nep-ino New Economics Papers
on Innovation
Issue of 2013‒07‒20
thirteen papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Intellectual Property Rights and Foreign Direct Investment: A Welfare Analysis By Hitoshi Tanaka; Tatsuro Iwaisako
  2. Network Formation: R&D Cooperation Propensity and Timing Among German Laser Source Manufacturers By Muhamed Kudic
  3. Determinants and Policy Simulation of Firms Cooperation in Innovation By Heshmati, Almas; Lenz-Cesar, Flávio
  4. LE DISPOSITIF " INNOVATION ET SOCIÉTÉ " By Marianne Chouteau; Marie Pierre Escudié; Joelle Forest; Céline Nguyen
  5. Competition and the Efficiency of Markets for Technology By Allain, Marie-Laure; Henry, Emeric; Kyle, Margaret
  6. Globalization Localized Technological Change and the Knowledge Economy. By Antonelli, Cristiano
  7. Innovation and Income Inequality. By Antonelli, Cristiano; Gehringer, Agnieszka
  8. The Dissemination of Management Innovations through Consultancy in the Postwar Period By Ćwiklicki, Marek; Alcouffe, Alain
  9. The impact of government support on firm R&D investments : a meta-analysis By Correa, Paulo; Andres, Luis; Borja-Vega, Christian
  10. European Integration and Knowledge Flows across European Regions By Cappelli, Riccardo; Montobbio, Fabio
  11. Resource reallocation and innovation : converting enterprise risks into opportunities By Dutz, Mark A.
  12. The Economic Complexity of Innovation as a Creative Response. By Antonelli, Cristiano
  13. Researchers’ mobility and its impact on scientific productivity" By Fernández-Zubieta, Ana; Geuna, Aldo; Lawson, Cornelia

  1. By: Hitoshi Tanaka (Faculty of Economics, Hokkai-Gakuen University); Tatsuro Iwaisako (Graduate School of Economics, Osaka University)
    Abstract: This paper examines how intellectual property rights (IPR) protection affects innovation and foreign direct investment (FDI) using a North-South quality-ladder model incorporat- ing the exogenous and costless imitation of technology and subsidy policies for both R&D and FDI. We show that for the interior steady state to be stable, either R&D or FDI sub- sidy rates must be positive in the costless imitation model. Our findings also indicate that strengthening IPR protection promotes both innovation and FDI. Moreover, a strengthen- ing of IPR protection can also improve welfare if the initial IPR protection in the South is weak.
    Keywords: foreign direct investment, innovation, intellectual property rights protection
    JEL: F43 O33 O34
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:osk:wpaper:1315&r=ino
  2. By: Muhamed Kudic
    Abstract: Empirical evidence on the evolution of innovation networks within high-tech industries is still scant. We investigate network formation processes by analyzing the timing of firms to enter R&D cooperations, using data on laser source manufacturers in Germany, 1990-2010. Network measures are constructed from a unique industry database that allows us to track both the formation and the termination of ties. Regression results reveal that a firm's knowledge endowment (and cooperation experience) shortens the duration to first (and consecutive) cooperation events. The previous occupation of strategic network positions is closely related to the establishment of further R&D cooperations at a swift pace. Geographic co-location produces mixed results in our analysis.
    JEL: O32 C41 D85
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:iwh:dispap:9-13&r=ino
  3. By: Heshmati, Almas (Sogang University); Lenz-Cesar, Flávio (Brazil Ministry of Communications)
    Abstract: This research introduces an agent-based simulation model representing the dynamic processes of cooperative R&D in the manufacturing sector of South Korea. Firms' behavior is defined according to empirical findings on the Korean Innovation Survey 2005 and captured in a multivariate probit regression model. The econometrics model identifies the determinants on firms' likelihood to participate in cooperation with other organizations when conducting innovation activities. These determinants are translated into simulation parameters which are calibrated to the point that the simulated artificial world are equivalent to the one observed in the real world. The aim of the simulation game is to investigate the differences in sector responses to internal and external changes, including cross-sector spillovers, when applying three different policy strategies to promote cooperation in innovation. The findings indicate possible appropriate (or non-appropriate) policy strategies to be applied depending on the target industries.
    Keywords: agent-based simulation, collaborative R&D, innovation networks, simulation game, policy strategy
    JEL: C15 C71 D21 D85 L20 O31
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7487&r=ino
  4. By: Marianne Chouteau (EVS - Environnement Ville Société - CNRS : UMR5600 - Université Jean Moulin - Lyon III - Université Lumière - Lyon II - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - Institut National des Sciences Appliquées (INSA) : - LYON - École Normale Supérieure - Lyon); Marie Pierre Escudié (EVS - Environnement Ville Société - CNRS : UMR5600 - Université Jean Moulin - Lyon III - Université Lumière - Lyon II - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - Institut National des Sciences Appliquées (INSA) : - LYON - École Normale Supérieure - Lyon); Joelle Forest (EVS - Environnement Ville Société - CNRS : UMR5600 - Université Jean Moulin - Lyon III - Université Lumière - Lyon II - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - Institut National des Sciences Appliquées (INSA) : - LYON - École Normale Supérieure - Lyon); Céline Nguyen (EVS - Environnement Ville Société - CNRS : UMR5600 - Université Jean Moulin - Lyon III - Université Lumière - Lyon II - Université Jean Monnet - Saint-Etienne - École Nationale des Travaux Publics de l'État [ENTPE] - Institut National des Sciences Appliquées (INSA) : - LYON - École Normale Supérieure - Lyon)
    Abstract: Le dispositif pédagogique " Innovation et Société " proposé à l'INSA de Lyon a la particularité de rassembler deux modules autour d'un projet commun. Son objectif est de sensibiliser les étudiants à la complexité et à la richesse du processus d'innovation en combinant des points de vue disciplinaires habituellement séparés.
    Keywords: Culture technique, innovation pédagogique, interdisciplinarité, pédagogie active
    Date: 2013–06–01
    URL: http://d.repec.org/n?u=RePEc:hal:journl:halshs-00842175&r=ino
  5. By: Allain, Marie-Laure; Henry, Emeric; Kyle, Margaret
    Abstract: The sale of R&D projects through licensing facilitates the division of labor between research and development activities. This vertical specialization can improve the overall efficiency of the innovative process. However, these gains depend on the timing of the sale: the buyer of an R&D project should assume development at the stage at which he has an efficiency advantage. We show that in an environment where the seller is overconfident about the value of the project, she may delay the sale to the more efficient firm in order to provide verifiable information about its quality, though this delay implies higher total development costs for the project. We obtain a condition for the equilibrium timing of licensing and examine how factors such as the intensity of competition between potential buyers influence it. We show that a wide array of different explanations, based on differences in information, beliefs or risk profiles, lead to the same qualitative results. We present empirical evidence from pharmaceutical licensing contracts that is consistent with our theoretical predictions.
    Date: 2013–07
    URL: http://d.repec.org/n?u=RePEc:ide:wpaper:27400&r=ino
  6. By: Antonelli, Cristiano (University of Turin)
    Abstract: This work elaborates a dynamic version of the H-O model based upon the hypothesis that technological change is endogenous and biased towards the most intensive use of production factors that are locally most abundant in comparative terms. In the standard H-O model, the difference in the levels of the output elasticity of inputs is assumed to be exogenous. In this dynamic version, instead, this difference is fully endogenous. This approach rests upon the localized technological change approach that integrates the advances of the new economic of knowledge with the Schumpeterian notion of creative reaction, the analysis of induced technological change and technological congruence. According to the Schumpeterian notion of innovation as the result of the creative reaction, firms caught in out-of-equilibrium conditions by the changing conditions of both factor and product markets might try and react by means of the introduction of biased technological changes directed towards the most intensive use of inputs that are locally most abundant in relative terms. Their success and hence the actual introduction of technological innovations will depend upon the availability of appropriate knowledge externalities. According to this framework, countries exposed the out-of-equilibrium conditions engendered by the globalization of product markets can react with the successful introduction of innovations aimed at increasing the intensity of capital -the most abundant input- with the increase of its output elasticity. For the same token they can contrast the twin globalization of capital and product markets with the introduction of the technology production function that makes intensive use of technological knowledge as the most abundant input. Technological knowledge in fact is characterized by its strong collective and systemic character that limits its dissemination and use outside its context of origin.
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201325&r=ino
  7. By: Antonelli, Cristiano; Gehringer, Agnieszka (University of Turin)
    Abstract: The paper articulates and tests the hypothesis that innovation is a major factor in the reduction of income inequalities. The relationship between the pace of technological change and the dynamics of income inequalities has been first suggested by Kuznets (1955), but found little elaboration and empirical investigation in the subsequent literature. The evidence of a large data set including advanced countries, such as the US, Canada and the members of the European Union, as well as the newly industrializing BRIC members, in the years 1995-2011, confirms the virtuous circle between technological change and income inequalities.
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201324&r=ino
  8. By: Ćwiklicki, Marek; Alcouffe, Alain
    Abstract: The purpose of the paper is to fulfill and to refine the role of consultancy and professional bodies in dissemination of management innovations in the Inter- and Postwar Period that was in these days scientific management in Europe. The proposition is set upon the case of French consultancies and organizing bodies (i.e. professional societies and associations) and their activities to popularize the scientific management movement with a special reference to the Henry Bernaténé’s output.
    Keywords: business history, dissemination, management innovation, consultancy
    JEL: B2 B3 M1
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:48310&r=ino
  9. By: Correa, Paulo; Andres, Luis; Borja-Vega, Christian
    Abstract: This paper applies meta-analysis techniques to a sample of 37 studies published during 2004-2011. These papers assess the impact of direct subsidies on business research and development. The results show that the effect of public investment on research and development is predominantly positive and significant. Furthermore, public funds do not crowd out but incentivize firms to revert funds into research and development. The coefficient of additionality impacts on research and development ranges from 0.166 to 0.252, with reasonable confidence intervals at the 95 percent level. The results are highly sensitive to the method used. The high heterogeneity of precision is explained by the wide variety of methodologies used to estimate the impacts and paper characteristics.
    Keywords: Scientific Research&Science Parks,Science Education,E-Business,Statistical&Mathematical Sciences,Teaching and Learning
    Date: 2013–07–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6532&r=ino
  10. By: Cappelli, Riccardo; Montobbio, Fabio (University of Turin)
    Abstract: Using data on inventor citations and inventor collaborations, this article analyses changes in geographical patterns of knowledge flows between European regions during the period 1981-2000. It shows that inventor collaborations become less geographically localized, while inventor citations become more localized. The European integration process has a significant effect on reducing barriers to knowledge flows between new and old EU members. For inventor citations, this effect relates only to the EU enlargement of 1995 and is confined to knowledge flows from Austria, Finland and Sweden to old EU members.
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201322&r=ino
  11. By: Dutz, Mark A.
    Abstract: This paper argues that the increased flow and management of knowledge permitted by knowledge-based capital, supported by appropriate policies, can be an important factor in reducing the decision risk facing enterprises due to uncertainty and imperfect information, helping improve the resilience of development outcomes. Enterprises are conceptualized as information platforms that manage risk through investments in knowledge-based capital and complementary assets, providing them with the knowledge, protection/enabling, insurance, and coping/leveraging abilities to make better decisions in response to shocks. Investments in knowledge-based capital allow enterprises to better convert voluntary but risky reallocation and innovation decisions into productivity and wealth-enhancing opportunities. They can help the enterprise sector as a whole and most people to self-protect and realize better jobs, earnings, and consumption outcomes by adapting to shocks. However, absent appropriate policies, knowledge-based capital can have adverse distributional effects -- including a skewed industrial concentration of productivity gains and more unequal consumption and income-earning outcomes between rich and poor people. The paper discusses the role of policy in facilitating risk management by enterprises, ultimately to reduce poverty and boost shared prosperity. Insufficient enterprise risk-taking is costly for the enterprise sector and the economy as it results in too little experimentation and learning. The paper argues that governments should create business environments that stimulate entrepreneurial risk-taking to invest in market and social opportunities that combine new technologies with appropriately-skilled workers. Policies allowing people to better confront and manage their risks include: (1) spurring entrepreneurial experimentation; (2) supporting skills upgrading; and (3) promoting mechanisms for joint learning through global collaboration.
    Keywords: Environmental Economics&Policies,Labor Policies,Economic Theory&Research,E-Business,Debt Markets
    Date: 2013–07–01
    URL: http://d.repec.org/n?u=RePEc:wbk:wbrwps:6534&r=ino
  12. By: Antonelli, Cristiano (University of Turin)
    Abstract: Evolutionary economics has finally recognized the limits of biological analogies and is now able to apply the tools of complexity analysis. A better appreciation of the Schumpeterian legacy can help building better foundations to this new phase of evolutionary economics. The paper uncovers the merits of the essay “The creative response in economic history” published by Joseph Alois Schumpeter in the Journal of Economic History in 1947 and forgotten since then. The correct appreciation of this Schumpeterian contribution is important not only to better understand the evolution of Schumpeter’s thinking but also to elaborate a more inclusive and robust framework able to integrate the contributions of the Classical School and the Marshallian traditions as well as the tools of historical economics so as to implement the new emerging evolutionary complexity.
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201326&r=ino
  13. By: Fernández-Zubieta, Ana; Geuna, Aldo; Lawson, Cornelia (University of Turin)
    Abstract: This article analyses the impact of mobility on researchers’ productivity. We address the relationship by developing a theoretical framework based on the job-matching approach for academics and the idea that productivity is driven by capital availability and peer effects. The empirical analysis is based on the entire careers of a sample of 171 UK academic researchers, spanning from 1957 to 2005. We analyse the impact of job changes on post mobility output in 3 and 6 year periods. Contrary to common wisdom, we do not find evidence that mobility per se increases academic performance. Mobility to better departments has a positive but weakly significant impact while downward mobility results in decreasing researchers’ productivity. Once we control for mobility associated with career progress, the results indicate significant strong positive impact for mobility to higher quality department. We estimated a set of alternative specifications of mobility finding evidence of an increase of productivity for mobility from industry to academia but only after an initial negative effect. In most cases mobility is associated with short-term decrease of productivity due to hypothesised adjustment costs.
    Date: 2013–05
    URL: http://d.repec.org/n?u=RePEc:uto:dipeco:201313&r=ino

This nep-ino issue is ©2013 by Steffen Lippert. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at http://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.