|
on Innovation |
| By: | William Addessi; Enrico Saltari; Riccardo Tilli |
| Abstract: | We study the impact of R&D and innovation on the use of external numerical flexibility (ENF). R&D and innovation imply both a higher average and a higher volatile productivity. We investigate this ambiguous effect on the firm preference for using ENF in two steps. First, we use a simple model to show that a first-order stochastic dominance shift in the distribution function increases the probability of hiring permanent workers, while a second-order shift has ambiguous effects. Next, using a dataset based on a survey of Italian manufacturing firms, we run logit regressions to estimate the effect of R&D and innovation on the probability of employing a fixed-term or a TWA worker, finding a positive and always significant effect. We also consider internal and external R&D and different types of innovation. Results show that the former has a positive effect while the latter depends on the type of innovation. |
| Keywords: | Flexible employment, Labor contracts, Research and Development, Innovation. |
| JEL: | J41 O33 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:sap:wpaper:wp150&r=ino |
| By: | You-Na Lee; John P. Walsh |
| Abstract: | It is widely thought that intra-firm integration has a positive effect on organizational performance, especially in environments characterized by complex and uncertain information. However, counter arguments suggest that integration may limit flexibility and thereby reduce performance in the face of uncertainty. Research and development activities of a firm are especially likely to face complex and uncertain information environments. Following prior work in contingency theory, this paper analyzes the effects of intra-organizational integration on manufacturing firms’ innovative performance. Based on a survey of R&D units in US manufacturing firms and patent data from the NBER patent database, we examine the relation between mechanisms for linking R&D to other units of the firm and the relative innovativeness of the firm. Furthermore, we argue that the impact of integration may vary by the importance of secrecy in protecting firms’ innovation advantages. We find that intra-firm integration is associated with higher self-reported innovativeness and more patents. We also find some evidence that this effect is moderated by the appropriability regime the firm faces, with the benefits of cross-functional integration being weaker in industries where secrecy is especially important. These results both support and develop the contingency model of organizational performance. |
| Keywords: | Innovation; Organizations; Contingency theory; |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:20-2011&r=ino |
| By: | Guido Cozzi (Durham Business School); Silvia Galli (Hull University Business School) |
| Abstract: | The incentives to conduct basic or applied research play a central role for economic growth. How does increasing early innovation appropriability affect basic research, applied research, education, and wage inequality? This paper analyzes the macroeconomic effects of patent protection by incorporating a two-stage cumulative innovation structure into a quality-ladder growth model with skill acquisition. We focus on two issues (a) the over-protection vs. the under-protection of intellectual property rights in basic research; (b) the evolution of jurisprudence shaping the bargaining power of the upstream innovators. We show that the dynamic general equilibrium interations may seriously mislead the empirical assessment of the growth effects of IPR policy: stronger protection of upstream innovation always looks bad in the short- and possibly medium-run. We argue that in a common law system an explictly dynamic macroeconomic analysis is appropriate. We also provide a simple "rule of thumb" indicator of the basic researcher bargaining power. |
| Keywords: | Endogenous Growth, Basic and Applied R&D, Endogenous Technological Change, Common Law |
| JEL: | O31 O33 O34 |
| Date: | 2012–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:dur:durham:2012_02&r=ino |
| By: | Margarida Chagas Lopes |
| Abstract: | Labor market regulation and its relations with education and training have been performing an historical trajectory which closely intertwined with developments in economic thought. Under the form of human capital theories, neo-classical economics set the bridge between labor market equilibrium and education outputs for decades. The functionalist approach behind that lasting relationship was to be challenged by economic crises and globalization, which imposed the unquestionable supremacy of the demand for skilled work. Likewise, even if only that more strict perspective of education would prevail, which fortunately is not the case, time and hazard came to undertake its denigration on the grounds of a severe loss of regulatory efficiency as globalization was setting up.In this paper we shed light on the increasing role which innovation is called to perform in labor market hetero regulation in the present phase of globalization. Depending on the institutional design throughout which R&D become embedded in nowadays societies, evidence clearly reveals how innovation strategies are to be found so asymmetrically implemented between developed and developing countries, thereby leading to the enlarging divide between the “new North” and “new South” globalization off springs. |
| Keywords: | labor market regulation, education and training, innovation, knowledge, North-South divide, Portugal |
| JEL: | I24 J24 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:soc:wpaper:wp082011&r=ino |
| By: | Anne-Laure Le Nadant (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes 1 - Université de Caen); Frédéric Perdreau (COACTIS - Université Lumière - Lyon II : EA4161 - Université Jean Monnet - Saint-Etienne) |
| Abstract: | A long-standing controversy is whether LBOs generate economic efficiencies through a superior governance framework, or whether LBO funds are driven by short-term profit motives and sacrifice long-term growth to boost short-term performance. Using a propensity score methodology, this paper provides 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. |
| Keywords: | Buyouts, Innovation, Private Equity Firms. |
| Date: | 2011–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00669910&r=ino |
| By: | Takauchi, Kazuhiro |
| Abstract: | To examine the role of shipping firms in the international research and development (R&D) rivalry, we build a two-country (exporting and importing), two-firm (exporting and local) duopoly model with a shipping firm. The exporting firm competes with the local firm in the duopoly market of the local country but must pay a shipping fee to the shipping firm in order to sell its product in the local market. Similar to market competition, exporting and local firms engage in R&D competition. We compare two timing structures of the game: in one, the R&D stage is first, and in the other, the shipping firm is the leader. We show that when the R&D stage is first, there are ranges of parameter values such that the investment level of the exporting firm decreases as R&D becomes more efficient. When the shipping firm is the leader, we show that there are ranges of parameter values such that the profit of the local firm decreases as R&D becomes more efficient. Further, it is shown that consumers in the local country prefer the regime in which the shipping firm is the leader, whereas the government of the local country prefers the other regime. |
| Keywords: | International trade; R&D rivalry; Shipping firm |
| JEL: | L13 F12 |
| Date: | 2012–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:36843&r=ino |
| By: | Ruane, Frances; Siedschlag, Iulia |
| Abstract: | A return to economic growth and higher employment requires growth in the number and sustainability of Irish enterprises. Innovation at enterprise level is essential for sustainability and competitiveness and plays a major role in increasing overall productivity. Understanding the determinants of enterprise innovation and how it affects productivity is important for designing effective innovation policies. The tight fiscal constraints and the urgency of achieving successful outcomes require that government policies aimed at enhancing enterprise innovation and raising productivity need to be very effective. This paper draws on recent international theoretical and empirical literature based on enterprise level data to explore four questions: Does innovation contribute to higher productivity? Which types of enterprises invest in innovation? Which enterprises have higher innovation expenditure per employee? Which types of enterprises are more likely to innovate successfully? We then look at what these findings imply for policy in relation to indigenous enterprises, whether the current policy mix is appropriate and how it might become more effective. |
| Keywords: | Productivity |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:ec3&r=ino |
| By: | Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Khalid Errabi (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)); Caroline Gauthier (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM)) |
| Abstract: | Nanotechnologies are reshaping the boundaries between industries, combining two aspects of innovation - both enhancing competences based on cumulative knowledge and experience and destroying competences by forcing the renewal of the firm's knowledge base. To analyze how worldwide R&D leaders adapt to this new technology, we conduct an econometric analysis of about 3,000 subsidiaries of the largest R&D spenders. We find that large groups are creating medium size subsidiary companies to explore nanotechnologies. Knowledge circulates mostly amongst subsidiaries within the same group and scientific clusters do not affect their involvement in nanotechnologies. Nanotechnologies remain marginal within these subsidiaries' knowledge bases and are distributed within corporate groups, stimulating recombination between nanotechnology and other technologies |
| Keywords: | incumbent; inflexibility; hybridization; nanotechnology; pre-adaptation |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-00526726&r=ino |
| By: | Angus C. Chu (Durham Business School); Guido Cozzi (Durham Business School); Silvia Galli (Hull University Business School) |
| Abstract: | Inspired by the Chinese experience, we develop a Schumpeterian growth model of distance to frontier in which economic growth in the developing country is driven by domestic innovation as well as imitation and transfer of foreign technologies through foreign direct investment. We show that optimal intellectual property rights (IPR) protection is stage-dependent. At an early stage of development, the country implements weak IPR protection to facilitate imitation. At a later stage of development, the country implements strong IPR protection to encourage domestic innovation. We also calibrate the model to aggregate data of the Chinese economy to simulate the optimal path of patent strength, which is increasing as the country evolves towards the world technology frontier, and this dynamic pattern is consistent with the actual evolution of the patent system in China. Furthermore, we provide empirical evidence based on a dynamic panel regression to support the key mechanism in our theoretical model. |
| Keywords: | economic growth; stage-dependent intellectual property rights |
| JEL: | O31 O34 O40 |
| Date: | 2011–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:dur:durham:2011_14&r=ino |
| By: | Shimizu, Hiroshi; Hoshino, Yusuke |
| Abstract: | This paper conducts preliminary analysis on technological innovation by using prize and award data sets: the Okouchi Prizes and the R&D 100 Awards. It aims to outline longitudinal patterns of award-winning industries, organizational type, and inter-organizational collaboration. First, it shows that most awards in the 1960s were given in the area of electric appliances. The iron and steel industry was the second leading prize winner of the Okouchi Prizes. Meanwhile, the segment of transportation equipment, one of the Japan’s leading industries, fared poorly. Looking at the R&D 100 Awards, this segment’s presence has increased in Japan, while it has decreased in the U.S. since the 1970s. Lastly, the inter-organizational collaboration ratio was higher in Japan than in the U.S. until the 1980s. However, the U.S. showed an increase in the collaboration ratio starting in the 1980s, when the ratio dramatically dropped in Japan. |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:hit:iirwps:12-02&r=ino |
| By: | Giovanni Battista Ramello |
| Abstract: | In this article, we argue that aggregate litigation and the court system can not only restore the protection of victims and the production of deterrence, but also play a pivotal role in stimulating regulatory innovation. This is accomplished through a reward system that seems largely to mimic the institutional devices used in other domains, such as intellectual property rights, by defining a proper set of incentives. Precisely the described solution relies on creating a specific economic framework able to foster economies of scale and grant a valuable property right over a specific litigation to an entrepreneurial individual, who in exchange provides the venture capital needed for the legal action, and produces inputs and focal points for amending regulations. In this light, aggregate litigation thus can be equally seen as an incubator for regulation. |
| Keywords: | aggregate litigation, efficiency, market for risk, hierarchy, regulation, innovation, asbestos |
| JEL: | K41 O31 G32 L23 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:icr:wpicer:24-2011&r=ino |
| By: | Jochem, Patrick; Schleich, Joachim |
| Abstract: | The conceptual part of this paper ties the recently developed Lead Market concept to the international trade theory literature including neoclassical trade theory, new trade theory, neotechnological approaches and systems of innovation concepts. The empirical part explores the factors driving exports in the automotive sector in eight OECD countries between 1991 and 2008, explicitly accounting for possible Lead Market factors. Econometric results suggest that exports in the automotive sector are positively related to the general strength of a country in terms of exports, to higher GDP per capita and to a lower labour cost share in the automotive sector. However, domestic market size and R&D in the automotive sector do not exhibit statistically significant effects on exports. -- |
| Keywords: | lead markets,international trade,export potential,automotive industry |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s32012&r=ino |
| By: | Ernest Miguélez (Economics and Statistics Division, World Intellectual Property Organization and Faculty of Economics, University of Barcelona); Rorina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | The aim of the present paper is to identify the determinants of the geographical mobility of skilled individuals, such as inventors, across European regions. Their mobility contributes to the geographical diffusion of knowledge and reshapes the geography of talent. We test whether geography, amenities, job opportunities and social proximity between inventors’ communities, and the so-called National System of Innovation, drive in- and out-flows of inventors between pairs of regions. We use a control function approach to address the endogenous nature of social proximity, and zero-inflated negative binomial models to accommodate our estimations to the count nature of the dependent variable and the high number of zeros it contains. Our results highlight the importance of physical proximity in driving the mobility patterns of inventors. However, job opportunities, social and institutional relations, and technological and cultural proximity also play key roles in mediating this phenomenon. |
| Keywords: | inventors’ mobility, gravity model, amenities, job opportunities, social and institutional proximities, zero-inflated negative binomial, European regions. JEL classification: C8, J61, O31, O33, R0 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201204&r=ino |
| By: | Thierry Brechet; Guy Meunier |
| Abstract: | In this paper we analyze the effects of an environmental policy on the diffusion of a clean technology in an economy where firms compete on the output market. We show that the share of adopting firms is non-monotonic with the stringency of the environmental policy, and that the adoption of the clean technology may well increase the pollution level. We also compare the effects of an emission tax and tradable pollution permits on welfare, technology adoption, and pollution level. We show that, depending on the stringency of the policy, either the tax or the permits can yield a higher degree of technology adoption and pollution. Actually, technology adoption and environmental quality may be conflicting in discriminating among the instruments. |
| Keywords: | innovation, technology adoption, environmental regulation |
| JEL: | H23 Q55 Q58 |
| Date: | 2012–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:eus:wpaper:ec0112&r=ino |
| By: | Thierry Brechet; Guy Meunier |
| Abstract: | In this paper we analyze the effects of an environmental policy on the diffusion of a clean technology in an economy where firms compete on the output market. We show that the share of adopting firms is non-monotonic with the stringency of the environmental policy, and that the adoption of the clean technology may well increase the pollution level. We also compare the effects of an emission tax and tradable pollution permits on welfare, technology adoption, and pollution level. We show that, depending on the stringency of the policy, either the tax or the permits can yield a higher degree of technology adoption and pollution. Actually, technology adoption and environmental quality may be conflicting in discriminating among the instruments. |
| Keywords: | innovation, technology adoption, environmental regulation |
| JEL: | H23 Q55 Q58 |
| Date: | 2012–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:eus:ce3swp:0112&r=ino |