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on Innovation |
| By: | Che, XiaoGang (University of Alberta, Department of Economics); Yang, Yibai (University of Sydney) |
| Abstract: | Patent protection may decrease R&D incentives due to the tournament effect. In this paper, we show that patent protection in the presence of a cooperative R&D option always increases the R&D incentive. In addition, this option dominates imitation to increase the R&D incentive under patent protection, and may also dominate royalty licensing depending on the R&D cost. |
| Keywords: | cooperative R&D; patent protection; R&D incentive |
| JEL: | O31 O34 O38 |
| Date: | 2012–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2012_006&r=ino |
| By: | Effelsberg, Martin |
| Abstract: | A rising competitive pressure for innovations comes along with an increasing number of companies and public research facilities that include external sources of information into the innovation process. This trend towards an open innovation process can be verified empirically. External R&D expenditures are those invested in R&D activities outside the firm's boundaries, e. g. license fees, research assignments or collaborations with public research institutes and companies. Investments in external R&D allow fast adaptations within the innovation process in case of changing market trends or radical innovations. Furthermore, opening up the innovation process simplifies an integration of required know-how from another industry. Altogether, the flexibility of innovation can be increased without an expansion of a company's own capacities. Beside the trend of integrating knowledge from outside the firm's boundaries, an increasing internationalization of R&D can be observed in several branches. Hence, this article examines the following questions: Which factors determine the absorptive capacity of national economies? How can these factors be operationalized and how can an adequate framework be developed to increase national absorptive capacity? -- |
| Keywords: | innovation systems,absorptive capacity,theory |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:opodis:201104&r=ino |
| By: | LOPES BENTO Cindy; CZARNITZKI Dirk |
| Abstract: | A significant amount of money is spent on programs to stimulate innovative activities. In this paper, we review the effects of a specific government-sponsored commercial R&D program from various angles. We start by evaluating whether we find positive effects of subsidies on R&D investment and R&D employment. Then, we analyze how the observed effects of subsidies on R&D intensity and employment vary over time, vary if the firm receives also support from other sources, vary depending on how many supported projects a single firm has at the same time or vary if a firm gets support consecutively. Finally, we estimate the macroeconomic impact of these grants in terms of R&D employment. We conclude that (i) the policies are not subject to full crowding out, (ii) the treatments effects are stable over time, (iii) receiving subsidies from other sources in addition to the program under evaluation does not decrease the estimated treatment effect, and (iv) receiving grants repeatedly does not decrease the magnitude of the treatment effects either. Using a back-of-the envelope calculation, we estimate that, on average, five R&D jobs are created (or maintained) per supported project in the Flemish economy. |
| Keywords: | Subsidies; Innovation; Policy Evaluation; Non-parametric estimation |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2012-19&r=ino |
| By: | Shardul Agrawala; Cécile Bordier; Victoria Schreitter; Valerie Karplus |
| Abstract: | Innovation in technologies that promote mitigation and adaptation will be critical for tackling climate change. It can decrease the costs of policy measures and provide new opportunities for the private sector. However, most discussions of innovation have focused on mitigation, while little attention has been paid to innovation for adaptation. This paper uses agricultural crop biotechnology as a case study of innovative activity. The agricultural sector is considered to be particularly vulnerable to climate change, in addition to facing the pressures of meeting the demands of a rising world population. Innovation in plant breeding to develop crop varieties that are more resilient to climate change impacts is one of several possible adaptation options for agriculture. This paper neither advocates nor discourages the use of biotechnology, but focuses on providing estimates of the level and trends of innovation in this field. |
| Keywords: | innovation, agriculture, patents, climate change, adaptation, biotechnology, innovation, agriculture, brevets, changement climatique, adaptation, biotechnologie |
| JEL: | O39 Q16 Q54 |
| Date: | 2012–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:40-en&r=ino |
| By: | Ainura Uzagalieva (Centre of Applied Economics Studies of the Atlantic at the Department of Economics and Management, the University of the Azores, Portugal); Evžen Kočenda; Antonio Menezes |
| Abstract: | We analyze the role of innovation in the technological development of four new EU members: the Czech Republic, Hungary, Poland and Slovakia. For that purpose, we use a novel approach by modeling the empirical relationship between intra-industrial bilateral trade flows, which proxy the level of technological progress, and innovation expenditures within the context of a gravity model with a set of appropriate instrumental variables to account for the potential endogeneity of innovation to trade. We show that innovation efforts in high-tech industries exhibit a strong effect on the technological progress of the region and they are closely linked to foreign direct investment and multinationals. As foreign-owned subsidiaries become a part of the innovation systems and industrial structure of the host country they promote overall technological growth in the region. |
| Keywords: | foreign direct investment, innovation, imitation, international trade, European Union |
| JEL: | C51 F14 F21 O31 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:ost:wpaper:312&r=ino |
| By: | Montalvo, Carlos; Moghayer, Saeed |
| Abstract: | Innovation is currently seen as a cornerstone not only for economic development but also as an intrinsic human activity that could help to face the great challenges of human kind. Given the importance of innovation in the new European 2020 Strategy, measuring progress but also monitoring what drives innovation becomes crucial for policy development. Following upon this strategy the new European flag initiative “Innovation Union” called for a new “single” indicator on innovation. Currently the information infrastructure on innovation in Europe contains a number of indicators. Most of the current indicators at the national or sector levels use a performance theoretical framework based on an efficiency model of inputs and outputs. The last five editions of CIS have been a bastion of innovation policy research during the last decade. Despite this, CIS has been criticised for not having an umbrella framework that unifies its different underpinnings to explain what drives innovation to actual innovation and economic outcomes. In this paper we propose a framework that enables the theoretical and empirical linkages between the drivers of innovation to innovation performance via the integration of core features determining innovative behaviour in to a single composite. This index enables to assess the total propensity of firms to innovate and assess the relative innovation performance at the sector and country level. The approach adopted here to create the index overcomes long standing theoretical and methodological issues related to the reduction of complexity in a meaningful form, scope, aggregation, normalisation and validation of innovation composites. The empirical demonstration of the index was done using CIS4 data and the results validate the theoretical structure and robustness of the proposed model. This enables its replication for innovation policy analysis in different settings. The model underlying the proposed index provides not only a depiction of the efficiency of the innovation system but also a link to economic performance and to the factors that determine relative performance. |
| Keywords: | Innovation indicators; Innovation performance; innovation efficiency; innovation intensity; theory of planned behaviour; CIS; single indicator; composite indicators; sectoral innovation indicators; behavioral economics; psychological economics; |
| JEL: | D03 D7 C43 O3 |
| Date: | 2011–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:38002&r=ino |
| By: | Rõigas, Kärt |
| Abstract: | The purpose of the paper is to find out whether linkages between productivity and innovation are different among Estonian service sector sub-sectors. In this paper productivity is measured as value added per employee. An original approach toward measurement of productivity is used, decomposing it into three components: labour costs, depreciation and gross profit per employee. Four types of innovation are studied: product, process, organizational and marketing innovation. The empirical analysis is based on productivity data from the Estonian Business Register and innovation data from the Estonian Community Innovation Survey 5, covering the period between 2004 and 2006. Results based on Estonian service sectors reveal that in different sub-sectors different types of innovation are linked to productivity. Still, all linkages between innovation and productivity or its components are positive. There is one exception: among assisting services marketing innovation and gross profit are negatively associated with each other. -- |
| Keywords: | service sector,productivity,productivity components,four innovation types |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:opodis:201102&r=ino |
| By: | Steven Bond-Smith (University of Waikato) |
| Abstract: | We examine endogenous growth through vertical innovations in a two region model with partial regional and varietal knowledge spillovers. This paper extends the growth literature by adding a regional endogenous growth model with improvements in product quality, instead of a product variety engine for growth, where we account for partial knowledge spillovers in R&D. Starting with the quality ladders endogenous growth model we add traditional goods production by unskilled workers, location as a factor in R&D spillovers, migration of knowledge workers and vary the freeness of trade. Production of each manufactured variety is contestable through vertical innovation based on available knowledge and as a result, firms choose a location to maximise the productivity of R&D, maintain their niche monopoly and minimise transport costs. With contestability, knowledge spillovers provide for additional growth and the partial nature of spillovers causes an additional clustering effect encouraging agglomeration. Growth is highest when there is full agglomeration in one location, as knowledge spillovers are greater with manufacturing concentration. Agglomerated locations are reliant on local inter-varietal knowledge spillovers for growth while peripheral locations rely on trade and regional knowledge spillovers. In the long run, locations experience equal growth rates. If a location becomes agglomerated, it has higher long-run wages and higher growth rates during the transition to the long run. The model offers policy implications for lagging economies to improve inter-regional knowledge spillovers while agglomerated economies should be more concerned with business interaction within the region. Policies which reduce barriers to migration will increase long run growth rates by accelerating the transition to agglomeration. |
| Keywords: | endogenous growth; new economic geography; innovation; knowledge spillovers; agglomeration; quality ladders; creative destruction |
| JEL: | O41 R10 |
| Date: | 2012–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:12/02&r=ino |
| By: | Tamm, Dorel; Ukrainski, Kadri |
| Abstract: | Although systems of innovation approach is gaining popularity among researchers and policy-makers, it is still rather difficult to apply this approach to specific policy settings and designs, because the approach is too general and does not provide many direct suggestions for building up an innovation system. It is often pointed out that in catching-up countries the innovation policy is not aligned with the specific circumstances of the innovation systems, but copies similar policies in more developed countries instead. This article finds by analysing the functional side of Estonian national innovation system, that the functions involving the provision of knowledge inputs and constituents of the innovation system, but also support services for innovating firms rather than demand-side activities are recognized by local policy designers. We suggest that by aligning the structure of the innovation system, more coherent logic of public-private co-evolution and better alignment of respective innovation policy measures should be followed. By looking at individual functions, it is clear, that the demand-side activities of innovation policy can be used more to enhance innovation activities in a more targeted way. More generally, we find that the functions that public sector performs in a national innovation system, should be designed and developed carefully in a balanced way, which is especially important for a small catching-up country, where the risk to create misalignments in the system is larger. -- |
| Keywords: | innovation system,catching-up countries |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:opodis:201107&r=ino |
| By: | Bronwyn H. Hall; Christian Helmers; Mark Rogers; Vania Sena |
| Abstract: | We survey the economic literature, both theoretical and empirical, on the choice of intellectual property protection by firms. Our focus is on the tradeoffs between using patents and disclosing versus the use of secrecy, although we also look briefly at the use of other means of formal intellectual property protection. |
| JEL: | K11 L29 O34 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17983&r=ino |
| By: | Capellari, Saveria |
| Abstract: | Technology transfer or knowledge exchange? Which one of the two expressions better identifies the possible modes of interactions between Universities, market and firms? The paper addresses this question in the light of the advancements in the economic literature on the topic. It emerges that channels of interaction go far behind the technology transfer, including traditional output of university - scientific publications and graduates - and a variety of channels ranging from research in cooperation to consultancy. Moreover, it emerges that different channels are often complementary: a fact that has important implications for innovation policies and university long term strategies. The problem of the possible negative feed back of cooperation with private entities on production of open science by academics and on the traditional role of universities is the main concern of a growing stream of literature. Until now the results point, in a large majority, to a complementarity between academic research and market activities. Nonetheless, given the heterogeneity of academic production, and the possible different kinds of production functions, the conclusion can not be easily generalized. |
| Keywords: | University – industry interactions, knowledge transfer, economics of science, economics of innovation, University strategies |
| Date: | 2011–06 |
| URL: | http://d.repec.org/n?u=RePEc:tre:wpaper:3&r=ino |
| By: | Hinloopen, J. (University of Amsterdam); Smrkolj, G. (University of Amsterdam); Wagener, F.O.O. (University of Amsterdam) |
| Abstract: | Existing models of R&D are not easily reconciled with four observable aspects of R&D: initial technologies (“ideas”) need to be developed further, only a minority of initial ideas is successfully brought to the market, production and process innovations take place simultaneously (whereby, initially, there is no production at all), and process innovations are implemented for technologies that are destined to leave the market. We present a detailed bifurcation analysis for a dynamic model of R&D that captures these observations in one, unifying framework. As we provide a global analysis, we do not limit initial technologies to carry marginal costs that are below the choke price. We show that there always exists a critical value of initial marginal cost above which the firm does not initiate any (R&D) activity; the saddle-point steady state is never globally optimal. We also sketch some policy implications of our analysis. |
| URL: | http://d.repec.org/n?u=RePEc:ams:ndfwpp:11-11&r=ino |