nep-ino New Economics Papers
on Innovation
Issue of 2014‒01‒24
thirteen papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. The evolution of networks of innovators within and across borders: Evidence from patent data By Andrea Morescalchi; Fabio Pammolli; Orion Penner; Alexander M. Petersen; Massimo Riccaboni
  2. Young innovative firms and R&D strategies: is the Spanish case different? By Segarra Blasco, Agustí, 1958-; Gombau, Verònica
  3. Collective Bargaining and Innovation in Germany: Cooperative Industrial Relations? By Addison, John T.; Teixeira, Paulino; Evers, Katalin; Bellmann, Lutz
  4. Intellectual property box regimes: Effective tax rates and tax policy considerations By Evers, Lisa; Miller, Helen; Spengel, Christoph
  5. The Effect of Credit Guarantees on R&D Investment of SMEs in Korea By Heshmati, Almas
  6. Innovative Activity of Small Tourist Enterprises – Cooperation with Local Institutional Partners By Najda-Janoszka, Marta
  7. Innovation Markets, Future Markets, or Potential Competition: How Should Competition Authorities Account for Innovation Competition in Merger Reviews? By Benjamin Kern
  8. Stepping out of the zone of territorial protection enables open innovation collaboration. By Susanne Ollila; Anna Yström; Marine Agogué
  9. Technological Change, Financial Innovation, and Diffusion in Banking By W. Scott Frame; Lawrence J. White
  10. Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach By T. Buchmann; D. Hain; Muhamed Kudic; M. Müller
  11. The Impacts of Feed-in Tariffs on Innovation: Empirical Evidence from Germany By Christoph Böhringer; Alexander Cuntz; Dietmar Harhoff; Emmanuel A. Otoo
  12. Skill Variety, Innovation and New Business Formation By Hessels, Jolanda; Brixy, Udo; Naudé, Wim; Gries, Thomas
  13. Promoting Skills for Innovation in Higher Education: A Literature Review on the Effectiveness of Problem-based Learning and of Teaching Behaviours By Sabine Hoidn; Kiira Kärkkäinen

  1. By: Andrea Morescalchi (IMT Lucca Institute for Advanced Studies); Fabio Pammolli (IMT Lucca Institute for Advanced Studies); Orion Penner (IMT Lucca Institute for Advanced Studies); Alexander M. Petersen (IMT Lucca Institute for Advanced Studies); Massimo Riccaboni (IMT Lucca Institute for Advanced Studies)
    Abstract: Recent studies on the geography of knowledge networks have documented a negative impact of physical distance and institutional borders upon research and development (R&D) collaborations. Though it is widely recognized that geographic constraints and national borders impede the diffusion of knowledge, less attention has been devoted to the temporal evolution of these constraints. In this study we use data on patents filed with the European Patent Office (EPO) for OECD countries to analyze the impact of physical distance and country borders on inter-regional links in four different networks over the period 1988-2009: (1) co-inventorship, (2) patent citations, (3) inventor mobility and (4) the location of R&D laboratories. We find the constraint imposed by country borders and distance decreased until mid-1990s then started to grow, particularly for distance. We further investigate the role of large innovation "hubs" as attractors of new collaboration opportunities and the impact of region size and locality on the evolution of cross-border patenting activities. The intensity of European cross-country inventor collaborations increased at a higher pace than their non-European counterparts until 2004, with no significant relative progress thereafter. Moreover, when analyzing networks of geographical mobility, multinational R&D activities and patent citations we cannot detect any substantial progress in European research integration above and beyond the common global trend.
    Keywords: Geography of knowledge, Networks of Innovators, European integration, Spatial proximity, Cross-border collaboration, Gravity model
    JEL: O31 O38 R12 R23 D89
    Date: 2014–01
    URL: http://d.repec.org/n?u=RePEc:ial:wpaper:1/2014&r=ino
  2. By: Segarra Blasco, Agustí, 1958-; Gombau, Verònica
    Abstract: This paper analyzes the profile of Spanish young innovative companies (YICs) and the determinants of innovation and imitation strategies. The results for an extensive sample of 2,221 Spanish firms studied during the period 2004–2010 show that YICs are found in all sectors, although they are more concentrated in high-tech sectors and, in particular, in knowledge-intensive services (KIS). Three of every four YICs are involved in KIS. Our results highlight that financial and knowledge barriers have much impact on the capacity of young, small firms to innovate and to become YICs, whereas market barriers are not obstacles to becoming a YIC. Public funding, in particular from the European Union, makes it easier for a new firm to become a YIC. In addition, YICs are more likely to innovate than mature firms, although they are more susceptible to sectoral and territorial factors. YICs make more dynamic use of innovation and imitation strategies when they operate in high-tech industries and are based in science parks located close to universities. Keywords: innovation strategies, public innovation policies, barriers to innovation, multinomial probit model. JEL Codes: D01, D22 , L60, L80, O31
    Keywords: Microeconomia, Conducta organitzacional, Manufactures, Sector terciari, Innovacions tecnològiques -- Política governamental, 33 - Economia,
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:urv:wpaper:2072/222200&r=ino
  3. By: Addison, John T. (University of South Carolina); Teixeira, Paulino (University of Coimbra); Evers, Katalin (Institute for Employment Research (IAB), Nuremberg); Bellmann, Lutz (Institute for Employment Research (IAB), Nuremberg)
    Abstract: The effect of collective bargaining on innovation has long been in dispute. At the level of theory, the hold-up problem has been used to justify positive as well as negative effects of unionism. At the empirical level, although some would consider the North American evidence as cut and dried, this is not the case for other countries. In Europe there is some suggestion that certain industrial relations systems, either alone or in combination with the regulatory framework in which they are embedded, may tip the balance in favor of a beneficial union effect. In the present paper, we assemble nationally representative data for Germany – for many observers the exemplar of a cooperative industrial relations regime – to investigate the impact of collective bargaining on (several measures of) process innovation and product innovation. Our cross section and longitudinal analysis fails to indicate that unionism retards innovation. Indeed, in conjunction with workplace representation, collective bargaining at sectoral level might even be pro innovative.
    Keywords: Germany, collective bargaining, innovation
    JEL: J51 J53 O31
    Date: 2013–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7871&r=ino
  4. 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 effective average 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,tax incentive,patent box,innovation box,preferential tax rate
    JEL: H25 H32 H87 K34 O38
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:zbw:zewdip:13070r&r=ino
  5. By: Heshmati, Almas (Sogang University)
    Abstract: Korean government has invested significant amount of resources through credit guarantee funds to promote SMEs survival, performance and R&D investment. This study attempts to identify determinants of provision of credit guarantees and estimate their effects on firms R&D expenditures. The relationship between duration of credit and firm's survival and performance is also investigated. Account is made for heterogeneity by various characteristics of firms when looking at credit guarantee and in-house R&D investment relationships. This study results in identification of factors that enhances efficiency of funds and their effects on firms' R&D investment behavior. It enables feedback effects on the public funds selection of firms guaranteed. A number of policy measures are proposed to promote a better balance between public and private investments to reduce the risk of business failure.
    Keywords: Credit Guarantee, SMEs, public funds, R&D investment, firm performance, firm survival, Death Valley
    JEL: C13 D92 G28 L25 O32 O38
    Date: 2013–12
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7851&r=ino
  6. By: Najda-Janoszka, Marta
    Abstract: According to the open innovation model an effective strategy for increasing innovation and competitiveness of the region should be based on active and multilevel cooperation among operators of the local tourism business environment. It is commonly assumed that an exceptionally important role in creating a favorable environment for the cooperative practices in the region is performed by local authorities. Yet, a modest number of research findings presented in the literature indicate a rather high level of inertia of local authorities in creating appropriate conditions for tourism business development, thus putting in question the effectiveness of performed intermediary function in the process of knowledge transfer among tourist enterprises. Given the paucity of empirical evidence on effectiveness of innovation policy interventions at the regional level, this article presents the empirical findings regarding cooperation in innovation between tourist enterprises and local institutional agents.
    Keywords: tourism, innovation, cooperation, institutional environment, local government
    JEL: H70 L83 O31
    Date: 2013–09–15
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:52991&r=ino
  7. By: Benjamin Kern (University of Marburg)
    Abstract: The relevant competitors in regard to innovation might, but not necessarily do, correspond to the identified competitors on actual product markets. Hence, the conventional analysis of product markets, in order to assess the potential anticompetitive effects of mergers, is insufficient to capture innovation competition in its full extent. As a consequence, the aim of this article is to introduce and compare the existing alternative approaches which can, in principle, be used for the assessment of anticompetitive innovation effects in merger review. By focusing on the applied U.S. Antitrust, it turns out that none of the existing approaches seems to be appropriate to fully account for innovation competition. However, the ‘Innovation Market Analysis’, the first framework especially designed for the assessment of innovation aspects, might still serve as a good starting point for the development of a revised assessment framework.
    JEL: B52 K21 L12 L41 O31
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:mar:magkse:201408&r=ino
  8. By: Susanne Ollila (Chalmers - Chalmers University of Technology - Chalmers University of Technology); Anna Yström (Management of Organizational Renewal and Entrepreneurship - Chalmers University of Technology); Marine Agogué (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: This paper explores the challenges organizations face in practice as they engage in open innovation projects with multiple partners. Open innovation as a way to increase competitiveness has become popular among many organizations, but its success is not guaranteed. It appears to sometimes be challenging to reap the benefits of bringing multiple, diverse partners together, as it is difficult to turn the differences into something constructive. Using empirical findings from a project in the field of vehicle- and traffic safety, this paper contributes with a proposal for a refined methodology, iKCP, to enable and facilitate open innovation collaboration. Inspiration has been sought in methods used for managing innovative design processes. The strength of the iKCP methodology is that it supports, encourages and even forces the participants to leave the zone of territorial protection and be at ease in the zone of expansive exploration.
    Date: 2013–06
    URL: http://d.repec.org/n?u=RePEc:hal:journl:hal-00931185&r=ino
  9. By: W. Scott Frame; Lawrence J. White
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:ste:nystbu:14-02&r=ino
  10. By: T. Buchmann; D. Hain; Muhamed Kudic; M. Müller
    Abstract: Our primary goal is to analyse the drivers of evolutionary network change processes by using a stochastic actor-based simulation approach. We contribute to the literature by combining two unique datasets, concerning the German laser and automotive industry, between 2002 and 2006 to explore whether geographical, network-related, and techno-logical determinants affect the evolution of networks, and if so, as to what extent these determinants systematically differ for science-driven industries compared to scale-intensive industries. Our results provide empirical evidence for the explanatory power of network-related determinants in both industries. The ‘experience effect’ as well as the ‘transitivity effects’ are significant for both industries but more pronounced for laser manufacturing firms. When it comes to ‘geographical effects’ and ‘technological ef-fects’ the picture changes considerably. While geographical proximity plays an important role in the automotive industry, firms in the laser industry seem to be less dependent on geographical closeness to cooperation partners; instead they rather search out for cooperation opportunities in distance. This might reflect the strong dependence of firms in science-driven industries to access diverse external knowledge, which cannot necessarily be found in the close geographical surrounding. Technological proximity negatively influences cooperation decisions for laser source manufacturers, yet has no impact for automotive firms. In other words, technological heterogeneity seems to ex-plain, at least in science-driven industries, the attractiveness of potential cooperation partners.
    Keywords: network evolution, innovation network, automotive industry, laser industry, SIENA
    JEL: O32 C41 D85
    Date: 2014–01
    URL: http://d.repec.org/n?u=RePEc:iwh:dispap:1-14&r=ino
  11. By: Christoph Böhringer (University of Oldenburg, Departmentof Economics); Alexander Cuntz (Expert Commission for Research and Innovation, Berlin, Germany); Dietmar Harhoff (Max Planck Institute for Intellectual Property and Competition Law, Munich, Germany); Emmanuel A. Otoo (Universtiy of Oldenburg, Department of Economics)
    Abstract: Feed-in tariffs under the Renewable Energy Sources Act, the so - called Erneuerbare - Energien - Gesetz (EEG), have triggered a massive expansion of electricity from renewable energy sources in Germany over the last decade. The increase in non-competitive renewable power generation though went hand in hand with a substantial rise in electricity prices with consumers paying for the renewable energy subsidies. The high cost burden has provoked an intense public debate on the benefits of renewable energy promotion. In this paper, we assess one popular justification for feed-in tariffs, i.e., induced innovation as a positive spillover externality. Based on regressions with a time - technology fixed effect negative binomial model, we find that innovation impacts of feed-in tariffs under the EEG are insignificant.
    Keywords: renewable energy promotion, feed-in tariffs, innovation, negative binomial regression
    JEL: C23 H23 O38
    Date: 2014–01
    URL: http://d.repec.org/n?u=RePEc:old:dpaper:363&r=ino
  12. By: Hessels, Jolanda (Erasmus University Rotterdam); Brixy, Udo (Institute for Employment Research (IAB), Nuremberg); Naudé, Wim (Maastricht School of Management); Gries, Thomas (University of Paderborn)
    Abstract: We extend Lazear's theory of skills variety and entrepreneurship in three directions. First, we provide a theoretical framework linking new business creation with an entrepreneur's skill variety. Second, in this model we allow for both generalists and specialists to possess skill variety. Third, we test our model empirically using data from Germany and the Netherlands. Individuals with more varied work experience seems indeed more likely to successfully start up a new business and that being a generalist does not seem to be important in this regard. Finally, we find that innovation positively moderates the relationship between having varied experiences, and being successful in starting up a new business. Our conclusion is that entrepreneurs with more varied work experience are more likely to introduce innovations that have not only technical, but also commercial value. Our findings support the notion that entrepreneurship can be learned.
    Keywords: entrepreneurship, start-ups, human capital, innovation, skills
    JEL: L26 M13 J24 O31
    Date: 2014–01
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp7889&r=ino
  13. By: Sabine Hoidn; Kiira Kärkkäinen
    Abstract: Higher education plays an important role in providing people with skills for innovation, but a number of important questions remain as to what kind of higher education teaching can be conducive to the strengthening of skills for innovation. This report aims to shed light on this issue by reviewing the current evidence on the effectiveness of problem-based learning compared with more traditional approaches in higher education teaching. It explores the extent to which problem-based learning can be an effective way to develop different discipline-specific and transferable skills for innovation. Research, primarily from the field of medicine, shows that problem-based learning appears to be beneficial in fostering certain aspects of skills for innovation. In addition, the report explores the literature on direct teaching behaviours that may help foster student learning in more traditional teaching settings. Despite the promising evidence linking problem-based learning and effective teaching in higher education to certain aspects of skills for innovation, more work is needed in this area. There is strong potential for further research to provide additional important insights into the development of skills for innovation.
    Date: 2014–01–16
    URL: http://d.repec.org/n?u=RePEc:oec:eduaab:100-en&r=ino

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