entrepreneurs, their high desirability to start a new firm and their work preferences after graduation, which are principally to get a job in a private company and become public servants. Their low willingness for mobility and the poor contribution of the education system in developing their innovation and entrepreneurial competences constitutes other relevant obstacles for improving an entrepreneurial and innovation-oriented culture.
    Keywords: engineering students; perceptions; innovation; entrepreneurship; creativity; competences
    JEL: L26
    Date: 2010–04–08
    URL: http://d.repec.org/n?u=RePEc:ing:wpaper:201004&r=ino
  12. By: Gregory Graff; David Zilberman; David Roland Holst
    Abstract: Throughout human history, technology has proven its ability to contribute to higher material living standards, yet the work of poverty alleviation is far from complete. We believe that in the modern age, biotechnology holds remarkable potential for reducing poverty and its attendant adversities. However, the extent to which this promise is fulfilled will depend as much on institutions as it does on innovation. In these early stages of development, biotechnology is concentrated in the most developed, Tier I countries. In this paper, we envision future biotechnology diffusion around the world, with large emergent Tier II economies playing a catalytic role in propagating affordable and appropriate innovation products. Through the mechanism of a globally R&D supply chain, such products can ultimately reach the world’s poorest and improve their dietary, health, and income status. For this to happen, three general conditions must be satisfied.[Research Paper No. 2005/27]
    Keywords: sustainable development, technology, food, health, agriculture
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:ess:wpaper:id:2579&r=ino
  13. By: Bourlès, R.; Cette, G.; Lopez, J.; Mairesse, J.; Nicoletti, G.
    Abstract: The paper focuses on the influence of upstream competition for productivity outcomes in downstream sectors. This relation is illustrated with a neo-Schumpeterian theoretical model of innovation (Aghion et al., 1997) with market imperfections in the production of intermediate goods. In this context, upstream market imperfections create barriers to competition in downstream markets and upstream producers use their market power to share innovation rents sought by downstream firms. Thus, lack of competition in upstream markets curbs incentives to improve productivity downstream, negatively affecting productivity outcomes. We test this prediction by estimating an error correction model that differentiates the potential downstream effects of lack of upstream competition in situations close and far from the global technological frontier. We measure competition upstream with regulatory burden indicators derived from OECD data on sectoral product market regulation and the industry-level efficiency improvement and the distance to frontier variables by means of a multifactor productivity (MFP) index. Panel regressions are run for 15 OECD countries and 20 sectors over the 1985-2007 period with country, sector and year fixed effects. We find clear evidence that anticompetitive regulations in upstream sectors have curbed MFP growth downstream over the past 15 years. These effects tend to be strongest for observations (i.e. country/sector/period triads) that are close to the global technological frontier. Our results suggest that, measured at the average distance to frontier and average level of anticompetitive regulations, the marginal effect of increasing competition by easing such regulations is to increase MFP growth by between 1 and 1.5 per cent per year in the OECD countries covered by our sample. Our results are robust to changes in the way MFP and the regulatory burden indicators are constructed, as well as to variations in the sample of countries and/or sectors.
    Keywords: Productivity, Growth, Regulations, Competition, Catch-up.
    JEL: O43 L5 O57 L16 C23
    Date: 2010
    URL: http://d.repec.org/n?u=RePEc:bfr:banfra:283&r=ino
  14. By: Haynes, Paul
    Abstract: Social entrepreneurship is an emerging academic field generating a rapidly expanding literature on a growing range of topics. While the early stage of its development was nourished by many of the rich ideas developed within the "conventional" entrepreneurship literature, this is beginning to change as the community-based and societal entrepreneurship landscape has become a more fundamental part of the collection of entrepreneurship practices. Challenges still remain in forging effective and close relationships between academics, community groups and practitioners. This paper considers the way that the social entrepreneurship community, as a collective of academics and practitioners, is beginning to address this tension.
    Date: 2009–11–11
    URL: http://d.repec.org/n?u=RePEc:ing:wpaper:200908&r=ino
  15. By: Henry Sauermann; Paula E. Stephan
    Abstract: Some scholars view academic and industrial science as qualitatively different knowledge production regimes. Others claim that the two sectors are increasingly similar. Large-scale empirical evidence regarding similarities and differences, however, has been missing. Drawing on prior work on the organization of science, we first develop a framework to compare and contrast the two sectors along four key dimensions: (1) the nature of research (e.g., basic versus applied); (2) organizational characteristics (e.g., degree of independence, pay); (3) researchers’ preferences (e.g., taste for independence); and (4) the use of alternative disclosure mechanisms (e.g., patenting and publishing). We then compare the two sectors empirically using detailed survey data from a representative sample of over 5,000 life scientists and physical scientists employed in a wide range of academic institutions and private firms. Building on prior work that has emphasized different “research missions”, we also examine how the nature of research is related to other characteristics of science within and across the two sectors. Our results paint a complex picture of academic and industrial science. While we find significant industry-academia differences with respect to all four dimensions, we also observe remarkable similarities. For example, both academic institutions and private firms appear to allow their scientists to stay actively involved in the broader scientific community and provide them with considerable levels of independence in their jobs. Second, we find significant differences not just between industrial and academic science but also within each of the two sectors as well as across fields. Finally, while the nature of research is a significant predictor of other dimensions such as the use of patenting and publishing, it does not fully explain the observed industry-academia differences in those dimensions. Overall, our results suggest that stereotypical views of industrial and academic science may be misleading and that future work may benefit from a richer and more nuanced description of the organization of science.
    JEL: J31 J44 O31 O32 O34
    Date: 2010–06
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:16113&r=ino
  16. By: Christoph Kober
    Date: 2010–05–27
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwneu:neurusp139&r=ino

This nep-ino issue is ©2010 by Steffen Lippert. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.