nep-ino New Economics Papers
on Innovation
Issue of 2014‒10‒13
ten papers chosen by
Steffen Lippert
University of Auckland

  1. Knowledge-capital formation and valorisation of French SMEs By Zeting LIU; Blandine LAPERCHE
  2. Sequential Product Innovation, Competition and Patent Policy By George Norman; Lynne Pepall; Dan Richards
  3. Exporting, R&D and Absorptive Capacity in UK Establishments: Evidence from the 2001 Community Innovation Survey By Qian Li; Richard Harris
  4. Situation in Russian science and innovation sector in 2013 By Irina Dezhina
  5. The Middle Income Trap: A Way Out Based on Technological and Structural Change By Marco Vivarelli
  6. ASEAN Beyond 2015: Stimulating Innovation in ASEAN Institutional Suppor, R & D Acvtivity and Intellectual Property Rights By Rajah Rasiah
  7. Optimal Enforcement Policy and Firm´s Decisions on R&D and Emissions By Fatih Karanfil; Bilge Ozturk
  8. A scaleable approach to emissions-innovation record linkage By Mark Huberty; Amma Serwaah; Georg Zachmann
  9. The Harmonization of Technical Barriers to Trade, Innovation and Export Behavior: Theory with an Application to EU Environmental Regulations By MANTOVANI Andrea; VANCAUTEREN Mark
  10. Parallel trade, price regulation, and investment incentives By Giorgio Matteucci; Pierfrancesco Reverberi

  1. By: Zeting LIU (Lab.RII, ULCO/Clersé-UMR8019, Université Lille Nord de France, RRI); Blandine LAPERCHE (Lab.RII, ULCO/Clersé-UMR8019, Université Lille Nord de France, RRI)
    Abstract: This paper focuses on French SMEs and studies their main characteristics regarding knowledge-capital formation and valorisation. We put forward what we may call a “French Paradox”, expressed by a quite important effort in terms of R&D investments and poor results in terms of innovation as measured by traditional indicators (patents). How can we explain this paradox? To answer this question, we study their strategy of knowledge-capital building (through absorptive capacity and open innovation) and valorisation (the way they transform their accumulated knowledge into innovations). We show that apart from the structural characteristics of SMEs (forms of innovation, use of IPRs, etc.), one important reason to their weak performances in terms of innovation lies in their integration within innovation networks dominated by large companies. The valorisation of SMEs’ knowledge capital (through patents and the diffusion of innovations) is thus not always achieved by the SMEs themselves but by the larger company, enriched by the specific knowledge of these SMEs.
    Keywords: Knowledge-capital, absorptive capacity, open innovation, SMEs, France
    JEL: O31 O34 L11
    Date: 2014
  2. By: George Norman; Lynne Pepall; Dan Richards
    Abstract: This paper examines the role of patent policy in a spatial model of sequential innovation. Initial entrepreneurs develop a new product market and anticipate that subsequent innovation may lead to a product line that consumers value more highly. The likelihood of sequential innovation increases with the number of initial early entrants in the market. Patent protection that encourages early entry can therefore raise the probability of both initial and subsequent innovation. We determine the optimal patent breadth as a function of key industry characteristics of both consumer taste and the new technology.
    Keywords: sequential innovation, patent policy, entry
    JEL: L5 O25
  3. By: Qian Li; Richard Harris
  4. By: Irina Dezhina (Gaidar Institute for Economic Policy)
    Abstract: This paper deals with the state of fundamental research and science in Russia, the author also touches issues related to innovation
    Keywords: Science in Russia, innovation
    JEL: O32 O38
    Date: 2014
  5. By: Marco Vivarelli (DISCE, Università Cattolica)
    Abstract: This paper is intended to provide an updated discussion on a series of issues that the relevant literature suggests to be crucial in dealing with the challenges a middle income country may encounter in its attempts to further catch-up a higher income status. In particular, the conventional economic wisdom – ranging from the Lewis-Kuznets model to the endogenous growth approach– will be contrasted with the Schumpeterian and evolutionary views pointing to the role of capabilities and knowledge, considered as key inputs to foster economic growth. Then, attention will be turned to structural change and innovation, trying to map – using the taxonomies put forward by the innovation literature – the concrete ways through which a middle income country can engage a technological catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technological transfer. Among the ways how a middle income country can foster domestic innovation and structural change in terms of sectoral diversification and product differentiation, a recent stream of literature underscores the potentials of local innovative entrepreneurship, that will also be discussed bridging entrepreneurial studies with the development literature. Finally, the possible consequences of catching-up in terms of jobs and skills will be discussed.
    Keywords: catching-up, structural change, globalization, capabilities, innovation, entrepreneurship.
    JEL: O14 O33
    Date: 2014–09
  6. By: Rajah Rasiah (University of Malaya, Malaysia)
    Abstract: The Policy Brief suggests initiatives that poorer ASEAN member governments should take to stimulate technological upgrading of firms at the bottom with a focus on innovation, and discusses the governance framework of intellectual property rights (IPRs) in ASEAN. With an emphasis on technology as the driver of economic growth, typologies of taxonomies and trajectories are used to evolve a policy framework to coordinate the relationship between macro-institutions, meso-organizations and micro-agents (firms) for ASEAN members to transform from developing nations to join Singapore as developed nations. Recognizing the varying capacities of ASEAN members, the paper recommends that a common platform of IPRs be developed with the more developed members assisting the least developed ASEAN members to quicken the development of a technologically more egalitarian region.
    Date: 2014–06
  7. By: Fatih Karanfil; Bilge Ozturk
  8. By: Mark Huberty; Amma Serwaah; Georg Zachmann
    Abstract: PATSTAT has patent applications as its focus. This means it lacks information on the applicants and/or the inventors. In order to have more information on the applicants, we link PATSTAT to the CITL database. This way the patenting behavior can be linked to climate policy. Because of the structure of the data, we can adapt the de-duplication algorithm to use it as a matching tool, retaining all of its advantages. Source code on Github. Download data.
    Date: 2014–09
  10. By: Giorgio Matteucci (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza"); Pierfrancesco Reverberi (Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza")
    Abstract: We study the case where parallel trade (PT) stems from government price controls in a foreign country. We remove the presumption that PT blunts dynamic efficiency if the government has partial commitment ability. We model the R&D firmÕs option to serve the foreign country, and find that PT may improve quality, depending on preferences for quality. Improving quality may be a sufficient condition for PT to raise global welfare ex ante. Under PT, quality may be higher with than without price controls.We discuss the role of bargaining power in price negotiations.
    Keywords: Parallel trade; Price regulation; R&D investment; Intellectual property rights
    Date: 2014

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