|
on Innovation |
| By: | Takalo , Tuomas (Bank of Finland Research) |
| Abstract: | Economic interest in innovation policy largely arises from the fundamental importance of innovation to social welfare and from inefficiencies in innovation in a competitive market environment. As a result, a wide variety of public innovation policies are used in practice. This study reviews the economic justifications for public innovation policies and compares the existing policy tools, paying particular attention to the Finnish innovation policy environment. |
| Keywords: | innovation policies; innovation; R&D; incentives; market failures |
| JEL: | G28 H25 O31 O34 O38 |
| Date: | 2013–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_001&r=ino |
| By: | Arvanitis, Spyros (KOF, ETH Zürich); Lokshin, Boris (School of Business and Economics, Maastricht University); Mohnen, Pierre (UNU-MERIT/MGSoG); Wörter, Martin (KOF, ETH Zürich) |
| Abstract: | There is growing evidence that firms increasingly adopt open innovation practices. In this paper we investigate the impact of two such external knowledge acquisition strategies, 'buy' and 'cooperate', on firm's product innovation performance. Taking a direct (productivity) approach, we test for complementarity effects in the simultaneous use of the two strategies, and in the intensity of their use. Our results based on large panels of Dutch and Swiss innovating firms, suggest that while both 'buy' and 'cooperate' have a positive effect on innovation, there is little statistical evidence that using them simultaneously leads to higher innovation performance. Results from the Dutch sample provide some indication, that there are positive economies of scope in doing external and cooperative R&D simultaneously conditional on doing internal R&D. |
| Keywords: | Innovation, Open innovation, R&D collaboration, make, buy strategies |
| JEL: | O31 O32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013003&r=ino |
| By: | Dietmar Harhoff; Elisabeth Mueller; John Van Reenen |
| 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: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1193&r=ino |
| By: | Iizuka, Michiko (UNU-MERIT/MGSoG) |
| Abstract: | The innovation systems approach has proven useful in explaining the reasons behind varying economic performance in developing countries. The systemic understanding of the innovation process, which pays attention to the knowledge flow among interactive actors, serves as a useful 'focusing device' for elaborating effective policy to accelerate the innovation process and to contribute to economic development. The existing use of the innovation system may need to change substantially to address present-day societal challenges. The emerging types of innovation-such as user innovation, public sector innovation, social innovation and innovation for inclusive development-have different features from those of existing types. This paper examines the features of emerging types of innovation to assess whether and how the current innovation system can be remodelled to explain emerging social agendas, with particular focus on developing countries. |
| Keywords: | innovation system, user innovation, public sector innovation, social innovation, innovation for inclusive development, developing countries |
| JEL: | O20 O21 O31 O32 O33 O38 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013005&r=ino |
| By: | Ernst, Christof; Richter, Katharina; Riedel, Nadine |
| Abstract: | This paper examines the impact of tax incentives on corporate research and development (R&D) activity. Traditionally, R&D tax incentives have been provided in the form of special tax allowances and tax credits. In recent years, several countries moreover reduced their income tax rates on R&D output. Previous papers have shown that all three tax instruments are effective in raising the quantity of R&D related activity. We provide evidence that, beyond this quantity effect, corporate taxation also distorts the quality of R&D projects, i.e. their innovativeness and revenue potential. Using rich data on corporate patent applications to the European patent office, we find that a low tax rate on patent income is instrumental in attracting innovative projects with a high earnings potential and innovation level. The effect is statistically significant and economically relevant and prevails in a number of sensitivity checks. R&D tax credits and tax allowances are in turn not found to exert a statistically significant impact on project quality. -- |
| Keywords: | corporate taxation,research and development,micro data |
| JEL: | H3 H7 J5 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:662013&r=ino |
| By: | Porath, Amiram (CREST Expert Group) |
| Abstract: | Collaborative Research (CR) is usually regarded as a way to overcome several R&D barriers: the limitations of specific R&D projects resulting from lack of finance required for research infrastructure investment; the lack of expertise in industry (while it exists in academic institutes); and successful knowledge transfer. CR can be regarded as a strategic Open Innovation tool. In a book published in 2010 (Porath, 2010) I discussed CR on various aspects, analyzing it from the academic point of view and in the later part of the book on the practical aspects of participants and policy makers. Two recent books have been published, in which I have one chapter each. In the first one I presented a model (Porath, 2012a); and in the second a case study (Porath 2012b) regarding Open Innovation. These chapters have not dealt with CR as Open Innovation but rather presented another tool that has made Open Innovation a strategy for companies with little other choice. In this chapter I will combine the three sources into a more comprehensive picture. |
| Keywords: | Collaborative research; Open innovation; Knowledge management |
| JEL: | L14 L17 O32 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_001&r=ino |
| By: | Ahmad Reza Saboori Memar (University of Giessen); Georg Götz (University of Applied Science) |
| Abstract: | This paper focuses on incentives to invest in research and development (R&D) in vertically related markets. In a bilateral duopoly setup, we consider how process R&D incentives of the firms in both upstream and downstream market depend on the intensity of simultaneous interbrand and intrabrand competition. Among the results: both interbrand and intrabrand competition have twofold effects on R&D incentives. Existence of a vertically related market with imperfect competition lowers both the incentives to invest in process R&D and the competitive advantage through the R&D investment. We will show how the impact of a firm's R&D investments in either market on consumer surplus as well as on the profits of all firms in both markets depends on exogenous parameters. |
| Keywords: | research and development, vertical relations, bilateral oligopoly, product differentiation, process innovation, interbrand and intrabrand competition |
| JEL: | L13 D43 O30 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201307&r=ino |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Nabavi, Pardis (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | This paper is concerned with the productivity and growth of Swedish exporting firms. Using data on 9,580 manufacturing firms with 10 or more employees for the period 1997-2008, it estimates a dynamic GMM model that captures both the impact of recurrent knowledge investment through innovation and potential spillovers from the local milieu. The majority of the exporting firms are non-innovative. The data reveal that patent applicants located in knowledge intense milieus account for almost 40 percent of total Swedish exports, but only 2 percent of the firms. From the regressions it is shown that, relative to a firm that does not engage in innovation and has scarce access to external knowledge, the level of productivity is 2-12 percent higher for an innovative firm, depending on how innovation is defined and where the innovator is located. The annual long-run growth rate is 0.2-0.7 higher for innovative firms. Moreover, the performance gap between innovative and non-innovative exporters increases with accessibility to external knowledge for the former. |
| Keywords: | Productivity; exports; innovation; geographical knowledge spillovers; panel data |
| JEL: | C23 F14 L25 O31 R32 |
| Date: | 2013–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0296&r=ino |
| By: | Takalo, Tuomas (Bank of Finland and KU Leuven); Tanayama , Tanja (National Audit Office of Finland); Toivanen , Otto (KU Leuven & CEPR) |
| Abstract: | We extend the theoretical basis of the empirical literature on the effects of R&D subsidies by providing an estimable model of strategic interaction among subsidy applicants, and public and private sector R&D financiers. Our model incorporates fixed R&D costs and a cost of external finance. We derive the optimal support rule. At the intensive (extensive) margin the costs of external funding reduce (increase) the optimal subsidy rate. We also establish necessary and sufficient conditions for the existence of additionality. It turns out that additionality at the intensive margin is less likely with large spillovers. Our results suggest that the relationship between additionality and welfare may not be straightforward. |
| Keywords: | R&D; entrepreneurial finance; R&D subsidies; innovation policy |
| JEL: | G28 H25 L32 O38 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_002&r=ino |
| By: | Link, Albert N. (University of North Carolina at Greensboro, Department of Economics); Scott, John T. (Dartmouth College) |
| Abstract: | In the aftermath of the passage of the American Recovery and Reinvestment Act of 2009, the employment effects of public subsidies have been scrutinized because of new emphasis on public accountability and transparency. In this paper we investigate conditions in which public subsidies of research and development (R&D) in small firms stimulate employment growth. We find, based on an empirical analysis of employment growth induced by U.S. Department of Defense Small Business Innovation Research (SBIR) program awards, that the stimulated employment growth is greater under two conditions: one, the presence of outside investors providing additional funding for the R&D, and two, when an exceptional amount of intellectual property is created by the publicly subsidized R&D. In addition to outside investors, other firms that make commercial agreements with the subsidized firm appear important for the employment growth of the subsidized firm. Cooperation between the small business doing the R&D and other firms is an important determinant of the commercial success of the technologies created with the support of public funds. |
| Keywords: | Public subsidy of R&D; Intellectual property; Employment growth; Entrepreneurship; Cooperation |
| JEL: | J21 L26 O31 O38 |
| Date: | 2013–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2013_001&r=ino |
| By: | Patrick Llerena; Valentine Millot |
| Abstract: | The benefits of innovations for firms strongly depend on their ability to develop complementary appropriability means, including intellectual property (IP) rights. This paper aims at assessing the interrelated effects of two types of IP rights, namely patents and trade marks, considering them in their core function as legal protection devices. Based on a supermodularity analysis, we show that the complementary relationship between trade marks and patents is not straightforward. Depending on the levels of advertising spillovers and depreciation rate, trade marks are found to be either complementary or substitute to patents. Based on a data set encompassing the IP activity of a sample of French publicly traded firms, we find that patents and trade marks are complementary in chemical and pharmaceutical sectors, but substitute in high-tech business sectors (computer products and electrical equipment). |
| JEL: | O32 O34 L10 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2013-01&r=ino |
| By: | Leeuwen, George van (Centraal Bureau voor Statistiek); Mohnen, Pierre (UNU-MERIT/MGSoG) |
| 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. |
| Keywords: | Porter Hypothesis, green innovation, environmental regulation, innovation complementarities, productivity |
| JEL: | H23 L5 O32 O38 Q55 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013002&r=ino |
| By: | Crespi, Gustavo (Competitiveness and Innovation Division, Inter-American Development Bank); Tacsir, Ezequiel (UNU-MERIT/MGSoG) |
| Abstract: | This study examines the impact of process and product innovation on employment growth and composition in Argentina, Chile, Costa Rica, and Uruguay using micro data from innovation surveys. Based on the model put forward by Harrison et al. (1998), employment growth is related to process innovations and to the growth of sales separately due to innovative and unchanged products. Results show that compensation effects are pervasive and that the introduction of new products is associated with employment growth at the firm level. No evidence of displacement effects due to the introduction of product innovations was observed. With respect to the impact of innovation on employment composition, there is scant evidence of a skill bias, although product innovation is more complementary to skilled than to unskilled labour. |
| Keywords: | innovation, employment, developing countries, Latin America, innovation surveys |
| JEL: | O12 O14 O31 O33 O40 J21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013001&r=ino |
| By: | Yasunori Ouchida (Faculty of Economics, Hiroshima University); Daisaku Goto (Graduate School for International Development and Cooperation, Hiroshima University) |
| Abstract: | In a recent publication in Journal of Economic Behavior and Organization, Poyago-Theotoky (2007) developed a three-stage game model, and also derived theoretical findings and important policy implications for environmental R&D under a time-consistent emission tax. Among the conclusions presented in that paper, it was stated that with inefficient environmental R&D technology and small environmental damage, cooperative environmental R&D engenders larger environmental R&D efforts and greater social welfare than noncooperative environmental R&D does. This note describes that the results of Professor Poyago-Theotoky's (2007, 2010) works are still robust in a relaxed wider parameter range of the environmental damage coefficient. Furthermore, we provide the generalized sufficient condition of damage coefficient to guarantee an interior solution for R&D in an extended framework. |
| Keywords: | Time-consistent emission tax, Environmental R&D, environmental damage, Cournot duopoly |
| JEL: | O32 L13 Q55 Q58 |
| Date: | 2011–12 |
| URL: | http://d.repec.org/n?u=RePEc:hir:idecdp:1-6&r=ino |
| By: | Eric Schmidbauer (Department of Business Economics and Public Policy, Indiana University Kelley School of Business) |
| Abstract: | Are new versions of products necessarily better? We analyze product innovation by a firm that engages in research and development designed to improve an existing product, the outcome of which is uncertain. If the firm adopts the innovation its modified product appears to consumers as new and improved, but consumers do not immediately know whether or how much the product is better. We find that new products are on average improved and therefore command a pricing premium. This induces some types to exploit the new product signal by selling new versions that are only trivially different from their older version or that require inefficiently high upgrade costs. Nevertheless, the incentive to show off by introducing a new product may improve total welfare by inducing more innovation adoption and thereby mitigating the standard monopoly underinvestment problem. Innovation signaling provides a rational explanation for consumer attraction to new versions of products without resort to behavioral assumptions such as a preference for "newness". |
| Keywords: | Asymmetric information, Signaling, Innovation |
| JEL: | L0 D82 O31 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:iuk:wpaper:2013-01&r=ino |
| By: | Mohammad Movahedi (Normandie University, UNICAEN - CREM CNRS UMR6211); Olivier Gaussens (Normandie University, UNICAEN - CREM CNRS UMR6211) |
| Abstract: | Ce papier concerne l’analyse de l’impact de l’exportation sur la productivité et l’innovation dans les entreprises. L’apport de ce travail réside principalement dans 1) la décomposition de l’effet global de l’exportation sur les performances de l’entreprise en un effet d’apprentissage, un effet d’auto-sélection et un effet de spécialisation, 2) la prise en compte simultanée de la persistance de l’exportation et de son intensité. L’objectif de ce papier est d’évaluer l’impact respectif des trois effets de l’exportation sur la performance des entreprises. Ces effets sont testés dans le cadre d’un modèle récursif à partir d’indicateurs synthétiques de l’output et de l’input d’innovation issus de l’analyse des correspondances multiple (ACM). Cette estimation est réalisée a partir des données d’un échantillon représentatif de 90 PMI de la région Basse-Normandie (France) provenant de l’enquête conduite en 2009-10 dans le cadre du projet IDEIS. <br> English abstract: This paper presents an analysis of the impact of exporting on productivity and innovation in SMEs. The contribution of this work lies mainly in 1) the decomposition of the overall effect of the export on the firm performance into a learning effect, a self-selection effect and a specialization effect; and 2) the simultaneous consideration of the both persistence and intensity of export. The primary aim of this paper is to evaluate the respective impact of these three export effects on firm performance. These effects are tested in a recursive model from synthetic indicators of innovation using multiple correspondence analysis (MCA). For this end, we use the data from a representative random sample formed by 90 SMEs of regional of Normandy (France), obtained from the survey conducted in the IDEIS project. |
| Keywords: | Apprentissage, Auto-sélection, Spécialisation, Processus d’innovation / Learning, Self-selection, Specialization, innovation process |
| JEL: | C14 C35 D22 F12 O31 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:tut:cremwp:201307&r=ino |
| By: | Bertschek, Irene; Cerquera, Daniel; Klein, Gordon J. |
| Abstract: | The paper provides empirical evidence for the causal impact of broadband Internet on firms' labour productivity and realised process and product innovations. The analysis refers to the early phase of DSL expansion in Germany from 2001 to 2003, when roughly 60 percent of the German firms already used broadband Internet. Identification relies on instrumental variable estimation taking advantage of information on the availability of DSL broadband at the postal code level. The results show that broadband Internet has no impact on firms' labour productivity, whereas it exhibits a positive and significant impact on their innovation activity. -- |
| Keywords: | labour productivity,product and process innovation,broadband Internet |
| JEL: | D22 L23 O31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:86&r=ino |
| By: | Claudia Curi (School of Economics and Management, Free University of Bozen-Bolzano); Cinzia Daraio (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"); Patrick Llerena (University of Strasbourg, BETA (Bureau d'Economie Théorique et Appliquée) and Observatoire des Sciences et Techniques (OST, Paris)) |
| Abstract: | This paper assesses the performance in technology transfer operated by the French university system adopting a Malmquist approach within an inferential setting. It investigates an original and unique database of French TTOs over their first development time. We find an overall weak increase in productivity, driven by technology and organisational improvement related to a small number of TTOs. More specifically, most TTOs show a stable innovative behaviour (i.e. no significant technical change) and only half of the system experiences a decline in efficiency change suggesting the lack of one best business model able to fit the entire system. Finally, we find that, on average, the presence of university-related hospital dampens TTOs’ efficiency and TTO´s seniority has a positive effect on productivity, enhancing simultaneously efficiency and innovation |
| Keywords: | Technology Transfer Offices (TTOs; French University System; Malmquist Index; Data Envelopment Analysis (DEA); Bootstrap |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:aeg:report:2013-03&r=ino |
| By: | Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Johansson, Sara (CESIS and CEnSE at Jönköping International Business School); Wallin, Tina (CESIS and CEnSE at Jönköping International Business School) |
| Abstract: | Firms in local industries maintain their capability to generate innovations by simultaneously exploiting internal and external knowledge resources. The paper introduces the notion variety triplet to distinguish individual export varieties, where a triplet is a unique combination of a firm, a product code and a destination country. For each date the set of variety triplets in each local industry records all remaining past product innovations. In view of this the paper examines how internal and external knowledge of local industries influence the industry’s scope and value of export varieties. The paper contributes to existing knowledge firstly by introducing variables that measure a local industry’s access to external supply of knowledge, divided into local and extra-local supply. Secondly, the paper sheds light on how internal and external knowledge influence the scope of product innovations in local industries, with firm-level data from Sweden. Thirdly, the paper compares the influence of knowledge on the entire set of variety triplets and on a separate set of recently introduced varieties. |
| Keywords: | Product varieties; innovation; internal knowledge; external knowledge; KIBS |
| JEL: | F12 F14 R12 R32 |
| Date: | 2013–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0297&r=ino |
| By: | Hartmann, Dominik; Pyka, Andreas |
| Abstract: | In this paper we bridge a gap between innovation economics and the human development approach by analyzing positive and negative effects of different types of economic diversification on social welfare. Economic variety is a driver and outcome of economic development. However, diversification leads to ambiguous effects on the well-being of human agents: on the one hand, increasing variety augments the freedom of human agents to choose. On the other hand, it can overburden their capabilities to make economic decisions and can deteriorate their well-being. It becomes clear that human development policy has to go hand in hand with an industrial policy that promotes qualitative economic diversification. Depending on its dynamics, this diversification can be achieved via related and unrelated variety. We can expect a better design of development policies from a better understanding of the co-evolutionary development of variety, freedom of choice and well-being. -- |
| Keywords: | innovation,economic diversification,human development |
| JEL: | O10 O54 E11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:652013&r=ino |
| By: | Romão, João (University of Algarve); Rodrigues, Paulo M. (University of Algarve); Guerreiro, João (University of Algarve) |
| Abstract: | The differentiation of tourism destinations depends on the innovative integration of local cultural and natural characteristics of the territory into the regional touristic supply. A panel data model is used to identify – and to confirm – the influence of these “new” conditions for sustainable tourism development in the regional attractiveness in Southwest Europe, between 2003 and 2008. Other “traditional conditions” are also taken into consideration, namely those related to infrastructures and economic conditions. The work includes a critical literature review on the regional tourism systems, their relation with regional systems of innovation and the contribution of natural and cultural assets for the differentiation of tourism destinations. |
| Keywords: | Tourism; Innovation; Differentiation; Nature; Heritage; Region |
| JEL: | C23 O33 Q56 |
| Date: | 2013–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ris:cieodp:2013_003&r=ino |
| By: | OECD |
| Abstract: | The OECD's Towards Green Growth states that green growth is about fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. To do this it is necessary to foster investment and innovation, which will underpin sustained growth and give rise to new economic opportunities... |
| Date: | 2013–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:cfeaab:2013/1-en&r=ino |