nep-ino New Economics Papers
on Innovation
Issue of 2014‒09‒29
ten papers chosen by
Steffen Lippert
University of Auckland

  1. Optimal patent breadth in a horizontal innovation growth model By Reinan Ribeiro; David Turchick
  2. Innovation on the seed market : the role of IPRs and commercialisation rules By Adrien Hervouet; Marc Baudry
  3. Science, Innovation and National Growth By Thomas Brenner
  4. Flying the nest: How the home department shapes researchers’ career paths. By Hottenrott, Hanna; Lawson, Cornelia
  5. Heterogeneous policies, heterogenous technologies : the case of renewable energy By Francesco Nicolli; Francesco Vona
  6. R&D Spillovers on a Salop Circle By Fabio Lamantia; Mario Pezzino
  7. Understanding Society Innovation Panel Wave 6: results from methodological experiments By Allum, Nick; Auspurg, Katrin; Blake, Margaret; Booker, Cara L.; Crossley, Thomas F.; d'Ardenne, Joanna; Fairbrother, Malcolm; Iacovou, Maria; Jäckle, Annette; Kaminska, Olena; Lynn, Peter; Nicoletti, Cheti; Oldfield, Zoe; Pudney, Stephen; Schnettler, Sebastian; Uhrig, S.C. Noah; Winter, Joachim
  8. Dynamic effects of anticipated and temporary tax changes in a R&D-based growth model By Kizuku Takao
  9. Cultural diversity at the top: Does it increase innovation and firm performance? By Nikos Bozionelos; Thomas Hoyland
  10. The productivity of French Technology Transfer Offices after government reforms By Claudia Curi; Cinzia Daraio; Patrick Llerena

  1. By: Reinan Ribeiro; David Turchick
    Abstract: Patenting and licensing are introduced into the lab-equipment horizontal innovation model of endogenous growth. Patent length is not deterministic, in that patent holders' market power will collapse if and only if their patented goods get successfully imitated. The model is solved in an exact fashion. Consideration of static and dynamic inefficiencies shows that optimal intellectual property rights protection entails maximal patent length, but nonmaximal patent breadth. By fixing a lower patent breadth level, government is able to trade off a modest negative long-term effect on growth for a substantial positive short-term effect on consumption. A third potential source of inefficiency, reputational, is also considered.
    Keywords: intellectual property rights; horizontal innovation; lab-equipment model; growth; patent length; patent breadth.
    JEL: L13 O31 O34 O41
    Date: 2014–09–08
  2. By: Adrien Hervouet (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Université de Nantes : EA4272); Marc Baudry (EconomiX - CNRS : UMR7166 - Université Paris X - Paris Ouest Nanterre La Défense)
    Abstract: This article deals with the impact of legislation in the seed sector on incentives for variety creation. The first category of rules consists in intellectual property rights and is intended to address a problem of sequential innovation and R&D investments. The second category concerns commercial rules that are intended to correct a problem of adverse selection. We propose a dynamic model of market equilibrium with vertical product differentiation that enables us to take into account the economic consequences of imposing either Plant Breeders' Rights (PBRs) or patents as IPRs and either compulsory registration or minimum standards as commercialisation rules. The main result is that the combination of minimum standards and PBRs (patents) provides higher incentives for sequential and initial innovation and may be preferred by a public regulator when sunk investment costs are low (high) and the probability of R&D success is sufficiently high (low).
    Keywords: Intellectual Property Rights; Plant Breeders' Rights; Catalogue; Product differentiation; Seed market; Biodiversity
    Date: 2014–09–03
  3. By: Thomas Brenner (Economic Geography and Location Research, Philipps-University, Marburg)
    Abstract: This paper studies the effects of public research (publications) and innovation output (patents) on national economic growth with the help of a GMM panel regression including 114 countries. Effects on productivity growth and capital and labor inputs are distinguished. Furthermore, different time lags are examined for the various analyzed effects and two time periods as well as less and more developed countries are studied separately. The results confirm the effect of innovation output on productivity for more developed countries. Simultaneously, innovation output is found to have negative impacts on capital and labor inputs, while public research is found to have positive impacts on labor inputs.
    Keywords: national growth, innovation, public research, growth
    JEL: O11 O31 E10 C23
    Date: 2014–09–14
  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: Francesco Nicolli (Università di Ferrara); Francesco Vona (OFCE Sciences Po, Skema Business School)
    Abstract: This paper investigates empirically the effect of market regulation and renewable energy policies on innovation activity in different renewable energy technologies. For the EU countries and the years 1980 to 2007, we built a unique dataset containing information on patent production in eight different technologies, proxies of market regulation and technology-specific renewable energy policies. Our main findings show that lowering entry barriers is a more significant driver of renewable energy innovation than privatisation and unbundling, but its effect varies across technologies, being stronger in technologies characterised by the potential entry of small, independent power producers. Additionally, the inducement effect of renewable energy policies is heterogeneous and more pronounced for wind, which is the only technology that is mature and has high technological potential. Finally, the ratification of the Kyoto protocol – determining a more stable and less uncertain policy framework - amplifies the inducement effect of both energy policy and market liberalisation.
    Date: 2014–07
  6. By: Fabio Lamantia; Mario Pezzino
    Date: 2014
  7. By: Allum, Nick; Auspurg, Katrin; Blake, Margaret; Booker, Cara L.; Crossley, Thomas F.; d'Ardenne, Joanna; Fairbrother, Malcolm; Iacovou, Maria; Jäckle, Annette; Kaminska, Olena; Lynn, Peter; Nicoletti, Cheti; Oldfield, Zoe; Pudney, Stephen; Schnettler, Sebastian; Uhrig, S.C. Noah; Winter, Joachim
    Abstract: This paper presents some preliminary findings from Wave 6 of the Innovation Panel (IP6) of Understanding Society: The UK Household Longitudinal Study. Understanding Society is a major panel survey in the UK. In March 2013, the sixth wave of the Innovation Panel went into the field. IP6 used a mixed-mode design, using on-line interviews and face-to-face interviews. This paper describes the design of IP6, the experiments carried and the preliminary findings from early analysis of the data.
    Date: 2014–07–16
  8. By: Kizuku Takao
    Abstract: Tax changes are often announced before their implementation and are not permanent, but rather only temporary. Accordingly, R&D firms will optimally adjust their investment decisions to fit tax schedule changes. This study analyzes how changes in various tax rates relevant to corporate activities affect growth and welfare, considering their methods of implementation. For this purpose, we consider adjustment costs involved in the investment process and allow firms to make a forward looking investment decision in a R&D-based endogenous growth model. Calibrating the model with U.S. data, we find that a dividend tax cut reduces the level of welfare irrespective of implementation method. On the other hand, a capital gains tax cut and a rise in the R&D tax credit rate enhance the level of welfare irrespective of implementation. However, the announcement of these tax changes prior to implementation reduces their effectiveness.
    Date: 2014–08
  9. By: Nikos Bozionelos (Audencia Recherche - Audencia); Thomas Hoyland (HUBS - Hull University Business School - Hull University)
    Abstract: The article focuses on cultural diversity and whether it has economic value. Though it is undisputed that cultural diversity within a country increases entrepreneurial behaviour the question that remains is whether this heightened entrepreneurial activity results in greater economic achievements. The article reports on a study that was carried out within the London area that presented an ideal setting given that London is a "super-diverse" city with intense economic activity. The results showed that ethnic diversity in the team of owners and partners of firms was indeed associated with greater innovativeness. This was in line with the view that diversity brings a variety of perspectives, skills and ways of thinking that in turn are translated into greater novelty in products or services and ways of performing tasks. On the other hand, however, ethnic diversity at the top did not translate into success at bringing innovations to the market, neither to revenue growth. Neither did the idea that diversity would be especially beneficial for innovation in knowledge-intensive industries find support. Finally, the data suggested that immigrants become entrepreneurs by choice rather than due to lack of better alternatives. The findings of the study raise the serious question of why the greater innovativeness that diversity brings does not generally translate into market and economic success, which opens new avenues for future research.
    Keywords: Diversity; Super-diversity; Global cities; Innovativeness; Market success; Economic success; Discrimination; Financial institutions
    Date: 2014–05–01
  10. By: Claudia Curi (Free University of Bolzano - Bozen, School of Economics and Management); Cinzia Daraio (University of Rome “La Sapienza”); Patrick Llerena (University of Strasbourg, BETA (Bureau d'Economie Théorique et Appliquée) and Observatoire des Sciences et Techniques (OST, Paris))
    Abstract: This paper assesses the productivity change of the French Technology Transfer Offices (TTOs) after the introduction of the July 1999 Innovation Law and the New Public Management Oriented Reform. By using Data Envelopment Analysis (DEA)-based Malmquist Productivity Index, we find an average increase in the short-term productivity of the French TTOs driven by both positive efficiency and technology change. The bootstrap analysis reveals that these improvements are ascribed to 50% of the TTOs system, while the remaining part does not show significant changes. Moreover, while older TTOs positively contribute to the performance of French TTOs in the short run, young TTOs with hospital seems to contribute negatively to the efficiency of the entire system.
    Keywords: Technology Transfer Offices (TTOs), French University System, Malmquist Productivity Index, Data Envelopment Analysis (DEA), Bootstrap
    JEL: C14 D24 I29 O32
    Date: 2014–09

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