nep-ino New Economics Papers
on Innovation
Issue of 2014‒10‒03
fourteen papers chosen by
Steffen Lippert
University of Auckland

  1. Innovation and Regional Growth in Mexico: 2000-2010 By Andrés Rodríguez-Pose; Edna MaríaVillarreal Peralta
  2. The structure and dynamics of R and D collaborations in Europe and the USA (A longitudinal and comparative perspective) By Sidonia von Proff; Rafael Lata; Thomas Brenner
  3. Environmental R&D in the Presence of an Eco-Industry By Alain-Désiré Nimubona; Hassan Benchekroun
  4. Top Management Turnover and Corporate Governance in China: effects on innovation performance By Martha Prevezer; Lutao Ning; Yuandi Wang
  5. Innovation and copyright infringement: The Case of Commercial Piracy and End-user Piracy By Dyuti Banerjee; Sougata Poddar
  6. The Contribution of Academic Knowledge to the Value of Industry Inventions: Micro level evidence from patent inventors. By Fassio, Claudio; Geuna, Aldo; Rossi, Federica
  7. Values, Efficacy And Trust As Determinants Of Innovative Organizational Behaviour In Russia By Peter Schmidt; Nadezhda N. Lebedeva
  8. Foreign Rivals are Coming to Town: Responding to the Threat of Foreign Multinational Entry By Cathy Ge Bao; Maggie
  9. Endogenous Growth and Research Activity under Private Information By Oscar Mauricio Valencia
  10. Une stratégie publique en travaux ? Coordinations et performances dans les écosystèmes territoriaux d'innovation By Daniel Fixari; Frédérique Pallez
  11. Synergy cycles in the Norwegian innovation system: The relation between synergy and cycle values By Inga Ivanova; Oivind Strand; Loet Leydesdorff
  12. On the Timing of Climate Agreements By Robert C. Schmidt; Roland Strausz; Melanie;
  13. Food Science and Technology Curricula in Africa: Meeting Africa’s New Challenges By Minnaar, Amanda; Taylor, John R.N.; Haggblade, Steven; Kabasa, John David; Ojijo, Nelson K. O.
  14. The dynamics of technology diffusion and the impacts of climate policy instruments in the decarbonisation of the global electricity sector By Jean-Francois Mercure; Hector Pollitt; Unnada Chewpreecha; Pablo Salas; Aideen M. Foley; Philip B. Holden; Neil R. Edwards

  1. By: Andrés Rodríguez-Pose; Edna MaríaVillarreal Peralta
    Abstract: This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth-enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the Distrito Federal) during the period 2000-2010. The results indicate that regional economic growth across Mexican states stems from direct investment in R&D in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives.
    Keywords: economic growth, innovation, social economic conditions, regional convergence, Mexico
    JEL: R11 R12 O32 O33
    Date: 2014–08
  2. By: Sidonia von Proff (Economic Geography and Location Research, Philipps-University, Marburg); Rafael Lata (Foresight and Policy Development Department, Austrian Institute of Technology (AIT), Vienna); Thomas Brenner (Economic Geography and Location Research, Philipps-University, Marburg)
    Abstract: Today it is generally accepted that innovation, knowledge creation, and the diffusion of new knowledge are crucial factors for economic growth at the regional, national, as well as supra-national level, and that successful innovation is increasingly based on interactions and collaborative research activities between research actors. This study focuses on diverse dimensions of distance shaping R and D collaborations in Europe and the US during the time period 1999 to 2009. We take a comparative perspective by analyzing two different R and D collaboration networks (patents and publications) and two different economic areas, namely Europe and the US, in order to examine differences in collaboration activities. In particular, we investigate how the collaboration intensity between regions has been influenced by spatial, technological, and cultural distance and whether these distances have lost importance over time in the distinct networks. The study adopts a panel spatial interaction modeling perspective. In doing so, we explicitly take account of spatial autocorrelation issues of flows by means of Eigenvector spatial filtering techniques. European coverage is achieved by using 1260 NUTS-3 regions of the 25 pre-2007 EU member-states, as well as Norway and Switzerland. The US coverage is attained by using 955 core based statistical areas (CBSAs). The results reveal how collaborative knowledge creation and the spatial range of knowledge diffusion differs between Europe and the US, and provide direct evidence on the differences in cooperation patterns between different types of collaborative R and D from a longitudinal and comparative perspective
    Keywords: R and D Networks, Patents, Publications, Spatial Interaction Modeling, Eigenvector Spatial Filtering, distance
    JEL: C23 O38 L14 R15
    Date: 2014–09–14
  3. By: Alain-Désiré Nimubona (Department of Economics, University of Waterloo); Hassan Benchekroun (Department of Economics, McGill University)
    Abstract: We compare the performance of R&D cooperation and R&D competition within the eco-industry using a model of vertical relationship between a polluting industry and the eco-industry. The polluting industry is assumed perfectly competitive and the eco-industry is a duopoly in the market for abatement goods and services, with one fi?rm acting as a Stackelberg leader and the other fi?rm as a follower. When there are full information sharing under R&D cooperation and involuntary information leakages under R&D competition, we ?find that the only case where government intervention is needed is the case where R&D cooperation yields a higher welfare but smaller pro?fits for the follower eco-industrial fi?rm than R&D competition. Furthermore, because of the market power that the eco-industry enjoys, we show that more total R&D efforts under R&D competition do not necessarily translate into more abatement activities and larger social welfare. When there are no involuntary leakages of information under R&D competition, this result occurs because R&D competition can induce more total R&D efforts than R&D cooperation even for signi?ficantly high R&D spillovers if the marginal environmental damage is large.
    JEL: L13 O32 Q55 Q58
    Date: 2014–09
  4. By: Martha Prevezer; Lutao Ning; Yuandi Wang
    Abstract: Research Question: How does Chinese corporate governance in publicly-listed firms affect the relationship between innovation productivity and top management turnover? Is state shareholding in China a positive force for innovation productivity? Research Insights: A balance is maintained between the negative effect of (relatively high) top management turnover on investment horizons and innovation productivity, mitigated by positive effects of high state ownership, up to a certain level of ownership concentration. Beyond this level, potential for abuse by the dominant shareholder curtails positive effects on innovation. This contrasts with foreign dominant shareholders where no alignment between dominant shareholder and top management occurs and shorter investment horizons are preferred with lower innovation productivity. Theoretical Implications: In China, with state-held and controlled publicly listed firms, there is an alliance between the dominant shareholder and top management with relatively low employee protection and weak protection for lesser shareholders . This may have positive outcomes for long term innovation but may also lead to principal-principal abuses. Any such alliance needs to be tempered by stronger internal governance structures to protect minority shareholders. But stronger protection may in turn reduce investment horizons and lower innovation. Policy Implications: As well as strengthening external corporate governance mechanisms, insider corporate governance mechanisms need to be strengthened to discipline managers. However stronger countervailing powers to secondary shareholders, stronger Supervisory Board rights and greater independence of Directors may tend to decrease time horizons of investment for the firm and impede innovation.
    Keywords: Corporate governance, Top management turnover, innovation performance, China
    JEL: P3 L2 P5
    Date: 2014–09
  5. By: Dyuti Banerjee (Department of Economics, Monash University, Australia); Sougata Poddar (Department of Economics, Faculty of Business and Law, Auckland University of Technology)
    Abstract: The purpose of this paper is to analyse the question, whether copyright infringement of digital products like software commonly labelled as piracy impedes innovation. We find the answer depends on the nature of piracy i.e. whether it is end-users or commercial piracy. For end user piracy, copyright infringement does not necessarily impede innovation; in fact it can be shown that it encourages innovation when the pirates are active. However, for commercial piracy, it always impedes innovation which has negative implications on the overall welfare of the society. We show under what conditions the government intervention through IPR protection strategy (like monitoring and imposing a fine to the pirate) can support the copyright holder for higher level of innovation. We find the socially optimally monitoring rate for the government that result in maximum innovation for the copyright holder
    Keywords: Innovation; piracy; monitoring; social welfare
    JEL: D21 D43 L13 L21 L26 O3
    Date: 2013–09
  6. By: Fassio, Claudio; Geuna, Aldo; Rossi, Federica (University of Turin)
    Abstract: There is little evidence on the specific characteristics of the process of university-industry knowledge transfer leading to the generation of valuable inventions. Using the results of an original survey of industry inventors of European patents, resident in the Italian region of Piedmont, we analyze what determines the value of inventions that have benefited from academic knowledge. We find that inventors with greater cognitive proximity to the university and higher patenting output are more likely to interact with universities and to benefit from u niversity knowledge. After controlling for the characteristics of firms and technologies, we find that it is the transfer of theoretical academic knowledge rather than solutions to more technical and specified problems that leads to more valuable inventions. We found some evidence that knowledge transfer processes involving direct personal collaboration between the company inventor and the university researcher (which are characterized by higher trust as a result of social network embeddedness) are conducive to relatively higher value inventions.
    Date: 2014–07
  7. By: Peter Schmidt (National Research University Higher School of Economics); Nadezhda N. Lebedeva (National Research University Higher School of Economics)
    Abstract: This study examines the relationship between values, efficacy, trust and innovative organizational behaviour in Russia. We analyse the direct and indirect effect of gender, age and education on innovative behaviour via values, trust and efficacy. For the measurement of values we employed a new revised value instrument with 19 values. We found that Openness to Change values had a significant positive effect and Conservation values a significant negative effect on innovative behaviour in organizations; efficacy and trust had a significant positive effect. Moreover, the effect of values is moderated by the level of efficacy. Gender, age and education directly influence innovative behaviour and determine such behaviour via values, efficacy and trust.
    Keywords: human values, innovation, innovative behaviour, trust, gender, education, region, age
    JEL: Z
    Date: 2014
  8. By: Cathy Ge Bao (Department of Economics/Institute for International Economic Policy, George Washington University); Maggie (Department of Economics/Institute for International Economic Policy, George Washington University)
    Abstract: How do domestic Örms respond to the threat of foreign competition? This paper quantifies the threat of competition from foreign multinational firms by exploring investment news that appear in over 35,000 newspapers, trade presses, magazines, newswires, and other forms of media in 200 countries. The analysis shows that, on average, domestic Örms respond to foreign multinational threats by increasing productivity, R&D, labor training, patent applications, and advertising expense and changing product composition. However, the response exhibits substantial heterogeneity oss industries and Örms: industries with "neck-to-neck" competition are more likely to upgrade productivity; within each industry, the right tail of the domestic productivity distribution responds by increasing innovation while the left tail escapes competition threats by dropping threatened products. Moreover, the degree of response increases significantly with the size of the threat, the influence of the news, the amount of information embedded in the news--on, for example, the credibility of the threat, and the number of news in downstream industries. The main findings are robust to placebo tests and IV analyses that explore detailed and unique characteristics--such as the publishing timing and location, the primary consumers, and the substance--of each news.
    Keywords: threat, foreign investment news, and domestic Örm responses
    JEL: F1 F2 L2 D2
    Date: 2014
  9. By: Oscar Mauricio Valencia
    Abstract: This paper examines an endogenous growth model with occupational choice in which innovators produce ideas. Each innovator has private knowledge of their production costs. Developers offer innovators non-linear contract schemes that affect the number of active innovators and the economic growth rate. Two main results are obtained. First, the equilibrium contract under asymmetric information leads to the selection of highly-talented workers in R&D activities and higher profits for developers. Second, the efficiency-rent extraction tradeoff lowers the economic growth rate with respect to the full information case. Classification JEL: 031, 033, D82.
    Date: 2014–09
  10. By: Daniel Fixari (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Frédérique Pallez (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris)
    Abstract: Depuis plusieurs années, se mettent en place en France des politiques publiques territorialisées d'innovation et de développement économique (politiques de clusters notamment), menées par des acteurs variés, qu'il s'agisse de l'Etat ou des diverses collectivités territoriales. Il en est résulté sur les territoires des systèmes complexes d'acteurs appelés " écosystèmes d'innovation ", dont on peut interroger la coordination et les performances. Comment en outre, dans ces conditions, la convergence de stratégies publiques est-elle assurée ? Ce questionnement, qui renvoie notamment aux problématiques de la gouvernance multi-niveaux, s'appuie sur une étude empirique menée dans trois régions françaises, qui visait à caractériser le fonctionnement de ces écosystèmes et à en proposer des modalités d'amélioration. Sur la base de ce cas, nous caractérisons les sources de la complexité apparente du système, et montrons que, contrairement aux discours qui appellent à la réduction du nombre de " structures ", la mise en place de nouveaux dispositifs de coordination, au-delà de l'harmonisation des fonctionnements, a pour effet complémentaire de constituer des espaces et des procédures permettant la formulation progressive d'une stratégie collective des acteurs publics sur le territoire.
    Keywords: complexité, écosystèmes d'innovation, action publique, coordination, stratégie collective
    Date: 2014–01–01
  11. By: Inga Ivanova; Oivind Strand; Loet Leydesdorff
    Abstract: The knowledge base of an economy measured in terms of Triple Helix relations can be analyzed in terms of mutual information among geographical, sectorial, and size distributions of firms as dimensions of the probabilistic entropy. The resulting synergy values of a TH system provide static snapshots. In this study, we add the time dimension and analyze the synergy dynamics using the Norwegian innovation system as an example. The synergy among the three dimensions can be mapped as a set of partial time series and spectrally analyzed. The results suggest that the synergy at the level of both the country and its 19 counties shoe non-chaotic oscillatory behavior and resonates in a set of natural frequencies. That is, synergy surges and drops are non-random and can be analyzed and predicted. There is a proportional dependence between the amplitudes of oscillations and synergy values and an inverse proportional dependence between the oscillation frequencies' relative inputs and synergy values. This analysis of the data informs us that one can expect frequency-related synergy-volatility growth in relation to the synergy value and a shift in the synergy volatility towards the long-term fluctuations with the synergy growth.
    Date: 2014–09
  12. By: Robert C. Schmidt; Roland Strausz; Melanie;
    Abstract: A central issue in climate policy is the question whether long-term targets for green- house gas emissions should be adopted. This paper analyzes strategic effects related to the timing of such commitments. Using a two-country model, we identify a redistributive effect that undermines long-term cooperation when countries are asymmetric and side payments are unavailable. The effect enables countries to shift rents strategically via their R&D efforts under delayed cooperation. In contrast, a complementarity effect stabi- lizes long-term cooperation, because early commitments in abatement induce countries to invest more in low-carbon technologies, and create additional knowledge spillovers. Con- trasting both effects, we endogenize the timing of climate agreements.
    Keywords: climate treaty, abatement, long-term cooperation, spillover, strategic delay
    JEL: D62 F53 H23 Q55
    Date: 2014–09
  13. By: Minnaar, Amanda; Taylor, John R.N.; Haggblade, Steven; Kabasa, John David; Ojijo, Nelson K. O.
    Keywords: Food Science, Technology, Africa, Agricultural and Food Policy, Food Security and Poverty, Research and Development/Tech Change/Emerging Technologies,
    Date: 2013–01
  14. By: Jean-Francois Mercure (Cambridge Centre for Climate Change Mitigation Research, Department of Land Economy, University of Cambridge); Hector Pollitt (Cambridge Econometrics Ltd, Covent Garden, Cambridge, CB1 2HT, UK); Unnada Chewpreecha (Cambridge Econometrics Ltd, Covent Garden, Cambridge, CB1 2HT, UK); Pablo Salas (Cambridge Centre for Climate Change Mitigation Research, Department of Land Economy, University of Cambridge); Aideen M. Foley (Cambridge Centre for Climate Change Mitigation Research, Department of Land Economy, University of Cambridge); Philip B. Holden (Environment, Earth and Ecosystems, Open University); Neil R. Edwards (Environment, Earth and Ecosystems, Open University)
    Abstract: This paper presents an analysis of possible uses of climate policy instruments for the decarbonisation of the global electricity sector in a non-equilibrium economic and technology innovation-diffusion perspective. Emissions reductions occur through changes in technology and energy consumption; in this context, investment decision-making opportunities occur periodically, which energy policy can incentivise in order to transform energy systems and meet reductions targets. Energy markets are driven by innovation, dynamic costs and technology diffusion; yet, the incumbent systems optimisation methodology in energy modelling does not address these aspects nor the effectiveness of policy onto decision-making since the dynamics modelled take their source from the top-down `social-planner' assumption. This leads to an underestimation of strong technology lock-ins in cost-optimal scenarios of technology. Breaking this tradition, our approach explores bottom-up investor dynamics led global diffusion of low carbon technology in connection to a highly disaggregated sectoral macroeconometric model of the global economy, FTT:Power-E3MG. A set of ten different projections to 2050 of the future global power sector in 21 regions based on different combinations of electricity policy instruments are modelled using this framework, with an analysis of their climate impacts. We show that in an environment emphasising diffusion and learning-by-doing, the impact of combinations of policies does not correspond to the sum of the impacts of individual instruments, but that strong synergies exist between policy schemes. We show that worldwide carbon pricing on its own is incapable of breaking the current fossil technology lock-in, but that under an elaborate set of policies, the global electricity sector can be decarbonised affordably by 89% by 2050 without early scrapping of capital.
    Keywords: Transport, Technological change, Emissions, Fuel use
    JEL: O33 Q41 Q42 Q48 Q54
    Date: 2013–10

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