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on Innovation |
| By: | Pradhan, Jaya Prakash |
| Abstract: | This study makes an early attempt to estimate the magnitude and intensity of manufacturing firms’ R&D by Indian states during the period 1991‒2008 and analyses the role of regional factors on firm-level R&D activities. As there is little research on state-wise R&D performance of firms in India, this study serves an important contribution to the academic and policy realm. It has brought out the fact the total manufacturing R&D investment in India is unevenly distributed regionally with a few states accounting for disproportionate share of it. Regional heterogeneity or inter-state disparities in R&D has increased between the 1990s and the first decade of the twenty-first century. In view of this persistent regional heterogeneity in R&D, the study has developed and estimated an empirical model for a sample of 4545 Indian manufacturing firms with R&D facilities located in single state and that explicitly includes regional factors as probable factors affecting R&D. The three-step Censored Quantitle Regression results confirm that regional factors play an important role in shaping the R&D intensity of the sample of firms. This led us to some useful policy suggestions for regional governments to promote local firms’ R&D activities. |
| Keywords: | Regional heterogeneity; R&D; manufacturing firms; Indian states; censored quantitle regression. |
| JEL: | O18 O30 O32 C21 L60 |
| Date: | 2011–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28096&r=ino |
| By: | Gallié, Emilie-Pauline; Legros, Diego |
| Abstract: | In attempting to appropriate their innovations, firms can choose from a range of mechanisms, including patents, trade secrets and lead-times. Yet, little is known about how firms choose different appropriability mechanisms. The aim of this paper is to determine how the use of intellectual property rights(IPs)by French firms is related to their characteristics, activities, competitive strategies and the industry sector in which they operate. Among their characteristics, we test the role of the human resource strategies in keeping employees. Our empirical model is based on the French 2004 Community Innovation Survey(CIS). Our results show that firms have different strategies in the choice of the means of protection according to their basic economic characteristics of firms, their activities and industry environment. They also put in evidence of the role of human resources strategies. Firms that finance R&D training prefer to use non-statutory means. |
| Keywords: | Appropriability; Intellectual property rights; Innovation; Human resources strategies; Multivariate probit; |
| JEL: | C35 O32 O34 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/5000&r=ino |
| By: | Nicholas Bloom; Mirko Draca; John Van Reenen |
| Abstract: | We examine the impact of Chinese import competition on patenting, IT, R&D and TFP using a panel of up to half a million firms over 1996-2007 across twelve European countries. We correct for endogeneity using the removal of product-specific quotas following China’s entry into the World Trade Organization. Chinese import competition had two effects: first, it led to increases in R&D, patenting, IT and TFP within firms; and second it reallocated employment between firms towards more innovative and technologically advanced firms. These within and between effects were about equal in magnitude, and appear to account for around 15% of European technology upgrading between 2000-2007. Rising Chinese import competition also led to falls in employment, profits, prices and the skill share. By contrast, import competition from developed countries had no effect on innovation. We develop a simple “trapped factor” model of innovation that is consistent with these empirical findings. |
| JEL: | F14 L25 L60 O33 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16717&r=ino |
| By: | Gallié, Emilie-Pauline; Legros, Diego |
| Abstract: | Human capital is considered as one of the main inputs in economic growth. Human capital can generate endogenous growth thanks to a continuous process of knowledge and externalities accumulation (Aghion and Howitt, 1998). In that context, this paper explores the relationship between innovation and vocational training. Our methodological approach allows to contribute to the literature in three manners. First, we propose different indicators of vocational training. Second, we build a count data panel with a long time data series. This deals with the issue of non-random selection and potentially with measurement error from short panels. Finally, we explicitly allow for endogeneity and fixed effects using GMM techniques. Estimations are made on a panel data set relative to French industrial firms over the period 1986-1992. Our results indicate that whatever the indicators, vocational training has a positive impact on the technological innovation. |
| Keywords: | count panel data; linear feedback model; patents; R&D; training; |
| JEL: | C23 C25 J24 L60 O31 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ner:dauphi:urn:hdl:123456789/5018&r=ino |
| By: | Siedschlag, Iulia; Zhang, Xiaoheng; Cahill, Brian |
| Abstract: | This paper examines the effects of the internationalisation of firms via foreign direct investment and trade on their innovation and productivity performance. Our econometric results suggest that foreign affiliates and domestic exporters were more likely to invest in innovation and furthermore that they were more likely to be more successful in terms of innovation output and higher productivity than firms that served only the domestic market. On average, innovation output was positively associated with labour productivity over and above other determinants. Access to external knowledge flows explain to a large extent the innovation performance of firms, in particular co-operation with suppliers, with consultants, commercial labs or private R&D institutes, with universities or other higher education institutions. |
| Keywords: | Productivity/Foreign direct investment/investment/exporters/education |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp363&r=ino |
| By: | Umberto Garfagnini; Bruno Strulovici |
| Abstract: | We analyze social learning and innovation in an overlapping generations model in which available technologies have correlated payoffs. Each generation experiments within a set of policies whose payoffs are initially unknown and drawn from the path of a Brownian motion with drift. Marginal innovation consists in choosing a technology within the convex hull of policies already explored and entails no direct cost. Radical innovation consists in experimenting beyond the frontier of that interval, and entails a cost that increases with the distance from the frontier, and may decrease with the best technology currently available. We study how successive generations alternate between radical and marginal innovation, in a pattern reminiscent of Schumpeterian cycles. Even when the underlying Brownian motion has a positive drift, radical innovation stops in finite time. New generations then fine-tune policies in search of a local optimum, converging to a single technology. Our analysis thus suggests that sustaining radical innovation in the long-run requires external intervention. |
| Keywords: | Schumpeter cycles, experimentation, social learning, R&D, intergenerational externalities JEL Classification Numbers: D83, D92, O3, O4 |
| Date: | 2010–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:nwu:cmsems:1516&r=ino |
| By: | Benjamin Montmartin (Université de Lyon, Lyon, F-69003, France ; Université Jean Monnet ; CNRS, GATE Lyon St Etienne, Saint-Etienne, F-42000, France) |
| Abstract: | Innovation policies are strategic tools for reinforcing long-term economic growth. If the literature highlights the need for coordination among national R&D policies, the need for transnational policies appears to be less clear. Using a model à la Martin and Ottaviano (1999), we conduct a welfare analysis in order to judge the effect of a centralized R&D subsidy policy. If theoretical results suggest that this policy can improve efficiency and equity, our welfare analysis shows that when there are few knowledge spillovers between countries, then the policy leads to a conflict of interest. In the case of strong international knowledge spillovers however, the conflict of interest disappears suggesting that innovation policies should first focus on the development of knowledge flows between countries. |
| Keywords: | agglomeration and growth models, innovation policy, welfare criteria |
| JEL: | F43 H50 R12 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1101&r=ino |
| By: | Bandick, Roger (Institute of Business and Technology); Görg, Holger (Kiel Institute for the World Economy and University of Kiel, Germany and CEPR); Karpaty, Patrik (Department of Business, Economics, Statistics and Informatics) |
| Abstract: | The aim of this paper is to evaluate the causal effect of foreign acquisition on R&D intensity in targeted domestic firms. We are able to distinguish domestic multinationals and non-multinationals, which allows us to investigate the fear that the change in ownership of domestic to foreign multinationals leads to a reduction in R&D activity in the country, as headquarter activities are relocated to the new owners home country. We use unique and rich firm level data for the Swedish manufacturing sector and different micro-econometric estimation strategies in order to control for the potential endogeneity of the acquisition dummy. Overall, our results give no support to the fears that foreign acquisition of domestic firms lead to a brain drain of R&D activity in Swedish MNEs. Rather, this paper finds robust evidence that foreign acquisitions lead to increasing R&D intensity in acquired domestic MNEs and non-MNEs. |
| Keywords: | Foreign acquisition; MNE; R&D |
| JEL: | F23 L10 L20 O30 |
| Date: | 2011–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:oruesi:2011_001&r=ino |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/1/doc2010-55&r=ino |
| By: | Federico Etro (Department of Economics, University Of Venice, Ca’ Foscari) |
| Abstract: | One of the pioneering works on endogenous market structures, by Tandon (1984), has extended the standard Cournot model with linear demand to endogenous entry and sunk R&D costs to show that the endogenous number of firms is independent from the size of the market. I generalize the model in many directions and show that, as long as the exogenous fixed costs are positive, the endogenous market structure is naturally characterized by an inverted-U relation between market size and number of firms, in line with the celebrated hypothesis of Sutton (1991). |
| Keywords: | Oligopoly, Endogenous entry, Sunk costs, RD investment |
| JEL: | L1 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2010_29&r=ino |
| By: | Néstor Duch-Brown (University of Barcelona & IEB); Martí Parellada-Sabata (University of Barcelona & IEB); Jose Polo-Otero (University of Barcelona & IEB & CYD foundation) |
| Abstract: | This paper empirically analyzes economies of scale and of scope in the production of research and technology transfer outputs in the Spanish public university system. We employ the flexible fixed cost quadratic function which relates total university R&D expenditure and the budget of the technology transfer offices with different outputs of research and technology transfer, from which we then compute the ray economies of scale, the specific economies of scale and the economies of scope. Our results indicate that ray economies of scale and research specific economies of scale hold up to 100% of current mean expenditure. The technology transfer product specific economies of scale hold up to 150% of current mean of the R&D expenditure. Our results also show that cost subadditivity acts a positive constraint, from which we infer the presence of economies of scope. |
| Keywords: | Multi-product cost function, economies of scale and scope, research and technology transfer |
| JEL: | I21 I23 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2010/11/doc2010-51&r=ino |
| By: | Phillip Toner |
| Abstract: | This paper provides an account of the main approaches, debates and evidence in the literature on the role of workforce skills in the innovation process in developed economies. It draws on multiple sources including the innovation studies discipline, neoclassical Human Capital theory, institutionalist labour market studies and the work organisation discipline. Extensive use is also made of official survey data to describe and quantify the diversity of skills and occupations involved in specific types of innovation activities. |
| Date: | 2011–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2011/1-en&r=ino |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); Siegel, Donald (SUNY Albany); Van Fleet, David (Arizona State University) |
| Abstract: | Most studies of the effects of the Bayh-Dole Act have focused on universities. In contrast, we analyze patenting activity at two prominent national laboratories, Sandia National Laboratories and the National Institute of Standards and Technology before and after the enactment of this legislation and the Stevenson-Wydler Act. It appears as though the enactment of Bayh-Dole and the Stevenson-Wydler Act were not sufficient to induce an increase in patenting at these labs. However, the establishment of financial incentive systems, embodied in passage of the Federal Technology Transfer Act, as well as the allocation of internal resources to support technology transfer, stimulated an increase in such activity. |
| Keywords: | U.S. National Laboratories; Patenting; Technology Transfer; Bayh-Dole Act; Stevenson-Wydler Act; Federal Technology Transfer Act |
| JEL: | H10 O30 |
| Date: | 2011–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2010_013&r=ino |
| By: | Chris Papageorgiou (Louisiana State University); Fidel Pérez Sebastián (Universidad de Alicante); María Dolores Guilló Fuentes (Universidad de Alicante) |
| Abstract: | This paper uses dynamic general equilibrium and computational methods, inspired by the multi-sector growth model structure in Stephen Turnovsky’s previous and more recent work, to develop a theory that unifies two of the traditional explanations of structural change: sector-biased technical change and non-homothetic preferences. More specifically, we build a multisector overlapping generations growth model with endogenous technical-change and non-homothetic preferences based on an expanding-variety setup with two different R&D technologies; one for agriculture, and another for non-agriculture. Results give additional support to the biased technical-change hypothesis as an important determinant of the structural transformation. The paper also explores where this bias might come from. Our findings suggest that production-side specific factors, such as asymmetries in cross-sector knowledge spillovers could be behind it, and therefore be important to fully explain the process of structural change. |
| Keywords: | multi-sector growth model, structural change, agriculture and non-agriculture, R&D, directed innovation, hon-homothetic preferences. |
| JEL: | O13 O14 O41 |
| Date: | 2010–01 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasad:2010-34&r=ino |
| By: | Tomaru, Yoshihiro |
| Abstract: | This paper studies a public firm's incentive to raise its productive efficiency by undertaking cost-reducing R&D investment when it competes against a foreign private firm. Our focus is to ravel out how a decrease in an importing tariff levied on foreign goods affects this investment level inter alia. We show that when the government imposes non-negative tariffs, a tariff reduction lowers the R&D investment, irrespective of whether the public firm has downward or upward sloping reaction curve. Namely, R&D investment conducted by the public firm is substitutable to an importing tariff. Furthermore, under a linear demand assumption, it is concluded that a tariff reduction necessarily enhances world welfare if both R&D investment and tariffs are set to domestic welfare-maximizing levels. More strict assumptions on marginal cost and R&D cost function make complete trade liberalization desirable from the viewpoint of world welfare. |
| Keywords: | Mixed Oligopoly; R&D; Trade Liberalization |
| JEL: | L32 F13 L13 |
| Date: | 2010–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28173&r=ino |
| By: | Anderson, Robert; Cohen, Mark A. (Resources for the Future); Macauley, Molly K. (Resources for the Future); Richardson, Nathan (Resources for the Future); Stern, Adam (Resources for the Future) |
| Abstract: | The Deepwater Horizon oil spill in the Gulf of Mexico in April 2010 led to the deaths of 11 workers, a six-month moratorium on deepwater drilling in the Gulf, and nearly three months of massive engineering and logistics efforts to stop the spill. The series of failures before the well was finally capped and the spill contained revealed an inability to deal effectively with a well in deepwater and ultradeepwater. Ensuring that containment capabilities are adequate for drilling operations at these depths is therefore a salient challenge for government and industry. In this paper we assess the Marine Well Containment Company (MWCC), a consortium aimed at designing and building a system capable of containing future deepwater spills in the Gulf. We also consider alternatives for long-term readiness for deepwater spill containment. We focus on the roles of liability and regulation as determinants of readiness and the adequacy of incentives for technological innovation in oil spill containment technology to keep pace with advances in deepwater drilling capability. Liability and regulation can significantly influence the strength of these incentives. In addition, we discuss appropriate governance structure as a major determinant of the effectiveness of MWCC. |
| Keywords: | oil spill, containment, industry R&D, liability, regulation, governance, innovation |
| JEL: | Q4 Q55 K3 |
| Date: | 2011–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-10-63&r=ino |
| By: | Bohnstedt, Anna (University of Duisburg-Essen); Schwarz, Christian (University of Duisburg-Essen); Suedekum, Jens (University of Duisburg-Essen) |
| Abstract: | We develop a general equilibrium model of international trade with heterogeneous firms, where countries can invest into basic research to improve their technological potential. These research investments tighten firm selection and raise the average productivity of firms in the market, thereby implying lower consumer prices and higher welfare. In an open economy, there is also a strategic investment motive since a higher technological potential gives domestic firms a competitive advantage in trade. Countries tend to over-invest due to this strategic motive. There are thus welfare gains from coordinating research investments. The over-investment problem turns to an under-investment problem if there are sufficiently strong cross-country spillovers of basic research investments. |
| Keywords: | public research investments, public R&D, international trade, heterogeneous firms, basic research, strategic trade policy |
| JEL: | F12 F13 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5405&r=ino |