nep-ino New Economics Papers
on Innovation
Issue of 2013‒09‒25
six papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Services vs. Manufacturing – How Does Foreign and Domestic Sales Impact on their R&D? By Ejermo, Olof; Bergman, Karin
  2. The Geography and Structure of Global Innovation Networks: A Knowledge Base Perspective By Liu, Ju; Chaminade, Cristina; Asheim, Bjørn
  3. Is financial support for private R&D always justified ? A discussion based on literature on growth By Benjamin Montmartin; Nadine Massard
  4. R&D offshoring and the productivity growth of European regions By Castellani, Davide; Pieri, Fabio
  5. Combining knowledge from different sources, channels and geographical scales By Grillitsch, Markus; Trippl , Michaela
  6. Substitution or overlap? The relations between geographical and non-spatial proximity dimensions in collaborative innovation projects By Hansen, Teis

  1. By: Ejermo, Olof (CIRCLE, Lund University); Bergman, Karin (AgriFood Economics Centre, Lund Sweden)
    Abstract: While the distinction between manufacturing and services becomes increasingly blurred to some observers, we find, using a panel of Swedish firms, clear evidence that foreign sales (exports) are more important than domestic sales for stimulating R&D. This is particularly clear for manufacturing and this importance of foreign sales has increased over time, simultaneous to an opening up of the Swedish economy. Even though service industries have seen an increase in both R&D and trade over time, it is thus mainly manufacturing that has benefited from increased possibilities for absorptive capacity. This result suggests a clear dichotomy between manufacturing and services in terms of how they react to trade and how they turn towards the foreign market vs. the domestic market to find stimuli for innovation
    Keywords: Research and Development; Foreign and domestic sales; services; manufacturing
    JEL: D22 F14 F43 L60 L80 O14 O31 O33 O52
    Date: 2013–06–15
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_022&r=ino
  2. By: Liu, Ju (CIRCLE, Lund University); Chaminade, Cristina (CIRCLE, Lund University); Asheim, Bjørn (CIRCLE, Lund University)
    Abstract: This paper explores the geography and structure of global innovation networks (GINs) of two multinational companies belonging to industries with different knowledge bases. It contributes to existing literature on knowledge bases, by studying both intra-firm and inter-firm GINs. By means of social network analysis based on primary data, we identify two different forms of GINs, namely the globallyorganised model and the locally-organised model. The paper finds that, in addition to influencing the geographic spread of a GIN, the knowledge base also influences the way that a GIN is organised.
    Keywords: global innovation network; multinational companies; knowledge base; structure; geography; social network analysis
    JEL: F23 O32
    Date: 2012–09–15
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_015&r=ino
  3. By: Benjamin Montmartin (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS]); Nadine Massard (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure - Lyon)
    Abstract: Many economists have long held that market failures create a gap between social and private returns to Research and Development (R&D), thereby limiting private incentives to invest in R&D. However, this common belief that firms significantly underinvest in R&D is increasingly being challenged, leading the rationale behind public support for private R&D to be questioned. In this paper, we attempt to clarify the perspectives of two sources : the theoretical literature on endogenous growth, and its recent developments in integrating a geographical dimension, and the empirical literature that measures the social returns to R&D in relation to the private returns. Ultimately, we are able to clearly distinguish among different types of market failures and compare their relative impact on the gap between the private and social returns to R&D. Two main conclusions are reached. First, systematic firm underinvestment in R&D is not demonstrated. Second, even though instances of underinvestment do occur, they are mainly explained by surplus appropriability problems rather than by knowledge externalities. This suggests the need for a new policy mix that employs more demand-oriented instruments and is more concentrated on identifying efficient allocations among activities rather than merely increasing global private R&D investment.
    Keywords: Returns to R&D; Market failures; R&D-based growth; Economic Geography; R&D policy
    Date: 2013–09–20
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-00864011&r=ino
  4. By: Castellani, Davide (Department of Economics, Finance and Statistics, University of Perugia, Centro Studi Luca d'Agliano, Milan, Italy Halle Institute for Economic Research (IWH), Halle, Germany CIRCLE, Lund University, Sweden); Pieri, Fabio (Depto. de Economia Aplicada II (Estructura Economica), Universitat de Valencia, Spain)
    Abstract: The recent increase in R&D offshoring have raised fears that knowledge and competitiveness in advanced countries may be at risk of `hollowing out'. At the same time, economic research has stressed that this process is also likely to allow some reverse technology transfer and foster growth at home. This paper addresses this issue by investigating the extent to which R&D offshoring is associated with productivity dynamics of European regions. We find that offshoring regions have higher productivity growth, but this positive effect fades down with the number of investment projects carried out abroad. A large and positive correlation emerge between the extent of R&D offshoring and the home region productivity growth, supporting the idea that carrying out R&D abroad strengthen European competitiveness.
    Keywords: R&D Offshoring; Regional Productivity; Foreign Investments; Europe
    JEL: C23 F23 O47 O52 R11
    Date: 2013–05–11
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_020&r=ino
  5. By: Grillitsch, Markus (CIRCLE, Lund University); Trippl , Michaela (CIRCLE, Lund University)
    Abstract: The aim of this article is to examine conceptually and empirically how innovative firms combine knowledge (1) provided by different sources, (2) accessed at different spatial scales, and (3) acquired through different channels. We add to the conceptual debate by contrasting and synthesizing the perspectives offered on these issues by four key concepts, namely the local buzz and global pipelines argument, the knowledge base approach, the notions of STI and DUI modes of innovation as well as the regional innovation systems concept. The empirical part of the article contains an analysis of knowledge sourcing activities and knowledge combinations employed by 181 firms belonging to the Austrian automotive supplier industry. Our findings reveal that it is, indeed, combinations of knowledge sourced from different partners located at different spatial scales and acquired through different channels that are relevant. However, it is particular knowledge combinations that dominate while others are negligible. Austrian automotive supplier firms combine knowledge provided by customers with knowledge inputs from a variety of other sources. Most of the combinations involve the international level combined with the regional and/or national level. Finally, firms combine spillovers with a variety of other channels to acquire innovation-relevant knowledge.
    Keywords: Innovation; Knowledge Bases; Regional Innovation System; Geography; Automotive
    JEL: D83 O30 R10
    Date: 2013–09–17
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_023&r=ino
  6. By: Hansen, Teis (CIRCLE, Lund University)
    Abstract: Traditionally, economic geographers stress geographical proximity’s positive impact on collaboration processes. Recently, effects of cognitive, organisational, social and institutional proximity dimensions have been emphasised. This paper examines the relations between geography and these non-spatial dimensions by distinguishing two mechanisms: the substitution mechanism, where non-spatial forms of proximity substitute for geographical proximity, and the overlap mechanism, where geographical proximity facilitates non-spatial proximity. The two mechanisms’ importance is analysed in collaborative innovation projects in the Danish cleantech industry. Regression models are complemented by a qualitative analysis of the relationship between the geographical and institutional dimensions, which is the only relation where the substitution mechanism is of little importance.
    Keywords: Proximity; cleantech; collaboration; knowledge linkages; innovation
    JEL: L69 O31 R11
    Date: 2013–05–10
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_018&r=ino

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