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on Innovation |
| By: | Gustavo Crespi; Pluvia Zuñiga |
| Abstract: | This study examines the impact of innovation strategies on employment growth in four Latin American countries (Argentina, Chile, Costa Rica, and Uruguay) using micro-data for manufacturing firms from innovation surveys. Building on the model proposed by Harrison et al. (2008), we relate employment to three innovation strategies: make only (R&D), buy only (external R&D, licensing of patents and know-how, technical assistance, and other external innovation activities) and make and buy (mixed strategy). Firms that conduct in-house innovation activities ("make only") have the greatest impact on employment; the "make and buy" strategy comes in second. Similar results are found for small firms. These results highlight the importance of fostering in-house technological efforts not only for innovation per se, but also to promote growth in firm employment. The impact of "make only" strategies is greater in high-tech industries, whereas "make only" and "make and buy" have a similar impact on employment in low-tech industries. Finally, the study provides evidence of the mechanisms through which innovation strategies affect employment. The findings show that innovation strategies enhance technological innovation, but their impact differs between product and process innovation. Product innovation is mainly motivated by in-house technology investments, followed by mixed strategies, whereas process innovation is basically driven by "buy" strategies. |
| Keywords: | Economics :: Productivity, Economics :: Economic Development & Growth, Private Sector :: SME, Science & Technology :: Research & Development, Science & Technology :: New Technologies, innovation, employment, external R&D, Latin America, innovation surveys, CTI, IFD, RG-K1164 |
| JEL: | O12 O31 O33 O40 J21 O14 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:63978&r=ino |
| By: | Schwiebacher, Franz |
| Abstract: | Innovation is commercialization of technology. Imperfections in markets for technology should leave marks on physical investments for innovation. Two types of transaction costs could affect innovative investments: royality stacking and hold-up threats. Backward references in firm's patent portfolio indicate potential technology suppliers. I find a negative effect of ownership fragmentation on investments related to innovation for firms with small patent portfolios. Hold-up threats are credible when upstream patentees have less specific capital sunk than innovating firms. Differences in fixed capital stocks between downstream firms and upstream patentees negatively affect investments in innovation for firms with large patent portfolios. These effects are specific to investments in innovation. There are no comparable effects on investments in R&D or residual physical investments. The effects of patent thickets on innovation are thus not uniform. They depend on the characteristics of the downstream firm. -- |
| Keywords: | Market for Technology,Complementary Assets,Transaction Costs,Patent Thickets |
| JEL: | O31 O34 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12015&r=ino |
| By: | Martijn A. Boermans; Hein Roelfsema |
| Abstract: | It is well-documented that international enterprises are more productive. Only few studies have explored the effect of internationalization on productivity and innovation at the firm-level. Using propensity score matching we analyze the causal effects of internationalization on innovation in 10 transition economies. We distinguish between three types of internationalization: exporting, FDI, and international outsourcing. We find that internationalization causes higher levels of innovation. More specifically, we show that (i) exporting results in more R&D, higher sales from product innovation, and an increase in the number of international patents (ii) outward FDI increases R&D and international patents (iii) international outsourcing leads to higher sales from product innovation. The paper provides empirical support to the theoretical literature on heterogeneous firms in international trade that argues that middle income countries gain from trade liberalization through increases in firm productivity and innovative capabilities. |
| Keywords: | Firm heterogeneity, Internationalization, Innovation, Transition economies |
| JEL: | D22 F14 F23 O12 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1204&r=ino |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholarshave sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:qt4f7671kn&r=ino |
| By: | Cui, Victor; Ding, Waverly W.; Yanadori, Yoshio |
| Abstract: | Given the importance of exploration in a firm’s overall innovation program, scholars have sought to understand organizational factors that give rise to exploration-oriented innovations. We propose theory and empirical evidence that relates firms’ use of financial incentives to their exploratory innovation performance. We expect that a larger proportion of long-term incentives in R&D employee compensation should be positively associated with the creation of exploratory innovation in a firm. In addition, we propose that a higher level of horizontal pay dispersion is negatively associated with the creation of exploratory innovation. We examine innovations reflected in the patents of a unique six-year, unbalanced panel dataset of 94 high-technology firms in the U.S. Empirical results confirm that firms with high level of horizontal pay dispersion have less exploratory patent innovations. However, surprisingly, firms that pay their R&D employees a higher proportion of long-term financial incentives in total compensation have lower level of exploratory innovation. This implies the possibility that popular longterm incentive plans in high-technology sectors (e.g., stock option plans) have failed to achieve their intended goals in practice. We discuss factors that might moderate the negative impact of long-term incentives on exploratory innovation. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:qt2kq4b8qj&r=ino |
| By: | Fryges, Helmut; Kohn, Karsten; Ullrich, Katrin |
| Abstract: | We investigate the interdependence of debt financing and R&D activities of young firms. Using micro-level data of the KfW/ZEW Start-up Panel, our estimation results show that firm characteristics are more important than personal characteristics of the founders for explaining young firms' leverage, whereas firm characteristics and human capital of both founders and employees heavily influence R&D intensity. Applying a bivariate Tobit model, we find that there is a positive interdependent relationship between the share of loan financing and R&D intensity. A higher share of loan financing allows for more R&D in young firms and, at the same time, a higher R&D intensity allows for a higher loan share. This relationship cannot be detected by merely estimating single-equation models for R&D intensity and debt financing. -- |
| Keywords: | innovation financing,capital structure,start-ups,KfW/ZEW Start-up Panel,Germany |
| JEL: | G32 O32 L26 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12016&r=ino |
| By: | Constantine Manasakis (Department of Economics, University of Crete, Greece); Dusanee Kesavayuth (Research Institute for Policy Evaluation and Design, University of the Thai Chamber of Commerce, 126/1 Vibhavadee-Rangsit Road, Dindaeng, Bangkok, 104); Vasileios Zikos (School of Economics, University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom; and Research Institute for Policy Evaluation and Design, Univer) |
| Abstract: | We study the endogenous formation of upstream R&D networks in a vertically related industry. We find that, when upstream firms set prices, the complete network that includes all firms emerges in equilibrium. In contrast, when upstream firms set quantities, the complete network will arise but only if within-network R&D spillovers are sufficiently low, while if R&D spillovers are sufficiently high, a partial network arises. Interestingly, when upstream firms set prices, the equilibrium network maximizes social welfare, while a conflict between equilibrium and socially optimal networks is likely to occur when upstream firms set quantities. |
| Keywords: | Networks, R&D collaboration, upstream firms. |
| JEL: | L13 J50 |
| Date: | 2012–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:crt:wpaper:1201&r=ino |
| By: | König, Michael; Lorenz, Jan; Zilibotti, Fabrizio |
| Abstract: | We develop a tractable dynamic model of productivity growth and technology spillovers that is consistent with the emergence of real world empirical productivity distributions. Firms can improve productivity by engaging in in-house R&D, or alternatively, by trying to imitate other firms’ technologies subject to limits to their absorptive capacities. The outcome of both strategies is stochastic. The choice between in-house R&D and imitation is endogenous, and based on firms’ profit maximization motive. Firms closer to the technological frontier have less imitation opportunities, and tend to choose more often in-house R&D, consistent with the empirical evidence. The equilibrium choice leads to balanced growth featuring persistent productivity differences even when starting from ex-ante identical firms. The long run productivity distribution can be described as a traveling wave with tails following Zipf’s law as it can be observed in the empirical data. Idiosyncratic shocks to firms’ productivities of R&D reduce inequality, but also lead to lower aggregate productivity and industry performance. |
| Keywords: | absorptive capacity; growth; innovation; productivity difference; quality ladder; spillovers |
| JEL: | E10 O40 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8843&r=ino |
| By: | Bøler, Esther Ann; Moxnes, Andreas; Ulltveit-Moe, Karen-Helene |
| Abstract: | This paper examines the interdependence between innovation and imports of intermediates, and their joint impact on productivity. We do so by developing a quantitative model with heterogeneous firms and international trade where firms can invest in R&D and source inputs internationally. Innovating firms on average become more productive, thereby enabling them to cover the fixed costs of sourcing foreign inputs, which in turn also has a benign impact on measured productivity. Using Norwegian firm-level data on R&D and trade in intermediates, we structurally estimate the model and find that both imports and R&D investment play a key role in explaining firm-level productivity growth. Moreover, the estimated returns to R&D are significantly lower after controlling for the complementarity between R&D investments and imports. We exploit the introduction of an R&D tax credit scheme in Norway in 2002, which lowered the marginal cost of R&D substantially. The estimated structural model can explain most of the observed increase in trade in intermediates as more firms started to innovate, underscoring the quantitative importance of our theoretical mechanism. Moreover, one fifth of measured productivity growth among new innovators came from increased foreign sourcing, rather than technology upgrading, illustrating how trade can amplify productivity gains. An implication of our work is that lower input trade barriers promote technological change. Hence, our work offers a new mechanism through which imports increase productivity, which may help explain why a number of studies find firm-level productivity gains associated with input trade liberalization. |
| Keywords: | Imports; innovation; intermediate inputs; productivity; R&D |
| JEL: | F10 F12 F14 O30 O33 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8884&r=ino |
| By: | Hashmi, Aamir Rafique; Van Biesebroeck, Johannes |
| Abstract: | We first estimate a dynamic game for the global automobile industry and then compute a Markov Perfect equilibrium to study the equilibrium relationship between market structure and innovation. The key state variable in the model is the efficiency level of each firm and the market structure is characterized by the vector of efficiency levels across all firms. Efficiency is estimated to be stochastically increasing in the dynamic control--innovation--which is proxied by patenting behavior. Equilibrium innovation is a function of all state variables in the industry and the cost of R&D which includes a privately observed cost shock. We find that it exhibits the following patterns: 1) innovation by the industry leader is decreasing in the efficiency of other firms; 2) innovation is decreasing in the efficiency dispersion; 3) innovation is more concentrated that efficiency; 4) innovation is declining in the number of active firms; 5) the innovation gap between the leader and other firms increases with competition. |
| Keywords: | Competition; Dynamic game; Schumpeter |
| JEL: | C73 L13 L62 O31 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8783&r=ino |
| By: | Valerio STERZI (GREThA, CNRS, UMR 5113 & KITES, Bocconi University) |
| Abstract: | This paper deals with an issue which is particularly relevant in the literature on IPR and university-industry knowledge transfer: is the ownership structure of academic inventions relevant for patent quality and the efficiency of the knowledge transfer process? This question is also particularly significant in Europe where some countries have followed the Bayh-Dole Act example in the USA to increase the involvement level of universities in IP management. The paper uses a novel dataset of academic inventors in the UK, which includes university patents (i.e. patents owned by universities) and corporate patents (i.e. patents signed by academic scientists but owned by private companies) in the period 1990-2001. The UK is an interesting case to study due to the tradition of university involvement in IP management as it was one of the first countries to implement the university ownership model. The main results may be summarised as follows.\r\n(1) Controlling for observable patent and scientist characteristics, corporate patents received more citations than university patents in the first three years after filing, but (2) this difference is less significant when considering a longer time window. However, (3) there is no knowledge fertilisation across public (university) and private institutions: university patents mainly cite other university patents and the same reasoning applies to corporate patents. Moreover (4) knowledge flows from university patents are even more geographically localised than those from corporate patents. Finally, (5) among scientists’ characteristics, a professor’s scientific quality and his patenting experience seem to be correlated with patent value. From a policy prospective, the results in points (1), (2) and (3) cast some doubts on the role of university ownership as an instrument to foster and facilitate knowledge transfer between academia and industry and raise serious questions about the effect of policies towards increasing the role of technology transfer offices in managing academic patents. |
| Keywords: | Academic patents; Technology transfer; Patent value; Citations |
| JEL: | L33 O33 O34 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2012-07&r=ino |
| By: | Fabio MONTOBBIO (University of Turin & KITES, Bocconi University, Milan); Valerio STERZI (GREThA, CNRS, UMR 5113 & KITES, Bocconi University, Milan) |
| Abstract: | This paper analyzes the determinants of different types of international technological collaborations among patents’ inventors between emerging and advanced countries. Technological collaborations generate knowledge flows between inventors through interpersonal and face to face contacts. We use US Patent and Trademark Office (USPTO) patent applications for a panel of eleven emerging economies and seven advanced countries (90-04) and a novel database that exploits information on companies’ country of origin. We estimate the impact of geographical distance and various economic and institutional variables using the Poisson pseudo-maximum likelihood (PPML) and show that results vary according to the type of collaborations considered and to the country of origin (emerging vs. advanced) of the involved companies. Geographical distance affects international technological collaborations only when the applicant’s ownership is in the emerging country. Fixed effect estimates show that stronger IPRs positively affect international technological collaborations only when stemming from subsidiaries of multinational firms. |
| Keywords: | Knowledge flows, Emerging Countries, Patents, Inventors, Intellectual Property Rights |
| JEL: | O30 O10 O11 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2012-05&r=ino |
| By: | Dessí, Roberta |
| Abstract: | Innovative start-ups and venture capitalists are highly clustered, benefiting from localized spillovers: Silicon Valley is perhaps the best example. There is also substantial geographical variation in venture capital contracts: California contracts are more 'incomplete'. This paper explores the economic link between these observations. In the presence of significant spillovers, it becomes optimal for an innovative start-up and its financier to adopt contracts with fewer contingencies: these contracts maximize their ability to extract (part of) the surplus they generate through positive spillovers. This relaxes ex-ante financing constraints and makes it possible to induce higher innovative effort. |
| Keywords: | incomplete contracts; innovation; spillovers; venture capital |
| JEL: | D82 D86 G24 L22 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8731&r=ino |
| By: | Henry, Emeric; Ruiz-Aliseda, Francisco |
| Abstract: | A large portion of innovators do not patent their inventions. This is a relative puzzle since innovators are often perceived to be at the mercy of imitators in the absence of legal protection. In practice, innovators however invest actively in making their products technologically hard to reverse-engineer. We consider the dynamics of imitation and investment in such protection technologies, both by the innovator and by imitators. We show that it can justify high level of profits beyond patents and can account for the differences across sectors in the propensity to patent. Surprisingly, in general, the protection technologies that yield the highest profits for the innovator are expensive and do not protect well. Our model also allows us to draw conclusions on the dynamics of mobility of researchers in innovative industries. |
| Keywords: | complexity; dynamic games; imitation; innovation |
| JEL: | C73 O31 O32 O33 O34 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8870&r=ino |
| By: | Rahobisoa Herimalala (UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211); Olivier Gaussens (UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211) |
| Abstract: | Innovation in small and medium-sized enterprises (SMEs) is a source of regional development and enables enterprises to improve their competitiveness. However, the intensification of innovation effort depends upon a better understanding of the innovation process, in particular the assessment of its innovation capacity to process its resources and various activities in efficient manner into better results. This paper deals with innovation process modeling and innovation measurement, in order to provide answers to these recurrent questions of the entrepreneurs in these SMEs. Thus, first we propose a model of innovation process as a collective design process that involves the interplay of two categories of activities, such as exploratory activities and value oriented activities, centered on the entrepreneur. Then from this model, we evaluate: (a) the innovation capacity from the process activities and too the outputs of innovation process; (b) the X-(in)efficiency using multiobjective (MOLP) data envelopment analysis (DEA) model of innovation processes. Through MOLP-DEA method, we decompose the X-inefficiency in technical inefficiency and congestion to highlighting the miss-use or the under-utilization of innovation capacity, as resources of process. Finally we measure X-inefficiency by an overall index taking into account of all aspects of inefficiency as the enhanced DEA Russell graph efficiency measure. For the empirical analysis, we use the data from a representative random sample formed by 80 innovative enterprises of regional SMEs of Normandy in France. The results show that most of innovation processes are X-inefficient in SMEs of Normandy. This X-inefficiency is more characterized by the congestion problem than the technical inefficiency. That shows the difficulties of some entrepreneurs to implement the rules and standards of interplay between some activities. |
| Keywords: | Innovation Process, X-Efficiency, Multiobjective Linear Programming, Data Envelopment Analysis, Russell measure |
| JEL: | C61 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201215&r=ino |
| By: | Kaz Miyagiwa; Yuka Ohno |
| Abstract: | With the America Invents Act of 2011, the U.S. changed its patent-issuing rule from first-to-invent to first-to-file, the international norm. We investigate the effect of such a policy change in a two-country model of R&D competition for two sequential (basic and final) inventions. We find that a switch never speeds up basic research. A delay is more likely especially in industries where the final product generates more value in the U.S. Simulations show that a delay in basic research also retards final invention, decreasing world welfare. |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:emo:wp2003:1203&r=ino |
| By: | Lincoln, James R.; Guillot, Didier |
| Abstract: | This paper examines the changing process of strategic alliance formation in the Japanese electronics industry between 1985 and 1998. With data on 123-135 Japanese electronics/electrical machinery makers, we use a dyad panel regression methodology to address a series of hypotheses drawn largely from embeddedness theory on how the firms’ horizontal and vertical keiretsu business group affiliations and prior alliance networks supported and constrained partner choice in new R&D (innovation) and nonR&D (implementation) domestic economy alliances. We find that in the first half of our series (1985-91; the “preburst†period) keiretsu served as infrastructure or platform for new strategic alliances that had both innovation and implementation goals. In the second half of our series (1992-98, the “postbubble†period) the keiretsu effects on innovation alliance formation were gone, but the groups’ role in nonR&D or implementation alliances, the purpose of which was often cost reduction, had expanded. Our results suggest that Japanese electronics firms over this interval of time adapted rationally to the heightened uncertainty and stringency of the Japanese domestic economic environment by searching outside their preexisting networks for innovation alliances while at the same time exploiting those networks for implementation alliances addressed to cost-reduction and other operational aims. The study speaks to embeddedness theory in showing that economic actors are not deterministically constrained by business group or other preexisting network ties but may in rational fashion exploit or abandon those ties with an eye to advancing corporate and alliance goals. |
| Keywords: | Organizational Behavior and Theory |
| Date: | 2011–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:indrel:qt35g695gn&r=ino |
| By: | Bertoni, Fabio; Tykvová, Tereza |
| Abstract: | Although there seems to be consensus in the literature that venture capital investors increase the innovation output of their portfolio companies, there is little evidence about how investor type (governmental vs. private) and transaction structure (syndicated vs. non-syndicated) moderate this impact. Using a sample of 865 young biotech and pharmaceutical companies from seven European countries, we investigate which form of venture capital is most supportive of innovation. Our results suggest that in companies financed by syndicates and by private venture capital investors, the innovation output increases significantly faster than in non-venture-backed companies. The most supportive form is a heterogeneous syndicate (i.e., consisting of both types of venture capital investors) led by a private investor. -- |
| Keywords: | innovation,patents,private venture capital investors,governmental venture capital investors,syndication,biotech and pharmaceutical companies,Europe |
| JEL: | G24 H0 O3 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12018&r=ino |
| By: | Ashokankur Datta (Indian Statistical Institute, New Delhi); E. Somanathan (Indian Statistical Institute, New Delhi) |
| Abstract: | It is well-recognized that new technology is a crucial part of any solution to the problem of climate change. But since investments in research and development take time to mature, price and quantity instruments, i.e., carbon taxes and cap-and-trade, run into a commitment problem. We assume that the government cannot commit to the level of a policy instrument in advance, but sets the level to be optimal ex-post. Under these assumptions, we show that when the supply curve of dirty (emission-producing) energy is flat, then an emissions tax is ineffective in promoting R & D into green (emission-free) energy while an emissions quota (i.e., cap and trade) can be effective. A subsidy to R & D is welfare-reducing. More realistically, when the supply curve of dirty energy is upward-sloping, then both tax and quota regimes can be effective in promoting R & D into emission-free technology. In this case, a tax generally induces more R & D than a quota. When the supply curve is sufficiently steep compared to the demand curve, a subsidy to R & D can expand the range of parameter values under which R & D occurs and this can be welfare-improving. If there is sufficient uncertainty about whether a climate policy will be adopted ex-post, then subsidizing R & D is an even more attractive policy option since a welfare-improving subsidy to R & D exists under a wider range of circumstances. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:ind:isipdp:10-09&r=ino |
| By: | Reinhold Kosfeld (University of Kassel); Jorgen Lauridsen (Southern University of Denmark) |
| Abstract: | More recently, there has been a renewed interest in cluster policies for supporting industrial and regional development. By virtue of the linkage between growth and innovation, R&D intensive industries play a crucial role in cluster development strategies. Empirical cluster research has to contribute to the understanding the process of cluster formation. Some experiences with the use of local spatial methods like local Moran’s Ii and Getis-Ord Gi tests in pattern recognition are already available. However, up to now the utilisation of spatial scan techniques in detecting economic clusters is largely ignored (Kang, 2010). In this paper, the performance of the above-mentioned local spatial methods in identifying German R&D clusters is studied. Differences in cluster detection across the tests are traced. In particular, the contribution of Kulldorff’s spatial scan test in detecting industry clusters is critically assessed. |
| Keywords: | Spatial Clusters, R&D Intensive Industries, Local Spatial Methods, Spatial Scan Test |
| JEL: | R12 R15 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201214&r=ino |
| By: | Leonel Muinelo-Gallo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | This paper analyses the relationship between productivity, innovation and research at firm level using an extension of CDM's model. The study es performed for spanish manufacturing sector firms using information fron the "Encuesta sobre innovación tecnológica en las empresas" 2000 and 2004. The empirical results suggests that public funds, size of the firms and participation in internationalized markets plays an important role in the decisions to perform internal research activities. In addition, the firms that perform an internal effort in research activities are more probable that become innovative of product and/or of process. Finally, the estimations also emphasize that increases in productivity are positively correlated with the introduction of new products and/or processes and the intensity of the physical capital. |
| Keywords: | innovation, research, productivity |
| JEL: | O31 O32 D24 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-02-12&r=ino |
| By: | Hashem, Nawar; Ugur, Mehmet |
| Abstract: | The debate on competition and innovation has produced a wide range of theoretical and empirical findings. Recently, corporate governance quality has emerged as an additional factor that may complement or substitute for competition’s effect on innovation. We aim to contribute to the debate by investigating whether product-market competition and corporate governance quality affect firm-level innovation, utilising a dataset for 1,400 non-financial US-listed companies. Using two-way cluster-robust estimation, we report several findings. First, the relationship between industry-level competition and input as well as output measures of innovation is non-linear. Secondly, the non-linear relationship is of an inverted-U shape with respect to input measures of innovation, but the relationship has a U-shape when output measure of innovation is estimated. Third, corporate governance indicators such as anti-takeover defences and insider control tend to have a negative effect on input measures of innovation but their effect is positive with respect to the output measure. Finally, when interacted with market concentration, anti-takeover defences and insider control emerge as substitutes, leading to sign reversals in the relationship between competition and innovation. The results are obtained by using two-way cluster-robust estimation that controls for dependence within company/year and industry/year clusters, but they are robust to different estimation methods including fixed-effect and Fama-Macbeth procedure. |
| Keywords: | Innovation, competition, corporate governance, two-way cluster-robust estimation |
| JEL: | D21 G3 O31 L1 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:37481&r=ino |
| By: | Christophe CARRINCAZEAUX (GREThA, CNRS, UMR 5113); Frédéric GASCHET (GREThA, CNRS, UMR 5113) |
| Abstract: | This article aims at assessing the diversity of regional innovation systems and their economic performances within Europe. We propose to adapt the Social Systems of Innovation and Production (SSIP) framework developed by Amable, Barré and Boyer (1997) at the regional level by identifying specific arrangements of each part of the innovation and production system. A key feature of this approach is the concept of complementary institutions, allowing a limited number of viable and stable configurations to be identified. Three key features of European regions are investigated using this framework: the diversity of regional SSIPs, the interplay of regional and national determinants of such systems, and the impact of SSIPs on regional performance. We identify a typology of regional configurations resulting from the combination of scientific, technological, educational and industrial indicators, using multivariate data analysis. We then test the existence of specific regional growth regimes. The results highlight a persistently high level of diversity of regional configurations, notably among knowledge intensive regions, but also show that national institutional settings remain of fundamental importance in shaping a number of regional configurations. A final conclusion relates to the weak correlation observed between the structural characteristics of regions and their performances over the 2003-2007 period: regional performance remains primarily shaped by national trends. Overall, the paper questions the regional dimension of these “systems”. |
| Keywords: | Regional innovation systems, knowledge, regional growth, institutions |
| JEL: | R11 O43 O18 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2012-06&r=ino |
| By: | Abramovsky, Laura; Griffith, Rachel; Miller, Helen |
| Abstract: | The research activities of multinational firms is increasingly mobile raising concerns about displacement of high-skilled employment in headquarter countries. We estimate of the impact offshoring inventors has on firms' use of inventors at home using within firm variation across industries. We use a instrumental variables to tackle possible endogeneity and identify robust bounds on the estimate. We cannot rule out the possibility that foreign inventors displace home inventors, but our main result suggests that a 10% increase in the number of inventors abroad results in a 1.9% increase in the number of inventors at home. |
| Keywords: | innovation and patents; multinational firms; offshoring |
| JEL: | F21 F23 H30 O30 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:8837&r=ino |
| By: | Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | We examine the impact of trade related R&D spillovers from he country's partners in the MERCOSUR as well as from the EU and NAFTA blocs and the rest of the world on total factor productivity (TFP) for the Uruguayan case at the industry level, for the period 1988-1995. Furthermore we analyze the impact of domestic R&D in Uruguay. There is evidence of trade related technology diffusion from MERCOSUR partners to Uruguay, while domestic R&D as a positive impact on productivity. Thus, policies aimed to decreasing trade barriers within the MERCOSUR and promoting domestic R&D would enhance Uruguayan manufacturing productivity. |
| Keywords: | trade, technology spillovers, technology transfer |
| JEL: | F1 F2 O3 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-10-11&r=ino |
| By: | Claudia Curi (Banque Centrale du Luxembourg); Cinzia Daraio (Dipartimento di Informatica e Sistemistica "Antonio Ruberti" Sapienza, Universita' di Roma); Maria Patrick Llerena (University of Strasbourg, BETA (Bureau d'Economie Théorique et Appliquée)) |
| Abstract: | This paper presents the first assessment of the efficiency of the technology transfer operated by the French university system and its main determinants. The analysis is based on a detailed and original database of 51 TTOs, categorized by type of university they belong to, over the period 2003-2007. Overall, we find a low level of efficiency and both intra-category and inter-categories efficiency variation. The analysis of determinants showed that French TTOs efficiency depends extensively on the nature of the category (with universities specialised in science and engineering being the most efficient ones), on institutional and environmental characteristics. We found that both the seniority of TTO and size of the university have a positive effect. In terms of environmental variables, the intensity of R&D activity (both private and public) has a positive impact; however, in terms of growth rate, only the Private R&D activity seems to be the main driver. Lastly, we find that the presence of a university-related hospital is detrimental for the efficiency. An extended discussion of the results within the existing literature is also offered. |
| Keywords: | Technology Transfer Offices (TTOs), French University System, Technical Efficiency, DEA, Bootstrap, Regional Growth |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:wpaper:2012-2&r=ino |
| By: | Ömer Özak (Southern Methodist University) |
| Abstract: | This research proposes that the geographical distance from the location of the pre-industrial technological frontier has a non-monotonic and persistent effect on development. While remoteness from this frontier diminished imitation, it fostered the emergence of a culture conducive to innovation and knowledge creation, which has persisted into the modern era even after barriers to movement dissipated. I construct a novel measure of geographical distance in the pre-industrial era, which measures the travel time along the optimal route between any two locations. Using this measure I show that the distance to the technological frontier in the past has a robust and persistent U-shaped relation with measures of economic development both in the pre-industrial and modern eras. Furthermore, a distance of 6 weeks of travel, which is roughly the distance from Ethiopia to the UK, is the least desirable distance from the technological frontier in the pre-industrial era as it generates the largest adverse effects on contemporary development. |
| Keywords: | Economic growth, comparative development, culture and technology, technological innovation, technological diffusion, globalization, geographical distance, technological imitation |
| JEL: | E02 F15 F43 N10 N70 O11 O14 O31 O33 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:smu:ecowpa:1201&r=ino |
| By: | Ljungquist, Urban (CSIR, Blekinge Inst of Technology) |
| Abstract: | The purpose with this paper is to categorise dynamic capability in technology innovation implementation from various management role perspectives. <p>The findings contribute to existing research of strategic change and healthcare management from an empirical case study based on interviews and archival documents. <p>Three organisational management roles (top, local, and ad hoc) are linked to the dynamic capability framework. Identifies an organisational paradox that puts undue pressure on sub-units to be high in both flexibility and consistency, which draws managerial attention to distinguish content from process of the daily activities. The analysis brings previously unexploited “common ground” to the three managerial roles, enhancing the potentials of mutual understanding and cooperation. Visualises the importance of management guidance and coordination of employee drive and enthusiasm. |
| Keywords: | Dynamic capability; Healthcare; Organisational chimneys; Innovation |
| JEL: | M10 |
| Date: | 2012–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bthcsi:2012-002&r=ino |
| By: | Adriana Peluffo (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economía) |
| Abstract: | In this work we examine technology/productivity spillovers to Uruguayan manufacturing firms through trade, foreign direct investment (FDI) and learning by exporting, for the period 1997-2001. This work contributes to the existing literature by providing evidence of the dynamic gains from opening up to trade for a small developing country, analysing the various possible channels of international technology diffusion at he firm level. We use various methodologies. To this end we use various methodologies and we take into account the effect of endogenous technological capabilities of the firms. We find evidence of positive effects of imported intermediates, exports and foreing ownership on productivity. On the other hand the results for multinational presence at the industry level and backward linkages on domestic firms productity are mixed. Nevertheless, those firms that undertake their own R&D and/or training of workers and hence have higher absorptive capacity seem to be in a better position to take advantage of external knowledge. These results would indicate that absorptive capacity matters to take advantage of increased openness and FDI, so trade liberalization along with policies aimed to improve absorptive capacity such as investign in R&D and the training of workers through training are likely to play a role in facilitating knowledge spillovers and productivity gains. |
| Keywords: | trade, technology spillovers, foreign direct investment, learning by exporting, technology transfer |
| JEL: | F1 F2 O3 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:ulr:wpaper:dt-08-11&r=ino |
| By: | Ljungquist, Urban (CSIR, Blekinge Inst of Technology) |
| Abstract: | We update the original core competence notions of identification and development to fit high efficient innovation processes in dynamic environments, with aim to progress the concept's applicability for scholars and practitioners. <p>To the core competence concept we add four dimensions previously missing: time (shared history and shared future aims), managerial hierarchy levels (corporate and SBU), innovation development modes and outcome types (radical/incremental and exploitation/exploration), and finally innovation team characteristics and support structure (homogenous/heterogeneous and formal/informal structure). <p>We propose that existing core competencies are ideally explored by homogenous teams managed at the SBU-level, in structured context, which infers competitive imitation protection. The process starts with identification then progressed by a change in structure: going from formal to informal, which will increase core competence and company performance. |
| Keywords: | Core competence; time; managerial hierarchy levels; innovation; ambidexterity; support structure. |
| JEL: | M10 |
| Date: | 2012–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bthcsi:2012-003&r=ino |
| By: | Acs, Zoltan J. |
| Abstract: | Unlike in the past where industrial policy was either focused on creation and growth of state-owned firms or alternatively consisted merely of broadly functional policies without consideration for firm or entrepreneurial specifics, the requirement now is that future industrial policy ought to be a nuanced partnership between entrepreneurs and the state. In this paper we outline some considerations for such an industrial policy where the entrepreneur.state nexus is paramount. Moreover, we argue that such an industrial policy will need to take into consideration that the entrepreneur.state nexus is evolving, and that it depends on the stage of development of a particular country. |
| Keywords: | entrepreneurship, industrialization, structural change, industrial policy, innovation, development |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2011-80&r=ino |