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on Innovation |
| By: | Parello, Carmelo Pierpaolo |
| Abstract: | In this paper we study the economic implications of IPR protection on corporate intelligence, R&D investment and economic growth. To accomplish this objective, we introduce trade secret and information leakage into a standard quality-ladder growth model and study the long-run implications of improving the privacy of firms' data. We find that reducing the set of practices of information gathering is more effective in protecting firms' privacy than strengthening trade secrets. |
| Keywords: | Quality-improvement; R&D; information leakages; corporate intelligence; growth. |
| JEL: | L51 D91 O32 K42 O33 |
| Date: | 2011–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31157&r=ino |
| By: | NAGAOKA Sadao; TSUKADA Naotoshi |
| Abstract: | This paper analyzes what types of R&D projects and R&D firms generate important spillover effects, and which are subject to funding constraints. It also analyzes what types of projects and firms are targeted for public support and whether the selection of targets is consistent with spillovers. Using data collected in an inventor survey conducted by the Research Institute of Economy, Trade and Industry and those in the Basic Survey of Business Activities by the Ministry of Economy, Trade and Industry, we focus primarily on corporate research projects. Major findings are as follows:<br /><br />Corporate research projects generate substantial spillovers. For example, about 20% of such projects involve basic research. At the same time, however, about 10% of corporate research projects have been delayed or scaled down due to funding constraints, and one quarter of them have faced constraints in funding commercialization investments. It has been also found that only 3% of Japanese corporate R&D projects receive public support, and 5.6% of the financially constrained projects receive such support.<br /><br />Our statistical analysis suggests that although the estimated conditions explaining public support for R&D are largely consistent with the estimated conditions explaining the spillovers as measured by the publication of scientific papers and the occurrence of serendipity, there are some gaps. Although a firm's highly intensive R&D and participation of a PhD inventor are estimated to be significant sources of spillovers, apparently they are not given high weights in terms of factors related to public support for R&D. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:11044&r=ino |
| By: | Andrea Fracasso; Giuseppe Vittucci Marzetti |
| Abstract: | In a much cited paper, Wolfgang Keller (Are international R&D spillovers trade-related? Analyzing spillovers among randomly matched trade partners, European Economic Review, 48, 1469-1481, 1998) claims that international R&D spillovers are global and trade-unrelated. In following works, Keller revisits his position and maintains that spillovers are localized because the tacit nature of knowledge favors the direct interaction among agents. Whether the international R&D spillovers are global and trade-related still remains a debated issue in the empirical literature. By adopting two empirical specifications that nest Keller’s models, we i) reject the hypothesis that international R&D spillovers are global and ii) show that these latter depend on both geographical distance and international trade. |
| Keywords: | International R&D spillovers, International technology diusion, Localized knowledge spillovers, Total Factor Productivity |
| JEL: | C23 F01 O30 O47 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1102&r=ino |
| By: | YOSHIKAWA Hiroshi; ANDO Koichi; MIYAKAWA Shuko |
| Abstract: | Technological progress, especially product innovation, plays an important part in generating economic growth under the conditions of low fertility and an aging population. Technological progress is typically measured by growth accounting, that is, total factor productivity (TFP). The analysis of IT products measured by TFP is certainly important, but it does not provide the whole picture regarding the contribution of IT products to economic growth. <br /><br />Based on our previous paper, this paper further explains the relationship between product innovation and TFP theoretically. To capture the wider picture of product innovation, Part II examines solar power and smart phones, both of which have shown remarkable demand-driven growth recently. Also, we discuss the role of intermediate goods for product innovation in a broad sense. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:11023&r=ino |
| By: | Rabah Amir (University of Arizona - University of Arizona); David Encaoua (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Yassine Lefouili (GREMAQ - Groupe de recherche en économie mathématique et quantitative - CNRS : UMR5604 - Université des Sciences Sociales - Toulouse I - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - INRA : UMR) |
| Abstract: | This paper explores a licensor's choice between charging a per-unit royalty or a fixed fee when her innovation is covered by a weak patent, i.e. a patent that is likely to be invali- dated by a court if challenged. Using a general model where the nature of competition is not speci ed, we show that the patent holder prefers to use a per-unit royalty scheme if the strategic e¤ect of an increase in a potential licensee's unit cost on the aggregate equi- librium pro t is positive. To show the mildness of the latter condition, we establish that it holds in a Cournot (resp. Bertrand) oligopoly with homegenous (resp. heterogenous) products under very general assumptions on the demands faced by rms. As a byproduct of our analysis, we contribute to the oligopoly literature by o¤ering some new insights of independent interest regarding the e¤ects of cost variations on Cournot and Bertrand equilibria. |
| Keywords: | Keywords: Licensing Schemes, Weak Patents, Patent Litigation. |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00595493&r=ino |
| By: | Kathrin Armbruster (University of Basel) |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2011/04&r=ino |
| By: | Nune Hovhannisyan; Wolfgang Keller |
| Abstract: | While it is well known that managers prefer in-person meetings for negotiating deals and selling their products, face-to-face communication may be particularly important for the transfer of technology because technology is best explained and demonstrated in person. This paper studies the role of short-term cross-border labor movements for innovation by estimating the recent impact of U.S. business travel to foreign countries on their patenting rates. Business travel is shown to have a significant effect up and beyond technology transfer through the channels of international trade and foreign direct investment. On average, a 10% increase in business travel leads to an increase in patenting by about 0.3%. We show that the technological knowledge of each business traveler matters by estimating a higher impact for travelers that originate in U.S. states with substantial innovation, such as California. Moreover, the business traveler effect on innovation also varies across industries. This study provides initial evidence that international air travel may be an important channel through which cross-country income differences can be reduced. We also discuss a number of policy issues in the context of short-term cross-border labor movements. |
| JEL: | F20 J61 O33 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17100&r=ino |
| By: | Andrea Fracasso; Giuseppe Vittucci Marzetti |
| Abstract: | Following Coe and Helpman (International R&D Spillovers, EER, 39, 859-887, 1995), the literature on the trade-related channels of international knowledge flows has flourished. Departing from Coe and Helpman's tenets on the proportionality of trade and productivity spillovers and thus relaxing the implicit assumption that the knowledge transferred internationally is physically embodied in the exchanged products, we test whether relatively strong bilateral trade relationships are significantly associated with important international R&D spillovers. Notably, we focus on refined measures of bilateral trade that account for country size, time-invariant pair-specific factors and time-varying country-specific factors. By distinguishing closer and more distant trade partners without weighting their R&D stocks for the bilateral trade flows, we show that trade is indeed an international transmission channel of knowledge even when distance and other pair specific time-invariant factors are taken into account. |
| Keywords: | International R&D spillovers, Total Factor Productivity, International trade network |
| JEL: | C23 F01 O30 O47 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1103&r=ino |
| By: | INOUE Hiroyasu; TAMADA Schumpeter |
| Abstract: | Many firms these days, forced by increasing international competition and an unstable economy, are opting to specialize rather than generalize as a way of maintaining their competitiveness. Consequently, firms cannot rely solely on themselves, but must cooperate by combining their advantages.<br /><br />To obtain the actual conditions for this cooperation, a multi-layered network based on two different types of data was investigated. The first type was transaction data from Japanese firms. The network created from the data included 961,363 firms and 7,808,760 links. The second type of data was from joint-patent applications in Japan. The joint-patent application network included 54,197 nodes and 154,205 links. These two networks were merged into one network. We analyzed the data from the viewpoint of input-output tables, the ERG model, and Bayesian networks. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:11024&r=ino |
| By: | NISHIMURA Junichi; OKADA Yosuke |
| Abstract: | Over the past two decades, utilizing markets for technology through licensing and other outsourcing arrangements has emerged as a key to organizing innovative activity. We examine how the rent dissipation effect affects patent and knowhow licensing, controlling organizational capabilities such as firm size, vertical integration, exports, and diversity. A licensor's profit varies and the incentives to license change depending on the rent dissipation effect, which erodes a licensor's profit due to intensifying competition that results from a licensee's entry into the licensor's market. Firms faced with severe competition are marginally exposed to a small rent dissipation effect when licensing their technologies out to rivals, and they can obtain large royalty revenues through such licensing because there are many potential licensees. Using panel data on about ten thousand Japanese firms for the period 1995-2007, we show that the rent dissipation effect facilitates licensing not only between Japanese firms but also between Japanese and foreign firms. |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:11012&r=ino |
| By: | FUKAO Kyoji; KWON Hyeog Ug |
| Abstract: | Using micro-data of the <i>Establishment and Enterprise Census and the Basic Survey of Japanese Business Structure and Activities</i>, we examine the characteristics of firms that were active in jobs creation, capital accumulation, and the improvement of total factor productivity (TFP). We also analyze in what industries jobs were created. Our main findings are as follows: (1) younger firms and affiliates of foreign firms have created many jobs through new entry and firm expansion, whereas most of the older and larger firms have been reducing employment; (2) most of the new jobs were created in the service sector, while job destruction mainly occurred in the manufacturing and construction sectors; (3) younger firms were also active in capital accumulation; (4) younger firms and foreign-owned firms tended to have a higher TFP level and achieve higher TFP growth; and (5) large firms, which were active in R&D, international trade, and direct investment abroad, also tended to have a higher TFP level and achieve higher TFP growth. |
| Date: | 2011–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:11045&r=ino |