|
on Innovation |
| By: | Lerner, Josh; Tirole, Jean |
| Abstract: | A major policy issue in standard setting is that patents that are ex-ante not that important may, by being included into the standard, become standard-essential patents (SEPs). In an attempt to curb the monopoly power that they create, most standard-setting organizations require the owners of patents covered by the standard to make a loose commitment to grant licenses on reasonable terms. Such commitments unsurprisingly are conducive to intense litigation activity. This paper builds a framework for the analysis of SEPs, identifies several types of inefficiencies attached to the lack of price commitment, shows how structured price commitments restore competition, and analyzes whether price commitments are likely to emerge in the marketplace. |
| Keywords: | Standards, licensing commitments, standard-essential patents, royalty stacking, FRAND, hold ups and reverse hold ups. |
| JEL: | D43 L24 L41 O34 |
| Date: | 2013–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:27713&r=ino |
| By: | Schwiebacher, Franz |
| Abstract: | Thickets of partially overlapping patent rights raise costs to secure IPR for innovation. Fragmented IP ownership raises coordination costs to resolve mutual blockades. Inadvertent patent infringement poses the risk of fruits from investments to be exploited. A gap in economic commitment levels may be exploited if capital-intensive innovators have more invested application-specifically than inadvertently infringed IPR owners. I study whether fragmentation or heterogeneous capital-intensities among owners of overlapping patents affect propensities to invest in innovation. I find that firms with small patent portfolios are less likely to invest in innovation if IPR is fragmented. Firms with large patent portfolios are less likely to invest in innovation if cited patent owners have smaller stocks of fixed capital. This suggests that effects of patent thickets on innovation are not evenly spread among innovating firms. -- |
| Keywords: | Investment in innovation,Complementary assets,IP hazards |
| JEL: | O31 O34 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13096&r=ino |
| By: | Peters, Bettina; Roberts, Mark J.; Vuong, Van Anh; Fryges, Helmut |
| Abstract: | Using firm-level data from the German manufacturing sector, we estimate a dynamic, structural model of the firm's decision to invest in R&D and quantify the cost and longrun benefit of this investment. The model incorporates and quantifies linkages between the firm's R&D investment, product and process innovations, and future productivity and profits. The dynamic model provides a natural measure of the long-run payoff to R&D as the difference in expected firm value generated by the R&D investment. For the median productivity firm, investment in R&D raises firm value by 3.0 percent in a group of hightech industries but only 0.2 percent in low-tech industries. Simulations of the model show that cost subsidies for R&D can significantly affect R&D investment rates and productivity changes in the high-tech industries. -- |
| Keywords: | R&D demand,Innovation,Productivity,Dynamic structural model |
| JEL: | L60 O31 O32 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13089&r=ino |
| By: | Prud'homme, Dan |
| Abstract: | Although China became the world's leading patent filer in 2011, patent quality is still a serious issue in the country. This article first provides a statistical snapshot of this situation and then discusses how China's network of patent-related policies and practices in certain cases actually contributes to this problem and hampers innovation. The article also looks at the negative consequences of poor patent quality, paying special attention to the impacts on foreign companies in China. |
| Keywords: | patent quality; patent quality metrics; China's patent policy; China's innovation policy; indigenous intellectual property rights |
| JEL: | K11 O25 O31 O34 O38 |
| Date: | 2013–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51714&r=ino |
| By: | Tavassoli, Sam (CSIR, Blekinge Inst of Technology) |
| Abstract: | This paper analyzes how the influence of firm-level innovation determinants varies over the industry life cycle. Two sets of determinants are distinguished: (1) determinants of a firm’s innovation propensity, i.e. the likelihood of being innovative and (2) determinants of its innovation intensity, i.e. innovation sales. By combining the literature emphasizing firms’ internal resources (micro level) with the research strand on the role of the industry context (meso-level), the paper develops hypotheses about the relative importance of firm-level innovation determinants over the industry life cycle. Estimation of a firm-level model of innovation in Sweden, while acknowledging the stage of the life cycle of the industry a firms belongs to, shows that the importance of the determinants of innovation propensity and intensity are not equal over the stages of an industry’s life cycle. |
| Keywords: | Determinants of innovation; innovation intensity; innovation propensity; Industry Life Cycle (ILC); Community Innovation Survey (CIS4) |
| Date: | 2013–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bthcsi:2012-011&r=ino |
| By: | Heger, Diana; Hussinger, Katrin |
| Abstract: | Classical patent literature assumes that patents grant well-defined legal rights to exclude others from practicing an invention. In this scenario, start-up companies benefit from the exclusive right to commercialize patent-protected inventions and the certification effect of patents which signals the ventures' 'quality' to investors. If the decision about patent applications is pending at the patent office patent rights become probabilistic and both effects may not realize. We show that start-up companies are reluctant to launch new products if patents are pending. Further, pending patents attract risk-seeking investors (venture capitalists), while more cautious investors (banks) do not react on pending patents. -- |
| Keywords: | start-ups,patents,probabilistic patents,pending patents,access to finance,new product launch |
| JEL: | L26 O31 O34 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13095&r=ino |
| By: | Thomas Grebel (Economics Deprtment, TU Ilmenau); Lionel Nesta (Ofce) |
| Abstract: | We investigate the conditions under which R&D investment by rival firms may be negatively or positively correlated. Using a two-stage game the influence of spillovers and product substitution is investigated. It is shown that under Cournot competition, the sign of the R&D reaction function depends on four types of environments in terms of the level of product substitution and of spillovers. We then test the prediction of the model on the world’s largest manufacturing corporations. We assume that firms make oblivious R&D investments based on the R&D decision of the average rival company. We then develop a dynamic panel data model that accounts for the endogeneity of the decision of the mean rival firms. Results corroborate the validity of the theoretical model. |
| Keywords: | Process R&D, Spillovers, Product substitution, Reaction function, GMM |
| JEL: | D43 L13 O31 |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:fce:doctra:1322&r=ino |
| By: | Schubert , Torben (Fraunhofer Institute for Systems and Innovation Research (ISI) And CIRCLE, Lund University, Sweden); Andersson , Martin (CIRCLE, Lund University, Sweden and Blekinge Institute of Technology) |
| Abstract: | There is consistent evidence in the literature that average employee age is negatively related to firm-level innovativeness. This observation has been explained by older employees working with outdated technological knowledge and being characterized by reduced cognitive flexibility. We argue that firms can mitigate this effect through employee turnover. In particular turnover of R&D workers is deemed a vehicle for transfer of external knowledge to the firm, which can compensate for lower cognitive flexibility and up-to-date knowledge among older workers. We use a matched employer-employee dataset based on three consecutive CIS surveys for Sweden to test our predictions. Our results suggest a) that overall employee age impacts negatively on product innovation activities (both in terms of propensity and success), b) that the effect of em-ployee staying rate (measured by the share of employees that remain in the firm from one year to the next) on innovation follows an inverted U-shape implying an ‘optimal’ level of employment turnover, and c) that this ‘optimal’ value is lower for firms with older employees. The latter suggests that firms with older employees can at least partially compensate an aged workforce by increased employment turnover. |
| Keywords: | ageing; employee age; innovation; firm performance; R&D; human capita |
| JEL: | D22 J21 J24 L25 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_029&r=ino |
| By: | Riccardo Crescenzi; Max Nathan; Andrés Rodríguez-Pose |
| Abstract: | This paper investigates how physical, organisational, institutional, cognitive, social, and ethnic proximities between inventors shape their collaboration decisions. Using a new panel of UK inventors and a novel identification strategy, this paper systematically explores the net effects of all these ‘proximities’ on co-patenting. The regression analysis allows us to identify the full effects of each proximity, both on choice of collaborator and on the underlying decision to collaborate. The results show that physical proximity is an important influence on collaboration, but is mediated by organisational and ethnic factors. Over time, physical proximity increases in salience. For multiple inventors, geographic proximity is, however, much less important than organisational, social, and ethnic links. For inventors as a whole, proximities are fundamentally complementary, while for multiple inventors they are substitutes. |
| Keywords: | innovation, patents, proximities, regions, knowledge spillovers, collaboration, ethnicity, |
| JEL: | O31 O33 R11 R23 |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1324&r=ino |
| By: | Chaminade , Cristina (CIRCLE, Lund University); Plechero , Monica (IRPPS-CNR, Italy and CIRCLE, Lund University, Sweden) |
| Abstract: | Abstract Access to global innovation networks (GINs) has been unequal across the regions of the world. While certain regions are considered knowledge hubs in GINs, others still remain marginalized; this points to the role of regional innovation systems in the emergence and development of GINs. Using firm-level data collected through a survey and case studies in 2009–2010, this article systematically compares the patterns of global networks in the ICT industry in a selection of European, Chinese and Indian regions. The results show that GINs are more common in regions which are not organizationally and institutionally thick, suggesting that GINs may be a compensatory mechanism for weaknesses in the regional innovation system. |
| Keywords: | globalization; innovation networks; regions; Europe; India; China |
| JEL: | O30 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_032&r=ino |
| By: | Chaminade , Cristina (CIRCLE, Lund University); Intarakumnerd, Patarapong (College of Innovation, Thammasat University Thailand); Sapprasert , Koson (TIK and CAS, Norway) |
| Abstract: | The paper contributes to research on innovation systems; in particular, the current debate on rationales for innovation policy by providing a framework to identify systemic problems in a given system of innovation and test the framework empirically. The data was drawn from the Thai Community Innovation Survey in the period after which a major change in the country’s innovation system policy had been initiated. By hierarchical factor analysis, systemic problems suggested by prior studies are grouped into four components: institution, network, science and technology infrastructure and other support services. Our framework and methodology may also be applied in the analyses of systemic problems in other countries, especially for the purpose to investigate a mismatch between policies and problems. |
| Keywords: | Systemic problems; Innovation Policy; National Innovation System; Hierarchical Factor Analysis; Thailand |
| JEL: | O30 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_031&r=ino |
| By: | Fryges, Helmut; Müller, Bettina; Niefert, Michaela |
| Abstract: | One way through which knowledge and technology transfer can take place is through the foundation of new firms by former employees of incumbent private firms. In this paper, we examine whether knowledge transferred from the incumbent causally affect employment growth and postentry innovation activities of the new firm. We focus on start-ups for which a new idea (a new product, technology, production process or management concept), which the founder developed during her work as an employee, was essential for setting up the new business. These firms are denoted corporate spinoffs. Using data from German start-ups founded in the period from 2005 to 2008, we apply nearest neighbour propensity score matching. We find that corporate spinoffs outperform other start-ups founded by former employees of incumbent private firms that are not based on an essential idea in terms of post-entry innovation activities. However, we cannot show that corporate spinoffs benefit from the transferred idea in terms of employment growth. We conclude that a transferred idea is primarily an input factor and a stimulus for subsequent post-entry innovation activities of corporate spinoffs. -- |
| Keywords: | knowledge and technology transfer,corporate spinoffs,propensity score matching,KfW/ZEW Start-Up Panel |
| JEL: | L26 L25 O31 C21 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:13093&r=ino |
| By: | Amarante, M; Ghossoub, M; Phelps, E |
| Date: | 2013–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:imp:wpaper:12241&r=ino |
| By: | Lundvall , Bengt-Åke (CBS, Aalborg University, Denmark); Vang , Jan (Copenhagen Institute of Technology, Aalborg University, Denmark); Joseph , KJ (Centre for Development Studies (CDS), India); Chaminade , Cristina (CIRCLE, Lund University) |
| Abstract: | This paper links innovation system analysis to economic development. Both fields are young and interdisciplinary. In the recent years, there has been a renewed interest on applying the innovation system concept in developing countries. In the first part of this paper we try to specify the conditions under which innovation systems can be used in a developing country context; and we do so in a dialogue with critiques developed within the community of evolutionary and development scholars. In the second part of the paper we give a brief assessment of how development economics has evolved and we draw some lessons for a research strategy. We will argue that the crisis of the first generation of development economics that was represented by scholars such as Nurkse, Myrdal, Hirschman, Singer and Sen has left a void in development economics that cannot be filled neither by mainstream neoclassical economics nor by ‘new growth theory’. We see the innovation system approach as a serious candidate to fill this void |
| Keywords: | Innovation systems; development economics; developing countries |
| JEL: | O30 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2013_033&r=ino |
| By: | Idrissa Sibailly (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, LEI - Laboratoire d'Economie Industrielle - Centre de Recherche en Économie et STatistique (CREST)) |
| Abstract: | Clean technologies implemented by polluters subject to environmental regulation are often developed and patented by specialized technology suppliers. This paper investigates the impact of the environmental regulation stringency on the diffusion of patented clean technologies when the polluters (i.e. the potential licensees) compete in imperfectly competitive markets. We show that the polluters' willingness to pay for clean technology and the diffusion of such technology (i.e. the extent to which it is privately disseminated through licensing) depend not only on the regulatory stringency and the technological efficiency, but also on the polluters' competitive environments. More stringent regulations (e.g., higher carbon taxes) or increased technological efficiency (e.g., supported by more R&D subsidies) do not necessarily induce more diffusion of efficient clean technologies. Indeed, as the returns to implementing a clean technology increase, so do the technology supplier's incentives to sell fewer licenses so as to extract more rent from each of its licensees. |
| Keywords: | Clean technology, Environmental Regulation, Oligopoly, Licensing |
| Date: | 2013–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00911453&r=ino |
| By: | Claire Nauwelaers; Karen Maguire; Giulia Ajmone Marsan |
| Abstract: | Hedmark County (Norway) and Dalarna County (Sweden) are both rural, with the border being remote from regional centres. The total population of less than half a million inhabitants spans across almost 58 800 km², with an economic output of USD 22 billion. Efforts to support collaboration at the border focus on the sector of tourism that both share, and which would be facilitated by the construction of one airport to serve both sides. As most science and technology-related assets are located far from the border, the region does not seem to have the relevant conditions for a broad cross-border regional innovation policy since urban centres are perhaps better served by looking towards other locations rather than this border. On the border, efforts for innovation in other forms, such as in marketing and organisational methods in tourism, are more relevant. This case study is part of the project Regions and Innovation: Collaborating Across Borders . A summary of this working paper appears in a report of the same name. |
| JEL: | L52 L53 O14 O18 O38 R11 R58 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2013/18-en&r=ino |
| By: | Grimaud, André; Neubauer, Mauricio; Rougé, Luc |
| Abstract: | We study an economy in which a final good is produced by two sectors. One uses a non-renewable and polluting resource, the other a renewable and clean resource. A specific type of research is associated to each sector. The public authorities levy a carbon tax and simultaneously subsidize both research sectors. We study the impact of such a policy scheme on the rate of resource extraction and emissions. The subsidy to research in the clean sector goes in the opposite direction of the effects of the carbon tax. If the tax creates a green paradox, the subsidy moderates it; if the tax slows down resource extraction, then the subsidy generates a green paradox |
| Keywords: | carbon tax, directed technical change, green paradox, R&D policy |
| JEL: | O32 O41 Q20 Q32 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:27734&r=ino |
| By: | Zagorsek, Branislav |
| Abstract: | The purpose of this paper is to present possible ways how could a company maintain or even gain its competitive advantage in high dynamic business environment from a per-spective of business models. After a short introduction on evolution of innovation, this paper is divided in three parts. In first part it discusses the business model itself, how to design a business model and how to deal with it. Second part discusses business model innovations. When and how to innovate or reinvent your business model. It also dis-cusses the role of openness of a business model. The third part of this paper deals with a comparison between strategy and business model. What is the logic and relation be-tween strategy and business model. |
| Keywords: | business model , innovation, alternation, strategy, business experiment |
| JEL: | M10 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:51733&r=ino |
| By: | Huang Vogel, Eleonore (CSIR, Blekinge Inst of Technology) |
| Abstract: | Academic Entrepreneurship has drawn large research interest over the last decade. However, few research focus on the processes behind entrepreneurial behavior in favor of more “linear” perspectives such as the individuals´ transformation from an academic to an entrepreneur measured by e.g. number of start-ups. This paper focuses on entrepreneurial opportunities, its nature and source, and speaks for the usefulness of a social network perspective on academic entrepreneurship. Inter-disciplinary literature is reviewed for research on the significance of social network to entrepreneurial behavior of academics, or more precisely; social networks significance to opportunity recognition, evaluation and exploitation among entrepreneurial academics. Academic entrepreneurial actions are viewed as non-isolated, non-deterministic, and dynamic co-creations through social networks. Finally concluding remarks, hypotheses and research ideas are presented in which the commercialization process may not be seen as a linear but dynamic process, the opportunity may be created or originate in new knowledge and in turn may be recognized by any member within the academic´s social network and that encouragement and various resources necessary for entrepreneurial action may be added by yet others within the network. |
| Keywords: | academic entrepreneurship; networks; opportunity recognition; innovation; co-creation |
| JEL: | I23 I24 L26 O31 |
| Date: | 2013–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bthcsi:2012-009&r=ino |
| By: | Paula Stephan |
| Abstract: | I examine and document how the Endless Frontier changed the research landscape at universities and how universities responded to the initiative. I show that the agencies it established and funded initially recruited research proposals from faculty and applications from students for fellowships and scholarships. By the 1960s the tables had begun to turn and universities had begun to push for more resources from the federal government for research, support for faculty salary and research assistants and higher indirect costs. The process transformed the relationship between universities and federal funders; it also transformed the relationship between universities and faculty. The university research system that has grown and evolved faces a number of challenges that threaten the health of universities and the research enterprise and have implications for discovery and innovation. Five are discussed in the closing section. They are (1) a proclivity on the part of faculty and funding agencies to be risk averse; (2) the tendency to produce more PhDs than the market for research positions demands; (3) a heavy concentration of research in the biomedical sciences; (4) a continued expansion on the part of universities that may place universities at increased financial risk and (5) a flat or declining amount of federal funds for research. |
| JEL: | I23 I28 O31 O32 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19687&r=ino |
| By: | Carbonara, Nunzia (CSIR, Blekinge Inst of Technology); Tavassoli, Sam (CSIR, Blekinge Inst of Technology) |
| Abstract: | This paper seeks to contribute to the ongoing debate concerning the role of heterogeneity for the innovative capability of industrial districts. With this aim, using a knowledge-based approach, the paper focuses on different sources of industrial district knowledge heterogeneity and studies how the different level of heterogeneity affects the innovative capability of industrial districts. Four theoretical hypotheses concerning the effects of knowledge and knowledge heterogeneity on the Industrial District innovativeness are formulated. To test the hypotheses, an econometric analysis on 32 Italian District Provinces is applied. Empirical results show that knowledge heterogeneity matter for increasing the innovative capability of industrial districts. |
| Keywords: | Industrial district; innovative capability; knowledge heterogeneity |
| JEL: | F14 O32 R12 |
| Date: | 2013–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:bthcsi:2012-010&r=ino |
| By: | Claire Nauwelaers; Karen Maguire; Giulia Ajmone Marsan |
| Abstract: | Estonia and Finland have centuries of collaboration, mainly between the capital areas of Tallinn and Helsinki that currently account for 2 million inhabitants and USD 76 billion in economic output. The entry of Estonia into the European Union and, since the mid-2000s, a two-hour ferry trip, have both facilitated flows of people and merchandise across the Gulf of Finland. The different levels of development between Helsinki and Tallinn result in many asymmetric flows (workers to Helsinki, tourists to Tallinn). Beyond infrastructure and labour market issues, there are interesting opportunities for joint innovation policy efforts given their shared strengths such as in ICT, a dynamic start-up environment and technologically sophisticated public services. Cross-border collaboration can help build an “entrepreneurial knowledge region” brand. This case study is part of the project Regions and Innovation: Collaborating Across Borders. A summary of this working paper appears in a report of the same name. |
| JEL: | L52 L53 O14 O18 O38 R11 R58 |
| Date: | 2013–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaab:2013/19-en&r=ino |
| By: | Yuezhou Cai; Aoife Hanley |
| Abstract: | The standard indicators used to compare cross-country innovation are in the Global Competitiveness Report (GCR). But there are problems with aggregation and response bias with these largely self-reported measures (Hollanders and van Cruysen, 2008). We propose a theory-based metric using Data Envelopment Analysis which corrects for sample bias and considers Returns to Scale. The derived ranking compares well to components of the GCR. Moreover, in second-stage estimations, our corrected efficiency score correlates well with standard Growth Theory indicators |
| Keywords: | Data Envelopment Analysis, Efficiency Indicators, Global Competitiveness Report |
| JEL: | C61 C14 O38 |
| Date: | 2013–11 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1882&r=ino |
| By: | Daron Acemoglu; Gino Gancia; Fabrizio Zilibotti |
| Abstract: | We study the short- and long-run implications of offshoring on innovation, technology adoption, wage and income inequality in a Ricardian model with directed technical change. A unique final good is produced by combining a skilled and an unskilled product, each produced from a continuum of intermediates (tasks). Some of these tasks can be transferred from a skill-abundant West to a skill-scarce East. Profit maximization determines both the extent of offshoring and technological progress. offshoring induces technical change with an ambiguous factor bias. When the initial level of offshoring is low, an increase in offshoring opportunities triggers a transition with falling real wages for unskilled workers in the West, skill-biased technical change and rising skill premia worldwide. As the extent of offshoring becomes sufficiently large, further increases in offshoring induce technical change biased in favor of the unskilled because offshoring closes the gap between unskilled wages in the West and the East, and this limits the power of the price effect fueling skill-biased technical change. Transitional dynamics reveal that offshoring and technical change are substitutes in the short run but complements in the long run. Finally, though offshoring improves the welfare of workers in the East, it may benefit or harm unskilled workers in the West depending on elasticities and the equilibrium growth rate. |
| Keywords: | directed technical change, offshoring, skill premium, growth and productivity |
| JEL: | F43 O31 O33 |
| Date: | 2013–04 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:735&r=ino |