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on Innovation |
| 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 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 on 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: | Scientific Productivity,Research Funding,Academic Patents,Technology Transfer |
| JEL: | O31 O32 O33 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:10105r&r=ino |
| By: | Gallini, Nancy |
| Abstract: | Inventors and users of technology often enter into cooperative agreements for sharing their intellectual property in order to implement a standard or to avoid costly litigation. Over the past two decades, U.S. antitrust authorities have viewed pooling arrangements that integrate complementary, valid and essential patents as having procompetitive benefits in reducing prices, transactions costs, and the incidence of legal suits. Since patent pools are cooperative agreements, they also have the potential of suppressing competition if, for example, they harbor weak or invalid patents, dampen incentives to conduct research on innovations that compete with the pooled patents, foreclose competition from downstream product or upstream input markets, or raise prices on goods that compete with the pooled patents. In synthesizing the ideas advanced in the economic literature, this paper explores whether these antitrust concerns apply to pools with complementary patents and, if they do, the implications for competition policy to constrain them. Special attention is given to the application of the U.S. Department of Justiceâ€Federal Trade Commission Guidelines for the Licensing of Intellectual Property (1995) and its companion Antitrust Enforcement and Intellectual Property Rights: Promoting Innovation and Competition (2007) to recent patent pool cases. |
| Keywords: | patents, patent pools, intellectual property |
| JEL: | O31 O34 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:uca:ucaiel:5&r=ino |
| By: | James Bessen (Research on Innovation, Boston University School of Law, Berkman Center for Internet and Society (Harvard)) |
| Abstract: | This report examines changes in the patenting behavior of the software industry since the 1990s. It finds that most software firms still do not patent, most software patents are obtained by a few large firms in the software industry or in other industries, and the risk of litigation from software patents continues to increase dramatically. Given these findings, it is hard to conclude that software patents have provided a net social benefit in the software industry. |
| Keywords: | patents, software, software patents, litigation, innovation, startup firms |
| JEL: | O34 D23 L86 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:roi:wpaper:1102&r=ino |
| By: | Anderson, Benjamin; Sheldon, Ian |
| Abstract: | Over the past three decades, the agricultural biotechnology sector has been characterized by rapid innovation, market consolidation, and a more exhaustive definition of property rights. The industry attributes consistently identified by the literature and important to this analysis include: (i) endogenous sunk costs in the form of expenditures on R&D; (ii) seed and agricultural chemical technologies that potentially act as complements within firms and substitutes across firms; and (iii) property rights governing plant and seed varieties that have become more clearly defined since the 1970s. This paper adds to the stylized facts of the agricultural biotechnology industry to include the ability of firms to license technology, a phenomenon observed only recently in the market as licensing was previously precluded by high transactions costs and âanti-stackingâ provisions. We extend Suttonâs theoretical framework of endogenous sunk costs and market structure to incorporate the ability of firms to license technology under well-defined property rights, an observed characteristic not captured in previous analyses of the sector. Our model implies that technology licensing leads to lower levels of industry concentration then what would be found under Suttonâs model, but that industry concentration remains bounded away from perfect competition as market size becomes large. |
| Keywords: | licensing, market structure, R&D, agricultural biotechnology, Research and Development/Tech Change/Emerging Technologies, L22, L24, Q16, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea11:107832&r=ino |
| By: | Hottenrott, Hanna; Peters, Bettina |
| Abstract: | This study presents a novel empirical approach to identify financing constraints for innovation based on the concept of an ideal test as suggested by Hall (2008). Firms were offered a hypothetical payment and were asked to choose between alternatives of use. If they selected additional innovation projects, they must have had some unexploited investment opportunities that were not profitable using more costly external finance. We attribute constraints for innovation not only to lacking financing, but also to firms' innovative capability. Econometric results show that financial constraints do not depend on the availability of internal funds per se, but that they are driven by innovative capability. -- |
| Keywords: | Innovation,financing constraints,innovative capability,multivariate probit models |
| JEL: | O31 O32 C35 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:09081r&r=ino |
| By: | Bagchi, Aniruddha; Roy, Abhra |
| Abstract: | The incentive of providing protection of intellectual property has been analyzed, both for an emerging economy as well as for a developed economy. The optimal patent length and the optimal patent breadth within a country are found to be positively related to each other for a fixed structure of laws abroad. Moreover, a country can respond to stronger patent protection abroad by weakening its patent protection under certain circumstances and by strengthening its patent protection under other circumstances. These results depend upon the curvature of the R&D production function. Finally, we investigate the impact of an increase in the willingness-to-pay in the emerging economy and find conditions under which there is an improvement in both patent length as well as patent breadth in the emerging economy. |
| Keywords: | Patent Length; Patent Breadth; Productivity |
| JEL: | F20 O34 O31 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:31822&r=ino |
| By: | Heike Belitz; Marius Clemens; Christian von Hirschhausen; Jens Schmidt-Ehmcke; Axel Werwatz; Petra Zloczysti |
| Abstract: | We develop a composite indicator measuring the performance of national innovation systems. The indicator takes into account both “hard” factors that are quantifiable (such as R&D spending, number of patents) and “soft” factors like the assessment of preconditions for innovation by managers. We apply the methodology to a set of 17 industrialized countries on a yearly basis between 2007 and 2009. The indicator combines results from public opinion surveys on the process of change, social capital, trust and science and technology to achieve an assessment of a country’s social climate for innovation. After calculating and ranking the innovation indictor scores for the 17 countries, we group them into three classes: innovation leader, middle group and end section. Using multiple sensitivity analysis approaches, we show that the indicator reacts robustly to different weights within these country groups. While leading countries like Switzerland, the USA and the Nordic countries have an innovation system with high scores and ranks in every sub indicator, the middle group consisting among others of Germany Japan, the UK and France, can be characterized by higher variation within ranks. In the end section, countries like Italy and Spain have bad scores for almost all indicators. |
| Keywords: | National systems of innovation, Composite Indicators, Ranking |
| JEL: | O30 C81 H52 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:hum:wpaper:sfb649dp2011-036&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 diffusion,Localized knowledge spillovers, Total Factor Productivity |
| JEL: | C23 F01 O30 O47 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpde:1106&r=ino |
| By: | Orachos Napasintuwong Artachinda (Department of Agricultural and Resource Economics,Faculty of Economics,Kasetsart University,Thailand); |
| Keywords: | directed technical change, induced innovation |
| JEL: | O31 O33 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:kau:wpaper:201101&r=ino |
| By: | Emanuela Marrocu; Raffaele Paci; Stefano Usai |
| Abstract: | This paper aims at assessing the role of various dimension of proximity on the innovative capacity of a region within the context of a knowledge production function where we consider as main internal inputs R&D expenditures and human capital. We want to assess if, and how much, the creation of new ideas in a certain region is the result of flows of information and knowledge coming from proximate regions. In particular, we examine in details the concept of proximity combining the usual geographical dimension with the institutional, the technological, the social and the organizational proximity. The analysis is implemented for an ample dataset referring to 287 regions in 29 countries (EU27 plus Norway, Switzerland) for the last decade. Results show that human capital and R&D are clearly essential for innovative activity but with an impact which is much higher for the former factor. As for the proximity and network effects, we find that geography is important but less than technological and cognitive proximity. Social and organizational networks are also relevant but their role is more modest. Finally, most of these proximities prove to have a complementary role in shaping innovative activity across regions in Europe. |
| Keywords: | knowledge production; technological spillover; proximity; networks |
| JEL: | O31 C31 O18 R12 O52 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201109&r=ino |
| By: | Harald Bathelt; Andrew Munro; Ben Spigel |
| Abstract: | This paper develops a perspective of regional re-bundling in overcoming economic crises. It does this by focusing on the effects of the recent global financial crisis on traditional manufacturing. We analyze the structure of innovation processes and their development over time in CanadaÕs Technology Triangle Ð a region known for university-related spin-off processes and successful modernization. What is less well-known is that this region has been strongly influenced by traditional manufacturing industries. We show that these industries have been well prepared to deal with the effects of the crisis due to ongoing innovation and diversification stimulated by prior economic crises. |
| Keywords: | CanadaÕs Technology Triangle, manufacturing sector, global financial crisis, re-bundling, innovation practices/strategies |
| JEL: | L16 L61 L62 O31 R11 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1111&r=ino |
| By: | Eleonora Di Maria (University of Padova); Marco Paiola (University of Padova) |
| Abstract: | Literature on innovation and recent marketing contributions stressed the involvement of consumers in the co-production of value, by emphasizing either the role of a single consumer or the community in such process. Few studies coupled the two interrelated dimensions and analyzed their impacts on customersÕ behavior and firm marketing strategies, specifically in terms of benefits achieved. The paper aims at filling this theoretical gap by distinguishing between individual and social co-production, where different levels of consumer engagement can be identified with diverse value sharing outcomes. We argue that not all customers are interested in being involved in the co-production concerning all their consumption activities. Depending on their commitment to participate (centrality of the consumption activity for the customer) and the co-production nature (individual vs. social) four alternative options of co-production emerge, with distinctive managerial features. |
| Keywords: | co-production, consumer behavior, community, innovation. |
| JEL: | O31 L19 M31 |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0135&r=ino |
| By: | Alessandra Colombelli; Marta Foddi; Raffaele Paci |
| Abstract: | Since the Lisbon agenda in 2000, Europe stated the goal to become the most advanced knowledge economy in the world relying specifically on the increase and strengthen of its human capital and technological endowments. However, given the presence of localized externalities in the knowledge accumulation process, this policy may produce distortive and unwanted consequences at the territorial level reinforcing the existing high inequalities among regions. Another crucial feature to be considered is the recent enlargement process of the European Union which has brought on stage new players characterized by a low average level of knowledge activity accompanied by a huge degree of internal territorial disparity. The aim of this paper is to identify the “knowledge regions” in Europe and to examine their main territorial features. To this aim we first build, for 287 regions belonging to 31 European countries, a comprehensive picture of the two variables - human capital and technological activity - which constitute the main pillars of the knowledge economy. We compute two synthetic indicators for human capital and technology and, on the basis of these two dimensions, we identify 74 knowledge regions, mainly located in the centre and north of Europe. This results are confirmed by a cluster analysis. |
| Keywords: | knowledge; human capital; technological activity; regions; Europe |
| JEL: | R11 J24 O30 O52 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201110&r=ino |
| By: | Tatiana Plotnikova (Friedrich-Schiller-University, Jena, Graduate College "The Economics of Innovative Change"); Bastian Rake (Friedrich-Schiller-University, Jena, Graduate College "The Economics of Innovative Change") |
| Abstract: | In this paper we focus on proximity as one of the main determinants of international collaboration in pharmaceutical research. We use various count data specifications of the gravity model to estimate the intensity of collaboration between pairs of countries as explained by the geographical, cognitive, institutional, social, and cultural dimensions of proximity. Our results suggest that geographical distance has a significant negative relation to the collaboration intensity between countries. The amount of previous collaborations, as a proxy for social proximity, is positively related to the number of cross-country collaborations. We do not find robust significant associations between cognitive proximity or institutional proximity with the intensity of international research collaboration. Moreover, there is no robust and significant relation between the interaction terms of geographical distance with social, cognitive, or institutional proximity, and international research collaboration. Our findings for cultural proximity do not allow of unambiguous conclusions concerning their influence on the collaboration intensity between countries. Linguistic ties among countries are associated with a higher amount of cross-country research collaboration but we find no clear association for historical and colonial linkages. |
| Keywords: | International Cooperation, Pharmaceuticals, Proximity |
| JEL: | R10 O31 |
| Date: | 2011–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2011-026&r=ino |