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on Innovation |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholars have sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:1913225&r=ino |
| By: | Bronwyn H. Hall; Christian Helmers |
| Abstract: | This paper explores the characteristics of 238 patents on 94 “inventions” contributed by major multinational innovators to the “Eco-Patent Commons”, which provides royalty-free access to third parties to patented climate change related innovations. By comparing the pledged patents to other patents in the same technologies or held by the same multinationals, we investigate the motives of the contributing firms as well as the potential for such commons to encourage innovation and diffusion of climate change related technologies. This study, therefore, indirectly provides evidence on the role of patents in the development and diffusion of green technologies. More generally, the paper sheds light on the performance of hybrid forms of knowledge management that combine open innovation and patenting. |
| JEL: | H23 H42 K11 O33 O34 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:16920&r=ino |
| By: | TSUKADA Naotoshi; NAGAOKA Sadao |
| Abstract: | This paper analyzes how standards as a knowledge source are important for R&D, how significantly the (backward) citations by a patent of standard-related documents measure such knowledge flow, and how significantly they affect the performance of downstream R&D. Using both the RIETI inventor survey in Japan and the bibliographic information of triadic patents families, we show that standard information-that embodied in the standards and related documents-has become very important as a knowledge source for the conception of R&D projects in the information and telecommunication area (ICT), and that the frequency of the patents citing standard documents has been increasing. The citation information in US patent documents can be effectively used to measure the knowledge flows from standards to inventions, although it covers only a limited portion of the knowledge flow. The R&D projects intensively using standard information tend to generate valuable patents and also a large number of patents, controlling for research labor input, the use of scientific literature, as well as that of patent literature. A patent that uses private international forum standards as a knowledge source is significantly more cited than a patent that uses national or international public standards as a knowledge source. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11018&r=ino |
| By: | Bruno Van Pottelsberghe; Pierre M. Picard |
| Abstract: | The present paper discusses the role of quality in patent systems from the perspective of patent offices'behavior and organization. After documenting original stylized facts, the paper presents a model in which patent offices set patent fees and the quality level of their examination processes. Various objectives of patent offices' governors are considered. We show that the quality of the patent system is maximal for the patent offices that maximises either the social welfare or its own profit. Quality is lower for the self-funded patent office maximizing the number of patent applications and even smaller for the self-funded patent office maximizing the number of granted patents. A labor union improves examination quality and may compensate for the potentialy inappropriate objectives of patent office management. |
| Keywords: | Patent system; Quality; intellectual property; Public firm organization |
| JEL: | L30 O30 O31 O34 O38 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/82355&r=ino |
| By: | Juan Pablo Montero. |
| Abstract: | It is widely accepted that one of the most important characteristics of an effective climate policy is to provide firms with credible incentives to make long-run investments in R&D that can drastically reduce emissions. Recognizing that a government may be tempted to revise its policy design after innovations become available, this note shows how the performance of two policy instruments –prices (uniform taxes) and quantities (tradeable pollution permits)– differ in such a setting.I also discuss the gains from combining either instrument with subsidies to adopting firms. |
| Keywords: | Pollution control, Innovation, Commitment |
| JEL: | D42 Q55 Q58 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ioe:doctra:394&r=ino |
| By: | Parrotta, Pierpaolo (Department of Economics, Aarhus School of Business); Pozzoli, Dario (Department of Economics, Aarhus School of Business); Pytlikova, Mariola (Department of Economics, Aarhus School of Business) |
| Abstract: | This paper investigates the nexus between labor diversity and innovation in a population of Danish rms. Specically, exploiting information retrieved from a comprehensive linked employer-employee database and implementing a proper instrumental variable strategy, we are able to identify the contribution of diversity in cultural background, skills and demographic characteristics to valuable rm's innovation activity. The latter is measured by: (1) the rm's propensity to apply for a patent, (2) the number of patent applications (intensive margin) and (3) the rm's ability to patent in dierent technological areas (extensive margin). We nd that skill diversity plays a key role in propelling rm's innovation outcomes. The positive inuence of heterogeneity in the ethnic dimension turns to be not negligible, too. Conversely, the eect of demographic diversity typically vanishes once detailed rm specic characteristics are included as control variables |
| Keywords: | Labor diversity; patenting activity; extensive and intensive margins; |
| JEL: | C23 J24 L20 |
| Date: | 2010–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:aareco:2010_015&r=ino |
| By: | Evita Paraskevopoulou |
| Abstract: | This paper contributes to research addressing interrelationships between technological and policy changes by exploring the co-evolution of sectoral regulation and technological innovation in the detergents industry in Europe. We view as regulation an endogenously created institution that evolves over time and in alignment with other socioeconomic factors, among which we focus on technological change. We argue that the innovation and regulation processes are evolutionary processes that interact overtime and their co-evolution is facilitated by knowledgeable and purposeful agents who wish to influence their institutional environment. Given our empirical context we find that the opportunity provided to private actors to participate in the policy process, share information and collaborate, contributes to the improvement of their knowledge. In turn, improved knowledge increases the innovative potential of actors while it builds their bargaining power and increases the possibilities private actors have to influence their institutional environment. Favorable institutional conditions have been recognized as a factor conductive to innovation and in this sense, we can witness a circular and interactive relationship between the regulatory and innovation process. |
| Keywords: | regulation, technological innovation, private-public interactions |
| Date: | 2011–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2011/10&r=ino |
| By: | Cooter, Robert D.; Edlin, Aaron |
| Abstract: | Many law and economics models concern static efficiency and redistribution. The standard analysis of dynamic industries requires lawmakers to balance faster innovation against lower consumer prices. Sustained growth dominates these effects, so law and growth economics should focus on maximizing it. Law can increase the growth rate by making innovation more profitable. We distinguish innovation into phases -- discovering ideas, developing them with capital and labor, and marketing innovations. Strengthening intellectual property law and weakening antitrust law increases the costs of developing ideas, and also increases the revenues from marketing innovations. To maximize the profitability of innovation, law should balance these two effects. We use these ideas to develop a framework for law and growth economics. |
| Keywords: | Law |
| Date: | 2011–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:oplwec:1915447&r=ino |
| By: | OWAN Hideo; NAGAOKA Sadao |
| Abstract: | This paper theoretically and empirically evaluates the relationship between the strength of inventors’ motives and their productivity, and the interaction between intrinsic and extrinsic motivation. For our empirical analyses, we use novel data from a survey of Japanese inventors on 5,278 patents conducted by the Research Institute of Economy, Trade and Industry (RIETI) in 2007 matched with a firm-level survey of remuneration policies for employee inventions conducted by the Institute of Intellectual Property (IIP) in 2005. The RIETI survey contains rich information about inventors, patents, and project characteristics, as well as two new measures of inventor productivity. Our study first reveals that satisfaction from contributing to science and technology and interest in solving challenging technical problems are highly associated with inventor productivity. Most notably, the science motivation measure has the largest and the most significant correlation with our measures of inventor productivity. Science orientation may be strongly associated with high R&D productivity because early access to scientific discoveries gives inventors an advantage or because interest in science correlates with inventive ability. However, careful analysis using additional measures of knowledge spillovers from academia and a proxy of inventor ability find little support for either explanation. This result makes the third explanation (science orientation) plausible, that is, the above two task motives simply encourage researchers to dedicate themselves to challenging projects. In order to explore further and based on our interpretation of motivation mentioned above, we present a principal-agent model where the agent selects the type of research projects and exerts effort in the presence of monetary incentives. The model offers the following two empirical implications: (a) firms with many intrinsically motivated employees are less likely to introduce revenue-based pay; and (b) the average value of patents is more positively correlated with the strength of intrinsic motivation in the absence of revenue-based pay than in its presence. Finally, we test the above empirical implications using the matched dataset from the RIETI and IIP surveys and we find little significant support for either prediction. We offer possible explanations for the result. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11022&r=ino |
| By: | Nwaobi, Godwin C |
| Abstract: | Since the mid 1900’s, economist have come to recognize the role of innovative activity in firms productivity growth, particularly in the competitive market economies. However, the most conducive market environment for innovative activity has also become a subject of interest. Thus, a major constraint on industrial dynamism in African countries is said to be the dearth of indigenous entrepreneurs. This paper therefore argued for the provision of comprehensive innovation policy, in which the government supports the innovators by providing appropriate financial measures; removing regulatory, institutional (competitive) obstacles to innovation; and strengthening the knowledge base through investment in education, research and industrial sites in Africa. |
| Keywords: | innovation policy; Africa; Nigeria; investment; productivity; science parks; business clusters; economic zones; inventions; free trade zones; cognitive revolution; industrial revolution; infrastructures; technology; research and development; venture capital |
| JEL: | Q50 R10 L90 D20 Q3 O32 L60 Q2 O30 Q40 L26 M13 O31 Q10 L70 |
| Date: | 2011–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:29728&r=ino |
| By: | Pablo D'Este; Frederick Guy; Simona Iammarino |
| Abstract: | Research collaborations between universities and industry (U-I) are considered to be one important channel of potential localised knowledge spillovers. These collaborations favour both intended and unintended flows of knowledge and facilitate learning processes between partners from different organisations. Despite the copious literature on localised knowledge spillovers, still little is known about the factors driving the formation of U-I research collaborations and, in particular, about the role that geographical proximity plays in the establishment of such relationships. Using collaborative research grants between universities and business firms awarded by the UK Engineering and Physical Sciences Research Council (EPSRC), in this paper we disentangle some of the conditions under which different kinds of proximity contribute to the formation of U-I research collaborations, focussing in particular on technological complementarity among the firms participating in such partnerships. |
| Keywords: | university-industry research collaborations, proximity, geography, industrial clustering, technological complementarity |
| JEL: | O31 O32 O33 R10 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1106&r=ino |
| By: | Néstor Duch-Brown (University of Barcelona & IEB); Javier García-Estévez (University of Barcelona & IEB) |
| Abstract: | Human capital, scientific research, and technology are the three chief mechanisms promoting knowledge spillovers from universities to firms. Based on a study of the impact of Spain’s 1983 University Reform Act (LRU), which opened the door to the foundation of new universities and faculties, this paper examines whether university (or faculty) location affects the creation of new firms within a given province. We conclude that the foundation of science and social science faculties has had a marked impact on the creation of firms. |
| Keywords: | universities, firm location, spillovers, poisson regression |
| JEL: | I23 O31 R12 R39 C23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2011/4/doc2011-7&r=ino |