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on Innovation |
| By: | LE BAS Christian; MOTHE Caroline; NGUYEN Thi Thuc Uyen |
| Abstract: | In this paper, we will review the literature on technological innovation persistence and provide a general theoretical framework to analyze the main determinants of this innovative behavior. Moreover, no previous empirical study has taken into account organizational innovation practices as possible determinants of innovation persistence. We will therefore include them, as previous studies have shown the interaction effects between the two types of innovation, and produce empirical results on technical innovation persistence. A multinomial probit model was used to estimate the likelihood of belonging to each of the three longitudinal innovation profiles. Results confirm the differentiated impact of determinants on process and technological innovation persistence, and the effect of R&D intensity, R&D cooperation and competition intensity. As hypothesized, we also found that organizational innovation is a determinant factor for innovation persistence and, more generally speaking, for technological innovation, in particular organizational practices such as knowledge management and external partnerships. |
| Keywords: | Persistence; Innovation; Technological innovation; Organizational innovation; R&D |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2011-54&r=ino |
| By: | Slivko, Olga; Theilen, Bernd |
| Abstract: | This article provides a theoretical and empirical analysis of a firm's optimal R&D strategy choice. In this paper a firm's R&D strategy is assumed to be endogenous and allowed to depend on both internal firms. characteristics and external factors. Firms choose between two strategies, either they engage in R&D or abstain from own R&D and imitate the outcomes of innovators. In the theoretical model this yields three types of equilibria in which either all firms innovate, some firms innovate and others imitate, or no firm innovates. Firms'equilibrium strategies crucially depend on external factors. We find that the efficiency of intellectual property rights protection positively affects firms'incentives to engage in R&D, while competitive pressure has a negative effect. In addition, smaller firms are found to be more likely to become imitators when the product is homogeneous and the level of spillovers is high. These results are supported by empirical evidence for German .rms from manufacturing and services sectors. Regarding social welfare our results indicate that strengthening intellectual property protection can have an ambiguous effect. In markets characterized by a high rate of innovation a reduction of intellectual property rights protection can discourage innovative performance substantially. However, a reduction of patent protection can also increase social welfare because it may induce imitation. This indicates that policy issues such as the optimal length and breadth of patent protection cannot be resolved without taking into account specific market and firm characteristics. Journal of Economic Literature Classification Numbers: C35, D43, L13, L22, O31. Keywords: Innovation; imitation; spillovers; product differentiation; market competition; intellectual property rights protection. |
| Keywords: | Empreses -- Innovacions tecnològiques, Diferenciació de productes, Propietat intel·lectual, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses, |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/179618&r=ino |
| By: | Burak Dindaroglu (Department of Economics, Izmir University of Economics) |
| Abstract: | Using firm level panel data from the U.S., I explore the relationship between firm size and R&D productivity for two important and R&D-intensive industries: Semiconductors and Pharmaceuticals. I employ two measures of a firm's R&D performance: the number of citations received per patented innovation, and the number of citations received per dollar of R&D expenditures. The former is a measure of the average quality of a firm's patents, and the latter is a measure of total R&D output obtained per dollar of investments. I find that the average quality of patents (citations received per patent) falls with firm size in Pharmaceuticals, but there is no relationship between patent quality and firm size in Semiconductors. Citations received per R&D dollar decrease with size in both industries, which is due to the well-documented negative relationship between patents per R&D and firm size. |
| Keywords: | R&D Productivity, Firm size, Patents, Citations, Semiconductors, Pharmaceuticals, Panel data |
| JEL: | L1 L2 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:izm:wpaper:1101&r=ino |
| By: | Alvaro Escribano; Szabolcs Blazsek |
| Abstract: | This paper studies the dynamic interactions and the spillovers that exist among patent application intensity, secret innovation intensity and stock returns of a well-defined technological cluster of firms. We study the differential behavior when there is an Innovation Leader (IL) and the rest of the firms are Innovation Followers (IFs). The leader and the followers of the technological cluster are defined according to their patent innovation activity (stock of knowledge). We use data on stock returns and patent applications of a panel of technologically related firms of the United States (US) economy over the period 1979 to 2000. Most firms of the technological cluster are from the pharmaceutical-products industry. Interaction effects and spillovers are quantified by applying several Panel Vector Autoregressive (PVAR) market value models. Impulse Response Functions (IRFs) and dynamic interaction multipliers of the PVAR models are estimated. Secret patent innovations are estimated by using a recent Poisson-type patent count data model, which includes a set of dynamic latent variables. We show that firms’ stock returns, observable patent intensities and secret patent intensities have significant dynamic interaction effects for technologically related firms. The predictive absorptive capacity of the IL is the highest and this type of absorptive capacity is positively correlated with good firm performance measures. The innovation spillover effects that exist among firms, due to the imperfect appropriability of the returns of the investment in R&D, are specially important for secret innovations and less relevant for observed innovations. The flow of spillovers between followers and the leader is not symmetric being higher from the IL to the IFs. |
| Keywords: | Patent count data model, Stock market value, Secret innovations, Absorptive capacity, Technological proximity, Panel Vector Autoregression (PVAR), Impulse Response Function (IRF), Efficient Importance Sampling (EIS) |
| JEL: | C15 C31 C32 C33 C41 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:we1202&r=ino |
| By: | Daria Ciriaci (JRC-IPTS) |
| Abstract: | The objective of this study is to provide an analysis of the importance of design – defined as the procedures, choice of elements and technical preparation to implement a new product – and R&D investments as drivers of European firms’ innovation performance. In doing so, it partly compensates for the lack of empirical evidence in the literature by using non-anonymised data from the third wave of the European CIS, and estimating a system of simultaneous equations to tackle the endogeneity inherent in these investment choices and the externalities associated with them. The choice to use this time period rather than more recent is data-driven as this wave contains better information on design expenditures. Unlike the majority of CIS-based studies, the main variables of interest are continuous ones. In addition, although pure aesthetic changes are not included in the CIS definition of innovative design expenditures, the impact of this important dimension of product innovativeness is properly accounted for. The robustness of results confirms the crucial role of design investment for innovation success in 23 European countries for both the manufacturing and service sectors and its role as a complement to technological R&D and as a driver for user-centred incremental (new-to-the-firm) and radical (new-to-the-market) innovations. In particular it found an increase of 1% expenditure increases innovation sales by between 0.34% and 0.49%, while the same increase in R&D investment increases innovation sales by between 0.64% and 0.86%. Interestingly, while investing in design shows no statistically different innovation output returns for small, medium-sized and large enterprises, this is not the case for R&D expenditures. The policy conclusions are clear: design is a less costly alternative to R&D for many SMEs and a policy of supporting design should be considered, as this might be a more cost-efficient support strategy. |
| Keywords: | Intangibles, design, R&D investment, CIS, CDM model |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201108&r=ino |
| By: | Gombau, Verònica; Segarra Blasco, Agustí |
| Abstract: | This paper analyses whether a firm’s absorptive capacity and its distance from the technological frontier affect the choice between innovation and imitation in innovative Spanish firms. From an extensive survey of 5,575 firms during the 2004-2009 period, we found two significant results. With regard to the role of absorptive capacity, the empirical evidence shows that when innovative firms have difficulties in accessing external information and hire skilled workers, their innovative capacity is reduced. Meanwhile, with regard to distance from the technological frontier, the firms that reduce this gap manage to increase their innovative capacity at the expense of imitation. To summarise, when we studied firms’ absorptive capacity and their relative position to the technological frontier in tandem, we found that the two factors directly affected firms' ability to innovate or imitate. Key words: R&D sources, innovation and imitation strategies, absorptive capacity, technological frontier, ordered probit. |
| Keywords: | Empreses -- Innovacions tecnològiques -- Espanya, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/179666&r=ino |
| By: | Segarra Blasco, Agustí; Teruel Carrizosa, Mercedes |
| Abstract: | This paper analyzes the effect of firms’ innovation activities on their growth performance. In particular, we observe how important innovation is for high-growth firms (HGFs) for an extensive sample of Spanish manufacturing and services firms. The panel data used comprises diverse waves of Spanish CIS over the the period 2004-2008. First, a probit analysis determines whether innovation affects the probability of being a high-growth firm. And second, a quantile regression technique is applied to explore the determinants and characteristics of specific groups of firms (manufacturing versus service firms and high-tech versus low-tech firms). It is revealed that R&D plays a significant role in the probability of becoming a HGF. Investment in internal and external R&D per employee has a positive impact on firm growth (although internal R&D presents a significant impact in the last quantiles, external R&D is significant up to the median). Furthermore, we show evidence that there is a positive impact of employment (sales) growth on the sales (employment) growth. Keywords: high-growth firms, firm growth, innovation activity JEL Classifications: L11, L25, O30 |
| Keywords: | Empreses -- Innovacions tecnològiques -- Espanya, Empreses -- Creixement, 33 - Economia, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/179669&r=ino |
| By: | Umberto Garfagnini; Bruno Strulovici |
| Abstract: | We study social learning and innovation in an overlapping generations model, emphasizing the trade-off between marginal innovation (combining existing technologies) and radical innovation (breaking new ground). We characterize both short-term and long-term dynamics of innovation, and the intergenerational accumulation of knowledge. Innovation cycles emerge endogenously, but the number of cycles is finite almost surely, and radical innovation terminates infinite time. We identify a negative relationship between past successes and the magnitude of radical innovation, combining insights from the multi-armed bandit literature with a spatial representation of innovation. Past successes reduce the incremental value of experimentation, and result in less ambitious innovation. In our framework, patents promote radical innovation through two channels: by increasing the expected benefit of radical innovation and by increasing the cost of marginal innovation. Our analysis suggests that sustaining radical innovation in the long-run requires external intervention. |
| Date: | 2012–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:nwu:cmsems:1546&r=ino |
| By: | Mitchell, Matthew; Zhang, Yuzhe |
| Abstract: | We study how best to reward innovators whose work builds on earlier innovations. Incentives to innovate are obtained by offering innovators the opportunity to profit from their innovations. Since innovations compete, awarding rights to one innovator reduces the value of the rights to prior innovators. We show that the optimal allocation involves shared rights, where more than one innovator is promised a share of profits from a given innovation. We interpret such allocations in three ways: as patents that infringe on prior art, as licensing through an optimally designed ever-growing patent pool, and as randomization through litigation. We contrast the rate of technological progress under the optimal allocation with the outcome if sharing is prohibitively costly, and therefore must be avoided. Avoiding sharing initially slows progress, and leads to a more variable rate of technological progress. |
| Keywords: | Cumulative Innovation; Patent; Licensing; Patent Pool; Litigation |
| JEL: | O34 D82 O31 D43 L53 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36537&r=ino |
| By: | Francesco Nicolli; Francesco Vona; Lionel Nesta |
| Abstract: | This paper carries out a comprehensive analysis of renewable energy innovations considering four mechanisms suggested by innovation models: 1. policy-inducement; 2. market structure; 3. demand and social cohesion- mainly proxied by income inequality; 4. characteristics of country knowledge base. For OECD countries and years 1970-2005, we build a unique dataset containing time-varying information on quality-adjusted patent production in renewable energy, the latter being a function of environmental policies, green R&D, entry barriers, knowledge stock, knowledge diversity and income inequality. We develop count data models using the Generalized Method of Moments (GMM) to account for endogeneity of policy support. Our synthetic policy index positively affects innovations especially in countries with deregulated energy markets and low entry barriers. The effect of entry barriers and inequality is negative and of similar magnitude as that of policy. Product market liberalization positively affects green patent generation, especially so when ambitious policies are adopted, when the initial level of public R&D expenditures and when the initial share of distributed energy generation is high. Our results are robust to alternative specifications, to the inclusion of technology-specific effects and to the use of quality-adjusted patents as dependent variables. In the latter case, the estimated effect of lowering entry barriers and of knowledge diversity almost double on citation count relatively to patent count. |
| Keywords: | renewable energy technology; patent; environmental policies; product market regulation; inequality |
| JEL: | Q55 Q58 Q42 Q48 O34 |
| Date: | 2012–02–12 |
| URL: | http://d.repec.org/n?u=RePEc:udf:wpaper:201204&r=ino |
| By: | Francesco Vona (Observatoire Français des Conjonctures Économiques); Francesco Nicolli (University of Ferrara); Lionel Nesta (Observatoire Français des Conjonctures Économiques) |
| Abstract: | This paper carries out a comprehensive analysis of renewable energy innovations considering four mechanisms suggested by innovation models: 1. policy-inducement; 2. market structure; 3. demand and social cohesion- mainly proxied by income inequality; 4. characteristics of country knowledge base. For OECD countries and years 1970-2005, we build a unique dataset containing time-varying information on quality-adjusted patent production in renewable energy, the latter being a function of environmental policies, green R&D, entry barriers, knowledge stock, knowledge diversity and income inequality. We develop count data models using the Generalized Method of Moments (GMM) to account for endogeneity of policy support. Our synthetic policy index positively affects innovations especially in countries with deregulated energy markets and low entry barriers. The effect of entry barriers and inequality is negative and of similar magnitude as that of policy. Product market liberalization positively affects green patent generation, especially so when ambitious policies are adopted, when the initial level of public R&D expenditures and when the initial share of distributed energy generation is high. Our results are robust to alternative specifications, to the inclusion of technology-specific effects and to the use of quality-adjusted patents as dependent variables. In the latter case, the estimated effect of lowering entry barriers and of knowledge diversity almost double on citation count relatively to patent count. |
| Keywords: | renewable energy technology, patent, environmental policies, product market regulation, inequality |
| JEL: | Q55 Q58 Q42 Q48 O34 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1205&r=ino |
| By: | Gombau, Verònica; Segarra Blasco, Agustí |
| Abstract: | This paper explores how absorptive capacity affects the innovative performance and productivity dynamics of Spanish firms. A firm’s efficiency levels are measured using two variables: the labour productivity and the Total Factor Productivity (TFP). The theoretical framework is based on the seminal contributions of Cohen and Levinthal (1989, 1990) regarding absorptive capacity; and the applied framework is based on the four-stage structural model proposed by Crépon, Duguet and Mairesse (1998) for setting the determinants of R&D, the effects of R&D activities on innovation outputs, and the impacts of innovation on firm productivity. The present study uses a twostage structural model. In the first stage, a probit estimation is used to investigate how the sources of R&D, the absorptive capacity and a vector of the firm’s individual features influence the firm’s likelihood of developing innovations in products or processes. In the second phase, a quantile regression is used to analyze the effect of R&D sources, absorptive capacity and firm characteristics on productivity. This method shows the elasticity of each exogenous variable on productivity according to the firms’ levels of efficiency, and thus allows us to distinguish between firms that are close to the technological frontier and those that are further away from it. We used extensive firm-level panel data from 5,575 firms for the 2004-2009 period. The results show that the internal absorptive capacity has a strong impact on the productivity of firms, whereas the role of external absorptive capacity differs according to nature of the each industry and according the distance of firms from the technological frontier. Key words: R&D sources, innovation strategies, absorptive capacity, technological distance, quantile regression. |
| Keywords: | Empreses -- Innovacions tecnològiques, Productivitat industrial, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/179622&r=ino |
| By: | Segarra Blasco, Agustí |
| Abstract: | This paper explores the factors that determine firm’s R&D cooperation with different partners, paying special attention on the role of tertiary education (degree and PhDs level) in facilitating the connection between the firms and the to scientific bodies (technology centres, public research centres and universities). Here, we attempt to answer two questions. First, are innovative firms that carry out internal and external R&D activities more likely to cooperate on R&D projects with other partners? Second, do Spanish innovative firms with a high participation of researchers with degrees or PhDs tend to cooperate more with scientific partners? To answer both questions we apply a three-dimensional approach on a firm level Panel Data with a sample of 4.998 manufacturing and services Spanish firms. First, we run a complementary test between external R&D acquisition and skilled research workers and find that firms which carry out external R&D activities obtain a greater return on R&D cooperation when they have skilled workers in R&D, especially in high-tech manufactures and KIS services. Second, we carry out a 2-step tobit model to estimate, in the first stage, the determinants that explain whether Spanish innovative firms cooperate or not; and in the second stage the factors that affect the choice of partners. And third, we apply an ordered probit model to test the marginal effects of explanatory variables on the different partners. Here we contrast some of the most interesting empirical hypotheses of previous studies, and which emphasize the role of employees with degrees and PhDs in facilitating cooperative R&D between firms and scientific partners. JEL classification: O31, O33, O38. Key words: Determinants R&D cooperation, industry-university flows, PhD research workers. |
| Keywords: | Empreses -- Innovacions tecnològiques, Col·laboracio empresa-universitat, 378 - Ensenyament superior. Universitats, 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/179621&r=ino |
| By: | Navas, Antonio (Departamento de Fundamentos del Análisis Económico, Universidad de Alicante.) |
| Abstract: | Innovation, mark-ups and the degree of trade openness vary substantially across sectors. This paper builds a multi-sector endogenous growth model to study the influence that asymmetric trade liberalization and sectorial differences in the degree of product market competition has on the effect of trade openness on R&D investments at a firm level. I find that differences in the degree of competition generate large differences on firm innovative response to trade liberalization. A movement from autarky to free trade promotes innovation and productivity growth in those sectors which are initially less competitive. However, when the initial tariff level is common across sectors, a homogeneous tariff reduction promotes innovation in those sectors which are initially more competitive. The paper suggests that trade liberalization could be a source of industry productivity divergence: firms that are located in industries with greater exposure to foreign trade, invest a greater amount in R&D contributing to industry productivity growth. Finally the paper finds that these asymmetries generate important reallocative effects that contribute to enlarge these differences. |
| Keywords: | Sectorial productivity; international trade; innovation. |
| JEL: | F12 O43 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpaper:201205&r=ino |
| By: | Maria Manuel Serrano (University of Évora, Department of Sociology and SOCIUS – ISEG/UTL); Paulo Neto (University of Évora, Department of Economics and CEFAGE-UE) |
| Abstract: | Today, innovation is present in the discourse of politicians and business leaders. They see innovation as a positive value and as a solution to solve social problems and company’s competitiveness, so organizations are encouraged to adopt innovative practices through incentives and innovation policies. Several economic and sociological studies have shown that Portuguese companies adopt more easily technological innovations (with short-term effects) then organizational and social innovations. In this sense, we will consider innovation public policies effects at Portuguese companies and how they take available opportunities for innovation. The aim is to know if the concept of innovation spread by these policies is multidimensional (eg social, economic and technological) or restricted. We propose to study the factors (internal and external) that affect innovation processes in enterprises through case studies methodology. This research strategy will show us the processes of innovation from within the organizations and analyze the socio-economic context in which organizations operate through a new methodological approach for evaluation. |
| Keywords: | Innovation, Innovation Systems, Public Policies, Enterprises, Territory. |
| JEL: | J58 O31 O38 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2011_17&r=ino |
| By: | Ghafele, Roya; Gibert, Benjamin |
| Abstract: | The intellectual property (IP) system plays an important role in the development and diffusion of technologies by determining the institutional context in which transactions occur. This article reviews the recent EPO report ‘Patents and Clean Energy Technologies: Bridging the Gap between Evidence and Policy’ and offers further insights into the interplay between patents, innovation in climate change mitigating technologies and access to technology. Empirical evidence and analysis of patent trends forms the basis for understanding the spectrum of policy choices available to combat climate change. In an effort to bridge the gap between policy and evidence, the EPO report provides ample statistical analysis of existing patenting trends, fleshes out the current patent landscape and assesses licensing trends in emerging technologies relating to climate change. This review evaluates these statistical insights and discusses the implications for both the developed and developing world. It aims to deepen understanding of how intellectual property influences the development of markets for green technologies. |
| Keywords: | Climate Change Mitigating Technologies; Patent Statistics; European Patent Office; Technology Transfer |
| JEL: | O30 O34 L41 |
| Date: | 2011–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36217&r=ino |
| By: | Tiwari, Rajnish; Herstatt, Cornelius |
| Abstract: | Securing access to lead markets is generally regarded as a key driver for the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. Such markets, therefore, offer a good chance of uncertainty reduction for in the innovation process of firms. Lead markets are generally defined in terms of product segments within national boundaries and are thought to exist in economies with high per capita income, highly sophisticated markets and high international visibility. We argue that there is increasing evidence of lead market tendencies in certain emerging economies, e.g. India. Both domestic and foreign-owned firms there, in recent years, have produced several internationally acclaimed frugal innovations such as the Tata Nano or GE's handheld ECG machine Mac400. Using several examples we demonstrate that India seems to have emerged as a global hub for low-cost, frugal innovations. In this paper, we seek to crystallize the role of lead markets in globalization of R&D and identify the need for an update/extension to better reflect the changed ground realities. On the basis of emerging evidence we propose that sustained economic growth, voluminous markets, strong domestic technological capabilities, presence of foreign-owned R&D, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid worldwide. -- |
| Keywords: | globalization of innovation,lead markets,internationalization of R&D,frugal innovations,bottom of the pyramid |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:61&r=ino |
| By: | Schiederig, Tim; Tietze, Frank; Herstatt, Cornelius |
| Abstract: | The importance of green innovation management is growing in practice and academia likewise. To our knowledge, a recent and comprehensive literature review is lacking. In this paper we contribute to a clarification of the concept green innovation and provide an overview of the existing body of literature in the field of green innovations identifying the most active scholars, institutions and relevant publications. We find that the three different notions of green, eco/ecological and environmental innovation are used largely synonymously while the notion of sustainable innovation broadens the concept and includes a social dimension. We find further that the most active scholars are situated in Europe (i.e. Netherlands, Italy and Germany) and identified three innovation management journals leading the field. -- |
| Keywords: | Innovation management,green innovations,eco innovations,environmental innovations,sustainable innovations,literature review |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:63&r=ino |
| By: | David Popp; Nidhi Santen; Karen Fisher-Vanden; Mort Webster |
| Abstract: | R&D is an uncertain activity with highly skewed outcomes. Nonetheless, most recent empirical studies and modeling estimates of the potential of technological change focus on the average returns to research and development (R&D) for a composite technology and contain little or no information about the distribution of returns to R&D—which could be important for capturing the range of costs associated with climate change mitigation policies—by individual technologies. Through an empirical study of patent citation data, this paper adds to the literature on returns to energy R&D by focusing on the behavior of the most successful innovations for six energy technologies, allowing us to determine whether uncertainty or differences in technologies matter most for success. We highlight two key results. First, we compare the results from an aggregate analysis of six energy technologies to technology-by-technology results. Our results show that existing work that assumes diminishing returns but assumes one generic technology is too simplistic and misses important differences between more successful and less successful technologies. Second, we use quantile regression techniques to learn more about patents that have a high positive error term in our regressions – that is, patents that receive many more citations than predicted based on observable characteristics. We find that differences across technologies, rather than differences across quantiles within technologies, are more important. The value of successful technologies persists longer than those of less successful technologies, providing evidence that success is the culmination of several advances building upon one another, rather than resulting from one single breakthrough. Diminishing returns to research efforts appear most problematic during rapid increases of research investment, such as experienced by solar energy in the 1970s. |
| JEL: | O31 Q4 Q42 Q54 Q55 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17792&r=ino |
| By: | Luisa Carvalho (ESCE/Polytechnic Institute of Setúbal and CEFAGE-UE) |
| Abstract: | The objectives of this paper are twofold – first we discuss innovation in the service sector, especially in tourism. Secondly, we apply the diagnostic test of the integrated model of innovation (Sarkar 2005, 2007) to present the results of an empirical study applied to tourism in a small open economy. The study applies multivariate analysis using a data set consisting of survey responses from 158 Portuguese firms. The study uses an archetype and the market outcome resulting from the innovation strategies pursued to compare similarities and differences according to the geographical localizations of the firms in order to identify innovative patterns in tourism firms. The study identifies the linkage between service, market structures and innovation strategies considering geographical agglomeration of firms in a small economy. The identification of different innovation trajectories and positions in the model could justify different public politics to incentivise and promote innovation in tourism firms. |
| Keywords: | Market structures; Strategy; Innovation. |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2011_27&r=ino |
| By: | Tiwari, Rajnish; Herstatt, Cornelius |
| Abstract: | Access to lead markets is generally regarded as an important driver of the increasing globalization of innovation since these are considered to be early indicators for emerging customer needs. They are traditionally thought to exist in economies with high per capita income, sophisticated markets and high international visibility. We, however, propose that there is an increasing evidence of lead market tendencies in some emerging economies, e.g. India. We undertake a literature review to crystallize the need for an update/extension of the existing model to better reflect the changed ground realities and propose that factors such as voluminous markets, strong technological capabilities, and favorable government policies may be able to offset some of the disadvantages rooted in traditional deficiencies of developing economies. Engaging a developing country lead market may be useful for firms in securing better access to markets at the bottom of the economic pyramid, worldwide. -- |
| Keywords: | Lead Markets,India,Globalization of Innovation,Internationalization of R&D,Frugal Innovations |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:64&r=ino |
| By: | Ajay K. Agrawal; Iain M. Cockburn; Alberto Galasso; Alexander Oettl |
| Abstract: | Large labs may spawn spin-outs caused by innovations deemed unrelated to the firm's overall business. Small labs generate demand for specialized services that lower entry costs for others. We develop a theoretical framework to study the interplay of these two localized externalities and their impact on regional innovation. We examine MSA-level patent data during the period 1975-2000 and find that innovation output is higher where large and small labs coexist. The finding is robust to across-region as well as within-region analysis, IV analysis, and the effect is stronger in certain subsamples consistent with our explanation but not the plausible alternatives. |
| JEL: | O31 R11 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17793&r=ino |
| By: | Riccardo Crescenzi (London School of Economics); Andrés Rodríguez-Pose (IMDEA Social Sciences) |
| Abstract: | This paper discusses recent developments in the literature on local and regional innovative performance in order to show how an 'integrated' conceptual framework based on the cross-fertilisation of different theories can serve as a foundation for the comparative analysis of territorial innovation dynamics in both developed and developing countries. The paper outlines a conceptual framework to explain the differences between innovation systems and their geography by drawing on elements of endogenous growth, new economic geography and regional innovation systems. This framework forms the basis of the subsequent analysis of the differences in innovative capacity between the European Union, the Unites States – as the leader system to be challenged – and China and India as emerging competitors for international technological leadership. The systematic analysis of a large body of empirical literature shows important differences between the spatial patterning of 'emerging' (China and India) and 'mature' (EU and US) innovation systems. |
| Keywords: | innovation systems; geography; endogenous growth; new economic geography; Europe; United States; China; India |
| Date: | 2012–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:imd:wpaper:wp2012-02&r=ino |
| By: | Gallini, Nancy |
| Abstract: | The paper examines technology agreements and the standards process from which they emerge when members supply inputs to the alliance while simultaneously competing with it. Under this overlapping ownership structure, pool members are horizontally related. I show that strategic complementarity between the downstream products owned by a member and those arising from the collaboration is sufficient for a pool to be pro-competitive. Although patent pools are more efficient than uncoordinated pricing, consumers are better off if an outside firm rather than a pool member owns the non-pool competing product. Antitrust rules facilitating efficient IP agreements under overlapping ownership and their implications for the direction of technological change are derived. |
| Keywords: | Patent Pools, Intellectual Property, Antitrust Policy |
| Date: | 2012–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:bricol:nancy_gallini-2012-5&r=ino |
| By: | Anne-Laure Le Nadant, University of Caen Basse-Normandie, CREM-CNRS, UMR 6211; Frédéric Perdreau, University of St-Etienne, COACTIS, EA 4161 |
| Abstract: | Agency theory has historically presented buyouts as a superior governance framework that generates economic efficiencies in the short term but these transactions might have a negative impact on long-term growth and innovation. In this study, we use a strategic entrepreneurship perspective to argue that private equity firm's extensive network and relationships, and expertise and competencies help managers to innovate. Using a propensity score methodology, we provide an empirical analysis of the innovative efforts of a sample of 89 French manufacturing firms that underwent a buyout between 2001 and 2005. The matching estimates (average treatment on the treated, ATT) of the effect of LBOs on firm level of innovation expenditures in 2006 show no significant differences between LBO targets and comparable companies that did not go through an LBO. In contrast, we find significant effects of LBOs on both service innovation and marketing innovations in design and packaging and product promotion. Results suggest that private equity firms provide marketing capabilities or encourage managers of LBO targets to build new innovation strategies. |
| Keywords: | Buyouts, Innovation, Private Equity Firms, Strategic Entrepreneurship |
| JEL: | G24 G34 O30 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201209&r=ino |
| By: | Peukert, Christian |
| Abstract: | Flexibility in response to competitive pressure from globalized markets and increasingly individualized customer desires has become vital for firms. A common strategy to address this challenge is to employ a dynamic concept of organization and reach beyond the boundaries of the firm. Accordingly, technology transfer from providers of knowledge intensive business services attracts more and more attention. In this context we focus on external supply of information technology and client-side innovation. The aim of this paper is to contribute to resolving an empirical puzzle arising from the prior literature. Some authors find beneficial effects of IT outsourcing, others underline that firms often fail to achieve expected strategic goals. Our stylized theoretical model combines a knowledge production function framework and transaction cost economics. We hypothesize that the right balance between internal and external knowledge is critical for innovation. The empirical application is German firm-level data covering a wide range of industries from 2003 to 2006. Our results largely support the theoretical arguments and suggest a positive linear relationship between the level of outsourcing and process innovation. For product innovation we find a hump-shape. -- |
| Keywords: | knowledge production function,transaction cost economics,product innovation,process innovation,KIBS,IT outsourcing,ZEW ICT survey |
| JEL: | L24 D23 O31 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11082&r=ino |
| By: | Klingebiel, Ronald; Rammer, Christian |
| Abstract: | Our study shows empirically that the choice of resource allocation strategy affects innovation performance. A policy of allocating resources to a broader range of innovation projects increases sales of new products, especially if these are truly novel, i.e. new to the market. The effect of greater breadth appears to outweigh that of increased resource allocation per project. We find further indication that the performance effect of breadth increases with commercial uncertainty. It is also stronger for firms that allocate resources more selectively at later stages of the innovation process. Based on these results, we theorize that breadth increases performance as it spreads a firm's bets on unproven innovative endeavors, and more so when these endeavors are more uncertain. Limiting resource commitments through selectiveness contains breadth's disadvantages, a combination that provides flexibility in resource allocation. -- |
| Keywords: | innovation performance,resource allocation,uncertainty,selectiveness,innovation management |
| JEL: | L25 M21 O31 O32 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:11073&r=ino |
| By: | Ghafele, Roya |
| Abstract: | While the detailed mechanisms of the interplay of knowledge creation and economic growth have been discussed in great detail by endogenous growth theory, this paper is interested in assessing the role that universities play in the knowledge based economy. It does so at the example of best practice scenarios, as currently being undertaken by the University of Oxford, U.C. Berkeley, the M.I.T. and Chalmers School of Technology. It argues that key to successful research commercialization is the leverage of clusters and networks that assure knowledge flows between universities and business. We call this the ‘Third Way’ of university research commercialization, which focuses on systemic change, rather than on single stakeholder intervention. It reflects a novel generation of knowledge policies that focuses on training, awareness raising and the leverage of cluster effects, rather than the development of physical infrastructure (i.e. science parks). This is a unique approach that outperforms existing best practice in many ways; i.e. it focuses on the leverage of networks among the various academic institutions, rather than repeating the traditional ‘one university – one technology transfer office’ approach. The ‘Third Way’ also outperforms existing best practices by adopting latest trends in intellectual property management , such as online trading, perceiving intellectual property as a financial asset and leveraging open innovation for improving patent quality. Organizational values, structures & procedures of various actors (business, academia, government) are recognized and different institutional cultures are sought to be overcome through boundary spanning. The competing demands and interests of business and academia are reflected through the introduction of ‘social responsible university research commercialization’, as currently undertaken by U.C. Berkeley. |
| Keywords: | Technology Transfer; Research Funding; Intellectual Property; Chalmers School of Technology; U.C. Berkeley; Oxford University |
| JEL: | O34 O32 |
| Date: | 2012–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36394&r=ino |
| By: | Grote, Markus; Herstatt, Cornelius; Gemünden, Hans-Georg |
| Abstract: | -- |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:66&r=ino |
| By: | Vivarelli, Marco (Università Cattolica del Sacro Cuore) |
| Abstract: | This paper critically discusses the theoretical and empirical literature on the quantitative and qualitative employment impact of technological change, compares the relative explanatory power of the competing theories, and explains in detail the macro and micro evidence on the issue, with reference both to the advanced economies and the developing countries (DCs). |
| Keywords: | technology, innovation, employment, skill, skill-biased technological change |
| JEL: | O33 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp6291&r=ino |
| By: | Wilfried Ehrenfeld |
| Abstract: | Climate change, including its possible causes and consequences, is one of the most controversial and intensely discussed topics of our time. However, European businesses nowadays are less affected by the direct effects of climate change than by its indirect consequences. One central issue that arises in this context is the change in demands imposed by the enterprises’ operational environment. This article contributes to environmental innovation literature by providing a comprehensive framework which allows an analysis of the drivers, determinants and outcomes of climate innovations implemented by companies. In this context, the prime issue is how the perception of climate change affects corporate innovation processes. Firstly, the new demands imposed on the company by its stakeholders are considered. Secondly, the innovative reactions to these impulses are captured. Finally, the functions and relevance of certain internal and external determinants in the innovative process are highlighted. |
| Keywords: | climate change, evolutionary economics, innovation, research framework |
| JEL: | O31 Q54 O33 O38 Q55 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:1-12&r=ino |
| By: | Tiago Neves Sequeira (Universidade da Beira Interior, CEFAGE-UBI and INOVA); Alexandra Ferreira Lopes (ISCTE - IUL, ISCTE Business School, UNIDE - IUL and CEFAGE-UBI); Orlando Gomes (ISCAL - Lisbon Polytechnic Institute and UNIDE - IUL) |
| Abstract: | This article analyses the stability properties of the steady-state and the transitional dynamics of an endogenous growth model with human capital, increasing-varieties R&D, and quality-ladders R&D [Strulik, 2005, Review of International Economics, 13 (1): 129-145]. We show that when spillovers within R&D sectors are higher than spillovers across the two R&D sectors, the equilibrium is unstable. However, when spillovers between sectors are higher than within, the equilibrium is a saddle-path. This result emphasizes the need for empirical research that compares quantitatively the importance of these two types of spillovers and highlights the importance of studying intersectoral effects between the two R&D sectors. We describe plausible paths of economic development after changes in crucial parameters and uncover some transitional effects that were impossible to detect in the steady-state analysis. We also show that this model’s transition dynamics can mimic the main features of the process of productivity slowdown that began in the 1970’s. |
| Keywords: | Vertical and Horizontal R&D, Human Capital, Endogenous Growth Models; Steady-State Stability; Transitional Dynamics. |
| JEL: | O11 O15 O31 O33 O41 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:cfe:wpcefa:2012_04&r=ino |
| By: | Fuglie, Keith; Heisey, Paul; King, John; Day-Rubenstein, Kelly; Schimmelpfennig, David; Wang, Sun Ling |
| Abstract: | Meeting growing global demand for food, fiber, and biofuel requires robust investment in agricultural research and development (R&D) from both public and private sectors. This study examines global R&D spending by private industry in seven agricultural input sectors, food manufacturing, and biofuel and describes the changing structure of these industries. In 2007 (the latest year for which comprehensive estimates are available), the private sector spent $19.7 billion on food and agricultural research (56 percent in food manufacturing and 44 percent in agricultural input sectors) and accounted for about half of total public and private spending on food and agricultural R&D in high-income countries. In R&D related to biofuel, annual private-sector investments are estimated to have reached $1.47 billion worldwide by 2009. Incentives to invest in R&D are influenced by market structure and other factors. Agricultural input industries have undergone significant structural change over the past two decades, with industry concentration on the rise. A relatively small number of large, multinational firms with global R&D and marketing networks account for most R&D in each input industry. Rising market concentration has not generally been associated with increased R&D investment as a percentage of industry sales. |
| Keywords: | agricultural biotechnology, agricultural chemicals, agricultural inputs, animal breeding, animal health, animal nutrition, aquaculture, biofuel, concentration ratio, crop breeding, crop protection, farm machinery, fertilizers, Herfindahl index, globalization, market share, market structure, research intensity, seed improvement, Productivity Analysis, |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersrr:120324&r=ino |
| By: | Barajas, A.; Huergo , E.; Moreno, L. |
| Abstract: | The objective of the present study is to analyse the effect of technological cooperation on SMEs performance consideringtwo dimensions: technological and economic results. For that purpose, we use a data set containing information about participants in research joint ventures supported by the SME-specific measures of the sixth Framework Programme. Empirical evidence corroborates a direct and positive impact on technological assets of participants. On the part of the economic indicators, EBITDA per employee and sales are positively influenced by the improvement of technological background. The same results are found for productivity. All those effects are effective in the medium term, confirming that SMEs use to be involved in market-oriented R&D projects. |
| Keywords: | research joint ventures; SMEs; impact assessment |
| JEL: | L2 H81 O3 |
| Date: | 2012–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36306&r=ino |