nep-ino New Economics Papers
on Innovation
Issue of 2014‒06‒14
sixteen papers chosen by
Steffen Lippert
University of Otago, Dunedin

  1. Beyond product innovation; improving innovation policy support for SMEs in traditional industries By Wintjes R.J.M.; Douglas D.; Fairburn J.; Hollanders H.J.G.M.; Pugh G.
  2. The impact of innovation support programmes on SME innovation in traditional manufacturing industries: an evaluation for seven EU regions By Radicic D.; Pugh G.; Hollanders H.J.G.M.; Wintjes R.J.M.
  3. Market Outcomes and Dynamic Patent Buyouts By Alberto Galasso; Matthew Mitchell; Gabor Virag
  4. Efficiency of Research and Innovation Systems for Economic Growth and Employment By Edquist, Charles
  5. Relatedness in eco-technological development in European regions By Martijn van den Berge; Anet Weterings
  6. Using design theory to characterize various forms of breakthrough R&D projects and their management: revisiting Manhattan & Polaris. By Sylvain Lenfle; Pascal Le Masson; Benoît Weil
  7. Knowledge, innovation and space By Karlsson, Charlie; Johansson, Börje; Kobayashi, Kiyoshi; Stough, Roger R.
  8. The structure and comparative advantages of China's scientific research: Quantitative and qualitative perspectives By Wang L.
  9. The effect of foreign and domestic patents on total factor productivity during the second half of the 20th century By Antonio Cubel; Vicente Esteve; Maria Teresa Sanchis; Juan A. Sanchis-Llopis
  10. The Return to R&D and Seller-buyer Interactions: A Quantile Regression Approach By Westerberg, Hans Seerar
  11. How the policy mix and its consistency im-pact innovation: Findings from company case studies on offshore wind in Germany By Reichardt, Kristin; Rogge, Karoline
  12. InnovationCity Ruhr: A prime example for social and technological innovation By Adrian Götting
  13. Morphogénèse d'un dispositif institutionnel d'accompagnement de l'innovation dans les PME impliquant un tandem étudiant/chercheur By Olivier Coussi; Anne Krupicka
  14. The Role of Government Institutions for Smart Specialisation and Regional Development By Andres RODRIGUEZ-POSE; Marco DI CATALDO; Alessandro RAINOLDI
  15. Invention in energy technologies: Comparing energy efficiency and renewable energy inventions at the firm level By Rexhäuser, Sascha; Löschel, Andreas
  16. The political economy of research and innovation in organic photovoltaics (OPV) in different world regions By Turkeli S.; Kemp R.P.M.

  1. By: Wintjes R.J.M.; Douglas D.; Fairburn J.; Hollanders H.J.G.M.; Pugh G. (UNU-MERIT)
    Abstract: Innovation support measures in the EU are mostly designed to support product innovation in RD intensive sectors. To increase the still considerable contribution to regional employment and competitiveness from SMEs in traditional manufacturing industries a broader innovation policy mix is more appropriate. This paper draws data from a survey of more than 300 SMEs from seven regions within the European Union, as well as case studies, to address the question How can innovation policy interventions be improved to support SMEs in traditional manufacturing industries more effectively We claim that innovation support should be sensitive to the way SMEs in traditional manufacturing sectors innovate and grow. We find that product innovation and support used for product innovation is less likely to generate growth, than support used for process innovation. Also support used for marketing innovations and organizational innovations are of particular importance - together with internationalization, design and cooperation. The increasingly selective application procedures applied are not the most efficient to generate impact, since those who are supported and those who are supported more frequently, are the ones who are most likely to take the same innovative steps anyhow, irrespective of policy support.Keywords Innovation, SMEs, traditional sectors, low-tech, policy evaluation, manufacturing, process innovation
    Keywords: Search; Learning; Information and Knowledge; Communication; Belief; Industry Studies: Manufacturing: General; Industrialization; Manufacturing and Service Industries; Choice of Technology; Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Choices and Consequences; Diffusion Processes; Technological Change: Government Policy;
    JEL: O38 O33 D83 L60 O14 O31 O32 O33
    Date: 2014
  2. By: Radicic D.; Pugh G.; Hollanders H.J.G.M.; Wintjes R.J.M. (UNU-MERIT)
    Abstract: This study investigates the impact of innovation support programmes on SME innovation in traditional manufacturing industries in seven EU regions. Recent literature identifying sources of potential government failure in innovation policy suggests that the effects of public support measures to increase private innovation may be disappointing. Our results are consistent with this hypothesis, yet also suggest a direction for policy reform to overcome government failure and, thereby, to increase the potential additionality of innovation support programmes. Innovation support programmes in the EU typically adopt a cream skimming selection strategy namely, programme managers systematically select firms on the basis of observable characteristics conducive to innovation. The econometric analysis of a new survey database reported in this paper suggests that cream skimming leads to firms being selected for programme participation that benefit less than would randomly selected firms. The policy corollary is that, subject to due diligence checking, allocation of innovation support by lottery should give rise to greater programme additionality than does the prevalent cream skimming approach. We conclude with some practical guidelines for allocation by lottery, which were developed for a recently launched innovation support programme for SMEs. Key words innovation; SMEs; traditional manufacturing industry; public innovation support; government failure; evaluation
    Keywords: Semiparametric and Nonparametric Methods: General; Multiple or Simultaneous Equation Models: Truncated and Censored Models; Switching Regression Models; Management of Technological Innovation and R&D; Technological Change: Government Policy;
    JEL: O32 O38 C14 C34
    Date: 2014
  3. By: Alberto Galasso; Matthew Mitchell; Gabor Virag
    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 develop a model 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 in our model 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 in our model.
    JEL: O30 O34
    Date: 2014–06
  4. By: Edquist, Charles (CIRCLE, Lund University)
    Abstract: The concept of a holistic innovation policy is defined in this paper, and it is discussed what it is, why it is relevant and how it can be implemented. One of the main conclusions is that the innovation policies in European countries are still linear (and not holistic), in spite of the fact that the linear view has been completely abandoned by innovation researchers – and replaced by a systemic view on innovation processes. Why innovation policy is still linear is also discussed. Further it is noted that a considerable number of EU Member States have created public organizations (Councils) for innovation and/or research policy placed above ministries and usually chaired by the Prime Minister. The role and character of these bodies is discussed. The empirical results are based on a questionnaire sent to 23 EU Member States, out of which 19 (83%) responded. The work with this report was carried out for the European Research and Innovation Area Committee (ERAC) of the European Commission (DG RTD).
    Keywords: Innovation; Innovation Policy; Holistic innovation policy; Research policy; The linear view; Systems of innovation
    JEL: L38 M38 O25 O31 O32 O33
    Date: 2014–06–02
  5. By: Martijn van den Berge; Anet Weterings
    Abstract: Within the smart specialisation programme, the European Commission urges regional policy-makers to assess their regional innovation potential and consider investing in the areas of eco-technologies taking into account the regions’ specific strengths and weaknesses. In evolutionary economic geography, several studies have shown that regional innovation is a path dependent process whereby new technologies develop out of the existing regional knowledge base. In this paper, we examine to what extent this is also the case for eco-innovation; if so, the existing technological structure of a region would be an important source of information for regional policymakers with respect to designing their eco-innovation policy agenda. Our results show that in EU-regions both the probability of developing eco-innovations and the number of patents in this field depends on the patents that have been developed in related fields in the region in prior years.
    Keywords: relatedness, technology space, regional branching, eco-technologies, EU
    JEL: C23 R11 Q55
    Date: 2014–06
  6. By: Sylvain Lenfle (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS : UMR7176); Pascal Le Masson (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Benoît Weil (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: In this paper we propose to revisit two emblematic projects, Manhattan and Polaris, with the models developed by design theory. In particular we demonstrate, relying on recent advances in design theory, how these major projects, traditionally presented as radical innovations, are in fact quite different. We show that this explains the different managerial strategies of this two cases : whereas Polaris focuses on the control of the design process, Manhattan exhibit a very original strategy, characterized by the simultaneous exploration of different solutions, to manage unforeseeable uncertainties. We therefore hope to demonstrate the fruitfulness of the dialogue between design theory and project management.
    Keywords: Design theory, project management, innovation
    Date: 2014–06–04
  7. By: Karlsson, Charlie (CESIS, Jönköping International Business School); Johansson, Börje (CESIS, Jönköping International Business School); Kobayashi, Kiyoshi (Kyoto University); Stough, Roger R. (George Mason University)
    Abstract: This paper provides an overview of relevant topics in contemporary research concerned with global, national, regional and local knowledge and innovation dynamics. In particular, we highlight how the global scene is changing in the contemporary world economy that we char-acterize as a knowledge economy. We show how knowledge and knowledge dynamics is driving innovation in the large urban agglomerations in the old and in new industrialized countries with their concentrations of abilities and resources and their superior intra-regional and international geographical proximities. In relation to the large urban agglomerations we stress the role of (i) density and proximity externalities, (ii) the physical and cultural resource base of large cities, and (iii) the interactive dynamics related to learning and creativity.
    Keywords: Knowledge; innovation; space; agglomeration; proximity; learning; creativity; social networks
    JEL: O30 R11
    Date: 2014–06–11
  8. By: Wang L. (UNU-MERIT)
    Abstract: In recent decades there has been a sharp increase in Chinas scientific output. Behind its fast growth, little is known about Chinas comparative advantages in different academic disciplines. Meanwhile, despite Chinas rising position now in second place worldwide for research output, its research quality has been long in dispute. Based on citation rates, many studies expressed negative opinions on the quality of Chinas scientific output. This paper argues that citation reflects more social impact than quality. On the other hand, the time lag between being cited and the eventual publication of citing papers masks the real recent situation in developing countries. In particular prior to 2006, almost half of research papers in China were published in Chinese journals, which were not visible or readable to people outside of China. Consequently, it is not surprising that citation rates of Chinese researchers were rather low. Given that the publication structure in China has changed tremendously in recent years, evaluation of the quality of Chinese science needs to be carried out according to the latest research output from China. This paper examines the comparative advantages of each academic discipline as well as their shifts over the years. Focusing on the top 5 per cent journals by each discipline, we evaluate the quality of Chinas scientific output compared to the rest of the world. Different from the criticism stated in previous literature, this paper finds that the quality of Chinas research in terms of publications in top journals is promising. Since 2006 the growth of scientific publications in China has been driven by papers published in English-language journals. The increasing visibility of Chinese science paves the way for its wider recognition and higher citation rates. Keywords Bibliometrics, Scientometric analysis, Revealed comparative advantage, Publications, Scientific output, Publication quality, Citation, High-impact journals
    Keywords: Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Choices and Consequences; Diffusion Processes; Comparative Studies of Countries;
    JEL: O31 O32 O33 O57
    Date: 2014
  9. By: Antonio Cubel; Vicente Esteve; Maria Teresa Sanchis; Juan A. Sanchis-Llopis
    Abstract: This paper analyses the relationship between total factor productivity (TFP) and innovation-related variables during the second half of the 20th century. We perform this analysis for several European countries (France, Germany, the United Kingdom, and Spain) and the U.S., extending Coe and Helpman’s (1995) empirical specification to include human capital. We use a new dataset of patents data for the past 150 years to calculate the stock of knowledge using the perpetual inventory method. Our time series empirical analysis confirms the heterogeneous relationship between innovation variables (domestic stock of knowledge, imports of knowledge, and human capital) and productivity. Our results reveal the extent to which observed differences in technology adoption patterns and the levels of endowment of such resources can explain differences in TFP dynamics across countries. The estimated coefficients confirm the considerable gap that still exists between the European countries and the U.S. in innovation-related variables. Furthermore, we obtain a finding that may have important implications for innovation policies: the higher the level of investment in human capital, the higher the level of investment in domestic innovation, and the higher the response of TFP to a 1% increase in any of the aforementioned variables.
    Keywords: OECD,international technology diffusion, patents, productivity, cointegration
    Date: 2014–05
  10. By: Westerberg, Hans Seerar (Ratio institute)
    Abstract: In this paper we analyze whether a firm’s return to its R&D stock is affected by seller-buyer interactions. We suggest that firms that are in close contact with their customers will be relatively more sensitive to their customers’ needs, and therefore adjust their R&D activities accordingly. This, in turn, will boost sales and increase the return to R&D. To the extent that seller-buyer interactions are costly, large and productive firms will have an advantage in overcoming such costs. We test these hypotheses using a fixed effects quantile regression framework. Results suggest that large firms active in industries characterized by frequent seller-buyer interactions have a higher return to R&D than other firms.
    Keywords: firm behavior; firm performance; production and organizations; firm size; diversification and scope
    JEL: D22 D29 L25 O32
    Date: 2014–06–09
  11. By: Reichardt, Kristin; Rogge, Karoline
    Abstract: Transforming the energy system to one with a greater importance of renewable power generation technologies requires redirecting and accelerating technological change. In this transition, so-called policy mixes play a crucial role. Yet precisely how policy mixes affect technological innovation remains poorly understood. To remedy this, in this study we choose a qualitative company case study approach to analyze the innovation impact of the elements of a policy mix - its policy strategy and instrument mix - and their consistency. Taking offshore wind in Germany as research case, we find that the German offshore wind policy mix, its consistency and perceived high credibility have been vital innovation drivers. Specifically, its consistent policy strategy and the consistency of the policy strategy with the instrument mix appear crucial to research, development and demonstration. Still, for this emerging technology to be adopted the policy mix seems to require a consistent and comprehensive instrument mix. --
    Keywords: policy mix,policy strategy,instrument mix,consistency,innovation,off-shore wind
    Date: 2014
  12. By: Adrian Götting (IET/CESNOVA, FCT-Universidade Nova de Lisboa and University Duisburg-Essen)
    Abstract: The project “InnovationCity Ruhr” deals with the reconstruction of the city of Bottrop with regard to energy saving measures. The aim is to make the city more environmental friendly in order to create a model for other industrial cities. Until the conclusion of the project in the year 2020, it is planned to change the surface of Bottrop in several positive ways. This paper focuses on the description of the project to give the reader an example of what exactly is done within the scope of InnovationCity Ruhr. Besides that, the link to the subject of sociology shall be given in order to show that the project is a prime example for social innovation.
    Keywords: Innovation, Innovation City, Ruhr, social innovation, model city Bottrop, energy efficiency
    JEL: O32 O38 R58
    Date: 2014–03
  13. By: Olivier Coussi (CEREGE - CEntre de REcherche en GEstion - Université de Poitiers : EA1722 - Institut d'Administration des Entreprises (IAE) - Poitiers); Anne Krupicka (CEREGE - CEntre de REcherche en GEstion - Université de Poitiers : EA1722 - Institut d'Administration des Entreprises (IAE) - Poitiers)
    Abstract: Nous étudions les facteurs qui ont favorisé la création d'un dispositif sociotechnique d'accompagnement de l'innovation au sein des PME d'une région française. Nous examinons les conditions qui ont permis l'émergence d'une telle démarche entrepreneuriale au sein d'une CCI Territoriale, et plus particulièrement les proximités de ressources qui ont façonné le réseau d'acteurs de ce dispositif institutionnel. Celui-ci a été initié par un porteur externe qui, soutenu et contraint par un ensemble de facteurs, a construit un réseau sociotechnique pour l'accompagnement des projets d'innovation associant un étudiant, un chercheur et la PME.
    Keywords: accompagnement de l'innovation des PME ; entreprenariat en secteur public ; théorie de la traduction ; proximités de ressources
    Date: 2014–05–15
  14. By: Andres RODRIGUEZ-POSE (London School of Economics); Marco DI CATALDO (London School of Economics); Alessandro RAINOLDI (European Commission – JRC - IPTS)
    Abstract: Research and innovation strategies for smart specialisation (RIS3) are trying to introduce a new vision of innovation policy in European regions. However, the success of RIS3 policy measures is closely dependent on the capacity of regional government institutions to act as coordinators or facilitators of the interventions. The way in which institutional mechanisms govern innovation processes and provide incentives for the interaction between regional actors remains a largely unexplored area of scientific research. This policy note discusses the importance of sound institutional frameworks for the effectiveness of smart specialisation, presenting an econometric study that investigates the link between government institutions and innovation. The empirical results confirm the key role played by governance structures for technological advances at the regional level, suggesting that the greatest gains in innovative capacity from institutional reforms would be obtained in peripheral territories where the initial level of government quality is lower. This analysis has important implications for the identification of the necessary pre-requisites for successful RIS3 strategies in EU regions.
    Keywords: European cohesion policy, Structural Funds, smart specialisation, Innovation Union, Regional Policy, Institutional Framework, Coordination, Governance Structures
    Date: 2014–03
  15. By: Rexhäuser, Sascha; Löschel, Andreas
    Abstract: Many countries, especially in Europe, have ambitious goals to transform their national energy systems towards renewable energies. Technological change in both renewable production and efficient use of energy can help to make these targets come true. Using a panel of German firms linked to the PATSTAT patent data, we study invention in both types of energy technologies and how their inventors differ in terms of central firm-specific characteristics. More importantly, we study the relation between conventional (i.e. non-energy) invention and energy invention within the firms. The results from dynamic count data models point to a stimulating effect of conventional inventions for energy efficiency technologies but have no effect on inventions in renewable energies. --
    Keywords: innovation,invention,renewable energy,energy efficiency,dynamic count data
    Date: 2014
  16. By: Turkeli S.; Kemp R.P.M. (UNU-MERIT)
    Abstract: Purpose In this paper, we examine the status, prospects and organization of OPV research, innovation and governance in three major world regions Northern America, Western Europe and East Asia through our constructed evolutionary cognitive-institutional framework of reference. Method We gathered data from a 65-question internet-based survey conducted from February 2013 to April 2013 with OPV researchers and research managers around the world. A multi-method investigative/exploratory, descriptive statistics approach is used for analyses and discussions. Results Overall findings show that the organization of OPV research, innovation and governance in Northern America, Western Europe and East Asia reflect similar aspects, patterns with their political economies surveyed in the literature Northern Americas neo-liberal market and finance orientation, Western Europes orientation to sustainable development and policy-driven research, coordinated-regulatory inspirations and research-driven system, and East Asias neo-developmental state view with international trade, technology-export orientation. Commercialization prospects in China are lowest and highest in the US but even there expectations of market sales are low. As a disruptive technology which is competing with older generations of PV and other energy technologies, OPV requires a coordinated effort involving international cooperation, the use of public and private money. Positive elements of the three world regions availability of venture capital in the US, the meritocratic research system and ambitious goals for renewable energy in the EU, and the willingness of the Chinese government to back sunrise industries could be usefully exploited. Keywords Political Economy, Emerging Energy Technology, Research, Innovation, Governance, Organic Photovoltaics
    Keywords: Technological Change: Government Policy; Capitalist Systems: Political Economy; Comparative Analysis of Economic Systems; Environmental Economics: Technological Innovation;
    JEL: P16 P51 O38 Q55
    Date: 2014

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