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on Innovation |
| By: | Christoph Ernst (ZEW Mannheim); Katharina Richter (University of Mannheim & ZEW Mannheim); Nadine Riedel (University of Hohenheim, Oxford University CBT & CESifo Munich) |
| Abstract: | This paper examines the impact of tax incentives on corporate research and development (R&D) activity. Traditionally, R&D tax incentives have been provided in the form of special tax allowances and tax credits. In recent years, several countries moreover reduced their income tax rates on R&D output. Previous papers have shown that all three tax instruments are effective in raising the quantity of R&D related activity. We provide evidence that, beyond this quantity effect, corporate taxation also distorts the quality of R&D projects, i.e. their innovativeness and revenue potential. Using rich data on corporate patent applications to the European patent office, we find that a low tax rate on patent income is instrumental in attracting innovative projects with a high earnings potentialand innovation level. The effect is statistically significant and economically relevant and prevails in a number of sensitivity checks. R&D tax credits and tax allowances are in turn not found to exert a statistically significant impact on project quality. |
| Keywords: | corporate taxation, research and development, micro data |
| JEL: | H3 H7 J5 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:btx:wpaper:1301&r=ino |
| By: | Christine Greenhalgh (Oxford Intellectual Property Research Institute, University of Oxford; and Intellectual Property Research Institute of Australia, The University of Melbourne) |
| Abstract: | This paper begins by surveying recent economic studies of the relationships between technology transfer, intellectual property, innovation and diffusion in emerging countries. It applies this literature to the Indian case. India is a potentially useful case study for several reasons. India has recently been experiencing rapid growth and has several high technology sectors staffed by an absolutely large and highly educated middle class. At the same time an even larger share of its very big population is still working in low productivity agriculture and many of these people are living in extreme poverty. To reduce poverty and improve agricultural productivity India will need to create jobs in labour intensive production and distribution sectors to employ its vast army of unskilled workers. The second part of the paper outlines how industry structure and innovative performance have been progressing in India following the economic reforms of the early 90s and the changes to intellectual property law occasioned by the TRIPS agreement and membership of the World Trade Organisation. In the third section the focus turns to recent science, technology and innovation policy in India. A study of the country’s potential for innovation by the World Bank in 2007 argued that India must proceed on two fronts. In addition to considering how India’s growth prospects can be enhanced by world leading innovations, this volume placed great emphasis on inclusive innovation. This may involve mainly the diffusion and absorption of existing knowledge, but is designed to improve the lot of the poor. The World Bank report proposed a number of new policy directions aimed at speeding up innovation and technology diffusion in India. We attempt to record what changes have been made to innovation policy, foreign direct investment policy and diffusion policy in India in recent years and assess whether these are likely to be effective. |
| Keywords: | Science and technology policy, developing economies, IP rights, innovation |
| JEL: | O12 O34 O38 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2013n37&r=ino |
| By: | Alexander Sokolov (Director of the international Foresight centre, vice director of the ISSEK HSE. Address: National research university “Higher school of economics”); Alexander Chulok (Head of the science and technology Foresight department, ISSEK HSE. Address: National research university “Higher school of economics”); Vladimir Mesropyan (Researcher at the science and technology Foresight department, ISSEK HSE. Address: National research university “Higher school of economics”) |
| Abstract: | Currently the framework conditions for science and technology and innovation (STI) policy have changed significantly in Russia: a system of technology forecasting has been established, which focuses on ensuring the future needs of the manufacturing sector of the national economy. This system was supposed to be the main part of the state strategy planning system which is currently being formed. Over the last decade dozens of science and technology forward-looking projects have been implemented, among which 3 cycles of long-term S&T Foresight stand out prominently. The Foresight was developed by the request of the Ministry of Education and Science of the Russian Federation. The development of the 3rd cycle of long-term Foresight includes both normative («market pull») and research («technology push») approaches. The project involved more than 2,000 experts and more than 200 organizations. Within the project a network of six sectoral Foresight centers was created on the basis of leading universities. The article describes the most important issues of future studies in Russia and presents the principles which formed the basis for the long-term science and technology (S&T) Foresight until 2030. The authors explore its position in the national technology Foresight system and the possibilities for the implementation of its results by the key stakeholders of the national innovation system and on the level of STI policy. Eventually Russian experience could be fairly interesting and useful for many other countries with similar socio-economic features and barriers |
| Keywords: | Foresight, Russia, research and development strategy, planning of science and technology development, Russian technology Foresight system, innovation policy. |
| JEL: | O31 O32 O33 O38 O21 O25 O43 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:19sti2013&r=ino |
| By: | Mella-Barral , Pierre; Habib, Michel A.; Hege, Ulrich |
| Abstract: | We analyze the implications of the decision to spawn or to retain a new product for the nature and evolution of the firm. In our model, a new product is spawned if the fit between the product and its parent firm organization is not adequate. We focus on the impact of the firm's history of spawning decisions on firm characteristics such as size, focus, profitability, and innovativeness, and analyze its role in shaping firm dynamics. In accordance with the empirical literature, our model predicts that older firms innovate less, spawn less, are more diversified and less profitable, and that firms with more valuable general or specialized resources innovate and spawn more. Echoing seemingly contradictory empirical findings, our model predicts that small, focused firms (large, diversified firms) innovate and spawn more, and are more profitable when sample heterogeneity is driven by the importance of organizational fit (the value of general resources) |
| Keywords: | spawning; spinoffs; spinouts; general and specialized resources; firm organization; organizational fit; firm size; focus; profitability; innovativeness; spawning dynamics |
| JEL: | L25 M13 O31 O33 |
| Date: | 2013–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:heccah:0984&r=ino |
| By: | Paige Ouimet; Rebecca Zarutskie |
| Abstract: | Young firms disproportionately employ young workers, controlling for firm size, industry, geography and time. The same positive correlation between young firms and young employees holds when we look just at new hires. On average, young employees in young firms earn higher wages than young employees in older firms. Further, young employees disproportionately join young firms with greater innovation potential and that exhibit higher growth, conditional on survival. These facts are consistent with the argument that the skills, risk tolerance, and career dynamics of young workers are contributing factors to their disproportionate share of employment in young firms. Finally, we show that an increase in the regional supply of young workers is positively related to the rate of new firm creation, especially in high tech industries, suggesting a causal link between the supply of young workers and new firm creation. |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2013-75&r=ino |