nep-ino New Economics Papers
on Innovation
Issue of 2010‒09‒11
ten papers chosen by
Steffen Lippert
Massey University, Albany

  1. A World Without Intellectual Property? Boldrin and Levine, Against Intellectual Monopoly By Gilbert, Richard
  2. The Impact of R&D Offshoring on the Home Knowledge Production of OECD Investing Regions By Lorena M. D’Agostino; Keld Laursen; Grazia Santangelo
  3. The role of patent protection in (clean/green) technology transfer. By Bronwyn H. Hall; Christian Helmers
  4. The Rising Tide of Patent Damages By Gilbert, Richard J
  5. Globalization and Knowledge Spillover: International Direct Investment, Exports and Patents By Chia-Lin Chang; Sung-Po Chen; Michael McAleer
  6. Europe's missing yollies By Reinhilde Veugelers
  7. Agglomeration and interregional network effects on European R&D productivity By Attila Varga; Dimitrios Pontikakis; George Chorafakis
  8. Firm Incentives for Environmental R&D under Non-cooperative and Cooperative Policies By Hattori, Keisuke
  9. Science-Based Business : Knowledge Capital or Entrepreneurial Ability? : Theory and Evidence from a Survey of Biotechnology Start-ups By Braguinsky, Serguey; Honjo, Yuji; Nagaoka, Sadao; Nakamura, Kenta
  10. A Comparison between Political Claims Analysis and Discourse Network Analysis: The Case of Software Patents in the European Union By Philip Leifeld; Sebastian Haunss

  1. By: Gilbert, Richard
    Abstract: In their recent book, Against Intellectual Monopoly, Michele Boldrin and David Levine conclude that patents and copyrights are not necessary to provide protection for either innovation or creative expression and should be eliminated. The authors note the many flaws of the U.S. system of intellectual property protection and argue that other means are available to appropriate the benefits of invention and creative expression. However, the authors overlook important functions of intellectual property. Their efforts would be put to better use by more carefully analyzing policy proposals that may improve our system of intellectual property rights and have some potential to be implemented.
    Keywords: intellectual property, patent, copyright
    Date: 2010–02–01
  2. By: Lorena M. D’Agostino; Keld Laursen; Grazia Santangelo
    Abstract: This paper investigates the relationship between home and offshore R&D activities on the knowledge production of the investing home region. Debate is ongoing on whether R&D offshoring complements the R&D performed at home. In the light of increased offshoring of innovative activities to emerging countries, we explicitly focus on Brazil, Russia, India, China, Singapore and Taiwan. We suggest that complementarity should obtain, when home region and offshore R&D activities are dissimilar as well as when offshore R&D activities is about modular and less complex technologies. We ground our predictions on arguments related to geographical technological specialisation and reverse knowledge transfer from offshore locations to home regions within the more general open innovation trend. Using a theoretical framework based on the international business literature and the regional system of innovation perspective, we estimate a knowledge production function for a sample of 221 regions from 21 OECD countries with home region patent applications as the dependent variable. Our test supports our predictions on the complementarity between home region and offshore R&D.
    Keywords: Home Region R&D; Offshore R&D; Knowledge Production; Complementarity; Emerging Countries
    Date: 2010
  3. By: Bronwyn H. Hall; Christian Helmers
    Abstract: Global climate change mitigation will require the development and diffusion of a large number and variety of new technologies. How will patent protection affect this process? In this paper we first review the evidence on the role of patents for innovation and international technology transfer in general. The literature suggests that patent protection in a host country encourages technology transfer to that country but that its impact on innovation and development is much more ambiguous. We then discuss the implications of these findings and other technology-specific evidence for the diffusion of climate change-related technologies. We conclude that the “double externality” problem, that is the presence of both environmental and knowledge externalities, implies that IP may not be the ideal and cannot be the only policy instrument to encourage innovation in this area and that the range and variety of green technologies as well as the need for local adaptation of technologies means that patent protection may be neither available nor useful in some settings.
    Keywords: Climate change; intellectual property; innovation; technology transfer
    JEL: D1 I2 O1 O3
    Date: 2010
  4. By: Gilbert, Richard J
    Abstract: Very large awards and settlements for patent infringement have increased dramatically since the 1980s. A large fraction of these awards have occurred in the computer hardware and software industries. Complex technologies such as computer hardware and software require rights to a very large number of patents. One explanation for the large awards for patent infringement is the bargaining power of a patentee that has a credible injunction threat for a product that requires rights to multiple patents. This can lead to infringement damage awards and settlements that overestimate the patent’s contribution to product value.
    Keywords: patents, infringement, damages, innovation
    Date: 2010–02–01
  5. By: Chia-Lin Chang (Department of Applied Economics, National Chung Hsing University); Sung-Po Chen (Econometric Institute, Erasmus School of Economics, Erasmus University Rotterdam); Michael McAleer (Erasmus University Rotterdam, Tinbergen Institute, The Netherlands, and Institute of Economic Research, Kyoto University)
    Abstract: This paper examines the impact of the three main channels of international trade on domestic innovation, namely outward direct investment, inward direct investment (IDI) and exports. The number of Triadic patents serves as a proxy for innovation. The data set contains 37 countries that are considered to be highly competitive in the world market, covering the period 1994 to 2005. The empirical results show that increased exports and outward direct investment are able to stimulate an increase in patent output. In contrast, IDI exhibits a negative relationship with domestic patents. The paper shows that the impact of IDI on domestic innovation is characterized by two forces, and the positive effect of cross-border mergers and acquisitions by foreigners is less than the negative effect of the remaining IDI.
    Keywords: International direct investment, Export, Triadic Patent, Outward Direct Investment, Inward Direct Investment, R&D, negative binomial model
    JEL: F14 F21 O30 O57
    Date: 2010–08
  6. By: Reinhilde Veugelers
    Abstract: In this Policy Brief, Bruegel Senior Fellow Reinhilde Veugelers and Michele Cincera, Professor at ULB, draw our attention to young leading innovators ('yollies'). They explain why the European Union's business research and development deficit, relative to the United States, can be attributed to the EU having fewer yollies, especially those that are less R&D intensive. This paper raises important and timely questions about the EU's innovation policy. The authors argue why policy makers should pay attention to the heterogeneity across young sectors and design sector-specific measures to boost innovation and growth in the EU.
    Date: 2010–08
  7. By: Attila Varga (Department of Economics and Regional Studies, University of Pécs); Dimitrios Pontikakis (Institute for Prospective Technological Studies, Joint Research Centre, European Commission Seville, Spain); George Chorafakis (Research Directorate-General, European Commission Brussels, Belgium)
    Abstract: This paper explores the effects of intra-regional agglomeration and interregional networking on the productivity of R&D across EU regions. The paper is based on the spatial econometric modelling framework presented in Varga (2000), and further develops a methodology for estimating the dynamic effects of agglomeration and interregional networks on R&D productivity in regional knowledge creation (measured by patent applications and publications) at the level of EU regions. This empirical modelling framework is applied to classify EU regions into different tiers according to the strengths of their agglomeration effects. These effects are then compared to the network effects of interregional connectedness as reflected in regional participation in the EU Framework Programme for Research. The estimated model is used then for an assessment of the impacts of EU Framework Programme expenditures on technological development and for carrying out policy impact simulations.
    Keywords: Agglomeration, network effects, R&D productivity
    JEL: O18 O33 R11
    Date: 2010–06
  8. By: Hattori, Keisuke
    Abstract: This paper investigates firm incentives for developing environmentally clean technologies in a simple two-country model with international oligopoly, and compares them under price and quantity regulations with and without policy cooperation between governments. Under any policy regime, whether firm incentives are either excessive or insufficient from a welfare point of view depends on the marginal environmental damage and the degree of emission spillovers. If the marginal damage is relatively large, a quantity instrument encourages innovation more than a price instrument. In addition, under either regime of price and quantity regulations, policy cooperation (harmonization) necessarily enhances welfare in each country, but it does not necessarily increase firms' innovation incentives.
    Keywords: Technology innovation; International oligopoly; Environmental policy; Policy harmonization
    JEL: D62 L13 Q55 Q58
    Date: 2010–09–02
  9. By: Braguinsky, Serguey; Honjo, Yuji; Nagaoka, Sadao; Nakamura, Kenta
    Abstract: We present a model of science-based entrepreneurship where ideas initially produced by researchers with high-level knowledge capital may be developed by high-ability entrepreneurs. With moderate investment costs, startups continuously managed by inventors-founders coexist in equilibrium with startups that experience entrepreneurial turnover. The model predicts that startups managed by non-founder entrepreneurs would on average outperform the startups managed by their founders and that better functioning of the market for entrepreneurial talent should result in more entrepreneurial turnover in equilibrium which in its turn leads to more ideas being commercialized and higher rewards to successful startups. The predictions of the model are tested against a unique dataset drawing upon a representative sample of biotechnology startups in Japan and are found to be broadly supported in the data.
    Keywords: Science-based Business, Biotechnology, Start-ups, Entrepreneurship, Innovation
    JEL: O31 O32
    Date: 2010–09
  10. By: Philip Leifeld (Max Planck Institute for Research on Collective Goods, Bonn); Sebastian Haunss (Department of Politics and Management, University of Konstanz)
    Abstract: The study of policy discourse comprises actor-centered and content-oriented approaches. We attempt to close the gap between the two kinds of approaches by introducing a new methodology for the analysis of political discourse called Discourse Network Analysis. It is based on social network analysis and qualitative content analysis and takes an entirely relational perspective. Political discourse can be analyzed in a dynamic way, and the approach makes previously unobservable cleavage lines and alignments measurable at the actor level, at the level of the contents of a discourse, and a combined layer. We compare discourse network analysis with political claims analysis, a competing method, and apply both methods to the European-level discourse on software patents. Our results demonstrate how an anti-softwarepatent coalition was mobilized and how it gained control over important frames, while the well-organized pro-software-patent discourse coalition was not able to gain sovereignty over the discourse.
    Keywords: Software Patents, Intellectual Property Rights, Discourse Network Analysis, Social Network Analysis, Political Discourse, Policy Networks, Public Policy Analysis, Social Movements, Political Claims Analysis
    Date: 2010–05

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