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on Innovation |
| By: | Suzanne Scotchmer |
| Abstract: | The Bayh-Dole Act allows universities to exploit patents on their federally sponsored research. University laboratories therefore have two sources of funds: direct grants from sponsors and income from licensing. Tax credits for private R&D also contribute, because they increase the profitability of licensing. Because Bayh-Dole profits are a source of funds, the question arises how subsidies and Bayh-Dole profits fit together. I show that subsidies to the university can either "prime the pump" for spending out of Bayh-Dole funds, or can crowd it out. Because of crowding out, if the sponsor wants to increase university spending beyond the university's own target, it will end up funding the entire research bill, just as if there were no profit opportunities under the Bayh-Dole Act. A subsidy system that requires university matching can mitigate this problem. |
| JEL: | K0 L00 O34 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19252&r=ino |
| By: | Olivier Brossard (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Université des Sciences Sociales - Toulouse I : EA4212 - École Nationale de Formation Agronomique - ENFA - Institut d'Études Politiques [IEP] - Toulouse - Université Toulouse le Mirail - Toulouse II); Stéphanie Lavigne (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - Université des Sciences Sociales - Toulouse I : EA4212 - École Nationale de Formation Agronomique - ENFA - Institut d'Études Politiques [IEP] - Toulouse - Université Toulouse le Mirail - Toulouse II); Mustafa Sakinc Erdem (GREThA - Groupe de Recherche en Economie Théorique et Appliquée - CNRS : UMR5113 - Université Montesquieu - Bordeaux IV) |
| Abstract: | This study examines the relationship between ownership structures in large European companies and their innovative activity in terms of R&D spending. The analysis is performed on a sample of 324 large innovative companies over 8 years. Contrary to the view that institutional investors can have a negative influence on R&D spending, we report a positive impact of these investors. Our study also tests the impact of 'impatient' institutional investors and provides evidence of their negative influence on R&D spending. |
| Keywords: | ownership structures; institutional ownership; innovation; R&D intensity |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00843984&r=ino |
| By: | Arijit Mukherjee (School of Business and Economics, Loughborough University, UK) |
| Abstract: | It is generally believed that patent pools by complementary input suppliers make the consumers, final goods producers and the society better off by reducing the complements problem. We show that this may not be the case under endogenous technology choice. Although a patent pool reduces input price, it may make the consumers and the society worse off by reducing innovation. We also show that a patent pool makes the input suppliers better off, but it may not make all final goods producers better off compared with non-cooperation between the input suppliers. |
| Keywords: | Complementary inputs; Patent pool; Innovation; Welfare |
| JEL: | L13 O31 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:lbo:lbowps:2013_07&r=ino |
| By: | Ernest Miguélez (Economics and Statistics Division, WIPO and AQR-IREA); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | The goal of this paper is twofold: first, we aim to assess the role played by inventors’ cross-regional mobility and collaborations in fostering knowledge diffusion across regions and subsequent innovation. Second, we intend to evaluate the feasibility of using mobility and co-patenting information to build cross-regional interaction matrices to be used within the spatial econometrics toolbox. To do so, we depart from a knowledge production function where regional innovation intensity is a function not only of the own regional innovation inputs but also external accessible knowledge stocks gained through interregional interactions. Differently from much of the previous literature, cross-section gravity models of mobility and co-patents are estimated to use the fitted values to build our ‘spatial’ weights matrices, which characterize the intensity of knowledge interactions across a panel of 269 regions covering most European countries over 6 years. |
| Keywords: | inventors’ spatial mobility, co-patenting, gravity models, weights matrix, knowledge production function. JEL classification: C8, J61, O31, O33, R0. |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201314&r=ino |
| By: | Aiello, Francesco; Pupo, Valeria; Ricotta, Fernanda |
| Abstract: | Sectoral and territorial specificities affect the firm’s capabilities of being productive. While there is a wide consensus on this, a quantitative measure of the these effects has been lacking. To this end, we combine a dataset of Italian firms with some meso regional and sectoral variables and apply a cross-classified model that allows for a clear distinction between firm, region-specific and sector-specific effects. After observing a marked TFP heterogeneity across firms, the paper addresses the issue of understanding how much differences in firms’ productivity depend on regional localisation and sector specificities. Results refer to 2004-2006 and are threefold. Firstly, they confirm that the main source of firm variety is mostly due to differences revealed at individual level. Secondly, we find that sector is more important than location in explaining firms’ TFP. Lastly, the results show that firm TFP increases when it belongs to more innovative sectors. Similarly, companies get benefits from belonging to sectors where there is a high proportion of firms using R&D public support and a high propensity to collaborate in innovative projects. |
| Keywords: | Total Factor Productivity, Firms’ Heterogeneity, Sectoral innovation, Geography, Cross-Classified Models |
| JEL: | L25 L60 O33 |
| Date: | 2013–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48573&r=ino |
| By: | Christine Greenhalgh |
| Abstract: | This paper begins by surveying recent economic studies of the relationships between technology transfer, intellectual property, innovation and diffusion in emerging countries. It applies this literature to the Indian case. India is a potentially useful case study for several reasons. India has recently been experiencing rapid growth and has several high technology sectors staffed by an absolutely large and highly educated middle class. At the same time an even larger share of its very big population is still working in low productivity agriculture and many of these people are living in extreme poverty. To reduce poverty and improve agricultural productivity India will need to create jobs in labour intensive production and distribution sectors to employ its vast army of unskillled workers. The second part of the paper outlines how industry structure and innovative performance have been progressing in India following the economic reforms of the early 90s and the changes to intellectual property law occasioned by the TRIPS agreement and membership of the World Trade Organisation. In the third section the focus turns to recent science, technology and innovation policy in India. A study of the country's potential for innovation by the World Bank in 2007 argued that India must proceed on two fronts. In addition to considering how India's growth prospects can be enhanced by world leading innovations, this volume placed great emphasis on inclusive innovation. This may involve mainly the diffusion and absorption of existing knowledge, but is designed to improve the lot of the poor. The World Bank report proposed a number of new policy directions aimed at speeding up innovation and technology diffusion in India. We attempt to record what changes have been made to innovation policy, foreign direct investment policy and diffusion policy in India in recent years and assess whether these are likely to be effective. |
| Keywords: | Innovation, intellectual property, science policy, innovation policy, TRIPS |
| JEL: | O2 O3 |
| Date: | 2013–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:660&r=ino |
| By: | Paméla Baillette (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Bernard Fallery (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Aurélie Girard (MRM - Montpellier Recherche en Management - Université Montpellier II - Sciences et techniques : EA4557 - Université Montpellier I - Université Paul Valéry - Montpellier III - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School) |
| Abstract: | Une innovation se consolide ou s'affaiblit en fonction des évolutions qui se manifestent à travers les différents accords et controverses. Notre objectif est ici de proposer l'utilisation de la méthode Delphi, et plus précisément du Delphi argumentaire, pour analyser à la fois les accords et les controverses qui se développent, aussi bien au niveau d'un projet qu'à un niveau plus sociétal. Nous présentons d'abord l'origine de la méthode Delphi, la mise en œuvre d'un Delphi argumentaire et les outils quantitatifs et qualitatifs pour l'analyse des données. Nous détaillons ensuite deux applications de cette méthode, avec comme objectif le repérage et la qualification des accords et controverses dans le développement d'une innovation : une enquête sur les systèmes de traçabilité agro-alimentaire et une enquête sur le e-Recrutement via les médias sociaux. Enfin, nous tirons trois grandes conclusions de ce travail, au niveau méthodologique, théorique et managérial. |
| Keywords: | Méthodologie; Méthode Delphi; Controverses; Innovation; Traçabilité; e-recrutement |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00845535&r=ino |
| By: | Neil Kay (Department of Economics, University of Strathclyde) |
| Abstract: | This paper looks at the emergence of what is described here as the QWERTY family of standards (QWERTY and its international adaptations QZERTY, AZERTY, and QWERTZ). QWERTY has been described as an inferior solution and an accident of history. However, the analysis here finds that each member of the family represented highly efficient adaptations to specific user needs and technical challenges encountered in their own environments. These findings may be seen to have wider implications given QWERTY’s role as paradigm case in the literature on increasing returns and path dependence, and these are pursued in the paper. |
| Keywords: | QWERTY, innovation, invention, path dependence, technological standards |
| JEL: | O31 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:1310&r=ino |
| By: | Hall, Joshua (University of Tampa); Laincz, Christopher (Department of Economics & International Business LeBow College of Business Drexel University) |
| Abstract: | When firms engaged in R&D are observably heterogeneous (in size) and policymakers are able to condition policy on the observed heterogeneity, what is the optimal policy? This paper starts with a static two-stage duopoly model of R&D competition with uncertainty and finds it welfare enhancing to subsidize the larger firms, with no subsidies for (or taxes on) the smaller firm (extending existing results, Lahiri and Ono, 1999). This result follows because marginal cost reductions by the largest firm have larger net effects on consumer and producer surplus. The policymaker's goal is effectively to minimize the average cost of production. However, when we move to a dynamic setting, the optimal policy is less clear. When firms compete repeatedly, the degree of competition becomes an endogenous variable over the infinite horizon. The optimal policy depends on the nature of long-run competition. In some situations, the optimal policy remains the same, subsidize the larger firm. However, in other scenarios, the policymaker optimally chooses to subsidize the smaller firm more heavily to promote more intense competition which lowers the long-run deadweight loss and long run costs through increased R&D competition. |
| Keywords: | R&D; subsidies; duopoly; dynamics; heterogeneous firms |
| JEL: | L11 L16 O31 |
| Date: | 2012–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:drxlwp:2012_013&r=ino |
| By: | Wim Naudé (Maastricht School of Management, UNU-MERIT, University of Maastricht and IZA- Institute for the Study of Labour); Adam Szirmai (UNU-MERIT and Maastricht Graduate School of Governance, University of Maastricht) |
| Abstract: | What is the relationship between technological innovation, entrepreneurship and development? Is it better for developing countries to coping and adapt existing technologies from richer countries rather than undertake or promote intensive research and development (R&D) of their own? We tackle these perennial issues afresh by considering the relationship between knowledge, innovation and growth in the past and by identifying whether and how the scope for catch-up growth exists. We focus on the interesting case of technological innovation in the comparative economic performance of China; we draw some lessons for development elsewhere. |
| Keywords: | innovation, entrepreneurship, development, knowledge, China, BRICS |
| JEL: | F23 L52 L53 O25 O40 O33 O34 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:msm:wpaper:2013/17&r=ino |
| By: | Christine Greenhalgh; Philipp Schautschick |
| Abstract: | This paper surveys empirical studies employing trade mark data that exist in the economic literature to date. Section 1) documents the use of trade marks by firms in several advanced countries including Australia, the United Kingdom and the United States, 2) reviews different attempts to gauge the function of a trade mark as indicator of innovation and product differentiation, and 3) provides an overview of the association of trade marks with dimensions of firm performance and productivity. Sections 4) and 5) give accounts of studies that focus on the social costs and value of trade marks, namely their importance for firm survival, their impact on demand, and firms' incentives to innovate but also to raise rivals' costs. Section 6) covers first endeavours to investigate the interplay between different types of intellectual property rights, while 7) briefly concludes. |
| Keywords: | Intellectual property, trade marks, empirical studies |
| JEL: | O33 O34 |
| Date: | 2013–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:659&r=ino |
| By: | Martin Falk |
| Abstract: | This study empirically analyses the determinants of greenfield investment in intangible assets in emerging and industrialized countries. Data consists of host parent country pairs of greenfield FDI projects in (i) software (except video games), (ii) advertising, public relations and related activities, (iii) headquarters, (iv) research & development and (v) design, development & testing. With a world market share of 33 per cent in 2011 in terms of the number of projects, descriptive statistics show that the EU 27 is one of the most important locations for international greenfield investment in intangible assets. However, there was a decline in the EU 27s share of such projects after the recent financial and economic crisis, which is mainly due to the decrease in intra-EU greenfield FDI activities. In contrast, FDI inflows in intangible assets increased in the United States, in other non EU OECD countries and in emerging countries. Among the EU countries of Ireland, Luxembourg, the United Kingdom, Denmark, Belgium, Netherlands and Sweden are the most attractive locations for Non-EU investors, whereas the southern and East EU countries are least successful in attracting FDI projects in intangible assets. The results using fixed and random effects negative binomial regression models for 40 host and 26 parent countries during the period 2003–2010 show that FDI in intangible assets depends significantly positively on quantity of human capital, quality of human capital measured as the PISA score in maths and reading, costs of starting a business, broadband penetration, strength of investor protection, R&D endowment and direct R&D subsidies. Wage costs (or unit labour costs) have a significant negative impact on FDI inflows in intangible assets. Other policy factors, such as labour market regulations, product, or FDI regulations, do not have a significant impact. Separate estimates for the EU-27 countries show that corporate taxes matter for the international location decision for intangible assets. The empirical results presented may help to develop a proactive action plan to attract international investments in intangible assets in Europe. |
| Keywords: | Innovation, innovation policy, intangible assets |
| JEL: | O3 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2013:m:7:d:0:i:30&r=ino |
| By: | Ramdorai, Aditi; Herstatt, Cornelius |
| Abstract: | [Introduction ...] The ability to successfully drive disruptive innovations from within the organization will be analyzed through the lens of organizational ambidexterity. Ambidexterity is the ability of organizations to successfully balance exploration and exploitation. The manifestation of this act of balancing exploitation and exploration is the companies' ability to initiate multiple innovation streams, in this case sustaining innovations and disruptive innovations (Danneels, 2004; Tushman, et al., 2010). Key proponents of organizational ambidexterity, O'Reilly and Tushman, consider it a 'solution to the innovators dilemma' (O'Reilly and Tushman, 2008, pg. 202), however present their thesis only conceptually. This is a general gap in the research of organizational ambidexterity, as noted by scholars of organizational ambidexterity where consensus exists on the need for ambidexterity, but the underlying mechanisms and the 'how' remain undertheorized (Gupta, et al., 2006). This work will look at the mechanisms of ambidexterity at GE Healthcare to help explain its ability in successfully hosting sustaining and disruptive innovations from within its boundaries. The next section will focus on the theoretical background of this research, explaining in greater detail the concept of disruptive innovation and BOP research. The next section describes the research methodology and research question. Section 4 narrates the empirical data from the GE Healthcare case study after which we analyze the main findings and close with a conclusion. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:74&r=ino |
| By: | Babette Never (GIGA German Institute of Global and Area Studies) |
| Abstract: | The green power potential of a country is a central factor in the transformation to a green economy. This paper argues that green power will become a decisive factor for global change. Green power combines sustainability, innovation and power into one concept. By merging insights from political science, economics and innovation research, this paper develops a multidimensional, multilevel concept of green power that takes both resources and processes into account. A first empirical assessment of the current distribution of green power in global environmental governance shows that China and India, in particular, as well as Brazil and Costa Rica are catching up in clean technology and renewable energy. The European Union, Germany and the United States still dominate, but they are not fully maximizing their green power potential. In spite of their discursive power, the green power potential of the least developed countries is relatively small, making the jump toward a green economy unlikely. |
| Keywords: | climate change, power, global environmental governance, innovation, green economy. |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:gig:wpaper:226&r=ino |
| By: | Albert Banal-Estañol; Inés Macho-Stadler; David Pérez-Castrillo |
| Abstract: | We develop a two-sided matching model to analyze collaboration between heterogeneous academics and ï¬rms. We predict a positive assortative matching in terms of both scientiï¬c ability and affinity for type of research, but negative assortative in terms of ability on one side and affinity in the other. In addition, the most able and most applied academics and the most able and most basic ï¬rms shall collaborate rather than stay independent. Our predictions receive strong support from the analysis of the teams of academics and ï¬rms that propose research projects to the UK’s Engineering and Physical Sciences Research Council. |
| Keywords: | matching, industry-science links, research collaborations, basic versus applied research, complementarity |
| JEL: | O32 I23 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:704&r=ino |