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on Innovation |
| By: | Leandro D’Aurizio, (Bank of Italy); Marco Marinucci (Bank of Italy) |
| Abstract: | The paper describes the innovation strategies of a representative sample of Italian firms participating to the Bank of Italy’s yearly survey. The evidence covers the 2008-2010 period and highlights some stylized facts widely discussed in the economic literature. Results show that the activity of R&D is carried out within the firm, basically self-financed and it is more intense among bigger firms settled in central and northern Italy. On the other hand Public funding of R&D seems not able to influence the firms’ decision of undertaking the innovation process. Even though R&D expenditure and innovation activity are highly correlated, managerial best practices tend to be positively associated with R&D expenditure but to a lesser extent with the firms’ ability to introduce an innovation. Moreover, exporting firms have a higher propensity both to invest in R&D and to patent their intellectual property. Finally, the survey shows that the most relevant obstacles for Italian firms to innovate are the high setup costs and the lack of skilled research personnel. |
| Keywords: | research and development, innovation |
| JEL: | O31 O32 L25 |
| Date: | 2013–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_197_13&r=ino |
| By: | Azagra-Caro,Joaquín M.; Consoli,Davide |
| Abstract: | This paper investigates the influence of country-specific factors on the degree of reliance on public knowledge among innovators. Using backward citations as our dependent variable we find that national characteristics indicative of the quality of the innovation system generally have a positive effect on knowledge flows. A national bias towards applied research and development (R&D) has a negative impact, but this is moderated by individual public-private cooperation. Overall, our empirical exercise confirms the strong mutual influence of the characteristics of applicants and the attendant institutional context, thus contributing to the debate on the centrality of university/government-industry interaction in the current policy debate. Our sample consists of some 600,000 patents from the EU27 member states in years 1990-2007. The policy implications of our empirical exercise suggest the importance of strengthening the quality of innovation infrastructures and of setting targets for the composition of R&D funding to achieve a balance between patent knowledge production and knowledge flows. Last but not least, this analysis provides broad support for policies aimed at enhancing public-private cooperation to compensate for the effects of strong bias in the direction of national research. |
| Keywords: | Knowledge flows, innovation systems, national innovative capacity, patents, citations |
| JEL: | O31 O32 O33 |
| Date: | 2013–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:ing:wpaper:201304&r=ino |
| By: | Hasnas, Irina; Lambertini, Luca; Palestini, Arsen |
| Abstract: | In recent years Open Innovation (OI) processes have been receiving growing attention from the empirical and theoretical economic literature, where a debate is taking place on the aspects of complementarity or substitutability between internal R&D and OI spillover. By means of a differential game approach, we analyze the case of substitutability in an OI setup in a Cournot duopoly where knowledge spillovers are endogenously determined via the R&D process. The game produces multiple steady states, allowing for an asymmetric solution where a firm may trade off the R&D investment against information absorption from the rival. The technical analysis and the numerical simulations point out that the firm which commits to a higher level of OI absorption produces a smaller output and enjoys higher profits than its rival. -- |
| Keywords: | R&D,spillovers,dynamic games |
| JEL: | C73 L13 O31 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:111&r=ino |
| By: | Ernest Miguélez (Economics and Statistics Division, World Intellectual Property Organization & AQR-IREA & CReAM); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | The purpose of this paper is to assess the extent to which regions’ absorptive capacity determines knowledge flows’ impact on regional innovation intensity. In particular, it looks at the role of the cross-regional co-patenting and mobility of inventors in fostering innovation, and how regions with large absorptive capacity make the most of these two phenomena. The paper uses a panel of 274 regions over 8 years to estimate a regional knowledge production function with fixed-effects. Network and mobility variables, and interactions with regions’ absorptive capacity, are included among the r.h.s. variables to test the hypotheses. We find evidence of the role of both mobility and networks. However, inflows of inventors are critical for wealthier regions, while have more nuanced effects for less developed areas. It also shows that regions’ absorptive capacity critically adds an innovation premium to the benefits to tap into external knowledge pools. Indeed, the present study corroborates earlier work on the role of mobility and networks for spatial knowledge diffusion and subsequent innovation. However, it clearly illustrates that a certain level of technological development is critical to take advantage of these phenomena, and therefore “one-size-fits-all” innovation policies need to be reconsidered. |
| Keywords: | absorptive capacity, inventor mobility, spatial networks, patents, regional innovation. JEL classification: |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201308&r=ino |
| By: | Ådne Cappelen; Arvid Raknerud; Marina Rybalka (Statistics Norway) |
| Abstract: | We address the question of whether the returns to R&D differ between R&D projects funded by public grants and R&D in general. To answer this question, we use a flexible production function that distinguishes between different types of R&D by source of finance. Our approach requires no adjustment of the sample or data in order to include firms that never invest in R&D, in contrast to the standard Cobb-Douglas production specification. We investigate the productivity and profitability effects of R&D using a comprehensive panel of Norwegian firms over the period 2001-2009. The results suggest that the returns to R&D projects subsidized by the Research Council of Norway do not differ significantly from R&D spending in general. Our estimate of the average rate of return to R&D is about 10 percent. This estimate is robust with respect to whether firms with zero R&D are included in the estimation sample or not. In contrast, using a standard Cobb-Douglas specification and restricting the sample of firms to those with positive R&D, leads to implausibly high estimates of the rate of returns. |
| Keywords: | Returns to R&D; Public grants; Public subsidies; Productivity |
| JEL: | C33 C52 D24 O38 |
| Date: | 2013–05 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:740&r=ino |
| By: | Dornbusch, Friedrich; Neuhäusler, Peter |
| Abstract: | It is generally claimed that universities provide the scientific basis for future technological progress. Still, empirical evidence of the impact of direct links between universities and firms remains weak and is often at least inconsistent. This paper aims at contributing to the literature by analyzing how direct academic involvement affects the output of inventive activities of research teams in different organizational backgrounds. By applying a unique dataset of German academic and corporate patents, we find that boundary-spanning knowledge production with academic inventors raises the innovative performance of SMEs and MNEs. Furthermore, geographical proximity between team members is generally shown to be valuable for team performance in terms of the influence on future technological developments. At the same time, the results indicate that academic involvement helps inventor teams to profit from spatially distant knowledge sources. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:37&r=ino |
| By: | Difei Geng (Vanderbilt University); Kamal Saggi (Vanderbilt University) |
| Abstract: | We evaluate the case for non-discrimination in the international protection of intellectual property. If trade is not subject to any frictions then requiring national treatment (NT) in patent protection does not have any consequences for innovation (and welfare) since unfavorable discrimination abroad is fully offset by favorable discrimination at home. In the presence of trade frictions, however, such international offsetting in patent protection is incomplete and innovation incentives are actually lower under NT. The formation of a free trade agreement increases the effective global protection available to members without affecting the protection available to the non-member. |
| Keywords: | Intellectual property rights, patent protection, non-discrimination, national treatment, trade barriers |
| JEL: | F1 O3 |
| Date: | 2013–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:van:wpaper:vuecon-sub-13-00017&r=ino |
| By: | Katarzyna Sznajd-Weron; Janusz Szwabinski; Rafal Weron; Tomasz Weron |
| Abstract: | A fundamental question related to innovation diffusion is how the social network structure influences the process. Empirical evidence regarding real-world influence networks is very limited. On the other hand, agent-based modeling literature reports different and at times seemingly contradictory results. In this paper we study innovation diffusion processes for a range of Watts-Strogatz networks in an attempt to shed more light on this problem. Using the so-called Sznajd model as the backbone of opinion dynamics, we find that the published results are in fact consistent and allow to predict the role of network topology in various situations. In particular, the diffusion of innovation is easier on more regular graphs, i.e. with a higher clustering coefficient. Moreover, in the case of uncertainty – which is particularly high for innovations connected to public health programs or ecological campaigns – a more clustered network will help the diffusion. On the other hand, when social influence is less important (i.e. in the case of perfect information), a shorter path will help the innovation to spread in the society and – as a result – the diffusion will be easiest on a random graph. |
| Keywords: | Diffusion of innovation; Opinion dynamics; Network structure; Watts-Strogatz network; |
| JEL: | C63 D70 O33 |
| Date: | 2013–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1309&r=ino |
| By: | Eva Dettmann; Iciar Dominguez Lacasa; Jutta Günther; Björn Jindra |
| 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 specialisation 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 data |
| JEL: | O32 O33 R12 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iwh:dispap:12-13&r=ino |
| By: | Mohammad Tavassoli; Nunzia Carbonara |
| Abstract: | This paper analyses the effect of variety and intensity of knowledge on the innovative capability of regions. Employing data for Swedish functional regions, the paper tests the role of the variety (related and unrelated) and intensity of (i) internal knowledge generated within the region and also (ii) external knowledge networks flowing into the region in explaining regional innovative capability, as measured by patent applications. The empirical analysis provides robust evidence that both the variety and intensity of internal and external knowledge matter for regions’ innovative capability. When it comes to variety, related knowledge variety plays a superior role. |
| Keywords: | Knowledge intensity, Knowledge variety, Related variety, Unrelated variety, Internal knowledge, External knowledge, Patent applications, Functional regions |
| JEL: | O32 F14 R12 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1317&r=ino |
| By: | Frietsch, Rainer; Neuhäusler, Peter; Rothengatter, Oliver |
| Abstract: | Empirical evidence shows that the distribution of patent applications is highly skewed in terms of company size, with a few large enterprises being responsible for the majority of patent applications. Small and medium-sized enterprises (SMEs), on the other hand, are important players in national innovation systems and are the subject of policy sup-port in many countries. Thus, this study examines the participation rate of SMEs in patenting activities in more detail, differentiating SME patent filings by country and technology area. The analyses are based on a unique, integrated and enriched patent data set of nearly 1.2 million patent applications, built upon PATSTAT data, separating companies into SMEs and large enterprises. The results of descriptive and multivariate analyses reveal that SMEs file fewer interna-tional patents than multinational enterprises (MNEs). However, those SMEs which are active internationally even outperform their larger counterparts in terms of international-ization. It can further be observed that SMEs are more active in emerging technologies, have smaller inventor teams and smaller family sizes on average. Furthermore, patents filed by SMEs are withdrawn more frequently but refused less often. Patents of large firms, on the other hand, have a higher chance of being granted and are cited more frequently. -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:36&r=ino |
| By: | Anuja Utz; Jean-Eric Aubert |
| Keywords: | Agricultural Knowledge and Information Systems Information and Communication Technologies - ICT Policy and Strategies Private Sector Development - E-Business Education - Knowledge for Development Macroeconomics and Economic Growth - Knowledge Economy Agriculture |
| Date: | 2013–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:16134&r=ino |
| By: | Jay Pil Choi (School of Economics, University of New South Wales, Sydney; Department of Economics, Michigan State University); Doh-Shin Jeon (Toulouse School of Economics and CEPR); Byung-Cheol Kim (School of Economics, Georgia Institute of Technology) |
| Abstract: | We study how net neutrality regulations affect high-bandwidth content providers’ investment incentives in quality of services (QoS). We find that the effects crucially depend on network capacity levels. With a limited network capacity, the prioritized delivery services are complements to content providers' investments and can facilitate entry of high-bandwidth content. By contrast, if the network capacity is large enough, the prioritized delivery and QoS investment are substitutes. In either case, the social welfare effects of the prioritized service is ambiguous. In the limited capacity case, the beneficial effects of entry by high-band width content should be weighed against the cost of increasing congestion for other existing content. In the high capacity case, the negative impact of reduced investment incentives can be counterbalanced by the benefit of improved traffic management. Our findings have important implications for the contrasting neutrality regulations across the Atlantic: US FCC treats mobile networks more leniently than fixed networks, while the EU treats them equally. |
| Keywords: | Net neutrality, asymmetric regulation, quality of service, investment incentives, queuing, congestion, mobile/fixed Networks |
| JEL: | L1 L5 O3 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1324&r=ino |
| By: | Raul Ramos (Faculty of Economics, University of Barcelona); Jordi Suriñach (Faculty of Economics, University of Barcelona) |
| Abstract: | Due to ageing population and low birth rates, the European Union (EU) will need to import foreign labour in the next decades. In this context, the EU neighbouring countries (ENC) are the main countries of origin and transit of legal and illegal migration towards Europe. Their economic, cultural and historical links also make them an important potential source of labour force. The objective of this paper is to analyse past and future trends in ENC-EU bilateral migration relationships. With this aim, two different empirical analyses are carried out. First, we specify and estimate a gravity model for nearly 200 countries between 1960 and 2010; and, second, we focus on within EU-27 migration flows before and after the enlargement of the EU. Our results show a clear increase in migratory pressures from ENC to the EU in the near future, but South-South migration will also become more relevant. |
| Keywords: | absorptive capacity, inventor mobility, spatial networks, patents, regional innovation. JEL classification: |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201309&r=ino |
| By: | Kulvik, Martti; Tähtinen, Marja; Ylä-Anttila, Pekka |
| Abstract: | This study focused on two primary areas: 1. To determine what can be learned from biotech and drug development companies that suffered from financial problems and ultimately failed at the beginning of the 21st century. 2. To determine how intellectual capital developed in accordance with such companies and its fate following business failure. We examined six failed Finnish biotechnology companies and two major venture capital companies that have invested in Finnish biotechnology companies. We strongly emphasize that this research is only a case-based and very limited feasibility study. Nevertheless, the results were surprising. We found that intellectual capital was indeed created in the companies and that various aspects of this capital could be identified. To a certain extent, we were also able to follow the post-company steps of intellectual capital and the continuity of its value-creation in novel companies. The study was designed to involve only failed companies, but in four cases we found ourselves interviewing leaders of companies that had been created based on the IC of failed companies. It appears that important knowledge has vested by learning from earlier mistakes, and this learning period has created important intellectual capital that has already been exploited by various companies. Research-intensive companies typically operate in fields where failure is an inherent risk. Governments typically support emerging industries based on high-technology because of their growth potential. The combination of high-intensity R&D and high risks creates a problem for all investors. The created value is primarily in the form of intangible assets, which are not captured in traditional accounting and for which no well-established alternative metrics exist. Consequently, in the case of a company failure, most of the created value added is considered lost. This loss not only complicates the justification of government support policies but typically leads to high initial expectations of the sector that are unfortunately often followed by subsequent disappointments. We think that the present concept of failure may be profoundly misleading. |
| Keywords: | Intellectual capital, biotechnology companies, life science, knowledge recycling, venture capital, failed companies |
| JEL: | G24 G33 J24 L65 M13 O32 |
| Date: | 2013–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:17&r=ino |
| By: | Philippe Aghion; Timothy Besley; John Browne; Francesco Caselli; Richard Lambert; Rachel Lomax; Christopher Pissarides; Nick Stern; John Van Reenen |
| Abstract: | What institutions and policies are needed to sustain UK economic growth in the dynamic world economy of the twentyfirst century? After years of inadequate investment in skills, infrastructure and innovation, there are longstanding structural weaknesses in the economy, all rooted in a failure to achieve stable planning, strategic vision and a political consensus on the right policy framework to support growth. This must change if we are to meet our current challenges and those that may arise in the future. |
| Keywords: | GDP, innovation, infrasstructure, UK economy, skills, apprenticeships, education, government policy |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepsps:28&r=ino |