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on Innovation |
| By: | Maria Teresa Costa-Campi (University of Barcelona & IEB); Néstor Duch-Brown (University of Barcelona & IEB); José García-Quevedo (University of Barcelona & IEB) |
| Abstract: | The energy industry is facing substantial challenges that require innovation to be fostered. Nevertheless, levels of R&D investment and innovation remain quite low in comparison with other sectors. In this paper we analyse the main drivers of R&D investment and obstacles to innovation in the energy industry. We examine, firstly, whether the stated R&D objectives pursued by firms play a role in their R&D effort. Secondly, we analyse the effects of financial, knowledge and market barriers on the innovation outcomes of the firms. We rely on data from the Technological Innovation Panel (PITEC) for Spanish firms for the period 2003-2010. We use a structural model with three equations corresponding to the decision to carry out R&D or not, the R&D effort and the production of innovations. The results of the econometric estimations show, first, that R&D intensity is positively related to process innovation. Second, the main barriers that hamper innovation in the energy industry are related to market factors while financial and knowledge obstacles are not significant. |
| Keywords: | R&D, innovation, energy, barriers, regulation |
| JEL: | Q40 O31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2013-23&r=ino |
| By: | Gabriele Pellegrino (University of Barcelona & IEB); Mark J. Maria Savona (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’. Second, we assess what mostly affects firms’ propensity to realize innovative outputs. Third, we do so in a panel framework by using an unbalanced panel of UK firm for the period 2002 - 2010. 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. |
| 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:ieb:wpaper:2013/6/doc2013-21&r=ino |
| By: | Chang, C.L.; McAleer, M.J.; Tang, J-T. |
| Abstract: | With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology. |
| Keywords: | R&D;exports;imports;cross-border patent;international technology diffusion;joint patent;negative binomial panel data |
| Date: | 2013–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureir:1765040779&r=ino |
| By: | Albahari, Alberto; Barge-Gil, Andrés; Pérez-Canto, Salvador; Modrego-Rico, Aurelia |
| Abstract: | The effectiveness of Science and Technology Parks (STPs) as instruments of innovation policy has generated thriving debate among academics, practitioners and policy makers. However, research mostly does not consider STPs’ heterogeneity. The present paper analyses the influence of different STP characteristics on their tenants'performance. Using data on 849 firms and 25 STPs from the 2009 Community Innovation Survey for Spain and a survey of STP managers respectively, we find that: (i) firms located in very new or longer established STPs show better innovative performance; (ii) the size of the STP and its management company positively affects the innovative performance of tenants while services provision has no effect on firms’ achieving better results; and (iii) firms in less technologically developed regions benefit more from location in an STP. |
| Keywords: | Science and Technology Parks; Innovation; Innovation Performance; Community Innovation Survey; Innovation policy |
| JEL: | L0 L2 L38 O30 O33 O38 O39 |
| Date: | 2013–08–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48829&r=ino |
| By: | Lee, Neil; Rodríguez-Pose, Andrés |
| Abstract: | The creative industries have long been seen as an innovative sector. More recent research posits that creative occupations are also a fundamental, but overlooked, driver of innovation. Theory also suggests cities are important for both creative industries and occupations, with urban environments helping firms innovate. Yet little empirical work has considered the links between creative industries, occupations, cities and innovation at the firm level. This paper addresses this gap using a sample of over 9,000 UK SMEs. Our results stress that creative industries firms are more likely to introduce original product innovations, but not those learnt from elsewhere. Creative occupations, however, appear a more robust general driver of innovation. We find no support for the hypothesis that urban creative industries firms are particularly innovative. However, creative occupations are used in cities to introduce product innovations learnt elsewhere. The results suggest future work needs to seriously consider the importance of occupations in empirical studies of innovation. |
| Keywords: | Innovation; Creative Industries; Creative Occupations; Cities; Learning |
| JEL: | O31 O38 R11 R58 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:48758&r=ino |
| By: | Wojciech Szewczyk (European Commission – JRC - IPTS); Anna Sabadash (European Commission – JRC - IPTS) |
| Abstract: | Since the 1990s, information and communication technology (ICT) has been an essential driver of economic growth. Between 1995 and 2010, the ICT sectors have accounted for over 20% of EU15 growth, even though they only constitute 5% of EU15 GDP. The high growth resulting from the ever-increasing pace of ICT-related innovation requires high levels of R&D to be sustained. Indeed, the European ICT sector accounts for over a quarter of overall business expenditure on R&D, which makes it the largest R&D investing sector. A set of EU policy initiatives emphasise the importance of ICT and the underlying R&D for boosting European performance and competiveness. In order to ensure that public policies create the right conditions for sustaining and increasing the support for R&D, an appropriate measuring framework based on the thorough review of the best available methodologies need to be devised. Such framework will serve as a tool for choosing the investment strategies of public spending that create a favourable climate for an increase of private spendings on ICT R&D, and to turn investments into economic growth and employment through innovation. This report aims to provide an overview of subjects and topics relevant for constructing a coherent framework for macroeconomic analysis of the impact of public spending on ICT R&D, and to set specific modelling requirements for such a framework. The overview is structured to resemble the sequential multistage causal process which links R&D policy intervention with the resulting economy-wide effects, and covers the following issues: relationship between public and private R&D expenditure, innovation and the R&D process, and diffusion and impact of ICT. Further, building on the theory reviewed and empirical evidence presented, the report identifies the general requirements for a modelling framework to be used for ICT R&D analysis. Since there are existing models which can be used as a base framework, the guidelines focus on the specific requirements for the development of an R&D module. This add-in module is called to provide specific initial solutions to account for economics of ICT R&D, and need to be fully integrated with the base CGE model. |
| Keywords: | ICT, R&D, public and private investment, innovation, CGE |
| JEL: | O30 C54 C68 E17 E65 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc82943&r=ino |
| By: | Antonio Navas Ruiz |
| Abstract: | Innovation, mark-ups and the degree of trade openness vary substantially across sectors. This paper builds a multi-sector endogenous growth model to study the influence of asymmetric trade liberalisation and sectoral differences in the degree of product market competition on the effect that trade has on R&D investments at a …firm level. I find that differences in the degree of competition generate large differences in …firm innovative responses to trade liberalisation. A movement from autarky to free trade promotes innovation and productivity growth in those sectors which are initially less competitive. However, when the initial tariff level is common across sectors, a homogeneous tariff reduction promotes innovation in those sectors which are initially more competitive. The paper suggests that trade liberalisation could be a source of industry productivity divergence: firms that are located in industries with greater exposure to foreign trade, invest a greater amount in R&D contributing to industry productivity growth. Finally the paper outlines the importance of reallocation effects within industry and across industries that are the result of these asymmetries. An asymmetric trade liberalisation has a small but negative impact on aggregate productivity growth. |
| Keywords: | Sectorial productivity, international trade, innovation |
| JEL: | F12 O43 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2013:i:127&r=ino |
| By: | Marius Ley (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | Based on patent data and industry specific energy prices for 18 OECD countries over 30 years we investigate on an industry level the impact of energy prices on green innovation activities. Our econometric models show that energy prices and green innovation activities are positively related and that energy prices have a significantly positive impact on the share of green innovations in non-green innovations. More concretely, our main model shows that a 10% increase of the average energy prices of the previous five years results in a 2.7% and 4.5% increase of the number of green innovations and the share of green innovations in non-green innovations, respectively. We also find that the impact of energy prices increases with an increasing lag between energy prices and innovation activities. Robustness tests confirm the main results. |
| Keywords: | Innovation, environment, energy prices |
| JEL: | O30 O34 Q55 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:13-340&r=ino |
| By: | Andrea Morescalchi (IMT Lucca Institute for Advanced Studies); Fabio Pammolli (IMT Lucca Institute for Advanced Studies); Orion Penner (IMT Lucca Institute for Advanced Studies); Petersen Alexander M. (IMT Lucca Institute for Advanced Studies; IMT Lucca Institute for Advanced Studies and Department of Managerial Economics, Strategy and Innovation, K.U. Leuven) |
| Abstract: | Recent studies on the geography of knowledge networks have documented a negative impact of physical distance and institutional borders upon research and development (R&D) collaborations. Though it is widely recognized that geographic constraints hamper the diffusion of knowledge, less attention has been devoted to the temporal evolution of these constraints. In this study we use data on patents filed with the European Patent Office (EPO) for 50 countries to analyze the impact of physical distance and country borders on inter-regional links in four different networks over the period 1988-2009: (1) co-inventorship, (2) patent citations, (3) inventor mobility and (4) the location of R&D laboratories. We find the constraint imposed by country borders and distance decreased until mid-1990s then started to grow, particularly for distance. The intensity of European cross-country inventor collaborations increased at a higher pace than their non-European counterparts until 2004, with no significant relative progress afterwards. Moreover, when analyzing networks of geographical mobility, multinational R&D activities and patent citations we do not depict any substantial progress in European research integration aside from the influence of common global trends. |
| Keywords: | Geography of knowledge; Networks of Innovators; European integration; Spatial proximity; Crossborder collaboration; Gravity model |
| JEL: | O30 R10 R23 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:ial:wpaper:4/2013&r=ino |
| By: | Antonio Vezzani (JRC-IPTS); Sandro Montresor (JRC-IPTS) |
| Abstract: | The paper investigates how top R&D investors differ in the production impact of their inputs and in their rate of technical change. We use the EU Industrial R&D Investment Scoreboard and perform a quantile estimation of an augmented Cobb-Douglass production function for a panel of more than 1,000 companies, covering the period 2002-2010. The results for the pooled sample are contrasted with those obtained from the estimates for different groups of economic sectors. Returns to scale are bounded by the initial size of the firm, but to an extent that decreases with the technological intensity of the sector. The output return of knowledge capital is the most important, irrespective of firm size, but in high-tech sectors only. Elsewhere, physical capital is the pivotal factor, although with size variations. The investigated firms appear different also in their technical progress: embodied in mid-high and low/mid-low tech sectors, and disembodied in high-tech sectors. |
| Keywords: | production function, R&D, firm and sector heterogeneity |
| JEL: | D24 D21 O30 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201302&r=ino |
| By: | OECD |
| Abstract: | This report aims to shed light on the role of markets and networks for knowledge-based assets. Knowledge Networks and Markets (KNMs) comprise the wide array of mechanisms and institutions facilitating the creation, exchange, dissemination and utilisation of knowledge in its multiple forms. This document provides new evidence on the knowledge-sourcing strategies of firms and their role in shaping innovation activities, according to different characteristics, and their impact on performance. It proposes a conceptual framework for understanding how KNMs support knowledge flows and the transfer of intellectual property (IP) rights, supported by a number of novel examples. It considers more specifically some developments in the market for IP rights, looking in the first instance at the evidence on the size of the market and the role of intermediaries. The role of public policies in the IP marketplace is also considered, with particular emphasis on some new forms of policy interventions such as government-sponsored patent funds. This document briefly reviews some key features of the markets and networks for knowledge originating in public research organisations, as well as the role of intermediaries such as technology transfer offices, whose role has been changing rapidly in recent years. Finally, the analysis of knowledge markets is extended to the market for knowledge embodied in highly skilled employees. The mixed impact of mobility on innovation is noted, considering in particular the use of agreements to restrict the movement of human capital and the potential implications of their enforcement. Some proposals for inclusion in a future measurement agenda are outlined. |
| Date: | 2013–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:7-en&r=ino |
| By: | Jeremy de Beer (U. Ottawa); Kun Fu (Imperial College); Sacha Wunsch-Vincent (World Intellectual Property Organization, Economics and Statistics Division, Geneva, Switzerland) |
| JEL: | E26 O12 O17 O3 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:wip:wpaper:10&r=ino |
| By: | Ming Liu (Dept. of Finance Nankai University Tianjin, China); Sumner la Croix (University of Hawaii Economic Research Organization Department of Economics, University of Hawai‘i–Mānoa Global Public Health and Population Studies Program, University of Hawai‘i–Mānoa) |
| Abstract: | Building on the seminal work of Ginarte and Park (1997), we develop an index of property rights in pharmaceutical innovations, the Pharmaceutical Intellectual Property Protection (PIPP) Index, for 154 countries spanning 1960 to 2005. It incorporates 5 types of property rights in pharmaceuticals; 6 statutory measures of enforcement; and adherence to 3 international agreements providing for the grant and enforcement of rights to foreigners. For both developing and developed countries, the PIPP Index starts at low levels in 1960, increases slowly through the early 1990s, and then sharply increases due to minimum standards set by the 1995 TRIPS Agreement. |
| Keywords: | Patents, index, pharmaceuticals, intellectual property, TRIPS |
| JEL: | F53 I18 K42 O31 O34 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201313&r=ino |
| By: | Mariagrazia Squicciarini; Hélène Dernis; Chiara Criscuolo |
| Abstract: | This work contributes to the definition and measurement of patent quality. It proposes a wide array of indicators capturing the technological and economic value of patented inventions, and the possible impact that these might have on subsequent technological developments. The measures proposed build extensively upon recent literature, rely on information contained in the patent documents, and are calculated on patent cohorts defined by the combination of the technology field and the year of filing of patents. This is done to account for possible time- and technology-related shocks. The description of the indicators is accompanied by statistics compiled on patents from the European Patent Office, as well as tests aimed at addressing the sensitivity of the measures to alternative specifications and the correlations that may exist among them. The indicators proposed, which can be constructed on all patents, have the advantage of relying on a homogeneous set of information and of being comparable across countries and over time. To facilitate their compilation on data from other Intellectual Property (IP) offices, the SQL-based program codes used to calculate the indicators are also supplied. The paper is further accompanied by a dataset – to be obtained upon request – containing the indicators calculated on EPO patent documents published during the period 1978-2012, as well as some cohort specific statistics (i.e. main moments and key percentiles).<P>Evaluer la qualité des brevets : Des indicateurs de valeur technologique et économique<BR>Ce travail apporte une contribution à la définition et à l’évaluation de la qualité des brevets. Le large éventail d’indicateurs proposé vise à saisir la valeur des inventions brevetées, au niveau technologique comme au niveau économique, et à estimer l’impact potentiel de ces inventions sur les développements technologiques ultérieurs. Ces mesures reposent principalement sur des travaux récents dans le domaine et exploitent l’information disponible dans les documents brevets. Pour tenir compte de possibles effets temporels et technologiques, les indicateurs sont calculés par cohortes, définies par l’année de dépôt de la demande de brevet et le domaine technologique auquel celle-ci se réfère. La description de chaque indicateur s’accompagne de statistiques établies sur les brevets déposés auprès de l’Office Européen des Brevets (OEB). S’ensuivent des tests évaluant la sensibilité des définitions à différentes spécifications et leur corrélation entre elles. Les indicateurs présentés ici peuvent être construits pour tout document de brevet. Ils ont pour avantages de reposer sur un ensemble d’information homogène et d’être comparables entre pays et dans le temps. Le code des programmes SQL développés pour le calcul des indicateurs est également détaillé, afin de faciliter la compilation de ces indicateurs sur des données d’autres bureaux de propriété intellectuelle. En parallèle, les indicateurs finaux sont mis à disposition des utilisateurs, à la demande, pour l’ensemble des brevets OEB publiés entre 1978 et 2012, ainsi que des statistiques agrégées par cohortes (i.e. principaux moments et centiles). |
| Date: | 2013–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2013/3-en&r=ino |
| By: | Berg, Gunhild; Fuchs, Michael |
| Abstract: | This paper provides an overview of the state of access to bank financing for SMEs in five Sub-Saharan African countries and analyzes the drivers behind banks'involvement with SMEs. The paper builds on data collected through five in-depth studies in Kenya, Nigeria, Rwanda, South Africa, and Tanzania between 2010 and 2012. The paper shows that the share of SME lending in the overall loan portfolios of banks varies between 5 and 20 percent. Reasons for this finding vary, but key contributing factors are the structure and size of the economy and the extent of Government borrowing, the degree of innovation mainly as introduced by foreign entrants to financial sectors, and the state of the financial sector infrastructure and enabling environment. |
| Keywords: | Access to Finance,Banks&Banking Reform,Debt Markets,Financial Intermediation,Environmental Economics&Policies |
| Date: | 2013–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6563&r=ino |
| By: | Ana Fostel (Dept. of Economics, George Washington University); John Geanakoplos (Cowles Foundation, Yale University) |
| Abstract: | We show that financial innovations that change the collateral capacity of assets in the economy can affect investment even in the absence of any shift in utilities, productivity, or asset payoffs. First we show that the ability to leverage an asset by selling non-contingent promises can generate over-investment compared to the Arrow-Debreu level. Second, we show that the introduction of naked CDS can generate under-investment with respect to the Arrow-Debreu level. Finally, we show that the introduction of naked CDS can robustly destroy competitive equilibrium. |
| JEL: | D52 D53 E44 G01 G11 G12 |
| Date: | 2013–07 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:1903&r=ino |