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on Innovation |
| By: | Peters, Bettina; Schmiele, Anja |
| Abstract: | Recent years have shown a surge of firms globalising their innovation activities in order to gain from international knowledge. This paper evaluates this strategy by investigating whether firms with international R&D are more innovative than firms doing R&D only in their home country. One main novelty is that we shed light on two competing hypotheses whether stronger dispersed international R&D activities hamper or stimulate innovation. Second, we employ two well-established market-based indicators for innovation (introduction of and sales growth rates due to new products) instead of looking at inventions (patents). Using German CIS data for about 2100 firms, the econometric results show that firms with international R&D are more likely to launch new products (firm and market novelties) than firms with home-based R&D only. They are also more successful in terms of higher sales growth with firm novelties. However, given the introduction of a market novelty, the location of R&D doesn't matter for the sales growth with market novelties. The results concerning the degree of R&D internationalisation are mixed: The likelihood of introducing firm novelties increases with a stronger dispersion of foreign R&D activities (for market novelties only up to a specific point). The relationship between degree of R&D internationalisation and innovation success turns out to be inverse u-shaped. -- |
| Keywords: | R&D,Internationalisation,Innovation performance,Decentralisation |
| JEL: | O32 F23 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10102&r=ino |
| By: | Edwards, Mónica; Castro- Martinez, Elena; Fernández-de-Lucio, Ignacio |
| Abstract: | This paper examines co-operative innovation and research and development (R&D) behaviour between Argentine and Spanish firms. Based on theoretical perspectives from the literature, we surveyed a sample of 540 Argentine and Spanish firms believed to have cooperated for technological innovation. We present empirical evidence based on 104 firms of patterns of cooperation in several processes and out-puts, highlighting firm characteristics, the motives of the collaborating parties, types of partners and R&D and innovation activities, leadership, and obstacles to cooperation. Our results reveal that the determinants of success differ considerably among countries depending on the sector, the firm specific characteristics and funding. These differences have important implications for public policy and instruments to support R&D and innovation activities. |
| Keywords: | innovation, R&D; international cooperation; cooperation types; barriers; government funding programmes |
| Date: | 2010–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201013&r=ino |
| By: | Schmiele, Anja |
| Abstract: | This paper aims at analysing the risk of intellectual property (IP) infringements by competitors from abroad and in particular whether this risk is higher for international innovating firms. We distinguish three different types of IP infringements from abroad: the usage of firms' technical inventions, product piracy and copying of corporate names and designs. Our analysis rests on the German data from the Europe-wide Community Innovation Survey (CIS). We use a unique data set of about 900 observations which are retrieved from two survey waves. While the earlier wave contains information about international and domestic innovation activities the later wave reports IP infringements. In a second analysis, the likelihood of infringements from innovation host countries and no innovation host countries abroad is examined. Before the empirical analysis, an explorative study has been carried out in China with interviews of German firms with innovation activities in China and with a legal advisor for small and medium sized German enterprises. The results show that firms with international R&D activities are increasing their chances to lose technological knowledge to their local competitors abroad. R&D activities in countries with weak intellectual property rights increase the risk for all types of infringement. Infringements by competitors from the host country are driven by the production of innovations in this country. Export intensity is the major driver of infringements from no innovation host countries. R&D activities in China and North America also increase the risk of an infringement. However, firms that innovate only in their home country experience significantly more product piracy cases than internationally innovating firms. -- |
| Keywords: | R&D,innovation,internationalisation,intellectual property,infringement |
| JEL: | O32 O34 F23 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10099&r=ino |
| By: | Korkeamäki, Timo; Takalo, Tuomas |
| Abstract: | We estimate the private value of Apple’s iPhone by observing abnormal stock market reactions to news announcements and patent publications related to the innovation. Our estimate of the lower bound on the market valuation of iPhone is fairly high, at minimum 30 billion U.S. (event day) dollars. We find that patentable technology explains about 25% of that total value. We also find a weak negative reaction among Apple’s rivals to the news about iPhone but no significant reaction to the publication of patent documents concerning iPhone can be observed. The evidence suggests that the value of iPhone primarily stems from Apple’s management and marketing abilities and efforts rather than from underlying "hard" technologies and intellectual property. |
| Keywords: | innovation; R&D; patent; iPhone; valuation |
| JEL: | G14 O34 O32 |
| Date: | 2010–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28042&r=ino |
| By: | Andres Lopez (Centro de Investigaciones para la Transformación (CENIT), Buenos Aires, Argentina); Ana Maria Reynoso; Martin Rossi (Universidad de San Andrés, Buenos Aires, Argentina) |
| Abstract: | The main finding of this impact evaluation is that beneficiary firms of FONTAR as a whole and of ANR in particular, spend more on innovation activities such as research and development and purchase of technology. Increments in innovation expenditures are found even when the amount received by the program is netted out from the total amount spent, indicating that beneficiary firms are caused to privately finance part of the increment on innovation expenditures. This would support the additionality hypothesis against the crowding out hypothesis. What is more, empirical evidence suggests that funds spent on innovation activities are efficient in the sense that subsidized firm actually accomplish more innovations. Long run effects on productive performance could not be detected. |
| Keywords: | Innovation and R&D, Policy Evalution |
| JEL: | O32 O38 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:idb:ovewps:0310&r=ino |
| By: | Aloysius Gunadi, Brata |
| Abstract: | This research found most of the handicraft producers have conducted various innovations during last five years. The newest innovations are managerial innovation, marketing innovation and product innovation. Meanwhile, product innovation and managerial innovation are the most important innovations in enhancing the business performance. Based on the actors, innovation in this case could be classified as producer driven innovation. The main information source of product innovation, process innovation, and service innovation is the producer’s experiences itself. The study found that the role of social networks in the process of innovation activities is rather limited. This finding is also supported by a fact that the strongest social network of the producers is only the relation with family and close friend in term of their closeness, trust, and willingness to share information. Regression analysis also indicates the aggregate of social network elements does not influence the number of innovations. Components of social network that still show positive impact on the innovation are only the closeness with business partners and with members of other association. The study also suggest that research on the role of social network or social capital on innovations is need to consider more appropriate indicators of social networks. At the empirical level, differences in location or industry may require different indicators of social networks. |
| Keywords: | social network; innovation; handicraft industry |
| JEL: | O17 Z13 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28032&r=ino |
| By: | Jérôme Danguy; Gaétan de Rassenfosse; Bruno Van Pottelsberghe |
| Abstract: | This paper aims at contributing to the literature on the relationship between research efforts and patent counts. It is claimed that the “propensity-to-patent” should be split into an “appropriability propensity” and a “strategic propensity”. The empirical contribution is based on a unique panel dataset composed of 18 industries in 19 countries over 19 years, and relies on five alternative patent indicators. The results confirm that the distinction between the two types of propensity matter. The sharp increase in patenting observed in most patent offices seems to be due to greater internationalization of patents rather than to a burst in innovations. |
| Keywords: | propensity to patent, strategic propensity, appropriability,; research productivity |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/73257&r=ino |
| By: | Kampik, Franziska; Dachs, Bernhard |
| Abstract: | This paper analyzes cross-country differences in innovation behavior of subsidiaries of German multinational enterprises. The analysis is based on data from Community Innovation Survey (CIS4) and covers 16 European countries. We find considerable differences in innovation input intensity and innovation output intensity between German subsidiaries located in different European countries. Multivariate analysis reveals that these differences are largely related to firm characteristics. A significant relationship between firm-level innovation and host country characteristics can only be found for innovation output. |
| Keywords: | Internationalization of innovation; German multinational firms; innovation performance; Community Innovation Survey |
| JEL: | F23 O32 O31 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28102&r=ino |
| By: | Yoo, Youngjin |
| Abstract: | Developments in digital technology offer new opportunities to design new products and services. However, creating such digitalized products and services often creates new problems and challenges to firms that are trying to innovate. In this essay, we analyze the impact of digitalization of products and services on innovations. In particular, we argue that digitalization of products will lead to an emergence of new layered product architecture. The layered architecture is characterized by its generative design rules that connect loosely coupled heterogeneous layers. It is pregnant with the potential of unbounded innovations. The new product architecture will require organizations to adopt a new organizing logic of innovation that we dubbed as doubly distributed innovation network. Based on this analysis, we propose five key issues that future researchers need to explore. |
| Keywords: | innovation, innovation, product architecture, design rules |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:hit:iirwps:10-09&r=ino |
| By: | Simone Strambach (Department of Geography, Philipps University Marburg); Benjamin Klement (Department of Geography, Philipps University Marburg) |
| Abstract: | In recent years, innovation processes involve more heterogenous actors inside and outside the firm. Little is known however about the spatial impact of this organisational decomposition of innovation processes (ODIP): Does it lead to a geographical dispersion of innovation activities as well? Furthermore, which parts of the innovation process are carried out spatially or organisationally separated? To what extent are knowledge-creating activities subject to organisational decomposition? We propose the analytical ODIP framework which integrates research on innovation systems, global value chains and knowledge-intensive business services (KIBS). Thereby we provide a conceptual contribution to the debate on the globalisation of innovation in the identification of different modes of decomposed innovation processes by capturing the participating actors and their contribution in specific innovation events. The exploration of the spatial dimension of innovation processes in the software industry shows that the global-local dichotomy in the innovation debate does not suffice to describe their complex, multi-scalar nature. In analysing ODIP in a knowledge-intensive industry, we contribute to the debate about the ‘new geography of innovation’ by providing insights into the upgrading of subsidiary capabilities. |
| Keywords: | ODIP, innovation, software, territorial knowledge dynamics |
| JEL: | D83 F23 L14 L86 O32 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2010-06&r=ino |
| By: | Fernández de Pinedo, Nadia (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid); Pretel, David (Trinity Hall. University of Cambridge); Saiz, J. Patricio (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid) |
| Abstract: | This article examines the relationship between colonialism and technology transfer via the study of nineteenth century Cuban institutions dedicated to the stimulation of innovative activity, particularly the patent system. Preliminary findings suggest three noteworthy claims. First, during the nineteenth century Cuban Creole elites set up a ‘Colonial Innovation System’ made up of ‘sub-imperial’ institutions autonomously administered in a context where rival Atlantic empires functioned as a ‘shadow’ economic metropolis of Cuba. Second, despite having the same patent laws as metropolitan Spain, Cuban sugar elites obtained practical control and management of the patent sub-institution on the island. Third, this achievement led to an autonomous functioning of the patent system in Cuba that allowed sugar-mill owners to participate actively in the global networks of technological exchange and to generate higher levels of patent activity than in metropolitan Spain. |
| Keywords: | patents, sugar industry, colonialism, sub-imperial institutions, technology transfer. |
| JEL: | N46 N76 O31 O34 O38 O54 |
| Date: | 2010–10 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpapeh:201101&r=ino |
| By: | Della Malva, Antonio; Hussinger, Katrin |
| Abstract: | Corporate scientific publications are often presented as a strategic means for firms to create prior art with the objective to prevent others from patenting related inventions. This presumes that corporate publications enter the pool of prior art which is relevant to judge the novelty of patent applications at the patent office and that corporate science has the power to block patent applications. This paper analyses for the first time whether the presumed mechanism behind corporate publications as a means to preempt patents works. With focus on the semiconductor technology our results show that scientific publications by corporations challenge the novelty of patent applications at the European Patent Office (EPO) significantly more than other pieces of prior art. Detailed information from the EPO patent examination procedure allows us to show that corporate publications threaten the novelty of patent applications if combined with other pieces of prior art like patents (rather than as standalone documents). This supports the view that corporate scientific publishing can be an effective means for firms to protect their freedom to operate if used as a complementary part of a firms' overall IP protection strategy as proposed by scholars in the field of law and management science. -- |
| Keywords: | defensive corporate publishing,freedom to operate,patents,semiconductor |
| JEL: | O34 O32 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10098&r=ino |
| By: | Engelstätter, Benjamin; Sarbu, Miruna |
| Abstract: | This paper analyzes the relationship between service innovation and different types of enterprise software systems, i.e. standardized enterprise software designed to fit one certain business sector and enterprise software specifically customized for a single firm. Using firm-level data of a survey among ICT service providers and knowledge-intensive service providers in Germany, this is the first paper empirically analyzing whether both types of enterprise software foster innovation in the service sector. The analysis is based on a knowledge production function. The results reveal that there is no relationship between sector specific enterprise software and innovation activity while customized enterprise software is possibly related to the probability of service innovation. The results stay robust if former innovation activity and general openness to new technologies are controlled for. -- |
| Keywords: | enterprise systems,service innovation,customized enterprise software,sector specific enterprise software |
| JEL: | L10 M20 O31 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10100&r=ino |
| By: | Makó, Csaba; Csizmadia, Péter; Illéssy, Miklós; Iwasaki, Ichiro; Szanyi, Miklós |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:b38&r=ino |
| By: | Antti-Jussi Tahvanainen; Tuomo Nikulainen |
| Abstract: | For developed countries, continuous innovation has been a prerequisite for economic growth for some time. Because radical innovations often require considerable slack and freedom in researching the relevant underlying phenomena, universities are considered the primary loci for generating knowledge leading to radical leaps in the development of platforms on which future technologies build. Thus, to facilitate the improvement of premises for university research and its application in industry, much effort has been spent on understanding university innovation processes and the transfer of technology between universities and companies. Much of the research and the related discussions have been conducted on either the national, regional or organizational levels. The focus on institutional actors has largely orphaned another fundamentally important actor : the individual researcher. This report examines individual university researchers and their role in the commercialization of research in Finland. Based on a survey of roughly 2800 researchers active in different fields of science at 11 Finnish research universities, this report covers a variety of topics ranging from university-industry collaboration to ownership of intellectual property and the commercialization services provided to researchers. The primary theme uniting these topics, however, is the subjective motivation for researchers to engage in the commercialization of their research. Why do researchers cooperate with companies, and how do they expect to benefit from collaboration? What are the reasons why some researchers to commercialize their results, while others distance themselves from such endeavors? Do certain dedicated university services support researchers in their commercial ambitions or actually inhibit them? These are the specific questions this report seeks to descriptively answer. The results establish that commercial motives play only a minor role in the various activities in which researchers engage. For instance, potential commercial aspects have almost no impact on the choice of a researcher’s research orientation. Furthermore, direct industrial collaboration is relatively uncommon among researchers. Even those researchers that have experience with industry collaboration reported that collaboration mostly serves academic ends such as securing research funding and searching for new research ideas. In addition, only 10% of all researchers have received complementary business education. Given that approximately 40% of researchers are believed to have produced inventions with commercial potential, 10% seems a fairly small share. This is also reflected in the researchers’ clear lack of familiarity with the principles that govern the allocation of ownership rights to inventions that arise from academic research, a prerequisite to any commercial endeavors. In parallel with these findings, the propensity of researchers to commercialize their results is much less affected by economic factors such as potential economic returns than it is by altruistic, socio-cultural, or personal motives. This makes designing proper incentive mechanisms difficult. The three most important factors mentioned by inventors who have made the decision to facilitate the commercialization of their inventions include (i) the inventions’ potential to have a beneficial impact on society, (ii) the researchers’ ambition of self-fulfillment and (iii) securing funding for academic research. Societal goals and reasons related to pure intrinsic ambition seem to dominate other motives. It seems that commercialization and related economic aspects bear little value to researchers. Regarding support in commercialization, Finnish researchers are quite satisfied with the services provided to them by their respective research and innovation service units. Only a closer look at the possible needs of researchers and the degree that the service units match these needs through services reveals the true challenges regarding the operation of the units. In fact, the match between needs and provided services seems to be rather weak, and many researchers indicate that they do not need most of the services in the first place. This leads to only one conclusion : the service units are not an integral part of the university culture as yet. Being satisfied with services that do not match needs tells us that researchers have not yet embraced such services as a relevant part of their work or of the technology transfer process. To remedy this situation, much emphasis needs to be put on communicating the range of available services to the research community. This is a first step. The second step would be to design a set of services that address the true needs and ambitions of researchers and provide proper incentives for researchers to participate in the transfer of their research results. |
| Keywords: | commercialization of research, university-industry collaboration, motives for commercialization, challenges of commercialization, innovation support services |
| JEL: | O30 O38 O33 O34 |
| Date: | 2011–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1234&r=ino |
| By: | Waters, James |
| Abstract: | This paper adds to the literature on the Sarbanes-Oxley Act's net effects by looking at whether its passage was associated with a change in innovation and patenting. Its effects are separated into temporary uncertainty and changes in long term investment incentives in a dynamic programming problem faced by innovators who learn over time about SOX's effect. Innovation is found to fall under uncertainty for potential losses that are low relative to the potential profits. As companies learn, innovation rates readjust to SOX's long term persistent effect. We examine US patenting in stem cell technologies from 2001 to 2009 for SOX related changes. To reduce the dependence of our estimates on timing assumptions, we look for changes over the whole period. We firstly use a rolling break test with a single break point with Monte Carlo correction to p-values for search process endogeneity and MLE bias. Secondly, we run a hidden Markov model allowing for multiple states in the patent process and transitions between the states. We find a large and statistically significant change at a date consistent with a SOX effect under both testing methods. A three state hidden Markov model finds subsequent correction consistent with the theoretical model. Four competing explanations are found to account incompletely for the observed data. |
| Keywords: | Sarbanes-Oxley; investment; innovation; patents |
| JEL: | K2 O31 D92 |
| Date: | 2011–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28072&r=ino |
| By: | Christian Garavaglia (University of Milano-Bicocca, Faculty of Statistics - KITeS, Bocconi University, Milan, Italy); Franco Malerba (KITeS, Bocconi University, Milan, Italy - Bocconi University, Department of Economics); Luigi Orsenigo (KITeS, Bocconi University, Milan, Italy - DIMI, University of Brescia); Michele Pezzoni (KITeS, Bocconi University, Milan, Italy - DIMI, University of Brescia) |
| Abstract: | This paper examines how the nature of the technological regime governing innovative activities and the structure of demand interact in determining market structure, with specific reference to the pharmaceutical industry. The key question concerns the observation that - despite high degrees of R&Dand marketing-intensity - concentration has been consistently low during the whole evolution of the industry. Standard explanations of this phenomenon refer to the random nature of the innovative process, the patterns of imitation and the fragmented nature of the market into multiple, independent submarkets. We delve deeper into this issue by using an improved modified version of our previous “history-friendly” model of the evolution of pharmaceuticals. Thus, we explore how changes in the technological regime and/or in the structure of demand may generate or not substantially higher degrees of concentration. The main results are that, while technological regimes remain fundamental determinants of the patterns of innovation, demand structure plays indeed a crucial role in preventing the emergence of concentration through a partially endogenous process of discovery of new submarkets. However, it is not simply market fragmentation as such that produces this result, but rather the entity of the “prize” that innovators can gain relative to the overall size of the market. Similarities and differences with other approaches are also discussed. |
| Keywords: | Industrial dynamics, innovation, market structure, pharmaceuticals, History-Friendly model |
| JEL: | C63 L10 L65 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:cri:cespri:kites36_wp&r=ino |
| By: | Luis Olmos; Sophia Ruester; Siok Jen Liong; Jean-Michel Glachant |
| Abstract: | Several market failures, as well as other technical, economic and regulatory barriers to the market penetration of clean energy technologies result in under-investment of private innovators in RD&D. Therefore, public support is needed in order to induce innovations. Policy tools creating market conditions that are attractive for the exploitation of clean technologies (market pull) must be combined with other tools directly supporting the development of these technologies through the provision of public funds (technology push). Thereby, financing policy instruments should be chosen so that their characteristics match with those of the specific innovation process being targeted at the same time that social welfare is maximized. We develop an analytical framework to define the form of public support and to provide recommendations on the optimal choice of both technology push and market pull instruments. |
| Keywords: | clean energy technologies; innovation finance; public support; technology push; market pull |
| Date: | 2010–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2010/69&r=ino |
| By: | Tomohiro Machikita (Institute of Developing Economies (IDE/JETRO), Japan); Chi Binh Truong Thi (Institute for Industry Policy and Strategy, Vietnam); Yasushi Ueki (Bangkok Research Center, IDE/JETRO, Thailand) |
| Abstract: | Increasing wages in coastal areas and the risk of Yuan appreciation in China will encourage firms in China to adopt China plus One strategy. More firms establish plants in Vietnam to take advantage of supporting industries in China and hedge China risk. Hanoi and its surrounding region will be one of the main destinations for FDIs into manufacturing sectors. Although Vietnam can provide cheap labor forces, firms in Vietnam do not have sufficient technological and managerial capabilities to participate in international production networks. International technology transfer is needed for Vietnam to achieve international business standards. This paper presents firm-level evidence on process innovation through technology transfer to firms in Hanoi. We emphasize engineer exchanges as a channel of technology transfer. A case study of Japanese firm invested from China to establish a plant in Hanoi is also introduced to complement the empirical result. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:dpc:wpaper:1711&r=ino |
| By: | Antti-Jussi Tahvanainen; Raine Hermans |
| Abstract: | This inductive case study of 7 US university technology transfer offices (TTOs) examines the value added that TTOs contribute to university-industry technology transfer (UITT ). We therefore (i) characterize a set of central organizational TTO practices, (ii) describe how TTOs systemically manage intangible resources to generate these practices, and (iii) describe the conceptual mechanisms through which the practices add value to UITT. The results form an inductive framework that establishes the TTO as (i) a process catalyst that lowers the threshold of UITT stakeholders to engage in technology transfer and to maintain its sustainability, (ii) a knowledge converter that enables congruence between university technology and market needs, and (iii) an impact amplifier that alleviates problems related to the opportunistic incentive structures of UITT stakeholders and maximizes societal impact. The study thus provides new insights into the internal logic of the TTO production function by qualitatively expanding and refining our understanding of the value added generated by TTOs and by helping to comprehend the relationship between inputs and outputs that underlie it. |
| Keywords: | university-industry technology transfer, technology transfer office, organizational practices, intellectual capital, knowledge management |
| JEL: | O31 O32 O33 |
| Date: | 2011–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1236&r=ino |