nep-ino New Economics Papers
on Innovation
Issue of 2013‒09‒28
eleven papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. A Schumpeterian Analysis of Monetary Policy, Innovation and North-South Technology Transfer By Chu, Angus C.; Cozzi, Guido; Furukawa, Yuichi
  2. “Do labour mobility and technological collaborations foster geographical knowledge diffusion? The case of European regions” By Ernest Miguélez; Rosina Moreno
  3. Universities as local knowledge hubs under different technology regimes – New evidence from academic patenting By Friedrich Dornbusch; Thomas Brenner
  4. La politique d’innovation chinoise face au défi de la transition énergétique China's innovation policy and the challenge of energy transition: the case of photovoltaic and wind turbine industries By Zeting LIU
  5. State of Science and Innovation in 2012 By Irina Dezhina
  6. Innovation and Leapfrogging in the Chinese Automobile Industry: Examples from Geely, BYD and Shifeng By Hua Wang; Chris Kimble
  7. Analysis of International R&D Spillover from International Trade and Foreign Direct Investment Channel: Evidence from Asian Newly Industrialized Countries By Samuel Nursamsu; Fithra Faisal Hastiadi
  8. "Carry-on-Activity" and Process Innovation By Stefano Zambelli; N. Dharmaraj
  9. Overcoming localization of knowledge: The role of professional service firms By Stefan Wagner; Karin Hoisl; Grid Thoma
  10. Culture, Entrepreneurship, and Growth By Doepke, Matthias; Zilibotti, Fabrizio
  11. Job Mobility, Peer Effects, and Research Productivity in Economics By Thomas Bolli; Jörg Schläpfer

  1. 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: E4 F43 O3
    Date: 2013–09
  2. 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
  3. By: Friedrich Dornbusch (Fraunhofer Institute for Systems and Innovation Research ISI, Competence Center Policy and Regions); Thomas Brenner (Economic Geography and Location Research, Philipps-Universität Marburg)
    Abstract: It is often claimed that universities act as local knowledge factories. Although this function is largely analyzed in previous research, there still is a knowledge gap regarding the role of a technological match between the profiles of partners in university-industry interactions. In addition, the effects of different knowledge dynamics in technological regimes remain under-researched. In this paper, we thus draw special attention to the question how geographical distance and the specific role of a technological fit between the knowledge provided by the university and the technological needs of the local industry affects interactions between universities and firms. Thereby, we differentiate between six technological regimes constituted by different knowledge dynamics. Our analyses are based on a unique dataset containing all German universities’ academic patenting and publication activities. As these are further enriched by secondary data, they enable us to show that the technological fit between a university and its surrounding region (in terms of local industry needs) indeed has a significant influence on a university’s innovation-related research interactions, especially with small firms. We further show that this effect additionally depends on the underlying knowledge base in heterogeneous technological regimes.
    Keywords: university-industry interaction, technological fit, knowledge base, academic patenting, technology regime, local knowledge hub
    JEL: O31 R12 L14
    Date: 2013–10–09
  4. By: Zeting LIU (CLERSE)
    Abstract: Après trente ans de croissance économique annuelle de 9,9 % en moyenne depuis les réformes économiques lancées en 1978, la Chine est devenue la deuxième puissance économique mondiale. Elle est également le premier émetteur de CO2 et consommateur énergétique et de matières premières. La dégradation environnementale impacte sur la vie de millions d’habitants dans les villes ainsi que dans le milieu rural et crée des conflits avec les pays limitrophes. Cette étude propose une nouvelle approche pour analyser les politiques chinoises en matière de la transition durable en appuyant sur les théories du système national d’innovation (SNI). En analysant les deux industries clés de la transition énergétique en Chine – le photovoltaïque et l’éolienne, nous montrons la force et les faiblesses de la politique pour promouvoir l’innovation verte en Chine. Ces analyses nous permettent de retenir l’hypothèse qu’une convergence des politiques industrielle, énergétique et d’innovation est en train d’émerger pour former une politique de la transition durable en Chine. After thirty years of annual economic growth of 9.9% since the economic reforms initiated in 1978, China has become the world’s second largest economy. It is also the largest emitter of CO2 and consumers of energy and raw materials. Environmental degradation in China affects the lives of millions of people, in the cities as well as in rural areas, and creates conflicts with neighboring countries. This study proposes a new approach to analyze Chinese sustainable transition policies based on the theories of the national innovation system (NIS). By studying the two key industries - the photovoltaic and the wind turbine - of the energy transition in China, we show the strength and weaknesses of Chinese policies to promote green innovation in the country. These analyzes allow us to retain the hypothesis of a convergence of industrial, energetic and innovation policies to form a policy of sustainable transition in China.
    Keywords: politique d’innovation, système d’innovation, industrie photovoltaïque, industrie éolienne, transition, Chine, innovation policy, system of innovation, photovoltaic industry, wind turbine industry
    JEL: O38 O13 O33 N75
    Date: 2013–09
  5. By: Irina Dezhina (Gaidar Institute for Economic Policy)
    Abstract: The past year was marked by the alteration of former trends and priorities following the change of the President and the Government. State policies for supporting science came to the fore while the encouragement of innovative activities and technological development lost in the frequency of its mentioning in the official documents. The switching of priorities was also reflected in the way consultative bodies were restructured.
    Keywords: Russian economy, science, innovations, education institutions
    JEL: O31 O32 O38 I21 I22 I23 I24
    Date: 2013
  6. By: Hua Wang (Euromed Marseille - École de management - Association Euromed Management - Marseille); Chris Kimble (Euromed Marseille - École de management - Association Euromed Management - Marseille, 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: History provides numerous examples of incumbent market leaders being leapfrogged by newcomers that have exploited the opportunities offered by new technologies. In light of the growing number of ecological threats linked to the use of the internal combustion engine, can Chinese auto manufacturers, which are newcomers to the industry, beat out the established Japanese, European, and North American automakers in the race to produce a less environmentally damaging form of transport? Three case studies from the Chinese automobile industry reveal the different ways in which this leapfrogging might take place and highlight the impact that such developments might have on automobile manufacturers in Japan and the West, both for conventional and electric vehicles.
    Keywords: china; Leapfrogging; catching-up; Automobile Industry; Innovation
    Date: 2013–08–23
  7. By: Samuel Nursamsu (Department of Economics, Faculty of Economics Universitas Indonesia); Fithra Faisal Hastiadi (Department of Economics, Faculty of Economics Universitas Indonesia)
    Abstract: This research tries to explain the relation between international R&D spillover from international trade and FDI channel with productivity (TFP) based on endogenous growth theory in Asian Newly Industrialized Countries (ANIC) in period 1990--2010. In this research, it is found that R&D spillover is a significant factor in increasing TFP, especially from trade channel. It is also found that the availability of educated workers is another important factor in increasing productivity. From the comparison of the two country groups in ANIC, it is found that in ANIC Tier 2, international R&D spillover from export is not increasing productivity, yet its spillover effect is still significant. Another finding of this research is FDI is not an important channel for technology spillover. However, there is a need to further discuss the FDI spillover measurement.
    Keywords: R&D Spillover, Endogenous Growth, Productivity, Asia Developing Countries
    JEL: F00 O33 O47
    Date: 2013–09
  8. By: Stefano Zambelli; N. Dharmaraj
    Abstract: Economic growth driven by the creation of new ideas, knowledge, and innovations is an interesting and challenging phenomenon to be modelled and analysed. Dominant approaches, like Romer’s endogenous growth models, Aghion-Howitt creative destruction growth models, RBC models, or the not so dominant ones, like that of the Neo-Austrians, of industrial structuralisms, or Nelson and Winter’s evolutionary theory, emphasize the need for modelling innovations in a comprehensive manner but fail to encapsulate the intrinsic indeterminacies of the innovational process in an insightful manner. Romer (1986, 1990, 1993), in his seminal works, has stressed the importance of modelling ideas and knowledge and showed how ideas can be encoded as information bit-strings, using the chemistry set metaphor. Zambelli (2004, 2005) developed the idea further, modelling an innovation process as a Turing Machine (TM) process and applied the TM metaphor within Romer’s endogenous growth model in an interesting way. But due to the time-less property of the production function, the dynamic interactions between the production and innovational processes could not be explored in detail. In this paper, we harness the intrinsic indeterminacies within the TM metaphor to model process innovations and analyse its dynamic interactions with the production processes within a time to build framework.
    Date: 2013
  9. By: Stefan Wagner (ESMT European School of Management and Technology); Karin Hoisl (University of Munich); Grid Thoma (University of Camerino)
    Abstract: The literature on organizational learning asserts that external learning is often limited geographically and technologically. We scrutinize to what extent organizations acquire external knowledge by accessing external knowledge repositories. We argue that professional service firms (PSFs) grant access to nonlocalized knowledge repositories and thereby not only facilitate external learning but also help to overcome localization. Focusing on patent law firms, we test our predictions using a unique dataset of 544,820 pairs of EP patent applications. Analyzing patterns of knowledge flows captured in patent citations we find that accessing a PSF’s repository facilitates the acquisition of external knowledge. As the effect is more pronounced for knowledge that is distant to a focal organization we conclude that having access to a knowledge repository compensates for localization disadvantages.
    Keywords: Learning, knowledge acquisition, localization, patent citations, professional service firm
    Date: 2013–09–06
  10. By: Doepke, Matthias; Zilibotti, Fabrizio
    Abstract: We discuss the two-way link between culture and economic growth. We present a model of endogenous technical change where growth is driven by the innovative activity of entrepreneurs. Entrepreneurship is risky and requires investments that affect the steepness of the lifetime consumption profile. As a consequence, the occupational choice of entrepreneurship hinges on risk tolerance and patience. Parents expecting their children to become entrepreneurs have an incentive to instill these two values in their children. Cultural transmission is Beckerian, i.e., parents are driven by the desire to maximize their children's happiness. We also consider, in an extension, a paternalistic motive for preference transmission. The growth rate of the economy depends on the fraction of the population choosing an entrepreneurial career. How many entrepreneurs there are in a society hinges, in turn, on parental investments in children's patience and risk tolerance. There can be multiple balanced-growth paths, where in faster-growing countries more people exhibit an "entrepreneurial spirit". We discuss applications of models of endogenous preferences to the analysis of socio-economic transformations, such as the British Industrial Revolution. We also discuss empirical studies documenting the importance of culture and preference heterogeneity for economic growth.
    Keywords: culture; economic growth; endogenous preferences; entrepreneurship; innovation; preference transmission
    JEL: J20 O10 O40
    Date: 2013–06
  11. By: Thomas Bolli (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Jörg Schläpfer (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: Analysing a comprehensive panel dataset of economists working at Austrian, German, and Swiss universities, we investigate how the local environment influences a scientist’s research productivity. The research environment varies if a scientist joins another department or if the characteristics of his colleagues change. We find no influence of the research environment on the average researcher’s productivity, if we control for individual characteristics. This result indicates that with today’s communication technologies spillovers are not bounded locally.
    Keywords: University, economics, productivity, mobility, peer effects, bibliometrics
    JEL: I23 J62
    Date: 2013–09

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