nep-ino New Economics Papers
on Innovation
Issue of 2011‒09‒16
twelve papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. The Impact of Government Procurement Composition on Private R&D Activities By Viktor Slavtchev; Simon Wiederhold
  2. Not searching, but finding: Innovation as a non-linear source of the private use of public knowledge By Azagra-Caro, Joaquín M.; Pardo, Rafael; Rama, Ruth
  3. R&D Offshoring and the Productivity Growth of European Regions By Davide Castellani; Fabio Pieri
  4. Open strategies and innovation performance By Barge-Gil, Andrés
  5. Innovation subsidies: Does the funding source matter for innovation intensity and performance? Empirical evidence from Germany By Czarnitzki, Dirk; Lopes Bento, Cindy
  6. Competition and Innovation By Michele Boldrin; Juan C Allamand; David K Levine; Carmine Ornaghi
  7. Due diligence, research joint ventures, and incentives to innovate By Fabrizi, Simona; Lippert, Steffen
  8. Is the Dragon Learning to Fly? An Analysis of the Chinese Patent Explosion By Markus Eberhardt; Christian Helmers; Zhihong Yu
  9. Communitywide Database Designs for Tracking Innovation Impact: COMETS, STARS and Nanobank By Lynne G. Zucker; Michael R. Darby; Jason Fong
  10. Changes in the French Defence Innovation System: New roles and capabilities for the Government Agency for Defence. By Lazaric, Nathalie; Mérindol, Valérie; Rochhia, Sylvie
  11. Innovation and Corporate Dynamics: A Theoretical Framework By Jakub Growiec; Fabio Pammolli; Massimo Riccaboni
  12. Measuring social capital and innovation in poor agricultural communities: The case of Cháparra, Peru By Hartmann, Dominik; Arata, Atilio

  1. By: Viktor Slavtchev (Friedrich Schiller University Jena, Chair of "Business Dynamics, Innovation and Economic Change" and GK-EIC "The Economics of Innovative Change", Jena); Simon Wiederhold (ifo Institute for Economic Research)
    Abstract: This paper addresses the question of whether government procurement can work as a de facto innovation policy tool. We develop an endogenous growth model with quality-improving in-novation that incorporates industries with heterogeneous innovation sizes. Government de-mand in high-tech industries increases the market size in these industries and, with it, the in-centives for private firms to invest in R&D. At the economy-wide level, the additional R&D induced in high-tech industries outweighs the R&D foregone in all remaining industries. The implications of the model are empirically tested using a unique data set that includes federal procurement in U.S. states. We find evidence that a shift in the composition of government purchases toward high-tech industries indeed stimulates privately funded company R&D.
    Keywords: public demand, technological change, endogenous growth
    JEL: E62 H54 H57 O31 O32 O41
    Date: 2011–09–06
  2. By: Azagra-Caro, Joaquín M.; Pardo, Rafael; Rama, Ruth
    Abstract: The use of universities and public research organisations as a source of information is increasing as firms adopt search strategies based on current models of information use. The theory of this paper is that in order to predict companies? perceptions of the usefulness of such knowledge, their practical experience in technological innovation becomes a determinant, not directly but by enabling certain internal changes which result in firms finding public research more useful. Using a sample of 1,031 Spanish manufacturing firms, we give an illustration of how practical experience in technological innovation produces encounters between three of their choices (to increase in size, the skills of the workforce and the abandonment of strategic innovation) and public research. In reality, the lack of such practical experience produces a ?disencounter? in which only monopolistic firms can take full advantage of public research. Some managerial and policy implications are discussed below.
    Keywords: Public-private R&D interaction; Spain
    JEL: O32
    Date: 2011–09–08
  3. By: Davide Castellani (Department of Economics, Finance and Statistics, University of Perugia and Centro Studi Luca D'Agliano, Milan); Fabio Pieri (Department of Economics, Finance and Statistics, University of Perugia)
    Abstract: The recent increase in R&D oshoring have raised fears that knowledge and competitive- ness in advanced countries may be at risk of `hollowing out'. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home. This paper addresses this issue by investigating the extent to which R&D oshoring is associated with productivity dynamics of European (NUTS2) regions. In particular, we explore whether R&D investments abroad have a dierent impact from those in manufacturing and other business activities. We nd that oshoring regions have higher productivity growth, but this positive eect fades down with the number of investment projects carried out abroad. However, a large and positive correlation emerge between the extent of R&D oshoring and the home region produc- tivity growth, supporting the idea that carrying out R&D abroad strengthen European competitiveness.
    Keywords: Regional Productivity, Foreign Investments, Europe, R&D Offshoring
    JEL: C23 F23 O47 O52 R11
    Date: 2011–08
  4. By: Barge-Gil, Andrés
    Abstract: Scholarly interest in the relationship between open strategies and innovation performance has been unfailing, and in recent years has even increased. The present paper focuses on inbound open strategies and reviews various approaches (transaction costs, competences, open innovation) dealing with firms´ decisions about these strategies. The different approaches result in different conclusions about the optimum level of openness. The different approaches are tested empirically taking account of the different degrees of openness (closed, semiopen, open, ultraopen) and their effects on sales of new–to-the-market products, and using a panel of Spanish firms from a CIS-type survey for 2004-2008. Our results show that closed and semiopen strategies are the most common among Spanish firms and that open strategies produce the best performance, while semiopen strategies are more effective than closed ones. These results hold across different subsamples based on firm size and industry, and are robust to different ways of defining the indicators and to different estimation methods.
    Keywords: open innovation strategies; collaboration; transaction costs; competences; CIS surveys; R&D; technology policy
    JEL: L2 D2 O3
    Date: 2011–07–06
  5. By: Czarnitzki, Dirk; Lopes Bento, Cindy
    Abstract: Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding. --
    Keywords: Subsidies,Innovation,Policy Evaluation,Treatment Effects,Nonparametric matching estimation
    JEL: C14 H50 O38
    Date: 2011
  6. By: Michele Boldrin; Juan C Allamand; David K Levine; Carmine Ornaghi
    Date: 2011–08–29
  7. By: Fabrizi, Simona; Lippert, Steffen
    Abstract: The decision to cooperate within R&D joint ventures is often based on `expert advice.' Such advice typically originates in a due diligence process, which assesses the R&D joint venture's profitability, for example, by appraising the achievability of synergies. We show that if the experts who advise the owners considering forming an R&D joint venture are also responsible for R&D efforts, they can have incentives to withhold information about the extent of those synergies. Owners optimally react by reducing the incentives to innovate in low-value projects developed within R&D joint ventures and in high-value projects developed within competing research organizations.
    Keywords: Research and development; due diligence; experts' advice; joint venture; synergies; asymmetric information; moral hazard; information withholding (concealing) and revelation
    JEL: D86 L5 O38 O32 D82 L24 O31
    Date: 2011–09–04
  8. By: Markus Eberhardt; Christian Helmers; Zhihong Yu
    Abstract: This paper analyses characteristics and determinants of the recent explosion of patent filings by Chinese firms both in China and the United States. We construct a firm-level dataset by matching USPTO and SIPO patents to Chinese manufacturing census data for the period 1999-2006. Using this integrated firm-level dataset, we show that the patent explosion is accounted for by a tiny, highly select group of Chinese companies in the information & communication technology (ICT) equipment industry. This handful of ICT companies accounts for nearly all Chinese USPTO patent filings as well as the vast majority of domestic SIPO patents despite there being a larger number of Chinese companies distributed across a wider range of industries that seeks patent protection domestically. Our empirical analysis further suggests that firms patenting in both US and China are considerably younger, larger and substantially more export-oriented than firms patenting exclusively in China. Our study contributes to the debate on China’s innovative prowess and its potential to transition from an imitator to an innovator economy.
    Keywords: China, firm, patents.
    JEL: L25 O12
    Date: 2011
  9. By: Lynne G. Zucker; Michael R. Darby; Jason Fong
    Abstract: Data availability is arguably the greatest impediment to advancing the science of science and innovation policy and practice (SciSIPP). This paper describes the contents, methodology and use of the public online COMETS (Connecting Outcome Measures in Entrepreneurship Technology and Science) database spanning all sciences, technologies, and high-tech industries; its sibling COMETSandSTARS database which adds more data at organization and individual scientist-inventor-entrepreneur level restricted by vendor licenses to onsite use at NBER and/or UCLA; and their prototype Nanobank covering only nano-scale sciences and technologies. Some or all of these databases include or will include: US patents (granted and applications); NIH, NSF, SBIR, STTR Grants; Thomson Reuters Web of Knowledge; ISI Highly Cited; US doctoral dissertations; IPEDS/HEGIS universities; all firms and other organizations which ever publish in ISI listed journals beginning in 1981, are assigned US patents (from 1975), or are listed on a covered grant; additional nanotechnology firms based on web search. Ticker/CUSIP codes enable linking public firms to the major databases covering them. A major matching/disambiguation effort assigns unique identifiers for an organization or individual so that their appearances are linked within and across the constituent legacy databases. Extensive geographic coding enables analysis at country, region, state, county, or city levels as well as computation of distances between any two addresses. The databases provide very flexible sources of data for serious research on many issues in the science of science and technology.
    JEL: C81 J44 J61 J62 M13 O31 O33 O34 O38
    Date: 2011–09
  10. By: Lazaric, Nathalie; Mérindol, Valérie; Rochhia, Sylvie
    Abstract: Defence innovation systems are structured around two main groups of players that interact in the development of complex programmes: the state (the client and the government agency) and the systems integrators. Technological and institutional changes since the 1990s have affected the division of labour and knowledge in the industry. In this paper, we show the origins of these changes based on information derived from 45 qualitative interviews conducted between 2000 and 2008, which demonstrate the new capabilities that have been created within the national innovation system (NIS). We explain how the role and the capabilities of the French Government Agency for Defence (Direction Générale de l'Armement—DGA) have developed from “project architect” to “project manager”. These new capabilities create new interactions in the French defence innovation system and new roles for the DGA.
    Keywords: Defence; Institutional change; National innovation system; co-evolution; Government agency; Knowledge; Capabilities; Technological systems;
    JEL: O33 O32 O31
    Date: 2011
  11. By: Jakub Growiec; Fabio Pammolli; Massimo Riccaboni
    Abstract: We provide a detailed analysis of a model of innovation and corporate dy- namics that encompasses the Gibrat’s Law of Proportionate Effect and the Simon growth process as particular instances. The predictions of the model are derived in terms of (i) firm size distribution, (ii) the distribution of firm growth rates, and (iii-iv) the relationships between firm size and the mean and variance of firm growth rates. We test the model against data from the worldwide pharmaceutical industry and find its predictions to be in good agreement with empirical evidence on all four dimensions.
    Keywords: Business firm size; firm growth distribution; GibratÕ Law; Pareto distribution; lognormal distribution, size-variance relationship.
    JEL: C49 L11 L25 L65
    Date: 2011–08
  12. By: Hartmann, Dominik; Arata, Atilio
    Abstract: In the last decades substantive advance has been made in the measurement and understanding of frontier innovation in highly industrialized settings. However, little research focused on the process of learning and the introduction of novelties in smallholder farming of poor agricultural communities. Considering that 1.5 billion people in developing countries live in such smallholder households this is an essential shortcoming. In addressing three crucial questions about the measurement and promotion of endogenous local development this paper contributes to close this research gap. The three questions are: a) how can we measure social capital and innovation in poor agricultural communities, b) what is the impact of external agents on local structures and c) what are the relations between the social capital and the innovative performance of the farmer. In a first step a comprehensive questionnaire with 89 questions on diverse dimensions of social capital and innovation has been elaborated and applied to the agricultural valley of Cháparra in the South of Peru. The results allow for an indepth analysis of the capabilities, network position and innovative behavior of the farmers. In a second step, we apply social network analysis techniques to analyze the role and position of the relevant actors in the local as well as in the external technical information networks with a special focus on the influence of an external NGO. The analysis reveals a deep structural impact of the NGO and significant correlations between the network position of the farmers and their innovative performance. Three crucial issues for research on smallholder innovation are identified. First, diverse dimensions of social capital and innovation have to be differentiated when studying endogenous development. Second, it has to be assessed to which degree the modification of the existing social structures by external agents can be harmful or beneficial. Third, social network analysis can help us to gain a better understanding of the complex relations between social capital and innovation and how these can contribute to foster sustainable development projects. --
    Keywords: social capital,innovation,smallholders,Cháparra,Peru,network analysis
    Date: 2011

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