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on Innovation |
| By: | Joel Waldfogel |
| Abstract: | Recent technological changes may have altered the balance between technology and copyright law for digital products. While file-sharing has reduced revenue, other technological changes have reduced the costs of bringing creative works to market. As a result, we don’t know whether the effective copyright protection currently available provides adequate incentives to bring forth a steady stream of valuable new products. This paper assesses the quality of new recorded music since Napster, using three independent approaches. The first is an index of the quantity of high-quality music based on critics’ retrospective lists. The second and third approaches rely directly on music sales and airplay data, respectively, using of the idea that if one vintage’s music is better than another’s, its superior quality should generate higher sales or greater airplay through time, after accounting for depreciation. The three resulting indices of vintage quality for the past half-century are both consistent with each other and with other historical accounts of recorded music quality. There is no evidence of a reduction in the quality of music released since Napster, and the two usage-based indices suggest an increase since 1999. Hence, researchers and policymakers thinking about the strength of copyright protection should supplement their attention to producer surplus with concern for consumer surplus as well. |
| JEL: | K11 L82 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17503&r=ino |
| By: | Giulio Cainelli; Massimiliano Mazzanti; Sandro Montresor |
| Abstract: | This paper investigates the drivers of the environmental innovations (EI) introduced by firms in local production systems (LPS). The role of firm network relationships, agglomeration economies and internationalization strategies is analysed for a sample of 555 firms in the Emilia-Romagna region, North-East of Italy. Cooperating with 'qualified' local actors - i.e. universities and suppliers - is the most important driver of EI for most firms, along with their training policies and IT innovations. The role of agglomeration economies is less clear and seems to depend on the EI propensity of more locally oriented firms playing in industrial district areas, which might even turn agglomeration economies into dis-economies. Networking effects and agglomeration economies are instead found to strongly promote the adoption of EI by multinational firms, thus highlighting the importance of local-global interactions. We provide some interesting findings for particular kinds of challenging EI in such fields as CO2 abatement and ISO labelling, generally extending the analysis of EI drivers by joining local and international factors. |
| Keywords: | Eco-innovation, foreign ownership, networking, district, agglomeration economics, local production systems |
| JEL: | C21 L60 O13 O30 Q20 Q58 F23 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1108&r=ino |
| By: | Levy, Brian |
| Abstract: | This paper lays out a comparative framework for assessing the potential, limitations and challenges of a variety of emerging institutional innovations in globalized regulation. The framework highlights two dimensions of effectiveness -- the comprehensiveness of coverage, and the credibility of the regulatory regime. Performance in relation to these two dimensions is assessed for three distinctive approaches to globalized regulation: i) Government-centric approaches, including treaties, extra-territorial regulation and government networks -- seven examples are assessed in the paper. ii) Civil regulation, including both joint initiatives by private firms and civil society, and wholly private self-regulatory approaches -- with eight examples assessed. iii) Hybrid approaches, involving multiple governmental and non-governmental stakeholders -- with three examples assessed. Overall, the assessment points to an abundance of innovation -- but a seeming failure of the many innovations to deliver more than, at best, partial successes in meeting the credibility and comprehensiveness criteria for effectiveness. The paper concludes by suggesting ways in which the distinct elements of different approaches might be combined so that the whole can be more, rather than less, than the sum of its parts. The way forward is likely to be incremental and cumulative, bottom-up as well as top down -- transcending a too neat, and ultimately unhelpful, bifurcation between civil society advocacy and technocratic rule-making.<BR> |
| Keywords: | Regulatory Regimes,Public Sector Corruption&Anticorruption Measures,Public Sector Regulation,Social Accountability,Labor Policies |
| Date: | 2011–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5841&r=ino |
| By: | Chiara Franco; Alberto Marzucchi; Sandro Montresor |
| Abstract: | This paper draws on the multi-dimensional characterization of absorptive capacity (AC) to empirically investigate the antecedents and the effects of its "potential" dimension (PAC): i.e., the firm's capacity of acquiring and assimilating external knowledge, as distinguished from its "realized" transformation and exploitation (RAC). Based on a sample of about 10,500 firms for an area of 3 EU countries (Italy, Germany and Spain) we find that the firm's reliance on external knowledge in general increases its PAC, and that this effect is magnified by the internal shocks the firm faces. However, both these effects find relevant exceptions when different kinds of external sources are considered, at different kinds of distance from the absorbing firm. Unexpectedly, social integration mechanisms in the firm makes PAC less, rather than more, inductive of innovation outcomes. On the contrary, the human capital of the firm has a positive moderating role on the PAC effects. A possible trade-off in the exploitation of the externally assimilated knowledge is suggested. |
| Keywords: | absorptive capacity; external knowledge; innovation |
| JEL: | O31 O33 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpol:1106&r=ino |
| By: | Jonathan Chiu; Cesaire Meh; Randall Wright |
| Abstract: | The generation and implementation of ideas, or knowledge, is crucial for economic performance. We study this process in a model of endogenous growth with frictions. Productivity increases with knowledge, which advances via innovation, and with the exchange of ideas from those who generate them to those best able to implement them (technology transfer). But frictions in this market, including search, bargaining, and commitment problems, impede exchange and thus slow growth. We characterize optimal policies to subsidize research and trade in ideas, given both knowledge and search externalities. We discuss the roles of liquidity and financial institutions, and show two ways in which intermediation can enhance efficiency and innovation. First, intermediation allows us to finance more transactions with fewer assets. Second, it ameliorates certain bargaining problems, by allowing entrepreneurs to undo otherwise sunk investments in liquidity. We also discuss some evidence, suggesting that technology transfer is a significant source of innovation and showing how it is affected by credit considerations. |
| JEL: | O12 O16 O3 O31 O33 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17512&r=ino |
| By: | Sandrine Labory |
| Abstract: | The paper analyses the role of external knowledge flows in the upgrading of the biomedical district of Mirandola, Emilia-Romagna region, in Italy. The district produces two types of products, namely disposables and electromedical machines, and the paper considers this second production type. The Mirandola district has been able to maintain a relatively good competitive position. The paper shows that while all firms in this sector in this region tend to have fairly good performance in terms of size and revenue growth, a significant difference exists in terms of innovation performance. Firms in the Mirandola district produce more patents and more scientific publications. From a methodological point of view, negative binomial regressions are made on the determinants of patenting and publishing activity by firms. Two major factors seem to explain the superior performance in terms of innovation. First, the significant role of the leader firms in the district. Second, linkages external to the district, namely relationships with research centres (universities in particular) located not only in the region but also in the rest of the country and abroad. The importance of external relations and institutional diversity (in terms of variety of institutions collaborating in scientific publications), appear to grow over time. |
| Keywords: | Innovation; Upgrading; Industrial districts; Biomedical sector |
| JEL: | O31 L60 R11 |
| Date: | 2011–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:201114&r=ino |
| By: | Aoife Hanley; Joaquín Monreal-Pérez |
| Abstract: | The prevalence of Internet-based sales by exporters vs. non-exporters is highlighted in a recent World Bank Report (Ferro, 2011) suggesting the use of sophisticated processes when selling overseas. We investigate the count of new process/ product innovations for a group of newly exporting Spanish firms vs. a non-exporter control group. We use propensity score kernel matching and difference-in-differences to help deal with endogenous exporting, sunk exporting costs and common macroeconomic shocks. Our results confirm that selection into exporting is largely driven by productivity and industry technological differences, consistent with exporting sunk costs. We find some evidence of ‘technology upgrading’ through higher contemporaneous process innovation rates |
| Keywords: | exporting, innovation, Propensity Score Kernel Matching, Learning-by-exporting |
| JEL: | F14 F23 O3 |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1735&r=ino |
| By: | Carlo Pietrobelli; Roberta Rabellotti |
| Abstract: | This paper addresses two research questions: How do learning mechanisms operate in different types of global value chains? What is the supporting role of the innovation system in GVC-driven learning and innovation processes? Empirical evidence is used from the authors' research as well as secondary sources. Given the highly differentiated reality behind the sketchy and simplistic term "developing countries," the paper focuses on a particular group of middle-income developing countries: Brazil, Taiwan and Mexico. |
| Keywords: | Rural & Urban Development :: Public Utilities, Financial Sector, Global Value Chains, Innovation Systems, Governance, Foreign Direct Investment, Learning, Upgrading, Productivity |
| JEL: | F23 O14 O33 |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:11098&r=ino |
| By: | Nakanishi, Yasuo |
| Abstract: | The purpose of this study is to investigate the copyright protection of intellectual property under vertical relations. Vertical relations among author, manufacturer and retailer are considered. We develop several models, each with a different structure of vertical integration. R&D levels, total quantities, profits and social welfare levels are compared. We also investigate the effect of copyright protection by modeling the cases of perfect protection, partial protection and no protection. We analyze whether copyright benefits social welfare. We explain the policy implications of our results for the protection of copyright. |
| Keywords: | R&D; Patent; Copyright; Vertical Relations; Market Structure |
| JEL: | O34 O33 O32 O31 |
| Date: | 2011–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34206&r=ino |
| By: | Xiaolan Fu; Carlo Pietrobelli; Luc Soete |
| Abstract: | This article explores in depth the role of indigenous and foreign innovation efforts in technological change and catching up in emerging economies. It also looks at the interaction between indigenous and foreign innovation. The article presents original evidence and argues that, despite the potential offered by globalisation and a liberal trade regime, the benefits of international technology diffusion can only be delivered with parallel indigenous innovation efforts and the presence of modern institutional and governance structures and conducive innovation systems. This conclusion is compounded by the expected inappropriateness of Northern technology for countries in the developing South, which calls for greater efforts to develop indigenous innovation. In this sense, indigenous and foreign innovation efforts are complementary. |
| Keywords: | Social Development :: Afro Descendants & Indigenous Peoples, Science & Technology :: New Technologies, Science & Technology :: Technology Transfer, indigenous innovation, technology transfer, technological capabilities, technological change, emerging economies |
| JEL: | F23 O33 |
| Date: | 2010–09 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:12078&r=ino |
| By: | FARACE, Salvatore (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy); MAZZOTTA, Fernanda (CELPE - Centre of Labour Economics and Economic Policy, University of Salerno - Italy) |
| Abstract: | This paper examines the determinants of innovation and its effects on small- and medium-sized firms We use the data from the OPIS databank, which provides a survey on a representative sample of firms from a province of the Southern Italy. We want to study whether small and medium sized firms can have a competitive advantage using their innovative capabilities, regardless of their sectoral and size limits. The main factor influencing the likelihood of innovation is knowledge, which is acquired through different ways. The econometric methodology consists of two bivariate models in order to estimate the probability of increased sales conditioned to the probability of innovation. We found that knowledge positively influences the probability of innovation; at the same time, knowledge has also a positive indirect effect on the increase of sales through innovation. |
| Keywords: | innovation; small and medium sized firms; human capital; networks; bivariate probit |
| JEL: | C24 C25 O31 |
| Date: | 2011–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:sal:celpdp:0120&r=ino |
| By: | Max Nathan |
| Abstract: | Ethnic inventors play important roles in US innovation systems, especially in high-tech regions like Silicon Valley. Do 'ethnicity-innovation' channels exist elsewhere? This paper investigates, using a new panel of UK patents microdata. In theory, ethnicity might affect positively innovation via 'star' migrants, network externalities from co-ethnic groups, or production complementarities from diverse inventor communities. I use the novel ONOMAP name classification system to identify ethnic inventors. Controlling for individuals' human capital, I find small positive effects of South Asian and Southern European co-ethnic group membership on individual patenting. The overall diversity of inventor communities also helps raise individual inventors' productivity. I find no hard evidence that ethnic inventors crowd out patenting by majority groups. |
| Keywords: | ethnic inventors, innovation, patents, cultural diversity, diasporas, cities |
| JEL: | J15 J24 J61 M13 O3 R11 R23 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sercdp:0092&r=ino |