nep-ino New Economics Papers
on Innovation
Issue of 2011‒01‒03
27 papers chosen by
Steffen Lippert
Massey University, Albany

  1. Innovation in cultural industries: The role of university links By Zukauskaite, Elena
  2. The determinants of innovation adoption By Corinne Autant-Bernard; Jean-Pascal Guironnet; Nadine Massard
  3. Doing R&D or not, that is the question (in a crisis…) By Michele Cincera; Claudio Cozza; Alexander Tübke; Peter Voigt
  4. Economic Aspects of Access to Medicines after 2005: Product Patent Protection and Emerging Firm Strategies in the Indian Pharmaceutical Industry By Padmashree Gehl Sampath
  5. The job creation effect of R&D expenditures By Francesco Bogliacino; Marco Vivarelli
  6. Regional Innovation Policy beyond ‘Best Practice’: Lessons from Sweden By Martin, Roman; Moodysson, Jerker; Zukauskaite, Elena
  7. Corporate R&D and firm efficiency: Evidence from Europe’s top R&D investors By Subal C. Kumbhakar; Raquel Ortega-Argilés; Lesley Potters; Marco Vivarelli; Peter Voigt
  8. Effect of finance on growth through more efficient utilization of technological innovations By Ikonen, Pasi
  9. The optimal design of rewards in contests By Kaplan, Todd R; Wettstein, David
  10. Heterogeneity in R&D Cooperation: An Empirical Investigation By Oliviero Carboni
  11. Closing the technology gap? By Castellacci, Fulvio
  12. Subsidy Policy for Innovation : A way to reach objectives of both higher growth and equity ? By Benjamin Montmartin
  13. Innovation spillovers in industrial cities By Laura Crispin; Subhra B. Saha; Bruce A. Weinberg
  14. Opportunities and Benefits as Determinants of the Direction of Scientific Research By Mikko Packalen; Jay Bhattacharya
  15. Are knowledge-bases enough? A comparative study of the geography of knowledge sources in China (Great Beijing) and India (Pune) By Chaminade, Cristina
  16. The Effectiveness of Virtual R&D Teams in SMEs: Experiences of Malaysian SMEs By Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
  17. Climate Policy and Technological Innovation and Transfer: An Overview of Trends and Recent Empirical Results By Ivan Hašcic; Nick Johnstone; Fleur Watson; Chris Kaminker
  18. The Patent Troll Business: An Efficient model to enforce IPR? By Pohlmann, Tim; Opitz, Marieke
  19. Advertising and R&D: Theory and evidence from France By Philippe Askenazy; Thomas Breda; Delphine Irac
  20. From Basic Research to Innovation: Entrepreneurial Intermediaries for Research Commercialization at Swedish ‘Strong Research Environments’ By Kitagawa, Fumi; Wigren, Caroline
  21. The Porter Hypothesis at 20: Can Environmental Regulation Enhance Innovation and Competitiveness? By Ambec, Stefan; Cohen, Mark; Elgie, Stewart; Lanoie, Paul
  22. Interrupted innovation: Innovation system dynamics in latecomer aerospace industries By Vertesy, Daniel; Szirmai, Adam
  23. Japan’s Quest for Growth: Exploring the Role of Capital and Innovation By Murtaza H. Syed; Jinsook Lee
  24. Employee motivation and organizational impact of innovation on employee satisfaction By Fuksová, Nadežda; Chajdiak, Jozef
  25. Assessment of science and technology indicators in Sudan By Nour, Samia Satti Osman Mohamed
  26. Ownership Structure and Productivity of Vertical Research Collaboration By NAGAOKA Sadao
  27. Technological regimes, Schumpeterian patterns of innovation and firm level productivity growth By Castellacci, Fulvio; Zheng, Jinghai

  1. By: Zukauskaite, Elena (CIRCLE, Lund University)
    Abstract: This paper analyses the role of university knowledge in innovation processes of cultural industries. Most of the previous studies on cultural industries highlighted the importance of locally clustered firms in innovation processes. Studies, analyzing university-industry collaboration focused on technological development or industrial R&D, neglecting cultural industries as object of analysis. The paper addresses this gap in the literature while analyzing collaboration with university patterns and innovation processes of new media firms in Scania, Southern Sweden. The findings reveal that innovation, influenced by industry-academia collaboration, takes place not only in technology based industries. Collaborative aspects of innovation process go beyond R&D transfer and include joint competence building, changes in market concepts and new social corporate responsibility actions. This paper adds to the understanding of innovation processes in cultural industries by introducing university as one more important actor in the knowledge exchange networks.
    Keywords: University-industry collaboration; innovation; cultural industries; new media; knowledge exchange
    JEL: O30
    Date: 2010–11–01
  2. By: Corinne Autant-Bernard (Université de Lyon, Lyon, F-69003, France ; Université Jean Monnet ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France); Jean-Pascal Guironnet (Université de Caen, CREM CNRS 6211); Nadine Massard (Université de Lyon, Lyon, F-69003, France ; Université Jean Monnet ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France)
    Abstract: Using a sample of 46 000 EU firms from the Community Innovation Survey, this paper analyses the drivers of innovation adoption. In contrast to most empirical studies on innovation diffusion in which a specific technology is analyzed, this study covers several countries and industries in the European Union. Following Van de Ven and Van Praag (1981), Heckman’s method is applied in a context of binary endogenous variable to explain the choices made by firms regarding innovation. Distinctions are made between the internal generation of innovation and the adoption of innovation produced by others, as well as between different types of adoption (product vs. process and cooperation-based adoption vs. isolated adoption). The study is focused on the impact of users’ features and their cooperation with suppliers on the adoption choices. The results point out that cooperation is a key driver of adoption choices. Usual determinants such as firm size, absorptive capability or exports would foster generation of innovation instead of adoption.
    Keywords: Innovation adoption, Innovation diffusion, Community Innovation Survey, Process adoption, Product adoption
    Date: 2010
  3. By: Michele Cincera (Solvay Brussels School of Economics and Management, Université Libre de Bruxelles); Claudio Cozza (Fondazione Formit); Alexander Tübke (JRC-IPTS); Peter Voigt (JRC-IPTS)
    Abstract: This study investigates how corporate R&D evolves in the light of the contemporary economic crisis. We investigate what empirical evidence from past downturns suggests, discuss the relevant literature and perform an empirical analysis of recent business survey data (collected during 2009). We question whether companies tend to spend more or less on R&D and innovation activities during periods of recession and analyse empirically what general patterns can be distinguished in this regard, given the particular circumstances of the most recent crisis. Our findings suggest that company behaviour varies: some companies have reduced their innovation activities significantly, while others maintained them and a third group even increased their activities to reap the benefits in the expected upswing afterwards. Overall, we observe a deceleration of R&D and innovation activities in the light of the crisis, but the trend figures remain positive. Driven by the companies that reinforce their R&D and innovation efforts to thrive through the downturn and thus seek to gather the benefits in the upswing to come, the R&D and innovation landscape is likely to look different in the aftermath of the crisis. These changes will inevitably affect policy intervention in the field of innovation and are a unique chance for the reorientation of policy measures. More profoundly, they could be at the roots of a new paradigm, departing from a transition from an industrial to a knowledge-based society.
    Keywords: Corporate R&D investments, innovation activities, company strategy, economic crisis, R&D globalization
    JEL: F01 O33
    Date: 2010–12
  4. By: Padmashree Gehl Sampath
    Abstract: An analysis of the innovation in the Indian pharmaceutical industry is done. This section traces the origins, the strengths and weaknesses of the innovation system in the pharmaceutical sector in India, and its industrial structure and activities, in order to establish the importance of the Indian industry for access to medicines in the developing world today. This section also arrives upon a categorization of firms in the Indian industry, based on empirical data, which is used in the rest of the study to draw conclusions on various issues. A discussio of the main changes that are forcing a transition in the industry today, of which the introduction of product patent protection is the main one.
    Keywords: firms, product patent, industry, protection, empirical data, innovation, Indian pharmaceutical industry, developing world, transition,
    Date: 2010
  5. By: Francesco Bogliacino (European Commission, JRC-IPTS); Marco Vivarelli (Università Cattolica)
    Abstract: In this study we use a unique database covering 25 manufacturing and service sectors for 16 European countries over the period 1996-2005, for a total of 2,295 observations, and apply GMM-SYS panel estimations of a demand-for-labour equation augmented with technology. We find that R&D expenditures have a job-creating effect, in accordance with the previous theoretical and empirical literature discussed in the paper. Interestingly enough, the labour-friendly nature of R&D emerges in both the flow and the stock specifications. These findings provide further justification for the European Lisbon-Barcelona targets.
    Keywords: Technological change, corporate R&D, employment, product innovation, GMMSYS
    JEL: O33
    Date: 2010
  6. By: Martin, Roman (CIRCLE, Lund University); Moodysson, Jerker (CIRCLE, Lund University); Zukauskaite, Elena (CIRCLE, Lund University)
    Abstract: This paper deals with policy measures in the regional innovation system of Scania, Southern Sweden. Focus is dedicated to requirements on innovation policy from actors representing different industries. Previous studies have identified profound differences with regard the organization of knowledge sourcing between firms and other actors in industries drawing on different knowledge bases. In correspondence with these findings, industries differ also with regard to how policy measures aiming to support innovation are perceived and acquired. Despite this, there is a tendency among regional policy programs to base their strategies on one ‘best practice’-model, inspired by successful (or sometimes less successful) cases in other parts of the world. The paper presents an in-depth analysis of such policy support targeting three industries located in one region, and ends with a suggestion to how those should be adapted to render influence on the institutional framework of the regional innovation system.
    Keywords: innovation policy; regional innovation systems; knowledge bases; Sweden
    JEL: O30 O38
    Date: 2010–11–01
  7. By: Subal C. Kumbhakar (State University of New York at Binghamton); Raquel Ortega-Argilés (IN+ Centre for Innovation, Technology and Policy Research, Instituto Superior Técnico); Lesley Potters (Utrecht School of Economics); Marco Vivarelli (Università Cattolica, Milano-Piacenza); Peter Voigt (JRC-IPTS)
    Abstract: The main objective of this study is to investigate the impact of corporate R&D activities on firm performance, measured by labour productivity. To this end, the stochastic frontier technique is used on a unique unbalanced longitudinal dataset on top European R&D investors over the period 2000–2005. The study quantifies technical inefficiency of individual firms. From a policy perspective, the results of this study suggest that – if the aim is to leverage firms’ productivity – emphasis should be put on supporting corporate R&D in high-tech sectors and, to some ex-tent, in medium-tech sectors. On the other hand, corporate R&D in the low-tech sector is found to have a minor effect in explaining productivity. Instead, encouraging investment in fixed assets appears important for the productivity of low-tech industries. Hence, the allocation of support for corporate R&D seems to be as important as its overall increase and an ‘erga omnes’ approach across all sectors appears inappropriate. However, with regard to technical efficiency, R&D intensity is found to be a pivotal factor in explaining firm efficiency. This is true for all industries.
    Keywords: Corporate R&D, productivity, technical efficiency, stochastic frontier analysis
    JEL: L2 O3
    Date: 2010–12
  8. By: Ikonen, Pasi (Bank of Finland Research)
    Abstract: This paper models the effects of financial development on economic growth through better or more efficient utilization of technological innovations. The model is based on the endogenous growth theory of Aghion and Howitt and its derivatives, especially the growth model of Aghion, Howitt and Mayer-Foulkes, which covers the effect of financial development on convergence. The main contribution of this paper is to model the innovation channel of finance explicitly. The paper focuses particularly on the interaction term between the measure of own innovation and financial development. As countries approach the technological frontier, own innovation becomes more important to sustain a high growth rate. An adequate level of financial development is needed to realize the full potential of own innovation for economic growth. The data covers the period 1960–2007 for anvanced economies, emerging markets and some other countries for which data are available. In estimation of the model, different regression specifications for the data panel are applied. The robustness of the results is also tested in several ways. The results show a significant and positive sign for the interaction term between the measure of own innovation and financial development in the most important configurations. This suggests that the innovation channel of finance is likely to have a positive role to play in economic growth.
    Keywords: endogenous growth; innovation; financial development; growth empirics
    JEL: O31 O33 O47
    Date: 2010–12–23
  9. By: Kaplan, Todd R; Wettstein, David
    Abstract: Using contests to generate innovation has and is widely used. Such contests often involve offering a prize that depends upon the accomplishment (effort). Using an all-pay auction as a model of a contest, we determine the optimal reward for inducing innovation. In a symmetric environment, we find that the reward should be set to c(x)/c′(x) where c is the cost of producing an innovation of level x. In an asymmetric environment with two firms, we find that it is optimal to set different rewards for each firm. There are cases where this can be replicated by a single reward that depends upon accomplishments of both contestants.
    Keywords: contests; innovation; mechanism design.
    JEL: D44 C70 O32 L12
    Date: 2010–12–05
  10. By: Oliviero Carboni
    Abstract: This work explores the roles of potential simultaneity and heterogeneity in determining firms decisions to engage in R&D collaboration, using a sample of Italian manufacturing firms. Partnerships with other firms, research institutions, universities and other small centres are considered jointly by applying a multivariate probit specification. This allows for systematic correlations among different cooperation choices. The results support the hypothesis that the four cooperation decisions are interdependent. The decision to cooperate in R&D differs significantly depending on the cooperation options. Public support, the researcher intensity and the size are all of importance in determining R&D alliance strategies.
    Keywords: Applied Econometrics; R&D cooperation; firm behaviour
    JEL: C24 D21 O31 O32
    Date: 2010
  11. By: Castellacci, Fulvio
    Abstract: This paper focuses on the dimensions shaping the dynamics of technology. We present a model where the knowledge stock of a country grows over time as a function of three main factors: its innovation intensity, its technological infrastructures and its human capital. The latter two variables contribute to determine the absorptive capacity of a country as well as its innovative ability. Based on this theoretical framework, we carry out an empirical analysis that investigates the dynamics of technology in a large sample of developed and developing economies in the last two-decade period, and studies its relationships with the growth of income per capita in a dynamic panel model setting. The results indicate that the cross-country distributions of technological infrastructures and human capital have experienced a process of convergence, whereas the innovative intensity is characterized by increasing polarization between rich and poor economies. Thus, while the conditions for catching up have generally improved, the increasing innovation gap represents a major factor behind the observed differences in income per capita.
    Keywords: Growth and development; technology gap; absorptive capacity; innovation; polarization; twin-peaks
    JEL: O11 O33 O40
    Date: 2010
  12. By: Benjamin Montmartin (Université de Lyon, Lyon, F-69003, France ; Université Jean Monnet ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France)
    Abstract: Since the Lisbon Agenda (2000), the European Union policies are increasingly oriented towards innovation as attested to by the deep change of the new Regional Policy. This paper proposes an analysis of an innovation subsidy policy in an agglomeration and growth model à la Martin and Ottaviano (1999). In this two-regions model, we assume that the policy is implemented by a central authority that taxes the profit of industrial firms to subsidy employment in innovative activities. We show that the positive effects on growth and equity of such a policy, as highlighted by Martin (1999), hold in the case where the policy is not geographically differentiated. In the case where the government however grants larger subsidies to the poorer region in order to reduce the concentration of the innovative sector, we show that the policy can be inefficient if it is not of sufficient magnitude.
    Keywords: economic geography, endogenous growth, public policy, subsidies,Regional Policy
    JEL: F43 H50 O30 R12
    Date: 2010
  13. By: Laura Crispin; Subhra B. Saha; Bruce A. Weinberg
    Abstract: Older, industrial cities have suffered with the shift from manufacturing to services, but the increased importance of innovation as an economic driver may help industrial cities, which are often rich in the institutions that generate innovation. This paper studies how innovation is related to wages for different types of workers (e.g., more-educated versus less, and younger versus older) and to real estate prices for cities. We also study industrial and occupational employment shares. Our estimates indicate that innovation and aggregate education are associated with greater productivity in cities. They indicate that innovation and aggregate education impact wages less in industrial cities, but that they impact real estate prices more. We also find greater effects of innovation and aggregate education for more-educated and prime-aged workers. We pay particular attention to controlling for causality and adjustments of factor inputs.
    Keywords: Cities and towns ; Education - Economic aspects
    Date: 2010
  14. By: Mikko Packalen (Department of Economics, University of Waterloo); Jay Bhattacharya (Stanford University School of Medicine)
    Abstract: Scientific research and private-sector technological innovation are different in terms of objectives, constraints, and organizational forms. For example, the for-profit objective that drives private-sector innovation is absent from much of scientific research, and individual researchers have many times more control in scientific research than in private-sector innovation. These differences and the lack of any obvious objective that would drive the direction of scientific research raise the possibility that the direction of scientific research is exogenous in the sense that it may not be influenced by factors such as the quality of research opportunities and the expected benefit from research that not only drive private-sector innovation but also in part determine the socially optimal allocation of research. Alternatively, some--yet largely unexplored--mechanisms drive also the direction of scientific research to respond to these factors. In this paper we test these two competing hypotheses of scientific research. In particular, we examine whether the composition of medical research responds to changes in disease prevalence and research opportunities. The extent of inventive activity is measured from the MEDLINE database on 16 million biomedical publications. We match these data with data on disease prevalence. We develop and apply a method for estimating the quality of research opportunities from structural productivity parameters. Our results show that the direction of medical research responds to changes in disease prevalence and research opportunities.
    JEL: O31 O33 I12 L65
    Date: 2010–12
  15. By: Chaminade, Cristina (CIRCLE, Lund University)
    Abstract: This paper focuses on the organization and geography of interactions between firms and other organizations in two industries: software and autoparts. In contrast to most recent literature in economic geography that argues that industries differ in their knowledge bases and that consequently different industries show different patterns of local-global interactions, our results show stronger differences between regions in the same industry than between industries in the same region, thus pointing out to other factors explaining the geography of innovation in that particular industry.
    Keywords: internationalization; innovation; Pune; Beijing; region
    JEL: O30
    Date: 2010–12–01
  16. By: Ale Ebrahim, Nader; Ahmed, Shamsuddin; Abdul Rashid, Salwa Hanim; Taha, Zahari
    Abstract: The number of small and medium enterprises (SMEs), especially those involved with research and development (R&D) programs and employed virtual teams to create the greatest competitive advantage from limited labor are increasing. Global and localized virtual R&D teams are believed to have a high potential for SMEs growth. Due to the fast growing complexity of the new product, coupled with new emerging opportunities of virtual teams, a collaborative approach is believed to be the future trend. This research explores the effectiveness of virtuality in SMEs virtual R&D teams. An online questionnaire emailed to Malaysian manufacturing SMEs and 74 usable questionnaires were received, representing a 20.8 percent return rate. To avoid the bias that may result from pre-suggested answer, a series of open-ended questions asked from expertise. This study based on analyzing an open-ended question; extract four main themes among expertise recommendations on the effectiveness of virtual teams for SMEs growth and performance. These are suitable for SMEs new product design manager to realize the key advantage and importance of virtual R&D teams in the process of NPD, which lead to increase the effectiveness of the new product's procedure.
    Keywords: Virtual teams; New product development; Survey finding; Small and medium Enterprises.
    JEL: G14 O32 M12 L7 M11 M1 O3 L15 P4
    Date: 2010–06
  17. By: Ivan Hašcic; Nick Johnstone; Fleur Watson; Chris Kaminker
    Abstract: Technological innovation can lower the cost of achieving environmental objectives. As such, understanding the linkages between environmental policy and technological innovation in achieving environmental objectives is important. This is particularly true in the area of climate change, where the economic costs of slowing the rate of change are affected to a great extent by the rate of innovation. This paper provides evidence on the generation and international diffusion of selected climate change mitigation technologies (CCMTs) and their respective links to key policies. The data covers a selection of technology fields (renewable energy and ‘clean’ coal) and all countries over the last 30-35 years.<BR>L’innovation technologique peut abaisser le coût de la réalisation des objectifs environnementaux. A ce titre, il importe de comprendre les liens entre politique de l’environnement et innovation technologique dans la mise en oeuvre des objectifs, notamment dans le domaine du changement climatique, où le taux d’innovation a une forte incidence sur les coûts économiques du ralentissement du phénomène. Le présent ouvrage fournit des données sur la création et la diffusion internationale de certaines technologies d’atténuation du changement climatique, et sur leurs liens avec les principales initiatives des pouvoirs publics. Les données portent sur un éventail de domaines technologiques (énergies renouvelables et charbon propre) et, pour tous les pays, sur les 30 à 35 dernières années.
    Keywords: environmental policy, innovation, technology transfer, climate change, politique environnementale, innovation, changement climatique, transfert de technologie
    JEL: O31 O33 Q42 Q54 Q55
    Date: 2010–12–15
  18. By: Pohlmann, Tim; Opitz, Marieke
    Abstract: Patent trolls have many faces, since the media uses this expression in various ways. The patent troll phenomenon thus seems to be an ambiguous term that is discussed in several directions. This paper reveals that a patent troll as such has no distinct shape or appearance. Our analysis redeems a troll classification solely from firms’ market position, such as being non-practicing, and shows that a patent troll business can only be defined by the respective activities to enforce IPR. Using 10 cases, of which five are treated in detail, the analysis reveals a distinct typology of the troll business. This paper is furthermore able to identify troll behavior to be: a) an efficient mechanism to enforce IP rights and b) a strategy that yields excessive license fees and causes inefficient negotiation costs.
    Keywords: Patent Trolls; Patent Sharks Patent Strategies; Patent Failure
    JEL: O34 K00 M10
    Date: 2010–11–01
  19. By: Philippe Askenazy; Thomas Breda; Delphine Irac
    Abstract: This paper exploits a unique panel of 59,000 French firms over 1990-2004 to investigate the interactions between R&D, advertising and the competitive environment. The empirical findings confirm the predictions of a dynamic model that complements results known in static frameworks. First, more competition pushes Neck and Neck firms to advertise more to attract a larger share of consumers on their products or services. Second, for a given competitive environment, quality leaders spend more in advertising in order to extract maximal rents; thus, lower costs of ads may favor R&D.
    Date: 2010
  20. By: Kitagawa, Fumi (University of Bristol); Wigren, Caroline (CIRCLE, Lund University)
    Abstract: The recent rise in university-industry partnerships has stimulated an important public policy debate degrading the theoretical rationale for government support for knowledge transfer/exchanges from higher education sector. This paper draws on a particular case study conducted at Lund University, which is the largest comprehensive research university in Sweden. We ask the role of fundamental research at the university and organizational responses to growing expectations with respect to its subsequent use and applications, particularly those of ‘Centres of research excellence’. We identify new forms of intermediary organizations as ‘brokers on the boundaries’ which bridge the gap between everyday scientific activities of researchers, entrepreneurial activities of academics, and more centralized forms of strategic initiatives taken by an ‘entrepreneurial university’ as an organizational actor. The paper concludes by identifying organizational strategic choices and constraints, and implications for rapidly changing higher education and research policies in Sweden and beyond.
    Keywords: Academic Entrepreneurship; Sweden
    JEL: O30
    Date: 2010–01–01
  21. By: Ambec, Stefan; Cohen, Mark; Elgie, Stewart; Lanoie, Paul
    Date: 2010–09
  22. By: Vertesy, Daniel (UNU-MERIT); Szirmai, Adam (UNU-MERIT, and Maastricht Graduate School of Governance)
    Abstract: In this paper we analyse the role of sectoral innovation systems in the emergence and catch-up of aerospace industries in latecomer economies. We argue that the aerospace sector is characterized by a process of interrupted innovation. Competitive pressures and the cyclical nature of the industry not only require shifts in the direction of innovation and changes in the production system, but also periodical restructuring of the whole sectoral system of innovation. Aerospace manufacturing requires advanced technological capabilities at the earliest stages of the emergence of the industry. Producers immediately need to comply with high international technology, quality and safety standards. Stage models of gradual technological upgrading in the process of catch up are therefore not appropriate to analyse the evolution of this industry in latecomer economies. The model of interrupted innovation developed in this paper provides an alternative perspective. In country case studies of Brazil, China, Indonesia and Argentina, we show how changes in the global competitive landscape and major political developments trigger crises in the industry, with which existing systems of innovation are unable to cope. Competitive pressures periodically require the industry to reinvent itself almost from scratch. We conclude that the emerging economies that have succeeded in catching up in aerospace are those that have established a competitive industrial sector with a sectoral innovation system which is able to adapt flexibly to radically changing circumstances.
    Keywords: aerospace manufacturing, sectoral innovation systems, system dynamics, latecomer industrialization, technological capabilities
    JEL: L62 O14 O31 O32 O33 O38
    Date: 2010
  23. By: Murtaza H. Syed; Jinsook Lee
    Abstract: As labor input in Japan shrinks with population aging, capital accumulation and productivity gains will drive growth over the medium-term. At the same time, a changing global landscape calls for a shift in export-oriented investment toward new markets and a new generation of products, as well as increased investment by domestically-oriented firms. What policies could be adopted to help firms adjust to the imperatives of the post-crisis global economy and boost medium-term growth? Using disaggregated data, this paper investigates the determinants of investment and R&D spending by Japanese firms. The results suggest that policies could usefully focus on four areas. First, raising the return on investment, including through reforms to the tax code. Second, decreasing uncertainty through improved risk management by firms and by bolstering the business climate. Third, improving SME access to finance, notably by encouraging venture capital investment in innovative areas and more risk-based lending. And fourth, reducing excess leverage and supporting corporate restructuring to enable new investments to flourish.
    Date: 2010–12–17
  24. By: Fuksová, Nadežda; Chajdiak, Jozef
    Abstract: Work motivation, like all motivational processes, is also subject to change as a function of the external forces that comprise an individual’s world. Recent advances in work motivation offer a plethora of opportunities for scientists and organizational practitioners interested in the understanding, prediction, and remediation of issues pertaining to how, why, and when individuals engage and invest attention, energy, time, and other personal resources in their work. The future of many businesses depends upon their ability to innovate. The company culture and leadership are the two prominent barriers to innovation. If a company's culture isn't set-up to accept new ideas and creative contributions from its staff then inventions will be unable to break through to the marketplace. The organization may be structured so that the development of an innovation is more challenging than at another business. This confining structure can be physical or, alternatively, systemic in terms of the company's culture. Motivation and commitment of workers, professionals and managers are being increasingly realized as critical factors for the company success.
    Keywords: Employee motivation; innovations; management systems
    JEL: O15
    Date: 2010–06–10
  25. By: Nour, Samia Satti Osman Mohamed (Faculty of Economic and Social Studies, Khartoum University, and UNU-MERIT)
    Abstract: This paper employs both the descriptive and comparative approaches and uses the Organisation for Economic Cooperation and Development's definition of Science and Technology (S&T) indicators (OECD, 1997) to discuss S&T development in Sudan. We find that the low level and the insufficient financial and human resources devoted to S&T development together with inadequate economic structures mean that Sudan lags behind the leading developing countries in terms of S&T input-output indicators. We find that the insufficient financial and human resources hampered the potential role of R&D to contribute toward economic development, adaptation to imported technologies and development of local technologies in Sudan.
    Keywords: S&T, R&D, Economic Development, Sudan, Developing Countries
    JEL: O10 O11 O30
    Date: 2010
  26. By: NAGAOKA Sadao
    Abstract: This paper analyzes empirically how significantly the existence of non-contractible research effort by a vertical partner (as measured by a provision of a co-inventor) affects the ownership structure of vertical collaborative research and whether such effort also significantly enhances research productivity, exploiting rich information at the project level provided by a large scale inventor survey in Japan. Participation of a supplier co-inventor significantly enhances research productivity and is also a very significant determinant of the ownership structure, controlling for the initial knowledge contribution and the financial contribution by a supplier. On the other hand, while a user co-inventor affects the ownership structure even more predominantly, it contributes much less to the productivity of joint research. Such a gap may be partly explained by the necessity of a user to combine relevant patents. Finally, the willingness to license is not lower for a vertically co-owned patent, even if co-ownership partly substitutes a license. This suggests that co-ownership does not significantly constrain licensing, even if ex-post agreement for a license becomes necessary.
    Date: 2010–12
  27. By: Castellacci, Fulvio; Zheng, Jinghai
    Abstract: The paper investigates the relationships between technological regimes and firm-level productivity performance, and it explores how such a relationship differs in different Schumpeterian patterns of innovation. The analysis makes use of a rich dataset containing data on innovation and other economic characteristics of a large representative sample of Norwegian firms in manufacturing and service industries for the period 1998-2004. First, we decompose TFP growth into technical progress and efficiency changes by means of data envelopment analysis. We then estimate an empirical model that relates these two productivity components to the characteristics of technological regimes and a set of other firm-specific factors. The results indicate that: (1) TFP growth has mainly been achieved through technical progress, while technical efficiency has on average decreased; (2) the characteristics of technological regimes are important determinants of firm-level productivity growth, but their impacts on technical progress are different from the effects on efficiency change; (3) the estimated model works differently in the two Schumpeterian regimes. Technical progress has been more dynamic in Schumpeter Mark II industries, while efficiency change has been more important in Schumpeter Mark I markets.
    Keywords: TFP growth; technical progress; technical efficiency; technological regimes; Schumpeterian patterns of innovation; CIS data
    JEL: L0 O1
    Date: 2010

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