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on Innovation |
| By: | Tor Eriksson (Department of Economics and Business, Aarhus University, Denmark); Zhihua Qin (Renmin University, China,); Wenjing Wang (Department of Economics and Business, Aarhus University, Denmark) |
| Abstract: | This paper examines the relationship between employee turnover, HRM practices and innovation in Chinese firms in five high technology sectors. We estimate hurdle negative binomial models for count data on survey data allowing for analyses of the extensive as well as intensive margins of firms’ innovation activities. Innovation is measured both by the number of ongoing projects and new commercialized products. The results show that higher R&D employee turnover is associated with a higher probability of being innovative, but decreases the intensity of innovation activities in innovating firms. Innovating firms are more likely to have adopted high performance HRM practices, and the impact of employee turnover varies with the number of HRM practices implemented by the firm. |
| Keywords: | Innovation, HRM Practices, Employee Turnover |
| JEL: | L22 M50 O31 |
| Date: | 2014–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2014-09&r=ino |
| By: | Benjamin Rene Kern (University of Marburg); Juan Manuel Mantilla Contreras |
| Abstract: | The firms that compete with one another in terms of innovation do not necessarily coincide with the relevant competitors on pre-innovation product markets. As a consequence, the findings about the ambiguous interrelation between (product) market concentration and innovation cannot be transferred one-to-one to the interrelationship between innovation competition and innovation. By identifying and classifying the most relevant effects, which are decisive for the impact of mergers on the incentives to invest in product innovation oriented R&D, we will demonstrate that the interrelation between innovation competition and innovation is not always as unclear as it seems. Hence, by analyzing the model-theoretic industrial organization literature, this article aims to contribute to the discussion about the development of a decision theoretic assessment framework for analyzing the impact of mergers on innovation and is therefore also in line with the idea of a rule-based competition policy which is, from a law and economics perspective, ought to reduce error costs, give legal guidance and reduce legal uncertainty. |
| JEL: | K21 L12 L41 O31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201417&r=ino |
| By: | Sami Gharbi; Jean-Michel Sahut; Frédéric Teulon |
| Abstract: | This paper examines the link between research and development (R&D) and idiosyncratic volatility for a panel of large French quoted companies. We investigate whether the intensity of R&D investment makes the firm’s stocks riskier. We suggest that R&D activities generate information asymmetry and uncertainty about the firm’s future cash flows and make its idiosyncratic volatility higher. Our results show that R&D investment intensity should be considered as a determinant of the idiosyncratic volatility and that R&D increases the riskiness of the firm. |
| Keywords: | R&D, volatility, asymmetric information, risk, CAPM. |
| Date: | 2014–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-120&r=ino |
| By: | Kizuku Takao (Graduate School of Economics, Osaka University) |
| Abstract: | Tax changes are often announced before the implementations and are not permanent but only temporary. R&D firms will optimally adjust their investment decision to a tax schedule accordingly. This paper analyzes how anticipated and temporary tax changes dynamically affect the innovation activities. For the purpose, we consider adjustment costs for the investment process and allow firms to make a forward looking investment decision in the framework of an R&D-based endogenous growth model. Calibrating the model with U.S. data, we obtain new insights on how to design the corporate taxation policy. A dividend tax cut is not an effective policy instrument irrespective of how it is implemented. On the other hand, a capital gains tax cut and a rise of the R&D tax credit rate are an effective policy instrument irrespective of how they are implemented. However, the implementation lags of these tax changes worsen the effectiveness of them. |
| Keywords: | Fiscal policy, R&D, Economic growth |
| JEL: | E62 O32 O41 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1410&r=ino |
| By: | Sadaf Bashir; Uwe Matzat; Bert Sadowski |
| Abstract: | This paper analyzes processes and effects of ICT enabled innovation in the Dutch design sector. Although the adoption of Information and Communication Technologies (ICT) is considered as vital in the design sector, little is known about whether and how ICTs affect the firm performance of small and medium-sized companies (SMEs) in the industry. In introducing a conceptual distinction between ICT supporting the information processing and communication, the paper first examines the determinants of ICT adoption. Next, we analyze the effects of ICT adoption on product and process innovation as well as on firm performance, focusing on the mediating role of the innovation processes. The analyses rest on survey data of a sample of 189 Dutch companies in the Web, Graphic, and Industrial Design Sector in the Netherlands. The results indicate that information processing role of ICT supports the exploitation and communication role facilitates the exploration in organizational learning. The exploitation enables process innovation while exploration enables product innovation. Lastly, Information processing technologies and product innovation are important determinants of superior firm performance. |
| Keywords: | ICT, design, innovation |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:ein:tuecis:1401&r=ino |
| By: | Tannista Banerjee; Ralph Siebert |
| Abstract: | Our study puts special attention to the fact that R&D cooperations in the pharmaceutical industry are formed at different stages throughout the drug development process. We study if the timing to engage in R&D cooperations in the pharmaceutical industry has different impacts on the technology and product markets. Using a comprehensive dataset on the pharmaceutical industry, and estimating a heterogeneous treatment effects model (Heckman et al., 2006) our results show that R&D cooperations formed at the early stages increase the number of R&D projects and the number of drugs launched on the product market. Most interestingly, late stage R&D cooperations significantly reduce the number of drugs launched on the market, even though they increased firms’ activity in the technology markets. This result highlights the fact that firms re-optimize their drug development portfolio to avoid wasteful duplication and cannibalizing the sales of the jointly developed drug in R&D cooperations. Our study show that firms cooperating in late stage collaborations re-optimize their individual drug development portfolios, which significantly reduces the number of drugs offered on the market. |
| Keywords: | drug development, dynamics, co-development, pharmaceutical industry, product variety, product market competition, Research and Development cooperation |
| JEL: | L24 L25 L65 D22 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_4567&r=ino |
| By: | Roberto Antonietti (Department of Economics & Management "Marco Fanno”, University of Padova); Massimo Loi (European Commission, Joint Research Centre, Econometric and Applied Statistics Unit, Ispra) |
| Abstract: | Relying on a rich firm-level dataset, we investigate the factors underlying the demand for foreign languages (FL) by Italian manufacturing firms. As main determinants, we focus on innovation and internationalization activities, these latter ranging from export to FDI. In the empirical analysis, we first estimate the probability of demanding for the knowledge of at least one FL through a set of univariate probit models, in which we also control for other characteristics required by firms, like the type of job, the level of education, the type of experience and the knowledge of informatics. Then, we make the demand for FL interact with the demand for these characteristics by estimating a set of bivariate probit models from which we extract the joint and conditional probabilities. Our estimates show that the probability to demand for FL increases with firm size, human capital intensity, engagement in R&D and in exporting goods, whereas the other internationalization activities are not significant when considered individually. Instead, we find a strong and positive effect on FL demand of increasing commitment to internationalization. Moreover, R&D and internationalization acts like observable substitutes on FL demand. When we further make FL demand interact with other required attributes, we find that the impact of increasing exposure to internationalization is higher when the firm also demands for professional occupations with a university degree, for specific experience and for the simultaneous knowledge of informatics. We conclude that FL are a strategic asset for firms and, from a labor demand perspective, are complementary to high levels of human capital. |
| Keywords: | foreign languages, innovation, internationalization, labor demand |
| JEL: | F16 J23 L60 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:laa:wpaper:57&r=ino |
| By: | Kizuku Takao (Graduate School of Economics, Osaka University) |
| Abstract: | This paper provides a theoretical explanation for why the presence of asset bubbles can lead to higher economic growth in concurrence with high consumption by using a simple endogenous growth model. In the model economy, long-lived valuemaximizing firms continuously improve the quality of their specific products through in-house R&D, while at the same time new firms also enter into the market. Due to an absence of intergenerational altruism, asset bubbles can exist as pyramid schemes whose value is not backed by fundamental value. The presence of asset bubbles then leads to higher interest rates. This requires product proliferation to be impeded, which would result in an increase in the demand for differentiated goods at the level of an individual firm. A larger scale of production at the level of an individual firm can encourage in-house R&D of firms and promote economic growth. |
| Keywords: | Bubbles, R&D, Overlapping generations |
| JEL: | E44 O32 O41 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:osk:wpaper:1411&r=ino |
| By: | Geng, Viktoria; Herstatt, Cornelius |
| Abstract: | In the light of depleting natural resources and growing awareness for responsible consumption, Cradle-to-Cradle (C2C) has emerged as one of the key concepts redefining product characteristics and assigning a new role to environmental responsibility of companies. It reframes the general goal of reducing negative externalities in a more positive way seeking the design of healthy products made out of benign materials that circulate in an endless flow of resources after the use phase. The importance of the relatively new paradigm, coined by the chemist Braungart and architect McDonough, opens up new opportunities for companies and is already well established in practice. Considering the limited coverage of the topic in academia, especially in the context of innovation management, we aim to investigate the potential intersections between C2C and the Fuzzy Front End theory. Based on a case study research and a descriptive analysis of a dataset containing C2C certified products, we apply FFE success factors to C2C and derive enablers for successful C2C implementation. -- |
| Keywords: | cradle-to-cradle,eco-effectiveness,fuzzy front end |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:79&r=ino |
| By: | Fabrizio Antonioli (Dipartimento di Economia Istituzioni Territorio, Facoltà di Economia, Università degli Studi di Ferrara.); Simone Borghesi (Università degli Studi di Siena, Facoltà di Scienze Politiche.); Massimiliano Mazzanti (Departiment of Economics, Università di Ferrara (italy).) |
| Abstract: | The adoption and diffusion of environmental innovations (EIs) is crucial to greening the economy and achieving win-win environmental – economic gains. A large and increasing literature has focused on the levers underlying EIs that are external to the firm, such as stakeholder’s pressure and policy pressure. Little attention, however, has been devoted so far to the possible role of local spatial spillovers. The latter can be very relevant since growth depends on strong idiosyncratic regional factors – such asagglomeration economies - that must be integrated with the challenges posed by global markets. To overcome this drawback of the existing literature, we analyse here a rich dataset that covers the innovative activities and economic performances of firms in the Emilia-Romagna Region in Italy, a manufacturing district-rich area. We analyse firms’ performances through a two-step procedure. First, we look at the relevance of spatial levers, namely whether the agglomeration of EIs induces EIs in a given firm. Second, we test whether EIs have significantly increased firms’ economic performances. As to the importance of spatial levers, the role of agglomeration turns out to be fairly local in nature:we find that spillovers are significantly inducing innovation within municipal boundaries, which is coherent with the district-based Marshallian economies of north- eastern Italy. Regarding economic performances, firms' productivity is positively related to EI adoption; in particular,firms that adopt EIs and organizational change show a better economic performance.Our findings suggest that EIscanbe a key source of growth for regional systems, particularly when spurred by local spillovers, and an important way outof the ongoing crisis. |
| Keywords: | environmental innovations, firm economic performances, local spillovers, manufacturing, agglomeration |
| JEL: | O38 Q55 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0414&r=ino |
| By: | Gehringer, Agnieszka; Martínez-Zarzoso, Inmaculada; Nowak-Lehmann Danzinger, Felicitas |
| Abstract: | This paper examines the development and drivers of total factor productivity (TFP) in the manufacturing sector for a panel of 17 EU countries over the period of 1995-2007. Recent panel data estimation techniques are used in a twofold approach. First, we estimate aggregated and sectoral TFP for 17 EU countries by means of the augmented mean group estimator to control for endogeneity, cross-section dependence and heterogeneous production technology. Second, we investigate the relative importance of the drivers of predicted TFP, namely Foreign Direct Investment (FDI), investment in Information and Communication Technologies (ICT), human capital, R&D, trade openness and rationalization efforts. The results confirm that rationalization, human capital and ICT are the main drivers of TFP. -- |
| Keywords: | sectoral TFP,heterogeneous production functions,common dynamic process,European Union |
| JEL: | C26 F43 O47 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:189&r=ino |
| By: | Levsen, Nils; Herstatt, Cornelius |
| Abstract: | The trend of population aging is affecting an increasing number of countries around the world, especially advanced economies. One consequence of a growing population share of aged persons is a shift in consumer needs, reflected by a rising number of products and services designed particularly for elderly users. Thus, population aging is a catalyst for new markets and a driver of innovation. A common objective of such age-based innovations is the delay of an age-associated decline in individual autonomy or the restoration of autonomy losses already incurred. In particular, age-based innovations aim to compensate ageassociated deficiencies in sensory perception, cognitive skills, and musculoskeletal status. Age-based innovations are marked by a high level of heterogeneity, both in terms of functionality (e.g. mobility, mental stimulation, financial services) and in terms of industry (e.g. consumer electronics, automotive, banking). Different countries undergo population aging at different times and with different magnitude. As some countries have experienced the phenomenon earlier than others, they have had more time to react and create innovations in response to it. This brings about the question of lead markets - country markets with the characteristic that product or process innovation designs adopted early become the globally dominant design and supersede other innovation designs initially adopted or preferred by other countries (Beise 2001, p.10). Do such lead markets exist within the field of age-based innovations? Moreover, is there possibly a single lead market which consistently leads adoption and diffusion across the heterogeneous range of age-based innovations? Finally, is extant lead market theory applicable to the entirety of age-based innovations - a field of business, where innovation is driven not only by profitability-focused stakeholders but also by a multitude of other stakeholders? These questions delineate a research gap at the intersection of lead market research and age-based innovations research. In order to answer them, a multi-methodology approach was adopted. [...] -- |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuhtim:80&r=ino |
| By: | Foders, Federico; Vogelsang, Manuel Molina |
| Abstract: | The German economy has been outperforming other member countries of the European Union during the recent Great Recession and the still ongoing European debt crisis. What are the determinants of this outcome? This paper sets out to empirically analyze the trade and technology specialization and the price/cost performance of the German economy over the period 1990 - 2011. Furthermore, we apply the unit value approach to determine whether the competitiveness of German manufacturing products is related to price or quality advantage. Also, we estimate the degree of vertical specialization characterizing the German export sector in order to assess the role global value chains play in strengthening Germany's position in manufacturing. All indicators are calculated for Germany, the Republic of Korea, the People's Republic of China, Japan and the United States. Our results confirm that Germany is specialized in medium-range technology products and show that quality is the main driver of Germany's international success, that price and cost advantage determines competitiveness in some product groups and that R&D efforts have contributed to develop and maintain German competitiveness in manufactured products. -- |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkpb:69&r=ino |