nep-ino New Economics Papers
on Innovation
Issue of 2014‒06‒02
twenty-six papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Patents as quality signals? The implications for financing constraints on R&D By Hottenrott H.; Czarnitzki D.; Hall B.H.
  2. Profiting from Innovation: Firm Level Evidence on Markups By Cassiman, Bruno; Vanormelingen, Stijn
  3. Financial Dependence and Innovation: The Case of Public versus Private Firms By Acharya, Viral V; Xu, Zhaoxia
  4. Market Outcomes and Dynamic Patent Buyouts By Galasso, Alberto; Mitchell, Matthew; Virag, Gabor
  5. End-user collaboration for process innovation in services: The role of internal resources By Narula R.; Martinez-Noya A.; Ashok M.
  6. "Evaluation of Public R&D Policy: A Meta-Regression Analysis" By SYOUM NEGASSI; JEAN-FRANCOIS SATTIN
  7. The nature of innovative activity and the protection of intellectual property: a post TRIPS perspective from Asia By Kamal Saggi; Difei Geng
  8. Experimentation Strategies and Entrepreneurial Innovation: Inherited Market Differences in the iPhone Ecosystem By Jason P. Davis; Yulia Muzyrya; Pai-Ling Yin
  9. Why are some regions more innovative than others? The role of firm size diversity By Agrawal, Ajay; Cockburn, Iain M; Galasso, Alberto; Oettl, Alexander
  10. Productivity Spillovers Through Labor Mobility By Heggedal, Tom-Reiel; Moen, Espen R; Preugschat, Edgar
  11. Do inventors talk to strangers? On proximity and collaborative knowledge creation By Crescenzi, Riccardo; Nathan, Max; Rodríguez-Pose, Andrés
  12. Technology life cycle and specialization patterns of latecomer countries: The case of the semiconductor industry By Triulzi G.
  13. R&D Networks: Theory, Empirics and Policy Implications By König, Michael; Liu, Xiaodong; Zenou, Yves
  14. Managerial capacity in the innovation process and firm profitability By Giovanni Cerulli; Bianca Potì
  15. Does working with industry come at a price? A study of doctoral candidates’ performance in collaborative vs. non-collaborative PhD projects By Negin Salimi; Rudi Bekkers
  16. Women’s Entrepreneurship and Innovation: A Comparative Perspective By Fulvia Farinelli
  17. Business Group Taxation and R&D Activities By Masanori Orihara
  18. Population and technological innovation: the optimal interaction across modern countries By Mario Coccia
  19. Emerging scientific directions in plasma technology for food decontamination By Mario Coccia; Ugo Finardi
  20. Récents enseignements de la théorie des réseaux en faveur de la politique et du management des clusters By Raphaël Suire; Jérôme Vicente
  21. Net Neutrality with Competing Internet Platforms By Bourreau, Marc; Kourandi, Frago; Valletti, Tommaso
  22. German-Sino collaboration in science, technology and innovation By Frietsch, Rainer; Tagscherer, Ulrike
  23. Industrial and technological policy: Contributions from evolutionary perspectives to policy design in developing countries. By Yoguel, Gabriel; Pereira, Mariano
  24. Environmental Policy and Directed Technical Change in a Global Economy: The Dynamic Impact of Unilateral Environmental Policies By Hemous, David
  25. Entrepreneurship Education By Jonathan Bainée
  26. Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem By Pai-Ling Yin; Jason P. Davis; Yulia Muzyrua

  1. By: Hottenrott H.; Czarnitzki D.; Hall B.H. (UNU-MERIT)
    Abstract: Information about the success of a new technology is usually held asymmetrically between the research and development RD-performing firm and potential lenders and investors. This raises the cost of capital for financing RD externally, resulting in financing constraints on RD especially for firms with limited internal resources. Previous literature provided evidence for start-up firms on the role of patents as signals to investors, in particular to Venture Capitalists. This study adds to previous insights by studying the effects of firms patenting activity on the degree of financing constraints on RD for a panel of established firms. The results show that patents do indeed attenuate financing constraints for small firms where information asymmetries may be particularly high and collateral value is low. Larger firms are not only less subject to financing constraints, but also do not seem to benefit from a patent quality signal. Keywords Patents, Quality Signal, Research and Development, Financial Constraints, Innovation Policy
    Keywords: Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Government Policy;
    JEL: O31 O32 O38
    Date: 2014
  2. By: Cassiman, Bruno; Vanormelingen, Stijn
    Abstract: While innovation is argued to create value, private incentives of firms to innovate are driven by what part of the value created firms can appropriate. In this paper we explore the relation between innovation and the markups a firm is able to extract after innovating. We estimate firm-specific price-cost margins from production data and find that both product and process innovations are positively related to these markups. Product innovations increase markups on average by 5.1% points by shifting out demand and increasing prices. Process innovation increases markups by 3.8% points due to incomplete pass-through of the cost reductions associated with process innovation. The ability of the firm to appropriate returns from innovation through higher markups is affected by the actual type of product and process innovation, the firm's patenting and promotion behavior, the age of the firm and the competition it faces. Moreover, we show that sustained product innovation has a cumulative effect on the firm's markup.
    Keywords: markup; process innovation; product innovation; productivity
    JEL: D24 L11 O31
    Date: 2013–10
  3. By: Acharya, Viral V; Xu, Zhaoxia
    Abstract: This paper examines the relationship between innovation and firms' dependence on external capital by analyzing the innovation activities of privately-held and publicly-traded firms We find that public firms in external finance dependent industries generate patents of higher quantity, quality, and novelty compared to their private counterparts, while public firms in internal finance dependent industries do not have a significantly better innovation profile than matched private firms. The results are robust to various empirical strategies that address selection bias. The findings suggest that public listing is beneficial to the innovation of firms in industries with a greater need for external capital.
    Keywords: finance and growth; financial constraints; innovation; private firms; public firms; R&D
    JEL: G31 G32 O16 O30
    Date: 2014–02
  4. By: Galasso, Alberto; Mitchell, Matthew; Virag, Gabor
    Abstract: Patents are a useful but imperfect reward for innovation. In sectors like pharmaceuticals, where monopoly distortions seem particularly severe, there is growing international political pressure to identify alternatives to patents that could lower prices. Innovation prizes and other non-patent rewards are becoming more prevalent in government's innovation policy, and are also widely implemented by private philanthropists. In this paper we describe situations in which a patent buyout is effective, using information from market outcomes as a guide to the payment amount. We allow for the fact that sales may be manipulable by the innovator in search of the buyout payment, and show that in a wide variety of cases the optimal policy still involves some form of patent buyout. The buyout uses two key pieces of information: market outcomes observed during the patent's life, and the competitive outcome after the patent is bought out. We show that such dynamic market information can be effective at determining both marginal and total willingness to pay of consumers in many important cases, and therefore can generate the right innovation incentives.
    Keywords: buyout; innovation; mechanism design; patents
    JEL: D82 L51 O31
    Date: 2014–02
  5. By: Narula R.; Martinez-Noya A.; Ashok M. (UNU-MERIT)
    Abstract: This paper focuses on how to improve process innovation in service sectors. To do so, we analyse how the interplay of external knowledge sources specifically, the intensity of end-user collaboration and the breadth of external collaboration and the firms internal resources impact process innovation at the firm level. Survey data from 166 Information Technology Services firms provide the empirical data, which is tested using the partial least squares structural equation model. Our results demonstrate that benefits from collaboration are not automatic, as the firms commitment of internal resources fully mediates the impact of the intensity of end-user collaboration and breadth of external collaboration on process innovation. Thus, internal resources become critical to make effective use of the knowledge residing both internally and externally, and key managerial practices that enable a firm to extract benefits from external collaboration are identified. Keywords end-user collaboration; external knowledge sources; internal resources; process innovation; service industry
    Keywords: IT Management; Management of Technological Innovation and R&D;
    JEL: M15 O32
    Date: 2014
  6. By: SYOUM NEGASSI (University Paris 1 Pantheon Sorbonne and Visiting Professor Department of Economics,University of Delaware); JEAN-FRANCOIS SATTIN (University Paris 1 Pantheon Sorbonne)
    Abstract: Economic theory and empirical evidence indicate that technological innovation is an important determinant of long-term economic development. Various country policies have been launched in favour of private research and development (R&D) with economic development as the main objective. As often in economics, public intervention is grounded on the presumed existence of market failures. The purpose of this paper is two-fold. First, it provides an overview of the history of R&D-related tax policies in more than ten industrial countries. Second, after reviewing the existent empirical evidence on the effectiveness of R&D tax credits policies, it presents a meta-regression analysis based on an econometric model. Our results show that an R&D tax credit is strongly significant in the studies taken cumulatively.
    Keywords: R&D, Meta-analysis
    JEL: C01 C12 H53 H54 O31 O32
    Date: 2014
  7. By: Kamal Saggi (Vanderbilt University); Difei Geng (Vanderbilt University)
    Abstract: This paper examines trends in innovative activity in several major Asian countries during 1997-2011 as measured by their filings and grants of various types of intellectual property (IP). By almost all measures, there has been a remarkable increase in innovative activity in China. In fact, in 2011 China accounted for roughly 25% of global patent applications. However, several indirect measures suggest that the quality of this newly created Chinese IP is not (yet) world class. For example, relative to residents of other major Asian countries and the United States, Chinese residents tend to file IP applications in foreign markets at a much lower rate. Similarly, the ratio of royalty payments earned by Chinese residents to the number of patents granted to them is fairly low by international standards. Finally, the ratio of patent to utility model applications (typically granted for relatively minor innovations) in China is also relatively small.
    Keywords: innovation, protection of intellectual property, patents, trademarks, industrial designs, TRIPS, Asia
    JEL: O3 O5
    Date: 2014–05–27
  8. By: Jason P. Davis (INSEAD); Yulia Muzyrya (University of Michigan); Pai-Ling Yin (Stanford Institute for Economic Policy Research)
    Abstract: Although experimentation is critical to the innovation process in startups, little research has explored the link between different experimentation strategies and entrepreneurial innovation. We use unique data on experimentation strategies and innovation outcomes of firms producing iPhone applications to show that the appropriateness of different strategies depends on market characteristics. Simultaneous experimentation strategies are better suited to markets characterized by strong market inheritance, where innovative know-how, development technologies, and heterogeneous preferences from established markets can be leveraged by entrepreneurs. In markets with fewer skills, fewer developmental technologies, and less understood demand expectations, innovations are more likely to result from sequential product improvements based on customer feedback, allowing the entrepreneur to develop skills and clarify what may be singular customer preferences
    Keywords: Keywords: Entrepreneur; Innovation; Technology; Strategy; Mobile Apps
    Date: 2014–04
  9. By: Agrawal, Ajay; Cockburn, Iain M; Galasso, Alberto; Oettl, Alexander
    Abstract: Large firms spawn spin-outs caused by innovations deemed unrelated to the firm's overall business. Small firms generate demand for specialized services that lower entry costs for others. We study the interplay of these two localized externalities and their impact on regional innovation. We examine MSA-level patent data during the period 1975-2000 and find that innovation output is higher in regions where large and small firms coexist. The finding is robust to across-region as well as within-region analysis and the effect is stronger in certain subsamples in a manner that is consistent with our explanation.
    Keywords: cities; externalities; firm size diversity; innovation; patents; spin-outs
    JEL: L16 O18 O47
    Date: 2013–12
  10. By: Heggedal, Tom-Reiel; Moen, Espen R; Preugschat, Edgar
    Abstract: Do firms have the right incentives to innovate in the presence of productivity spillovers? This paper proposes an explicit model of spillovers through labor flows in a framework with search frictions. Firms can choose to innovate or to imitate by hiring a worker from a firm that has already innovated. We show that if innovation firms can commit to long-term wage contracts with their workers, productivity spillovers are fully internalized. If firms cannot commit to long-term wage contracts, there is too little innovation and too much imitation in equilibrium. Our model is tractable and allows us to analyze welfare effects of various policies in the limited commitment case. We find that subsidizing innovation and taxing imitation improves welfare.Moreover, allowing innovation firms to charge quit fees or rent out workers to imitation firms also improves welfare. By contrast, non-pecuniary measures like covenants not to compete, interpreted as destruction of matches between imitation firms and workers from innovation firms, always reduce welfare.
    Keywords: efficiency; imitation; innovation; productivity; search frictions; spillovers; worker flows
    JEL: J63 J68 O38
    Date: 2014–03
  11. By: Crescenzi, Riccardo; Nathan, Max; Rodríguez-Pose, Andrés
    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: Collaboration; Ethnicity; Innovation; Knowledge spillovers; Patents; Proximities; Regions
    JEL: O31 O33 R11 R23
    Date: 2013–12
  12. By: Triulzi G. (UNU-MERIT)
    Abstract: Catching-up, leapfrogging and falling behind in terms of output and productivity in high-tech industries crucially depends on firms ability to keep pace with technological change. In fast changing industries todays specialization does not guarantee tomorrows success as changes in the technological trajectories reward and punish firms specialization patterns. This highlights the importance of studying the relationship between technology life cycle and specialization patterns of new and incumbent innovators. From an empirical point of view life cycles have been extensively analysed at the industry and product level but not so deeply at the technology one even though plenty of theoretical contributions exist. We define a methodology to describe the life cycle stages of the main technological paradigm within an industry and of the technological areas it is composed of. The methodology is based on the analysis of the age composition of the different areas and of the characteristics of their technological trajectories. We use the classification of the life cycle stages of the single areas to investigate specialization patterns of new and incumbent innovators. Our results show that up to the end of the 1990s firms from Taiwan, Korea and Singapore specialized mainly in areas at the later stages of their life cycles, whereas US and Japanese firms were comparatively better in younger areas. Specialization patterns changed in the beginning of the 2000s, when the Asian Tigers started to become comparatively stronger in emerging areas. Keywords Technology Life Cycle, Industry Life Cycle, Product Life Cycle, Specialization Patterns, Technological Paradigms, Technological Trajectories, Main Path Analysis, Catching-up, Semiconductors, Citation networks, Community Detection
    Keywords: Development Planning and Policy: General; Management of Technological Innovation and R&D; Technological Change: Choices and Consequences; Diffusion Processes; Technological Change: Government Policy;
    JEL: O20 O32 O33 O38
    Date: 2014
  13. By: König, Michael; Liu, Xiaodong; Zenou, Yves
    Abstract: We study a structural model of R&D alliance networks in which firms jointly form R&D collaborations to lower their production costs while competing on the product market. We derive the Nash equilibrium of this game, provide a welfare analysis and determine the optimal R&D subsidy program that maximizes total welfare. We also identify the key firms, i.e. the firms whose exit would reduce welfare the most. We then structurally estimate our model using a panel dataset of R&D collaborations and annual company reports. We use our estimates to identify the key firms and analyze the impact of R&D subsidy programs. Moreover, we analyze temporal changes in the rankings of key firms and how these changes affect the optimal R&D policy.
    Keywords: key firms; optimal subsidies; R&D networks
    JEL: D85 L24 O33
    Date: 2014–03
  14. By: Giovanni Cerulli (Ceris - Institute for Economic Research on Firms and Growth,Rome,Italy); Bianca Potì (Ceris - Institute for Economic Research on Firms and Growth,Rome,Italy)
    Abstract: This paper studies at firm level the relation between managerial capacity in doing innovation and profitability. Moving along the intersection between the evolutionary/neo-Schumpeterian theory and the Resource-Based-View of the firm, we prove econometrically that managerial efficiency in mastering the production of innovation is an important determinant of firm innovative performance and market success, and that it complements traditional Schumpeterian drivers. By using a Stochastic Frontier Analysis, we provide a “direct” measure of innovation managerial capacity, then plugged into a profit margin equation augmented by the traditional Schumpeterian drivers of profitability (size, demand, market size and concentration, technological opportunities, etc.) and other control-variables. We run both a OLS and a series of Quantile Regressions to better stress the role played by companies’ heterogeneous response of profitability to innovative managerial capacity at different points of the distribution of the operating profit margin.Results find evidence of an average positive effect of the innovation managerial capacity on firm profitability, although quantile regressions show that this “mean effect” is mainly driven by a stronger magnitude of the effect for lower quantiles (i.e., for firms having negative or low positive profitability). It means that lower profitable firms might gain more from an increase of managerial efficiency in doing innovation than more profitable businesses.
    JEL: O31 D22 C22
    Date: 2013–06
  15. By: Negin Salimi; Rudi Bekkers
    Abstract: The increasing involvement of industry in academic research raised concerns whether university-industry projects actually meet the same academic standards as university projects in-house. Looking at the academic output and impact of collaborative versus non-collaborative Ph.D. projects at Eindhoven University of Technology, we observe – unexpectedly – that doctoral candidates who conducted a collaborative Ph.D. project outperform their peers in academic performance. Less surprisingly, collaborative projects also lead to more patents and patent citations compared to non-collaborative projects. Science policy implications follow.
    Keywords: university-industry relations, technology transfer, collaborative and non-collaborative Ph.D. projects, performance, publication performance, patenting performance, citations, bibliometric data
    Date: 2014–05
  16. By: Fulvia Farinelli (UNCTAD, Division on Investment and Enterprise Development)
    Date: 2014–05
  17. By: Masanori Orihara (Economist, Policy Research Institute, Ministry of Finance, Japan, University of Illinois at Urbana-Champaign)
    Abstract: Economic theory dating to Domar and Musgrave (1944) suggests that the tax treatment of gains and losses can affect firmsf incentives to undertake high-risk investments. Exploiting a 2002 tax law change in Japan that allows business groups to adopt a consolidated taxation system (CTS) and using an IV strategy, I identify the causal impact of mitigating tax loss asymmetry on R&D activities. With unique firm-level panel data between 1997 and 2011, I show that CTS adoption increases total R&D expenses among individual business groups. More specifically, CTS adoption increases the following, especially among parent companies of business groups: the number of employees engaging in R&D; expenses for property, plant, and equipment for R&D; and expenses for R&D outsourcing. Evidence of ex-ante efficiency of CTS adoption measured by market-to-book ratio is limited, while CTS adoption improves expost efficiency measured by income from patent transactions. These findings support that mitigating tax loss asymmetry facilitates efficient developments of high-risk investments in line with Domar and Musgrave.
    Keywords: business group, corporate income tax, loss treatment, R&D activity, instrumental variable method
    JEL: G30 H25 O30
    Date: 2013–11
  18. By: Mario Coccia (Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy)
    Abstract: Population growth is one of the major problems facing the world today because it affects the pattern of sustainable economic growth. Theory of endogenous growth shows that total research output increases faster than proportionally with population due to increases in the size of the market, more intensive intellectual contact and greater specialization. The study here analyses the relationship between population growth and level of technological outputs (patent applications of residents), focusing on OECD countries. The study seems to show the existence of an inverted-U shaped curve between the growth rate of population and the patents with an optimal zone in which the average rate of growth of the population (roughly 0.3131%) is likely to be associated to a higher level of technological outputs. The policy implications of the study are that, in average, it is difficult to sustain a optimal level of technological outputs either with a low (lower than 0.2197%) or high (higher than 1.0133%) average growth rate of population (annual). In addition, the estimated relationship of technological outputs vs. population growth tends to be affected by decreasing returns of technological innovation to population growth.
    Keywords: Population, Population Growth, Innovation, Technological Change, Demographic Change, Patents, Economic Change
    JEL: O33 J10
    Date: 2013–06
  19. By: Mario Coccia (Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy); Ugo Finardi (Ceris - Institute for Economic Research on Firms and Growth,Turin, Italy)
    Abstract: The purpose of this research is to analyze the evolutionary growth of knowledge in non-thermal plasma technologies applied for food decontamination in order to pinpoint emerging scientific directions. The sample uses 22,836 articles and 2,282 patents from Scopus/SciVerse database in order to calculate the rate of scientific and technological growth that may detect emerging technological trajectories and applications. Results show that emerging plasma technology for food decontamination are mainly cold atmospheric pressure plasma and gas plasma. Moreover, plasma seems to be a promising technology for decontamination of fresh food from bacteria Staphylococcus Aureus, Listeria Monocytogenes and Pseudomonas Aeruginosa, respectively. However, key limitations are the relatively early state of technology development, and the largely unexplored impacts of non thermal plasma on nutritional qualities of treated foods. Nevertheless, this technology shows promise for bio-decontamination and is the subject of active research to enhance efficacy and open up crucial opportunities to industrial and social safety.
    Keywords: Plasma, Non-Thermal Plasma, Technological Innovation, Technological Trajectories, Decontamination, Sterilization, Food, Bacteria.
    JEL: L O30
    Date: 2013–06
  20. By: Raphaël Suire (CREM UMR CNRS 6211, University of Rennes 1, France); Jérôme Vicente (PACTE-CNRS, Sciences-Po Grenoble)
    Abstract: After an abundant literature on the crucial role of cluster development for innovation and growth in knowledge-based economies, cluster policies have been recently and increasingly called into question in the aftermath of several empirical evidences. Our aim is to show that, in spite of this growing scepticism, new opportunities for cluster policy and collective management exist. They require moving their focus from the “connecting people” one best way that gets through the whole of cluster policy guidelines to more surgical and targeted incentives for R&D collaborations, as well as renewed coordination mechanisms, which favour a set of particular network failures along the life cycle of clusters.
    Keywords: Network theories, cluster policy, cluster management
    JEL: B52 D85 O33 R11 R12
    Date: 2014–05
  21. By: Bourreau, Marc; Kourandi, Frago; Valletti, Tommaso
    Abstract: We propose a two-sided model with two competing Internet platforms, and a continuum of Content Providers (CPs). We study the effect of a net neutrality regulation on capacity investments in the market for Internet access, and on innovation in the market for content. Under the alternative discriminatory regime, platforms charge a priority fee to those CPs which are willing to deliver their content on a fast lane. We find that under discrimination investments in broadband capacity and content innovation are both higher than under net neutrality. Total welfare increases, though the discriminatory regime is not always beneficial to the platforms as it can intensify competition for subscribers. As platforms have a unilateral incentive to switch to the discriminatory regime, a prisoner's dilemma can arise. We also consider the possibility of sabotage, and show that it can only emerge, with adverse welfare effects, under discrimination.
    Keywords: Innovation; Investment; Net neutrality; Platform competition; Two-sided markets
    JEL: L13 L51 L52 L96
    Date: 2014–02
  22. By: Frietsch, Rainer; Tagscherer, Ulrike
    Abstract: [Introduction ...] This paper describes the current STI policies of the Sino-German collaboration from a German perspective. It starts with the policies and the actions on the governmental level. Section three tries to briefly depict the effective implementation and the outcomes of these policies and individual actions. It uses empirical data to describe the current status and the evolution of the Sino-German exchange in science, technology and in-novation. Scientific publications and especially co-publications provide a sketch of the science collaborations. Patents and co-patents offer an indication of the technology collaboration as well as an assessment of the attractiveness of the (technology) markets. Finally, foreign trade data also offers a view on the industrial exchange. Profiles in all three dimensions convey a broad picture of complementarities and competition between China and Germany. Section four discusses and summarizes the findings. --
    Date: 2014
  23. By: Yoguel, Gabriel; Pereira, Mariano
    Abstract: In the recent years a renewed consensus about the crucial role of industrial and technological policy to economic development has been growing. Despite of that, strong theoretical differences still persist concerning why and how the government must intervene in the economy. Neoclassical approach proposes that the intervention is only justified by the presence of market failures which leads to an underinvestment on R&D expenditures with respect to a Pareto efficiently level (Arrow and Debreu, 1954). Contrary to this view, a heterodox position integrated by several theoretical approaches can be identified. This group of heterodox authors does not constitute a cohesive and homogeneous corpus. In this paper three different approaches are differentiated. Firstly, we have identified a literature centred on population thinking models (Metcalfe 1994 and 2002, Dopfer, Foster and Potts, 2004, among others) that focus their analysis on the mechanism of variation, selection and retention in the competition process . From this perspective, policy design should be centred on: i) improving firms’ capabilities to increase the system variety which lead to renewing the process of market selection, and ii) enhancing the institutions that regulate the market-selection process. Secondly, we have identified a literature centred on the concept of national systems (Lundvall, 1992; Freeman, 1987; Nelson 1992 and Edquist, 1997), sectorial system (Malerba, 2002) and local system of innovation (Boschma and Martin, 2011; Antonelli, 2011). According to these authors, the elements that block the virtuous-functioning of the system and lead to a low innovative performance are targets for policy maker. Hence, industrial and technological policies should be focused on: i) enhancing agents’ capabilities and ii) improve their interactions. Thirdly, we have identified a literature integrated by contributions from evolutionary authors interested on the role of demand and cumulative causation process (Dosi, 2014; Saviotti y Pyka, 2002; Antonelli, 2011). This contributions are complemented and extended by others contributions that comes from neo-Structuralist and post-Keynesianism framework (Cimoli, Dosi, Stiglitz, 2009; Cimoli y Porcile, 2011, 2013) and authors inscribed in both theoretical traditions (Lee, 2013; Dosi, 2014). This evolutionary approach is focused on the divergence between economies and considers that gap’s reduction requires policies aimed at promote the generation of non-related variety with the production structure (Saviotti y Pika, 2002). In this context, the main objective of this paper is to discuss the prescriptions of industrial and technological policy that can be derived from this broad group of heterodox authors; and taking into account the specificities of developing countries stressed by Arocena and Sutz (2000, 2002 y 2003), Dutrenit, Rodriguez and Vera-Cruz (2006) and Cassiolato and Lastres (2009), among others. The combination of the three evolutionary streams is the path that industrial and technological policy should follow in developing economies and especially in Latin America. So, incorporating a concern for the divergence and the need for instruments that strengthen both the coevolution between related and unrelated variety and the dynamic of micro, meso and macro dimensions are keys. These instruments would be enhanced even more if population competition and innovation systems approaches are considered. This requires i ) to consider in which scheme of population competition the generation of variety emerge, ii) to develop firm´s capacities, and iii ) to design tools to improve the selection conditions These related and unrelated variety processes have a sectorial and regional general affiliation. Therefore, the contribution of the literature of local and sectorial innovation systems is important to understand existing blockades to generate positive feedbacks and increasing returns. Finally, the national innovation system approach can add elements of policy focused on both the necessary institutions for generating unrelated variety processes in the interactions between institutions and firms, and the need to identify the blockages that impede the process of building capacities.
    Keywords: Innovation Policy, Evolutionary Theory
    JEL: O25 O30
    Date: 2014–05–29
  24. By: Hemous, David
    Abstract: This paper builds a two-country (North, South), two-sector (polluting, nonpolluting) trade model with directed technical change, examining whether unilateral environmental policies can ensure sustainable growth. The polluting good is produced with a clean and a dirty input. I show that a temporary Northern policy combining clean research subsidies and a trade tax can ensure sustainable growth but Northern carbon taxes alone cannot. Trade and directed technical change accelerate environmental degradation either under laissez-faire or if the North implements carbon taxes, yet both help reduce environmental degradation under the appropriate unilateral policy. I characterize the optimal unilateral policy analytically and numerically using calibrated simulations.
    Keywords: climate change; directed technical change; environment; innovation; trade; unilateral policy
    JEL: F18 F42 F43 O32 O33 O41 Q54 Q55
    Date: 2013–11
  25. By: Jonathan Bainée (UEA - Unité d'Économie Appliquée - ENSTA ParisTech, CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)
    Abstract: Entrepreneurship and, thus, small- and middlesized firms (SMEs) have had a growing interest for the past two decades, from the academic world as well as from public authorities. This interest is part of many economic changes. In particular, technological change and the increasing incidence of innovation in most developed countries have reduced the importance of the size of the companies in the industry and favored the development of entrepreneurial activities. In addition, globalization would have dragged the comparative advantages of North American and European countries toward knowledge-based activities, while the "knowledge-based economy" would be relatively more conducive to entrepreneurship and to SMEs. The issues in terms of ability to manage the creation, transition, and business development are primordial, both in their qualitative and quantitative dimension. It is in this context, conducive to new needs of knowledge, that emerge entrepreneurship teachings designed to inspire and enable individuals to start and to grow entrepreneurial ventures. They can be addressed in two steps. First, a historical approach will show how teachings in entrepreneurship have evolved in their implementation based on a double dynamic of empowerment and "complication" of training programs in entrepreneurship, which seems structured around the controversy over the ability to learn to undertake business or initiate the risk culture. Second, practical teaching methods of entrepreneurship will be analyzed, making sure to highlight the multifaceted reality of innovative approaches and actions through an international benchmark conducted by the PIMREP (ParisTech Innovation Management Research and Education Program) network (PIMREP 2010, 2011)
    Keywords: Entrepreneuriat ; management de l'innovation ; enseignements ; Eco-système
    Date: 2013–04–15
  26. By: Pai-Ling Yin; Jason P. Davis (INSEAD); Yulia Muzyrua (University of Michigan)
    Abstract: The mobile applications (apps) industry has exhibited rapid entry and growth in the midst of a recession. Using unique data from the iPhone application ecosystem, we examine how the development of “killer apps” (apps appearing in the top grossing rank) varies by market and app characteristics. We find that previous app experience and no updating increase the likelihood of becoming a killer game app, while more updates increase the likelihood of becoming a non-game killer app. Development opportunities, level of competition, and demand preferences are possible drivers of the opposing innovation process results in game and non-game markets.
    Keywords: Keywords:
    Date: 2014–04

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