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on Innovation |
| By: | Daron Acemoglu (Department of Economics, Massachusetts Institute of Technology); Ufuk Akcigit (Department of Economics, University of Pennsylvania); Nicholas Bloom; William R. Kerr (Entrepreneurial Management Unit, Harvard University) |
| Abstract: | We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on firm-level output, R&D and patenting. The model provides a good fit to the dynamics of firm entry and exit, output and R&D, and its implied elasticities are in the ballpark of a range of micro estimates. We find industrial policy subsidizing either the R&D or the continued operation of incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 5% of GDP reduces welfare by about 1.5% because it deters entry of new high-type firms. 0n the contrary, substantial improvements (of the order of 5% improvement in welfare) are possible if the continued operation of incumbents is taxed while at the same time R&D by incumbents and new entrants is subsidized. This is because of a strong selection effect: R&D resources (skilled labor) are inefficiently used by low-type incumbent firms. Subsidies to incumbents encourage the survival and expansion of these firms at the expense of potential high-type entrants. We show that optimal policy encourages the exit of low-type firms and supports R&D by high-type incumbents and entry. |
| Keywords: | entry, growth, industrial policy, innovation, R&D, reallocation, selection |
| JEL: | E2 L1 |
| Date: | 2013–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:pen:papers:13-018&r=ino |
| By: | Buchmann, Tobias; Pyka, Andreas |
| Abstract: | In this paper we outline a conceptual framework for depicting network development patterns of interfirm innovation networks and for analyzing the dynamic evolution of an R&D network in the German automotive industry. We test the drivers of evolutionary change processes of a network which is based on subsidised R&D projects in the 10 year period between 1998 and 2007. For this purpose a stochastic actor-based model is applied to estimate the impact of various drivers of network change. We test hypotheses in the innovation and evolutionary economics framework and show that structural positions of firms as well as actor covariates and dyadic covariates are influential determinants of network evolution. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:702013&r=ino |
| By: | Esther Goya (Faculty of Economics, University of Barcelona); Esther Vayá (Faculty of Economics, University of Barcelona); Jordi Suriñach (Faculty of Economics, University of Barcelona) |
| Abstract: | This paper uses a structural model to analyse the impact of innovation activities, including intra- and inter-industry externalities, on the productivity of Spanish firms. To the best of our knowledge, no previous paper has examined spillover effects by adopting such an approach. Here, therefore, we seek to determine the extent to which the innovations carried out by others affect a firm’s productivity. Additionally, firm’s technology level is taken into account in order to ascertain whether there are any differences in this regard between high-tech and low-tech firms both in industrial and service sectors. The database used is the Technological Innovation Panel (PITEC) which includes 8,611 firms for the year 2009. We find that low-tech firms make the most of a range of factors, including funding and belonging to a group, to increase their investment in R&D. As expected, R&D intensity has a positive impact on the probability of achieving both product and, more especially, process innovations. Finally, innovation output has a positive impact on firm’s productivity, being greater in more advanced firms in the case of process innovations. Both intra- and inter-industry spillovers have a positive impact on firm’s productivity, but this varies with the firm’s level of technology. Thus, innovations made by firms from the same sector are more important for low-tech firms than they are for their high-tech counterparts, while innovations made by the rest of the sectors have a greater impact on high-tech firms. |
| Keywords: | Productivity, innovation, industry spillovers. JEL classification: D24, O33. |
| Date: | 2012–09 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201207&r=ino |
| By: | Karlsson, Charlie (Jönköping International Business School); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); R. Stough, Roger (George Mason University) |
| Abstract: | The purpose of this working paper is to provide a short overview of actual topics in contemporary research concerned with global, national, regional and local knowledge and innovation dynamics. In the text, we stress the importance to understand the current changes of the global and their implications for knowledge generation and innovation. Treating knowledge as a key resource for innovation shifts the focus from the innovation itself to the process of knowledge generation, transformation and diffusion, i.e. to knowledge dynamics. This necessitates integrating spatial aspects since knowledge generation and as a result, innovation exhibits a strong geographical clustering, which implies that innovation ability and innovation resources also are strongly clustered geographically in particular to urban regions. The role of interaction and proximity for knowledge generation and innovation is highlighted and instead it is stressed that relational, cognitive, organizational, social and institutional proximities are not substitutes or complements to spatial proximity but that they are all functions of the prevailing spatial proximity. Another important factor for interaction is social capital, which by fostering trust makes information and knowledge to diffuse faster. |
| Keywords: | Knowledge; innovation; proximity; knowledge economy; knowledge dynamics; knowledge networks; innovation ability; innovation resources; globalization; agglomeration; face-to-face interaction; urban regions; social capital |
| JEL: | O31 O32 O33 R12 |
| Date: | 2013–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0305&r=ino |
| By: | Erika Badillo (Faculty of Economics, University of Barcelona); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | In this paper we analyse the heterogeneity in firms’ decisions to engage in R&D cooperation, taking into account the type of partner (other companies from the same group, suppliers or customers, competitors, and research institutions) and the sector to which the firm belongs (industrial or services). We use information from the Technological Innovation Panel (PITEC) for the years 2006-2008 and estimate multivariate probit models corrected for endogeneity. We find that the determinants of R&D cooperation differ between sectors. In the industrial sector, the perception of risk as an obstacle to innovation reduces the likelihood of cooperating with companies in the same group and competitors, while in the service sector it reduces cooperation with suppliers or customers. For its part, the possibility of accessing additional human resources has a significantly positive effect on cooperation with all types of partner in the service sector, but not for manufactures.. |
| Keywords: | R&D cooperation; Choice of partners; Industrial sector; Service sector; Innovative Spanish firms. JEL classification: O30; O32; L24; L60; L80. |
| Date: | 2012–07 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201206&r=ino |
| By: | Koski, Heli |
| Abstract: | Abstract: The reported empirical findings using survey data from 531 Finnish companies show that for digitalized data-based innovation generated for both firm’s own and market needs, the firm’s ICT-specific absorptive capacity matters more than its general absorptive capacity arising from the firms’ investments in R&D and intangible assets. User-driven innovators differ from companies that do not produce new data-based solutions for their own use in three major dimensions: 1) they tend to use selective ICT outsourcing strategy, 2) they tend to involve more internal units closely to innovation activities and 3) they tend to use wider external knowledge search strategy. In other words, firms using data for producing innovative solutions for their own needs balance their relatively open innovation strategy with the close in-house innovation collaboration among different units, and further employ an ICT strategy that relies selectively on a firm’s own ICT-specific absorptive capacity and external ICT expertise. |
| Keywords: | user-driven innovation, open innovation, data-based products and services, ICT strategy, outsourcing |
| JEL: | D22 L20 O31 |
| Date: | 2013–03–21 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:7&r=ino |
| By: | Guillem ACHERMANN (Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO) |
| Abstract: | Aujourd’hui, l’émergence de systèmes de production localisés (SPL) a forcé les économistes à reconsidérer le poids du territoire dans le développement régional. Le concept du territoire s’est retrouvé directement lié au processus d’innovation. La notion de système territorial d’innovation a permis de rendre compte de cette évolution. Ce texte se donne pour objectif, une fois s’être penché sur la question de la systémique dans le processus d’innovation, de montrer le rôle incontournable du territoire dans l’émergence d’une dynamique économique initiée par l’innovation. Nowadays, the emergence of local production systems (LPS) has pushed economists to reconsider the weight of territory in regional development. The concept of territory is directly linked to the innovation process. The notion of “territorial innovation system” allows reflecting this change. This article will first look at the systemic approach of innovation process and then provide an analysis on the essential role of territory in the emergence of an economic dynamism triggered by the innovation. |
| Keywords: | système territorial d'innovation, système de production localisé, process d'innovation |
| JEL: | O31 D2 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:261&r=ino |
| By: | Antoine Dechezleprêtre |
| Abstract: | This paper presents the first empirical analysis of programmes to fast-track 'green' patent applications in place in seven Intellectual Property offices around the world. We find that only a small share of green patent applications (between 1% and 20% depending on the patent office) request accelerated examination, suggesting that patent applicants have a strong incentive to keep their patent applications in the examination process for as long as possible. Fast-tracking programmes reduce the examination process by several years compared to patents going through normal examination procedure and have seemingly accelerated the diffusion of technological knowledge in green technologies. In addition, we find that applicants require accelerated examination for patents of relatively higher value and that fast-tracking programmes seem to be particularly appealing to start-up companies in the green technology sector that are currently raising capital but still generate small revenue. |
| Keywords: | green patent application, green innovation, Intellectual Property, sustainable development |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1197&r=ino |
| By: | Yanrui Wu (Business School, University of Western Australia) |
| Abstract: | To cope with the rising labour cost and protect the country’s deteriorating environmental conditions, Chinese policy makers have recently made a series of policy changes to promote innovation and hence the development of a knowledge-based economy in the country in the coming decades. As a result, China’s R&D spending has expanded substantially. This paper contributes to the understanding of R&D behaviour in China’s large and medium-sized firms and hence the role of Chinese firms in innovation. The latter has important implications not only for the transformation of the Chinese economy but also for the rest of the world as Chinese firms become increasingly active internationally. |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:12-26&r=ino |
| By: | Leonardo Costa Ribeiro (INPI); Glenda Kruss (HSRC South Africa); Gustavo Britto (Cedeplar-UFMG); Ricardo Machado Ruiz (Cedeplar-UFMG); Américo Tristão Bernardes (UFOP); Eduardo da Motta e Albuquerque (Cedeplar-UFMG) |
| Abstract: | The role of multinational enterprises in the internationalization of production has been recognized and studied from several points of view. We believe that multinational firms have a similar role in shaping flows of knowledge, technology, and scientific research. Therefore, multinational firms, science and technology could be linked in a way that allows us to identify Global Innovation Networks (GIN), another and important feature of the internationalization of capital. The goal of this paper is to develop a methodology to identify GINs, based on previous work on patents and their citations of scientific papers, which was adapted to track GINs. That is, the main indicators measure interactions between firms and universities. We argue that the links between patenting firms and the authors of cited papers establish connections that allow the identification of several types of GINs. A case study of IBM is presented in this paper, as a well-known leading patent firm with several papers cited in its patents. It may provide an excellent case to demonstrate how the selected indicators describe the knowledge flows between firms and research institutions. The conclusion shows that other GINs can be identified applying the same methodology. |
| Keywords: | multinational firms, complex networks; diffusion; patents; innovation; technological change |
| Date: | 2012–10 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td463&r=ino |
| By: | Zeting LIU (Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO) |
| Abstract: | Longtemps échappées à l’intention des pouvoirs publics, les PME chinoises sont aujourd’hui identifiées comme un enjeu important dans le Grand Bond en avant de l’innovation de la Chine. Si les études sur le système d’innovation en Chine et les grandes entreprises publiques sont abondantes, l’innovation des PME ainsi que les mesures publiques spécifiques qui leur ciblent sont toutefois relativement peu étudiées. Cette étude tente d’identifier la place des PME chinoises dans le système de recherche et productif depuis les réformes économiques et la transformation des institutions de recherche lancées en 1978 et de repositionner les PME dans les politiques d’innovation en Chine. En ce faisant, elle propose une nouvelle lecture de l’analyse de performance de l’innovation en Chine. After being ignored by the public authorities for a long time, the Chinese SMEs are nowadays identified as an important issue in China's Great Leap Forward of Innovation. While studies on the innovation system in China and large public enterprises are abundant, innovation by SMEs and the specific public measures targeting them are relatively little studied. This study attempts to identify the place of the Chinese SMEs in the research and productive system since the economic reforms and the transformation of research institutions in 1978 and to reposition the SME innovation policies in China. In this way, it proposes a new reading of the analysis of innovation performance in China. |
| Keywords: | system national d'innovation, PME, réforme institutionnelle, Chine |
| JEL: | O38 P2 O53 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:266&r=ino |
| By: | Jannika Mattes (University of Oldenburg & ZenTra) |
| Abstract: | This paper claims that internationalisation of innovation and the involved dispersal of activities in multinational companies needs to be reassessed. It is rarely a uniform phenomenon, but instead selective, sequential and temporal. The paper derives five ideal types of organising innovation in multinational companies: complete concentration, core-periphery concentration, sequential dispersal, modularised dispersal and inclusive dispersal. Empirical case studies illustrate that these different types do not only vary between projects, but are even applied selectively in different functional arenas of one and the same innovation project. This also shows that innovation is organised in a dynamic way and involves constant shifts and re-adjustments. Some general traits of different functional arenas are being derived. One of the core conclusions is that dispersed and internationalised constellations of organising innovation are applied in a far more cautious and less encompassing fashion than commonly expected. Instead, elements of control usually remain concentrated, and even seemingly dispersed settings do not imply extensive interaction and integration between the involved sites. A further result is that the organisation of innovation is not only a strategic phenomenon, but remains subject to emergent, path dependent constellations. |
| Keywords: | innovation, multinational companies, internationalisation, organisation, micro-level, innovation project, innovation process |
| JEL: | F23 O32 |
| Date: | 2012–11 |
| URL: | http://d.repec.org/n?u=RePEc:zen:wpaper:05&r=ino |
| By: | Matthieu Glachant |
| Abstract: | The objective of the paper is to lay out the state of knowledge on the role of innovation and the diffusion of technologies in the greening of global value chains as well as some of the main policy issues and key research gaps1. A special emphasis will be put on developing countries in which innovation, skills and technological absorptive capacities tend to be lower while green technologies are urgently needed. The structure of the paper is extremely simple. In a first part, we give some concepts and definitions on technology, innovation, and the channels of technology diffusion. In a second part, we use various statistics (green patents, trade flows, and foreign direct investments) and illustrative examples to describe how technology and knowledge is created today and disseminated across countries. For data reasons, we mostly focus on climate-mitigation technologies, but there are good reasons to think that other green technologies do not significantly differ from the “average” climate mitigation technology. Then, we list and discuss key policy challenges (the role of environmental policies, intellectual property rights, capacity building, etc.). The conclusion summarizes the main lessons. |
| Date: | 2013–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2013/5-en&r=ino |
| By: | Christopher HERBEZ (Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO) |
| Abstract: | Disney s’impose comme chef de file de l’oligopole du domaine des loisirs et du divertissement, grâce notamment à sa section Parcs et Loisirs. Ce statut n’est pas dû à son seul succès américain mais à une stratégie d’implantation mondiale. Ainsi, Disney impose son pouvoir aux quatre coins du globe en proposant un ensemble de parcs à l’image de la marque. Cette mondialisation est le résultat de multiples innovations d’adaptation aux cultures locales et régionales. Mais, qu’est-ce qu’une innovation d’adaptation ? Disney wins its oligopolistic dominance in the leisure and entertainment industry thanks to its Parks and Resorts section. This status is not only owed to its success in the U.S. but also a strategy of global presence. Thus, Disney imposes its authority across the globe by offering a series of parks of its brand image. This globalization is the result of many innovations to adapt to local and regional cultures. But, what is an innovation of adaptation? |
| Keywords: | Innovation d’adaptation, Oligopole, Disney |
| JEL: | O31 D4 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:262&r=ino |
| By: | Francesco Paolo Appio (Istituto di Management - Scuola Superiore Sant’Anna, Pisa); Bart Van Looy (Faculty of Business and Economics - Katholieke Universiteit Leuven); Alberto Di Minin (Istituto di Management - Scuola Superiore Sant’Anna, Pisa) |
| Abstract: | Outlining and characterizing the antecedents of Radical Innovation is the only way to unveil the complex traits of the path to those innovations that dramatically and irreversibly alter the status quo of the economic and industrial context and structure in which they come to life. The two brief accounts presented in this paper attempt to sketch the paths characterizing both the discovery of DNA structure and the invention of DSL. By digging into the chain of historical events, we aim at understanding the role of time in nurturing ex ante radicalness, the technological combinatorial evolution unchained by different degrees of knowledge recombination, the importance of forgotten and unpublished discoveries, the influence of experimental systems in determining the course of scientific and technological developments, the role of market and technological attributes in redefining the boundaries of industries, the more than often neglected role of the personality of inventors. Accordingly, a number of propositions are advanced and implications concerning ex ante indicators building, policy and ingredients of innovative processes discussed. |
| Keywords: | antecedents of radical innovation, innovation process, knowledge recombination, socio-technical dynamics, DNA, DSL |
| Date: | 2013–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:sse:wpaper:201303&r=ino |
| By: | Puzon, Klarizze |
| Abstract: | This study proposes a new mechanism for the resource curse: crowding-out of innovation due to the existence of an option to engage in conflict. Using a game theoretical framework, it is argued that an increase in the amount of natural resources (in the informal sector where conflict for a common-pool rent materializes) reduces the incentives of entrepreneurial groups to engage in cost-reducing R&D (in the non-resource sector where production occurs). Compared to most models of the resource curse, the impact of resource abundance on income and welfare was interestingly observed to be non-monotonic. An increase in the amount of resources in the common pool induces intensified conflict among groups and less R&D investment. Depending on the relative strengths of the income and diversion effects, three scenarios were exhibited. First, there is a 1.) Pure Blessing. This happens when both the extent of technological spillovers and the initial level of resource are low. Starting from scarcity, the increase in natural resource generates an overall jump in the groups' income levels. Even if an increase in resources decreases innovation in the formal sector, both income and welfare still go up. Meanwhile, for intermediate initial values of the natural resource, there is a 2.) Pseudo-curse. A resource boom induces an immediate income effect. However, this income gain is dominated by the indirect diversion effect due to lower output and higher price (because of less cost-reducing R&D). Consequently, while income increases, the welfare of the economy decreases. The range of resource levels where this occurs is greater when spillovers are high. Finally, a 3.) Double Curse occurs for extremely high initial levels of natural resources. Both aggregate income of the economy and welfare suffer. -- |
| Keywords: | innovation,appropriation,natural resources,conflict |
| JEL: | O13 Q33 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:71189&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); Cook , Gary (University of Liverpool); Johansson, Börje (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | In this paper we investigate how various innovation strategies, local knowledge sources and global knowledge pipe-lines influence the likelihood that a firm will be a persistent exporter and the productivity growth of such persistently exporting firms. Using a bivariate logit model and a dynamic GMM panel data estimator on Swedish manufacturing firms observed over 12 years, we find that the propensity to be a persistent exporter is strongly related to both highly frequent and more temporary innovativeness and the global openness of the regional industry in the firm’s own line of activity. The growth rate in total factor productivity of persistent exporters, however, increases with intensity of invention activities, accessibility to local business services and the openness of the same regional industry in which the firm operates. |
| Keywords: | Invention; innovation; productivity growth; exports; spillovers; persistence |
| JEL: | F21 O30 O31 R11 |
| Date: | 2013–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0303&r=ino |
| By: | Keun Lee and John Mathews |
| Abstract: | The paper argues that science, technology and innovation (STI) play a critical role in expediting transition to a sustainable mode of development. Latecomer nations suffer from several disadvantages as they attempt to catch-up with the technological leaders, but they can enjoy latecomer advantages, if appropriate strategies are formulated and executed. One of the key concepts is leapfrogging, whereby the latecomers absorb what the technological leaders have to offer and leap to a new environment-friendly techno-economic paradigm. To facilitate such leap, the current intellectual-property-rights regimes need to evolve to one that fosters technology diffusion and greater use of intellectual property. |
| Keywords: | leapfrogging, environment-friendly tech-economic paradigm, public-private partnership, Trade Related Aspects of Intellectual Property Rights |
| JEL: | L52 O32 O34 O38 O53 O55 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:une:cpaper:016&r=ino |
| By: | Panagiotis Kampylis Author-1-Name-First: Panagiotis Author-1-Name-Last: Kampylis (European Commission – JRC - IPTS); Stefania Bocconi Author-2-Name-First: Stefania Author-2-Name-Last: Bocconi (European Commission – JRC - IPTS); Yves Punie Author-3-Name-First: Yves Author-3-Name-Last: Punie (European Commission – JRC - IPTS) |
| Abstract: | ICT is regarded as a key enabler of innovation and creativity in E&T and for learning at large. Based on desk research and on previous JRC-IPTS studies, this report provides a definition and classification of ICT-enabled innovation for learning that has significant scale and/or impact at system level, both within formal Education and Training and outside formal settings. A mapping framework is also proposed that can be used for an in-depth analysis of existing initiatives showing how ICT-enabled innovation is implemented on a large scale. Finally, the report provides a preliminary application of four diverse initiatives on the proposed mapping framework. |
| Keywords: | Europe 2020 Strategy, Learning, Skilling, Innovation & Creativity in Education and Training, ICT-enabled innovation for learning, classifications of innovation for learning, mapping framework of ICT-enabled innovation for learning, Creative Classrooms |
| JEL: | I20 I28 I29 I21 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc72277&r=ino |
| By: | Fei Yu (Business School, University of Western Australia); Yanrui Wu (Business School, University of Western Australia) |
| Abstract: | This paper examines US patent citation data and analyzes how different firms in China affect knowledge spillovers. Patents granted by the US patent office to inventors located in China are collected along with their citation counts. Two kinds of patent citations, namely, citations of previous patents and those of non-patent literature, are used to measure knowledge flows. In the empirical analysis, the negative binomial and zero-inflated count models are considered. The regression results suggest the existence of heterogeneity among firms of different ownership. In terms of knowledge spillovers, US multinational corporations (MNC) perform better than those from other western countries; Taiwanese companies outperform their counterparts from Hong Kong; and Chinese private corporations contribute more than Chinese state-owned enterprises (SOEs). These results have important policy implications for the development of a knowledge-intensive economy in China. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:13-08&r=ino |
| By: | Agenor, Pierre-Richard; Dinh, Hinh T. |
| Abstract: | This paper studies the role of public policy in promoting industrial transformation from an imitationbased, low-skill economy to an innovation-based, high-skill economy, where technological progress now occurs through the domestic invention of ideas. Industrial transformation is measured by changes in an index of industrial structure, defined as the ratio of the variety of imitation- to innovation-based intermediate goods. A key mechanism through which productivity increases initially in both the imitation and innovation sectors is through a knowledge externality associated with learning by doing in the imitation sector. The process of industrialization increases the demand for high-skill labor, inducing individuals to invest in education. The model also emphasizes the distinction between basic or core infrastructure, which promotes imitation, and advanced infrastructure, which promotes innovation. A calibrated version for a low-income country is used to perform several policy experiments, including an increase in investment in infrastructure, a reduction in the cost of training, and improved enforcement of property rights. |
| Keywords: | Labor Policies,Economic Theory&Research,Political Economy,Debt Markets,Labor Markets |
| Date: | 2013–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6405&r=ino |
| By: | Aoki, Reiko; Arai, Yasuhiro |
| Abstract: | We present a framework to examine how a standard evolves when a standard consortium or a firm (incumbent) innovates either to improve the standard or to strengthen installed base which increases switching cost. Both investments make it more difficult for another firm (entrant) to introduce a standard, also by investing in technology improvement. We show that incumbent's strategy will differ according to if the technology is in infancy or it has matured. The incumbent will deter entry when the technology is in infancy and return from investment is high. In this case ability to raise switching cost is important since entrant also has low cost. If the technology is mature and return to investment is low, then incumbent will choose to allow entry and there is co-existence of two standards. Replacement of standard by the entrant never occurs in equilibrium. |
| Keywords: | standards, innovation, installed base |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cisdps:601&r=ino |
| By: | Ernest Miguélez (Economics and Statistics Division, World Intellectual Property Organization and Faculty of Economics, University of Barcelona); Rorina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | The aim of the present paper is to identify the determinants of the geographical mobility of skilled individuals, such as inventors, across European regions. Their mobility contributes to the geographical diffusion of knowledge and reshapes the geography of talent. We test whether geography, amenities, job opportunities and social proximity between inventors’ communities, and the so-called National System of Innovation, drive in- and out-flows of inventors between pairs of regions. We use a control function approach to address the endogenous nature of social proximity, and zero-inflated negative binomial models to accommodate our estimations to the count nature of the dependent variable and the high number of zeros it contains. Our results highlight the importance of physical proximity in driving the mobility patterns of inventors. However, job opportunities, social and institutional relations, and technological and cultural proximity also play key roles in mediating this phenomenon. |
| Keywords: | inventors’ mobility, gravity model, amenities, job opportunities, social and institutional proximities, zero-inflated negative binomial, European regions. JEL classification: C8, J61, O31, O33, R0 |
| Date: | 2012–02 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201203&r=ino |
| By: | Olivier Hueber (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)) |
| Abstract: | Sophia Antipolis was created by the public authorities to attract high value added activities on the French Riviera, in the aim of strengthening a local economy driven historically by tourism. The theoretical model that has inspired the creation of Sophia Antipolis is governed by a top-down approach. The agglomerations externalities, had not sprung up naturally from the dynamics of entreprises located in the cluster. The economic model of Sophia Antipolis is completely different of the traditional innovative district studied by Alfred Marshall (bottom-up approach). Nowadays, the cluster of Sophia-Antipolis is rich of external linkages, but poor of internal relations between the firms. In this local system of Innovation, a large numbers of actors in different sectors are present but any of them is sufficiently dominant to drive the cluster orientations. In this sense, this Local System of Innovation (LSI) is not reliable in the long run. Very few, almost no technological collaborations can be observed. The sustainability of the Sophia-Antipolis cluster does not really depend on the territory. the weakness of the cooperation between companies of the cluster can be partially explained by the local multinational firms which have their branch facilities located in the local system of innovation but at the same time their head office external to the cluster with main decision taken from outside, limiting the potential for local synergies and local collaboration. The aim of this paper is to understand the coordination mechanisms between enterprises and the main factors of success who made Sophia-Antipolis the largest technology park in the Europe. Such a study presents the Top-down strategy of developpement choosen by the government from the origins of Sophia-Antipolis to promote agglomeration externalities and the increasing returns to adoption gained by firms entering in the park. |
| Keywords: | clusters;entrepreneurship;innovative pole;network externality;agglomeration effect;Top-down;bottom-up |
| Date: | 2012–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00806571&r=ino |
| By: | Sen, Debapriya; Stamatopoulos, Giorgos |
| Abstract: | Patent licensing agreements among competing firms usually involve royalties which are often considered to be anticompetitive as they raise market prices. In this paper we propose simple tax policies than can alleviate the effect of royalties. Considering a Cournot duopoly where firms produce under decreasing returns and trade a patented technology, we show that the interaction of royalties with decreasing returns may generate the counter-intuitive result that market prices decrease in the magnitude of diseconomies of scale. In such cases there exist progressive quantity taxes on firms that weaken the effect of royalties and lower the market prices. These taxes collect sufficient revenue to compensate firms for their losses. As a result, it is possible to design deficit neutral tax-transfer schemes that strictly Pareto improve the welfare of consumers as well as firms. |
| Keywords: | Decreasing returns; patent licensing; royalty; progressive quantity tax; deficit neutrality |
| JEL: | D43 D45 H21 L24 |
| Date: | 2013–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:46246&r=ino |
| By: | David K. Levine |
| Abstract: | I discuss both the causes and consequences of the Internet being squeezed by copyright proponents. The striking fact is that while this squeeze has a broad and negative impact on society broadly, it brings very little benefit to the copyright proponents. The implication for the governance of the Internet is clear: a small minority who derive little benefit in an effort that imposes great costs on everyone else should not have a role in governance. |
| Keywords: | internet governance, copyright, piracy, downloading |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:rsc:rsceui:2013/24&r=ino |
| By: | Marc Bourreau (Telecom Paris); Paolo Lupi (AGCOM); Fabio Manenti (University of Padova) |
| Abstract: | We study how the migration from an old to a new technology is affected by the access price to the old technology. We show that both the incumbent and the regulator are willing to set a very high access price to accelerate consumers' migration to the new technology. When the quality of the old technology is exogenous and the entrant dominates investment in the new technology, the old technology is completely switched off in equilibrium, whereas the old technology persists when the incumbent dominates investment. When the incumbent can decide on an endogenous upgrade of the old technology, the migration to the new technology is slowed down, and the entrant might be foreclosed. |
| Keywords: | Access, Investment, Vertical differentiation, Multi-product firms. JEL Codes: L1, L51, L96. |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0158&r=ino |
| By: | Roberto Antonietti (University of Padova) |
| Abstract: | This paper assesses the existence of knowledge externalities in the form of creative human capital spillovers that affect firm innovative performance. Relying on a large sample of Italian manufacturing firms, a knowledge production function is estimated and the residuals regressed on regional creative workforce indicators interacted with spatial agglomeration variables and measures of knowledge transmission mechanisms. The estimates show that regional density of creative human capital has a positive effect on firm innovativeness only after a critical mass is achieved and only after accounting for the presence of local universities, industrial districts and entrepreneurial activities related to knowledge-intensive services. |
| Keywords: | creative human capital; innovativeness; knowledge production function; nonlinearity JEL: L60; O31; R10; R15 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0159&r=ino |
| By: | Shaolong WANG (Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO) |
| Abstract: | La Chine est actuellement le plus grand marché de smartphones dans le monde, même plus grand que les Etats-Unis. Cela fait beaucoup de vendeurs qui luttent pour accroître leur part de marché dans le pays. Par ailleurs, de plus en plus d’entreprises chinoises investissent dans la R&D de la téléphonie mobile, notamment à la production de smartphones afin de s’introduire sur ce marché. Ce document cherche à montrer l’importance du transfert de technologies et le développement de la téléphonie mobile en Chine prenant le cas du groupe Huawei Technologies Co. Ltd. Dans la première partie, il présente l’importance du marché chinois de la téléphonie mobile et les producteurs de téléphones mobiles en Chine. La deuxième partie présente le développement de la production des téléphones mobiles et la place de Huawei en Chine. La dernière partie explique l’importance et les limites d’une stratégie de croissance fondée sur les transferts de technologie. China is nowadays the biggest smart phone market in the world, even before the US. The sellers’ competition is intensifying as they try to increase their market share in China. Moreover, an increasing number of Chinese firms decide to invest in R&D to develop new models in particular new smart phones in order to gain their place in the Chinese market. This paper attempts to show the technology transfer and the development of mobile phone in China through the case of Huawei Technologies Co. Ltd.. In the first part, it presents the size of the Chinese mobile phone market and the producers in China. The second part analyses the development of the mobile phone manufacturing sector and the position of Huawei in China. The last part explains the importance and the limits of a growth strategy based on technology transfer. |
| Keywords: | transfert de technologie, smartphone, Chine, Huawei |
| JEL: | O3 L2 L9 O53 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:rii:riidoc:264&r=ino |
| By: | Fei Yu (Business School, University of Western Australia); Yanrui Wu (Business School, University of Western Australia) |
| Abstract: | This paper proposes a game theory model in which a foreign multinational corporation (MNC) and a domestic firm compete in the domestic market. In this model the domestic patent office could influence the firms’ profit curves by controlling the pendency and grant probability of the MNC’s patents. Hence, patent examination could be used implicitly or explicitly as a tool to protect the domestic firm and help it to catch up or even leapfrog ahead technologically. Numerical simulations are then conducted to identify potential features of such protection and to establish hypotheses for empirical testing using patent data from selected countries. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:13-07&r=ino |
| By: | Eduardo da Motta e Albuquerque (Cedeplar-UFMG) |
| Abstract: | This paper investigates Celso Furtado's elaboration on innovation. His book Criatividade e dependência na civilização industrial is the reference for this investigation. Furtado's approach on innovation is an opportunity to search his views about capitalism at the center of the system. Industrial civilization, led by the advanced capitalist countries, restraints creativity: this may be the starting point for Furtado's criticism of advanced capitalist societies. Therefore, from this interpretation of Criatividade e dependência na civilização industrial emerges an author that criticizes capitalism at its center - and this criticism might illuminate how the overcoming of underdevelopment should proceed. |
| Keywords: | innovation, capitalism, Celso Furtado |
| JEL: | O30 P10 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td470&r=ino |
| By: | Raouf Boucekkine (Aix-Marseille University (Aix-Marseille School of Economics, CNRS & EHESS, IRES and CORE, Université Catholique de Louvain.); Natali Hritonenko (Department of Mathematics, Prairie View A&M University); Yuri Yatsenko (Houston Baptist University) |
| Abstract: | Work significantly affects human life and health. Overworking may decrease the quality of life and cause direct economic losses. Technological innovations encourage modernization of firms’ capital and improve labor productivity in the workplace. The paper investigates the optimal individual choice of work intensity under improving technology embodied in new equipment leading to shorter lifetime of capital goods (obsolescence). The balanced growth trajectories are analyzed in this context to find out, in particular, how the optimal choice of work intensity is tied to the rate of embodied technological change. The impact of embodied technological advances on the work/life balance problem is discussed and their macroeconomic consequences are highlighted. |
| Keywords: | work-life balance, rational individual choice, technological development, vintage capital. |
| JEL: | D91 D92 O11 I10 C60 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1320&r=ino |