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on Innovation |
| By: | Galasso, Alberto; Schankerman, Mark |
| Abstract: | Cumulative innovation is central to economic growth. Do patent rights facilitate or impede such follow-on innovation? This paper studies the causal effect of removing patent protection through court invalidation on subsequent research related to the focal patent, as measured by later citations. We exploit random allocation of judges at the U.S. Court of Appeal for the Federal Circuit to control for the endogeneity of patent invalidation. We find that patent invalidation leads to a 50 percent increase in subsequent citations to the focal patent, on average, but the impact is highly heterogeneous. Patent rights appear to block follow-on innovation only in the technology fields of computers, electronics and medical instruments. The effect is entirely driven by invalidation of patents owned by large patentees that triggers more follow-on innovation by small firms. |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:hit:iirwps:13-16&r=ino |
| By: | Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Florian Seliger (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | Human resource management (HRM) practices are generally expected to stimulate a firm’s innovation performance. However, which of these practices do really pay off? Based on a unique dataset that includes detailed information for both a firm’s innovation activities and different types of HRM practices we find that primarily new workplace organization practices seem to enhance a firm’s innovation activities. Flexible practices of working time management and incentive payment schemes show only small effects on both innovation propensity and innovation success. Further training does only affect innovation success, but not innovation propensity. Overall, we find a stronger linkage between innovative HRM practices and innovation propensity than with innovation success. |
| Keywords: | human resource management, workplace organization, innovation performance |
| JEL: | O31 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:13-341&r=ino |
| By: | Chu, Angus C.; Cozzi, Guido; Furukawa, Yuichi |
| Abstract: | This study analyzes the cross-country effects of monetary policy on innovation and international technology transfer. We consider a scale-invariant North-South quality-ladder model that features innovative R&D in the North and adaptive R&D in the South. To model money demand, we impose cash-in-advance constraints on these two types of R&D investment. We find that an increase in the Southern nominal interest rate causes a permanent decrease in the rate of international technology transfer, a permanent increase in the North-South wage gap, and a temporary decrease in the rate of Northern innovation. An increase in the Northern nominal interest rate causes a temporary decrease in the rate of Northern innovation, a permanent decrease in the North-South wage gap, and an ambiguous effect on the rate of international technology transfer depending on the relative size of the two economies. We also calibrate the model to China-US data and find that the cross-country welfare effects of monetary policy are quantitatively significant. Specifically, permanently decreasing the nominal interest rate to zero in China leads to a welfare gain of 3.37% in China and a welfare gain of 1.25% in the US. Permanently decreasing the nominal interest rate to zero in the US leads to welfare gains of 0.33% in the US and 1.24% in China. |
| Keywords: | Monetary policy, economic growth, R&D, North-South product cycles, FDI |
| JEL: | O30 O40 E41 F43 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2013:19&r=ino |
| By: | Tensay, Teferi Mequaninte; Müller, Ulrike |
| Abstract: | We use Social Network Analysis (SNA) to investigate the networking and knowledge management in the coffee value chain in Ethiopian and Rwanda and its applicability to the agricultural innovation system (AIS). The AIS aims at putting farmers at the center of the knowledge management and innovation system. Results of the SNA show that farmers from both Ethiopia and Rwanda are not at the center of the innovation system. In the Ethiopian coffee value chain, cooperatives are at the center of the knowledge management and innovation system. In Rwanda, NGOs play a central role in the knowledge management... |
| Keywords: | Networks, Knowledge management, Innovations, Ethiopia, Rwanda, Agricultural and Food Policy, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi13:156149&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: | Cities; Creative industries; Creative occupations; Innovation; Learning |
| JEL: | O31 O38 R11 R58 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:9598&r=ino |
| By: | Ana Fostel; John Geanakoplos |
| Date: | 2013–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:cla:levarc:786969000000000750&r=ino |
| By: | Lin, Hwan C. |
| Abstract: | This paper presents more channels through which the optimal patent life is determined in a R&D-based endogenous growth model that permits growth of new varieties of consumer goods over time. Its modeling features include an endogenous hazard rate facing incumbent monopolists, the prevalence of research congestion, and the aggregate welfare importance of product differentiation. As a result, a patent’s effective life is endogenized and less than its legal life. The model is calibrated to a global economy with a set of baseline parameter values. Under the benchmark patent length of 20 years, the calibrated model can deliver along the balanced growth path a plausible innovation rate of 2.84% per year and an economy-wide markup rate of 1.15. The optimal patent length is computed with the algorithm of Golden Search Section, ranging from 17 to 19 years. With the creative-destruction hazard, the world needs a longer patent term to maximize social welfare, but with the prevalence of research congestion, the world needs a shorter patent term. However, if the world’s aggregate welfare appreciates varieties of goods in a way strong enough, the optimal patent term can surprisingly extend beyond even 1,000 years! |
| Keywords: | patent length, innovation, creative destruction, endogenous hazard rate |
| JEL: | O31 O34 |
| Date: | 2013–08–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49790&r=ino |
| By: | Ratinger, Tomas; Boskova, Iveta |
| Abstract: | A mobilisation of research, knowledge transfer and innovation to deal with the current challenges as raising world food demand while protecting natural resources is a priority area of the EU. The effective knowledge transfer and innovation activities in the agri-food supply chain may push all producers in the vertical to improve their competitiveness while saving resources. In the paper we examine the current level of innovation activities and knowledge transfer in milk processing industry in the Czech Republic, with a particular focus on the collaboration of firms with R&D organisations and other important agents, in order to assess the potential for enhancing sustainable dairy production. Most of the interviewed milk processors confirmed that sustainability objective did not rank high within firms’ strategies while it showed a great potential for innovations. It is apparent from the conducted interviews with stakeholders as well as from the statistics that the level of cooperation for innovations is rather low among the Czech food and particularly dairy processors. The low cooperation level concerns not only research institution but also other agents including farmers. This is in contrast to considering cost as a hurdle for innovations. The lack of cooperation among producers can partly be accounted to property rights protection and the need to get advantage over the competition. The interviews and the statistics showed that companies with in-house R&D staff have higher absorption capacity and thus requirements concerning cooperation with research institutions and that these firms are not satisfied with what is offered in the country and seek support abroad. The current support programme increased the sector innovation activity, but at the same time used-up limited capacities of the national research base. Continuation of the support in the current way seems unsustainable. |
| Keywords: | Sectoral system of innovation, absorption capacity, dairy processing industry, Research and Development/Tech Change/Emerging Technologies, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi13:156130&r=ino |
| By: | Enrico Moretti; Daniel J. Wilson |
| Abstract: | We evaluate the effects of state-provided financial incentives for biotech companies, which are part of a growing trend of placed-based policies designed to spur innovation clusters. We estimate that the adoption of subsidies for biotech employers by a state raises the number of star biotech scientists in that state by about 15 percent over a three year period. A 10% decline in the user cost of capital induced by an increase in R&D tax incentives raises the number of stars by 22%. Most of the gains are due to the relocation of star scientist to adopting states, with limited effect on the productivity of incumbent scientists already in the state. The gains are concentrated among private sector inventors. We uncover little effect of subsidies on academic researchers, consistent with the fact that their incentives are unaffected. Our estimates indicate that the effect on overall employment in the biotech sector is of comparable magnitude to that on star scientists. Consistent with a model where workers are fairly mobile across states, we find limited effects on salaries in the industry. We uncover large effects on employment in the non-traded sector due to a sizable multiplier effect, with the largest impact on employment in construction and retail. Finally, we find mixed evidence of a displacement effect on states that are geographically close, or states that economically close as measured by migration flows. |
| JEL: | H0 J0 R0 |
| Date: | 2013–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19294&r=ino |
| By: | Les Oxley (University of Waikato); Shangqin Hong (University of Canterbury); Philip McCann (University of Groningen) |
| Abstract: | In this paper we will use case studies to seek to understand the dynamic innovation processes at the level of the firm and to explain the apparent 'enigma' between New Zealand's recent innovation performance and economic growth. A text-mining tool, Leximancer, (version 4) was used to analyse the case results, based on content analysis. The case studies reveal that innovation in New Zealand firms can be best described as 'internalised', and the four key factors that affect innovation in New Zealand firms are ‘Product’, ‘Market’, ‘People’ and ‘Money’. New Zealand may be an ideal place for promoting local entrepreneurship, however, many market/technology opportunities cannot be realized in such a small and isolated economy, hence the poor economic performance. |
| Keywords: | innovation; New Zealand; case study; content analysis |
| Date: | 2013–09–10 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:13/12&r=ino |
| By: | Situngkir, Hokky |
| Abstract: | Network and graph model is a good alternative to analyze huge collective textual data for the ability to reduce the dimensionality of the data. Texts can be seen as syntactic and semantic network among words and phrases seen as concepts. The model is implemented to observe the proposals of Indonesian innovators for implementation of information technology. From the analysis some interesting insights are outlined. |
| Keywords: | innovation, semantic map, corpus, complex network, computational linguistics. |
| JEL: | C8 H8 I2 L0 L00 O3 O31 O53 Y10 |
| Date: | 2013–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:49900&r=ino |