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on Innovation |
| By: | Biais, Bruno; Rochet, Jean-Charles; Woolley, Paul |
| Abstract: | We study the dynamics of an innovative industry when agents learn about its strength, i.e., the likelihood that it gets hit by negative shocks. Managers can exert risk-prevention export to mitigate the consequences of such shocks. As time goes by, if no shock occurs, con dence improves. This attracts managers to the innovative sector. But, when con dence becomes high, less managers exerting low risk-prevention export also enter. This accelerates the growth of the industry, while inducing a decline in risk-prevention. The longer the boom, the stronger the con dence, the larger the losses if a shock occurs. While the above dynamics arise in the fi rst best, with asymmetric information there is excessive entry of inefficient managers, earning informational rents at the expense of inneficient managers. This inflates the innovative sector and increases its vulnerability. |
| Date: | 2013–10 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:27747&r=ino |
| By: | Idota, Hiroki; Bunno, Teruyuki; Tsuji, Masatsugu |
| Abstract: | One of the common features of innovative SMEs identified from our previous surveys and in-depth interviews is innovation capability accumulated inside the firm, which enables them to create new products which meet customer needs and to cooperate with the other firms. The factors that SMEs achieve innovation are complex, and the causal relationships between factors have not been sufficiently clarified yet. This paper attempts to clarify the innovation process using covariance structure analysis, in particular focusing on the role ICT. Seven hypotheses are demonstrated by two models. The results obtained are as follows: (i) top management's participation and employee's motivation in the innovation process promote the effect of introducing ICT; (ii) this effect of ICT use raises innovation capability; in particular ability to connect external linkages; (iii) ICT use, innovation capability and external linkages enhance innovation activity; and (iv) effect of ICT use and innovation capability promote innovation directly. Thus this paper identifies that the effect of introducing ICT promotes innovation, and it is indispensable for innovation in Japanese SMEs. -- |
| Keywords: | ICT,Innovation,innovation capability,external linkages,covariance structure analysis |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse13:88463&r=ino |
| By: | NAGAOKA Sadao; NISHIMURA Yoichiro |
| Abstract: | This paper empirically investigates the effects of patent thickets. One unique feature of our study is to identify two sources of patent thickets: (1) complementarity as measured by the number of the patents to be used jointly with the focal patent in commercialization, and (2) ownership fragmentation as measured by the number of firms whose patents are cited by an examiner for the granting of the focal patent. There are three major findings. First, there is a significant difference between complex industry sectors and discrete ones regarding complementarity, while the difference regarding fragmentation at the patent level is small. Second, more complementarity is significantly associated with the importance of first mover advantage in research and development (R&D) and (less significantly) with that in commercialization, while fragmentation has little effect on them. Consistent with this finding, complementarity is associated with high patent value. Third, cross licensing motivation significantly accounts for patenting propensity while blocking motivation does not. Complementarity is significantly associated with more patenting for cross licensing, which facilitates both combining the inventions of different firms and preventing the risk of being held up. Furthermore, it does not invite patenting for blocking. Thus, we do not see significantly negative consequences of patent thickets on R&D, as seen by incumbents. At the same time, it is important to pay focus on policy to avoid granting patents to low quality inventions and to facilitate the mechanism of ex-ante contracting in complex industry sectors where patenting motivations are high. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:14001&r=ino |
| By: | Jain, Rekha |
| Abstract: | -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse13:88474&r=ino |
| By: | Kim, Kibae; Jung, Sungdo; Lee, Changjun; Hwang, Junseok |
| Abstract: | The role of ICT in the economic growth in Korea is a great attraction to the telecommunication society interested in the relationship among ICT, innovation policy and economic growth. However, prior research concentrates on investigating the effect of policy on innovation and economic growth, but misses the mechanism how a policy affects the technological system which interacts with public institutes, universities and private firms. In this paper, we analyze the structure of technology evolution in Korea with empirical data of patents to understand the prosperity of ICT sector in Korea. To do so, we define a technology network, or a set of nodes and links, representing technology fields and the relations between the fields, respectively, and measure the network topology and position per year between 1970 and 2010. Our results propose that the technology network maintains the scalefree topology, but the entities of the hub positions are gradually replaced emerging entities on the invariant network topology. Our findings are expected to motivate ICT innovation studies to understand the evolutionary mechanism of ICT industry in the systematic perspective of technology, and improve the policy of ICT innovation. -- |
| Keywords: | Industry Change,Information and Communication Technology,Network Analysis,Patent Analysis |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse13:88508&r=ino |
| By: | John Boyce (University of Calgary) |
| Abstract: | This paper documents that natural resources that are more abundant have higher production, lower prices, higher primary industry revenues, and higher R&D. These empirical facts are explained by a model of biased technological change in which relatively more abundant resources attract greater R&D because the return from obtaining a patent is higher in larger markets. Resource specific R&D may be targeted either towards upstream extraction technologies or towards downstream production technologies, and R&D is subject to diminishing knowledge spillovers and diminishing productivity of labor. The estimated elasticity of substitution between natural resources is greater than one, implying that natural resources are substitutes in production. Declining real resource prices in the face of rising resource production are explained by the increasing productivity of labor as knowledge stocks grow. |
| Date: | 2013–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:clg:wpaper:2013-04&r=ino |
| By: | Petukhova, Svetlana; Strepetova, Margarita |
| Abstract: | -- |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse13:88534&r=ino |
| By: | Cristiano Antonelli (University of Torino; BRICK); Francesco Quatraro (University of Nice Sophia Antipolis; GREDEG CNRS; BRICK) |
| Abstract: | The paper by Ji and Wang (2013) calls new attention on the analysis of the effects of the direction of technological change. The aim of this paper is to better articulate and test the theoretical arguments that the direction of technological changes has specific effects on the efficiency of the production process and to study the incentives and the processes that lead to its introduction. The decomposition of total factor productivity growth into the bias and the shift effects enables to articulate the hypothesis that the types of technological change whether more neutral or more biased reflect the variety of the innovation processes at work. The evidence of a large sample of European regions tests the hypothesis that regional innovations systems with a strong science base are better able to introduce neutral technological changes while regional innovation systems that rely more upon learning processes and tacit knowledge favor the introduction of directed technologies a form of meta-substitution that aims at exploiting the opportunities provided by the most intensive use of locally abundant factors. |
| Keywords: | Biased Technological Change, Mobility, European Regions, GMM System, Transition Probability |
| JEL: | O33 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2014-01&r=ino |
| By: | Fung, Ka Wai Terence; Lau, Chi Keung Marco |
| Abstract: | This paper builds up an endogenous growth model à la Aghion and Howitt (1992) and Boucekkine et al (2005). We assume that R&D firms use only investment good as input, instead of final good as hypothesized in the above two models. We show that investment price will be a negative function of aggregate quality index; and thus decline over time. In this model, subsidy on R&D has growth-enhancing effect. Moreover, this model predicts unambiguously that R&D is procyclical. |
| Keywords: | Endogeneous growth model, real business cycle, research and development |
| JEL: | E30 O3 O4 O40 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52567&r=ino |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Edmund Phelps, the 2006 Nobel Laureate in Economics, has written a thought-provoking and ambitious book: Mass Flourishing: How Grassroots Innovation Created Jobs, Challenge, and Change (Princeton University Press, 2013). The book is laudable for its emphasis on innovation, for its discussion of what constitutes a good life, and Phelps’ realization that true life satisfaction cannot be achieved through a mindless quest for money and the goods it can buy. But the overly glossy characterization of the period before WW II as opposed to the post-1980 period, the niggardly evaluation of the European economies, and the lack of empirical indicators actually showing that the rate of innovation has dropped are significant weaknesses. These objections are especially regrettable given the importance of the book´s main message: Creative entrepreneurship is not merely the key to economic growth, but to life satisfaction as well. |
| Keywords: | Innovation; Entrepreneurship; Modernism; Postmodernism; Values |
| JEL: | L26 M14 P47 Z13 |
| Date: | 2014–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0999&r=ino |
| By: | Fung, Ka Wai Terence; Lau, Chi Keung Marco; Chan, Kwok Ho |
| Abstract: | The New Keynesian Real Business Cycle model with staggered price adjustment is augmented with a R&D producing sector. Two sources of economic shocks are considered, namely random paritcipation (perturbances to value of alternative investment opportunities in another sector) and financial intermediation (shocks to the cost of raising capital in the financial intermediation market). We find that, when comparing to the baseline model, both models can explain pro-cyclical R&D spending. Additionally, the investment oversensitivity problem is corrected. However, only the financial intermediation model is consistent with the observed finding that volatility of R&D is larger than that of investment and output. |
| Keywords: | Endogenous growth model, real business cycle, asymmetric information, research and development |
| JEL: | E30 O3 O30 O4 O40 O42 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:52571&r=ino |
| By: | Manfred Spiesberger (ZSI); Marion Mienert (DLR); Jörn Sonnenburg (DLR); Karel Haegeman (European Commission – JRC-IPTS); Oguz Ozkan (TUBITAK); Alexander Sokolov (HSE); Natalya Veselitskaya (HSE); Gorazd Weiss (ZSI); Andreas Kahle (DLR); Klaus Schuch (ZSI); Ilter Haliloglu (TUBITAK); Irina Kuklina (ICISTE); Elisabetta Marinelli (European Commission – JRC-IPTS); Maria Balashova (ICISTE) |
| Abstract: | This Working Document outlines development perspectives for cooperation in research, technology and innovation (RTI) between the EU, its Member States (MS), countries associated to the EU’s FP7 (AC), and Russia. The Working Document has been prepared in the framework of the ERA.Net RUS project and is based on a comprehensive foresight exercise implemented over the years 2010-2013 and on analysis of ongoing RTI cooperation. In-depth discussions among the ERA.Net RUS and ERA.Net RUS Plus consortiums and Funding Parties, and in the frame of expert workshops with policy makers and analysts provided essential input. Furthermore, results of other related projects (such as BILAT-RUS, BILAT-RUS Advanced, ACCESSRU, etc.) have been studied. The paper proposes a vision on enhancing the cooperation between EU MS/AC and Russia overall, as well as a specific follow-up vision for the ERA.Net RUS and ERA.Net RUS Plus projects. |
| Keywords: | European research and innovation policy, Innovation Union, ERAWATCH, European Research Area, Policy Mixes, Transnational and International Cooperation, NETWATCH, ERA Nets, Foresight, Joint programming of research, Researchers, Universities |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc85137&r=ino |
| By: | Xavier Pavie (PhD Program - ESSEC Business School); Daphné Carthy (ISIS - Institute for Strategic Innovation & Services - ESSEC Business School) |
| Abstract: | Over the past few years, innovation has been developing a new characteristic, it has become inherently suspect. This is partly due to the series of recent market events which have contributed to the ever-increasing attention directed at the notion of responsible innovation. The race to market for technological and non-technological innovations is ever increasing in pace and enduring pressure from an ever more globalised market. At the same time, the newly released products and services stand under constant scrutiny by the hordes of social media users, capable of destroying a company's global reputation in a matter of minutes. It is therefore now in an organisation's best interest to be responsible. Naturally, an organisation's very survival depends on its ability to create value and be profitable, in other words, innovation is essential to the modern organisation's growth and development. However, innovation and responsibility have traditionally been considered to hamper one another. How can a firm achieve the right balance to keep innovating on products, services and processes while implementing responsibility all along its activities? Research suggests that this very balance could become an invaluable source of competitive advantage. Design thinking, in analogy with industrial design, is a creative discipline which is deployed within organisations' innovation processes. As such, design thinking is a very useful tool in developing responsible innovation, since it combines scientific rigour and technique with an understanding of human needs, while also incorporating an organisation's own economic imperatives. This modern approach therefore aims to achieve a responsible development for both the organisation and its innovations. This paper will begin by determining exactly what is meant by responsible innovation. It will then describe why design thinking is an effective method for integrating responsible innovation and present the results of a study which aimed to develop a way of integrating responsibility into the innovation process, using design thinking. |
| Keywords: | Design Thinking ; Financial Sector ; Responsible Innovation |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00921428&r=ino |
| By: | Milena Klasing Chen (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | Low cost products and services are nowadays present in most sectors. However a clear definition of what makes a low cost product seems to be missing. This article proposes a state of the art on low cost products (through the study of a sample of 42 products recognized as "low cost") and aims to develop a framework to classify them through their design principles, to identify their main characteristics, how they emerge, how they are managed, as well as the impact they have on markets. One of the main conclusions of this work is that two main low cost models should be distinguished. They are labeled i) 'low cost adaptation', where the classical products are striped naked of their non-essential functions to reduce costs, following a functionalist design approach; and ii) 'smart low cost design', that develops a less costly new product from scratch answering to consumer needs, and that can be linked to innovative design theories. These two models should not be mixed up with cost efficiencies models, which are also aimed at reducing costs, but are not a company's main strategy. The studied products show that 'smart low cost design' products are more innovative than 'low cost adaptation' products. The second model is richer and uses elements of the first one. Furthermore, similar effects on the market are observed for both low cost product models, like the creation of demand and the overall price reduction, but the second model seems to have a stronger impact. This work illustrates that a low cost approach can be used as a design tool. |
| Keywords: | low cost; innovation |
| Date: | 2013–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00921882&r=ino |
| By: | Milena Klasing Chen (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | Low cost products and services are nowadays present in most sectors. However a clear definition of what makes a low cost product seems to be missing. This article proposes a state of the art on low cost products (through the study of a sample of 50 products recognized as "low cost") and aims to develop a framework to classify them through their design principles, to identify their main characteristics, how they emerge, how they are managed, as well as the impact they have on markets. One of the main conclusions of this work is that two main low cost models should be distinguished. They are labeled i) 'low cost adaptation', where the classical products are striped naked of their non-essential functions to reduce costs, following a functionalist design approach; and ii) 'smart low cost design', that develops a less costly new product from scratch answering to consumer needs, and that can be linked to innovative design theories. These two models should not be mixed up with cost efficiencies models, which are also aimed at reducing costs, but are not a company's main strategy. The studied products show that 'smart low cost design' products are more innovative than 'low cost adaptation' products. The second model is richer and uses elements of the first one. Furthermore, similar effects on the market are observed for both low cost product models, like the creation of demand and the overall price reduction, but the second model seems to have a stronger impact. This work illustrates that a low cost approach can be used as a design tool. |
| Keywords: | " low cost "; innovation; design |
| Date: | 2013–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00921886&r=ino |
| By: | Xavier Pavie (PhD Program - ESSEC Business School); Eva Hsu (The Chinese University of Hong Kong - The Chinese University of Hong Kong); Hanns Justus Tillman Rödle (School of Business, Economics and Law - University of Gothenburg - (SWEDEN)); Raquel Orozco Tapia (Universidad Argentina de la empresa of Buenos Aires - Universidad Argentina de la empresa of Buenos Aires) |
| Abstract: | This research deals with the process of business model innovation in services. Definitions and explanations of both general innovation terminologies as well as specific service related once will be given and discussed. Moreover, reasons and implementation strategies will be identified and discussed. Last but not least a case will be elaborated how innovative companies in products can become innovative in services. |
| Keywords: | Business Model ; Business Model Canvas ; Business Model Innovation ; Change Management ; Incremental Innovation, Innovation Management, Innovation Strategy ; Radical Innovation ; Service Innovation ; Service Management |
| Date: | 2013–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-00921420&r=ino |