nep-ino New Economics Papers
on Innovation
Issue of 2012‒05‒02
sixteen papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Innovation Barriers across Firms and Countries By Werner Hölzl; Jürgen Janger
  2. The Two Faces of R&D and Human Capital: Evidence from Western European Regions By Johanna Vogel
  3. The renaissance of the "renaissance man"? : specialists vs. generalists in teams of inventors By Eduardo Melero; Neus Palomeras
  4. Coordinating R&D activities in multinational companies: towards new tools and practices? By Lusine Arzumanyan; Ulrike Mayrhofer; Christopher Melin
  5. R&D and Aggregate Fluctuations By Artuç, Erhan; Pourpourides, Panayiotis M.
  6. Crowdsourcing patent application review to capitalize on innovation By Ghafele, Roya; Gibert, Benjamin; DiGiammarino, Paul
  7. Effectiveness and Efficiency of SME Innovation Policy By Foreman-Peck, James
  8. The Knowledge Multiplier By Mário Alexandre Patrício Martins da Silva
  9. Patent Oppositions as Competitive Tools: An Analysis of the Major Players in the European Market of White Goods By Alessandro STERLACCHINI
  10. The importance of responsible-innovation and the necessity of 'Innovation-care' By Xavier Pavie
  11. Environmental Innovations in Services. Manufacturing-Services Integration and Policy Transmissions By Giulio Cainelli; Massimiliano Mazzanti
  12. The importance of responsibleinnovation and the necessity of ‘Innovation-care’ By Pavie, Xavier
  13. Virtual R&D Teams: A potential growth of education-industry collaboration By Nader Ale Ebrahim; Shamsuddin Ahmed; Zahari Taha
  14. An Experiment on Protecting Intellectual Property By Joy A. Buchanan; Bart J. Wilson
  15. Heterogeneous product and process innovations for a multi-product monopolist under finite life-cycles of production technologies. By Bondarev, Anton A.
  16. Ideas Production in Emerging Economies By Luintel, Kul B; Kahn, Mosahid

  1. By: Werner Hölzl (WIFO); Jürgen Janger (WIFO)
    Abstract: This paper studies differences in the perception of innovation barriers between innovative and non-innovative firms for 18 EU countries. The countries are grouped by their distance to the technological frontier using Community Innovation Surveys for the years 2002-2004 and 2004-2006. The results show that non-innovators interested in innovation are much more likely to perceive barriers than non-innovators that are not interested in innovation activities. With regard to differences between country groups there is a clear indication that innovation barriers related to the availability of skilled labour, innovation partners and knowledge are more important for firms located in countries close to the frontier, while the opposite is true regarding the availability of external finance. Although the share of innovators decreases with the distance to the technological frontier, the share of barrier-related innovators increases. The results demonstrate the usefulness of the innovation barrier approach to understand the determinants of innovative activity at the firm level and to priority-setting within innovation policies.
    Keywords: Innovation barriers, Europe, innovation policy
    Date: 2012–04–25
    URL: http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2012:i:426&r=ino
  2. By: Johanna Vogel
    Abstract: This paper investigates two channels through which research and development (R&D) and human capital may affect regional total factor productivity growth in the manufacturing sector, using panel data on 159 EU-15 regions from 1992 to 2005. Based on the endogenous growth model of Griffith, Redding and Van Reenen (2003), we allow R&D and human capital to influence productivity growth both directly, reflecting own innovation, and indirectly, reflecting imitation of frontier technology. Further, the model allows for conditional convergence to a long-run level of TFP relative to the frontier. We also develop an extension that captures geographically localised technology spillovers. Our preferred system-GMM estimates provide evidence of a positive and significant direct effect of human capital, and a positive and significant indirect effect of R&D on productivity growth. This may be interpreted as lending support to the recent focus of EU regional policy on raising educational attainment and R&D expenditures, although their channels of influence appear to differ. Our results also suggest that TFP convergence has taken place over our sample period and that geographic distance to the technology frontier matters.
    Keywords: Total factor productivity, Convergence, Human capital, Research and development, European regions
    JEL: O30 O47 I25 C23
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:oxf:wpaper:599&r=ino
  3. By: Eduardo Melero; Neus Palomeras
    Abstract: Is there a role for the multifaceted Renaissance Man in modern team-intensive innovation activities? This paper argues that researchers with broad knowledge, also known as generalists, make an especially valuable contribution to innovation teams. Given the re-combinative nature of technological progress, innovation results depend crucially on the skilful matching of different pieces of knowledge. The presence of generalists in innovation teams makes the knowledge recombination process more effective, even if this comes at the cost of reduced knowledge depth. Moreover, typical barriers in team processes become less acute with the presence of generalists. We analyze the role of generalists versus specialists in innovation teams by tracking the trajectories of inventors in the electrical and electronics industry through their patenting activity. Our findings suggest that innovation teams with the contribution of generalists outperform those that rely on a diverse set of specialists
    Date: 2012–01
    URL: http://d.repec.org/n?u=RePEc:cte:idrepe:id-12-01&r=ino
  4. By: Lusine Arzumanyan (EA3713 - Centre de Recherche Magellan - Université de Lyon - Université Jean Moulin - Lyon III); Ulrike Mayrhofer (EA3713 - Centre de Recherche Magellan - Université de Lyon - Université Jean Moulin - Lyon III); Christopher Melin (EA3713 - Centre de Recherche Magellan - Université de Lyon - Université Jean Moulin - Lyon III)
    Abstract: Over the past few decades, scholars have shown a growing interest in the topic of innovation processes in multinational enterprises (MNE). Management systems of MNEs are complex, mainly because of the geographical dispersion of their activities. The internationalisation of the value-chain raises critical questions linked to the coordination of innovation processes. The objective of this paper is twofold: (1) to contribute to a better understanding of coordination mechanisms of innovation processes in multinational enterprises, and (2) to propose new tools and practices that can be used by MNEs to efficiently manage their innovation processes.
    Keywords: Research and development ; multinational company; coordination of activities.
    Date: 2011–09–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00690220&r=ino
  5. By: Artuç, Erhan; Pourpourides, Panayiotis M. (Cardiff Business School)
    Abstract: Using US data for the period 1959-2007, we identify sectoral productivity shocks and capital investment-specific shocks by employing a Vector Autoregression whose shock structure is disciplined by a general equilibrium model. Controlling for real and nominal factors, we find that capital investment-specific shocks explain 70 percent of fluctuations of R&D investment while R&D technology shocks explain 30 percent of the variation of aggregate output net of R&D investment (i.e. the output of the non-R&D sector). Technology shocks jointly explain almost all the variation of output in the R&D sector and 78 percent of the variation of output in the non-R&D sector.
    Keywords: Productivity Shocks; Investment-specific Shocks; R&D; VAR
    JEL: C13 C32 C68 E32 O3
    Date: 2012–01
    URL: http://d.repec.org/n?u=RePEc:cdf:wpaper:2012/2&r=ino
  6. By: Ghafele, Roya; Gibert, Benjamin; DiGiammarino, Paul
    Abstract: Worldwide filings of patent applications and the ensuing invalidation requests have seen staggering growth over the last decade. The result is increasing patent backlog, deteriorating patent quality and an uncertain economic environment. Patent application review is an integral part of the examination procedures undertaken by patent offices before a patent grant is given. Prior art search is a complex and time consuming part of this process. Crowdsourcing this critical stage is a valuable opportunity to render the patent application review process more efficient. This paper describes the crowdsourcing phenomenon and then details how it can aid patent review. The open source review pilot projects of the USPTO and JPO are presented in order to assess the potential of opening prior art search to the wider community of experts and practitioners. Public-private partnerships between patent offices and companies managing online review communities are proposed as a valuable opportunity to leverage the benefits of open review while providing sufficient incentives and quality assurances to yield useful contributions.
    Keywords: Patent application review; prior art search; crowdsourcing; public-private partnerships; patent quality
    JEL: O38 O34
    Date: 2011–06
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:38330&r=ino
  7. By: Foreman-Peck, James (Cardiff Business School)
    Abstract: This paper assesses UK innovation policy impact on a large, population weighted, sample of both service and manufacturing SMEs. By focussing on self-reported innovation the study achieves a wider coverage of the effects of SME innovation policy than possible with more traditional indicators. Propensity score matching indicates that SMEs receiving UK state support for innovation were more likely to innovate than unsupported comparable enterprises. Innovating enterprises are shown to have grown significantly faster over the years 2002-4 when other growth influences are appropriately controlled. Combining these two results and comparing the outlays on SME innovation policy with the estimated effects suggests that policy was efficient as well as effective. There is evidence that SME tax credits were expensive compared with earlier support instruments. But the overall high returns estimated suggest that, even in times of public spending cuts, persisting with SME innovation policy would be prudent.
    Keywords: Innovation; State Aid; SME; Policy Evaluation
    JEL: L25 R38
    Date: 2012–01
    URL: http://d.repec.org/n?u=RePEc:cdf:wpaper:2012/4&r=ino
  8. By: Mário Alexandre Patrício Martins da Silva (Faculdade de Economia, Universidade do Porto)
    Abstract: The paper develops a formal model of external knowledge and identifies the role of knowledge multipliers. Social interactions and knowledge multipliers play a crucial role in the determination of the rate of technological change. The analytical identification of the knowledge multiplier expression constitutes a key step in the appreciation of the crucial role of knowledge interactions. First, social considerations endogenously change the knowledge production function of each firm. The knowledge multiplier is the specific mechanism by means of which external knowledge contributes to enhance the innovative capacity of each firm. The production function of knowledge shows that the knowledge multiplier is larger, the stronger the cumulative positive effects of external knowledge on the generation of new knowledge. Second, social considerations explain the long-run dynamics of innovation. Social reinforcement and the knowledge multiplier determine the rise or fall of the rate of accumulation of technological knowledge.
    Keywords: External knowledge, social interactions, social multiplier, localized knowledge, innovation network, interactive learning, sustainable growth
    JEL: O30
    Date: 2012–04
    URL: http://d.repec.org/n?u=RePEc:por:fepwps:456&r=ino
  9. By: Alessandro STERLACCHINI (Universit… Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali)
    Abstract: This paper examines the role and determinants of patent oppositions between the main competitors in a given industry. Differently from previous studies, it is not concerned with high-tech firms but considers the major players in the European market of white goods. Thus, we are dealing with a medium-tech, scale intensive industry which, during the last two decades, has been characterised by a stagnating demand and decreasing unit values. As a result, the level of competition has increased, especially in terms of product quality and innovations. Among the consequences of that, the leading companies in Europe have not only intensified their patenting activities but also the usage of oppositions against the patents of direct competitors. By considering 961 patents granted by the EPO to the above companies over the period 2000-2005, the paper shows, among other things, that the probability of receiving an opposition from industry rivals does not depend on the patent quality or value. Accordingly, it contends that, at least in the industries of this kind, the extent and direction of patent oppositions are mainly associated with idiosyncratic corporate characteristics and strategies.
    Keywords: Patent oppositions, Strategic patenting, White good industry
    JEL: L68 O34
    Date: 2012–04
    URL: http://d.repec.org/n?u=RePEc:anc:wpaper:374&r=ino
  10. By: Xavier Pavie (PhD Programm - ESSEC Business School)
    Abstract: This study deals with responsibility as part of innovation. Innovation gives birth to development for the organizations by nature and can take several forms. In an economic context always more global and more competitive, innovation can only be at the core of any strategy. At the same time, the race for innovation in the world today raises new questions. These questions stem most of the time from the impossibility to forecast the result of the innovations: will it be successful or not? More exactly the questions innovation raise are also about its consequences on all the society, and not only on the economics, as Schumpeter assumed (Schumpeter, 1939). The consequences of innovation can stretch to the environment, to the society and to social topics. They are to be placed under the innovator's yoke as well. Thus the particularities of the responsible-innovation have to take into account these important questions and to be articulated according to different topics. Responsibleinnovation should indeed help to answer the problematic raised by the innovation. In parallel, the common acceptance of the word 'responsibility' raises some questions about its use and how it should be understood. What does 'responsibility' mean? Who is responsible and for what? Is it the shareholder, the customer, the supplier or the manager? These questions are at the core of our research; we try, by the notion of care, to provide an evolution of responsible-innovation. Contrary to it, the 'innovation-care' is about people and focuses on taking care of them. The purpose of the innovation-care is indeed to innovate while keeping up with the level of productivity necessary to any organization. It also has to take into account the essential interdependence between the innovator and the citizen, and to accept the role played by innovation in the individual's life within the City.
    Keywords: Innovation ; responsibility ; care ; innovator ; individuals ; performance ; interdependence ; ethics
    Date: 2012–01–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-00690404&r=ino
  11. By: Giulio Cainelli; Massimiliano Mazzanti
    Abstract: We investigate the factors behind the almost unexplored realm of environmental innovation adoption in services, using an Italian dataset derived from CIS2008. It has been suggested the environmental innovations in services does not necessarily lead to greater sustainability. If services are examined through the lens of manufacturing-services integration and push and pull effects, the picture of sustainability in relation to services is somewhat gloomier. We test whether this integration is relevant for environmental innovations and whether, taking account of differences in innovation in different services industries, environmental policies for manufacturing may transmit ‘induced innovation’ effects to services. We show that the ‘drivers’ of environmental innovation in carbon abatement and energy efficiency vary across services industries, and that cooperation, training, EMS and public funding play a key role. The integration of services and manufacturing through push and pull effects, and the environmental policy transmission effect from manufacturing to services generally do not seem to have a major influence on the diffusion of environmental innovations. Where an effect is significant, it would seem to result in more negative than positive effects on eco-innovations. It seems likely that the structural EI deficits in manufacturing firms are transmitted to services through manufacturing-services integration. This is a crucial consideration for management and policy.
    Keywords: environmental innovation; services; push and pull effects; EU emission trading
    JEL: C21 L60 O13 O30 Q20 Q58 F23
    Date: 2012–04–25
    URL: http://d.repec.org/n?u=RePEc:udf:wpaper:201208&r=ino
  12. By: Pavie, Xavier (ESSEC Business School)
    Abstract: This study deals with responsibility as part of innovation. Innovation gives birth to development for the organizations by nature and can take several forms. In an economic context always more global and more competitive, innovation can only be at the core of any strategy. At the same time, the race for innovation in the world today raises new questions. These questions stem most of the time from the impossibility to forecast the result of the <p> innovations: will it be successful or not? More exactly the questions innovation raise are also <p> about its consequences on all the society, and not only on the economics, as Schumpeter assumed (Schumpeter, 1939). The consequences of innovation can stretch to the environment, to the society and to social topics. They are to be placed under the innovator’s yoke as well. Thus the particularities of the responsible-innovation have to take into account these important questions and to be articulated according to different topics. Responsibleinnovation should indeed help to answer the problematic raised by the innovation. <p> In parallel, the common acceptance of the word ‘responsibility’ raises some questions about <p> its use and how it should be understood. What does ‘responsibility’ mean? Who is responsible <p> and for what? Is it the shareholder, the customer, the supplier or the manager? These <p> questions are at the core of our research; we try, by the notion of care, to provide an evolution of responsible-innovation. Contrary to it, the ‘innovation-care’ is about people and focuses on taking care of them. The purpose of the innovation-care is indeed to innovate while keeping up with the level of productivity necessary to any organization. It also has to take into account the essential interdependence between the innovator and the citizen, and to accept the role played by innovation in the individual’s life within the City.
    Keywords: Innovation; responsibility; care; innovator; individuals; performance; interdependence; ethics
    Date: 2012–01–01
    URL: http://d.repec.org/n?u=RePEc:ebg:essewp:dr-12003&r=ino
  13. By: Nader Ale Ebrahim (UM - University of Malaya - Department of Engineering Design and Manufacture, Faculty of Engineering, University of Malaya); Shamsuddin Ahmed (UM - University of Malaya - Department of Engineering Design and Manufacture, Faculty of Engineering, University of Malaya); Zahari Taha (UMP - Faculty of Manufacturing Engineering and Management Technology, University Malaysia Pahang - Education)
    Abstract: Introduction: With the advent of the global economy and high-speed Internet, online collaboration is fast becoming the norm in education and industry [1]. Information technology (IT) creates many new inter-relationships among businesses, expands the scope of industries in which a company must compete to achieve the competitive advantage. Information systems and technology allow companies to coordinate their activities in distant geographic locations [2]. IT is providing the infrastructure necessary to support the development of new collaboration forms among industry and education. Virtual research and development (R&D) teams represent one such relational form, one that could revolutionize the workplace and provide organizations with unprecedented levels of flexibility and responsiveness [3-4].
    Keywords: Virtual R&D teams, Collaboration, virtual teams, SMEs, Education
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-00690028&r=ino
  14. By: Joy A. Buchanan (Interdisciplinary Center for Economic Science, George Mason University); Bart J. Wilson (Economic Science Institute, Chapman University)
    Abstract: We conduct a laboratory experiment to explore whether the protection of intellectual property (IP) incentivizes people to create non-rivalrous knowledge goods, foregoing the production of other rivalrous goods. In the contrasting treatment with no IP protection, participants are free to resell and remake non-rivalrous knowledge goods originally created by others. We find that creators reap substantial profits when IP is protected and that rampant pirating is not uncommon when there is no IP protection. But most importantly, we find that IP protection in and of itself is neither necessary nor sufficient for generating wealth from the discovery of knowledge goods.
    Keywords: intellectual property, experimental economics
    JEL: C92 D89 K39
    Date: 2012
    URL: http://d.repec.org/n?u=RePEc:chu:wpaper:12-09&r=ino
  15. By: Bondarev, Anton A.
    Abstract: Current paper analyses the influence of the length of production technologies life-cycles on the relative intensity of investments of a multi-product monopolist into different types of innovations. This monopolist is developing new versions of the basic product continuously and simultaneously invests into the production technologies of all these new products. In the paper the finite character of these products' life-cycles is assumed. These finite life-cycles are treated for the purposes of the paper as patents which are granted to the monopolist for the production and upgrading of every new product he/she introduces into the market. It is demonstrated that under the condition of finite-time life-cycles of new products the monopolist prefers to invest into process innovations for already introduced products rather than introducing the new ones in relative measure. It is argued, that this is not the case under infinite life-cycles for all these products where the monopolist invests relatively the same amounts into both types of innovations.
    Keywords: Heterogeneous Innovations; Economic Dynamics; Multiproduct Monopoly; Product Life-cycle; Distributed Control
    JEL: L0 C02 O31
    Date: 2012–04–20
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:38243&r=ino
  16. By: Luintel, Kul B (Cardiff Business School); Kahn, Mosahid
    Abstract: We model ‘new ideas’ production in a panel of 17 emerging countries. Our results reveal: (i) ideas production is duplicative, (ii) externality associated with domestic knowledge stocks is of above unit factor proportionality, (iii) OECD countries raise the innovation-bar for emerging countries, (iv) there is no significant knowledge diffusion across emerging countries, and (v) growth in emerging countries appear far from a balanced growth path.
    Keywords: Ideas Production; Knowledge Diffusion; Panel Co-integration
    JEL: C2 O3 O4
    Date: 2012–03
    URL: http://d.repec.org/n?u=RePEc:cdf:wpaper:2012/6&r=ino

This nep-ino issue is ©2012 by Steffen Lippert. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.