nep-ino New Economics Papers
on Innovation
Issue of 2014‒09‒25
eleven papers chosen by
Steffen Lippert
University of Auckland

  1. Optimal Sharing Strategies in Dynamic By Nisvan Erkal "; " Deborah Minehart
  2. Do specialists exit the firm outsourcing its R&D? By Wenjing Wang
  3. A territorial approach to R&D subsidies: Empirical evidence for Catalonian firms By Agustí Segarra; Mercedes Teruel; Miquel Angel Bove
  4. Flying the nest: How the home department shapes researchers’ career paths. By Hottenrott, Hanna; Lawson, Cornelia
  5. Local Knowledge Spillovers from International Science and Technology Cooperation: Evidence from EU-Tunisian Framwork Program Cooperation By Juliane Brach; Hatem M’henni
  6. Les Déterminants de la Productivité des Inventeurs : Une Analyse en Termes de Diversité et de Cohérence de la Base de Connaissances By Riad Jawel Bouklia-Hassane
  7. Le système des brevets: idées reçues et critiques By David Encaoua; Thierry Madiès
  8. Managerial Capital and Business R&D as Enablers of Productivity Convergence By Dan Andrews; Ben Westmore
  9. Abatement Technology Search By Alain-Désiré Nimubona; Andrew Leach
  10. Running with the Red Queen: An integrated assessment of Agricultural Land Expansion and Global Biodiversity Decline By Bruno Lanz; Timothy Swanson; Simon Dietz
  11. Instability and network effects in innovative markets By Paolo Sgrignoli; Elena Agliari; Raffaella Burioni; Augusto Schianchi

  1. By: Nisvan Erkal "; " Deborah Minehart
    Abstract: A question central to R&D policy making is the impact of competition on cooperation. This paper builds a theoretical foundation for the dynamics of knowledge sharing in private industry. We model an uncertain research process and ask how the incentives to license intermediate steps to rivals change over time as the research project approaches maturity. Such a dynamic approach allows us to analyze the interaction between how close the ?rms are to product market competition and how intense that competition is. We uncover a basic dynamic of sharing such that ?rms are less likely to share as they approach the product market. This dynamic is driven by a trade-o¤ between three e¤ects: the rivalry e¤ect, the duplication e¤ect and the speed e¤ect. We show that this dynamic can be reversed when duopoly pro?ts are su¢ ciently low. We also explore the implications of the model for patent policy and R&D subsidies, and discuss under what circumstances such policies should be directed towards early vs. later stage research.
    Keywords: Multi-stage R&D; innovation; knowledge sharing; licensing; dynamic games; patent
    Date: 2013
  2. By: Wenjing Wang (Department of Economics and Business, Aarhus University, Denmark)
    Abstract: Do specialists exit the firm increasingly outsourcing its research and development (R&D) work? Although this question is critical in understanding how R&D outsourcing links to innovation performance, the answer is not yet clear. This paper proposes that the optimal level of firm’s internal employment of R&D specialists decreases with the deepening of R&D outsourcing but increases with the broadening of R&D outsourcing. These relations can be inferred from previous empirical studies as well as our theoretical analysis, and are supported by the empirical evidence from estimations of correlated random effects (CRE) Tobit, CRE selection and CRE fractional response models on a panel dataset of Danish firms.
    Keywords: Correlated random effect models, employment of R&D specialists, R&D strategy, R&D outsourcing breadth and depth
    JEL: J21 M51 O32
    Date: 2014–09–03
  3. By: Agustí Segarra (Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili); Mercedes Teruel (Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili); Miquel Angel Bove (Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili)
    Abstract: Using a database of 2,263 responses to R&D public calls in Catalonia, during the period 2007–2010, this paper proceeds to analyse the potential interaction of the territorial and policy dimensions with the propensity to apply for, and be awarded, a public R&D subsidy. Controlling for characteristics at the firm and project level, we estimate models using a twostep procedure. In the first step, our results suggest that large firms which export and which belong to high-tech manufactures are more likely to participate in a public R&D call. Furthermore, both urban location and past experience of such calls have a positive effect. Our territorial proxy of information spillovers shows a positive sign, but this is only significant at intra-industry level. Membership of one of the sectors prioritized by the Catalan government, perhaps surprisingly, does not have a significant impact. In the second step, our results show that cooperative projects, SMEs or old firms shows a positive effect on the probability of obtaining a public subsidy. Finally, the cluster policy does not show a clear relationship with the public R&D call, suggesting that cluster policies and R&D subsidies follow different goals. Our results are in line with previous results in the literature, but they highlight the unequal territorial distribution of the firms which apply and the fact that policymakers should interlink the decision criteria for their public call with other policies.
    Keywords: Evaluation, R&D policies, territorial approach, clusters
    JEL: L53 L25 O38
    Date: 2014–09
  4. By: Hottenrott, Hanna; Lawson, Cornelia (University of Turin)
    Abstract: Academic researchers face mobility related decisions throughout their careers. We study the importance of team and organisational characteristics of the home departments for career choices of departing researchers in the fields of science and engineering at higher education institutions in Germany. We find that the organisational environments–the nests–shape career paths. Research funding, research performance in terms of patents and publications as well as the industry ties of department heads shape job choices. In particular, public research grants increase the probability that departing researchers take a research job at a university or public research centre, while grants from industry increase the likelihood that they take a job in industry. Publication performance of the department head relates to R&D jobs in public, but not in industry and patents predict the probability that departing researchers will move to small and medium-sized firms. For these firms seeking technological knowledge from former university employees may be particularly crucial. Academic start-ups are more likely to be a job destination for departing researchers from technical universities, from departments with higher publication output and with a research focus on experimental development.
    Date: 2014–07
  5. By: Juliane Brach (Research Fellow at Maastricht School of Management and CEO at The Knowledge Company, Germany, E-Mail:; Hatem M’henni (Professor at University of Manouba, Tunisia, E-Mail:
    Abstract: This paper provides and in depth analyses of EU-Tunisian science and technology cooperation. Combining state-of-the-art theoretical background on research and innovation with profound knowledge of the Tunisian research and innovation system. We are discussing the rational of EU-TUN science and technology cooperation and the potential benefits and spillovers for Tunisia. Drawing on a unique data set from a 2012 survey among 137 Tunisian researchers and detailed data on Tunisian participation in the latest two framework programs, we can empirically test the role and materialization of such benefits for the case of EU-TUN science and technology cooperation. We apply both descriptive as well as initial econometric testing and provide policy recommendations at the political as well as at the level of the researcher/research institution.
    Date: 2014–08
  6. By: Riad Jawel Bouklia-Hassane (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon - Université Jean Monnet - Saint-Etienne - Université Claude Bernard - Lyon I (UCBL))
    Abstract: Bien que la créativité humaine soit au coeur du processus d'innovation, peu d'attention a été accordée à la dimension individuelle dans l'analyse de l'activité d'innovation. L'objet de ce travail est d'étudier les déterminants de la productivité des inventeurs individuels. Contrairement à d'autres études, notre hypothèse est que le stock de connaissances de l'inventeur n'est pas homogène. Aussi, nous élaborons un modèle qui 'augmente' les spécifications traditionnelles par l'introduction des facteurs de diversité d'une part et de cohérence d'autre part de la base de connaissances des inventeurs. Les résultats des estimations économétriques réalisées sur les données de brevets des inventeurs français et britanniques valident l'hypothèse d'une influence positive de ces deux facteurs sur la productivité des inventeurs individuels. Ils mettent également en évidence la présence d'un effet indirect de la cohérence sur la productivité de l'inventeur : plus la cohérence de la base de connaissances de l'inventeur est grande et plus l'impact de la diversification technologique sur sa productivité est élevé.
    Keywords: inventeurs prolifiques; brevets, diversification technologique; cohérence des connaissances; capacité d'innovation; système national d'innovation
    Date: 2014
  7. By: David Encaoua (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Thierry Madiès (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes 1 - Université de Caen Basse-Normandie)
    Abstract: Cet article propose une réflexion générale sur le système des brevets. Trois questions sont d'abord examinées: 1. Le brevet favorise-t-il l'innovation? 2. La propriété intellectuelle est-elle comparable aux autres formes de propriété? 3. La protection par le brevet est-elle complémentaire de la concurrence? Deux critiques fondamentales sont ensuite adressées: 1. L'attribution abusive d'un brevet à des nombreuses demandes ne satisfaisant pas les critères de brevetabilité, ce qui pose la question de la qualité des brevets. 2. L'incompatibilité du système unique des brevets à la diversité technologique et l'innovation cumulative, ce qui entraîne un coût excessif d'implémentation.
    Keywords: droit de propriété, qualité du brevet, mécanisme d'incitation, implémentation, innovation,
    Date: 2012–11
  8. By: Dan Andrews; Ben Westmore
    Abstract: This paper explores the role of managerial capital and business research and development (R&D) in fostering multifactor productivity (MFP) convergence in a panel of 42 countries. The OECD long-term growth model is augmented to show that, in addition to trade openness, an economy’s speed of convergence to its long-run steady state level of MFP is an increasing function of the quality of its managerial capital and the size of its domestic R&D sector. The economic importance of these two enabling factors are examined in the context of a scenario, whereby MFP growth at the technological frontier is ½ percentage point higher (than in the baseline projection) per annum until 2060. This exercise shows that some countries benefit significantly more from higher frontier growth than could be expected based on their trade openness alone. In turn, evidence on the policy determinants of managerial capital and business R&D is reviewed, which highlights the importance of structural reforms and carefully-designed innovation policies. Capital managérial et R-D des entreprises, moteurs de la convergence de la productivité Ce document analyse le rôle que jouent le capital managérial et les activités de recherche et de développement (R-D) menées par les entreprises pour renforcer la convergence de la productivité multifactorielle (PMF) dans un groupe de 42 pays. Le modèle de croissance à long terme de l’OCDE est élargi pour montrer que, outre l’ouverture aux échanges, la vitesse de convergence d’une économie vers son niveau de stabilité de la PMF à long terme est une fonction croissante de la qualité de son capital managérial et de la taille de son secteur national de la R-D. L’importance économique de ces deux facteurs déterminants est examinée dans le contexte d’un scénario dans lequel la croissance de la PMF à la frontière technologique est supérieure de ½ point de pourcentage (à celle retenue dans la projection de référence) par an jusqu’en 2060. Cet exercice montre que certains pays qui ont atteint la frontière bénéficient d’une croissance beaucoup plus forte que ce à quoi on pourrait s’attendre en se basant uniquement sur leur ouverture aux échanges. Cette étude examine ensuite les éléments de l’action publique qui déterminent le capital managérial et la R-D des entreprises, révélant l’importance des réformes structurelles et de politiques soigneusement conçues en faveur de l’innovation.
    Keywords: productivity, R&D, management, long run growth, conditional convergence, management, productivité, R-D, croissance à long terme, convergence conditionnelle
    JEL: L20 O11 O30 O43 O47
    Date: 2014–09–05
  9. By: Alain-Désiré Nimubona (Department of Economics, University of Waterloo); Andrew Leach (Alberta School of Business, University of Alberta)
    Abstract: We develop a three-stage model of abatement technology search, adoption, and deployment. Using this model, which draws on search theory tools more frequently used in labour and monetary economics, we compare market-based and command-and-control pollution control instruments with respect to the incentives each provides for abatement technology search and adoption, expected emissions reductions, and expected compliance costs. We show that the polluting firm always has more incentives to search for and adopt a more ecient abatement technology under either an emissions tax or a tradeable permit system than under an equivalently stringent emissions standard. We also show that while expected incentives for innovation are comparable under emissions taxes and tradeable permit regimes, the likelihood for total future compliance costs to be reduced after an increase in the stringency of environmental policy - the so-called Porter hypothesis - is higher with a tradeable permit regime.
    JEL: Q55 Q58 H23 D83
    Date: 2014–08
  10. By: Bruno Lanz; Timothy Swanson; Simon Dietz (Centre for International Environmental Studies, IHEID, The Graduate Institute of International and Development Studies, Geneva)
    Abstract: Modern agriculture relies on a small number of highly productive crops and the continued expansion of agricultural land area has led to a significant loss of biodiversity. In this paper we consider the macroeconomic consequences of a continued expansion of modern agriculture from the perspective of agricultural productivity and food production: as the genetic material supporting agriculture declines, pests and pathogens become more likely to adapt to crops and proliferate, increasing crop losses due to biological hazards. To evaluate the macroeconomic consequences of a reduction in agricultural productivity associated with the expansion of agriculture, we employ a quantitative, structurally estimated model of the global economy in which economic growth, population and food demand, agricultural innovations, and the process of land conversion are jointly determined. We show that even a small impact of global biodiversity on agricultural productivity calls for both a halt in agricultural land conversion and increased agricultural R&D in order to maintain food production associated with population and income growth.
    Keywords: Global biodiversity; Agricultural productivity; Endogenous innovations; Land conversion; Population dynamics; Food security; Quantitative growth model
    JEL: N10 N50 O31 O44 Q15 Q16 Q57
  11. By: Paolo Sgrignoli; Elena Agliari; Raffaella Burioni; Augusto Schianchi
    Abstract: We consider a network of interacting agents and we model the process of choice on the adoption of a given innovative product by means of statistical-mechanics tools. The modelization allows us to focus on the effects of direct interactions among agents in establishing the success or failure of the product itself. Mimicking real systems, the whole population is divided into two sub-communities called, respectively, Innovators and Followers, where the former are assumed to display more influence power. We study in detail and via numerical simulations on a random graph two different scenarios: no-feedback interaction, where innovators are cohesive and not sensitively affected by the remaining population, and feedback interaction, where the influence of followers on innovators is non negligible. The outcomes are markedly different: in the former case, which corresponds to the creation of a niche in the market, Innovators are able to drive and polarize the whole market. In the latter case the behavior of the market cannot be definitely predicted and become unstable. In both cases we highlight the emergence of collective phenomena and we show how the final outcome, in terms of the number of buyers, is affected by the concentration of innovators and by the interaction strengths among agents.
    Date: 2014–09

This nep-ino issue is ©2014 by Steffen Lippert. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.