nep-ino New Economics Papers
on Innovation
Issue of 2012‒02‒01
thirteen papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. The relation between the firm’s IP strategy and occupation and qualification of the R&D labour force By Spithoven, André; Teirlinck, Peter
  2. Recent Research on the Economics of Patents By Bronwyn H. Hall; Dietmar Harhoff
  3. Intellectual property rights, innovation and technology transfer: a survey By Anja, Breitwieser; Neil, Foster
  4. Technological Innovation, Resource Allocation, and Growth By Leonid Kogan; Dimitris Papanikolaou; Amit Seru; Noah Stoffman
  5. Intellectual Property and Biodiversity: When and Where are Property Rights Important? By Mare Sarr; Tim Swanson
  6. Interactive Learning-driven Innovation in Upstream-Downstream Relations: Evidence from Mutual Exchanges of Engineers in Developing Economies By Tomohiro Machikita; Yasushi Ueki
  7. Impacts of Incoming Knowledge on Product Innovation: Technology Transfer in Auto-related Industries in Developing Economies By Tomohiro MACHIKITA; Yasushi UEKI
  8. The Inventive, the Educated, and the Creative: How Do They Affect Metropolitan Productivity? By Lobo, José; Mellander, Charlotta; Stolarick, Kevin; Strumsky, Deborah
  9. Product innovation and logistic optimization in a novel urban-type model By Stefano Colombo; Luigi Filippini
  10. Trade and Innovation: Synthesis Report By Nobuo Kiriyama
  11. Strictness of Environmental Policy and Investment in Abatement By Maria J. Gil-Molto; Bouwe Dijkstra
  12. Sectoral innovation performance in the knowledge intensive services By Gotsch, Matthias; Hipp, Christiane; Gallego, J.; Rubalcaba, L.
  13. Technical progress and product reliability under competition and monopoly By Donald A. R. George (University of Edinburgh)

  1. By: Spithoven, André (Vrije Universiteit Brussel, Belgium); Teirlinck, Peter (Hogeschool-Universiteit Brussel (HUB), Belgium)
    Abstract: The past decades have witnessed a large growth in patenting and out-licensing rendering the IP strategy an important element for innovation management. The paper looks at the relation between the formal qualification and occupation of R&D personnel and the IP strategy by focussing on the probability of firms? to register patents and to out-license technology in order to generate revenue. Based on the occupational and educational characteristics of R&D personnel it is shown that patent registration and income generating from licensing imply a different set of skills from the R&D labour force. Looking at the occupation of the R&D staff, patenting can be related to the presence of R&D managers & researchers and also to R&D support staff; whereas out-licensing is linked to the R&D support staff solely. Second, regarding the level of education, the act of registering patents and generating revenue from them depends on R&D staff having a doctoral degree.
    Keywords: Intellectual property; R&D personnel; Education; Occupation; Firm-level
    Date: 2011–11
  2. By: Bronwyn H. Hall; Dietmar Harhoff
    Abstract: Recent research on the economics of patents is surveyed. The topics covered include theoretical and empirical evidence on patents as an incentive for innovation, the effectiveness of patents for invention disclosure, patent valuation, and what we know about the design of patent systems. We also look at what is known about some current policy areas, including software and business method patents, university patenting, and the growth in patent litigation.
    JEL: K11 L20 O34
    Date: 2012–01
  3. By: Anja, Breitwieser; Neil, Foster
    Abstract: Following the conclusion of the TRIPS Agreement, much has been written on the potential costs and benefits of stronger Intellectual Property Rights (IPRs) protection in terms of its impact on innovation and technology transfer, as well as economic growth and welfare. This paper documents the development of IPR regimes within countries and internationally, before surveying the theoretical and empirical literature linking the protection of IPRs to economic growth, innovation and technology diffusion.
    Keywords: Intellectual Property Rights; Innovation; Economic Growth; Technology Diffusion
    JEL: F13 O34 F53 O31
    Date: 2012–01–20
  4. By: Leonid Kogan; Dimitris Papanikolaou; Amit Seru; Noah Stoffman
    Abstract: We explore the role of technological innovation as a source of economic growth by constructing direct measures of innovation at the firm level. We combine patent data for US firms from 1926 to 2010 with the stock market response to news about patents to assess the economic importance of each innovation. Our innovation measure predicts productivity and output at the firm, industry and aggregate level. Furthermore, capital and labor flow away from non-innovating firms towards innovating firms within an industry. There exists a similar, though weaker, pattern across industries. Cross-industry differences in technological innovation are strongly related to subsequent differences in industry output growth.
    JEL: E32 G14 O3 O4
    Date: 2012–01
  5. By: Mare Sarr (School of Economics, University of Cape Town); Tim Swanson (Department of Economics, Graduate Institute of International and Development Studies)
    Abstract: An important issue in the life sciences industries concerns the nature of the incentive mechanism that should govern the production of innovation within this R&D sector. We look at the specific problem of coordinating the supply of inputs across very different agents - North and South - that must each supply inputs in order to generate innovations from the industry. The current arrangement in this industry provides for a single property right at “end of the pipeline”, i.e. where marketing of the innovation occurs. This property rights scenario raises two problems, one of efficiency and one of equity. The key question asked here pertains to the number and placement of property rights that should be instituted to address this property rights failure. Should one establish new property rights in traditional knowledge alone; property rights in genetic information alone; or in both? We demonstrate that in a world in which traditional knowledge and genetic information are complements in the production of R&D, a resolution of the property rights failure in genetic information also may resolve the allocation failure in traditional knowledge even in the absence of a distinct property right. The reason is that traditional knowledge of the nature of private information is comparable to a trade secret. Traditional knowledge holders may use this informational advantage to improve their benefit by capturing some informational rent. A new property right is important to enable bargaining and coordination to occur across the industry, but a single property right is probably sufficient to enable coordination between the two agents.
    Keywords: Biodiversity Prospecting, Traditional Knowledge, Genetic Resources, Intellectual Property Rights, Sequential R&D
    JEL: Q56 O34 L24
    Date: 2011–11
  6. By: Tomohiro Machikita (Tomohiro Machikita Institute of Developing Economies, Inter-disciplinary Studies Center, Japan); Yasushi Ueki (Yasushi Ueki Institute of Developing Economies, Bangkok Research Center, Thailand)
    Abstract: This paper presents a simple model of the innovations that result from face-to-face communication and mutual learning in upstream-downstream relations. To examine the framework, we empirically investigate the impact of mutual knowledge exchanges on product and process innovation using a survey of manufacturing firms in Indonesia, the Philippines, Thailand and Vietnam. Evidence from interconnected firms in developing economies suggests that firms with mutual exchanges between engineers and customers achieved product innovations with new technologies and new markets. However, this is not true for simple improvement of products or process innovation. Mutual exchanges with engineers can be expected to play an important role in the case of costly innovation and in situations unknown situation to the firms.
    Date: 2011–12–01
  7. By: Tomohiro MACHIKITA (Tomohiro MACHIKITA Institute of Developing Economies, Inter-disciplinary Studies Center, Japan); Yasushi UEKI (Yasushi UEKI Institute of Developing Economies, Bangkok Research Center, Thailand)
    Abstract: This paper studies two questions on the role of networked sources of knowledge influential to product innovation. First: What is the extent of technology transferred through vertical linkages and public-private alliances, including university-industry linkages, in the phase of product improvement and development? Second: What types of knowledge are transferred from external technology sources? In a sample of ASEAN firms’ self-reported partner data restricted to automotive related industries, we found that direct linkages with MNC customers in foreign countries resulted in a lower propensity of product innovation. Indeed, incoming knowledge from MNC customers relating to the management of quality of existing products especially explained the lower propensity of product innovation. We also found that production linkages with MNC suppliers in foreign countries resulted in a higher propensity of product innovation. Incoming knowledge from MNC suppliers about quality controls explained a lower propensity of product innovation. These findings empirically indicate that networked sources of knowledge have a significant influence trade-off between maintaining existing operations and developing new products. The impacts of public-private alliances on innovation are sizable compared with the impacts of vertical linkages. Public-private alliances and vertical linkages offer knowledge with different effects on product innovation.
    Date: 2011–11–01
  8. By: Lobo, José (Arizona State University); Mellander, Charlotta (Jönköping International Business School); Stolarick, Kevin (University of Toronto); Strumsky, Deborah (University of North Carolina-Charlotte)
    Abstract: A longstanding research tradition assumes that endogenous technological development increases regional productivity. It has been assumed that measures of regional patenting activity or human capital are an adequate way to capture the endogenous creation of new ideas that result in productivity improvements. This process has been conceived as occurring in two stages. First, an invention or innovation is generated, and then it is developed and commercialized to create benefits for the individual or firm owning the idea. Typically these steps are combined into a single model of the “invention in/productivity out” variety. Using data on Gross Metropolitan Product per worker and on inventors, educational attainment, and creative workers (together with other important socio-economic controls), we unpack the model back to the two-step process and use a SEM modeling framework to investigate the relationships among inventive activity and potential inventors, regional technology levels, and regional productivity outcomes. Our results show almost no significant direct relationship between invention and productivity, except through technology. Clearly, the simplification of the “invention in/productivity out” model does not hold, which supports other work that questions the use of patents and patenting related measures as meaningful innovation inputs to processes that generate regional productivity and productivity gains. We also find that the most effective measure of regional inventive capacity, in terms of its effect on technology, productivity, and productivity growth is the share of the workforce engaged in creative activities.
    Keywords: Innovation; Productivity; Regional Technology; Patents; Human Capital; Creative Class
    JEL: C31 O10 O31 O47 R11 Z10
    Date: 2012–01–20
  9. By: Stefano Colombo (DISCE, Università Cattolica); Luigi Filippini (DISCE, Università Cattolica)
    Abstract: We consider the strategic choice between product innovation and logistic optimization in a novel urban framework where consumers are distributed across the city and have different incomes depending on their location in the town. Depending on the relative efficiency of the product innovation process and the logistic innovation process as well as on the degree of spatial symmetry between the firms, both symmetric and asymmetric business strategy equilibria may arise, as well as both unique and multiple business strategy equilibria.
    Keywords: Product innovation; logistic optimization; linear town
    JEL: L13 R12 R41
    Date: 2012–01
  10. By: Nobuo Kiriyama
    Abstract: Innovation is critical to creating new sources of growth. Trade is one of the framework conditions that can strengthen innovation in the business sector, as set out in the OECD Innovation Strategy in 2010. This paper broadly sets out three channels through which trade affects innovation. First, imports and foreign direct investment (FDI) as well as trade in technology serve as channels of technology diffusion. Second, imports, FDI and technology licensing contribute to intensifying competition, which can affect incentives for innovation. Third, exports can affect innovation as it serves as a learning opportunity and gives incentives for innovative activities...
    Keywords: multilateral trade negotiations, NAMA notifications, World Trade Organisation, trade and innovation, international technology diffusion, competition and innovation, exports and innovation
    JEL: F13 F23 L60 O24
    Date: 2012–01–20
  11. By: Maria J. Gil-Molto; Bouwe Dijkstra
    Abstract: In this paper we model an oligopoly where .rms invest in abatement technologies and emissions are taxed by the government. We show that a stricter environmental policy does not necessarily lead to an increase in .rms.R&D investment into cleaner production methods. In fact, the emission-to-output ratio may be a U-shaped function of the environmental damage parameter. This result holds both when the government can commit and in the social optimum. When the government cannot commit, this relationship is ambiguous except in markets with few .rms. Our results further suggest that if the emission-to-output ratio is decreasing throughout, output is a U-shaped function of the environmental damage.
    Keywords: Environmental innovation; environmental taxation; commitment; oligopoly
    JEL: L12 Q55 Q58
    Date: 2011–07
  12. By: Gotsch, Matthias; Hipp, Christiane; Gallego, J.; Rubalcaba, L.
    Abstract: --
    Date: 2011
  13. By: Donald A. R. George (University of Edinburgh)
    Abstract: Technical progress lowers costs and prices but appears to have an ambiguous effect on product reliabilty. This paper presents a simple model which explains this observation.
    Date: 2011–12–09

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