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on Innovation |
| By: | Siedschlag, Iulia; Killeen, Neil; Smith, Donal; O'Brien, Catriona |
| Abstract: | This paper examines the relationship between the internationalisation of firms in services and their innovation performance. We use firm-level data over the period 2004- 2006 and estimate an augmented structural model to account for the role of foreign direct investment and exporting on the innovation performance of services firms in Ireland. Our research shows that in comparison to firms serving only the Irish market, domestic exporters were more likely to engage in R&D and innovation and they were more likely to be successful in terms of innovation output, over and above firm characteristics such as size and distance to the technology frontier. Further, we find that adoption of information and communication technologies was positively associated with innovation output. Co-operation with suppliers was positively associated with all innovation types, while knowledge flows from customers and from the government or public research institutes were positively linked to product innovation. Co-operation with universities was positively linked to innovation measured by patents. |
| Keywords: | Multinational Firms/Exporting/Knowledge Production/Services |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp406&r=ino |
| By: | Olczyk, Magdalena |
| Abstract: | The aim of the study is to analyze the actual demand of SMEs from the Baltic Sea region for innovation support. The results of the conducted study can help formulate recommendations designed to increase innovation and competitiveness of SMEs in the Baltic Sea Region in the future. Research activities of this study include: the evaluation of innovation level of the Baltic Sea Region enterprises (type and intensity of implemented innovation changes, innovation climate, barriers in innovation implementation in enterprises), the study of SMEs cooperation with scientific subjects, R&D sphere; and the identification of the needs of enterprises to do with the increase of their innovation capacities (demand for training, consulting, cooperation with universities and R&D sphere, or cooperation in a cluster). |
| Keywords: | innovation; SME; Baltic region |
| JEL: | O31 D01 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33657&r=ino |
| By: | Bergman, Karin (Department of Economics, Lund University) |
| Abstract: | This paper uses a panel of Swedish manufacturing firms to examine the effects of internal and external R&D on total factor productivity over the period 1991-2004. The findings give some support to the notion of complementarity between internal and external R&D, especially in industries with high R&D intensities, and suggest that the employees’ level of education is important for the firm’s capabilities to absorb external R&D. However, external R&D is generally found to have a negative effect on productivity and internal R&D is only significant when not including interaction terms between internal R&D and external R&D or human capital. |
| Keywords: | Internal R&D; external R&D; productivity; Sweden |
| JEL: | D24 L24 O32 |
| Date: | 2011–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2011_027&r=ino |
| By: | James Bessen (Research on Innovation, Boston University School of Law, Berkman Center for Internet and Society (Harvard)); Jennifer L. Ford; Michael J. Meurer |
| Abstract: | In the past, non-practicing entities (NPEs) — firms that license patents without producing goods — have facilitated technology markets and increased rents for small inventors. Is this also true for today’s NPEs? Or are they “patent trolls” who opportunistically litigate over software patents with unpredictable boundaries? Using stock market event studies around patent lawsuit filings, we find that NPE lawsuits are associated with half a trillion dollars of lost wealth to defendants from 1990 through 2010, mostly from technology companies. Moreover, very little of this loss represents a transfer to small inventors. Instead, it implies reduced innovation incentives. |
| Keywords: | patent, litigation, litigation cost, non-practicing entities, software patents |
| JEL: | O31 O34 K41 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:roi:wpaper:1103&r=ino |
| By: | Galasso, Alberto; Schankerman, Mark; Serrano, Carlos |
| Abstract: | We study how the market for innovation affects enforcement of patent rights. Conventional wisdom associates the gains from trade with comparative advantage in manufacturing or marketing. We show that these gains imply that patent transactions should increase litigation risk. We identify a new source of gains from trade, comparative advantage in patent enforcement, and show that transactions driven by this motive should reduce litigation. Using data on trade and litigation of individually-owned patents in the U.S., we exploit variation in capital gains tax rates as an instrument to identify the causal effect of trade on litigation. We find that taxes strongly affect patent transactions, and that reallocation of patent rights reduces litigation risk, on average. The impact of trade on litigation is heterogeneous, however. Patents with larger potential gains from trade are more likely to change ownership, suggesting that the market for innovation is efficient. We also show that the impact of trade on litigation depends on characteristics of the transactions. |
| Keywords: | capital gains taxation; litigation; market for innovation; patents |
| JEL: | H24 K41 O32 O34 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8573&r=ino |
| By: | Azagra-Caro, Joaquín M.; Mas-Verdú, Francisco; Martinez-Gomez, Victor |
| Abstract: | Young innovative companies (YICs) are attracting attention in their role of industry regenerators. However, we have little information about their relations with universities as sources of information. This paper explores university-industry interaction involving YIC in the Valencian Community, using YIC founders? personal attributes and motivations as explanatory variables. The Valencian Community has a relatively high degree of university-industry interaction, but surprisingly little technological innovation. A survey of YICs in the region shows that, in their case, firm size does not affect the probability of contracting with universities, and that R&D intensity is not significant if we consider firm founders? personal characteristics and motivations. YIC founders exploiting market opportunities recognized in previous business activities, and necessity entrepreneurs, are the least likely to interact with universities. We highlight the role of external advisory services to highlight the benefits of universities. |
| Keywords: | Young innovative companies; University-industry interaction; Motivations; Valencian Community |
| JEL: | O32 |
| Date: | 2011–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201107&r=ino |
| By: | Dierk Bauknecht |
| Abstract: | Smart Grids require innovations in the electricity networks, mainly on the level of the distributed system operator (DSO). A main objective is to increase the share of distributed generation (DG) connected to that network level, but also to enable load management on the demand side. This paper analyses network innovations in the context of the regulatory framework, namely incentive regulation. It is structured as follows: The first section examines how cost-based and price-based regulatory schemes influence RD&D by regulated companies. This is followed by a discussion of various regulatory instruments to stimulate innovation. The third section provides a more general discussion of the pros and cons of promoting network innovations via network regulation. |
| Keywords: | incentive regulation; price-based regulation; cost-based regulation; Rd&D; network innovations |
| Date: | 2011–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2011/02&r=ino |
| By: | Bruno Van Pottelsberghe; Matthis de Saint-Georges |
| Abstract: | This paper presents a quality index for patent systems. The index is composed of nine operational design components that help shape the transparency of patent systems and affect the extent to which they comply with patentability conditions. Seven factors are related to rules and regulations (e.g. grace period, opposition process and continuation-inparts), while two factors measure patent offices’ resource allocation (i.e. workload per examiner and incentives). The index is computed for 32 national patent systems, it displays a high heterogeneity across countries. Cross-sectional quantitative analyses suggest that the demand for patent rights -or the propensity to patent- is lower in patent systems with a higher quality index, controlling for research efforts, patent fees and the “strength” of enforcement mechanisms. |
| Keywords: | Patent system; Quality; Patent prosperity; Intellectual property |
| JEL: | O30 O31 O34 O38 O57 |
| Date: | 2011–05 |
| URL: | http://d.repec.org/n?u=RePEc:eca:wpaper:2013/87167&r=ino |
| By: | KOBAYASHI Yohei |
| Abstract: | Although numerous studies have evaluated the effect of tax credits on R&D, many have neglected the problem of selection bias. Furthermore, empirical studies have found that Japan's total factor productivity (TFP) growth has slowed since the 1990s, and Kim et al. (2010) have attributed this slowdown partly to low R&D expenditures among small and medium-sized enterprises (SME). Evidence suggests that enhancing R&D among small firms is essential for Japan's economic growth. This paper estimates the effect of R&D tax credits for SMEs using firm-level micro data from "The 2009 Basic Survey of Small and Medium Enterprises." We use the propensity score method introduced by Rubin (1974), in which recipients of tax credits are matched with the most similar non-recipients. Empirical results show that R&D tax credits induce an increase in SMEs' R&D expenditures. Moreover, we find that the effect of R&D tax credits on liquidity-constrained firms is much greater than on firms without liquidity constraints. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:11066&r=ino |
| By: | Bergman, Karin (Department of Economics, Lund University) |
| Abstract: | This paper examines the productivity effects of privately and publicly funded R&D, both performed in the private sector. In doing so, it ascertains whether there are differences in the direct effects on an industry’s total factor productivity growth, and whether the spillover effects of R&D performed in other industries within a country differ in terms of the two sources of funding. Using a panel of industries from 13 OECD countries, it is found that privately funded R&D has a positive productivity effect, but with diminishing returns. Publicly funded R&D shows signs of increasing returns to scale, but the total effect is negative for most industries in the sample. The results concerning spillover effects are less robust, but there is some evidence of positive spillover effects from privately funded R&D, whereas spillovers from publicly funded R&D have an insignificant or a negative effect on an industry’s productivity growth. |
| Keywords: | Privately funded R&D; publicly funded R&D; productivity |
| JEL: | D24 L60 O32 |
| Date: | 2011–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2011_028&r=ino |
| By: | Bergman, Karin (Department of Economics, Lund University); Ejermo, Olof (CIRCLE) |
| Abstract: | Sweden has seen a rise in business R&D-intensities and dependence on exports to make its economy grow since the early 1990s. This paper examines the role of foreign sales in stimulating R&D as compared to a domestic sales effect, and finds, in line with the literature, that R&D rises proportionally to sales in cross-sections from 1991 to 2001. Among manufacturing firms, foreign sales are distinctly more associated with an increase in R&D than domestic sales. For service firms, domestic sales are as important as foreign. The results are consistent with the hypotheses that manufacturing firms more easily separate production from R&D, economize on transport costs and are subject to learning-by-exporting effects. In general, the results highlight the dependence on openness in stimulating R&D in a small economy, especially among manufacturing firms. |
| Keywords: | R&D; size; exports; Sweden |
| JEL: | L23 O32 |
| Date: | 2011–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2011_026&r=ino |
| By: | Francesco Lissoni; Patrick Llerena; Bulat Sanditov |
| Abstract: | · Using data on patent applications at European Patent Office, we examine the structural properties of networks of inventors in France in different technologies, and how they depend from the inventive activity of scientists from universities and public research organizations (PROs). We revisit earlier findings on small world properties of social networks of inventors, and propose more rigorous tests of such hypothesis. We find that academic and PRO inventors contribute significantly to patenting in science‐based fields. Such contribution is decisive for the emergence of small world properties. |
| Keywords: | networks, inventors, academic patenting, small world. |
| JEL: | O31 O34 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2011-18&r=ino |
| By: | Ortega-Argilés, Raquel (IN+ Center for Innovation); Piva, Mariacristina (Università Cattolica del Sacro Cuore); Vivarelli, Marco (Università Cattolica del Sacro Cuore) |
| Abstract: | The purpose of this study is to investigate the relationship between a firm's R&D expenditures considered as an investment in knowledge, and its productivity, looking at sectoral peculiarities which may emerge; to this end, we use a large unique longitudinal database consisting of 1,809 US and European manufacturing and service firms over the period 1990-2008, for a total of 16,079 observations. Our main findings can be summarised as follows: knowledge stock has a significant positive impact on a firm's productivity, with an overall elasticity of about 0.10; this general result is largely consistent with findings presented in previous literature in terms of the sign, the significance and the estimated magnitude of the relevant coefficient. More interestingly, the coefficient turns out to be significantly larger in the service and high-tech sectors than in the non-high-tech manufacturing sectors. These outcomes suggest that firms in high-tech sectors are still ahead in terms of the impact on productivity of their R&D investments; moreover, a shift in favour of the service sectors seems to emerge. |
| Keywords: | R&D, productivity, knowledge stock, panel data |
| JEL: | O33 L25 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5975&r=ino |
| By: | Kaiser, Ulrich (University of Zurich); Kuhn, Johan Moritz (CEBR, Copenhagen) |
| Abstract: | Subsidized research joint ventures (RJVs) between public research institutions and industry have become increasingly popular in Europe and the US. We study the long-run effects of such a support scheme that has been maintained by the Danish government since 1995. To cope with identification problems we apply nearest neighbor caliper matching and conditional difference-in-difference estimation methods. Our main findings are that (i) program participation effects are instant for annual patent applications and last for three years, (ii) employment effects materialize first after one year and (iii) there are no statistically significant effects on value added or labor productivity. We further show that these overall results are primarily driven by firms that were patent active prior to joining the RJV and that there are no statistically significant effect for large firms. Both types of firms are disproportionally represented in the support program we study. |
| Keywords: | public-private partnership, research joint venture, research and development, research subsidies |
| JEL: | O31 O38 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5986&r=ino |
| By: | Theo S Eicher; Monique Newiak (University of Washington and University of Munich) |
| Abstract: | Intellectual property rights (IPRs) have been identified as key drivers of economic performance in R&D based growth models, but their impact on development has not been fully explored in development accounting exercises. We introduce IPRs to the development accounting literature, using Two-Stage Least Squares Bayesian Model Averaging (2SBMA) to address endogeneity and model uncertainty at the instrument and income stages. We show that IPRs exert similar effects as “Rule of Law,” which has long been heralded as a core development determinant in cross country regressions. Our results thus provide robust evidence that both dimensions of property rights, physical and intellectual, are crucial prerequisites to economic development. Most importantly, we document that IPRs those that are simply written into law, but are unenforced, exert no effect on development. Instead, it is the level of enforced IPRs that causes development. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:udb:wpaper:uwec-2011-13&r=ino |
| By: | Dessi, Roberta (IDEI, Toulouse School of Economics) |
| Abstract: | Innovative start-ups and venture capitalists are highly clustered, benefiting from localized spillovers: Silicon Valley is perhaps the best example. There is also substantial geographical variation in venture capital contracts: California contracts are more "incomplete". This paper proposes an economic explanation for these observations, often attributed to regional cultural differences. In the presence of significant spillovers, it becomes optimal for an innovative start-up and its financier to adopt contracts with fewer contingencies: these contracts maximize their ability to extract (part of) the surplus they generate through positive spillovers. This relaxes ex-ante financing constraints and makes it possible to induce higher innovative effort. |
| JEL: | D82 D86 G24 L22 |
| Date: | 2011–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:24941&r=ino |
| By: | Magdalena, Olczyk; Marzena , Starnawska; Izabela, Richter |
| Abstract: | In the article the authors present the factors that foster cooperation among SMEs and other market actors. Also, an attempt was made to present how these market actors work together. In addition, analysis of the impact of cooperation on innovation in business has been done |
| Keywords: | innovation; SME; cooperation |
| JEL: | O31 D01 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33654&r=ino |
| By: | Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Scott, John T. (Dartmouth College) |
| Abstract: | This paper summarizes National Institute of Standards and Technology’s (NIST’s) previous economic impact analyses and provides guidelines for NIST’s management for planning, conducting, and interpreting NIST’s future economic impact analyses that (1) document the economic contribution of NIST’s investments in infrastructure technology (infratechnology) and (2) inform management about the effectiveness of past projects and guide strategic planning. <p> Motivating this agency-specific case study is the general expectation and challenge for public institutions to be accountable for their use of public resources. Economic impact analysis is one way that public institutions can quantify the social contribution of their activity. Impact analysis can also provide important lessons to management about the effectiveness of previous resource allocation decisions, and it can provide guidelines for future strategic planning. <p> This paper discusses each of the 17 NIST economic impact analyses in the context of the stages of economic activity—R&D, production, or commercialization—benefiting from the infrastructure technology research studied in each analysis. The analyses find that there are typically benefits for private-sector conduct of R&D because R&D is more difficult without state-of-the-art infratechnologies, such as measurement and test methods and critically evaluated scientific data. There are benefits for production because data, measurement methods, process control models, etc. contribute to better process control. Also, there are benefits for commercialization because products are of higher quality (yielding more value to consumers) and the infratechnologies lower transaction costs through product acceptance testing standards (lower overall acquisition costs for consumers and accelerate market penetration). <p> In addition to discussing the findings in the 17 analyses about the benefits for the three stages of activity, the paper explains how the benefits of NIST’s infratechnology investments occur throughout the supply chains in industry, from the producers of materials through the producers of intermediate products to the final consumers of the product or service. The 17 analyses are also discussed in the context of where in the relevant supply chains the benefits were realized and the extent to which those benefits could be estimated quantitatively and incorporated into the evaluation metrics presented in each analysis. |
| Keywords: | economic impact analysis; NIST; social rate of return |
| JEL: | D61 H11 O22 |
| Date: | 2011–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2011_016&r=ino |
| By: | Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Ruhm, Christopher J. (University of Virginia) |
| Abstract: | In this paper we show that the patenting behavior of creative entrepreneurs is correlated with the patenting behavior of their fathers, which we refer to as a source of the entrepreneurs’ human capital endowments. Our argument for this relationship follows from established theories of developmental creativity, and our empirical analysis is based on survey data collected from MIT’s Technology Review winners. |
| Keywords: | patents; entrepreneurship; human capital endowments |
| JEL: | J24 L26 O34 |
| Date: | 2011–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2011_015&r=ino |
| By: | Link, Albert N. (University of North Carolina, Greensboro); Ruhm, Christopher J. (University of Virginia) |
| Abstract: | In this paper we show that the patenting behavior of creative entrepreneurs is correlated with the patenting behavior of their fathers, which we refer to as a source of the entrepreneurs' human capital endowments. Our argument for this relationship follows from established theories of developmental creativity, and our empirical analysis is based on survey data collected from MIT's Technology Review winners. |
| Keywords: | patents, entrepreneurship, human capital endowments |
| JEL: | J24 O31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5988&r=ino |
| By: | Albert N. Link; Christopher J. Ruhm |
| Abstract: | In this paper we show that the patenting behavior of creative entrepreneurs is correlated with the patenting behavior of their fathers, which we refer to as a source of the entrepreneurs’ human capital endowments. Our argument for this relationship follows from established theories of developmental creativity, and our empirical analysis is based on survey data collected from MIT’s Technology Review winners. |
| JEL: | J24 L26 O31 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17441&r=ino |