nep-ino New Economics Papers
on Innovation
Issue of 2013‒10‒11
28 papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Monitoring innovation activities of innovation process participants (2011: R&D organisations) By Leonid Gokhberg; Tatiana Kuznetsova; Vitaly Roud; Stanislav Zaichenko
  2. Innovation concepts and typology – an evolutionary discussion By Maxim Kotsemir; Alexander Abroskin; Dirk Meissner
  3. Innovation, reallocation and growth By Acemoglu, Daron; Akcigit, Ufuk; Bloom , Nicholas; Kerr , William
  4. User innovation - empirical evidence from Russia By Anna Zaytseva; Olga Shuvalova; Dirk Meissner
  5. Conceptualizing the innovation process – trends and outlook By Maxim Kotsemir; Dirk Meissner
  6. Orchestrating innovation with user communities in the creative industries By G. Parmentier; Vincent Mangematin
  7. Scientific breakthroughs, innovation clusters and stochastic growth cycles By Stadler, Manfred
  8. Intellectual property box regimes: Effective tax rates and tax policy considerations By Evers, Lisa; Miller, Helen; Spengel, Christoph
  9. Growth drivers: ICT and inclusive innovations By Ashima Goyal
  10. KEY FEATURES OF THE FIRST PHASE OF THE NATIONAL CLUSTER PROGRAM IN RUSSIA By Evgeniy Kutsenko; Dirk Meissner
  11. Statistical patent analysis indicators as a means of determining country technological specialisation By Ekaterina Khramova; Dirk Meissner; Galina Sagieva
  12. Determinants of foreign technological activity in German regions - a count model analysis of transnational patents (1996-2009) By Eva Dettmann; Iciar Dominguez Lacasa; Jutta Guenther; Bjorn Jindra
  13. Migration and innovation: A survey By Rashidi, Sheida; Pyka, Andreas
  14. Environmental innovations and profitability: How does it pay to be green? An empirical analysis on the German innovation survey By Ghisetti, Claudia; Rennings, Klaus
  15. The success factors of technology-sourcing through mergers & acquisitions: An intuitive meta-analysis By Schön, Benjamin; Pyka, Andreas
  16. Patents RD subsidies and endogenous market structure in a Schumpeterian economy By Angus C.Chu; Yuichi Furukawa; Lei Ji
  17. What types of bondholders impede corporate innovative activities? By Hasan, Iftekhar; O’Brien, Jonathan; Ye , Pengfei
  18. Weak and strong cross-sectional dependence: a panel data analysis of international technology diffusion By Ertur, C.; Musolesi, A.
  19. The persistence of firms' knowledge base: A quantile approach to Italian data By Alessandra Colombelli; Francesco Quatraro
  20. Turkish-German innovation networks in the European research landscape By Prostolupow, Irene; Pyka, Andreas; Heller-Schuh, Barbara
  21. Patent litigation in Europe By Cremers, Katrin; Ernicke, Max; Gaessler, Fabian; Harhoff, Dietmar; Helmers, Christian; McDonagh, Luke; Schliessler, Paula; Van Zeebroeck, Nicolas
  22. GRADUATES’ COMPETENCIES FOR THE INNOVATION LABOUR MARKET By Natalia Shmatko
  23. Rethinking directed technical change with endogenous market structure By Lei Ji
  24. Digital Dark Matter and the Economic Contribution of Apache By Shane Greenstein; Frank Nagle
  25. Cash in advance constraint on RD in a Schimpeterian growth model with an endogenous market structure By Chienyu Huang; Juin Jen Chang; Lei Ji
  26. Public sector e-innovations. E-government and its impact on corruption By Liliana Proskuryakova; Gulnara Abdrakhmanova; Hans Pitlik
  27. Peer Effects in Endogenous Networks By Timo Hiller; Timo Hiller
  28. The Retraction Penalty: Catastrophe and Consequence in Scientific Teams By Ginger Zhe Jin; Benjamin Jones; Susan Feng Lu; Brian Uzzi

  1. By: Leonid Gokhberg (National Research University Higher School of Economics, First Vice Rector; Institute for Statistical Studies and Economics of knowledge); Tatiana Kuznetsova (National Research University Higher School of Economics. Institute for Statistical Studies and Economics of knowledge. Director of the Centre for S&T, Innovation and Information Policies); Vitaly Roud (National Research University Higher School of Economics. Institute for Statistical Studies and Economics of knowledge. Research assistant); Stanislav Zaichenko (National Research University Higher School of Economics. Institute for Statistical Studies and Economics of knowledge. Senior research assistant)
    Abstract: “Monitoring innovation activities of innovation process participants” is a project which has been carried out by the Higher School of Economics (HSE) for several years to promote monitoring and analysis of innovation issues in general, and on specific activities of its particular actors from a scientific research perspective. The project is aimed at accumulating empirical knowledge about the nature and types of interaction between various actors of the national innovation system. In 2009-2010 the study was targeted at manufacturing and service sector companies while the 2010-2011 study targeted at R&D organisations. The specific objective for 2011 was studying various aspects of applied research organisations’ involvement in the innovation process (application of R&D results in the economy). The study yielded the following results: - A concept for monitoring R&D organisations’ innovation activities was proposed, including operational definition of such activities; - Survey programme and tools to monitor Russian R&D organisations were developed, including advanced methodological and procedural approaches as well as practical experience; - Results of R&D organisations’ innovation activities survey were analysed and compared with available statistical data; the collected data also allows to identify and systematise various factors and conditions affecting innovation activities of these organisations; Eventually areas for updating the survey’s concept and tools were identified
    Keywords: R&D institutions, public research institutes, S&T results, knowledge transfer, technology transfer, innovation, research management, innovation management, microdata, Russia
    JEL: O31 O32 O33 O38
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp06sti2013&r=ino
  2. By: Maxim Kotsemir (National Research University Higher School of Economics, Institute for Statistical Studies and Economics of Knowledge, Research Laboratory for Science and Technology Studies, Junior Research Fellow.); Alexander Abroskin (National Research University Higher School of Economics; Institute for Statistical Studies and Economics of Knowledge, Department for Strategic Foresight, Chief Research Fellow, Associate Professor, Doctor of science); Dirk Meissner (National Research University Higher School of Economics, Institute for Statistical Studies and Economics of Knowledge, Research Laboratory for Science and Technology Studies, Deputy Laboratory Head.)
    Abstract: This paper is devoted to the analysis of evolution of innovation concepts, aspects and types. First emergence and evolution of different aspects and concepts of innovation are analyzed, and then the development of innovation concepts from a historical perspective and finally an overview of the types of innovation classifications developed in the literature are given. Complementary the different definitions of innovation are described and analyzed in detail. The main goal of the article is to identify, describe and visualize the development trend of innovation conceptualization and understanding over time
    Keywords: innovation concepts, innovation types, aspects of innovation, innovation systems, innovation ecosystems, typology of innovation, product innovation, process innovation, service innovation, marketing innovation, organization innovation, business innovation
    JEL: B10 B20 O31 O32 O33 Q55
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp05sti2013&r=ino
  3. By: Acemoglu, Daron (MIT, CEPR and NBER); Akcigit, Ufuk (University of Pennsylvania and NBER); Bloom , Nicholas (Stanford University, NBER and CEPR); Kerr , William (Harvard University, Bank of Finland, and NBER)
    Abstract: We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type firms, which differ in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on firm-level output, R&D and patenting. The model provides a good fit to the dynamics of firm entry and exit, output and R&D, and its implied elasticities are in the ballpark of a range of micro estimates. We find industrial policy subsidizing either the R&D or the continued operation of incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 5% of GDP reduces welfare by about 1.5% because it deters entry of new high-type firms. On the contrary, substantial improvements (of the order of 5% improvement in welfare) are possible if the continued operation of incumbents is taxed while at the same time R&D by incumbents and new entrants is subsidized. This is because of a strong selection effect: R&D resources (skilled labor) are inefficiently used by low-type incumbent firms. Subsidies to incumbents encourage the survival and expansion of these firms at the expense of potential high-type entrants. We show that optimal policy encourages the exit of low-type firms and supports R&D by high-type incumbents and entry.
    Keywords: entry; growth; industrial policy; innovation; R&D; reallocation; selection
    JEL: E02 L11 O31 O32 O33
    Date: 2013–09–25
    URL: http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_022&r=ino
  4. By: Anna Zaytseva (Centre d'etudes de la vie politique, Universite Libre de Bruxelles); Olga Shuvalova (Research Fellow, Institute for Statistical Studies and Economics of Knowledge, Laboratory for Economics of Innovation); Dirk Meissner (Deputy Head, Laboratory for Science and Technology Studies, Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics)
    Abstract: Innovations are commonly seen as resulting from the commercialization of new ideas and technological goods by dedicated organizations, especially firms. This conception is reflected in a producer-oriented approach to science, technology and innovation policy-making (STI). However a new understanding of the role of users within innovation processes is gradually taking shape, with profound policy implications. User innovations are often not based on technological improvement or R&D and remain largely under-estimated. Although there are many case studies of user innovators at the industry level, the role of users is not captured by general statistics on innovation. Up to now the only exception is the empirical evidence-based study of user innovation carried out in the UK in 2009. Recently it was complemented by empirical data from the USA and Japan. The present article aims to contribute to closing the gap of empirical data on user engagement into innovation activities at cross-country level. The analysis is based on the results from a national survey carried out in Russia in 2011. The findings contribute to the better understanding of user innovators profile and of the factors which underpin user innovator activities in the context of emerging economies. The article is organized as follows. The first section reviews the relevant literature on the user innovation concept and the main features of user innovations as compared to producer-generated innovations, as well as on the measurement of user innovators. The second section presents the research methodology and the main empirical results. Finally, the paper discusses some of main analytical and policy implications of the empirical findings
    Keywords: User Innovation, Innovation Sources, Open Innovation, Innovation Management, Demand Driven Innovation
    JEL: L21 M10 M14 M31 O21 O32 O33
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp08sti2013&r=ino
  5. By: Maxim Kotsemir (National Research University Higher School of Economics, Institute for Statistical Studies and Economics of Knowledge, Research Laboratory for Science and Technology Studies, Junior Research Fellow.); Dirk Meissner (National Research University Higher School of Economics, Institute for Statistical Studies and Economics of Knowledge, Research Laboratory for Science and Technology Studies, Deputy Laboratory Head.)
    Abstract: This paper introduces the evolving understanding and conceptualization of innovation process models. From the discussion of different approaches towards the innovation process understanding and modeling two types of approaches to the evolution of innovation models are developed and discussed. First the so-called innovation management approach which focuses on the evolution of the company innovation management strategies in different socioeconomic environments. Second is the analysis the evolution of innovation models themselves in conceptual sense (conceptual approach) as well as analysis of theoretical backgrounds and requirements for these models. The main focus of analysis in this approach is on advantages and disadvantages of different innovation models in their ability to describe the reality of innovation processes. The paper focuses on the advantages and disadvantages as well as potentials and limitations of the approaches and also proposes potential future developments of innovation models as well as the analysis of driving forces that underlie the evolution of innovation models recently.
    Keywords: innovation models, innovation process, generations of innovation models, process dimension of innovation, innovation models evolution; innovation management.
    JEL: O14 O30 O31 O32 O33 Q55
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp10sti2013&r=ino
  6. By: G. Parmentier (CERAG - Centre d'études et de recherches appliquées à la gestion - CNRS : UMR5820 - Université Pierre-Mendès-France - Grenoble II); Vincent Mangematin (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: The digital creative industries exemplify innovation processes in which user communities are highly involved in product and service development, bringing new ideas, and developing tools for new product uses and environments. We explore the role of user communities in such co-innovation processes via four case studies of interrelations between firms and their communities. The digitization and virtualization of firm/community interactions are changing how boundaries are defined and how co-innovation is managed. The transformation of innovation management is characterized by three elements: opening and redefining firm boundaries; opening of products and services to community input and reducing property rights; and reshaping organization and product identities. Innovation in collaboration with user communities requires firms to orchestrate their communities and their inter-relationships to encourage the creativity and motivation of users, and develop the community's innovatory capacity.
    Keywords: Online communities; User; Innovation; Video game; Community management; Co-innovation
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hal:gemptp:halshs-00848861&r=ino
  7. By: Stadler, Manfred
    Abstract: We develop a dynamic stochastic general-equilibrium model of science, education and innovation to explain the simultaneous emergence of innovation clusters and stochastic growth cycles. Firms devote human-capital resources to research activities in order to invent higher quality products. The technological requirements in climbing up the quality ladders increase over time but this hampering effect is compensated for by an improving qualification of researchers allowing for a sustainable process of innovation and scale-invariant growth. Jumps in human capital, triggered by scientific breakthroughs, induce innovation clusters across industries and generate long-run growth cycles. --
    Keywords: Science,Education,Innovation clusters,Stochastic growth cycles
    JEL: C61 E32 O33
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:tuewef:60&r=ino
  8. By: Evers, Lisa; Miller, Helen; Spengel, Christoph
    Abstract: 11 European countries now operate IP Box regimes that provide substantially reduced rates of corporate tax for income derived from important forms of intellectual property. We incorporate these policies into forward-looking measures of the cost of capital, effective marginal tax rates and effective average tax rates. We show that the treatment of expenses relating to IP income is particularly important in determining the effective tax burden. A key finding is that regimes that allow expenses to be deducted at the ordinary corporate income tax rate, as opposed to the IP Box tax rate, may result in negative tax rates and can thereby provide a subsidy to unprofitable projects. We assess the specific design features of different regimes against the possible policy aim of improving the incentives to undertake R&D investment in a country. While some countries have tried to tie the policy to real activities, others have designed a policy targeted at the income streams associated with intellectual property. A key concern is the role that IP Boxes may play in increased, and possibly harmful, tax competition between European countries. --
    Keywords: corporate taxation,effective tax rate,innovation,tax incentive patent box,innovation box,license box,tax competition
    JEL: H25 H32 H87 K34 O38
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13070&r=ino
  9. By: Ashima Goyal (Indira Gandhi Institute of Development Research; Institute of Economic Growth)
    Abstract: The paper explores the contribution of innovations to Indian growth. Inclusive innovations aid catch-up and close productivity gaps. An analytical framework helps to characterize policies that contribute to such innovations. Recent telecommunication and mobile banking policies are assessed against these. While policy can directly encourage it, if innovation depends on market size above a threshold, policies that expand size can be more effective in inducing innovation. While policy successfully expanded mobile use, increasing revenue has recently taken precedence over expanding the market. Poor provision of the relevant infrastructure continues to exclude sections of the population and limit spillovers. Regulatory measures that limited market size were partly responsible for India's lack of success in mobile banking, compared to Pakistan.
    Keywords: Inclusive innovation, technology policy, telecom, mobile banking
    JEL: O31 O33 O38
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:ind:igiwpp:2013-018&r=ino
  10. By: Evgeniy Kutsenko (Senior Research Fellow, Centre for S&T, Innovation and Information Policies, Institute for Statistical Studies and Economics of Knowledge, National Research University – Higher School of Economics (HSE),); Dirk Meissner (Deputy Head, Laboratory for Science and Technology Studies, Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics)
    Abstract: Cluster policy is recognized as one of the pivotal elements of state-of-art innovation policy. State support for clusters helps to take into account regional peculiarities and engage the most innovative local actors into the process of innovation policy drafting and implementation. Cluster development stimulates trust building and enhances knowledge spillovers among different organizations in the region. Finally the cluster approach makes innovation policy more systemic by coordinating measures aimed to support different actors (large companies, SMEs, universities, venture funds) towards comprehensive efforts linking the most perspective localized industries (ecosystems). The development of clusters has been determined as one of the priorities of the Strategy of Innovative Development of the Russian Federation for the period to 2020 which was confirmed end 2010. In the framework of this Strategy the first national cluster program was launched in 2012. The paper is devoted to the detailed description of the background of the national cluster program in Russia and its first phase – the selection of the pilot innovative clusters – which was implemented last year. Special attention is given to the comparison of planned design of the Russian cluster program with such widely known cluster programs as the BioRegio, InnoRegio and Les poles de competitivite. The similarities and peculiarities of the Russian program have been defined that allowed to identify several most significant areas for improvement.
    Keywords: Clusters, knowledge spillovers, cluster policy, innovation policy.
    JEL: O14 O17 O25 O38 O P16 R11 R
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp11sti2013&r=ino
  11. By: Ekaterina Khramova (Research Fellow, Institute for Statistical Studies and Economics of Knowledge); Dirk Meissner (Deputy Head, Laboratory for Science and Technology Studies, Institute for Statistical Studies and Economics of Knowledge, National Research University Higher School of Economics); Galina Sagieva (Senior Research Fellow, Institute for Statistical Studies and Economics of Knowledge; Department Head, Department for Research of Intellectual Property and Technology Transfer)
    Abstract: Patent data provide a rich set of information which can be used for comparative studies and trend analysis. The paper presents a systematic overview of the most appropriate tools methodologies that are available for determining the technological specialization of countries. Such analysis includes a discussion of databases, approaches, and indexes appropriate for this kind of analysis. This paper discusses different indicators of technological specialisation, concentration, and patent quality are analysed, including Revealed Technological Advantage (RTA) index, patent share, C20 concentration index, and Gini concentration index. the main available patent databases, especially those with open access, and summarizes arguments for the study of technological specialisation based on assignee and inventor patent data. Also the limits and potentials of the statistics on resident / nonresident patenting on internal and external markets are discussed in the paper.
    Keywords: Revealed Technological Advantage (RTA) index, patent share, C20 concentration index, Gini concentration index, country technological position
    JEL: O31 O32 O33 O34 O47 O57 L24
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp09sti2013&r=ino
  12. By: Eva Dettmann (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany); Iciar Dominguez Lacasa (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany); Jutta Guenther (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany and Friedrich Schiller University Jena Faculty of Economics, Carl-Zeiss-Str. 3, 07743 Jena, Germany); Bjorn Jindra (Halle Institute for Economic Research (IWH), Department of Structural Change, Kleine Markerstrasse 8, 06108, Halle (Saale), Germany and Copenhagen Business School, Department of International Economics and Management, Solbjerg Plads 3, DK-2000 Frederiksberg, Denmark and University of Sussex, Science and Technology Policy Research (SPRU) Famer, Brighton, BN1 9SL, United Kingdompostion)
    Abstract: This paper analyses the determinants of spatial distribution of foreign technological activity across 96 German regions (1996-2009). We identify foreign inventive activity by applying the ‘cross-border-ownership concept’ to transnational patent applications. The descriptive analysis shows that foreign technological activity more than doubled during the observation period with persistent spatial heterogeneity in Germany. Using a pooled count data model, we estimate the effect of various sources for externalities on the extent of foreign technological activity across regions. Our results show that foreign technological activity is attracted by technologically specialised sectors of regions. In contrast to existing findings this effect applies both to foreign as well as domestic sources of specialisation. We show that the relation between specialization and foreign technological activity is non-linear and that it is influenced by sectoral heterogeneity. Externalities related to technological diversification attract foreign R&D only into ‘higher order’ regions.
    Keywords: foreign direct investment, technology, Europe, patent information
    JEL: O32 O33 R12
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:17sti2013&r=ino
  13. By: Rashidi, Sheida; Pyka, Andreas
    Abstract: In a world characterized by competition on a global scale, persistent structural change driven by innovation and aging societies in industrialized economies, also the competition for the best talents on the labour markets becomes global and more intensive. Therefore it is not surprising that old-fashioned brain drain explanations for migration are no longer convincing. In the knowledge-based economies of the 21st centuries the ideas of brain circulation and international (diaspora) innovation networks become prevailing and should guide the design of migration policies. This paper is a survey on the theoretical and empirical approaches which address the important relationship between migration and innovation. --
    Keywords: Innovation,Migration
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:fziddp:772013&r=ino
  14. By: Ghisetti, Claudia; Rennings, Klaus
    Abstract: Much of the empirical literature analysing the relation between environmental innovation and competitiveness has focused on the question whether 'it pays to be green'. We differentiate between different types of environmental innovations, which will be disentangled in those aiming at reducing the negative externalities and those allowing for efficiency increases and cost savings. What we analyze is at first the extent to which these two typologies have impacts on firms' profitability with opposite signs, and, secondly, whether the motivations driving the adoption of those innovations make the difference in terms of economic gains. We find empirical evidence that both the typology of Environmental Innovation and the driver of their adoption affect the sign of the relationship between competitiveness and environmental performance. The empirical strategy is based on a sample of German firms and makes use of a merge of two waves of the Mannheim Innovation Panel in 2011 and 2009 that allow overcoming some endogeneity issues which may arise in a cross-section setting. --
    Keywords: Profitability,Externality Reducing Innovations,Energy and Material Efficiency Innovations,Mannheim Innovation Panel
    JEL: Q55 Q20 M10 K32
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13073&r=ino
  15. By: Schön, Benjamin; Pyka, Andreas
    Abstract: With mergers & acquisitions playing an increasingly important role in today's business world, academic research has strived to follow this trend by investigating their underlying causes and consequences. For a long time this research focused on the analysis of the financial effect of mergers & acquisitions as measured by market value or debt level. Thus, despite being a major vehicle of industry concentration and method of reallocation of resources, the technological impact of mergers & acquisitions remained comparatively underinvestigated for a long time. This, however, has changed in recent years. With the prevalence of the resource-based view and its derivates as the dominant logic in analysing today's knowledge-intensive industries the focus shifted towards the technological aspects of mergers & acquisitions. With both mergers & acquisitions and innovation being centrepieces of competitive strategies in the modern economy, it is of central importance to understand the consequences of mergers & acquisitions for the innovative potential of firms. After more than twenty years of research in this field, it is time to take stock of what we know about the technological impact of mergers & acquisitions and its determinants. The aim of this paper is to provide an overview of the respective research by performing a meta-analysis of the empirical studies in the field. The intuitive setup allows for a detailed analysis of the individual determinants while differentiating between the impact on innovation input and output. We identify the knowledge characteristics of the partnering firms as being essential to the technological success of mergers & acquisitions. Important implications for policy makers, practitioners and future research are derived. --
    Keywords: Innovation,Mergers and Acquisitions
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:fziddp:782013&r=ino
  16. By: Angus C.Chu (University of Liverpool United Kingdom); Yuichi Furukawa (Chukyo University Japan); Lei Ji (Shanghai University of finance and economics China)
    Abstract: This study explores the different implications of patent breadth and RD subsidies on economic growth and endogenous market structure in a Schumpeterian growth model. We fend that when the number of firms is fixed in the short run, patent breadth and R&D subsidies serve to increase economic growth as in previous studies. However, when the number of firms adjusts endogenously in the long run, RD subsidies increase economic growth but decrease the number of firms,whereas patent breadth expands the number of firms but reduces economic growth. Therefore, RD subsidy is perhaps a more suitable policy instrument than patent breadth for the purpose of stimulating long-run economic growth.
    Keywords: economic growth,endogenous market structure, patents rd subsidies
    JEL: O30 O40
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:fce:doctra:1319&r=ino
  17. By: Hasan, Iftekhar (Fordham University and Bank of Finland); O’Brien, Jonathan (Lally School of Management & Technology, Rensselaer Polytechnic Institute); Ye , Pengfei (Lally School of Management &Technology, Rensselaer Polytechnic Institute)
    Abstract: This study investigates whether institutional bond blockholders (i.e., bond funds that hold more than 5% of a firm’s outstanding bonds) impede firm innovative activities, and if they do, through which channels. We find that long-term bond blockholders do not discourage firms from conducting innovative activities. Short-term bond blockholders, however, significantly reduce both firm investments in R&D and the innovative quality of these investments. Furthermore, their negative impact is stronger than the negative impact of short-term stockholders. Our results cannot be fully explained by short-term bondholders’ a priori investment preferences and are robust to possible endogeneity concerns. Overall, they suggest that the option of the ‘Wall Street walk’ allows bondholders to exert considerable influence on firms’ risk-taking decisions.
    Keywords: bondholder; innovation; investment horizon; Wall Street walk
    JEL: G23 G31
    Date: 2013–10–03
    URL: http://d.repec.org/n?u=RePEc:hhs:bofrdp:2013_023&r=ino
  18. By: Ertur, C.; Musolesi, A.
    Abstract: This paper provides an econometric examination of geographic R&D spillovers among countries by focusing on the issue of cross-sectional dependence. By applying several unit root tests, we first show that when the number of lags of the autoregressive component of augmented Dickey Fuller test-type specifications or the number of common factors is estimated in a model selection framework, the variables (total factor productivity and R&D capital stocks) appear to be stationary. Then, we estimate the model using two complementary approaches, focusing on spatial autoregressive errors and unobserved common correlated factors. These approaches account for different types of cross-sectional dependence and are related to the concepts of weak and strong cross-sectional dependence recently developed in the literature.
    Keywords: PANEL DATA;CROSS-SECTIONAL CORRELATION;SPTIAL MODELs;FACTOR MODELS;UNIT ROOT;INTERNATIONAL TECHNOLOGY DIFFUSION;GEOGRAPHY
    JEL: C23 C5 F0 O3
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:gbl:wpaper:2013-09&r=ino
  19. By: Alessandra Colombelli (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - Université Nice Sophia Antipolis [UNS] - CNRS : UMR6227); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis [UNS])
    Abstract: The paper investigates the patterns of persistence of innovation and of the properties of firms' knowledge base (KB) across a sample of Italian firms in the period 1998-2006. The analysis draws upon a theoretical representation of knowledge as a collective good, stemming from the recombination of knowledge bits that are fragmented and dispersed across economic agents. On this basis, we derived properties of the KB like the coherence, the cognitive distance and the variety, and investigated their patterns of persistence over time. The empirical analysis is implemented by exploring the autocorrelation structure of such properties within a quantile regression framework. The results suggest that the properties of knowledge are featured by somewhat peculiar patterns as compared to knowledge stock, and that such evidence is also heterogeneous across firms in different quantiles.
    Keywords: Persistence; Innovation; Knowledge Coherence; Variety; Cognitive Distance; Quantile regression; autocorrelation
    Date: 2013–09–27
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00867132&r=ino
  20. By: Prostolupow, Irene; Pyka, Andreas; Heller-Schuh, Barbara
    Abstract: Research networks are regarded as channels for knowledge creation and diffusion and are thus essential for the development and integration of economies. In this paper we have a look at the long Turkish-German-migration history which should offer opportunities for both countries to benefit from brain circulation, transnational entrepreneurs and research networks. The present paper examines the structure of research networks of the European Framework Programmes (FP) that are established by joint participation of organizations in research projects, in particular German research organizations with Turkish participants in FP5 to FP7 in the knowledge-intensive technology fields ICT, Biotechnology and Nanoscience. A better understanding of these networks allows for improving the design of research policies at national levels as well as at the EU level. The empirical examination of network properties reveals that the diverse networks show a range of similarities in the three technology fields in each FP such as the small-world properties. Moreover, our findings show that German actors play a specific role in most examined research networks with Turkish participation. --
    Keywords: Turkish-German-migration history,brain circulation,innovation networks,research networks,EU Framework Programmes,small-world characteristics,centrality measures
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:fziddp:792013&r=ino
  21. By: Cremers, Katrin; Ernicke, Max; Gaessler, Fabian; Harhoff, Dietmar; Helmers, Christian; McDonagh, Luke; Schliessler, Paula; Van Zeebroeck, Nicolas
    Abstract: We compare patent litigation cases across four European jurisdictions - Germany, France, the Netherlands, and the UK - covering cases filed during the period 2000-2008. For our analysis, we assemble a new dataset that contains detailed information at the case, litigant, and patent level for patent cases filed at the major courts in the four jurisdictions. We find substantial differences across jurisdictions in terms of case loads. Courts in Germany hear by far the largest number of cases in absolute terms, but also when taking country size into account. We also find important between-country differences in terms of outcomes, the share of cases that is appealed, as well as the characteristics of litigants and litigated patents. A considerable number of patents are litigated in multiple jurisdictions, but the majority of patents are subject to litigation only in one of the four jurisdictions. --
    Keywords: Patent litigation,Europe
    JEL: O34 K11 K41
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13072&r=ino
  22. By: Natalia Shmatko (National Research University Higher School of Economics, Institute for Statistical Studies and Economics of Knowledge, Department for Human Capital Studies, head of Department)
    Abstract: The paper highlights key research questions that concern skills and abilities of highly qualified personnel who are employed in the innovation related professions in the labour market. Developing a national system of competencies which would allow selecting and training personnel capable of creating and applying innovations is a very challenging task. The solution implies first of all the construction of the relevant methodologies and tools for the assessment of competencies acquired during vocational education and training and competencies required at working places. A survey of engineers conducted by the Institute for Statistical Studies and Economics of Knowledge of the National Research University Higher School of Economics in 2011 strives for moving beyond the simple slogans of the knowledge economy and the received wisdom about shifts from low to higher skills, from blue to white collars. This study investigates how far the trend in skill requirements follows market expectations. Two large groups of highly qualified STI personnel are studied: the first includes the engineering and technical personnel with top-level qualifications employed by industrial enterprises, the other involves the staff of research, development, design organisations whose responsibilities include R&D (à total of 3158 graduates were surveyed). The paper is organized as follows. First, the data collection approach and analysis methodology are introduced and results discussed. Second, engineering education and application of acquired skills are analysed. The paper concludes with a summary of the major findings that show the important role of ‘general’ competencies required from engineers at their jobs, such as self-organisation, openness to new information, the ability and willingness to learn, and communication skills.
    Keywords: competency; innovation economy; engineers, graduates; knowledge economy; labour market; researchers; skills; vocational education and training.
    JEL: I2 L2
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp13sti2013&r=ino
  23. By: Lei Ji (Ofce sciences-po,skema Business school)
    Abstract: I consider directed technical change in an economy where market structure is endogenous. Endogeneity of market structure leads to both theoretical and empirical implications that are substantially different from those in the existing literature and that in some cases are rather surprising. There are two dimensions of directed technical change: directed firm entry new firms enter the industry with higher returns and directed in-house research and development (R&D is higher in the industry with higher returns.). Directed firm entry responds to the industry market size effect and the price effect as in the existing literature. In sharp contrast to the existing literature, directed R&D depends on firm rather than industry market size. Furthermore, the firm’s market size is endogenous, and its response to economic conditions affect several results on the behavior of directed technical change. The endogeneity of firm size has generally been ignored in the previous literature. Directed technical change alters the relative demands for factors of production and leads to a change in relative factor returns. Directed firm entry changes relative factor returns through a social return to variety an externality, and directed RD changes relative factor returns through changes in relative factor productivities. Empirically, the second channel is the main force shaping relative factor productivities and hence relative factor returns. The model also includes fixed operating cost, which turns out to be important for the direction of RD and for the existence of balanced growth path BGP for the economy. The model provides a complete solution for the economy’s transition dynamics as well as its balanced growth path.
    Keywords: Directed technical change.Endogenous market structure,Relative factor returns
    JEL: E25 O30 O31 O33
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:fce:doctra:1318&r=ino
  24. By: Shane Greenstein; Frank Nagle
    Abstract: Researchers have long hypothesized that spillovers from government, university, and private company R&D contribute to economic growth, but these contributions may be difficult to measure when they take a non-pecuniary form. The growth of networking devices and the Internet in the 1990s and 2000s magnified these challenges, as illustrated by the deployment of the descendent of the NCSA HTTPd server, otherwise known as Apache. This study asks whether this experience could produce measurement issues in standard productivity analysis, specifically, omission and attribution issues, and, if so, whether the magnitude is large enough to matter. The study develops and analyzes a novel data set consisting of a 1% sample of all outward-facing web servers used in the United States. We find that use of Apache potentially accounts for a mismeasurement of somewhere between $2 billion and $12 billion, which equates to between1.3 percent and 8.7 percent of the stock of prepackaged software in private fixed investment in the United States. We argue that these findings point to a large potential undercounting of “digital dark matter” and related IT spillovers from university and federal funding.
    JEL: O3 O31 O47
    Date: 2013–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19507&r=ino
  25. By: Chienyu Huang (Southwestern University of Finance and economics); Juin Jen Chang (Institute of economics, Academia Sinica Taiwan); Lei Ji (Ofce sciences-po,skema Business School)
    Abstract: In this paper we explore the effects of monetary policy on the number of firms, firm market size, inflation and growth in a Schumpeterian growth model with endogenous market structure and cash-in-advance CIA constraints on two distinct types of RD investment in-house RD and entry investment. This allows us to match the empirical evidence and provides novel implications to the literature. We show that if in-house RD (quality improvement-type R&D) is subject to the CIA constraint, raising the nominal interest rate increases the number of firms and inflation, but decreases the firm size and economic growth. By contrast, if entry investment variety expansion-type RD is subject to the CIA constraint, these variables adversely respond to such a monetary policy. Besides, our model generates rich transitional dynamics in response to a change in monetary policy, when RD entry is restricted by a cash constraint.
    Keywords: CIA constraints on RD, endogenous market structure,monetary policy,economic growth
    JEL: O30 O40 E41
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:fce:doctra:1316&r=ino
  26. By: Liliana Proskuryakova (Research Laboratory for Science and Technology Studies, National Research University “Higher School of Economics”); Gulnara Abdrakhmanova (Director Center for Statistics and Monitoring of Information Society, National Research University “Higher School of Economics”); Hans Pitlik (WIFO - Austrian Institute of Economic Research)
    Abstract: The paper aims at assessing indicators and individual elements of e-government of selected countries in 2009-2010, and the interrelation of e-government with corruption in the public sector. The authors explore possible causal and dependency relations of the established interlink between e-government and public sector corruption. Although it is universally acknowledged that corruption is an evil, there is much debate over which determinants of corruption are important. Using econometric analysis for sizeable country samples the authors verified the closeness of interrelation between e-government indicators and ICT Development Index indicators, such as online services quality and ICT usage, on one hand, and the level of perceived public sector corruption, on the other hand. The major research papers were analyzed, along with international rankings and databases of international organizations. Based on the analysis recommendations for overcoming international e-government measurement constraints are put forward, as well as suggestions for future studies of the topic
    Keywords: Public sector, innovation, e-government, ICT, corruption
    JEL: D73 H70 P17 O33 Z18
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:hig:wpaper:wpbrp04sti2013&r=ino
  27. By: Timo Hiller; Timo Hiller
    Abstract: This paper presents a simple model of strategic network formation with local complementarities in effort levels and positive local externalities for a general class of payoff functions. Results are obtained for one-sided and two-sided link creation. In both cases (pairwise) Nash equilibrium networks are nested split graphs, which are a strict subset of core-periphery networks. The relevance of the convexity of the value function (gross payoffs as a function of neighbours' effort levels when best responding) in obtaining nested split graphs is highlighted. Under additional assumptions on payoffs, we show that the only efficient networks are the complete and the empty network. Furthermore, there exists a range of linking cost such that any (pairwise) Nash equilibrium is inefficient and for a strict subset of this range any (pairwise) Nash equilibrium network structure is different from the efficient network. These findings are relevant for a wide range of social and economic phenomena, such as educational attainment, criminal activity, labor market participation, and R&D expenditures of rms.
    Keywords: Strategic network formation, peer effects, strategic complements, positive externalities.
    JEL: D62 D85
    Date: 2013–09
    URL: http://d.repec.org/n?u=RePEc:cep:stitep:/2013/564&r=ino
  28. By: Ginger Zhe Jin; Benjamin Jones; Susan Feng Lu; Brian Uzzi
    Abstract: What are the individual rewards to working in teams? This question extends across many production settings but is of long-standing interest in science and innovation, where the “Matthew Effect” suggests that eminent team members garner credit for great works at the expense of less eminent team members. In this paper, we study this question in reverse, examining highly negative events – article retractions. Using the Web of Science, we investigate how retractions affect citations to the authors’ prior publications. We find that the Matthew Effect works in reverse – namely, scientific misconduct imposes little citation penalty on eminent coauthors. By contrast, less eminent coauthors face substantial citation declines to their prior work, and especially when they are teamed with an eminent author. A simple Bayesian model is used to interpret the results. These findings suggest that a good reputation can have protective properties, but at the expense of those with less established reputations.
    JEL: J24 L15 L23 O3
    Date: 2013–10
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:19489&r=ino

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