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on Innovation |
| By: | Ernst, Christof; Spengel, Christoph |
| Abstract: | The focus of this paper is on effects from tax incentives for research and development inputs (R&D) and corporate income tax on business R&D and patenting behaviour. First, we provide a theoretical discussion of tax planning with R&D and intellectual property (IP) ownership. Further, we employ firm-specific micro-data on patent applications of European corporations at the European Patent Office to test reactions on changes in R&D tax incentives and corporate tax burden. We find a positive impact of R&D tax incentives and a negative impact of the statutory corporate income tax rate on patenting. R&D incentives rather influence the tendency to invest in R&D, whereas the tax burden rather influences the scale of R&D investment and the count of patent applications. -- |
| Keywords: | Patent,R&D,Tax Incentives,Taxation,EU |
| JEL: | H25 H26 O30 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11024&r=ino |
| By: | Boeing, Philipp; Sandner, Philipp |
| Abstract: | The objective of this paper is to investigate the innovative performance of China's NIS in international comparison and the capacity of China's NIS in creating indigenous innovation. We provide insights drawing upon patent data and using patent families to determine the value of the underlying invention. For the timeframe we studied, China's comparative advantage exists in the creation of low value innovative performance, albeit increasingly in huge quantities. Constantly rising volumes of patent applications mirror both, the improved protection of intellectual property rights and increasing capacity for inventiveness. Supplemented by the continuous growth of the Chinese economy, improving conditions are reflected and reinforced by more R&D-intense FDI. Foreign firms' innovative performance associated with higher economic value is particularly strong. -- |
| Keywords: | National Innovation System,Innovative Performance,China,Patents,Innovation Policy |
| JEL: | O53 O47 O34 P27 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fsfmwp:158&r=ino |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholarshave 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: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:1911035&r=ino |
| By: | Beyer, Mila; Czarnitzki, Dirk; Kraft, Kornelius |
| Abstract: | Principle-agent theory suggests managers might under-invest into R&D for reasons of risk tied to project failure, such as reduced remuneration and job loss. However, managers might over-invest into innovation for reasons of growth implying higher remuneration, power and prestige. Using a sample of 1,406 Belgian firms, we find, first, that managers holding no company shares under-invest into R&D compared to owners giving rise to the risk argument. Second, we find an inverse u-shaped relationship between the degree of managerial ownership and R&D. Thus, managers become entrenched, i.e. powerful enough to pursue their own interests. When entrenched, managers do not fear detrimental effects of risky innovation projects on their career, and hence tend to over-invest into innovation. -- |
| Keywords: | corporate governance,managerial ownership,entrenchment,innovation,R&D investments |
| JEL: | G32 O31 O32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11026&r=ino |
| By: | Czarnitzki, Dirk; Hussinger, Katrin; Leten, Bart |
| Abstract: | There is a growing literature that aims at assessing the private value of knowledge assets and patents. It has been shown that patents and their quality as measured by citations received by future patents contribute significantly to the market value of firms beyond their R&D stocks. This paper goes one step further and distinguishes between different types of forward citations patents can receive at the European Patent Office. While a patent can be cited as non-infringing state of the art, it can also be cited because it threatens the novelty of patent applications ('blocking citations'). Empirical results from a market value model for a sample of large, R&D-intensive U.S., European and Japanese firms show that patents frequently cited as blocking references have a higher economic value for their owners than patents cited for nonblocking reasons. This finding adds to the patent value literature by showing that different types of patent citations carry different information on the economic value of patents. The result further suggests that the total number of forward citations can be an imprecise measure of patent value. -- |
| Keywords: | Market Value,Patents,Citations,Patent Value |
| JEL: | O31 O34 O38 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11021&r=ino |
| By: | Rogge, Karoline S.; Schleich, Joachim; Haussmann, Philipp; Roser, Annette; Reitze, Felix |
| Abstract: | Based on a research framework which combines environmental economics and innovation studies, we explore the relevance of the regulatory framework for innovation activities in the German paper industry, with a focus on climate poli-cies. Innovation activities considered include research and development, adop-tion and organizational change. Empirically, we mainly rely on the survey data of paper producers and technology providers. Findings suggest that innovation activities are mainly governed by market factors and (as yet) are hardly affected by the European Emission Trading System and other climate policies. Also, the impact of these policies on innovation activities is lower for technology providers than for paper producers. However, the majority of companies expect the ef-fects of the regulatory climate policy framework on innovation to increase by 2020. -- |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s12011&r=ino |
| By: | Neuhäusler, Peter; Frietsch, Rainer; Schubert, Torben; Blind, Knut |
| Abstract: | The following article systematically analyzes the question of how the results of R&D and its protection - or so to say, the technology base of a firm - can influence its market value and profits. Based on theoretical arguments it is hypothesized that large and highly valuable patent portfolios of firms have significant effects on their competitiveness in the long run. For the empirical testing a panel dataset including 479 firms from 1990 to 2007 based on the DTI-Scoreboard is used, which contains data on R&D expenditures, market capitalization, turnover etc. and structural information like firm-size and industry sector. To this database the relevant information on patenting behavior and financial performance are added, so effects of firm characteristics can be calculated. To assess the value of a firm's patent portfolio, different value measures like the number of received patent citations, opposed patents, number of inventors etc. are being applied. The results suggest that at least at the firm level, especially forward citations and family size positively influence market value. Concerning the Return on Investment, especially oppositions and family size show positive effects. This leads to the conclusion that securing international markets has a positive effect on the value of the firm in the home market. -- |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:28&r=ino |
| By: | Ivan Ledezma (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, LEDa - DIAL - Laboratoire d'Economie de Dauphine - Economie de la mondialisation et du développement - Université Paris Dauphine - Paris IX : EA4404, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | This paper analyses the potentially defensive behaviour of successful innovators and its effect on aggregate R&D effort. It proposes a quality-ladders model that endogenously determines leader's technology advantages and who innovate (the leader firm or its competitors). Regulation can have either a positive or a negative effect on R&D intensity. It can be negatively associated to aggregate innovative effort in higly deregulated economies. In more regulated ones, where deterring strategies are constrained, it yields incentives to innovate. These predictions are consistent with data on manufacturing industries of 14 OECD countries between 1987-2003. |
| Keywords: | innovative leaders ; quality ladders ; R&D, regulation ; industry-level data |
| Date: | 2011–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00586709&r=ino |
| By: | López, Alberto |
| Abstract: | Microaggregation is a technique for masking confidential data by aggregation. The aim of this paper is to analyze the extent to which microaggregated data can be used for rigorous empirical research. In doing this, I adopt an empirical perspective. I use data from the Technological Innovation Panel (PITEC) and compare regression results using both original and anonymized data. PITEC is a new firm-level panel data base for innovative activities of Spanish firms based on CIS data. I find that the microaggregation procedure used has a slight effect on the coefficient estimates and their estimated standard errors, especially when estimating linear models. |
| Keywords: | Microaggregation; Individual ranking; Bias; Innovation data |
| JEL: | O30 C80 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30403&r=ino |
| By: | Simone Strambach (Department of Geography, Philipps University Marburg); Iris Dieterich (Department of Geography, Philipps University Marburg) |
| Abstract: | The paper focuses on the territorial shaping of knowledge dynamics as one of the driving forces for innovation. Knowledge dynamics are unfolding from processes of creation, use, transformation and diffusion of knowledge. Due to both the ongoing restructuring of global value chains and the changes in the organization of innovation ‘combinatorial knowledge dynamics’ gain a more prominent role in innovation. Firms are facing an increasing need to combine heterogeneous knowledge sources spread over organizational, technological, sectoral and spatial boundaries in innovation processes. Combinatorial knowledge dynamics imply to cope with many different cognitive, technological, intra- and inter-organizational and institutional interfaces. Deeper empirical investigation in the connected organizational and institutional change linked with knowledge dynamics is still missing, but is indeed necessary to better understand the spatio-temporality of knowledge dynamics behind innovation. Addressing the connection of space as a scope of action and space as being generated as a part of the social process, the paper chose a biographical method to explore knowledge dynamics. |
| Keywords: | Innovation, territorial knowledge dynamics, automotive industry, Baden-Württemberg |
| JEL: | D83 L62 O32 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2011-01&r=ino |
| By: | Reynald-Alexandre Laurent (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - Ecole des Ponts ParisTech - Ecole Normale Supérieure de Paris - ENS Paris, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris) |
| Abstract: | This paper considers a probabilistic duopoly in which products are described by their specific attributes, this form of differentiation embodying the horizontal and vertical dimensions. Consumers make discrete choices and follow a random decision rule based on these attributes. A three-stage game is studied in which firms develop new attributes for their products (innovation), then may imitate the attributes of the competing product and finally compete in price. At the equilibrium, the firm selling the less appreciated product is generally incited to imitate its rival. Confronted to a threat of imitation, the benchmark firm sometimes decreases strategically its attribute index in order to diminish its unit cost of innovation and the differentiation on the market, deterring the imitation in this way. This strategy is efficient when imitation costs are sufficiently concave. In the opposite case, it is preferable for the benchmark firm to accept the imitation. Thus, according to the shape of imitation costs, equilibria with "deterrence" or with "accommodation" "accommodation" occur, completing the current typology of strategic responses to a threat of imitation. |
| Keywords: | quality choices ; differentiation by attributes ; product innovation, product imitation |
| Date: | 2011–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-00586867&r=ino |
| By: | Kaiser, Ulrich (University of Zurich); Kongsted, Hans Christian (University of Copenhagen); Rønde, Thomas (Copenhagen Business School) |
| Abstract: | We study the mapping between labor mobility and industrial innovative activity for the population of R&D active Danish firms observed between 1999 and 2004. Our study documents a positive relationship between the number of workers who join a firm and the firm's innovative activity. This relationship is stronger if workers join from innovative firms. We also find evidence for positive feedback from workers who leave for an innovative firm, presumably because the worker who left stays in contact with their former colleagues. This implies that the positive feedback ("social network effects") that has been found by other studies not only exists but even outweighs the disruption and loss of knowledge occurring to the previous employer from the worker leaving. Summing up the effects of joining and leaving workers, we find ample evidence for mobility to be associated with an increase in total innovative activity of the new and the old employer. |
| Keywords: | labor mobility, innovation, social network |
| JEL: | O33 O34 C23 |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5654&r=ino |
| By: | Horbach, Jens; Rammer, Christian; Rennings, Klaus |
| Abstract: | Empirical analyses of the determinants of environmental innovations were rarely able to distinguish between different areas of environmental impacts. The paper tries to close this gap by employing a new and unique dataset based on the German Community Innovation Survey conducted in 2009. The main purpose of the paper is to test whether different types of eco-innovations (according to their environmental impacts) are driven by different factors. Besides a complex set of different supply, firm specific and demand factors, the literature on the determinants of environmental innovations accentuates the important role of regulation, cost savings and customer benefits. We find that current and expected government regulation is particularly important for pushing firms to reduce air (e.g. CO₂, SO₂ or NOₓ) as well as water or noise emissions, avoid hazardous substances and increase recyclability of products. Cost savings are an important motivation for reducing energy and material use, pointing to the role of energy and raw materials prices as well as taxation as drivers for eco-innovation. Customer requirements are another important source for eco-innovations, particularly with regard to products with improved environmental performance and process innovations that increase material efficiency, reduce energy consumption and waste and the use of dangerous substances. Firms confirm a high importance of expected future regulations for all environmental product innovations. -- |
| Keywords: | Environmental Innovation,Environmental Impacts,Discrete Choice Models,Regulation,Cost Savings,Demand Pull,Environmental Policy |
| JEL: | Q55 O33 O38 C25 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11027&r=ino |
| By: | Wagner, Rodrigo; Zahler, Andrés |
| Abstract: | Since Arrow (1962), spillovers from pioneer to follower in non-excludable innovations are central to our understanding of endogenous economic growth. Nonetheless, evidence of these spillovers in less-developed economies has been elusive. Our paper contributes by showing novel facts consistent with externalities in new export products. To avoid biases towards ex-post successes, we use data on the universe of customs transactions from Chile (1990- 2006). We find that, first, follower firms are more likely to enter a product if the pioneer firm survives exporting. More importantly, we also find that pioneers enter and remain smaller than followers, which is indicative that the first exporter may not be the firm that benets the most from the discovery. This fact is inconsistent with the currently standard view in international trade, in which the largest firm would be the first willing to pay a homogeneous sunk cost of exporting. In contrast, our facts are consistent with the view that smaller pioneer exporters are data producers, whose spillovers benet larger followers. We offer a simple model to formalize this intuition, based on the idea that large exporters have more choices on how to allocate their managerial capacity. This real option makes large exporters wait, as to assign their marginal manager on the best possible project. In contrast, smaller and more focused firms prefer to be pioneers. |
| Keywords: | economic growth; innovation; externalities; first-mover-advantage |
| JEL: | F14 L26 O40 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:30312&r=ino |