nep-ino New Economics Papers
on Innovation
Issue of 2013‒01‒07
thirty papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Cross-country difference in R&D productivity Comparison of 11 European economies By Lööf, Hans; Savin, Maxim
  2. R&D, Socio-Economic Conditions and Regional Innovation in the United States By Crescenzi, Riccardo; Rodríguez-Pose, Andrés
  3. SAPPHO Revisited: Factors of Innovation Success in Knowledge-Intensive Enterprises in Central and Eastern Europe By Slavo Radosevic; Esin Yoruk
  4. Patent Laws and Innovation: Evidence from Economic History By Petra Moser
  5. Innovative capability and financing constraints for innovation: More money, more innovation? By Hottenrott, Hanna; Peters, Bettina
  6. Dulling the Cutting Edge: How Patent-Related Policies and Practices Hamper Innovation in China By Prud'homme, Dan
  7. The Impact of R&D Collaboration Networks on the Performance of Firms and Regions: A Meta-Analysis of the Evidence By Gunnar Pippel
  8. Cost Innovation: Schumpeter and Equilibrium. Part 2: Innovation and the Money Supply By Martin Shubik; William D. Sudderth
  9. National innovation systems: Can they be copied? By Varblane, Urmas
  10. The Study of Time-Space Dynamics of Knowledge with Innovation Biographies By Anna Butzin; Brigitta Widmaier
  11. Overseas R&D by Multinationals in Foreign Centers of Excellence By Fors, Gunnar; Zejan, Mario
  12. Carbon Taxes, Path Dependency and Directed Technical Change: Evidence from the Auto Industry By Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John
  13. Rural Innovation - Crucial, But Rarely Systemic By Freshwater, David
  14. Too Much of a Good Thing: The Role of Alliance Portfolio Diversity for Innovation Output in the Biotechnology Industry By Wilfried Zidorn; Marcus Wagner
  15. Innovation Strategies and Productivity in the Polish Services Sector in the light of CIS 2008 By Wojciech Grabowski; Krzysztof Szczygielski
  16. The Impact of Host Countries' University Research and University-Industry Collaboration on the Location of Research and Development: Evidence from Japanese multinational firms By SUZUKI Shinya; Rene BELDERBOS; KWON Hyeog Ug; FUKAO Kyoji
  17. Impact of Production Linkages on Industrial Upgrading in ASEAN, the People’s Republic of China, and India : Organizational Evidence of a Global Supply Chain By Tomohiro Machikita; Yasushi Ueki
  18. Patenting in family firms By Alessandra Tognazzo; Federica Destro; Paolo Gubitta
  19. Towards a Richer Specification of the Exploration/Exploitation Trade-off: Hidden Knowledge-based Aspects and Empirical Results for a Set of Large R&D-Performing Firms By Schubert, Torben; Neuhaeusler, Peter
  20. Retail Payment Systems: Competition, Innovation, and Implications By Wilko Bolt
  21. The Impact of R&D Activities on Exports of German Business Services Enterprises: First evidence from a continuous treatment approach By Joachim Wagner
  22. Subsidy and networking: The effects of direct and indirect support programs of the cluster policy By Nishimura, Junichi; Okamuro, Hiroyuki
  23. The Impact of R&D Activities on Exports of German Business Services Enterprises: First evidence from a continuous treatment approach. By Vogel , Alexander; Wagner, Joachim
  24. Innovation Economy, Productive Public Expenditures and Economic Growth By Oscar Afonso; Sara Monteiro; Maria Thompson
  25. Implementing Grassroots Innovation in a Large Firm: A Conceptual Framework and In-Depth Case Study By Betz, U.A.K.; Camacho, N.M.A.; Gerards, M.; Stremersch, S.
  26. Klimawandel und betriebliche Innovationsprozesse By Wilfried Ehrenfeld
  27. How To Kill Inventors: Testing The Massacrator© Algorithm For Inventor Disambiguation By Michele PEZZONI (University of Milano-Bicocca - KiTES-Università Bocconi - Observatoire des Sciences et des Techniques); Francesco LISSONI (GREThA, CNRS, UMR 5113 - KiTES); Gianluca TARASCONI (KiTES, Università Bocconi)
  28. Competitiveness, innovation and regional development. The case of the Visegrad Group countries By Anna Golejewska
  29. Patent litigation settlement in Germany: Why parties settle during trial By Cremers, Katrin; Schliessler, Paula
  30. Resource Curse or Destructive Creation: A Tale of Crony Capitalism in Transition By Quan Hoang Vuong; Nancy K. Napier

  1. By: Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Savin, Maxim (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: This paper examines differences in R&D productivity across a group of geographically adjacent economies. By distributing close to 355,000 patents across 18 industries in 11 countries, we find clear and systematic country patterns when taking into account differences in industrial structure, institutional arrangements and R&D intensity. This finding supports the argument that innovation systems are important for an industry’s capacity to generate new patentable knowledge.
    Keywords: Patent; R&D; Innovation; international comparison; panel data
    JEL: L60 O33 O50
    Date: 2012–12–19
  2. By: Crescenzi, Riccardo; Rodríguez-Pose, Andrés
    Abstract: This paper looks at the genesis of innovation in the United States from a territorial perspective. The analysis aims to disentangle the impact of local R&D expenditure from other contextual conditions supportive of the process of innovation. Particular emphasis is devoted to the role of socio-economic factors and systems of innovation conditions (‘social filter’ conditions) and to their impact on the returns of R&D expenditure in different territorial contexts. The empirical analysis is based on a Regional Knowledge Production Function approach, leading to an empirical model estimated by means of panel data analysis for the period between 1994 and 2007 at the US Bureau of Economic Analysis (BEA)-Economic Area level. The results unveil the complexity of the territorial dynamics of innovation of the US. Local R&D investments are important predictors for regional innovative performance and their impact is highly localized. However, social filter conditions are fundamental for the productivity of innovation efforts.
    Keywords: Innovation; R&D; Socioeconomic conditions; Systems of innovation; United States
    JEL: O32 O33 R11 R12
    Date: 2012–12
  3. By: Slavo Radosevic; Esin Yoruk
    Abstract: This research investigates the mutual and diverging factors for successful and less successful innovations in software and manufacturing of machine tools in Central and Eastern Europe (CEE). We apply univariate and multivariate analyses on 115 indicators by revisiting the seminal SAPPHO project based on the analysis of pairs of innovations and conducted at SPRU – Science and Technology Policy Research during the 1970s. We aim to identify principal factors influencing firm success in innovation in the context of CEE and compare our results to those of SAPPHO and see whether any changes took place during the last 40 years in this context after several decades of globalization. Our initial findings from a database of 90 innovations and 45 pairs of innovations – introduced onto the market during the period 2007-2010 - from 51 CEE enterprises demonstrate that, in particular, user and market-driven factors differentiate successful innovations from less successful ones. Our results fully confirm the continuing relevance of SAPPHO results and methodology. Successful innovators have stronger user orientation and better understanding of market demand. Although, CEECs are catching up economies, continuous and strategic R&D and innovation collaboration is essential to generation of greater commercial success from innovation activities. Given the catching-up character of the CEECs this is surprising result which may reflect knowledge-intensive nature of two sectors which form the basis of our sample. Results of this research clearly demonstrate that orientation of the CEEC innovation policies is inconsistent with the characteristics and behaviour of successful innovators.
    JEL: O32
    Date: 2012
  4. By: Petra Moser
    Abstract: What is the optimal system of intellectual property rights to encourage innovation? Empirical evidence from economic history can help to inform important policy questions that have been difficult to answer with modern data: 1) Does the existence of strong patent laws encourage innovation? And 2) May patent laws influence the direction – as opposed to the rate – of technical change? Economic history can also help to shed light on the effectiveness of policy tools that are intended to address problems with the current patent system: 3) How do patent pools, as a mechanism to mitigate litigation risks, influence the creation of new technologies? 4) Will compulsory licensing, as a mechanism to improve access to essential innovations in developing countries, discourage innovation in the developing countries? This essay summarizes results of existing research and highlights promising areas for future research.
    JEL: K0 L24 L4 N0 O3 O31 O33 O34 Q16 Q55
    Date: 2012–12
  5. By: Hottenrott, Hanna; Peters, Bettina
    Abstract: This study presents a novel empirical approach to identify financing constraints for innovation based on the concept of an ideal test (Hall 2008). Firms were offered a hypothetical payment and were asked to choose between alternatives of use. If they selected additional innovation projects, they must have had some unexploited investment opportunities that were not profitable using more costly external finance. We attribute constraints for innovation not only to lacking financing, but also to firms' innovative capability. Econometric results show that financial constraints do not depend on the availability of internal funds per se, but that they are driven by innovative capability. --
    Keywords: innovation,financing constraints,innovative capability,multivariate probit models
    JEL: O31 O32 C35
    Date: 2012
  6. By: Prud'homme, Dan
    Abstract: This study’s statistical analysis shows that patent quality and innovation in China deserve improvement, and an in-depth legal, management science, and economic analysis in the study shows that various patent-related policies and practices actually hamper patent quality and innovation in China. Over 50 recommendations for reform are provided. The study is divided into four chapters, summaries of which are as follows: Chapter 1: Although China became the world leader in quantity of domestically filed patent applications in 2011, the quality of these patents needs improvement. Also, while certain innovation in China is rising, the country’s actual innovation appears overhyped by some sources. Chapter 2: There appears to be an overly heavy focus on government-set quantitative patent targets in China, which can hamper patent quality and innovation. This overemphasis involves over 10 national-level and over 150 municipal/provincial quantitative patent targets, mostly to be met by 2015, which are also linked to performance evaluations for SoEs, Party officials and government ministries, universities and research institutes, and other entities. Chapter 3: China has a wide-range of other policies, many of which are at least partially meant to encourage patents, that can actually discourage quality patents, and highest-quality patents in particular, and innovation. Examples of these policies include a variety of measures with requirements for “indigenous intellectual property rights” that are linked to financial incentives (many of which are unrelated to government procurement); a range of other government-provided financial incentives for patent development (e.g. certain patent filing subsidies); inappropriate inventor remuneration rules; discriminatory standardisation approaches; and a wide range of others. Chapter 4: There are a host of concerns surrounding rules and procedures for patent application review and those for enforcement of patent disputes that can hamper building of quality patents and innovation in China. These include concerns about abuse of patent rights, difficulties invalidating utility models, and a wide range of other issues.
    Keywords: China's innovation; indigenous innovation policies; innovation incentives; patent quality; China's patent targets; China's patent policy; patent enforcement
    JEL: O38 P48 O33 O32 K11 O3 K2 L51 K3 O34 O2 O39 D23 D03 O31
    Date: 2012–08
  7. By: Gunnar Pippel
    Abstract: Innovation is the result of an interactive process. Knowledge-intensive interactions among different partners are associated with a variety of advantages and disadvantages for the actors involved. Therefore, a rich body of literature investigating the impact of R&D collaboration networks on the innovation performance of firms and regions has developed over the last two decades. Those studies come to different results. The aims of this paper are manifold. First, the paper summarizes the results of the relevant literature. Second, a brief overview of the established methods and approaches used in the literature to investigate this research question is given. The third objective is to answer the question whether the achieved results in the literature are predetermined by the employed methods. Finally, relevant gaps for further research are identified. To answer these questions a meta-analysis of the relevant literature is conducted. This study shows that knowledge-intensive interactions have a rather positive impact on the performance of firms and regions. There is also evidence that the employed methods and approaches used in the literature to investigate this research question predetermine the outcome of the research.
    Keywords: innovation, collaboration, network, performance, meta-analysis
    JEL: O32 O33 R10 R11
    Date: 2012–12
  8. By: Martin Shubik (Cowles Foundation, Yale University); William D. Sudderth (University of Minnesota)
    Abstract: The control structure over money and real assets is considered in the process of cost innovation. The work here contrasts with the first part of this paper where the emphasis was on the physical aspects of innovation. Here the emphasis is primarily on the money supply aspects of innovation. We conclude with observations on evaluation and the locus of control in the process of innovation.
    Keywords: Cost innovation, Financial control, Circular flow
    JEL: D24 G32
    Date: 2012–01
  9. By: Varblane, Urmas
    Abstract: This chapter discusses the application of the national system approach in the catching up economies. It criticizes the assumption that there exists an optimal one-sizefits-all national innovation system model. The example is the Estonia-Finland case, in which Finland's national innovation system is being applied to Estonia. We argue that innovation is path dependent and that factors such as distance from the current technological frontier (latecomer or frontrunner) and different national knowledge bases must be considered when developing a national innovation system for a specific country. The aim of the chapter is thus two-fold: 1) we are interested in how the concept of innovation is presented and reproduced within the national context and 2) exploring the adverse effects of (re)producing National Innovations Systems in an uncritical and unreflexive manner. --
    Keywords: National Innovation System,Copy,Estonia
    Date: 2012
  10. By: Anna Butzin (Institute for Work and Technology Germany); Brigitta Widmaier (Institute for Work and Technology Germany)
    Abstract: The paper presents the methodology of Innovation Biographies that has been designed to study the time-space dynamics of knowledge and ways of knowledge combination in innovation processes. Innovation Biographies allow capturing relationships, contextual settings and different kinds of knowledge and enable insights into the evolvement and development of innovations. By following the process of creation with specific interviewing methods and triangulation, the biography of an innovation is reconstructed including the evolution of related knowledge. Data collection is able to transcend sectoral as well as local, regional or national categories and sheds light on cross-sectoral knowledge combinations and its multi-scalar reach.
    Keywords: Innovation Biographies, knowledge dynamics, knowledge combinations, time-space paths, multi-level view
    JEL: D83 O12 O31 R11
    Date: 2012–12–19
  11. By: Fors, Gunnar (Research Institute of Industrial Economics (IFN)); Zejan, Mario (Stockholm School of Economics)
    Abstract: This paper examines the determinants of overseas R&D by Swedish multinationals. Our empirical results indicate that the location of R&D abroad to a large extent is motivated by the need to adapt products and processes to conditions in the foreign markets where the firms operate. However, we also find that the MNEs tend to locate their R&D in host countries which are relatively specialized technologically in the firms' own areas. This finding may suggest that one additional motive to locating R&D abroad is to gain access to knowledge in foreign "centers of excellence" and benefit from localized spillovers.
    Keywords: Overseas R&D; Technology Sourcing; Multinationals
    JEL: F23 O32
    Date: 2012–12–28
  12. By: Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John
    Abstract: Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow clean to overtake dirty technologies.
    Keywords: automobiles; Climate Change; Directed Technical Change; Innovation
    JEL: L62 O13 O3
    Date: 2012–12
  13. By: Freshwater, David
    Abstract: Innovation is largely held to be unlikely in rural regions. This reflects the current emphasis on regional innovations systems that are driven by large expenditures on formal science based activity that results in patentable outcomes. From this metric the observation about rural innovation is largely true. However, a broader concept of innovation, which includes the actions of individual inventors/entrepreneurs opens the possibility of rural innovation. Not only do we see significant innovation in rural regions, some of these innovations have been globally disruptive and led to major changes in important industries. For rural regions innovation can be a key driver of productivity since the success of a single firm can play a major role in eh economic growth of the region. Fostering entrepreneurship provides a way for rural regions to also increase the level of innovation.
    Keywords: rural development, innovation, economic growth, entrepreneurship, productivity, Community/Rural/Urban Development, Production Economics, Productivity Analysis, L260.0310, R110, R120,
    Date: 2012
  14. By: Wilfried Zidorn; Marcus Wagner
    Abstract: The purpose of this paper is to show the impact of heterogeneous partners in a biotechnology firm’s alliance portfolio on innovation output. Previous literature has stressed that investments into the heterogeneity of partners in an alliance portfolio is more important than just engaging in multiple collaborative agreements. The analysis of a unique panel dataset of 20 biotechnology firms and their 8502 alliances suggests that engaging in many alliances in general has a positive influence on a firms innovation output. Furthermore, maintaining diverse alliance portfolios has an inverted U-shaped influence on a firm’s innovation output, as managerial costs and complexity levels become too high.
    Keywords: Alliances; alliance portfolio; biotechnology; innovation
    Date: 2012
  15. By: Wojciech Grabowski; Krzysztof Szczygielski
    Abstract: Industry - and firm-level research into both innovations and productivity has long been limited to manufacturing. With this paper, we aim to contribute to the stream of literature that aims at extending the scope of such investigations to the services industry. To this end we analyze the innovation strategies in several service sectors in Poland in 2008 and examine their relationship to productivity. Our results show that service firms differ considerably in their innovation strategies, but that most of those strategies lead to productivity gains.
    Keywords: Private sector development, innovation and knowledge-based economy, Europe, strategy of innovation, Poland
    JEL: L80 O31 L25
    Date: 2012–12
  16. By: SUZUKI Shinya; Rene BELDERBOS; KWON Hyeog Ug; FUKAO Kyoji
    Abstract: We examine the impact of the strength of host countries' university research and university-industry collaboration on the propensity of Japanese multinational firms to conduct research and development (R&D) activities in these countries. We consider heterogeneous effects based on the type of R&D activity: basic research, applied research, and development for local markets and for global markets. Drawing on official survey data on R&D facilities of 498 Japanese multinational firms in 24 host countries, we find support for the notion that the strength of university research increases the probability that firms conduct R&D in a host country. Applied research activities are attracted to countries with relatively intensive university-industry collaboration. Moreover, firms from high-tech industries respond significantly more strongly to the presence of university research than those from low-tech industries.
    Date: 2012–12
  17. By: Tomohiro Machikita (Asian Development Bank Institute (ADBI)); Yasushi Ueki
    Abstract: This paper presents a simple model of industrial upgrading as a result of backward and forward information linkages between upstream and downstream relations. It also serves as an empirical investigation of the impact of mutual knowledge exchange on the knowledge production function using data on firms' self-reported customers and suppliers. Evidence from interconnected firms in Indonesia, Thailand, Philippines, and Viet Nam suggests that there are strong spillover effects between downstream and upstream firms in terms of international standard certification. The degree of product and process innovation is quite diverse across manufacturing firms within a local supply chain and within a global supply chain. Firms are likely to achieve product innovation if they have customers in foreign countries. Customers in Japan and the People's Republic of China play an important product innovation role for firms in Association of Southeast Asian Nations (ASEAN) economies, and customers in the United States or Europe play an important industrial upgrading role in connecting ASEAN firms with the global market.
    Keywords: production linkages, industrial upgrading, ASEAN, PRC, India, global supply chains, upstream and downstream relations, backward and forward linkages, product and process innovation
    JEL: O31 O32 R12
    Date: 2012–11
  18. By: Alessandra Tognazzo (University of Padova); Federica Destro (University of Padova); Paolo Gubitta (University of Padova)
    Abstract: In this paper we analyze patenting activities of family businesses, as compared to non-family ones. The main question is whether family business patent more or less. Then, we also analyze the composition of the inventor group and patent characteristics. To investigate these issues we analyzed a sample of 234 Italian businesses. We find some evidence that family firms differ in their patenting strategy from non-family ones.
    Keywords: family business, patenting, innovation.
    Date: 2012–12
  19. By: Schubert, Torben (CIRCLE, Lund University); Neuhaeusler, Peter (ISI-Fraunhofer, Germany)
    Abstract: In this paper we describe a richer framework characterizing the trade-off between exploration and exploitation with respect firm performance. We devise a model that complements the notion of organizational learning as a process of inferential learning from the past with an explicit incorporation of a knowledge/information-related theory. Based on this and an international panel data set of large R&D performing firms, we can show empirically that a firm’s innovation activities affect its growth perspectives and its asset base differently, depending on the degree of exploitation/exploration. We also show that competitors’ R&D has important diverging effects on other firms which again depend on the degree of exploitation/exploration. Finally, we demonstrate the mediating role of environmental risk. We therefore argue that the trade-off between exploration and exploitation has (at least) three constituent dimensions: an internal dimension relating to performance in terms of increasing sales growth and preservation of the asset base, an external competitive dimension, and a contingency dimension relating to environmental factors such as risk. We conclude that the trade-off between exploration and exploitation can only be fully understood, if all three components are taken into account simultaneously.
    Keywords: Firm performance; exploration; exploitation; innovation; growth
    JEL: M00
    Date: 2012–04–10
  20. By: Wilko Bolt
    Abstract: Efficient payment services underpin the smooth operation of the economy. Competition and innovation are key drivers for payment market efficiency in both the short and long run. This paper gives an overview and tries to assess the key determinants that affect pricing, competition and the incentives to innovate in the payment market. While the payment landscape is changing rapidly, it is not yet clear what business model will survive.
    Keywords: Payments; pricing; competition; innovation
    JEL: L11 G21 C21
    Date: 2012–12
  21. By: Joachim Wagner (Leuphana University Lueneburg, Germany)
    Abstract: This study uses newly available representative data from German business services firms and a continuous treatment approach based on the generalized propensity score to test for a causal effect of R&D activities (measured by the share of engineers and natural scientists in all employees) on the share of exports in total sales. We find evidence for a positive and statistically significant but small causal effect. This result is in line with the (non-causal) results reported in Vogel and Wagner (2012) based on regression models with and without control for unobserved time-invariant firm characteristics. The bottom line, then, is that R&D activity does matter for success of German business services firms on export markets – but not much.
    Keywords: Innovation, export, business services, Germany
    JEL: F14
    Date: 2012–12
  22. By: Nishimura, Junichi; Okamuro, Hiroyuki
    Abstract: Industrial clusters have attracted considerable attention worldwide for their expected contribution to regional innovation. Recently, policymakers in various countries have developed specific cluster policies. However, there exist few empirical studies on cluster policies. Focusing on the Industrial Cluster Project (ICP) in Japan initiated by the Ministry of Economy, Trade and Industry in 2001, we address two research questions on the support programs of the cluster policies: if the project participants who exploit various support programs are more successful in network formation within the cluster than others, and which kind of support program contributes to firm performance. We pay special attention to the differences between direct R&D support and indirect networking/coordination support. The estimation results, which are based on recent original survey data, suggest that cluster participants who exploit support programs (especially indirect support measures) expand the industry-university-government network after participating in the ICP. Moreover, we find that not every support program contributes to firm performance; firms should therefore select the program that is most aligned with their aims. Indirect support programs have an extensive and strong impact on output whereas direct R&D support has only a weak effect.
    Keywords: cluster policy, industrial cluster, R&D support, subsidy, networking
    JEL: O25 O38 R11
    Date: 2012–12
  23. By: Vogel , Alexander (Leuphana University Lueneburg); Wagner, Joachim (Leuphana University Lueneburg and CESIS, Stockholm)
    Abstract: This study uses newly available representative data from German business services firms and a continuous treatment approach based on the generalized propensity score to test for a causal effect of R&D activities (measured by the share of engineers and natural scientists in all employees) on the share of exports in total sales. We find evidence for a positive and statistically significant but small causal effect. This result is in line with the (non-causal) results reported in Vogel and Wagner (2012) based on regression models with and without control for unobserved time-invariant firm characteristics. The bottom line, then, is that R&D activity does matter for success of German business services firms on export markets – but not much.
    Keywords: Innovation; export; business services; Germany
    JEL: F14
    Date: 2012–12–19
  24. By: Oscar Afonso (Universidade do Porto - CEFUP); Sara Monteiro (Nice Sophia Antipolis University - CEMAFI); Maria Thompson (University of Minho - NIPE)
    Abstract: Innovation is the main engine of growth in an increasing number of economies. Innovation economies are, according to the Quadruple Helix (QH) Innovation Theory, sustained by four pilars – Firms, Academia, Government and Consumers –, all operating in a systemic, interactive environment. We provide a model that gives analytical body to the QH theory and links formally innovation to economic growth. We aim to emphasise the equally important roles of the four helices sustaining an innovation economy and its long run growth. In particular, given the downwards pressure on Government expenditures, we analyse the effects of an increase in public expenditures on economic growth, which we find positive in the short, medium and long-run.
    Keywords: Innovation Economy, Consumers, Quadruple Helix, Productive Public Expenditures, Economic Growth
    JEL: O10 O31 C63
    Date: 2012
  25. By: Betz, U.A.K.; Camacho, N.M.A.; Gerards, M.; Stremersch, S.
    Abstract: In order to promote the generation of market breakthroughs and disruptive innovation, organizations increasingly promote grassroots innovation, i.e. the emergence of innovative ideas from their whole employee base. Despite this surge in interest in grassroots innovation, there is a lack of guidance on how organizations should design and implement grassroots innovation programs. A key challenge faced by organizations promoting grassroots innovation is how to motivate the right employees to submit their best ideas and persist in their quest to transform such ideas in successful new businesses. In this paper, we draw on self-determination theory (SDT) to propose a conceptual framework that organizations can use to design effective grassroots innovation programs. We offer an in-depth understanding of how top-management support and the mechanisms behind grassroots innovation programs (e.g., idea sourcing, team formation, team/idea selection and training/coaching) influence employees’ motivation to submit their best ideas and, consequently, the success of grassroots innovation programs. We argue, in line with SDT, that successful grassroots innovation programs need to promote employees’ intrinsic motivation for innovation by satisfying three innate human needs: competence, autonomy and relatedness. Through an in-depth case study (the Innospire program at Merck), we provide evidence that support our propositions and discuss how organizations can successfully implement the proposed framework.
    Keywords: corporate entrepreneurship;self-determination theory;grassroots innovation;in-depth case study
    Date: 2012–12–21
  26. By: Wilfried Ehrenfeld
    Abstract: This discussion paper provides the contextual framework of the cumulative disser-tation on “Climate Change and Corporate Innovation Processes” at the Technical University of Dresden. It consists of six already published papers and articles. Because of the present public discussion on climate change, European industrial companies face new requirements. This mainly includes new claims, which are imposed on them by the enterprises’ operational environment. One way to respond to these new claims is adaptation through innovation. The overall objective of this thesis is to investigate how the perception of climate change on the part of stakeholders affects corporate innovation processes. In this context, these issues are examined both theoretically and empirically. The thesis thus contributes to various literary strands in the area of “entrepreneurial strategies for adapting to climate change.”
    Keywords: climate change, innovation, CO2, EU ETS, risk
    JEL: Q55 O33 O38 Q54 O31
    Date: 2012–12
  27. By: Michele PEZZONI (University of Milano-Bicocca - KiTES-Università Bocconi - Observatoire des Sciences et des Techniques); Francesco LISSONI (GREThA, CNRS, UMR 5113 - KiTES); Gianluca TARASCONI (KiTES, Università Bocconi)
    Abstract: Inventor disambiguation is an increasingly important issue for users of patent data. We propose and test a number of refinements to the Massacrator© algorithm, originally proposed by Lissoni et al. (2006) and now applied to APE-INV, a free access database funded by the European Science Foundation. Following Raffo and Lhuillery (2009) we describe disambiguation as a 3-step process: cleaning&parsing, matching, and filtering. By means of sensitivity analysis, based on MonteCarlo simulations, we show how various filtering criteria can be manipulated in order to obtain optimal combinations of precision and recall (type I and type II errors). We also show how these different combinations generate different results for applications to studies on inventors\' productivity, mobility, and networking. The filtering criteria based upon information on inventors\' addresses are sensitive to data quality, while those based upon information on co-inventorship networks are always effective. Details on data access and data quality improvement via feedback collection are also discussed.
    Keywords: patent data, inventors, name disambiguation
    JEL: C15 C81 O34
    Date: 2012
  28. By: Anna Golejewska (Faculty of Economics, University of Gdansk)
    Abstract: The paper relates to factors determining regional competitiveness in Poland, the Czech Republic, Hungary and Slovakia - the Visegrad Group. The study starts from a comprehensive survey of the literature on regional competitiveness and the potential effects of innovation. The theoretical section is supplemented by empirical one. The aim of the empirical analysis is to investigate the regional diversity of innovativeness and competitiveness in the group of 35 regions (NUTS 2 level) over the period 2001-2008. It is based on one data source: Eurostat Regional Statistics. I applied two classical methods of cluster analysis. The results of non-hierarchical k-means clustering algorithm were compared with the results of hierarchical Ward’s method. The results for the Visegrad Group show faster development of capital regions and diversity of regional competitiveness and innovativeness. According to the results, one can suppose that innovative inputs were transformed in innovative outputs and that innovations had a positive and growing impact on regional competitiveness in the Visegrad Group, however further research is still needed. The major conclusion of the cluster analysis is that the development of regions in the Visegrad Group depends on their nationality – regions cluster within borders. Analysing the results, one should not forget that they are based on selected variables, which are a resultant of –in some measure- random choice and data accessibility.
    Keywords: regional competitiveness, regional growth, innovation, cluster analysis, Central and Eastern European Countries
    JEL: R11 C38 P25
    Date: 2012–12
  29. By: Cremers, Katrin; Schliessler, Paula
    Abstract: This paper looks at the decision to settle patent litigation in Germany from a new angle by focusing on detailed data on within-trial actions and motivations by plain-tiff, defendant and the courts. Using a new dataset covering about 80% of all patent litigation cases in Germany between 2000 and 2008 we estimate the likelihood of within-trial settlement. We find that the within-trial settlement decision is to some degree driven by the proceedings that change the pre-trial setting of the negotiations in terms of information and stakes and make previously refused settlement a new option. Additionally, firm-specific stakes as measured by the relation of the involved parties to the disputed patent as well as firm-specific strategies are found to affect the general willingness to settle after the filing of a court case. The results suggest that pre-trial failure of settlement negotiations can to some extent be offset by within-trial settlement through efforts made by court and involved parties, but that the disposition to settle is to a larger degree determined by firm-specific stakes and strategies in the case. --
    Keywords: Patent,Patent Litigation,Settlement
    JEL: O34 K41
    Date: 2012
  30. By: Quan Hoang Vuong; Nancy K. Napier
    Abstract: This paper explores the “resource curse” problem as a counter-example of creative performance and innovation by examining reliance on capital and physical resources, showing the gap between expectations and ex-post actual performance became clearer under conditions of economic turmoil. The analysis employs logistic regressions with dichotomous response and predictor variables, showing significant results.Several findings that have use for economic and business practice follow. First, in a transition period, a typical characteristic of successful firms was their reliance on either capital resources or physical asset endowments, whereas the innovation factor was not significant.Second, poor-performing enterprises exhibited evidence of over reliance on both capital and physical assets. Third, firms that relied on both types of resources tended to downplay creative performance. Fourth, reliance on capital/physical resources and adoption of “creative discipline/innovations” tend to be mutually exclusive. In fact, some evidence suggests that firms face more acute problem caused by the law of diminishing returns in troubled times. The Vietnamese corporate sector’s addiction to resources may contribute to economic deterioration, through a downward spiral of lower efficiency leading to consumption of more resources. The “innovation factor” has not been tapped as a source of economic growth. The absence of innovations and creativity has made the notion of “resource curse” become identical to “destructive creation” implemented by ex-ante resource-rich firms, and worsened the problem of resource misallocation in transition turmoil.
    Keywords: Organization of Production; Firm Behavior; Business Economics; Creativity/Innovation Processes
    JEL: D21 L23 M21 O31
    Date: 2012–12–17

This nep-ino issue is ©2013 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 For comments please write to the director of NEP, Marco Novarese at <>. 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.