nep-ino New Economics Papers
on Innovation
Issue of 2013‒05‒22
twenty-two papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Patents and Cumulative Innovation: Causal Evidence from the Courts By Alberto Galasso; Mark Schankerman
  2. Multiproduct Multinationals and the Quality of Innovation By S. Bakhtiari; A. Minniti; A. Naghavi
  3. INNOVATION, REALLOCATION AND GROWTH By Daron Acemoglu; Ufuk Akcigit; Nicholas Bloom; William Kerr
  4. On the Origins of the Worldwide Surge in Patenting: An Industry Perspective on the R&D-Patent Relationship By Jérôme Danguy; Gaétan de Rassenfosse; Bruno van Pottelsberghe de la Potterie
  5. A framework for assessing innovation collaboration partners and its application to BRICs By Giuditta De Prato; Daniel Nepelski
  6. Clean-tech Innovation in Emerging Economies: Transnational Dimensions in Technological Innovation System Formation By Gosens, Jorrit; Lu, Yonglong; Coenen , Lars
  7. Knowledge Cumulability and Complementarity in the Knowledge Generation Function By Cristiano Antonelli; Alessandra Colombelli
  8. Systematic anchoring of global innovation processes and new industry formation – the emergence of on-site water recycling in China By Binz , Christian; Truffer , Bernhard; Coenen , Lars
  9. System Failures, Knowledge Bases and Regional Innovation Policies By Martin , Roman; Trippl , Michaela
  10. The internationalisation of R&D: sectoral and geographic patterns of cross-border investments By Castelli , Cristina; Castellani, Davide
  11. MNC affiliation, knowledge bases and involvement in global innovation networks By J. Herstad , Sverre; Ebersberger , Bernd; Asheim, Bjørn
  12. Why space matters in technological innovation systems – the global knowledge dynamics of membrane bioreactor technology By Binz , Christian; Truffer , Bernhard; Coenen , Lars
  13. Differentiated Knowledge Bases and the Nature of Innovation Networks By Martin , Roman
  14. Intellectual Property Rights and the Future of Universal Service Obligations in Communications By Christian Jaag
  15. From Technological Catch-up to Innovation : The Future of China’s GDP Growth By Shahid Yusuf
  16. Defining European ICT Poles of Excellence: A Literature Review By Giuditta De Prato; Daniel Nepelski
  17. Features of IP rights enforcement in Korea and China By Nomura, Takashi; Okada, Saori; Yoshizaki, Takeshi
  18. Renewal of mature industry in an old industrial region: regional innovation policy and the co-evolution of institutions and technology By Coenen , Lars; Moodysson , Jerker; Martin , Hanna
  19. Adoption et modèles de diffusion régionale de l’innovation dans les gouvernements locaux: le cas du développement de l’e-Gouvernement en Lorraine By Amel Attour
  20. Le rôle des connaissances architecturales dans l’élaboration de la plateforme technologique d’un écosystème en émergence: le cas des plateformes NFC By Amel Attour; Maëlle Della Peruta
  21. The speed of technological adoption under price competition: two-tier vs. one-tier industries By Maria Alipranti; Emmanuel Petrakis
  22. Going for Smart Growth : Making Research and Innovation Work for Bulgaria By World Bank

  1. By: Alberto Galasso; Mark Schankerman
    Abstract: Cumulative innovation is central to economic growth. Do patent rights facilitate or impede such follow-on innovation? This paper studies the effect of removing patent protection through court invalidation on the subsequent research related to the focal patent, as measured by later citations. We exploit random allocation of judges at the U.S. Court of Appeal for the Federal Circuit to control for the endogeneity of patent invalidation. We find that patent invalidation leads to a 50 percent increase in subsequent citations to the focal patent, on average, but the impact is highly heterogeneous. Patent rights appear to block follow-on innovation only in the technology fields of computers, electronics and medical instruments. Moreover, the effect is entirely driven by invalidation of patents owned by large patentees that triggers entry of small innovators, suggesting that patents may impede the 'democratization' of innovation.
    Keywords: patent rights, cumulative innovation, economics of innovation
    JEL: O33 O34 K41
    Date: 2013–04
  2. By: S. Bakhtiari; A. Minniti; A. Naghavi
    Abstract: This research sheds light on the role of product scope on the innovation activity of multinational multi-product firms. We use patent citation data to break down innovation into two types by measuring the degree to which innovation performed by firms is fundamental and the extent to which the output of the R&D can be spread across different product lines. We focus on two features in multinational production: (i) fundamental innovation is geographically more difficult to transfer abroad to foreign production sites, (ii) learning spillovers can occur from international operations. The results reveal that the second effect is more likely to dominate when a firm is active in more product lines. We argue that a more diversified portfolio of products increases a firm’s scope of learning from international operations, thereby enhancing its ability to engage in more fundamental research. In contrast, firms with less product lines that geographically separate production from innovation shift the innovation activities towards more specialized types of innovation.
    JEL: F12 F23 O31 O32
    Date: 2013–05
  3. By: Daron Acemoglu; Ufuk Akcigit; Nicholas Bloom; William Kerr
    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 53 of GDP reduces welfare by about 1.53 because it deters entry of new high-type firms. On the contrary, substantial improvements (of the order of 53 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
    Date: 2013–04
  4. By: Jérôme Danguy (Solvay Brussels School of Economics and Management, iCite and ECARES, Université libre de Bruxelles); Gaétan de Rassenfosse (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne); Bruno van Pottelsberghe de la Potterie (Solvay Brussels School of Economics and Management, iCite and ECARES, Université libre de Bruxelles)
    Abstract: This paper decomposes the R&D-patent relationship at the industry level to shed light on the sources of the worldwide surge in patent applications. The empirical analysis is based on a unique dataset that includes 5 patent indicators computed for 18 industries in 19 countries covering the period from 1987 to 2005. The analysis shows that variations in patent applications reflect not only variations in research productivity but also variations in the appropriability and filing strategies adopted by firms. The results also suggest that the patent explosion observed in several patent offices can be attributed to the greater globalization of intellectual property rights rather than to a surge in research productivity.
    Keywords: Appropriability, complexity, patent explosion, propensity to patent, research productivity, strategic patenting
    JEL: O30 O34 O38
    Date: 2013–04
  5. By: Giuditta De Prato (European Commission – JRC - IPTS); Daniel Nepelski (European Commission – JRC - IPTS)
    Abstract: In this paper, we develop a framework for assessing innovation collaboration partners. Based on the studies explaining the internationalisation of inventive activity, we identify four elements that are drivers of innovation collaboration: inventive capacity, technological specialization patterns, openness to international innovation collaboration and the economic potential of technology. In order to make the framework operational, we propose a set of patent-based indicators that capture the relevant elements. This way the proposed framework serves as a tool to both assess the potential of inventive collaboration and to anticipate benefits of such a collaboration. In a second step, we apply the framework to the analysis of the attractiveness of BRIC countries as potential partners for innovation collaboration. Our analysis shows that BRICs not only differ in terms of inventive performance, but also in terms of their openness to international collaboration, or the economic potential of technology developed by these countries.
    Keywords: collaborative innovation, science and technology collaboration, globalisation of technology, patent analysis, BRICs
    JEL: D8 F23 O14 O30 O57
    Date: 2012–01
  6. By: Gosens, Jorrit (State Key Lab of Urban and Regional Ecology, Research Center for Eco-Environmental Sciences, Chinese Academy of Sciences b Graduate University of the Chinese Academy of Sciences, China); Lu, Yonglong (a State Key Lab of Urban and Regional Ecology, Research Center for Eco-Environmental Sciences, Chinese Academy of Sciences); Coenen , Lars (CIRCLE, Lund University; Nordic Institute for Studies in Innovation, Research and Education (NIFU), Norway)
    Abstract: Emerging economies increasingly contribute to global clean-tech innovation. The ‘Technological Innovation System’ (TIS) framework and its system functions have become a popular analytical tool for clean-tech innovation. Its applicability to emerging economies is not entirely straightforward, however, because of two interconnected flaws. First, empirical TIS work has focused predominantly on advanced economies. Second, although TIS is theoretically understood to be a global phenomenon, empirical TIS work often uses national borders as system boundaries. Earlier perspectives on innovation in emerging economies have stressed the role of transnational linkages in (early) innovative activities in emerging economies. While implicitly acknowledged, the TIS literature lacks a systematic specification of these transnational linkages, how and under what conditions they form, and how they induce or hamper TIS formation. This paper draws on insights from the perspectives of National Learning Systems, International Technology Transfer, and Global Production Networks to elaborate on the transnational dimension of TIS formation in emerging economies. The insights these strand of literature offer on the challenges and opportunities of such transnational linkages may be accurately grasped by the seven TIS system functions, lending credence to further application of the TIS framework in emerging economy case studies.
    Keywords: Technological innovation system; clean-tech; emerging economies; changing global innovation
    JEL: O31
    Date: 2013–03–10
  7. By: Cristiano Antonelli; Alessandra Colombelli
    Abstract: This paper explores the role of external knowledge and internal stocks of knowledge in the generation of new technological knowledge. It relies on the notion of recombination and brings together three concepts: the appreciation of current expenses in R&D activities; the analysis of the role of the stock of knowledge composition; the identification of the role of external knowledge available in the regional proximity. The empirical section is based upon a panel of companies listed on the main European financial markets for the period 1995–2006. The econometric analysis considers patents as a measure of the knowledge output and, on the right hand side, next to R&D expenditures, the stock of knowledge internal and external to each firm. The results confirm that the stock of internal knowledge and the access to external knowledge play a key role in assessing the actual capability of each firm to generate new knowledge.
    Keywords: knowledge generation function, knowledge stock, external knowledge, path dependence
    JEL: O30
    Date: 2013–04
  8. By: Binz , Christian (Swiss Federal Institute of Aquatic Science and Technology, Dübendorf, Switzerland); Truffer , Bernhard (Swiss Federal Institute of Aquatic Science and Technology, Dübendorf, Switzerland); Coenen , Lars (CIRCLE, Lund University; Nordic Institute for Studies in Innovation, Research and Education (NIFU), Norway)
    Abstract: Understanding why and where emerging industries locate in today’s globalizing economy is a much debated topic, especially in the context of the recent evolutionary turn in economic geography. This paper proposes a new perspective based on the technological innovation system (TIS) approach. It argues that existing theories on industry formation could be extended with a systemic and multi-scalar view on the social construction processes in the very early industry formation phase. It hypothesizes that regions which successfully locate new industries combine the build-up of a territorial embedded TIS with drawing on innovation dynamics from other regions of a globally distributed TIS. A respective analytical framework is introduced and exemplified with a case study on on-site water recycling technology, based on interviews with 40 experts in Beijing, Shanghai and Xi’an, China. Our data suggests that a considerable on-site water recycling industry developed only in Beijing, which seen from existing theories on industry formation provided the least favorable initial conditions. Its success appears to be explainable with a local innovation system build-up process that recurrently and effectively anchored global TIS dynamics in its local context. We conclude by discussing how the proposed framework can enhance the understanding of industry formation and argue for a systemic innovation policy approach for supporting new industries
    Keywords: Industry formation; anchoring; technological innovation system; clean-tech industry; on-site water technology
    JEL: O31
    Date: 2013–03–03
  9. By: Martin , Roman (CIRCLE, Lund University); Trippl , Michaela (Department of Human Geography and CIRCLE, Lund University)
    Abstract: Regional innovation strategies rank on the top of public policy agendas today. There is a widespread consensus in both academic and policy circles that standardised “best practice” innovation policy models suffer from severe limitations and major shortcomings. The recent literature is replete with claims that regional innovation policies should be place-based and context-sensitive, taking into consideration the specificities of regions and their distinctive preconditions and capacities for innovation. Various conceptual approaches and theories support such a view. This paper discusses two concepts, which have a particularly strong potential for informing a differentiated regional innovation policy approach; the regional innovation system (RIS) theory and the knowledge base concept. The RIS literature highlights the importance of the organisational and institutional setting of a region and suggests that system deficiencies or failures should constitute the starting point for designing regional innovation policies. The differentiated knowledge base approach stresses that regional industries differ strongly in the underlying knowledge bases and, as a consequence, in their policy needs. We elaborate on the policy implications that originate from these concepts and argue that tailor-made regional innovation policies should consider both region-specific institutional set-ups and knowledge bases.
    Keywords: regional innovation policy; regional innovation system; differentiated knowledge bases
    JEL: L52 O21 O25 R11 R58
    Date: 2013–04–18
  10. By: Castelli , Cristina (Italian Trade Promotion Agency (ICE), Csil Milano); Castellani, Davide (University of Perugia, Italy; CIRCLE; Sweden; IWH and LdA)
    Abstract: This paper presents the sectoral and geographic distribution of R&D-related activities, in comparison with manufacturing activities, by analysing data (from the fDi Markets database) on the number of cross-border greenfield investment projects. Results show that crossborder R&D investments are concentrated in fewer sectors and countries (of origin and destination) than manufacturing, and they are less sensitive to the obstacles related with the distance between home and host countries. More than the two-thirds of all cross-border investments in R&D-related activities are in ICT/Electronic and Life Sciences/Chemicals sectors, but these sectors differ in their propensity towards R&D and Design, Development and Testing activities. Almost half of the investments is due to multinationals from North America, and over one third from Western Europe, but the two areas show a different sectoral specialization. Considering the areas of destination, Asia is the largest recipient, and specializes in the ICT/Electronics and Industrial Machinery, while Western Europe ranks second and attracts relatively more research investments in Life Sciences/Chemicals, as well as in the Machinery industry
    Keywords: Internazionalization of R&D; Multinational Firms; Europe; North America; Asia
    JEL: F23 L23 O30
    Date: 2013–03–03
  11. By: J. Herstad , Sverre (Nordic Institute for Studies in Innovation, Research and Education (NIFU), Oslo; CIRCLE, Lund University); Ebersberger , Bernd (MCI Management Center Innsbruck,Austria); Asheim, Bjørn (CIRCLE, Lund University)
    Abstract: Innovation collaboration is subjected to partner search and selection constraints. These constraints are reinforced by geographical distance, and mediated by privileged information accessed through pre-existing formal and informal ties to foreign business contexts. Multinational corporations may therefore influence the collaborative linkages maintained by their affiliates abroad, outside the group network. This paper shows that the sensitivity of foreign collaboration to resources provided by the parent group is dependent on whether affiliates of the multinational are engaged in developing cross-disciplinary, application-specific technological knowledge with a strong tacit content (e.g. systems engineering), knowledge with a strong aesthetic of cultural content (e.g. media or fashion) or knowledge dominated by specific scientific disciplines (e.g. biotechnology).
    Keywords: Multinational corporations; industrial knowledge bases; innovation collaboration; globalization
    JEL: F23 L24 O32
    Date: 2013–03–03
  12. By: Binz , Christian (Swiss Federal Institute of Aquatic Science and Technology, Dübendorf, Switzerland); Truffer , Bernhard (Swiss Federal Institute of Aquatic Science and Technology, Dübendorf, Switzerland); Coenen , Lars (CIRCLE, Lund University; Nordic Institute for Studies in Innovation, Research and Education (NIFU), Norway)
    Abstract: Studies on technological innovation systems (TIS) often set spatial boundaries at the national level and treat supranational levels as a geographically undifferentiated and freely accessible global technological opportunity set. This article criticizes this conceptualization and proposes instead to analyze relevant actors, networks and processes in TIS from a relational perspective on space. It develops an analytical framework which allows investigating innovation processes (or ‘functions’) of a TIS at and across different spatial scales. Based on social network analysis of a co-publication dataset from membrane bioreactor technology, we illustrate how the spatial characteristics of collaborations in knowledge creation vary greatly over relatively short periods of time. This finding suggests that TIS studies should be more reflexive on system boundary setting both regarding the identification and analysis of core processes as well as in the formulation of policy advice.
    Keywords: technological innovation system; relational space; system functions; knowledge creation; social network analysis; membrane bioreactor technology
    JEL: O31 Q55
    Date: 2013–03–16
  13. By: Martin , Roman (CIRCLE, Lund University)
    Abstract: It is argued in this paper that the nature of innovation networks can vary substantially with regard to the type of knowledge that is critical for innovation. Subject to the knowledge base of an industry, networks between companies can differ in various aspects, such as their geographical configuration, their structure, the type of actors holding a strategic position and the type of relations between actors. The paper comprises a conceptual discussion on social capital theory and networks, followed by a theoretically informed discussion on differentiated knowledge bases and innovation networks, which is subsequently illustrated with empirical material. The empirical analysis is based on social network analysis in association with exclusive data about patterns of cooperation and knowledge exchange in a number of regional industries located in different parts of Europe. The findings suggest that networks in analytical industries are not much constrained by geographical distance; knowledge is exchanged in a highly selective manner between research units and scientists in globally configured epistemic communities. Synthetic industries source knowledge within nationally or regionally configured networks between suppliers and customers, and within communities of practice. Symbolic industries rely on knowledge that is culturally defined and highly context specific, resulting in localised networks that are temporary and flexible in nature.
    Keywords: differentiated knowledge bases; regional innovation systems; social capital; social network analysis; knowledge networks
    JEL: B52 O25 P51 R11 R12 R58
    Date: 2013–05–03
  14. By: Christian Jaag
    Abstract: Network industries are traditionally strongly influenced by sector-specific regulation; especially universal service obligations (USO) play an important role. In these sectors, USO impact market forces by shaping competition asymmetrically. They also interfere with other regulations such as intellectual property laws which are of increasing importance in these industries. This interaction has recently become of interest in the postal sector due to its recent convergence with telecommunications and the emergence of innovative services at the interface of the two sectors. In free markets, the design of intellectual property right trades off investment incentives against market distortions due to (temporary) exclusive rights. USO distort competition and thereby affect the optimal solution of this trade-off. The paper discusses various aspects of the influence of patents on universal service provision. It also illustrates these effects by means of a simple model of an innovation race under asymmetric regulation and with forced licensing to derive regulatory and policy implications to safeguard a cost-effective and consumer-oriented provision of universal services.
    Keywords: Universal service obligation, Communications, Intellectual Property
    JEL: L51 O34
    Date: 2013–05
  15. By: Shahid Yusuf
    Keywords: Information and Communication Technologies - ICT Policy and Strategies Private Sector Development - E-Business Technology Industry Social Protections and Labor - Labor Policies Education - Knowledge for Development Industry
    Date: 2012–01
  16. By: Giuditta De Prato (Institute for Prospective Technological Studies, Joint Research Centre, European Commission); Daniel Nepelski (Institute for Prospective Technological Studies, Joint Research Centre, European Commission)
    Abstract: The Commission Communication entitled "A Strategy for ICT R&D and Innovation in Europe: Raising the Game" proposes reinforcing Europe's industrial and technology leadership in ICT. Building on Europe's assets, the Communication anticipates a landscape where, by 2020, "(…) Europe has nurtured an additional five ICT poles of world-class excellence (…)". This study attempts to identify ICT R&D&I-related agglomeration economies in Europe that would meet world-level excellence, and to identify weak signals that would indicate the dynamics of a changing ICT-related economic geography in Europe. Both of those identification processes are based on quantitative data, built on a set of relevant criteria leading to measurable indicators. The study is developed around several tasks, the results of which are presented in a series of IPTS working papers. This first Working Paper synthesises the conclusions of the conceptual and empirical literature review that was carried out both at the beginning of the study. It summarises the most prominent concepts discussed in the relevant literature, the methods that were developed and leads to a definition of the European ICT Poles of Excellence that will guide later work.
    Keywords: ICT, excellence, poles of excellence
    Date: 2013–01
  17. By: Nomura, Takashi; Okada, Saori; Yoshizaki, Takeshi
    Abstract: This report examines recent updates to the regulation and enforcement of intellectual property (IP) rights in Korea and China, in particular patent rights including invention, utility, and design rights. This paper also discusses some features and issues of the actual IP enforcement situation in those countries in comparison with Japan.
    Keywords: East Asia, South Korea, China, Intellectual property, Patents, Industrial property law, Copyrights, IP enforcement, Korea
    JEL: K33 K41 K42
    Date: 2013–04
  18. By: Coenen , Lars (Nordic Institute for Studies in Innovation, Research and Education (NIFU), Oslo; CIRCLE, Lund University); Moodysson , Jerker (CIRCLE, Lund University); Martin , Hanna (CIRCLE, Lund University)
    Abstract: The objective of this paper is to further insights on the potentials and barriers for industrial renewal in locked-in regions and industries. To do so, the paper analyzes the Swedish policy program ‘Biorefinery of the Future’ (BioF). This initiative is geared to develop a strong regional innovation environment for forestry-based biorefinery development in the area of Örnköldsvik and Umeå in Northern Sweden. Theoretically, the paper draws on concepts from evolutionary economic geography regarding path-dependence, related variety and lockin, and combines these with institutional approaches found in science and technology studies to explain disruptive shifts or transitions in socio-technical systems.
    Keywords: Regional Innovation Policy; Old Industrial Regions; Evolutionary Economic Geography; Socio-technical Transitions
    JEL: O33 O38
    Date: 2013–05–06
  19. By: Amel Attour
    Abstract: Cette recherche analyse les déterminants à l’origine de l’adoption de l’e-Gouvernement par les communes. Comme le met en évidence la littérature empirique, la mise en place d’une offre de services numériques est conjointement déterminée par les caractéristiques internes aux communes et par un effet d’apprentissage informationnel par l’observation des communes géographiquement voisines ou similaires en taille de population. Comme contribue à le montrer le présent article, analysé au niveau des communes d’appartenance départementale similaire, l’influence de ces déterminants sur le choix d’adoption de l’e-Gouvernement local est spécifique au territoire. L’adoption de l’e-Gouvernement par les communes peut en effet être expliquée par une logique de diffusion verticale, en plus d’une logique d’imitation par apprentissage observationnel des communes géographiquement voisines. L’adoption de l’e-Gouvernement par les communes relève en effet de modèles de diffusion régionale différents selon la taille des communes.
    Keywords: Innovation de politique publique, e-Gouvernement local, modèles de diffusion régionale de l’innovation (theory of diffusion policy), communes.
    JEL: L86 L88 M15 O32 R58
    Date: 2013–04
  20. By: Amel Attour; Maëlle Della Peruta
    Abstract: Cette recherche met l’accent sur les conditions relatives à l’élaboration d’une plateforme technologique dans l’objectif d’identifier quelle en est, ou quelles en sont, les composantes clefs structurant l’émergence d’un écosystème d’affaires. Elle mobilise pour cela la théorie de l’innovation architecturale (Henderson et Clark, 1990 ; Anderson et al. 2008). Elle s’inscrit dans une démarche de recherche abductive par l’observation participante et propose une grille d’analyse utile à l’identification des prérogatives essentielles à la construction des plateformes technologiques. Testée dans le cadre d’une étude de cas contemplative (Savall et Zardet, 2004), cette grille d’analyse permet de montrer comment la dimension relationnelle des connaissances architecturales facilite l’élaboration des plateformes technologiques de type supply chain dont l’évolution vers la forme industrielle relève en revanche des trois autres dimensions des connaissances architecturales. Du point de vue managérial enfin, cette grille d’analyse facilite aux praticiens l’identification de leur positionnement stratégique et leur rôle dans le processus de conception d’une plateforme technologique.
    Keywords: plateforme technologique, écosystèmes d’affaires, innovations architecturales, connaissances architecturales, NFC
    JEL: L21 L22 L29 L86 M21
    Date: 2013–04
  21. By: Maria Alipranti (University of Crete); Emmanuel Petrakis (Department of Economics, University of Crete, Greece)
    Abstract: The present paper examines the firms' incentives to adopt a new cost reducing technology in vertically related markets, as well as, the effects of the vertical relations on the firms' timing of adoption. It demonstrates that in vertically related industries, independently of the upstream market structure (either upstream separate firms or upstream monopoly), downstream firms always have strong incentives to adopt the new technology, while in equilibrium there is technology diffusion. Further, comparing the speed of the firms' technology adoption in one-tier and two-tier industries, we show that, independently of the upstream market structure, technology adoption may occurs earlier in two-tier than in one-tier industries depending on the intensity of the final market competition, the drasticity of the new technology and the bargaining power distribution in the market.
    Keywords: Technology adoption, Vertical relations, Two-part tariffs, Product Differentiation
    JEL: L13 O31 L22 L41
    Date: 2012–12–01
  22. By: World Bank
    Keywords: Information and Communication Technologies - ICT Policy and Strategies Agricultural Knowledge and Information Systems Private Sector Development - E-Business Tertiary Education Environmental Economics and Policies Education Environment Agriculture
    Date: 2012–01

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