nep-ino New Economics Papers
on Innovation
Issue of 2011‒11‒14
thirty-two papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Patent Pools and the Direction of Innovation - Evidence from the 19th-century Sewing Machine Industry By Ryan L. Lampe; Petra Moser
  2. Strategies for Innovation Networks By Bode, Alexander; Alig, Simon
  3. Complementarities between organizational changes, R&D activity and technological cooperation for the French manufacturing firms By Hajjem, Olfa; Ayadi, Mohamed; Garrouste, Pierre
  4. On specifying heterogeneity in knowledge production functions By Giovanni Guastella; Frank van Oort
  5. Employment Generation, Firm Size, and Innovation in Chile By Roberto Alvarez; José Miguel Benavente; Rolando Campusano; Conrado Cuevas
  6. Productivity and R&D sources in manufacturing and service firms in Catalonia: a regional approach By Mercedes Teruel; Agustí Segarra
  7. Innovation and Employment Growth in Costa Rica: A Firm-level Analysis By Ricardo Monge-González; Juan A. Rodríguez-Alvarez; John Hewitt; Jeffrey Orozco; Keynor Ruiz
  8. How do distinct firm characteristics affect behavioural additionalities of public R&D subsidies? Empirical evidence from a binary regression analysis By Iris Wanzenböck; Thomas Scherngell; Fischer Manfred
  9. Dynamics of innovation in European regions By Maria Manuela Natário; João Pedro Couto; Ascensão Maria Braga; Teresa Maria Tiago
  10. Is the European R&D network homogeneous? spatial interaction modeling of network communities determined using graph theoretic methods By Michael Barber; Thomas Scherngell
  11. Creativity, Analytical Skills, Personality Traits, and Innovation Game Behavior in the Lab: An Experiment By Agnes Bäker; Werner Güth; Kerstin Pull; Manfred Stadler
  12. Incentives and innovation: evidence from CEO compensation contracts By Francis, Bill; Hasan, Iftekhar; Sharma, Zenu
  13. A Spatial related Note on Entrepreneurship and Economic Growth By Torben Klarl
  14. Conceptualizing the Role of Geographical Proximity in Project Based R&D Networks: A Literature Survey By Cilem Selin Hazir
  15. Innovation and Growth with Financial, and Other, Frictions By Jonathan Chiu; Césaire Meh; Randall Wright
  16. Knowledge Transfer in the Mirror: Reflections on the Determinants of Research Groups and Companies Collaborative Patterns within Andalusia's Regional Innovation System By Hugo Pinto
  17. Reinforcing Innovation Effectiveness – A New Methodological Approach for Policy Evaluation By Paulo Neto; Maria Manuel Serrano
  18. A Swarm of Innovators: Information, Leadership and Innovation By Bel, Roland; Smirnov, Vladimir; Wait, Andrew
  19. University-industry linkages and the role of the geographical proximity By Renato Garcia; Veneziano Araujo; Suelene Mascarini; Emerson Santos
  20. THE ANALYSIS OF THE REGIONAL INNOVATION SYSTEMS – CZECH CASE By Jan Stejskal; Katerina Matatkova
  21. R&D-Persistency, Metropolitan Externalities and Productivity By Hans Lööf
  22. DO INNOVATION INCENTIVES WORK? EVIDENCE FROM THE ITALIAN MANUFACTURING SECTOR By Federico Biagi; Massimo Loi
  23. Integration in the European Research Area by means of the European Framework Programmes. Findings from Eigenvector filtered spatial interaction models By Thomas Scherngell; Rafael Lata
  24. Mapping Local and Regional Potentials for Inter-sectoral Technology Flows in Industrial Clusters – Empirical Results for Germany By Mirko Titze; Matthias Brachert; Hans-Ulrich Brautzsch
  25. The Evaluation of the Efficacy of the R&D European Funds in Piedmont By Davide Fantino; Giusy Cannone
  26. Employment Growth from Public Support of Innovation in Small Firms By Link, Albert N.; Scott, John T.
  27. Effects of licensing reform on firm innovation : evidence from India By Seker, Murat
  28. How is Innovation fostered under different Institutional Setup: Comparing the Electronics Cluster in Shenzhen and Dongguan, China By Wenying Fu
  29. Successful Knowledge Transfer from Universities of Applied Sciences in Germany Analysis of Best Practice Examples based on empirical analysis and expert interviews By Angelika Jager
  30. The Effects of Innovation Partnership, Foreign Ownership and Enhanced Management Practices on the Use of Patents in Brazilian Manufacturing By Barros, Henrique M.
  31. Modeling the growth effects of regional knowledge production: The GMR-Europe model and its applications for EU Framework Program policy impact simulations By Attila Varga; Péter Járosi; Tamás Sebestyén
  32. International Research Networks in Pharmaceuticals: Structure and Dynamics By Uwe Cantner; Bastian Rake

  1. By: Ryan L. Lampe; Petra Moser
    Abstract: Patent pools allow a group of firms to combine their patents as if they were a single firm. Theoretical models predict that pools encourage innovation in pool technologies, albeit at the cost of innovation in substitutes. Empirical evidence is scarce because modern pools are too recent to allow empirical analyses. This article examines data on patents and innovations by new firms for a historical pool in the sewing machine industry (1856-1877) to examine effects on innovation. Contrary to theoretical predictions, this analysis suggests that pools may discourage innovation in pool technologies and shift R&D towards technologically inferior substitutes.
    JEL: D4 K21 L10 L24 L4 N61 N81 O3
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:17573&r=ino
  2. By: Bode, Alexander; Alig, Simon
    Keywords: Innovation management, innovation strategy, innovation cooperation, innovation network
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:dar:wpaper:54933&r=ino
  3. By: Hajjem, Olfa; Ayadi, Mohamed; Garrouste, Pierre
    Abstract: This article analyzes the determinants of the French companies’ innovation activity while highlighting the importance and the complementarities of the organizational and technological practices’impact. Our results suggest on one hand, that the product or process innovation is determined by the internal and external attributes of the company (size, demand pull and technological class). On the other hand, the complementarities tests between the technological (R&D activity and technological partnership) and organizational practices showed that these strategies are interconnected and that they have complementary effects which call for their simultaneous adoption. Accordingly, to be able to benefit completely from the positive effect of the partnership and the R&D efforts on innovation, they must be accompanied by certain organizational practices related to a good skills management and the implementation of an organizational architecture facilitating the knowledge creation and sharing.
    Keywords: innovation; complementarities; technological and organizational competencies
    JEL: L23 O32 C25
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:34617&r=ino
  4. By: Giovanni Guastella; Frank van Oort
    Abstract: Within the Geography of Innovation literature, the Knowledge Production Function approach has become a reference framework to investigate the presence of localized knowledge spillovers and spatial econometric tools have been applied to study interregional spillovers. A linear specification for the KPF is assumed linking patents to R&D expenditure. This approach however suffers of different drawbacks. First patent applications are count data in nature. Patents per inhabitants may produce an unrealistic picture of the spatial distribution of innovative activities. Secondly, spatial heterogeneity is not usually observed, producing both omitted variables bias and spatial correlation in the error structure. Third, a positive R&D-patents linkage may arise as a spurious correlation if market size is not observed, causing R&D to be endogenous. This paper uses a regional cross section model to study the spatial distribution of high tech patents across 232 European regions in the period 2005/2006 to address these issues. Two main processes drive technological change in the model: research activities and knowledge generated outside firms and in a second moment embedded through either formal or informal acquisition. Among the different knowledge sources we particularly focus on the role of firms working in Knowledge Intensive Business Services and on that of universities. In developing the empirical model we take into account that a) patents are count data; b) the exclusion of market size will cause biased and inconsistent model parameters estimates; c) estimates of interregional spillovers may be biased by the omission of heterogeneity in the model specification. Empirical results indicate that, as expected, a count data distribution best fits the data, producing less spatially autocorrelated residuals. Regional innovative activity is explained by both investments in research and localization of KIBS, but only the first generates positive interregional externalities. Scientific universities do not directly affect the production of new knowledge. However, different knowledge production processes characterize regions with and without scientific universities, with R&D driving innovation in the sooner and KIBS in the latter. Finally, most of what are assumed to be interregional spillovers reveal to be, at a more careful inquiry, effect due to unaccounted spatial heterogeneity in regional innovation.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1114&r=ino
  5. By: Roberto Alvarez; José Miguel Benavente; Rolando Campusano; Conrado Cuevas
    Abstract: This paper compiles and analyzes several sources of information to shed light on the relationship between innovation and employment growth in the manufacturing industry in Chile in the last 15 years. Our overall conclusions are that process innovation is generally not found to be a relevant determinant of employment growth, and that product innovation is usually positively associated with an expansion in employment. These results seem to be similar regardless of firm size and hold for both low- and high-tech industries. Our findings reveal that in-house R&D (make only strategy) is positively related with employment growth. However, this is not the case for the sample of small firms. With respect to employment growth by types of workers, skilled vs. unskilled, the evidence is less robust. However, in-house R&D appears to favor employment growth for both types of workers in low-tech industries.
    Keywords: Science & Technology :: Research & Development, Labor :: Workforce & Employment, Science & Technology :: New Technologies, Innovation, new technology employment, research & development, Chile
    JEL: D2 J23 L1 O31 O33
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:idb:brikps:54258&r=ino
  6. By: Mercedes Teruel; Agustí Segarra
    Abstract: This paper draws on a sample of innovative Catalan firms to identify the effects of the two main sources of innovation —internal R&D and external R&D acquisition— on productivity in the manufacturing and service industries. The sample comprises a 3,267 firms from the CIS-4 for the years 2002-2004. We compare empirical results when applying usual OLS and quantile regression techniques. Our results suggest the different patterns attributable to the two sources of innovation as we move up from lower to higher conditional quantiles. First, the effect of the marginal effect of internal R&D on productivity in both sectors decreased as we moved up to higher productivity levels. Second, the marginal effect of external R&D acquisition increased as we moved up to higher productivity levels, especially in high-tech manufacturing industries. Our empirical results suggest that the link between internal and external R&D is complex, varying between firms’ productivity levels and between industries.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1860&r=ino
  7. By: Ricardo Monge-González; Juan A. Rodríguez-Alvarez; John Hewitt; Jeffrey Orozco; Keynor Ruiz
    Abstract: This paper studies the degree to which innovation by Costa Rican manufacturing firms creates or displaces employment, how different innovation strategies affect employment, and how these effects vary by firm size and type of employment demand characteristics (skills and gender). In particular the research focuses on the differential effects of product and process innovations on employment growth. Particular attention is paid to identifying innovation impacts on employment generation by SMEs (small and medium-sized enterprises).
    Keywords: Science & Technology :: Research & Development, Labor :: Workforce & Employment, Private Sector :: SME, Science & Technology :: New Technologies, Innovation, employment, skills, genders, SMEs, Costa Rica
    JEL: O31 O38
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:idb:brikps:54278&r=ino
  8. By: Iris Wanzenböck; Thomas Scherngell; Fischer Manfred
    Abstract: In the recent past, interest of Science, Technology, and Innovation (STI) policies to influence the innovation behaviour of firms has been increased considerably. This gives rise to the notion of behavioural additionality, broadening traditional evaluation concepts of input and output additionality. Though there is empirical work measuring behavioural additionalities, we know little about what role distinct firm characteristics play for their occurrence. The objective is to estimate how distinct firm characteristics influence the realisation of behavioural additionalities. We use survey data on 155 firms, considering the behavioural additionalities stimulated by the Austrian R&D funding scheme in the field of intelligent transport systems in 2006. We focus on three different forms of behavioural additionality – project additionality, scale additionality and cooperation additionality – and employ binary regression models to address this question. Results indicate that R&D related firm characteristics significantly affect the realisation of behavioural additionality. Firms with a high level of R&D resources are less likely to substantiate behavioural additionalities, while small, young and technologically specialised firms more likely realise behavioural additionalities. From a policy perspective, this indicates that direct R&D promotion of firms with high R&D resources may be misallocated, while attention of public support should be shifted to smaller, technologically specialised firms with lower R&D experience.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p297&r=ino
  9. By: Maria Manuela Natário; João Pedro Couto; Ascensão Maria Braga; Teresa Maria Tiago
    Abstract: There is interest in both academic literature and regional governments about the innovativeness of regions and the drivers of that competitiveness, especially if considering the impact on economic development and social progress. Innovation is the base for the global competitiveness. Innovative capacity enables regions to increase their productivity and attract investments, thereby sustaining continuous progress in the quality and standard of living. This study aims to measure regions’ innovativeness in different European regions and to evaluate the nature of the innovation process and the relationship existing between its innovativeness’ and its region of origin. It proceeds from the assumption that the competitiveness of a region is reflected in its innovation capacity or innovation dynamic. The literature review regarding regions’ innovativeness produces some insights regarding to the effect of contextual elements on regions performance. Thus, the objective is to compare the European regions to verify the existence of subjacent clusters and find out the characteristics that distinguish the different group of regions. The innovative capacity is considered in terms of innovative output and several factors are analysed to identify and differentiate the dynamics of innovations of the regions. The results point to the existence of five groups of regions, and the factors identified are related to innovation process, namely forms of innovation, factors and objectives of innovation and with aspects related to the innovation framework such as tertiary education and life-long learning, business and public R&D expenses, and level of collaboration for innovating.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p466&r=ino
  10. By: Michael Barber; Thomas Scherngell
    Abstract: Interactions between firms, universities, and research organizations are crucial for successful innovation in the modern knowledge-based economy. Systems of such interactions constitute R&D networks. R&D networks may be meaningful segmented using recent methods for identifying communities, subnetworks whose members are more tightly linked to one another than to other members of the network. In this paper, we identify such communities in the European R&D network using data on joint research projects funded by the fifth European Framework Programme. We characterize the identified communities according to their thematic orientation and spatial structure. By means of a Poisson spatial interaction model, we estimate the impact of various separation factors – such as geographical distance – on the variation of cross-region collaboration activities in a given community. The European coverage is achieved by using data on 255 NUTS-2 regions of the 25 pre-2007 EU member-states, as well as Norway and Switzerland. The results demonstrate that European R&D networks are not homogeneous, instead showing relevant community substructures with distinct thematic and spatial properties.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p392&r=ino
  11. By: Agnes Bäker (University of Tübingen, Department of Business and Economics); Werner Güth (Max Planck Institute of Economics, Strategic Interaction Group); Kerstin Pull (University of Tübingen, Department of Business and Economics); Manfred Stadler (University of Tübingen, Department of Business and Economics)
    Abstract: nnovative behavior is mostly studied theoretically, e.g., in models of patent races, and empirically, e.g., by using R&D or patent data. This research, however, is only poorly informed about the psychological tradition of creativity research. Our study is an attempt to experimentally collect behavioral data revealing in how far creativity, analytical skills, personality traits and innovation game behavior in the lab are interrelated. With the help of a within-subject design we find that participants' performance in the innovation games is in fact related to their creativity, risk tolerance and self-control. Other personality traits such participants' anxiety, independence, tough-mindedness and extraversion, if any, only play a minor role, and the same is true for participants' analytical skills.
    Keywords: Creativity, personality traits, innovation games, experiments
    JEL: C91 L13 O31
    Date: 2011–11–09
    URL: http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2011-056&r=ino
  12. By: Francis, Bill (Lally School of Management, Rensselaer Polytechnic Institute); Hasan, Iftekhar (Lally School of Management, Rensselaer Polytechnic Institute, and Bank of Finland); Sharma, Zenu (Long Island University)
    Abstract: We investigate the relationship between chief executive officer (CEO) compensation and innovation. In an empirical examination of compensation contracts of S&P 400, 500, and 600 firms we find that long-term incentives in the form of options are positively related to patents and citations to patents. In addition, convexity of options has a positive effect on innovation. We also find no relationship between pay for performance sensitivity (PPS) with patents and citations to patents while we did discover a positive relationship between these and golden parachutes. Finally, we show that subsequent to project failure managers’ compensation contracts are reset favourably. We provide support for the theory that compensation contracts that offer long-term commitment and protection from failure are more suitable for innovation.
    Keywords: CEO compensation; innovation and incentives
    JEL: D82 O31
    Date: 2011–10–03
    URL: http://d.repec.org/n?u=RePEc:hhs:bofrdp:2011_017&r=ino
  13. By: Torben Klarl
    Abstract: A large and still growing body of literature suggests that entrepreneurship is of exceptional importance in explaining regional specific efficiencies of knowledge spillovers. Although quantifying the impact of entrepreneurial activity for economic growth is an interesting issue -- particularly at the regional level -- a consice formulation within a theoretical growth model is missing. This paper in general tries to uncover the link between own- and neighbour-related regional entrepreneurial activity in innovation and regional growth within a spatial semi-endogenous growth model in the spirit of Jones (1995) reflecting recent empirical findings on entrepreneurial activity for economic growth. The paper makes the following points: firstly, the degree of tacit knowledge spillover within the R\&D-sector is positively related to own and neigbhour-related entrepreneurial activity and secondly, for a given entrepreneur's willingness to invest in R\&D-projects the degree of tacit knowledge spillover is higher with stronger institutions. The paper derives an explicit solution for the transitional as well as for the balanced growth path level of entrepreneurs' innovative activities.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p278&r=ino
  14. By: Cilem Selin Hazir
    Abstract: Empirical evidence shows that research is being carried out more in cooperation or in collaboration with others, and the networks described by these collaborative research activities are becoming more and more complex. This phenomenon brings about new strands of research questions and opens up a different research context in the area of geography of innovation. The recent set of literature addressing these new issues shows a high degree of variation in terms of focus, approaches and methodology. Hence to elucidate the relationship between networks and geography it is crucial to have a review them. In this regard, this study focuses on a particular type of networks, namely, project based R&D networks and aims at describing the state-of-the-art in explaining the specificity of geography in formation and evolution of such networks. Towards this aim, we framed the discussion along four lenses: the specificity of geography in partner choice, in successful execution of the collaboration, in the resulting innovation performance both at the organizational and regional level, and the spatio-temporal evolution of networks. The overview provided by the survey is suggestive regarding the theorization of geography and network relationship, and informative regarding the issues demanding further research effort, and promising extensions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1616&r=ino
  15. By: Jonathan Chiu; Césaire 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.
    Keywords: Economic models; Potential output; Productivity
    JEL: E4 G2 O3 O4
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:bca:bocawp:11-25&r=ino
  16. By: Hugo Pinto
    Abstract: Knowledge transfer is a crucial aspect for the new paradigm of science-industry cooperation. The new role of universities and the relevance of external knowledge to firm's competitiveness brought a huge attention to this process both in analytical and decision-making terms. Commonly, formal mechanisms as intellectual property rights licensing, research contracts and spinning-off are the focus of the policy interventions and studies but the role of informality is being underlined by several recent research results. This article explores the crucial factors that induce science and industry collaborations in Andalusia, a catching-up region in Spanish and European context. The study uses limited dependent and count data regression analysis based in a survey applied in parallel to research groups and firms. The estimated regressions create a mirror image between these two institutional spheres stressing aspects that are more relevant in each reality to stimulate the existence, number, diversity and informality of knowledge transfer. The results give relevant insights for policies to stimulate knowledge transfer in technology moderate intensive South European regions.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p212&r=ino
  17. By: Paulo Neto; Maria Manuel Serrano
    Abstract: ‘Innovation is the ability to take new ideas and translate them into commercial outcomes by using new processes, products or services in a way that is better and faster than the competition’ (Nedis & Byler, 2009). Innovation is considered as an important competitiveness factor for companies and a source of wealth for economies. Therefore it is an important subject of policy intervention and regional development. The understanding of what innovation is has evolved in the past decades away from a purely technological definition – of new products and processes introduced on the market, to a wider one including organisational and marketing aspects or incremental innovation in low tech production companies and more recently, innovation in services (European Commission, 2008). The main purpose of this paper is to propose a new methodology for territorial analysis and planning focused on innovation and knowledge transfer and in its governance mechanisms. A new methodology which is intended that can contribute to strengthen the present analytical tools applied to the processes of regional innovation and technology transfer. A new methodology that seeks, for each specific territorial context, contribute to the following results: 1) Evaluate the socio-economic and territorial impacts of knowledge transfer and technology diffusion; 2) Mapping territorial innovation effects and pathways – reinforcing innovation mapping and strategic planning; 3) Monitor innovation productivity, competitiveness and its systemic effects; 4) Monitor the innovation implementing processes and public policies, and support the multidimensional and multiscale evaluation of its results; 5) Better understand the knowledge transfer and technology diffusion in a specific territorial bases; 6) Increase the understanding of local and regional contexts of innovation governance.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p514&r=ino
  18. By: Bel, Roland; Smirnov, Vladimir; Wait, Andrew
    Abstract: We study the interplay between innovation, communication in an organization and leadership. Although a firm requires both strong leadership and sufficient communication in order to innovate, we posit that frequent communication - particularly amongst strong leaders and in larger firms - can lead to disagreement and innovation breakdown. Using a survey of 3000 French firms we find that, on their own, firm size, regular communication and result-oriented leadership are all positively associated with innovation. However, there is a negative relationship between successful innovation and: (i) frequent communication in larger firms; and (ii) frequent communication with result-oriented leadership.
    Keywords: leadership; breakdown; communication; innovation
    Date: 2011–11
    URL: http://d.repec.org/n?u=RePEc:syd:wpaper:2123/7871&r=ino
  19. By: Renato Garcia; Veneziano Araujo; Suelene Mascarini; Emerson Santos
    Abstract: The main aim of this paper is to exam the local dimension of the university and industry linkages. It is widely recognized in the literature that academic research is an important source of new knowledge to the innovative efforts of the firms. Many authors, such as Audrescht and Feldman (1996), Acs and Varga (2005), Breschi and Lissoni (2009), have shown that academic research is positively correlated with firms’ innovation at the geographical level. There are two reasons that are pointed out for this correlation. First, there are many ways in which knowledge generated by academic research can spill over to the firms, such as research papers, patents and informal contacts. Second, geographical proximity can encourage cooperation between academic researchers and the R&D staff in the firms. In this way, this paper tries to measure empirically the geographical dimension of the university-industry linkages in Brazil, in the same way to the first effort presented in ERSA 2010 (Garcia et al, 2010). To do that, it was used data from the Brazilian Research Council (CNPq), collected at the CNPq Directory of Research Groups of Brazilian universities. The data shows that in 2008 there were 22,797 research groups from 422 institutions. Among these research groups, 2,726 declared that they have interactions with more than 3,800 firms, which means 5,132 interactions between university and industry. Data were organized both in firm-level and in research group-level; allow the identification of the localization of the firm and of the research group. Among the 5,132 interactions between firms and research groups, it was possible to see that 43.6% of interactions occur inside the same city; 51.2% inside the same region; and 75.3% in the same state. These results show the importance of the local dimension of the interactions between academic research of the university and innovative efforts of the firms. In addition, it was done some empirical tests in order to identify the main factors that contribute to foster university-industry linkages.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p581&r=ino
  20. By: Jan Stejskal; Katerina Matatkova
    Abstract: Czech Republic does not belong among the leaders, whose economies are characterized by strong focus on innovation, science and research. To make the situation gradually improved, there the strategic documents and concepts must exist and also very specific tools to influence the formulation of the field at certain levels of state. Czech Republic still 10 years create, update and proceed accordingly according to these documents. But more pronounced shift to focus on innovation and their impact on competitiveness is not clear. The paper focuses on the analysis of the strategic framework for supporting regional innovation systems, their components and support for regional actors who are capable of producing innovation and commerce them. Contribution will be based on the current situation in the Czech Republic.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p61&r=ino
  21. By: Hans Lööf
    Abstract: Firms display persistent differences as regards both internal and external characteristics, and these differences correspond to asymmetries in the performance of firms with regard to productivity level and growth as well as innovativeness. This paper focuses on one internal characteristic and one external factor by distinguishing between firms with persistent R&D efforts and other firms and firms located in a metropolitan region versus firms with other locations. Applying Swedish data on individual firms and their location, the paper shows that firms that follow a strategy with persistent R&D efforts have a distinctly higher level of productivity across all types of location. In addition, the productivity level of firms with persistent R&D is augmented in a significant way when such firms have a metropolitan location and, in particular, a location in a metropolitan city
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1396&r=ino
  22. By: Federico Biagi; Massimo Loi
    Abstract: The main purpose of this study is to investigate upon the impact of fiscal incentives on firm’s innovative performance. We use data from the 7th, 8th and 9th waves of the “Indagine sulle Imprese Manifatturiere Italiane†by Unicredit (previously managed by Capitalia-Mediocredito Centrale), which contains information on both product and process innovation by manufacturing firms, on the amount of resources invested in R&D (if such amount is positive) and it is also informative of the existence of forms of fiscal incentive for R&D and investment in innovative activities. In our study we use different techniques. First we look at Average Treatment Effects, under the assumption of “selection on observablesâ€, implying that the econometrician has access to all the variables affecting the likelihood of being treated. In this part of the paper we verify whether -everything else constant (i.e. for a given value of the propensity score)- there is evidence that firms that have access to fiscal incentives tend to innovate more. In the second part of our study we cast some doubts on the plausibility of the “selection on observables†assumption and we look more in depth at one specific case of fiscal incentive: the one provided by Law 140/1999 to firms located in “depressed areas†(as defined by the law itself). We focus on this law because it is particularly important from a policy perspective within the Italian dual economy, but also because it allows us a more precise estimate of the treatment effect in a situation where treatment status (i.e. access to the incentive) is likely to depend to the same (unobserved) factors that affect the innovation outcome. In such a situation OLS estimated are biased and inconsistent and we have to use instrumental variable estimation. We choose to instrument treatment using the eligibility rules for treatment and we find the confirmation that indeed an endogeneity issue exists and that its effects are stronger the weaker is the impact of treatment on the outcome variable.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p681&r=ino
  23. By: Thomas Scherngell; Rafael Lata
    Abstract: One of the main goals of the European Research Area (ERA) concept is to improve coherence and integration across the European research landscape by removing barriers for collaborative knowledge production in a European system of innovation. The cornerstone of policy instruments in this context is the European Framework Programme (FP) that supports pre-competitive collaborative R&D projects, creating a pan-European network of actors performing joint R&D. However, we know only little about the contribution of the FPs to the realisation of ERA. The objective of this study is to monitor progress towards ERA by identifying the evolution of separation effects, such as spatial, institutional, cultural or technological barriers, which influence cross-region R&D collaboration intensities between 255 European NUTS-2 regions in the FPs over the time period 1999-2006. By this, the study builds on recent work by Scherngell and Barber (2009) that addresses this question from a static perspective. We employ Poisson spatial interaction models taking into account spatial autocorrelation among residual flows by using Eigenvector spatial filtering methods. The results show that geographical distance and country border effects gradually decrease over time when correcting for spatial autocorrelation among flows. Thus, the study provides evidence for the contribution of the FPs to the realisation of ERA.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p304&r=ino
  24. By: Mirko Titze; Matthias Brachert; Hans-Ulrich Brautzsch
    Abstract: The paper explores the potential for inter-sectoral technology flows in industrial clusters in Germany. With the help of a product-embodied R&D flow matrix, calculated using data on input–output tables and sectoral R&D employment, we construct industrial cluster based networks of technology provider and user relationships and examine the regional embeddedness of different sectors in the technological diffusion network of industrial clusters. As a result, the paper shows that simple graphical representations of relevant product-embodied R&D flows illustrate substantial differences in potentials for technological relations within industrial clusters.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p660&r=ino
  25. By: Davide Fantino; Giusy Cannone
    Abstract: This paper provides some empirical evidence of the impact of two policy measures, aiming at supporting innovative activity of small and medium firms in Piedmont. Both measures use European Structural Funds, but are managed at a regional level. Measure 2.1b, a concessional loan aiming at stimulating the introduction of innovative plants, machinery and equipments, had positive effects on investments, assets and sales in the short run; but there are hints that investments could have been anticipated from already scheduled projects in the following periods. Measure 2.6b, a free grant aiming at stimulating research activity of firms, had positive effects on intangible investments and capital, but this new knowledge does not seem to be able to directly impact on the production process of the firm. When evaluating the effect for specific groups of firms, for both measures we do not find stronger effects for firms characterized by a high intensity of subsidy. When considering firms with a high cost of capital, we find that Measure 2.1b significantly reduced the interest rate asked by the lenders also after the end of the project, while Measure 2.6b had not been effective at all.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p228&r=ino
  26. By: Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Scott, John T. (Dartmouth College)
    Abstract: We investigate the impacts of the U.S. publicly-funded Small Business Innovation Research (SBIR) program’s funding on the overall employment growth of SBIR-award recipient firms. This paper is motivated by the U.S. Congress’ continued emphasis of employment growth during its deliberations on the reauthorization of the SBIR program. We set forth a model of employment growth; the model offers a framework through which we can compare the firm’s actual level of employment after receipt of an SBIR award and completion of the research project to the level of employment predicted by the firm’s characteristics prior to the award. Using data collected by the National Research Council within the National Academies, we estimate our model, and we conclude that, on average, the overall employment effects associated with the SBIR program are large absolutely and relative to dollars of funding, but these effects are, in general, not statistically significant.
    Keywords: Employment growth; Entrepreneurship; Innovation; Technology; Small business
    JEL: J48 L26 O31 O38
    Date: 2011–10–31
    URL: http://d.repec.org/n?u=RePEc:ris:uncgec:2011_017&r=ino
  27. By: Seker, Murat
    Abstract: The regulatory environment in a country can affect firm performance. This study investigates the impact of a particular regulation, namely license requirements for certain firm activities, on the innovation performance of Indian firms. First it presents a model of firm and industry evolution that explains the dynamics of multi-product firms. Then, using a firm level panel data set, it shows that removal of license requirements led to roughly 5 percentage points faster innovation rates where innovation is measured as introduction of new product varieties that had not existed in the market. The results are robust to inclusion of controls for the other policy reforms that occurred during the period of licensing reform.
    Keywords: E-Business,Labor Policies,Microfinance,Markets and Market Access,Knowledge for Development
    Date: 2011–11–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:5876&r=ino
  28. By: Wenying Fu
    Abstract: The primary focus of this paper is to provide empirical evidence on how innovation is generated and fostered under different institutional setup. Two different institutional setups which evolve from planned economy to market economy in China during the transition, i.e. top-down and bottom-up institutions to promote industrial development, are discussed in the context of our study area, i.e. Dongguan and Shenzhen in Pearl River Delta, China. Drawing on the firm survey data collected in the electronics industry of Dongguan and Shenzhen, this paper explores the factors that foster the innovation activities respectively under these two different institutional setups. The results shows that the flexible institutions organized from bottom up targeting at attracting process trade, which is dominant in Dongguan, restricts the scope of interaction and learning related to innovation and would probably lock-in the city in low-end production activities if the existing institutional setup cannot be broken up. On the other hand, institutional setup favoring the agglomeration of knowledge-related and knowledge-intensive institutes and ex-ante strategic support organized from top down in Shenzhen economic special zone contributes to the reciprocal and systematic interaction between firms as well as knowledge institutions. Finally, policy implication is further discussed by comparing the territorial innovation system in Europe and America where innovation institutions are mature, concluding that the capacity of public and private institutions should be strengthened to form the stable systematic interaction to foster innovation in the long run.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p736&r=ino
  29. By: Angelika Jager
    Abstract: It is commonly accepted that universities are a source of new knowledge and an important part of innovation systems. Innovation and new knowledge are key drivers for regional economic growth and the economy of knowledge-based societies. Yet, regardless how prosperous universities’ research establishments prove to be, success in terms of economic effects and economically successful application strongly depends on how effectively the gathered knowledge and created innovation is transferred to society, the industry, and innovation networks. Therefore, the organization and governance of knowledge transfer has become an important strategic issue for universities. In times of performance related allocation of funds, this holds especially true for German universities of applied sciences, as they are very dependent on contract research and successful knowledge transfer as a source of funding for research activities. The interface of research and application of knowledge offers high potential – both for success and failure. Several models of governance and support exist. Governments and universities invest millions in transfer departments with a diversity of jobs and tasks. Some financially encourage research and knowledge transfer in general. Others are convinced that only very successful establishments should be supported. Support can be organized centrally or peripheral in the university departments, in private companies or private-public-partnerships. The proposed paper investigates models of organizing and supporting knowledge transfer focusing on German universities of applied sciences. By developing a composition of important indicators and applying empirical analysis on nationwide databases, seven best practice examples are identified. Further best practices analysis is accomplished by online research, site and region inspection and expert interviews with the universities’ representatives for knowledge transfer. The investigation proves that successful knowledge transfer depends on both internal and external factors. External factors often have strong influence and offer a high potential that needs to be realized, but can hardly be influenced. Analyzing the internal factors, it is underlined that no perfect way for organizing and managing knowledge transfer exists. But investigating the varying successful models, several conform features and interesting similarities can be identified. Keywords: Knowledge Transfer, German Universities of Applied Sciences, Best Practices Analysis
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1332&r=ino
  30. By: Barros, Henrique M.
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:ibm:ibmecp:wpe_255&r=ino
  31. By: Attila Varga; Péter Járosi; Tamás Sebestyén
    Abstract: This paper introduces the Geographic Macro and Regional (GMR) model for NUTS-2 regions of the Euro zone. This model consists of three blocks: the TFP, the SCGE and the MACRO blocks. The model is built for impact analysis of policies targeting intangible assets in the forms of R&D, human capital and social capital. The analysis can be done both at the regional and the EU macroeconomic levels. Policy simulations on the growth impacts of the 6th European Framework Program illustrate the capabilities of the complex model system.
    Date: 2011–09
    URL: http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1426&r=ino
  32. By: Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Bastian Rake (Friedrich-Schiller-University Jena, Graduate College "The Economics of Innovative Change")
    Abstract: Knowledge production and scientific research have become increasingly more collaborative and international, particularly in pharmaceuticals. We analyze international research networks on the country level in different disease groups. Our empirical analysis is based on a unique dataset of scientific publications related to pharmaceutical research. Using social network analysis, we find that both the number of countries and their connectivity increase in almost all disease groups. The cores of the networks consist of high income OECD countries and remain rather stable over time. We use network regression techniques in order to analyze the dynamics of the networks. Our results indicate that an accumulative advantage based on preferential attachment and point connectivity as a proxy for multi-connectivity are positively related to changes in the countries' collaboration intensity.
    Keywords: International Cooperation, Pharmaceuticals, Research Networks, Network Dynamics, MRQAP
    JEL: R10 O31
    Date: 2011–11–08
    URL: http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2011-055&r=ino

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