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on Innovation |
| By: | Arias Ortiz, Elena (Education Division, Inter-American Development Bank); Crespi, Gustavo (Competitiveness and Innovation Division, Inter-American Development Bank); Tacsir, Ezequiel (UNU-MERIT / MGSoG, and Competitiveness and Innovation Division, Inter-American Development Bank); Vargas, Fernando (Competitiveness and Innovation Division, Inter-American Development Bank); Zuniga, Pluvia (UNU-MERIT / MGSoG) |
| Abstract: | In this paper, a wide range of innovation indicators are analysed in order to describe the innovation behaviour of manufacturing firms in LAC using the recently released Enterprise Surveys 2010. The Enterprise Surveys define innovation rates as the share of firms introducing product and process innovations. The survey also measures the proportion of firms investing in research and development (R&D) and filing for intellectual property rights (IPRs). The aim of this note is to understand the main characteristics of innovative firms and to gather new evidence with regard to the nature of the innovation process in the region. Statistics about the performance of LAC firms are provided using different types of indicators to measure firms' innovative behaviour. In particular, differences in innovation performance and effort by country, sector, and key firm characteristics, such as being a multinational or exporter, are explored. Those firms in LAC that are top R&D performers are identified, and the analysis closes with an exploration of firm characteristics that strongly correlate with the probability of being a top R&D performer in the region. |
| Keywords: | innovation, research and development, Latin America, enterprise surveys |
| JEL: | D22 O31 O33 O34 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013028&r=ino |
| By: | Bernhard Dachs; Bernd Ebersberger |
| Abstract: | A strong innovation performance based on R&D, product development and the implementation of advanced production technologies is key for the long-term competitiveness of European economies. This study investigates the effects of production offshoring on R&D and innovation activities of the firm in the home country. The analysis is based on a dataset of more than 3000 manufacturing firms from seven European countries. We employ propensity score matching to compare R&D and innovation activities of firms which have offshored production activities in a previous period to a control group of non-offshoring firms. The analysis finds no negative effect of production offshoring on innovation and technological capabilities of firms in the home country. On contrary, offshoring firms spend significantly more on R&D or product design, and invest more in process innovation than non-offshoring firms. These results support a view on internationalisation of firms that regards offshoring as a strategy of international expansion, and not a passive reaction of firms to a loss of their competitiveness. Our results indicate that this expansion goes hand in hand with innovation and process modernization at home. |
| Keywords: | offshoring, innovation, R&D, home country effects, investment |
| JEL: | F23 O31 O33 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:ecbook:2013:i:v-001&r=ino |
| By: | Ana Paula Faria (Universidade do Minho - NIPE); Natália Barbosa (Universidade do Minho - NIPE); Vasco Eiriz (Universidade do Minho - Departamento de Gestão) |
| Abstract: | This paper investigates the geographical distribution and concentration of firms’ innovation persistence and innovation type - product and process - based upon three waves of the Community Innovation Survey data covering the period 1998-2006. The main findings are: (i) both innovation persistence and innovation type are asymmetrically distributed across Portuguese regions; (ii) the degree of correlation between geographical location and innovative output varies with the innovation type; and (iii); the correlation between geographical unit and innovation increases when the spatial unit of analysis is narrower. Overall, results indicate that firm’s choice of geographical location have a long-lasting effect, engendering no equal probabilities of being persistently innovator. |
| Keywords: | product innovation, process innovation, persistence, location |
| JEL: | O31 L25 R11 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:12/2013&r=ino |
| By: | Tiwari, Amaresh K. (University of Liege); Mohnen, Pierre (UNU-MERIT / MGSoG, SBE, Maastricht University, and CIRANO); Palm, Franz (SBE, Maastricht University and CESifo); Schim van der Loeff, Sybrand (SBE, Maastricht University) |
| Abstract: | Using Dutch data we empirically investigate how financing and innovation vary across firm characteristics. We find that when firms face financial constraints, debt financing and innovation choices are not independent of firm characteristics, and R&D slows down. In the absence of financial constraints, however, as they raise debt, firms become less inclined to innovate and the change in the propensity to innovate no longer varies with firm characteristics. We find that financing constraints faced, propensity to innovate, and R&D intensity are not uniform across firm characteristics. A new 'Control Function' estimator to account for heterogeneity and endogeneity has been developed. |
| Keywords: | Innovation, R&D, Capital Structure, Financial Constraints, Firm Characteristics, Correlated Random Effects, Control Function, Expected a Posteriori |
| JEL: | G30 O30 C30 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013027&r=ino |
| By: | Christoph Engel (Max Planck Institute for Research on Collective Goods, Bonn); Marco Kleine (Max Planck Institute for Research on Collective Goods, Bonn) |
| Abstract: | In the policy debate, intellectual property is often justified by what seems to be a straightforward argument: if innovators are not protected against others appropriating their ideas, incentives for innovation are suboptimally low. Now in most industries for most potential users, appropriating a foreign innovation is itself an investment decision fraught with cost and risk. Nonetheless standard theory predicts too little innovation. Arguably the problem is exacerbated by innovators’ risk aversion as well as their aversion against others benefitting from their efforts without contributing to the cost, and without bearing innovation risk. We model the situation as a game and test it in the lab. We find even more appropriation than predicted by standard theory. But the risk and the experience of appropriation does not deter innovation. We find even more innovation than predicted by theory, and actually more than would be efficient. In the lab, the prospect of givingimitators a free lunch does not have a chilling effect on innovation. |
| Keywords: | Innovation, imitation, appropriation, patent, fairness of desert |
| JEL: | H41 O31 D63 K11 C91 D62 H23 L17 D22 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2013_07&r=ino |
| By: | Pellegrino, Gabriele (University of Barcelona, and Università Cattolica del Sacro Cuore, Piacenza and Milano); Savona, Maria (SPRU, University of Sussex,) |
| Abstract: | The paper adds to the scattered empirical evidence on the role of obstacles to innovation in a three-fold way. First, we correct for the usual sample selection bias by filtering out firms not interested in innovation from 'potential innovators'. We then analyse the impact of obstacles on the translation of firms' engagement in innovative activities onto actual innovative outputs. Second, we assess what mostly affects firms' rate of failure in this process, whether finance or, rather, knowledge or demand-related constraints. Third, we do so in a panel framework, which allows to account for endogeneity and firms' unobserved heterogeneity through individual effects. We find that demand- and market-related factors are as important as financing conditions in determining firms' innovation failures. This evidence puts much of the latest hype on finance in perspective and brings back into the picture traditional demand and market structure arguments of why firms fail to innovate. The empirical analysis is based on an unbalanced panel of firm data from four waves of the UK Community Innovation Survey (CIS) between 2002 and 2010 merged with the UK Business Structure Database. |
| Keywords: | Barriers to innovation, Innovative firms, Potential Innovators, Failed Innovators, Panel data |
| JEL: | C23 O31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2013029&r=ino |
| By: | Jang, Heesun; Du, Xiaodong |
| Abstract: | Employing the patent data over 1977-2011, this study explores the factors determining innovative activities in the US ethanol industry. We take into account both demand-side and supply-side factors, the latter of which is represented by constructed knowledge stocks, to quantify the effects of price- and policy-induced innovations. We quantify the citation generation process using patent citations and construct the simple and weighted stocks of knowledge with weights of patent productivity. We confirm that both the supply-the demand-side factors, such as knowledge stock, crude oil price and government R&D expenditure, have positive and statistically significant effects on the technological innovations of biofuels in the United States. |
| Keywords: | knowledge stock, patent count and citation, R&D expenditure, Demand and Price Analysis, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy, Q16, Q42, Q48, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150132&r=ino |
| By: | Richards, Timothy J.; Rickard, Bradley |
| Abstract: | Enabled by the Bayh-Dole Act (1980), universities license access to innovations protected by US patents. Despite the growing importance of license revenue to cash- strapped land-grant universities that generate a large share of agricultural innovations, there has been no formal attempt to determine an optimal pricing strategy for patent licenses. We recognize that patents are options on the stream of future revenues, and apply option-valuation techniques to determine optimal pricing strategies for university technology o¢ cers. We nd that path-dependency in license revenue streams creates signi cant di¤erences in the optimal pricing strategy relative to more standard risk- neutral pricing models, but that path-dependent pricing more nearly approximates ob- served patent prices. While non-path dependent prices yield conventional sensitivities to volatility, mean-reversion and returns-growth, path-dependent prices show highly non-linear comparative statics. These results are important both for patent licensees, and for licensors seeking to maximize license revenue. |
| Keywords: | apples, patents, option pricing, Bayh-Dole Act, innovation, licenses, option valuation, path-dependency, Industrial Organization, D45, G12, L24, Q16, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:149725&r=ino |
| By: | Chen, Yan; Zhang, Bin |
| Abstract: | This paper proposed a theoretical framework of innovation based on the perspective of ownership, and constructed an empirical research system of the relationship between ownership structure and innovation. In view of existing theme scattered and lack of interaction, this paper proposed a theoretical framework of the relationship between ownership structure and innovation which was regarded as a general theoretical framework for scholars in this domain. Meanwhile, this paper constructed an empirical research system of the relationship between ownership structure and innovation from the perspective of both ownership concentration and ownership types, which would be a beneficial reference for subsequent research. In the end, this paper shed light on future decision-making. |
| Keywords: | Ownership structure; Innovation; Theoretical framework; Research system |
| JEL: | D22 D23 M10 |
| Date: | 2013–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47078&r=ino |
| By: | Krogmann, Yin; Riedel, Nadine; Schwalbe, Ulrich |
| Abstract: | This paper analyses the inter-firm R&D network formed in the pharmaceutical biotechnology industry during the 1990s from different perspectives: theoretical network formation, firm's structural positions and its collaborations at the entire network level, and the determinants for firm's centrality-based partnering capability. The results indicate that pharmaceutical biotechnology industry has experienced a significant evolutional change in size and structure during 1991-1998. By considering individual structural positions, the descriptive statistics show that in the 1990s, established pharmaceutical companies developed into dominant star players with multiple partnerships while holding central roles in the R&D network. In the network analysis that emphasized aggregate network level, the degree-based and betweenness-based network centralization were not high implying that the distribution of overall positional advantages in the pharmaceutical biotechnology industry is, to a large degree, not unequal and even though most firms in this sector are linked to the R&D network, some of them are more active than others. The current analysis also shows that firm's efficiency, firm's dependency on its complementary resources and firm's experiences at managing partnerships are important determinants for firm's centrality-based partnering capability, which has important managerial implications for understanding firm's strategic partnering behaviour. -- |
| Keywords: | Inter-firm cooperation,R&D partnerships,Network formation,Social network analysis,Instrumental variable |
| JEL: | C12 C36 D85 L24 L65 O32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fziddp:752013&r=ino |
| By: | Anna Bottasso (Department of Economics, University of Genoa); Carolina Castagnetti (Department of Economics and Management, University of Pavia); Maurizio Conti (Department of Economics, University of Genoa) |
| Abstract: | Bottazzi and Peri (2007) show that the existence of a cointegrating relationship between the domestic stock of knowledge, domestic R&D and the international knowledge stock can be interpreted as evidence supporting the semi-endogenous growth models versus the endogenous growth ones. We replicate their study in a wide sense by analysing a slighlty wider sample of countries observed over a more recent time period and by estimating the cointegrating vector with an econometric methodology that is robust to cross sectional dependence. Our replication confirms Bottazzi and Peri’s main results but finds stronger spillover effects. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:pav:demwpp:demwp0045&r=ino |
| By: | Krzysztof Szczygielski; Wojciech Grabowski; Richard Woodward |
| Abstract: | Differences in the growth of firms remain a major topic in economics and strategy research.In this paper we investigated the link between innovation performance and employment growth. First we discuss the problem from the theoretical point of view and then we analyze the relationship between innovation performance and the dynamics of employment in the Polish service firms in 2004-2009. Firms that introduced new services or marketing techniques experienced stronger growth. Process innovations contributed to employment reduction. Tellingly, this effect could only be observed in 2008-2009, a subperiod which saw the lowest levels of aggregate demand. This conclusion yields support to the presumption formulated by Pianta (2005) that the impact of innovation on employment growth depends on the macroeconomic situation. |
| Keywords: | Technology Strategy, Poland, Services, Innovation |
| JEL: | L21 L8 O32 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0454&r=ino |
| By: | Christian Rupietta (Department of Business Administration, University of Zurich); Uschi Backes-Gellner (Department of Business Administration, University of Zurich) |
| Abstract: | Firms generate new knowledge that leads to innovations by recombining existing knowledge sources. A successful recombination depends on both the availability of a knowledge stock (human capital pool) that contains innovation-relevant knowledge and the regulation of the knowledge flow through the application of human resource management practices. However, while human resource theory expects complementarities between both the human capital pool and the human resource management system it does not explicitly address their implications for knowledge exchange. Moreover, empirical approaches neglect the complexity of complementarities between the two factors. This study analyzes complementarities within and between the human capital pool and the human resource management system and shows their implications for knowledge exchange. We empirically analyze these complementarities by applying fsQCA to identify taxonomies that explain superior innovation performance. We show that firms can achieve superior innovation performance through multiple and complex pathways. Our results show four taxonomies that substantially differ in terms of human capital diversity, application of human resource management practices and the environmental dynamism of the firm. |
| Keywords: | Human Resource Management, Human Capital, Innovation |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:iso:educat:0089&r=ino |
| By: | Sandra M. Leitner; Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | In the course of tapping into external funding sources, innovators frequently encounter binding and insurmountable financing constraints, prompting them to discontinue, postpone or altogether abandon some of their innovative efforts, a key source of their growth and survival. This is even more so during economic crises, when profits collapse, internal resources dwindle and external sources risk drying up altogether. Against that backdrop, the analysis identifies the effects of prevailing credit constraints on innovative efforts of both formal R&D innovators as well as non-R&D innovators, which have mostly been neglected so far. It uses Latin America as its empirical platform and demonstrates that irrespective of the global financial crisis, which manoeuvred global financial markets on the verge of collapse, R&D innovators faced binding credit constraints while non-R&D innovators were unconstrained and remained unaffected by the crisis. In addition, there is no evidence that monetary policies aimed at stabilizing capital markets during the crisis had any noticeable alleviating effect on a firm’s probability to pursue R&D-based innovative activities. It also shows that innovative efforts of R&D and non-R&D innovators were driven by entirely different firm characteristics, while, on the contrary, almost identical characteristics determined whether both types of innovators faced any credit constraints at all. |
| Keywords: | credit constraints, R&D and non-R&D innovators, financial crisis, Latin America |
| JEL: | C35 G01 G32 O31 |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:95&r=ino |
| By: | Krzysztof Szczygielski; Wojciech Grabowski; Richard Woodward |
| Abstract: | Differences in the growth of firms remain a major topic in economics and strategy research.In this paper we investigated the link between innovation performance and employment growth. First we discuss the problem from the theoretical point of view and then we analyze the relationship between innovation performance and the dynamics of employment in the Polish service firms in 2004-2009. Firms that introduced new services or marketing techniques experienced stronger growth. Process innovations contributed to employment reduction. Tellingly, this effect could only be observed in 2008-2009, a subperiod which saw the lowest levels of aggregate demand. This conclusion yields support to the presumption formulated by Pianta (2005) that the impact of innovation on employment growth depends on the macroeconomic situation. |
| Keywords: | Poland, services, innovation, firm growth, quantile regression |
| JEL: | D22 L25 L80 O33 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnstan:0453&r=ino |
| By: | Herrmann, Markus; Nkuiya, Bruno; Dussault, Anne-Renée |
| Abstract: | We analyze a monopolist’s incentive to innovate a new antibiotic which is connected to the same pool of antibiotic treatment efficacy as is another drug produced by a generic industry. We outline the differences of antibiotic use under market conditions and in the social optimum. A time and state-dependent tax-subsidy mechanism is proposed to induce the monopolist and generic industry to exploit antibiotic efficacy optimally. |
| Keywords: | Economics of antibiotic resistance, antibiotic innovation, monopoly, generic industry, social optimum, economic instruments, Health Economics and Policy, D21, D42, I18, Q38, |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ulavwp:149731&r=ino |
| By: | Nujin Suphaphiphat; Pietro F. Peretto; Simone Valente |
| Abstract: | We analyze the general-equilibrium effects of alternative regimes of access rights over renewable natural resources – namely, open access versus full property rights on the pace of development when economic growth is endogenously driven by both horizontal and vertical innovations. Resource exhaustion may occur under both regimes but is more likely to arise under open access. Under full property rights, positive resource rents increase expenditures and temporarily accelerate productivity growth, but also yield a higher resource price at least in the short-to-medium run. We characterize analytically the welfare effect of a regime switch induced by a failure in property rights enforcement: switching to open access is welfare reducing if the utility gain generated by the initial drop in the resource price is more than offset by the static and dynamic losses induced by reduced expenditure. |
| Keywords: | Endogenous growth, Innovation, Renewable Resources, Sustainable Development, Property Rights |
| JEL: | O11 O31 Q21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:duk:dukeec:13-11&r=ino |
| By: | Du, Xiaoxue; Lu, Liang; Zilberman, David |
| Abstract: | Both the goal of energy independence and the desire to lower greenhouse gas emission have triggered the search for alternate energy sources. For second generation biofuel production, a key question is which form of industrial organization should be adopted in order to stimulate stable feedstock production. Using a two-stage optimal control framework, we analyze the optimal form of industrial organization should be adopted where technology innovation is endogenous and biorefinery faces credit constraint. Our results show that, under certain assumptions, it is optimal to adopt vertical integration in the beginning and move to contract farming later. Moreover, the tighter credit constraint that a biorefinery faces, the sooner the biorefinery would adopt contract farming. |
| Keywords: | Contract Farming, Vertical Integration, Biofuel Feedstock, Technology In- novation, Environmental Economics and Policy, Production Economics, Resource /Energy Economics and Policy, Q16, Q42, |
| Date: | 2013–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150629&r=ino |
| By: | Briggeman, Brian; Shanoyan, Aleksan; Harmon, Ben; Harris, Kelsey; Haverkamp, Jacob; Heier, Russell; Holder, Jordan; Kniebel, Cassie; Jackson, Kellie; Lutz, Trevor; Warta, Tyler; Wendelburg, Alisa |
| Keywords: | Marketing, Research and Development/Tech Change/Emerging Technologies, Research Methods/ Statistical Methods, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150444&r=ino |
| By: | S. Usai; E. Marrocu; R. Paci |
| Abstract: | Building on previous literature providing extensive evidence on flows of knowledge generated by inter-firm agreements, in this paper we aim to analyse how the occurrence of such collaborations is driven by the multi-dimensional proximity among participants and by their position within firms’ network. More specifically, we assess how the likelihood that two firms set up a partnership is influenced by their bilateral geographical, technological, organizational, institutional and social proximity and by their position within networks in terms of centrality and closeness. Our analysis is based on agreements in the form of joint ventures or strategic alliances, announced over the period 2005-2012, in which at least one partner is localised in Italy. We consider the full range of economic activities and this allow us to offer a general scenario and to specifically investigate the role of technological relatedness across different sectors. The econometric analysis, based on the logistic framework for rare events, yielded three noteworthy results. First, all the five dimensions of proximity jointly exert a positive and relevant effect in determining the probability of inter-firm knowledge exchanges, signalling that they are complementary rather than substitute channels. Second, the higher impact on probability is due to the technological proximity, followed by the geographical one, while the other proximities (social, institutional and organizational) have a limited effect. Third, we find evidence on the positive role played by networks, through preferential attachment and transitivity effects, in enhancing the probability of inter-firm agreements. |
| Keywords: | joint ventures, knowledge flows, networks, proximities, strategic alliances |
| JEL: | R12 O33 O31 L14 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:201311&r=ino |