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on Innovation |
| By: | Barge-Gil, Andrés; López, Alberto |
| Abstract: | The link between R&D and productivity has been widely analyzed. However, these innovation activities have been considered as a whole. This paper analyzes the differentiated effect of research and development on productivity and tests the existence of complementarity between these activities. We find evidence supporting the existence of a direct effect of both innovation activities. Most interesting, our results suggest that there is complementarity between research and development in determining productivity. |
| Keywords: | R&D; Productivity; Complementarity |
| JEL: | O33 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43808&r=ino |
| By: | Slivko, Olga |
| Abstract: | This article analyzes how the perceived effectiveness of intellectual property protection and competitive pressure affect firms' innovation strategy choices, concretely, whether to abstain from innovation, to introduce products that are known in the market but new to the firm (imitation) or to introduce market novelties (innovation). Using a sample of 1253 German firms from manufacturing and services sectors I show that the perceived effectiveness of patent protection positively affects firms' propensity to imitate and to innovate. Having a small or a medium number of competitors positively affects firms' propensity to imitate and to innovate as compared to being a monopolist or having a large number of competitors. However, this effect varies with the perceived patent protection effectiveness. If the perceived patent protection effectiveness is low or medium, both innovation and imitation are enhanced, whereas if it is high, only innovation is enhanced. -- |
| Keywords: | Innovation,imitation,competitive pressure,intellectual property protection |
| JEL: | C35 L13 O31 O34 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:12089&r=ino |
| By: | Ceren Ozgen (Department of Spatial Economics, VU University Amsterdam); Peter Nijkamp (Department of Spatial Economics, VU University Amsterdam); Jacques Poot (National Institute of Demographic and Economic Analysis, University of Waikato) |
| Abstract: | To investigate econometrically whether cultural diversity of a firm’s employees boosts innovation, we create a unique linked employer-employee dataset that combines data from two innovation surveys in The Netherlands with administrative and tax data. We calculate three distinct measures of diversity. We find that firms that employ fewer foreign workers are generally more innovative, but that diversity among a firm’s foreign workers is positively associated with innovation activity. The positive impact of diversity on product or process innovations is greater among firms in knowledge-intensive sectors and in internationally-oriented sectors. The impact is robust to accounting for endogeneity of foreign employment. |
| Keywords: | immigration, innovation, cultural diversity, knowledge spillovers, linked administrative and survey data |
| JEL: | D22 F22 O31 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:nor:wpaper:2013003&r=ino |
| By: | George van Leeuwen; Pierre Mohnen |
| Abstract: | Almost all empirical research that has attempted to assess the validity of the Porter Hypothesis has started from reduced-form models, e.g. by using single-equation models for estimating the contribution of environmental regulation (ER) to productivity. This paper addresses the Porter Hypothesis within a structural approach that allows us to test what is known in the literature as the “weak” and the “strong” version of the Porter hypothesis. Our “Green Innovation” model includes three types of eco investments and non-eco R&D to explain differences in the incidence of innovation. Besides product and process innovations we recognize eco-innovation as a separate type of innovation output. We explicitly model the potential synergies of introducing the three types of innovations simultaneously and their synergy in affecting total factor productivity (TFP) performance. Using a comprehensive panel of firm-level data built from four surveys we aim to estimate the relative importance of energy price incentives as a market based type of ER and the direct effect of environmental regulation on eco investment and firms’ decisions regarding the introduction of several types of innovations. The results of our analysis show a strong corroboration of the weak version of the Porter hypothesis but not of the strong version of the PH, in this case on TFP performance. <P>Presque toutes les études empiriques qui se sont penchées sur l’hypothèse de Porter ont utilisé un modèle à forme réduite, en d’autres termes un modèle qui régresse la productivité sur la réglementation environnementale. Notre étude utilise un modèle à forme structurelle qui permet de tester les versions faible et forte de l’hypothèse de Porter. Notre modèle d’innovation verte comporte trois types d’investissement environnementaux en plus de la R-D non-environnementale, qui ensemble expliquent l’occurrence d’innovations, qui sont au nombre de trois : innovation de produit, de procédé et éco-innovation. Nous testons la présence de synergie dans l’introduction de ces trois types d’innovation et dans leurs effets sur la productivité totale des facteurs. À l’aide de données de firmes en panel provenant de quatre enquêtes différentes, nous estimons l’importance des prix de l’énergie et des réglementations environnementales sur les investissements verts et les différents types d’innovation. Nos résultats corroborant la version faible mais pas la version forte de l’hypothèse de Porter. |
| Keywords: | Porter Hypothesis, green innovation, environmental regulation, innovation complementarities, productivity, |
| Date: | 2013–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2013s-02&r=ino |
| By: | Holger Herz; Daniel Schunk; Christian Zehnder |
| Abstract: | Recent field evidence suggests a positive link between overconfidence and innovative activities. In this paper we argue that the connection between overconfidence and innovation is more complex than the previous literature suggests. In particular, we show theoretically and experimentally that different forms of overconfidence may have opposing effects on innovative activity. While overoptimism leads to an innovation enhancing effect, judgmental overconfidence inhibits innovation. Our results indicate that future research is well advised to take into account that the relationship between innovation and overconfidence may crucially depend on what type of overconfidence is most prevalent in a particular context. |
| Keywords: | Innovation, entrepreneurship, overconfidence, experiment |
| JEL: | C92 D83 D23 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:zur:econwp:106&r=ino |
| By: | Lionel Nesta (SciencesPo, OFCE-DRIC); Francesco Vona (SciencesPo, OFCE-DRIC); Francesco Nicolli (University of Ferrara) |
| Abstract: | We investigate the effectiveness of policies in favor of innovation in renewable energy under different levels of competition. Using information regarding renewable energy policies, product market regulation and high-quality green patents for OECD countries since the late 1970s, we develop a pre-sample mean count-data econometric specification that also accounts for the endogeneity of policies. We find that renewable energy policies are significantly more effective in fostering green innovation in countries with deregulated energy markets. We also find that public support for renewable energy is crucial only in the generation of high-quality green patents, whereas competition enhances the generation of green patents irrespective of their quality. |
| Keywords: | Renewable Energy Technology, Patents, Environmental Policies, Product Market Regulation, Policy Complementarity |
| JEL: | Q55 Q58 Q42 Q48 O34 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.90&r=ino |
| By: | Morten S. Henningsen, Torbjørn Hægeland and Jarle Møen (Statistics Norway) |
| Abstract: | Empirical examination of whether R&D subsidies to private firms crowd out private investments has been hampered by problems related to selection. A particular worry is that research intentions and the quality of current research ideas may be correlated with the likelihood of applying for and receiving subsidies. Proposal evaluation data has been put forward as a potential remedy. Using such data from Norway, we do not find strong evidence suggesting that this type of selection creates a severe bias. Proposal evaluation grades strongly predict R&D investments and reduce selection bias in cross-sectional regressions, but there is limited variation in grades within firms over time. This suggests that unobserved project quality is largely absorbed by firm fixed effects. Our best estimate of the short-run additionality of R&D subsidies is 1.15, i.e., a one-unit increase in subsidy increases total R&D expenditure in the recipient firm by somewhat more than a unit. We demonstrate, however, that there is severe measurement error in the subsidy variable. Additionality is therefore likely to be underestimated, and we conclude that measurement errors may be a more important source of bias than selection when panel data are available. |
| Keywords: | Technology policy; R&D subsidies; input additionality; selection; proxy variables |
| JEL: | O32 L53 H25 H32 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:729&r=ino |
| By: | Jing Cao; Felix Groba |
| Abstract: | Chinese companies have become major technology producers, with the largest share of their output exported. This paper examines the development of solar PV and wind energy technology component (WETC) exports from China and the competitive position of the country`s renewable energy industry. We also describe the government's renewable energy policy and its success in renewable electricity generation as well as increasing renewable energy innovation and foreign knowledge accumulation, which may drive export performance. We aim at empirically identifying determinants of Chinese solar PV and WETC exports. We estimate an augmented gravity trade model using maximum likelihood estimation. Besides controlling for standard variables derived from the gravity literature, we consider additional explanatory factors by accounting for market, policy and innovation effects steaming from both importing countries and China. We use a panel dataset representing annual bilateral trade flows of 43 countries from the developed and developing world that imported solar PV and WETCs from China between 1996 and 2008. The analysis shows that while the national market remained small for solar PV, the industry successfully entered foreign markets. The export performance of firms producing WETC increased but remained relatively small while the country developed a large home market. Empirical results indicate that high income countries, with a large renewable energy market and demand side policy support scheme, in terms of incentive tariffs, are increasingly importing solar PV components from China. We show that trade costs have a negative impact on exports of solar PV components but not WETC. Additionally, we find a positive impact of research and development (R&D) appropriation growth, especially from provincial governments in China, but no evidence that bilateral knowledge transfer and indigenous innovation affect exports. |
| Keywords: | China, Gravity model, Trade, Innovation, Policy, Renewable Energy Technologies |
| JEL: | C32 F14 O30 Q42 Q48 Q56 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1263&r=ino |
| By: | Torben Klarl (University of Augsburg, Department of Economics) |
| Abstract: | In the recent last years, in particular in the aftermath of the global financial and economic crisis, many countries initiated economic recovery plans with a major focus on stimulating green entrepreneurial activities to revive economic growth. Further, the recovery plans intend to improve a country's awareness for a direct orientation towards (strong) sustainability and green growth. Before discussing strategies towards green growth, in this paper we propose a novel framework to increase our understanding of the interplay of process R&D activities, the strategic price and environmental quality setting of heterogeneous entrepreneurs in a market where consumers feel up to paying for environmental quality improvement of a vertically differentiated good. In the paper we decompose an entrepreneur's incentive conducting process R&D in four parts. In particular we show that an entrepreneur's incentive of conducting own process R&D is reduced due to the existence of knowledge-spillovers. Moreover, due to the strategic complementarities, both in prices as well as in environmental quality, a strategic effect reinforces the negative consequences of the spillover-effect. We show that the externalities in the model require corrections based upon a mixture of fiscal policies and a process R&D subvention scheme establishing a first-best solution. We further thoroughly discuss the implementation of a second-best solution and derive environmental policy implications. |
| Keywords: | Technological change, Process R&D, Green consumerism, Vertical differentiation, Emission tax, Environmental quality, Environmental policy |
| JEL: | Q55 Q58 O31 O33 D43 L13 L15 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:aug:augsbe:0321&r=ino |
| By: | Revoredo-Giha, Cesar; Leat, Philip M.K.; Renwick, Alan W.; Lamprinopoulou-Kranis, Chrysa |
| Abstract: | This paper deals with innovation in supply chains and discusses the effects that its organisation (e.g., bargaining power along the chain) might bring on innovation and ultimately to the sustainability of the chain. The analysis was carried out considering the case of the UK potato sector and by comparing three case studies: the first two consider the situation of a supply chain that sells fresh potatoes to retailers (one in South England and another in Scotland), whilst the third one consists of a supply chain that produces potatoes to be further processed. The results indicate that the supply chain leader plays an important role in both in the organisation of the chain and in the initialisation, management and success of the innovation |
| Keywords: | Innovation, agri-food supply chains, potato sector, UK agriculture, Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety, |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:saclwp:142544&r=ino |
| By: | Angelo Antoci (University of Sassari); Simone Borghesi (University of Siena); Mauro Sodini (University of Pisa) |
| Abstract: | The present paper investigates the functioning of an Emission Trading System (ETS) and its impact on the diffusion of environmental-friendly technological innovation in the presence of firms’ strategic behaviours and sanctions to non-compliant firms. For this purpose, we study an evolutionary game model with random matching, namely, a context in which a population of firms interact through pairwise random matchings. We assume that each firm has to decide whether to adopt a new clean technology or keep on using the old technology that requires pollution permits to operate and that the strategy whose expected payoff is greater than the average payoff spreads within the population at the expense of the alternative strategy (the so-called replicator dynamics). We investigate the technological dynamics and the stationary states that emerge from the model. From the analysis of the model, we show that by properly modifying the penalty on non-compliant firms, it is possible to shift from one dynamic regime to another and that an increase in permits trade can promote the diffusion of innovative pollution-free technologies. |
| Keywords: | Emissions Trading, Technological Innovation, Random Matching, Evolutionary Game, Penalty System, Strategic Behaviour |
| JEL: | C62 C63 C73 C78 O33 Q55 Q58 |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.79&r=ino |
| By: | Martin Falk |
| Abstract: | This study investigates the determinants of bilateral Greenfield FDI projects and flows in knowledge intensive business services from OECD/BRIC countries to the EU countries for the period 2003-2010. Greenfield FDI projects are distinguished by type of activity: (i) business services, (ii) design, development and testing activities, (iii) headquarters activities and (iv) R&D services. Another aim of this study is to provide new empirical evidence on the patterns of Greenfield investments in knowledge intensive business services over time, source country and destination country. For Austria, the number of Greenfield investments in headquarter functions remains stable over time whereas Greenfield investments in R&D and related activities declined during the sample period. The same holds true for the number of jobs generated through greenfield investments. The results using panel count data models show that wage costs, tertiary education, corporate taxes, having a common border and sharing a common language all play a significant role in determining bilateral Greenfield FDI projects in knowledge intensive services. However, the impact of corporate taxation and labour costs differs widely across the functions and does not play a role in Greenfield investments in R&D and development, design and testing services. |
| Keywords: | Greenfield foreign direct investment, knowledge intensive business services, headquarter functions, R&D activities, gravity equation, panel data, FDI determinants |
| JEL: | F23 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:ecbook:2012:i:iv-002&r=ino |
| By: | Tamayo, M. P.; Huergo, E. |
| Abstract: | The offshoring of high-tech services has greatly increased in recent years, with consequences for firms demand for skilled employment in firms. This paper specifically analyzes the relationship between R&D offshoring and the demand for R&D employment using firm-level data for Spanish manufacturing and services companies during the period 2004-2009. Estimating different specifications with panel data techniques, we find that this association is statistically positive. In particular, for services firms a 1 percentage point increase in R&D offshoring raises the demand for researchers by about 11%. This suggests the existence of complementarity among them as productive inputs. |
| Keywords: | R&D offshoring; wages; skilled employment |
| JEL: | F16 O32 L24 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43970&r=ino |
| By: | Cern Ertur; Antonio Musolesi |
| Abstract: | This paper provides an econometric examination of geographic R&D spillovers among countries by focusing on the issue of cross-sectional dependence. By applying several unit root tests, we show that when the number of lags of the autoregressive component of augmented Dickey Fuller test-type speci…cations or the number of common factors is estimated in a model selection framework, the variables (total factor productivity and the R&D capital stocks) appear to be stationary. Then, we estimate the model using two complementary approaches, focusing on generalised spatial autoregression and unobserved common correlated factors. These approaches account for different types of cross-sectional dependence and are related to the notions of weak and strong cross-sectional dependence recently developed in the literature. |
| Keywords: | Panel data, Cross-section correlation, Spatial models, Factor models, Unit root |
| JEL: | C23 C5 F0 O3 |
| Date: | 2012–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:ceo:wpaper:41&r=ino |
| By: | Gogodze, Joseph |
| Abstract: | ECAICI indicator introduced in the present article enables to analyze innovative capacities dynamics of the ECA region (by The World Bank classification) countries in 1996-2010. Thorough research reveals four leading unobservable factors, affecting innovative processes in ECA region. These factors may be referred as Knowledge creation, Economy sophistication, Knowlege Absorption-Diffusion, Human Capital Production. We show that there is a close link between ECAICI indicator and other well-known innovation indicators and show also that there is a close link between ECAICI indicator and GDP per capita. Indicator ECAICI may be applied as an instrument for innovative capacities assessment and analysis. Presented brief analysis of current innovative capacities of Georgia, carried out by means of this indicator serves as illustration of the fact. ECAICI indicator may prove to be useful and interesting also for other post-USSR countries. |
| Keywords: | National innovation systems; Developing countries; Countries in transition; Composite indicator; Factor analysis |
| JEL: | C43 O30 C81 |
| Date: | 2013–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43921&r=ino |
| By: | Gogodze, Joseph |
| Abstract: | Present article introduces composite indicator for regional innovative systems of the countries with developing and transitional economy. Using the factor analysis technique it exposes four principal unobservable factors, which reflect basic aspects of regional innovative systems. Those factors are used as sub indicators to elaborate composite indicator of the regional innovative systems. This composite indicator may be used for measurement of the regions innovative lavel. Proposed composite indicator can be easily adapted for other countries with developing and transitional economy (e.g. for the post USSR space). By way of illustration here are provided calculations of sub indicators and the composite indicator for Georgian regions (GRIS-2010). |
| Keywords: | Regional innovation systems; Developing countries; Countries in transition; Composite indicator; Factor analysis |
| JEL: | O18 C43 O30 C81 |
| Date: | 2013–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43911&r=ino |
| By: | Michela Catenacci (Fondazione Eni Enrico Mattei); Elena Verdolini (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo per i Cambiamenti Climatici); Valentina Bosetti (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo per i Cambiamenti Climatici); Giulia Fiorese (Fondazione Eni Enrico Mattei and Dipartimento di Elettronica e Informazione, Politecnico di Milano); Nadia Ameli |
| Abstract: | The paper describes the results of a survey, carried out with leading EU experts, on the capacity of both fully electric and plug-in hybrid vehicles to reach commercial success in the next twenty years. The success of electric transport is hampered by a combination of low range, scarce efficiency and high costs of batteries. Costs are expected to decrease in response to increasing sales volume and technical improvements, and advances would result from adequate investments in research, development and demonstration (RD&D). Experts’ judgements are collected to shed light on the inherently uncertain relationship between RD&D efforts and consequent technical progress, and to assess the complex dynamics that will hinder or support the widespread diffusion of electric vehicles. The analysis of the experts’ data results in a number of important policy recommendations to guide future RD&D choices and target commitments both for the EU and its member states. |
| Keywords: | Expert Elicitation, Battery Technologies, Electric Vehicles |
| JEL: | Q5 Q55 |
| Date: | 2012–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2012.93&r=ino |
| By: | Simplice A, Asongu |
| Abstract: | Purpose – Poverty and inequality undoubtedly remain substantial challenges to economic and human developments amid growing emphasis on IPRs (with recent advances in ICTs) and good governance. In the first empirical study on the incidence of piracy on inequality in Africa, we examine how a plethora of factors (IPRs laws, education & ICTs and government quality) are instrumental in the piracy-inequality nexus. Design/methodology/approach – Two-Stage-Least Squares estimation approaches are applied in which piracy is instrumented with IPRs regimes (treaties), education & ICTs and government quality dynamics. Findings – The main finding suggests that, software piracy is good for the poor as it has a positive income-redistributive effect; consistent with economic and cultural considerations from recent literature. ICTs & education (dissemination of knowledge) are instrumental in this positive redistributive effect, while good governance mitigates inequality beyond the piracy channel. Practical implications – As a policy implication, in the adoption IPRs, sampled countries should take account of the role less stringent IPRs regimes play on income-redistribution through software piracy. Collateral benefits include among others, the cheap dissemination of knowledge through ICTs which African countries badly need in their quest to become ‘knowledge economies’. A caveat however is that, too much piracy may decrease incentives to innovate. Hence, the need to adopt tighter IPRs regimes in tandem with increasing income-equality. Originality/value – It is the first empirical assessment of the incidence of piracy on inequality in Africa: a continent with stubbornly high poverty and inequality rates. |
| Keywords: | Inequality; Piracy; Intellectual property rights; Africa |
| JEL: | F42 O55 O34 O15 K42 |
| Date: | 2012–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:43860&r=ino |