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on Innovation |
| By: | Philippe Aghion; John Van Reenen; Luigi Zingales |
| Abstract: | We find that institutional ownership in publicly traded companies is associated with more innovation (measured by cite-weighted patents). To explore the mechanism through which this link arises, we build a model that nests the lazy-manager hypothesis with career-concerns, where institutional owners increase managerial incentives to innovate by reducing the career risk of risky projects. The data supports the career concerns model. First, whereas the lazy manager hypothesis predicts a substitution effect between institutional ownership and product market competition (and managerial entrenchment generally), the career-concern model allows for complementarity. Empirically, we reject substitution effects. Second, CEOs are less likely to be fired in the face of profit downturns when institutional ownership is higher. Finally, using instrumental variables, policy changes and disaggregating by type of owner we find that the effect of institutions on innovation does not appear to be due to endogenous selection. |
| Keywords: | Innovation, institutional ownership, career concerns, R&D, productivity |
| JEL: | O31 O32 O33 G20 G32 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:372&r=ino |
| By: | Thomas D. Jeitschko (Economic Analysis Group, Antitrust Division, U.S. Department of Justice); Nanyun Zhang (Economic Analysis Group, Antitrust Division, U.S. Department of Justice) |
| Abstract: | The conventional antitrust wisdom is that the formation of patent pools is welfare en- hancing when patents are complementary, since the pool avoids a double-marginalization problem associated with independent licensing. The focus of this paper is on (down- stream) product development and commercialization on the basis of perfectly comple- mentary patents. We consider development technologies that entail spillovers between rivals, and assume that nal demand products are imperfect substitutes. When pool formation facilitates information sharing and either increases spillovers in development or decreases the degree of product di erentiation, patent pools can adversely a ect welfare by reducing the incentives towards product development and product mar- ket competition|even with perfectly complementary patents. This modi es and even negates the conventional wisdom for some settings and suggests why patent pools are uncommon in science-based industries such as biotech and pharmaceuticals, despite there being frequent policy advocacy for them. |
| Keywords: | Patent Pools, Research and Development, Innovation, BioTechnology, Electronics |
| JEL: | L1 L2 L4 L6 D2 D4 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:doj:eagpap:201205&r=ino |
| By: | Heli Koski |
| Abstract: | The importance of data and different sources of knowledge in the development of new services and products, and further in the creation of new markets, has dramatically increased during the past few decades. This empirical study uses data from 531 Finnish firms to explore the determinants of generation of new data-based products and services. The empirical findings emphasize the role of a firm’s absorptive capacity and its ICT competence in data-based innovation. It seems that generally a firm’s external information sources play a more prominent role than internal information sources. Particularly customer involvement in innovation process positively relates to the production of new data-based products and services. The reported empirical findings further indicate that data-based product and service innovation tends to be rather strongly demand-driven. |
| Keywords: | firm performance, innovation, data-based products and services, ICT |
| JEL: | D22 L20 O31 |
| Date: | 2012–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:rif:dpaper:1272&r=ino |
| By: | Harhoff, Dietmar; Mueller, Elisabeth; Van Reenen, John |
| Abstract: | Innovation processes within corporations increasingly tap into international technology sources, yet little is known about the relative contribution of different types of innovation channels. We investigate the effectiveness of different types of international technology sourcing activities using survey information on German companies complemented with information from the European Patent Office. German firms with inventors based in the US disproportionately benefit from R&D knowledge located in the US. The positive influence on total factor productivity is larger if the research of the inventors results in co-applications of patents with US companies. Moreover, research cooperation with American suppliers also enables German firms to better tap into US R&D, but cooperation with customers and competitors does not appear to aid technology sourcing. The results suggest that the brain drain to the US can have upsides for corporations tapping into American know-how. -- |
| Keywords: | technology sourcing,knowledge spillovers,productivity,open innovation |
| JEL: | O32 O33 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fsfmwp:187&r=ino |
| By: | MOTOHASHI Kazuyuki |
| Abstract: | This paper uses patent filings as an indicator of innovation and investigates the relationship between innovation and firms' survival, based on the linked dataset of the Census of Establishment and Enterprise and the Institute of Intellectual Property (IIP) Patent Database for Japanese firms. We have constructed the indicators on the organization of innovative activities, such as external collaboration in inventions and the type of collaborative partners, and disentangle two competing factors, i.e., technological capability (positive influence on firms' survival) and commercial risk (negative influence on firms' survival). We found that the risk factor surpasses the capability factor, thus the impact of patenting on survival has a negative correlation with firms' survival at the end. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:12036&r=ino |
| By: | Michelle Mongo (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon) |
| Abstract: | This article makes a study of the influence of innovation determinants on their ability to innovate and the different types of innovation (technological and non-technological) developed within service sector. The statistics are provided from the community Innovation Survey. The estimation method is a probit with selection from the framework proposed by Heckman (1979) and refined by Van De Ven and Van Praag (1981). The first equation explains the innovative capacity and the second explicates the implementation of different types of innovation (technological and / or non-technological). The analysis focuses on the comparison of innovation behaviors in service sector and industry. The results demonstrate that the determinants of innovation ability are similar for service sector and industry and the differences are issued from different forms of innovation developed. More precisely, it comes from the orientation of each sector towards more or less technological innovation. The results bring up the question of the appropriateness of current policies of innovation especially in R&D' promotion. The author proposes to take into account the consideration of different types of activities and innovation for this policy and suggests to focus on the lowtechnological but innovative and non-technological activities like intellectual services. |
| Keywords: | Non-technological Innovation; Services; Community Innovation Survey |
| Date: | 2012–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00700457&r=ino |
| By: | Michelle Mongo (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,Université Jean Monnet, Saint-Etienne, F-42000, France); Corinne Autant-Bernard |
| Abstract: | This article makes a study of the influence of innovation determinants on their ability to innovate and the different types of innovation (technological and non-technological) developed within service sector. The statistics are provided from the community Innovation Survey. The estimation method is a probit with selection from the framework proposed by Heckman (1979) and refined by Van De Ven and Van Praag (1981). The first equation explains the innovative capacity and the second explicates the implementation of different types of innovation (technological and / or non-technological). The analysis focuses on the comparison of innovation behaviors in service sector and industry. The results demonstrate that the determinants of innovation ability are similar for service sector and industry and the differences are issued from different forms of innovation developed. More precisely, it comes from the orientation of each sector towards more or less technological innovation. The results bring up the question of the appropriateness of current policies of innovation especially in R&D’ promotion. The author proposes to take into account the consideration of different types of activities and innovation for this policy and suggests to focus on the lowtechnological but innovative and non-technological activities like intellectual services. |
| Keywords: | Non-technological Innovation, Services, Community Innovation Survey |
| JEL: | O31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1214&r=ino |
| By: | Pray, Carl E.; Nagarajan, Latha |
| Abstract: | Agricultural research and innovation has been a major source of agricultural growth in developing countries. Unlike most research on agricultural research and innovation which concentrated on the role of government research institutes and the international agricultural research centers of the Consultative Group for International Agricultural Research, this paper focuses on private sector research and innovation. It measures private research and innovation in India where agribusiness is making major investments in research and producing innovations that are extremely important to farmers. It also reviews Indian policies that influence research and innovation. This new data and policy analysis can provide India policy makers with a basis for policies that can strengthen the direction and impact of agricultural research and innovation in the future. Agricultural innovations in India have rapidly increased since the 1980s. Government data and surveys of seed firms show that from about 1990 to 2010 the number of new seed cultivars available to farmers in maize, wheat, and rice roughly doubled, while the number of cotton cultivars at least tripled. Biotechnology innovations went from zero in the 1990s to 5 genetically modified (GM) traits in hundreds of GM cotton cultivars by 2008. Pesticide registrations went from 104 in the period 1980–1989 to 228 during the period 2000–2010. Similar growth in innovations also occurred in the agricultural machinery, veterinary medicine, and agricultural processing industries. These innovations have come from foreign technology transferred into India as well as from in-country public and—increasingly—private research. Based on interviews with firms and data from annual reports, we find that private investment in agricultural research grew from US$54 million in 1994/95 to US$250 million in 2008/09 (in 2005 dollars). Growth in private research and development (R&D) expenditure was particularly rapid in the seed and plant biotechnology industry, which grew by more than 10 times between the mid-1990s and 2009. Private innovations have contributed to agricultural productivity and incomes. Research and innovation by private industry led to the boom in cotton exports and to rapid increases in exports of generic pesticides and agricultural machinery. Private hybrids of cotton, rice, maize, pearl millet, and sorghum increased yields over public hybrids, varieties, and landraces. Small farmers in some of the poorest regions of India—the semiarid tropics of central India and the rainfed rice regions of eastern India—get higher productivity with private hybrids. The increases in innovation and R&D were led by expanding demand for agricultural products, which increased demand for land-, labor-, and water-saving inputs. A second major factor was the economic liberalization that allowed large Indian corporations, business houses, and foreign firms to invest in agriculture and agribusiness. Firms' decisions to conduct research in India were also encouraged by strong public-sector research, which provided firms with increased opportunities to develop new products with scientists, such as hybrid cultivars. Finally, research was stimulated by the availability of new tools of science, such as biotechnology, and by the recent strengthening of intellectual property rights. |
| Keywords: | Agricultural R&, D, Agricultural research, Agricultural development, Private sector, private sector research, Technology transfer, Innovation, Innovation Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1181&r=ino |
| By: | César Alonso-Borrego; José I. Galán-Zazo; Francisco Javier Forcadell; José Ángel Zúñiga-Vicente |
| Abstract: | This survey examines the empirical literature on the relationship between public R&D subsidies and private R&D investment over the past five decades. The survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues. We aim to provide further explanations of the possible causes of that heterogeneity. In particular, we emphasise a set of issues that, in our view, are critical to understanding the potential effect of public R&D subsidies on private R&D spending. Special attention is paid to the dynamic aspects and composition of firm R&D, the constraints faced by the firm (such as financial constraints), and the amount and source of public subsidies. None of these issues have been investigated in depth. We formulate a set of research assumptions to guide future empirical research in this field. |
| Keywords: | Public subsidies, R&D investment, Innovation |
| JEL: | H54 L22 L52 O31 O38 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:we1215&r=ino |
| By: | Piacentino, Davide |
| Abstract: | This paper investigates sources of product or process innovation, such as investments in research and development, machinery, personnel training and management systems, by examining microdata from eight European countries. We pay particular attention to the effect of research and development in favouring the absorption of new technologies, i.e. the absorptive capacity. Significant positive effects of each source on both product and process innovations are found. Significant evidence of positive absorptive capacity emerges only in firms with low predicted probabilities of introducing innovation. |
| Keywords: | Innovation; Absorption; Microdata; European countries |
| JEL: | D21 O32 O31 |
| Date: | 2012–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39110&r=ino |
| By: | Mario Coccia (Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy) |
| Abstract: | The study here analyzes, across European countries, the relationship between labour and drivers of technological innovation, also considering the interaction of these variables with the structural indicator of the public debt. The main findings are: the fruitful effect of total public expenditure on education as a percentage of GDP and R&D intensity on employment rate, whereas an increase of general government consolidated gross debt has a negative effect for employment rate as well as for technology proxies. Empirical evidence provides some elements to discuss main economic policy implications from relationships between observed facts. |
| JEL: | J01 J08 I20 H63 O30 O33 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:csc:cerisp:201206&r=ino |
| By: | Alessandro Caiani (Department of Economics and Business, University of Pavia) |
| Abstract: | The paper presents an Agent-Based extension of Nelson-Winter model of schumpeterian competition. The original version did not provide any insight about the direction of firms’ innovative activities and of technological change as a whole. As a result, it lacked an explicit structure governing firms interaction and the shape of externalities. We address these criticisms by taking explicitly into account the structure of technology in use in the industry, that we shape as a directed network of nodes and links: nodes represent technological skills to be learnt by firms looking for ’new combinations’ and links represent their reciprocal interdependencies. The network is created in order to reflect the defining properties of Technological Paradigms and Technological Trajectories, as they emerge by evolutive-neoschumpeterian literature. Firms’ ability to learn technological skills through imitation of competitors generates spillover effects related to the process of diffusion of innovation. The basic model presented here focuses on a particular aspect of schumpeterian competition: the relationship between industry initial concentration and its overall innovative performance and, vice-versa, between innovation process and the evolution of industry structure over time. In this same perspective we also analyze how firms’ interactions and the structure of technology concur in determining the success or failure of an innovative strategy. Finally we argue that the model presented here might constitute a flexible framework worthy of further applications in the study of innovation process and technological progress. |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:pav:wpaper:176&r=ino |
| By: | Jan van Steen |
| Abstract: | This paper presents the results of the data collection across 18 participating countries, demonstrating that it is possible to produce new policy relevant indicators on public funding of R&D in addition to those envisaged in the OECD Frascati Manual. The initial findings of the data collection highlight interesting differences across countries in terms of their approaches to funding R&D. But before conclusions can be drawn on the effectiveness of the different country funding profiles, further work is needed in order to increase the reliability and comparability of the different indicators. |
| Date: | 2012–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2012/4-en&r=ino |
| By: | Mario Coccia (Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy); Ugo Finardi (Department of Chemistry and NIS - Nanostructured Interfaces) |
| Abstract: | The purpose of this paper is to measure and analyze the rate of scientific and technological advances of nano-technological research in biomedicine. The approach, based on models of growth, shows the current evolutionary trends of nano-research that may underpin future patterns of technological innovation in biomedicine. In particular, results show that biosensors, nanoparticles, quantum dots, carbon nanotube and nanomicelle have innovative applications in diagnostics and target therapies that have been generating a revolution in clinical practice. The present study also shows two main implications of determinants that have been supporting continuous application of nanotechnology in biomedicines such as the patterns of technological innovation driven by converging research fields and a learning process. These factors have been paving the way to innovative nanomedical drugs applied in biomedicine that lead to longer, better and healthier living of patients and therefore of societies. |
| JEL: | O30 C53 I10 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:csc:cerisp:201207&r=ino |
| By: | Dilek Seymen (Dokuz Eylül University); Baþak Gümüþtekin (Republic of Turkey Ministry of Economy) |
| Abstract: | This paper aims to measure trade competitiveness of Research and Development (R&D) intensive goods of Turkey in the European Union (EU) market, using different trade indices. Concentration Ratio (Michaely, 1958), Export-Import Commodity Composition Index (Muscatelli, 1991), Intra-Industry Trade Index (Grubel, Lloyd, 1971) and Sectoral-Bilateral Trade Intensity Ratios (Seymen, 2009) are calculated to analyze the technology composition of manufacturing goods trade between Turkey and the EU27. Revealed Comparative Advantage Index (Balassa, 1965), Marginal Intra-Industry Trade Index (Brulhart, 1994), and Sectoral-Bilateral Competitiveness Index (Seymen, 2009) are employed to gain insight about the bilateral competition between two parties. Thus, once the general situation related to the R&D intensive goods trade between Turkey and the EU is detected, it will be possible to draw some policy implications through a future study in the following phase, by identifying the value added structures, exterior input dependence and vertical-horizontal specialization levels of the goods revealed to have competitive advantage in this study. |
| Keywords: | R&D intensive goods trade, competitiveness, Turkey & EU Trade |
| JEL: | F10 F14 F15 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2012/24&r=ino |
| By: | Ernest Miguélez |
| Abstract: | In this paper, I aim to assess the influence of spatial mobility of knowledge workers on the formation of ties of scientific and industrial collaboration across European regions. Co-location has been traditionally invoked to ease formal collaboration between individuals and firms. Tie formation is costly and decreases as distance between the partners involved increases, making ties between co-located individuals more likely than between spatially separated peers. In some instances, highly-skilled actors might become mobile and bridge regional networks across long physical distances. The effect of trust and mutual understanding between members of a co-located community may well survive the end of their co-localisation, and therefore the formation of networks across the space may overcome long distances. In this paper I estimate a fixed effects logit model to ascertain whether there exists a ‘previous co-location premium’ in the formation of networks across European regions. The role of mobility in network formation has been lately discussed elsewhere, but, to my knowledge, barely empirically tested. |
| Keywords: | inventors’ mobility, technological collaborations, co-location, brain drain, panel data |
| JEL: | C8 J61 O31 O33 R0 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1208&r=ino |
| By: | Alessandro Caiani (Department of Economics and Business, University of Pavia); Antoine Godin (Department of Economics and Business, University of Pavia); Stefano Lucarelli (Department of Economics “Hyman P. Minsky”, University of Bergamo) |
| Abstract: | Schumpeter showed that the boom and bust cycles are intrinsically related to the functioning of the capitalist economy. These boom and bust cycles are inherent to the rise innovation. Our paper analyses innovation cycles in a stock flow consistent framework. It focuses on the essential role of internal and external finance in the emergence of a new technological paradigm. We present two models. The first one, as a tribute to Schumpeter’s work, follows strictly Schumpeter’s description of the business cycles induced by technological change, except for the financial side. The second model presents a multi-sectorial economy composed of consumption and capital goods industries, a banking sector and two households sectors: capitalists and wage earners. The stock flow consistent approach allows us to track the flows of funds resulting from the rise of innovators in the system. The dynamics of prices, employment and wealth distribution among the different sectors is analysed. Above all, the role of financial-innovation nexus is underlined. The paper builds the grounds for a wider analysis of schumpeterian structural changes described in Schumpeter (1934/1912) and Schumpeter (1964/1939) We find this particularly relevant to understand the impact and potential sources of instability of an ever more financialized monetary economy of production. |
| Keywords: | Schumpeter, Innovation, Stock Flow Consistent Models, Monetary Circuit |
| JEL: | O30 O4 E32 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:pav:wpaper:175&r=ino |
| By: | Giovanni Marin (IMT Lucca Institute for Advanced Studies) |
| Abstract: | This paper investigates the patterns of emission efficiency (value added per emission) growth of 23 manufacturing sectors in 12 European countries with a focus on five emissions (CO2, NOx, NMVOC, SOx and CO). Emission efficiency growth is expected to be triggered by improvements in the efficiency of frontier countries through the diffusion of better technologies to laggard countries. This effect is likely to differ according to the distance from the frontier country. Finally, the role of productivity patterns (Total Factor Productivity) and energy prices dynamics is assessed. Results based on the European NAMEA (National Accounting Matrix including Environmental Accounts) further merged with sector accounts highlight significant spillovers from leaders in emission efficiency and a general tendency to converge for laggard countries and sectors (except for NMVOC emission efficiency). Energy prices weakly induce improvements in emission efficiency, with the effect being generally stronger for sectors and countries farther away from the emission efficiency frontier. Finally, total factor productivity (TFP) is strongly correlated with emission efficiency while the distance from TFP frontier significantly harms emission efficiency growth. |
| Keywords: | patents, CDM model, eco-innovation, crowding out |
| JEL: | Q55 L60 O30 |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:3&r=ino |