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on Innovation |
| By: | Scherer, F. M. (Harvard Kennedy School) |
| Abstract: | A century ago, in 1911, the U.S. Supreme Court issued its path-breaking decision in the monopolization case against the Standard Oil Companies. Standard pleaded inter alia that its near-monopoly position was the result of superior innovation, citing in particular the Frasch-Burton process for refining the high-sulphur oil found around Lima, Ohio. This paper examines the role of Hermann Frasch in inventing and developing the desulphurization process, showing that Standard failed to recognize his inventive genius when he was its employee and purchased his rights and services only after he had applied the technique in his own Canadian company. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp11-008&r=ino |
| By: | Yasusada Murata; Ryo Nakajima; Ryosuke Okamoto; Ryuichi Tamura |
| Abstract: | We develop a new approach to localized knowledge spillovers by incorporating the concept of control patents (Jaffe, Trajtenberg and Henderson 1993) into the distance-based test of localization (Duranton and Overman, 2005). Using microgeographic data, we identify localization distance while allowing for cross-boundary spillovers, unlike the existing literature where the extent of localized knowledge spillovers is detected at the state or metropolitan statistical area level. We revisit the recent debate by Thompson and Fox-Kean (2005) and Henderson, Jaffe and Trajtenberg (2005) on the existence of localized knowledge spillovers, and find solid evidence supporting localization, even when finer controls are used. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:tsu:tewpjp:2010-010&r=ino |
| By: | Hottenrott, Hanna; Thorwarth, Susanne |
| Abstract: | University research provides valuable inputs to industrial innovation. It is therefore not surprising that private sector firms increasingly seek direct access through funding public R&D. This development, however, spurred concerns about possible negative long-run effects on scientific performance. While previous research has mainly focused on a potential crowding-out of scientific publications through commercialization activities such as patenting or the formation of spin-off companies, we study the effects of direct funding from industry on professors' publication and patenting efforts. Our analysis of a sample of 678 professors at 46 higher education institutions in Germany shows that a higher share of industry funding of a professor's research budget results in a lower publication outcome both in terms of quantity and quality in subsequent years. For patents, we find that industry funding increases their quality measured by patent citations. -- |
| Keywords: | Scientist Productivity,University Research,Patents,Research Funding,Technology Transfer |
| JEL: | O31 O32 O33 |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10105&r=ino |
| By: | Adão Carvalho (University of Évora and CEFAGE) |
| Abstract: | Although not new, tax incentives have known major changes over recent years and it is becoming an increasingly important instrument in the policy mix to stimulate private R&D in many countries around the world. The OECD reports three major trends: The implementation of R&D tax incentives schemes by a growing number of OECD and non- OECD countries; A steady substitution of direct funding schemes for tax incentives schemes to stimulate business R&D; The many changes to tax incentives schemes most countries have done to increase the levels of generosity and attractiveness. This paper attempts to explain the motives behind these trends in R&D policy to stimulate private R&D and takes a multi-level approach as the issue involves political, strategic and economic considerations. The reasons behind the growing preference for tax incentives go much beyond any possible advantage these policies might have over direct measures, and are also the consequence of a political change in the EU R&D policy after the Lisbon Strategy and the subsequent actions to stimulate R&D expenditures, a change in the economic rationale of public support of private R&D in face of the insufficiency of market failures to justify that public intervention in a new context characterised by a public determination to increase the amount of business R&D expenditures, and the growing competition between countries for international R&D investment. |
| Keywords: | Tax incentives; Business R&D; R&D policy. |
| JEL: | O38 H25 O31 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2011_04&r=ino |
| By: | Aoife Hanley; Wan-Hsin LIU; Andrea Vaona |
| Abstract: | This paper investigates the role of regional financial development, in addition to FDI, for regional innovation in China, using a more recent provincial dataset and more sophisticated panel data estimation techniques than previous studies. Two aspects of regional financial system development are considered: its financial depth and government intervention in the financial system. Estimation results show that the financial depth of a region has a significantly positive effect on regional innovation (patenting) performance. This positive effect is found to be higher for minor innovations such as external design patents than for more complicated innovations such as utility model patents and invention patents. Surprisingly, estimation results do not show that government financial system intervention reduces allocative efficiency of resources which would otherwise impede regional innovation performance |
| Keywords: | regional financial system, FDI, innovation, patent, regional study, China |
| JEL: | G20 O30 O53 R10 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1673&r=ino |
| By: | Adam Jaffe (Department of Economics, Brandeis University); Seth Werfel (Federal Reserve Bank of New York) |
| Abstract: | Neoclassical economic theory predicts that policies that discourage the consumption of a particular good will induce innovation in a socially desirable substitute. Evolutionary theory emphasizes the possibility of innovation waves associated with the identification of new dominant designs. We incorporate both of these possibilities in a model of the invention of new smoking cessation products, based on a new dataset of patents on such products from 1951-2004. We find that an increase in cigarette tax levels and smoking bans had no discernable impact on the industry-wide rate of invention in smoking cessation products. It does appear, however, that dominant designs did have substantial positive innovation effects. More specifically, the introduction of the nicotine gum and patch are estimated to have increased the rate of patenting activity in smoking cessation products by 60 and 79 percent, respectively, subject to a 10 percent rate of decay. Finally, these products had larger innovation effects at the firm level than among individual inventors. |
| Keywords: | Patents, Technological Change, Smoking Cessation Products, Cigarette Taxes |
| JEL: | O31 O38 H23 I18 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:brd:wpaper:09&r=ino |
| By: | Jeroen C.J.M. van den Bergh |
| Abstract: | There is currently much hope about environmental innovation and green technologies, notably as a response to the threat of climate change. This paper offers a critical perspective on the role of technological innovation to solving environmental problems, based on considering empirical economic studies, energy and environmental rebound, the energy return on energy investment (EROEI) of alternative energy technologies, and various crowding out effects. Features of green technologies and motives of green innovators are briefly discussed. This is followed by an examination of the desirable mix of environmental and innovation policies to stimulate environmental innovation, to escape current and to evade early new lock-ins, and to avoid the occurrence of a “green paradoxâ€. This involves an evaluation of specific policy instruments from an environmental innovation angle. An extended argument is offered to clarify that environmental (CO2) pricing is crucial – even though insufficient – for environmental innovation to deliver definite solutions. In other words, environmental innovation (policy) is no substitute for environmental regulation (through prices). The paper also discusses the importance for environmental innovation of international agreements for regulation of greenhouse gas emissions and international coordination of innovation efforts. |
| Keywords: | climate change; environmental regulation; EROEI; green paradox; rebound; sustainability transition; technological diversity Length 25 pages |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:esi:evopap:2010-23&r=ino |
| By: | Gál, Zoltán; Ptáček, Pavel |
| Abstract: | The paper focuses on the specific role of mid-range universities in knowledge transfer and explores the knowledge flows from these mid-range universities facing a number of extra constraints in transitional Central Eastern European (CEE) regions. Mid-range universities, very often located outside of the metropolitan regions, represent the keystones of regional innovation systems for the less developed regions where the “density of contacts” is much lower and possible spillovers emerge more sparsely. The first part of the paper focuses on the types of possible linkages between mid-range universities and industry, and limitations of these relations bringing examples from Western Europe where the position of universities in the collaboration with business sector and their role in the innovation system is quite different form their CEE counterparts. It is mainly due to the different development path of innovation systems and development trajectories in post-communist countries described in the paper. Based on case studies bringing examples mainly from the non-metropolitan regions of Hungary and the Czech Republic, where the number of constraints, such as the lack of critical mass in their techno-economic systems, the traditionally weaker role of university based experimental researches, the mismatch between the economic and knowledge sectors, the weak regional innovation systems and less intense university–industry links are the major impediments of knowledge transfer. The paper argues that ambitious university-based developmental models have to be revised in CEE regions and the future role of universities has to be reconsidered as potential engines of local economic development from a more realistic perspective. The paper also argues, that the regional techno-economic system needs to achieve a certain degree of maturity in order to be able to determine the foci of a research and innovation-oriented regional development within the reindustrializing CEE regions and makes policy recommendation for the mid-range universities to take on new role, which means a stronger regional engagement in also medium-tech innovations and in social and organizational innovation. |
| Keywords: | mid-range universities; knowledge transfer; non-metropolitan regions; Central & Eastern Europe; regional engagement; |
| JEL: | P36 I23 D83 O33 D8 O31 R11 |
| Date: | 2010–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28358&r=ino |
| By: | Nuno Boavida (IET, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia); Susana Martins Moretto (IET, Universidade Nova de Lisboa, Faculdade de Ciências e Tecnologia) |
| Abstract: | This paper analyses the application of the Innovation Scoring model and its results to the railway business branch of a foreign multinational. Results confirm some enrolment in non-core Research & Development connected to the commercial activity of selling trains. Two main determinants were found to support this enrolment: the impact of a new Portuguese law imposing R&D investment for public contracts; and a certain degree of openness in the multinational’s innovation strategy based on predictable growth for the Portuguese market. The study also confirms the usefulness of the Innovation Scoring model, leaving some suggestions for improvement such as tailoring for multi-decision centres, implementing it through a third party, reducing the number of questions and introduction of a product evaluation methodology. |
| Keywords: | Innovation Assessment; Railway; Policy; Scoring model; Multinational, Portugal |
| JEL: | O32 R42 |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ieu:wpaper:25&r=ino |