nep-ino New Economics Papers
on Innovation
Issue of 2012‒01‒25
29 papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. The European Research Framework Programme and innovation performance of companies. An empirical impact assessment using a CDM model By Abraham Garcia
  2. The Value of Failures in Pharmaceutical R&D By Jing-Yuan Chio; Laura Magazzini; Fabio Pammolli
  3. Strategic Sourcing of R&D: The Determinants of Success By Jacques Brook; Albert Plugge
  4. Access to finance for innovation: the role of venture capital and the stock market By Francesco Bogliacino; Matteo Lucchese
  5. How a Smart Follower Becomes a Top Performer: An Institutional Innovation Perspective on Competitive Advantage By Jacques Brook
  6. The 4th Science and Technology Basic Plan: A National Innovation System for New Challenges - Role of East Asia and Small & Medium Businesses By Aoki, Reiko
  7. Capable companies or changing markets? Explaining the export performance of firms in the defence industry By Castellacci, Fulvio; Fevolden, Arne
  8. Community as a locus of innovation: co-innovation with users in the creative industries By Guy Parmentier; Vincent Mangematin
  9. The Transaction Cost Benefits of Electronic Patent Licensing Platforms: A Discussion at the Example of the PatentBooks Model By Ghafele , Roya; Gibert, Benjamin
  10. Intangible resources: the relevance of training for European firms’ innovative performance By Daria Ciriaci
  11. Energy and Material Efficiency Innovations: The Relevance of Innovation Strategies By Bönte, Werner; Dienes, Christian
  12. The European Emission Trading Scheme and environmental innovation diffusion: Empirical analyses using Italian CIS data By Giulio Cainelli; Massimiliano Mazzanti; Simone Borghesi
  13. Perspectives on Public Private Partnership: The R&D Based Vaccine Industry By Edith Maes; Rutger Daems
  14. Innovation and the environmental Kuznets curve: the case of CO, NMVOCs and SOx in the Italian regions By Donatella Baiardi
  15. "Productivity and innovation spillovers: Micro evidence from Spain" By Esther Goya; Esther Vayá; Jordi Suriñach
  16. Job creation in business services: innovation, demand, polarisation By Francesco Bogliacino; Matteo Lucchese; Mario Pianta
  17. Les réseaux d'innovation public-privé dans les services (RIPPS) ne sont pas des réseaux d'innovation (RI) comme les autres : quels enseignements pour les politiques publiques ? By Faridah Djellal; FaÏz Gallouj
  18. Product differentiation and systematic risk: theory and empirical evidence By Bazdresch, Santiago
  19. Innovation and skill dynamics : a life - cycle approach By Francesco Vona;
  20. Welfare improving taxation on savings in a growth model By Long Xin; Pelloni Alessandra
  21. Transaction costs, externalities and innovation By Estrada, Fernando
  22. The Dynamics of Inter-Regional Collaboration – An Analysis of Co-Patenting By Sidonia von Proff; Thomas Brenner
  23. Innovation and Education: Is there a ‘Nerd Effect’? By Goldbach, Stefan
  24. Public Funded Research and Innovation in the Green Economy By Massimiliano Volpi
  25. Costos de transaccion, externalidades e innovación By Estrada, Fernando; Diaz, Natalia
  26. The design of licensing contracts: Chemicals, Pharmaceuticals, and Electrical Engineering in Imperial Germany By Carsten Burhop; Thorsten Lübbers
  27. The Effect of Pharmaceutical Innovation on the Functional Limitations of Elderly Americans Evidence from the 2004 National Nursing Home Survey By Frank R. Lichtenberg
  28. Foreign Aid for Innovation: The Missing Ingredient in Private Sector Development? By Wim Naudé
  29. Dissemination of Regenerative Medicine in Japan: Promoting commercialization under the regulatory system By KURATA Kenji; CHOI Youn-Hee

  1. By: Abraham Garcia (JRC-IPTS)
    Abstract: The effect of the EU Research Framework Programme (FP) on European company innovation performance is analysed for the period 1998-2000. The possibility of applying for the grant might make companies engage in new projects which they would not have considered if the fund was not there. In addition, the FP programme increases collaboration with other innovation agents (e.g., universities, research labs, governments and other firms). Both the existence of FP and collaboration are simultaneously modelled when innovation performance is studied. To measure innovation performance, an input indicator (level of R&D expenditure) is used in combination with an output indicator (increase in the innovation sales). Following Crepon et al. (1998) a simultaneous equations system is used with four equations (FP, collaboration, R&D and Innovation sales). The paper finds a positive impact for the FP on collaboration, and both factors positively affect the innovation performance (R&D and Innovation sales) of European firms. No crowding-out effect is found in the analysis.
    Keywords: Funding, Framework Programme, R&D investment, CIS, CDM model
    Date: 2011–12
  2. By: Jing-Yuan Chio (IMT Lucca Institute for Advanced Studies); Laura Magazzini (Department of Economics, University of Verona); Fabio Pammolli (IMT Lucca Institute for Advanced Studies and CERM Foundation; IMT Lucca Institute for Advanced Studies and Department of Managerial Economics, Strategy and Innovation, K.U. Leuven)
    Abstract: We build a cumulative innovation model in which both success and failure provide valuable information for future research. To test this learning mechanism, we use a dataset covering outcomes of world-wide R&D projects in the pharmaceutical industry, and proxy knowledge flows with forward citations received by patents associated with each project. Empirical results confirm theoretical predictions that patents associated with successfully completed projects (i.e., leading to drug launch on the market) receive more citations than those associated to failed (terminated) projects, which in turn are cited more often than patents lacking clinical or preclinical information. We therefore offer evidence of the value of failures as research inputs in (pharmaceutical) innovation
    Keywords: R&D competition, patent policy, pharmaceutical industry
    JEL: D23 D83 O3
    Date: 2011–12
  3. By: Jacques Brook (Faculty of Strategy, Marketing and International Business, Maastricht School of Management, The Netherlands.); Albert Plugge (Faculty of Technology, Policy and Management, Delft University of Technology, The Netherlands.)
    Abstract: The outsourcing of the R&D function is an emerging practice of corporate firms. In their attempt to reduce the increasing cost of research and technology development, firms are strategically outsourcing the R&D function or repositioning their internal R&D organisation. By doing so, they are able to benefit from other technology sources around the world. So far, there is only limited research on how firms develop their R&D sourcing strategies and how these strategies are implemented. This study aims to identify which determinants contribute to the success of R&D sourcing strategies. The results of our empirical research indicate that a clear vision of how to manage innovation strategically on a corporate level is a determinant of an effective R&D strategy. Moreover, our findings revealed that the R&D sourcing strategy influences a firm’s sourcing capabilities. These sourcing capabilities need to be developed to manage the demand as well as the supply of R&D services. The alignment between the demand capabilities and the supply capabilities contributes to the success of R&D sourcing.
    Keywords: Sourcing strategies, R&D, outsourcing, capabilities.
    JEL: O31 O32
    Date: 2011–05
  4. By: Francesco Bogliacino (JRC-IPTS); Matteo Lucchese (University of Urbino)
    Abstract: Financial constraints for young and small firms can prevent them from supporting innovation and employment creation. We analyze two of the various institutional mechanisms which have been proposed to circumvent it: the development of venture capital market and the stock market access. We will use the information provided by two Scoreboards - used to monitor innovative activity in Europe: the Innovation Union Scoreboard and the R&D Scoreboard. With the first, we study the determinants of the venture capital/GDP intensity in Europe. With the second, we try to assess the contribution of stock market to R&D investment. In the first part, we show that venture capital market complements structural feature such as R&D intensity and market capitalization, is more volatile and seems not affected by anticompetitive regulations. In the second part, we show that unlisted SMEs are more research intensive.
    Keywords: Venture Capital, R&D, European Policy, Random Effect, Propensity Score Matching.
    JEL: M13 O31 O38
    Date: 2011–11
  5. By: Jacques Brook (Maastricht School of Management, the Netherlands)
    Abstract: The competitive advantage literature has tended to establish a strong relation between innovation leadership and high firm performance. However, we found that this is not always true. Inspired by the failure of many firms to be leaders in innovation, many other firms prefer to orient their corporate innovation strategy towards being a smart follower. Here their objective is to reduce the risks of innovations and to achieve a sustained competitive advantage. Smart followers move beyond the traditional notion of follower that focuses on the decision of not becoming a leader in particular technology domain and how to gain a cost advantage by learning from the leader. This paper discusses an institutional innovation framework based on a business system thinking approach. The objective is to assist the leadership in firms in synergizing capabilities in the interactions between the innovation dimensions. We found that firms that choose to be smart followers can become top performer if they pursue institutional innovation.
    Keywords: Innovation Strategy, Institutional Innovation, Competitive advantage, Business model innovation, technology innovation, process innovation, service and product innovation, social and sustainable innovation, performance.
    JEL: M12 M14
    Date: 2011–10
  6. By: Aoki, Reiko
    Abstract: We give and over view of the Japanese 4th Science and Technology Basic Plan, 1 April 2011 - 31 march 2016, focusing on the four major challenges: recovery & revitalization from earthquake disasters, green innovation, life innovation, and science, technology and innovation system reform. Then we examine two important topics from other essential schemes in the Basic Plan: East Asia Joint Research Program (e-Asia JRP) and Small Business Innovation Research (SBIR). e-Asia JRP consists of multilateral collaboration in science and technology research and funding among participating countries. It will constitute a part of larger East Asian collaborative efforts in science, technology and innovation. SBIR is a scheme to help individuals and new firms develop and then commercialize innovative technology and products. SBIR consists of initial subsidies and then loans on very favorable terms. We also look at three examples of SBIR success: motor insulation ideal for hybrid and electric vehicles, cancer fighting cyclodextrin, and a key system for high security machines.
    Date: 2012–01
  7. By: Castellacci, Fulvio; Fevolden, Arne
    Abstract: The paper carries out an empirical analysis of the factors explaining the export performance of firms in the defence sector. We focus on the case of Norway, and make use of two complementary methodologies: the first is based on quantitative firm-level data analysis for the whole population of defence companies, and the second is based on qualitative case study research on the three most important defence export products (weapon stations, ammunition, electronics). Our empirical results highlight the importance of four major success factors for exporting firms: (1) the participation in offset agreements; (2) the ability to focus on their set of core competencies; (3) their R&D activities and interactions with the public S&T system; (4) demand opportunities and, relatedly, user-producer interactions.
    Keywords: Defence industry; liberalization; export; R&D and innovation
    JEL: F5 M2 F1 O3 L1
    Date: 2012–01
  8. By: Guy Parmentier (ESC Chambéry - GROUPE ESC Chambéry, IREGE - Institut de Recherche en Gestion et en Economie - Université de Savoie); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble Ecole de Management)
    Abstract: The aim of the paper is to characterize innovation with user communities and to explore managerial implications for creative industries. Based on four case studies, we explore the interrelations between the firm and user communities. The digitalization and virtualization of interactions change the ways in which the boundaries between the firm and its user community are defined. User communities are actively developing new products, new services. Definitions of value differ for firms and users. Users are valuating the possibility to be creative, to transform individual creativity into products while firms are making money with innovation. Finally, innovation with user communities may modify the respective identities of firms and communities.
    Keywords: innovation; community; lead user; innovation with communities; boundaries; identity
    Date: 2011
  9. By: Ghafele , Roya; Gibert, Benjamin
    Abstract: Current mechanisms to compensate inventors and improve legal access to their inventions remain ineffective. Manufacturers encounter significant transaction costs in the process of licensing the multitude of patent rights implicated in their products. High-technology product manufacturing requires access to a diverse pool of technologies that are owned by different organizations all over the world. The transaction costs of licensing these disparate rights are inhibiting unlicensed manufacturers in emerging economies from entering important markets and simultaneously limiting the revenue patent owners can generate from non-exclusive licenses. As communications technologies improve, innovative licensing mechanisms are emerging that can help firms avoid many of these transaction costs. Search and information costs, bargaining and decision costs, enforcement costs and adjustment costs all limit the value generated from licensing transactions. These costs are particularly severe for smaller firms that lack complementary assets to develop their products, lack experience with licensing and do not have large human and financial resources to invest in negotiation outcomes. The transaction costs of licensed manufacturing increase exponentially when having to license multiple rights among disparate rightsholders in a global market. By identifying, grouping, and valuing different rights into a single license, PatentBooks, an illustration of an electronic patent licensing platform, reduces search and information transaction costs. Firms instantaneously identify appropriate license rights from all over the globe without investing considerable resources in hundreds of discrete negotiations. Patent owners are able to generate greater non-exclusive licensing revenue from manufacturers than they could by licensing their rights in isolation. In doing so, they permit firms of all sizes and nationalities to generate more returns from technology and accelerate innovation by facilitating access to valuable inventions.
    Keywords: Transaction cost economics; patent Licensing; patent archives; electronic trading platforms
    JEL: O34 O32 M21
    Date: 2011–12–20
  10. By: Daria Ciriaci (JRC-IPTS)
    Abstract: This paper assesses whether European firms’ innovative performance is impacted by investments in training directly aimed at developing and/or introducing innovation, in addition to the scale of a firm's investments in innovation proxied by the number of R&D personnels. In particular, it explores the complementarity between these two factors (in the presence of a well-trained workforce, the knowledge created by a firm’s R&D personnel can be better exploited), and their dependence on a firm's knowledge intensity (high versus low % of tertiary-educated workforce) and size (SMEs versus large firms). Using European CIS non-anonymised data for the period 1998-2000, this paper estimates a system of simultaneous equations in which investments in training and stock of R&D personnel are treated as endogenous in relation to the innovative sales on which they are presumed to have an effect. The choice to use this time period rather than more recent ones – to which I had access at the Eurostat Safe Centre – is data-driven. It has better information on training expenditures and it is the last period to provide firm-level information on the number of employees with tertiary education. Unlike the majority of CIS-based studies, the main variables of interest are continuous ones, while dummy variables are used as controls only. Empirical evidence confirms most previous results – investment in training and stock of R&D personnel positively affects firms' innovativeness – but also provides some important additional insights. Ceteris paribus, returns to training and R&D personnel are not affected by the knowledge intensity of the firm, while are always statistically significantly higher in large than in small and medium sized firms. However, while in the case of training the differences in returns between SME and large firms are small, in the case of R&D personnel are quite pronounced.
    Keywords: Intangibles, R&D investment, human capital, CIS, CDM model
    JEL: O30 O31 O32 D83 D62
    Date: 2011–12
  11. By: Bönte, Werner (Schumpeter School of Business and Economics, University of Wuppertal, Germany); Dienes, Christian (Schumpeter School of Business and Economics, University of Wuppertal, Germany)
    Abstract: This study explores the relationship between energy and material efficiency innovations (EMEIs) and innovation strategies employed by manufacturing firms to develop their process innovations. Firms may mainly develop process innovations in-house, let them mainly develop by other enterprises or institutions, or they or they may develop them jointly with external partners. The empirical analysis is based on data of European manufacturing firms obtained from the fourth Community Innovation Survey. Our results suggest that EMEIs are related to process innovation strategies. Firms which let mainly develop their process innovations by other enterprises or institutions tend to be less likely to introduce EMEIs at all and these firms are also less likely to introduce EMEIs with stronger efficiency effects. Moreover, our results do not suggest that firms following the 'cooperation strategy' are more likely to introduce EMEIs and to reach a higher EMEI performance than firms following the 'in-house strategy'.Hence, our results do not confirm the results of previous research pointing to a positive relationship between environmental innovations and cooperation with external partners.
    Keywords: energy and material efficiency, process innovations, innovation strategy
    JEL: D22 O32 O33 Q55
    Date: 2012–01
  12. By: Giulio Cainelli; Massimiliano Mazzanti; Simone Borghesi
    Abstract: We study the driving forces behind the adoption of environmental innovations (EI) in the Italian economy over 2006-2008 through empirical analyses of the new wave of Community Innovation Survey (CIS) data that covered environmental innovation adoptions in different realms (energy, carbon, production, consumption, etc..). Given the shortage of studies that have empirically assessed the innovation effects of ETS at micro econometric level, we investigate whether the first phase of EU ETS (started in 2005-2006) has exerted some effects on environmental innovations. We then include in a typical probit innovation function some policy stringency indicators, for the ETS sectors, to verify whether the likelihood of adopting environmental innovations is stimulated among other factors by the ETS lever. We test a wide and comprehensive set of potential drivers, including internal factors (R&D), external (to the firm) factors (cooperation, networking), international drivers (foreign related relationships), and mostly important, the dynamic incentives to innovation eventually provided by the ETS implementation. Estimates show that external forces and complementarity with other management practices are particularly relevant to increase the adoption of relatively new and radical technologies: relationships with other firms and institutions, local public funding, group membership are the key factors in this sense. Training is also positively related to EI, confirming recent evidence. The role of ETS on EI seems instead to be weak, but it turns out to be significant for energy efficiency innovations and for consumption level/good related reductions of atmospheric and water emissions.
    Keywords: environmental innovation; industrial sectors; ETS; innovation drivers; CIS data
    JEL: C21 L2 O33 Q38 Q55
    Date: 2012–01–12
  13. By: Edith Maes (Maastricht School of Management, Netherlands,; Rutger Daems (Planet Strategy Group, Brussels, Belgium)
    Abstract: Public and private stakeholders, including the industrialized countries vaccine industry, have since its launch in 2000 been a member of the Global Alliance for Vaccines and Immunization (The GAVI Alliance), a public private partnership that strives to save children’s lives and protect people’s health by increasing access to immunization in the poorest countries of the world. This paper examines the R&D-based industry’s strategic intent and operational model, and contributions to innovation, supply and delivery of vaccines. Building on the World Health Organization’s (WHO) general concept of global access to medicines, the purpose is to provide insights into the commitments as well as challenges faced by the innovation-driven industry, and this in the following main areas: (i) The Quest for Global Health – Vaccines for the World; (ii) Availability – Innovation, Manufacturing and Supply; (iii) Affordability – Universal Access, Equity and Pricing; (iv) Adoption – Financing and Public Awareness; and (v) Alliances – Building a Strong Public Private Partnership.
    JEL: I11 O15
    Date: 2011–11
  14. By: Donatella Baiardi (Department of Economics and Quantitative Methods, University of Pavia)
    Abstract: The paper explores the relationship between per capita income and three air pollutants, CO, NMVOCs and SOx, using a novel dataset based on the Italian regions. Given the central role of technological progress in long-term environmental problems, we empirically investigate the influence of innovation on the environmental Kuznets curve (EKC). The estimation results validate the EKC hypothesis for the three air pollutants considered. Furthermore, the influence of innovation on the inverted-U-shaped curve identified by the theoretical literature is empirically confirmed too.
    Keywords: Air pollutants, Environmental Kuznets Curve, Italian regions, Technological Progress.
    Date: 2012–01
  15. By: Esther Goya (Faculty of Economics, University of Barcelona); Esther Vayá (Faculty of Economics, University of Barcelona); Jordi Suriñach (Faculty of Economics, University of Barcelona)
    Abstract: This article analyses the impact that innovation expenditure and intrasectoral and intersectoral externalities have on productivity in Spanish firms. While there is an extensive literature analysing the relationship between innovation and productivity, in this particular area there are far fewer studies that examine the importance of sectoral externalities, especially with the focus on Spain. One novelty of the study, which covers the industrial and service sectors, is that we also consider jointly the technology level of the sector in which the firm operates and the firm size. The database used is the Technological Innovation Panel (PITEC), which includes 12,813 firms for the year 2008 and has been little used in this type of study. The estimation method used is Iteratively Reweighted Least Squares method (IRLS), which is very useful for obtaining robust estimations in the presence of outliers. The results confirm that innovation has a positive effect on productivity, especially in high-tech and large firms. The impact of externalities is more heterogeneous because, while intrasectoral externalities have a positive and significant effect, especially in low-tech firms independently of size, intersectoral externalities have a more ambiguous effect, being clearly significant for advanced industries in which size has a positive effect..
    Keywords: Productivity, innovation, sectoral externalities, firm size. JEL classification:D24, O33
    Date: 2011–12
  16. By: Francesco Bogliacino (JRC-IPTS); Matteo Lucchese (University of Urbino); Mario Pianta (University of Urbino)
    Abstract: The patterns and mechanisms of job creation in business services are investigated in this article by considering the role of innovation, demand, wages and the composition of employment by professional groups. A model is developed and an empirical test is carried out with parallel analyses on a group of selected business services, on other services and on manufacturing sectors, considering six major European countries over the period 1996-2007. Within technological activities, a distinction is made between those supporting either technological competitiveness, or cost competitiveness. Demand variables allow identifying the special role of intermediate demand. Job creation in business services appears to be driven by efforts to expand technological competitiveness and by the fast growing intermediate demand coming from other industries; conversely, process innovation leads to job losses and wage growth has a negative effect that is lower than in other industries. Business services show an increasingly polarised employment structure.
    Keywords: Business Services, Innovation, Employment.
    JEL: J20 J23 O30 O33
    Date: 2011–08
  17. By: Faridah Djellal (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université des Sciences et Technologies de Lille - Lille I); FaÏz Gallouj (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS : UMR8019 - Université des Sciences et Technologies de Lille - Lille I)
    Abstract: Le concept de réseau d'innovation est un concept bien établi qui a fait l'objet d'une abondante littérature théorique et empirique. Nous nous intéressons dans ce travail à des réseaux d'innovations particuliers, encore peu connus, mais qui se développent dans une économie de service dominante : les réseaux d'innovation public-privé dans les services (RIPPS). Les RIPPS décrivent des collaborations entre organisations de services publiques et privées dans le domaine de l'innovation. Ils diffèrent des RI traditionnels de plusieurs manières. Tout d'abord, les relations entre les acteurs publics et les acteurs privés sont placées au centre de l'analyse. Ensuite, les prestataires de services y sont les acteurs principaux. Enfin, l'innovation non technologique (innovation de service), souvent négligée dans la littérature, y est prise en compte. L'objet de ce travail est double : théorique et opérationnel. Il est, tout d'abord, d'examiner la manière dont les caractéristiques des RIPPS peuvent contribuer à modifier et enrichir le concept traditionnel de RI, et d'autre part, d'en tirer d'éventuels enseignements en matière de politique publique. Ce travail s'appuie à la fois sur un bilan de la littérature et sur l'exploitation d'une base de données d'études de cas de RIPPS constituée dans le cadre du projet européen servPPIN (Public Private Innovation Networks in Services).
    Keywords: Innovation-service-partenariat public-privé
    Date: 2012–01–05
  18. By: Bazdresch, Santiago
    Abstract: Firms producing differentiated products have high margins and therefore low risk. As a result firms invest more into developing differentiated products when they perceive risk is high. Higher risk also implies higher product skewness towards more differentiated products and therefore higher average markups. The model predicts endogenous systematic and idiosyncratic riskiness as well as endogenous intensity of competition: firms in high risk industries reduce their riskiness by competing less than firms in low risk industries. Empirical evidence on product differentiation, R\&D expenses, B/M ratios, and market $\beta$ is consistent with the model.
    Keywords: Stock Returns; Price Differentiation; Product Market Competition; Product Development; Idiosyncratic Volatility; Research and Development; Counter-Cyclical Markups; Price of Risk; Price-Cost Margin; Investment; Innovation
    JEL: L25 L16 L11 G12 E32 E22 G32 O31
    Date: 2011–10–01
  19. By: Francesco Vona (Observatoire Français des Conjonctures Économiques); (Observatoire Français des Conjonctures Économiques)
    Date: 2011–12
  20. By: Long Xin; Pelloni Alessandra
    Keywords: Capital Income taxes, R&D, growth effect, welfare effect
    JEL: E62 H21 O41
    Date: 2011–12
  21. By: Estrada, Fernando
    Abstract: There is now considerable evidence on the value of using external resources to promote the development of innovative technologies. Furthermore, the ability to experience innovations in business by external links that may help to avoid risk, improve the quality of natural products, which means qualifying business activities and promote companies capable of rationalizing and projecting high yields. This paper provides an approach from the transaction cost theory of Ronald Coase, in particular, provides preconditions to estimate the specific market of biotechnology.
    Keywords: Coase theorem; Transactions costs; Biotechnology; Ronald Coase; Innovation; Fiancial Markets
    JEL: D03 B0 B21 B2 D82 D43 B41
    Date: 2012
  22. By: Sidonia von Proff (Department of Geography, Philipps University Marburg); Thomas Brenner (Department of Geography, Philipps University Marburg)
    Abstract: The paper at hand investigates how co-patenting over distance develops when aggregating inventive activities on a regional level. That means, the object of analysis is a link between two regions in contrast to other studies, where links between two individuals or firms are investigated. We analyse which regional characteristics influence the creation and continuation of such links. The main focus lies on different types of distance. The approach adds a dynamic view to the existing, often static literature about collaboration behaviour. The regressions are done for all patent-relevant industries in Germany. We find that several distance types decrease – as expected – the likelihood of link creation but also - not in all cases expected - of link continuation.
    Keywords: patents, research collaboration, collaboration dynamics, inter-regional links, Germany
    JEL: R11 O34 L14
    Date: 2011–10
  23. By: Goldbach, Stefan
    Abstract: This paper investigates whether entrepreneurs with technical education are more innovative in high-tech industries than economists. The main contribution to the literature is in using the type of education as main explanatory variable for innovation. To analyze this question, the KfW/ZEW Start-Up Panel between 2005 and 2007 is used. Two independent OLS regressions are conducted for entrepreneurs with university degree and practical education. The results suggest that education matters for individuals with a university degree in high-tech industries but not for people with practical education. Having an economics degree is correlated with higher innovativeness. Therefore, for the underlying sample we do not find a ‘nerd effect’. The results depend on the underlying definition of innovation, as robustness checks show.
    Keywords: entrepreneurship, innovation, education
    Date: 2012–01–11
  24. By: Massimiliano Volpi (Natural Environment Research Council ‐
    Abstract: The analysis investigates the relationship between universities, public research institutes and innovation in companies belonging to the green economy. By adopting a ‘general to specific’ specification strategy ‘a la Hendry’, the analysis sheds light on previously unexplored determinants of the value of information from public research. It discovers how motivations for innovation are a significant determinant of collaboration with the public research base. Motivations which are determined externally to companies (reducing environmental impact, health and safety) are much more important to explain the value that companies assign to information from public research than motivation coming from within companies, such as increasing market share, value added or flexibility. Moreover, motivations which are related to the introduction of new products or the replacement of outdated ones (hence linked to the introduction of radical innovations) are a powerful predictor of the usefulness of public research information to companies’ innovation strategies. Some constraints on innovation also appears to determinate what source of information is valued most. This is especially the case for regulation, both from national as from international sources. When companies are constrained in their innovation by regulation, they are more likely to turn to public research for information. The comparison of results from regulation seen as a motivation for innovation and regulation as a constraint on innovation and – especially ‐ the detailed analysis of different types of regulation shed light on the role of regulation in promoting innovation in the ‘Green economy’, casting serious doubts on the idea that a one size fits all deregulation approach could promote growth. The analysis also unveils the existence of a significant decrease in the value that companies assign to information from universities when the number of types of innovation undertaken by companies increases. A suite of competing hypothesis are proposed and discussed to explain this novel result. However, a definite conclusion on the sources of these decreasing returns to information requires the modification of some questions in the CIS questionnaire or additional data. Finally, the study unveils some potential problems with the econometric estimates used in previous models. On one hand it uncovers issues with the way the variable representing the breadth of searching pattern that companies use has been measured in previous studies and discusses the strategy to address this concern. Then, it also shows that many previous analyses have failed to take into account the potential presence of sample selection but finds results to be robust to this potential problem. More worryingly, previous analyses have failed to test the assumption of parallel lines which is made in the models which have been used. This assumption is violated in some cases and the consequences of this violation are discussed.
    JEL: Q54 H44 M13
    Date: 2011–11
  25. By: Estrada, Fernando; Diaz, Natalia
    Abstract: There is now considerable evidence on the value of using external resources to promote the development of innovative technologies. Furthermore, the ability to experience innovations in business by external links that may help to avoid risk, improve the quality of natural products, which means qualifying business activities and promote companies capable of rationalizing and projecting high yields. This paper provides an approach from the transaction cost theory of Ronald Coase, in particular, provides preconditions to estimate the specific market of biotechnology.
    Keywords: Coase theorem; Transactions costs; Biotechnology; Ronald Coase; Innovation; Fiancial Markets
    JEL: D03 B21 O13 D82 B2 D43 B41
    Date: 2012
  26. By: Carsten Burhop (Max Planck Institute for Research on Collective Goods, Bonn and University of Cologne); Thorsten Lübbers (Max Planck Institute for Research on Collective Goods, Bonn and University of Cologne)
    Abstract: We investigate a sample of 180 technology licensing contracts closed by German chemical, pharmaceutical, and electrical engineering companies between 1880 and 1913. Our empirical results suggest that strategic behaviour seems to be relevant for the design of licensing contracts, whereas inventor moral hazard and risk aversion of licensor or licensee seem to be irrelevant. Moreover, our results suggest that uncertainty regarding the profitability of licensed technology influenced the design of licensing contracts. More specifically, profit sharing agreements or producer milestones were typically included into licensing contracts.
    Keywords: Economic History, Germany, pre-1913, Licensing contracts, Technology transfer
    JEL: N83 L14 O32
    Date: 2011–07
  27. By: Frank R. Lichtenberg
    Abstract: I examine the effect of pharmaceutical innovation on the functional status of nursing home residents using cross-sectional, patient-level data from the 2004 National Nursing Home Survey. This was the first public-use survey of nursing homes that contains detailed information about medication use, and it contains better data on functional status than previous surveys. Residents using newer medications and a higher proportion of priority-review medications were more able to perform all five activities of daily living (ADLs), controlling for age, sex, race, marital status, veteran status, where the resident lived prior to admission, primary diagnosis at the time of admission, up to 16 diagnoses at the time of the interview, sources of payment, and facility fixed effects. The ability of nursing home residents to perform activities of daily living is positively related to the number of “new” (post-1990) medications they consume, but unrelated to the number of old medications they consume. If 2004 nursing home residents had used only old medications, the fraction of residents with all five ADL dependencies would have been 58%, instead of 50%. During the period 1990-2004, pharmaceutical innovation reduced the functional limitations of nursing home residents by between 1.2% and 2.1% per year.
    JEL: I12 L65 O33
    Date: 2012–01
  28. By: Wim Naudé (Maastricht School of Management, Maastricht Graduate School of Governance, University of Maastricht, and United Nations University (UNU-MERIT), Maastricht, The Netherlands, e-mail:
    Abstract: Adoption and adaptation of foreign technology is an important catch-up mechanism for developing countries and can contribute towards the achievement of the millennium development goals. Despite this until now very little foreign aid has been specifically targeting innovation in developing countries - more substantial aid has been promoting ‘private sector development’ (PSD) – or entrepreneurship – so that one can see PSD initiatives to have been the major channel through which donors have been promoting innovation in developing countries. Whether this has been an appropriate channel, with appropriate instruments, is the first of two main questions that will be addressed in this paper. The second main question is how PSD initiatives should be adapted or fine-tuned to provide greater and more effective support for appropriate innovation activities in developing countries – and by implication make foreign aid more effective. In this regard two aspects that will receive particular attention are the entrepreneurship-government relationship, and the innovation policy-stage of development dimension.
    JEL: O32 O38 F35
    Date: 2011–12
  29. By: KURATA Kenji; CHOI Youn-Hee
    Abstract: Though Japan has surpassed South Korea in terms of research and development (R&D) in the area of regenerative medicine, South Korea has been more successful at commercialization. This paper focuses on the setup and operation of actual systems that consider the promotion of regenerative medicine in Japan. Analysis of the regulatory systems in Japan and South Korea shows a clear difference between the two countries, although their systems are basically the same. There are two pathways for applying unapproved drugs in clinical research, including regenerative medicine, to human subjects in Japan, whereas there is only one pathway in South Korea, where the Korea Food and Drug Administration (KFDA) is the only authority through which approval can be obtained. Japan has an additional pathway besides approval through the Pharmaceuticals and Medical Devices Agency (PMDA), if the clinical research is conducted within the framework of the Medical Practitioners Law.
    Date: 2012–01

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