nep-ino New Economics Papers
on Innovation
Issue of 2010‒11‒20
eleven papers chosen by
Steffen Lippert
Massey University, Albany

  1. ICT and Innovation Activities: Evidence for UK SMEs By Dolores Añon Higón
  2. Financial constraints and innovation: Why poor countries don't catchup By Yuriy Gorodnichenko; Monika Schnitzer
  3. Collusion through Joint R&D: An Empirical Assessment By Tomaso Duso; Lars-Hendrik Roeller; Jo Seldeslachts
  4. The internationalization of firms in the service industries: channels, determinants and sectoral patterns By Castellacci, Fulvio
  5. Innovation, Entrepreneurship and Financial Market Cycles By Josh Lerner
  6. The Impact of University Research on Corporate Patenting By Christian Helmers; Mark Rogers
  7. Inter-organisational projects in french innovation clusters: the construction of collaboration By L. Calamel; C. Defelix; T. Picq; D. Retour
  8. Structural properties of cooperation networks in Germany: From basic to applied research By Tom Broekel; Holger Graf
  9. NBER Patent Data-BR Bridge: User Guide and Technical Documentation By Natarajan Balasubramanian; Jagadeesh Sivadasan
  10. Knowledge transfer in the Social Sciences and the Humanities: informal links in a Public Research Organization By Castro-Martínez, Elena; Molas-Gallart, Jordi; Olmos-Peñuela, Julia
  11. Insight into Different Types of Patent Families By Catalina Martinez

  1. By: Dolores Añon Higón (Departamento de Economía Aplicada II, Universidad de Valencia)
    Abstract: There is a continuous commitment of policy makers in the UK to supporting innovation in small and medium firms. For these policy initiatives to be successful, an understanding of the factors driving innovation activities is required. In this study, we focus on the role that Information and Communication Technologies (ICT) play in the innovation performance of UK small and medium sized enterprises (SMEs). Using data drawn from the 2004 Annual Small Business Survey (ASBS) database, we show that ICT operate primarily as efficiency-enhancing technologies, although specific market oriented applications (i.e. website development) exhibit a potential to create competitive advantage through product innovation.
    Keywords: ICT, Product Innovation, Process Innovation, SME, Bivariate Probit
    JEL: D24 O30
    Date: 2010–11
  2. By: Yuriy Gorodnichenko (University of California); Monika Schnitzer (University of Munich)
    Abstract: We examine micro-level channels of how financial development can affect macroeconomic outcomes like the level of income and export intensity. We investigate theoretically and empirically how financial constraints affect a firm's innovation and export activities, using unique firm survey data which provides direct measures for innovations and firm-specific financial constraints. We find that financial constraints restraint heability of domestically owned firms to innovate and export and hence to catch up to the technological frontiers. This negative effect is amplified as financial constraints force export and innovation activities to become substitutes although they are generally natural complements.
    Keywords: innovation, productivity, financial constraint, export, technology frontier, BEEPS
    JEL: O3 O16 F1 G3
    Date: 2010–11
  3. By: Tomaso Duso (Humboldt University Berlin and Wissenschaftszentrum Berlin (WZB)); Lars-Hendrik Roeller (European School of Management and Technology (ESMT) and Humboldt University Berlin); Jo Seldeslachts (University of Amsterdam)
    Abstract: This paper tests whether upstream R&D cooperation leads to downstream collusion. We consider an oligopolistic setting where firms enter in research joint ventures (RJVs) to lower production costs or coordinate on collusion in the product market. We show that a sufficient condition for identifying collusive behavior is a decline in the market share of RJV-participating firms, which is also necessary and sufficient for a decrease in consumer welfare. Using information from the US National Cooperation Research Act, we estimate a market share equation correcting for the endogeneity of RJV participation and R&D expenditures. We find robust evidence that large networks between direct competitors -created through firms being members in several RJVs at the same time- are conducive to collusive outcomes in the product market which reduce consumer welfare. By contrast, RJVs among non-competitors are efficiency enhancing.
    Keywords: Research Joint Ventures; Innovation; Collusion; NCRA
    JEL: K21 L24 L44 O32
    Date: 2010–11–08
  4. By: Castellacci, Fulvio
    Abstract: The paper presents the results of a new survey on the international activities of Norwegian enterprises in the service industries. The survey focuses on three main internationalization channels: international sales, international cooperation and R&D outsourcing. The empirical analysis studies the relevance of these channels, and investigates the related strategies, objectives and determinants. International sales and collaborations emerge as the two most relevant channels, whereas the scope for R&D outsourcing seems to be far more limited. The analysis of the determinants of international activities leads to three main results: (1) the innovative capability of firms matters for their international performance; (2) the various internationalization channels seem to be complement, rather than substitute, strategies to compete in foreign markets; (3) sectoral specificities greatly affect firms’ internationalization strategies and performance.
    Keywords: internationalization; international cooperations; R&D outsourcing; innovation; service industries; survey data
    JEL: F0 O3 L1
    Date: 2010
  5. By: Josh Lerner
    Abstract: While hard data is difficult to find, the financial crisis appears to have had a substantial negative effect on investors’ willingness to finance innovative entrepreneurship. This dearth of capital is particularly worrisome in light of the widely recognised need for innovative ventures—the so-called “green shoots”— to reignite economic growth after the world-wide recession. A growing body of evidence suggests a strong relationship between entrepreneurship, innovation, and economic growth. This document first reviews the evidence concerning the relationship between innovation and entrepreneurship. It then turns to understanding the consequences of market cycles for these activities. We look at the way that financial considerations impact the innovation investment decision, and innovation in entrepreneurial ventures specifically.<BR>Il est difficile de trouver des données objectives sur la question, mais la crise financière semble avoir eu un effet négatif sensible sur la disposition des investisseurs à financer les entreprises innovantes. Cette pénurie de capital est particulièrement inquiétante à la lumière du besoin largement admis d'entreprises innovantes – les fameuses « jeunes pousses » – pour relancer la croissance économique après la récession mondiale. De plus en plus d’éléments laissent à penser qu'il existe un lien fort entre entrepreneuriat, innovation et croissance économique. Ce document s’ouvre sur un examen des informations disponibles concernant la relation entre innovation et entrepreneuriat. Je m’efforce ensuite de cerner les conséquences des cycles des marchés sur ces activités. J’examine la façon dont les considérations financières se répercutent sur les décisions d’investissement en matière d'innovation, et plus précisément s’agissant de l’innovation réalisée dans les jeunes entreprises.
    Date: 2010–03–18
  6. By: Christian Helmers; Mark Rogers
    Abstract: This paper analyses the association between the number of patenting manufacturing firms andthe quantity and quality of relevant university research across UK postcode areas. We showthat different measures of research `power' and `excellence' positively affect the patenting ofsmall firms within the same postcode area. Patenting by large firms, in contrast, is unaffectedby research undertaken in nearby universities. This confirms the commonly held view thatlocation matters more for small firms than large firms. We also investigate specific channelsof technology transfer, finding that university-industry knowledge transfer occurs throughboth formal and informal channels. From a methodological point of view, we contribute tothe existing literature by accounting for potential simultaneity between university researchand patenting of local firms by adopting an instrumental variable approach. Moreover, wealso allow for the effects of the presence of universities in neighbouring postcode areas toinfluence firms' patenting activity by incorporating spatial neighborhood effects.
    Keywords: Patents, universities, knowledge transfer, spillover, UK
    JEL: L22 L26 O34
    Date: 2010–09
  7. By: L. Calamel (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II, MC - Management et Comportement - Grenoble Ecole de Management, UPMF Grenoble II - UNIVERSITE PIERRE MENDES FRANCE - Université Pierre Mendès-France - Grenoble II); C. Defelix (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II, UPMF Grenoble II - UNIVERSITE PIERRE MENDES FRANCE - Université Pierre Mendès-France - Grenoble II, IAE GRENOBLE - IAE de Grenoble); T. Picq (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II, Euristik - Equipe de Recherche en management stratégique - Centre de recherche Magellan de l'IAE - Université Jean Moulin - Lyon III); D. Retour (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre Mendès-France - Grenoble II)
    Abstract: Having received considerable attention from central government and local authorities, French innovation clusters (the so-called ‘pôles de compétitivité') are beginning to be studied by academic researchers and evaluated by consultants. The core of their activity consists of collaborative projects, which are characterised by specific management and HR practices located at the junction of different cultures and employment statuses. Almost four years after they were launched, what can we say about the dynamic of these collaborative projects? What is the reality of such collaboration when it involves multiple partnerships bringing together employees from different occupational cultures and HRM systems? The aim of this longitudinal research, which is based on observation of two collaborative projects in one of the most largest clusters in France,is to discuss management and HR issues in such a setting. A literature review highlights the need to open up the ‘black box' of collaboration within projects and encourages examination of both manager's coordination efforts and the actors' motivation to cooperate, as well as the role played by HRM practices. Thus observation of the conduct of the projects over two years reveals that collaboration, far from being a given within these projects, is the product of a process of social construction that might be fostered by better managerial support.
    Keywords: innovation cluster ; collaborative project ; coordination ; cooperation ; learning ; competences
    Date: 2010
  8. By: Tom Broekel (Department of Economic Geography, Urban & Regional Research Centre Utrecht (URU), Faculty of Geosciences, Utrecht University); Holger Graf (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: Economists pay more and more attention to knowledge networks and drivers of their development. Consequently, a rich literature emerged analyzing factors explaining the emergence of intra-organizational links. Despite substantial work focusing on the dyad level, only little is known about how and why (global) network structures differ between technologies or industries. The study is based on a new data source on subsidized R&D cooperation in Germany, which is presented in detail and discussed with respect to other types of relational data. A comparison of networks within ten technologies allows us to identify systematic differences between basic and applied research networks.
    Keywords: R&D subsidies, network, cooperation, Foerderkatalog, Germany
    JEL: L14 I28 O38
    Date: 2010–11–12
  9. By: Natarajan Balasubramanian; Jagadeesh Sivadasan
    Abstract: This note provides details about the construction of the NBER Patent Data-BR concordance, and is intended for researchers planning to use this concordance. In addition to describing the matching process used to construct the concordance, this note provides a discussion of the benefits and limitations of this concordance.
    Date: 2010–10
  10. By: Castro-Martínez, Elena; Molas-Gallart, Jordi; Olmos-Peñuela, Julia
    Abstract: This study analyzes the characteristics of knowledge transfer in the Social Sciences and the Humanities in the Spanish Council for Scientific Research (CSIC). CSIC is the largest public sector research organization in the country and has a substantial set of activities in the Social Sciences and Humanities. We analyze the variety of users and beneficiaries that access some of the results of CSIC ́s research in this field, and the different forms of use. We identify a wide range of transfer processes and discuss the organizational and analytical challenges that such variety poses. The study shows that a substantial number of research groups had links with non-academic beneficiaries and were looking for ways to increase such relationships. Many of these links were informal and occasional in nature, of limited reach, and invisible to the parent organization (CSIC). We derive some policy and management implications from these conclusions. The variety of transfer processes suggests that, to support efficient knowledge transfer, policies and knowledge transfer management processes must be differentiated and tailored to the specific characteristics of knowledge production and use in the Social Sciences and Humanities.
    Keywords: Knowledge transfer; Humanities; Social Sciences; Public Research Organization; Policy; Informality
    JEL: I23
    Date: 2010–11–11
  11. By: Catalina Martinez
    Abstract: What are patent families? What is the impact of adopting one definition or another? Are some definitions of patent families better suited than others for certain uses in statistical and economic analysis? The aim of this paper is to provide some answers to these questions, compare the methodologies and outcomes of the most commonly used patent family definitions and provide guidance on how to build families based on raw data from the EPO Worldwide Patent Statistics database (PATSTAT). One of our findings, based on a characterisation of family structures, is that extended patent families and other family definitions, such as equivalents and single-priority families, provide identical outcomes for about 75% of the families with earliest priority dates in the 1990s because they have quite simple structures. Differences across definitions only become apparent for the families with more complex structures, which represent 25% of the families of that period.<P>Éclairage sur différents types de familles de brevets<BR>Qu’est-ce qu’une famille de brevets ? Quelles conséquences l’adoption de telle ou telle définition peut-elle avoir ? Certaines définitions des familles de brevets sont-elles mieux adaptées que d’autres à certains usages en analyse statistique et économique ? Le présent document a pour objet d’apporter des réponses à ces questions, de comparer les méthodologies et les résultats des définitions de familles de brevets les plus courantes et de donner des indications sur la marche à suivre pour construire des familles de brevets à partir des données brutes de la base de données mondiale de l’OEB sur les brevets (PATSTAT). L’une de nos conclusions, fondée sur une caractérisation des structures des familles de brevets, est que des familles de brevets étendues et d’autres types de familles de brevets, tels que les équivalents et les familles de brevets partageant la même priorité, fournissent des résultats identiques pour 75 % environ des familles dont les premières dates de priorité se situent dans les années 90, car elles présentent des structures relativement simples. Les définitions ne commencent à diverger que pour les familles offrant des structures plus complexes, lesquelles représentent 25 % de l’ensemble pour cette période.
    Date: 2010–02–12

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