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on Innovation |
| By: | Jesus Lopez-Rodriguez (European Commission, Joint Research Centre, Institute for Prospective); Diego Martinez (University Pablo Olavide) |
| Abstract: | A significant part of the innovation efforts carried out across very heterogeneous economies in Europe is under the form of Non-R&D innovation activities. But the traditional macro approach to the determinants of TFP does not handle this issue appropiately. This paper has proposed and estimated an augmented macro-theoretical model to the determinants of total factor productivity (TFP) by jointly considering the effects of R&D endowments and the impact of Non-R&D innovation activities on …firms´ levels of productivity. The estimation of the model for a sample of EU26 countries covering the period 2004-2008 shows that the distinction between R&D and Non-R&D endowments really matters for a number of different issues. First, the results show a sizable differential impact of these endowments on TFP growth, being the impact of R&D twice as big as the impact of Non-R&D. Second, absorptive capacity is only linked to R&D endowments. And third, the two types of endowments cannot strictly been seen as complements at least for the case of countries with high R&D intensities or high Non-R&D intensities. |
| Keywords: | TFP, R&D, Non-R&D expenditures, EU countries |
| JEL: | O0 O3 O4 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:2013/6/doc2014-16&r=ino |
| By: | Alex Coad (SPRU, University of Sussex, UK); Maria Savona (SPRU, University of Sussex, UK); Gabriele Pellegrino (Barcelona Institute of Economics, University of Barcelona) |
| Keywords: | Barriers to innovation, labour productivity, quantile regressions, propensity score matching JEL Classification: C23, O31, O32, O33 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2014-04&r=ino |
| By: | Paola Cardamone; Valeria Pupo; Fernanda Ricotta (Dipartimento di Economia, Statistica e Finanza, Università della Calabria) |
| Abstract: | This paper analyses the influence of universities on Italian firms’ probability to innovate. Using firm-level data, we focus on institutionalised technology transfer (TT) activities in universities, namely spin-offs, patents and research contracts. Results show that TT activities play a significant role in the probability to innovate by Italian manufacturing firms located in the same province as the university. Nevertheless, the effect is not uniform: the contribution of university TT activities to the probability of firms’ innovating is concentrated in certain territorial areas (North-East and Centre) and sectors (science based and scale intensive) and among firms that are large. |
| Keywords: | Universities, Technology transfer, Manufacturing firms, Innovation, Spillovers |
| JEL: | C25 O30 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201403&r=ino |
| By: | Draca, Mirko (University of Warwick) |
| Abstract: | US government spending since World War II has been characterized by large investments in defense related goods, services and R&D. In turn, this means that the Department of Defense (DoD) has had a large role in funding corporate innovation in the US. This paper looks at the impact of military procurement spending on corporate innovation among publicly traded firms for the period 1966-2003. The study utilizes a major database of detailed, historical procurement contracts for all Department of Defense (DoD) prime contracts since 1966. Product-level spending shifts – chiefly centered around the Reagan defense build-up of the 1980s – are used as a source of exogenous variation in firm-level procurement receipts. Estimates indicate that defense procurement has a positive absolute impact on patenting and R&D investment, with an elasticity of approximately 0.07 across both measures of innovation. In terms of magnitudes, the contribution of defense procurement to innovation peaked during the early Reagan build-up, accounting for 11.4% of the total change in patenting intensity and 6.5% for R&D. This compares to a defense sector share in output of around 4%. The later defense cutbacks under Bush Senior and Clinton then curbed the growth in technological intensity by around 2%. |
| Keywords: | Regan, Military, procurement |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:168&r=ino |
| By: | Julio Rosa; Pierre Mohnen |
| Abstract: | On the one hand, firms prefer to perform R&D in an open mode (letting R&D be performed extramurally or even selling their R&D services) to benefit from knowledge spillovers and complementarities between internal and external R&D. On the other hand, they may also like to perform R&D in a closed mode (funding and executing their R&D intramurally) to minimize outgoing externalities. We examine the dynamic process by which firms change the way of doing R&D and how these strategic choices of doing R&D affect their productivity growth. This study is based on the Statistics Canada Research and Development in Canadian Industry survey (RDCI), which collects data on R&D performed in the business sector in Canada. The paper is based on data for the period 1997 to 2006. The panel dimension of the data allows to control for unobserved characteristics of R&D performers by estimating a multinomial Logit model with unobserved heterogeneities using maximum simulated likelihood (MSL) method. Les firmes sont tiraillées entre deux façons de faire de la R-D. D’un côté, elles préfèrent faire la R-D de manière ouverte (en faisant faire de la R-D extramuros ou même en vendant des services de R-D) afin de bénéficier d’externalités de connaissance et de complémentarités entre la R-D interne et la R-D externe. D’un autre côté, elles préconisent de faire la R-D en mode fermé (en faisant de la recherche intramuros et en se finançant sur base de fonds propres ou de subventions) afin de minimiser les fuites de connaissance. Dans cette étude, nous examinons la dynamique des choix quant à la façon de faire de la recherche et l’effet de ces choix sur les rendements de celle-ci. Nous nous basons sur les données de l’enquête de Statistique Canada sur la recherche et développement dans l’industrie canadienne (RDIC) pour la période 1997-2006. La dimension panel de la base de données nous permet de contrôler pour l’hétérogénéité individuelle inobservée dans l’estimation d’un modèle Logit multinomial dynamique à partir de la méthode du maximum de vraisemblance simulé. |
| Keywords: | R&D; State Dependence; Dynamic Multinomial Logit; Panel-data; Maximum Simulated Likelihood; Open Innovation, persistance, modèle Logit multinomial dynamique, données panel, maximum de vraisemblance simulé, innovation ouverte |
| Date: | 2013–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2013s-42&r=ino |
| By: | Bruno Amable (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris 1 - Panthéon-Sorbonne, CEPREMAP - Centre pour la recherche économique et ses applications, IUF - Institut Universitaire de France - Ministère de l'Enseignement Supérieur et de la Recherche Scientifique); Ivan Ledezma (LEDa - Université Paris-Dauphine, IRD - DIAL - UMR 225); Stéphane Robin (PRISM - Sorbonne - Pôle de Recherche Interdisciplinaire en Sciences du Management) |
| Abstract: | Several recent policy and academic contributions consider that liberalising product markets would foster innovation and growth. This paper analyses the innovation-productivity relationship at the industry-level for a sample of OECD manufacturing industries. We pay particular attention to the vertically-induced influence of product market regulation (PMR) of key input sectors of the economy on the innovative process of manufacturing and its consequences on productivity. We test for a differentiated effect of this type of PMR depending on whether countries are technological leaders or laggards in a given industry and for a given time period. Contrary to the most widespread policy claims, the innovation-boosting effects of liberalisation policies at the leading edge are systematically not supported by the data. These findings question the relevance of a research and innovation policy based on liberalisation. |
| Keywords: | Product market regulation; innovation; productivity; growth |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-00973947&r=ino |
| By: | Angela, Vásquez-Urriago; Andrés, Barge-Gil; Aurelia, Modrego |
| Abstract: | The aim of this work is to analyse the heterogeneous effect of Science and Technology Parks (STPs) on firms’ innovation outcomes, contingent on firms’ size and innovation effort. Despite the worldwide diffusion of STPs and the increasing literature aimed at analyzing their effect on tenants’ performance, empirical evidence on the heterogeneous effect of STPs location on different firms is very scarce. We use information for a representative sample of 39,722 Spanish firms, 653 of them located on 22 of the 25 official Spanish STP. Results show, on the one hand, that firm size is negatively related to an STP location effect and, on the other, that only a small amount of internal innovation effort is required to achieve a very high return from park location. However, firms without innovation efforts do not benefit from a park location. Finally, as internal innovation efforts increase, the park effect reduces, but is still at a high level. |
| Keywords: | Science and Technology Parks, heterogeneous treatment effects, product innovation, firms’ internal innovation capabilities, size |
| JEL: | L25 O25 R53 |
| Date: | 2014–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55130&r=ino |
| By: | Erika Raquel Badillo (Faculty of Economics, University of Barcelona); Rosina Moreno (Faculty of Economics, University of Barcelona) |
| Abstract: | We provide evidence on the dynamics in firms’ R&D cooperation behaviour. Our main objective is to analyse if R&D collaborative agreements are persistent at the firm level, and in such a case, to study what are the main drivers of this phenomenon. R&D cooperation activities at the firm level can be persistent due to true state dependence, this implying that cooperating in a given period enhances the probability of doing it in the subsequent period and it can also be a consequence of firms’ individual heterogeneity, so that certain firms have certain characteristics that make them more likely to carry out technological alliances. A second contribution of the paper deals with the differentiated persistence pattern of collaboration agreements for three different types of partners: customers and/or suppliers, competitors and institutions. We specifically explore the degree of the persistence in R&D collaborative activities when considering them separately as well as the possibility of finding crossed-persistence across these different partner types. |
| Keywords: | R&D cooperation; Persistence; Innovative Spanish firms; Technological partners. JEL classification: L24; O32; D22; C23 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:aqr:wpaper:201405&r=ino |
| By: | Yasunori Ouchida (Department of Economics, Hiroshima University); Daisaku Goto (Graduate School for International Development and Cooperation Hiroshima University) |
| Abstract: | This paper presents an examination of the socially efficient formation of environmental R&D in Cournot duopoly in a setting where a regulator has no precommitment ability for an emission tax. The results reveal that if the environmental damage is slight, alternatively, given severe environmental damage and large inefficiency in environmental R&D costs, then environmental research joint venture (ERJV) cartelization is socially efficient. However, if environmental damage is severe, and if a firm’s R&D costs are limited, then, in stark contrast to results of previous studies, environmental R&D competition is socially more efficient than the other three scenarios (i.e., environmental R&D cartelization, ERJV competition, and ERJV cartelization), although R&D competition is the case of “NO information sharing and NO R&D coordination.” |
| Keywords: | Environmental Research Joint Venture, Environmental R&D, Time-consistent Emission Tax, Competition Policy, Cournot Duopoly |
| JEL: | O32 L13 Q55 Q58 |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2014.35&r=ino |
| By: | Sami Gharbi; Jean-Michel Sahut; Frédéric Teulon |
| Abstract: | The empirical evidence suggests that firms in high-tech industries exhibit high stock return volatility. In this paper, we conceive of the R&D investment intensity as a possible explanation for the stock volatility behavior in these industries. We suggest that R&D activities generate information asymmetry about the prospects of the firm and make its stock riskier. Relying on Panel data models, we investigate this relationship for French high-tech firms. We find out a strong positive relationship between stock return volatility and R&D investment intensity. This finding suggests that R&D intensive firms should implement an efficient information disclosure policy to reduce information asymmetry and to avoid excessive stock return volatility. |
| Keywords: | R&D; Idiosyncratic idiosyncratic volatility; Riskrisk; Asymmetric asymmetric information; Stock stock return; Innovationinnovation; Highhigh-tech firms |
| Date: | 2014–04–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipg:wpaper:2014-218&r=ino |
| By: | Aoki, Reiko; Arai, Yasuhiro |
| Abstract: | We develop a framework to examine how a standard evolves when a standard consortium or firm (incumbent) innovates either to improve the standard or to strengthen the installed base, which increases switching costs. Both investments make it more difficult for another firm (entrant) to introduce a standard by investing in technology improvement. Our analysis shows that that incumbent’s strategy depends on whether the technology is in its infancy or has matured, and that entrants cannot supplant the existing standard. A standard consortium brings dynamic benefits by preventing replacement by an entrant. When the technology is in its infancy, the incumbent deters entry, but when the technology is mature, entry and the coexistence of two standards are tolerated. The dominance of a single standard, even for well-established technologies, suggests that incumbents have market power. Our results also suggest that having superior technology is not enough to enable entrants to supplant an existing standard. |
| Keywords: | standards, innovation, technology, upgrades, standardization, replacement effect |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:hit:cisdps:619&r=ino |
| By: | Chris Forman; Avi Goldfarb; Shane Greenstein |
| Abstract: | We examine the relationship between the diffusion of advanced internet technology and the geographic concentration of invention, as measured by patents. First, we show that patenting became more concentrated from the early 1990s to the early 2000s and, similarly, that counties that were leaders in patenting in the early 1990s produced relatively more patents by the early 2000s. Second, we compare the extent of invention in counties that were leaders in internet adoption to those that were not. We see little difference in the growth rate of patenting between leaders and laggards in internet adoption, on average. However, we find that the rate of patent growth was faster among counties who were not leaders in patenting in the early 1990s but were leaders in internet adoption by 2000, suggesting that the internet helped stem the trend towards more geographic concentration. We show that these results are largely driven by patents filed by distant collaborators rather than non-collaborative patents or patents by non-distant collaborators, suggesting low cost long-distance digital communication as a potential mechanism. |
| JEL: | O31 O33 R11 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20036&r=ino |
| By: | Soonwoo Kwon; Jihong Lee; Sokbae 'Simon' Lee (Institute for Fiscal Studies and Seoul National University) |
| Abstract: | We analyze cross-country trends in technological progress over the period of 1980-2011 by examining citations data from almost 4 million utility patents granted by the US Patent and Trademark Oce (USPTO). Our estimation results on patent quality and distance to the knowledge frontier reveal the following stylized facts. The emerging Asian economies of Korea, Taiwan and China have indeed achieved substantial catch-up towards the technology frontier. In the case of Korea and Taiwan, progress has been made in terms of patent quality as well as distance to the frontier. Chinese patents are of higher quality now than before but Chinese inventors have yet to reduce the citation lag relative to the frontier. In contrast, advanced economies of Europe and Japan have displayed steady decline in their patent quality. Finally, the US has maintained, and in some cases strengthened, its position as the world technology frontier. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:ifs:cemmap:16/14&r=ino |
| By: | Carlo Altomonte; Tommaso Aquilante; Gábor Békés; Gianmarco I. P. Ottaviano |
| Abstract: | We use a representative and cross-country comparable sample of manufacturing firms (EFIGE) to document patterns of interaction among firm-level internationalization, innovation and productivity across seven European countries (Austria, France, Germany, Hungary, Italy, Spain, United Kingdom). We find strong evidence of positive association among the three firm-level characteristics across countries and sectors. We also find that the positive correlation between internationalization and innovation survives after controlling for productivity, with some evidence of causality running from the latter to the former. Our analysis suggests that export promotion per se is unlikely to lead to sustainable internationalization because internationalization goes beyond export and because, in the medium-to-long term, internationalization is driven by innovation. We recommend coordination and integration of internationalization and innovation policies 'under one roof' at both the national and EU levels, and propose a bigger coordinating role for EU institutions. |
| Keywords: | Internationalization, innovation, firm-level data, exports, foreign direct investment, outsourcing |
| JEL: | F13 F23 O31 O38 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepsps:032&r=ino |
| By: | Jens K. Perret (European Institute for International Economic Relations at the University of Wuppertal) |
| Abstract: | For many decades culture has been considered to have a significant impact on the productivity of people. This study observes for the Russian Federation, on the basis of the ARENA study by Sreda, the impact of the share of the most prominent religious groups on economic output as well as on regional innovativeness measured by patent grants from Rospatent. While some issues of causality remain, the analysis shows that standard deductions concerning the religions effect on growth from religious doctrines hold true for the regions oft he Russian Federation as well. The effects on regional patenting, however, are not as clear. |
| Keywords: | russian federation, religious values, economic growth, patenting, culture |
| JEL: | P24 R11 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:schdps:sdp14006&r=ino |
| By: | Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Ronney Aamoucke (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | We investigate the role played by different fields of academic knowledge and various types of higher education institutions in the emergence of innovative start-ups in a region. We show that education and research in the applied and natural sciences have the strongest effect on the emergence of new businesses in innovative industries. Distinguishing between different indicators for these types of knowledge, the strongest effects are found for the number of professors, followed by the number of students and the amount of external funds attracted. This discovery clearly indicates that it is more the size of the regional knowledge stock than the number of students that is most important for the emergence of innovative stat-ups. |
| Keywords: | New business formation, innovative start-ups, universities, regional knowledge |
| JEL: | L26 L60 L80 O18 R12 R30 |
| Date: | 2014–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2014-013&r=ino |
| By: | Antonio Messeni Petruzzelli (Department of Mechanics, Mathematics and Management, Politecnico di Bari); Daniele Rotolo (SPRU, University of Sussex, UK); Vito Albino (Department of Mechanics, Mathematics and Management, Politecnico di Bari) |
| Keywords: | patent influence, determinants, industrial boundary, organizational boundary, biotechnology |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2014-05&r=ino |
| By: | Koschatzky, Knut |
| Abstract: | More recently, the contribution of German universities to regional knowledge and technology transfer and their third role is particularly pronounced by the fact that the range of their tasks as well as their autonomy has increased significantly. Terms like new public management, self-control and strategic management underline this new role. Based on a stronger regional focus in national innovation policy, the objective of the paper is to analyze the recent developments of universities with regard to their regional activities. Of special interest will be the identification of the most prominent forms of the third role of universities and the analysis of new organizational modes of collaboration and interaction with industry. Based on a survey among German professors and the management levels of universities and by introducing the 'Research Campus' (Forschungscampus) program recently implemented by the German government, the paper shows that multilateral, multi-functional networks and long-term institutionalized partnerships are increasingly established. -- |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisifr:r32014&r=ino |