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on Innovation |
| By: | Sara Amoroso Author-1-Name-First: Sara Author-1-Name-Last: Amoroso (European Commission JRC-IPTS) |
| Abstract: | The paper investigates the barriers to collaboration in terms of hidden transaction costs, by deriving the distribution of the operating costs and sunk costs associated with firms’ investment choices in R&D and innovation activities with or without a research partner. To retrieve both fixed and sunk costs of R&D and innovation activities with or without a research partner, we develop and estimate a structural dynamic monopoly model to quantify the linkages between R&D spending, innovation and cooperation investment choices, and endogenous productivity. We find that the sunk costs of innovations are smaller when collaborating with a research partner; the probability to spend in R&D or to innovate increases with the level of productivity, when collaborating in R&D and innovation; finally, we find that the sunk costs of innovation are 1.5 to 3 times smaller than the sunk costs of R&D. Additionally, the suggested structural framework of firm heterogeneity in cost functions offers a straightforward extension to policy impact evaluation. |
| Keywords: | R&D cooperation, transaction costs, dynamic structural model. |
| JEL: | D22 D23 L14 L60 O32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201402&r=ino |
| By: | Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Ivan Savin (School of Economics and Business Administration, Friedrich-Schiller-University Jena) |
| Abstract: | This paper analyzes whether firms conducting internal R&D and acquiring external high-tech equipment experience a complementarity effect. For German CIS data we conduct a complete set of indirect and direct complementarity tests refining the analysis by looking at various types of innovations and industries. Complementary effects are found in the indirect but not so in the direct approach. In contrast to previous literature, we find the distinct R&D strategy choices to be significant drivers of innovative activity and we identify contextual variables explaining the joint occurrence of the two strategies. |
| Keywords: | complementarity, equipment with embodied technology, innovation, internal R&D, Pavitt's sectoral taxonomy |
| JEL: | O14 O31 O32 O33 |
| Date: | 2014–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2014-023&r=ino |
| By: | Cilem Selin Hazir (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)); James Lesage (Texas State University - Texas State University); Corinne Autant-Bernard (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: | In this study, we consider R&D collaboration networks as a mechanism that modifies knowledge flows in space, and hence as another source of interaction among regional innovation processes. Our objective is to understand the relative role of spatial neighbors and network neighbors on patenting performance of regions. We make use of data on R&D collaborations supported by the European Union's Framework Programs (FP) and empirically investigate the patent activity of 213 European regions in the field of ICT during 2003-2009. Concerning the short length of the time frame we adopt a static modeling strategy and specify a spatial Durbin Model. As spatial neighbors intersect with network neighbors we decompose neighbor regions into three sets: spatially proximate regions that are not collaboration partners, spatially proximate regions that are collaboration partners, and distant collaboration partners. We express the weight matrix as a convex combination of these three sets and by means of gridding we compare how model fit changes as we move from a purely space based view to a purely network based view to express the dependence structure. The weight matrix that performs the best accords 60% weight to distant collaboration partners, 30% weight to proximate collaboration partners and 10% weight to proximate regions with whom there is no FP collaboration. This result reveals that the interaction (proximate and distant) among European regions within FP networks in the field of ICT is key for understanding dependence among their patenting performances. |
| Keywords: | R&D collaboration networks; innovation performance; spatial econometrics; ICT |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01073031&r=ino |
| By: | Gunno Park (Samsung SDS); Jina Kang (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University) |
| Abstract: | Although their advantages are well-known, technology alliance may not always positively affect innovative performance. Previous studies have found several explanations for this problem. Technology alliances often require excessive resources and capabilities to form and maintain relationships with partners. In addition, they cause a diversion of managerial attention and functions from internal R&D activities, yet many firms are often unequipped to deal with these problems. In this paper, we hypothesize that firms often execute an inefficient technology alliance strategy, thus negatively affecting their innovative capabilities and consequently reducing subsequent innovation performance. More specifically, we test whether firms with greater prior experience on technology alliances are more likely to execute inefficient technology alliance strategies. Second, we try to investigate negative effects of technology alliances on firms’ internal R&D capabilities. To test our hypotheses, we employ data from 9629 technology alliances in the US biotechnology and pharmaceutical industries. Implications from these analyses are offered for executives and technology alliance strategies. Specifically, we propose that firms should undertake technology alliances while considering the negative aspects and the firm’s limited resources. |
| Keywords: | Alliance Experience, Organizational Routine, Alliance Formation, Internal R&D Capability. |
| JEL: | D23 L22 L24 O32 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:snv:dp2009:2014119&r=ino |
| By: | Annalisa Caloffi; Federica Rossi; Margherita Russo |
| Abstract: | Greater understanding of what factors promote the formation of innovation networks and their successful performance would help policymakers improve the design of policy interventions aimed at funding R&D projects to be carried out by networks of innovators. In this paper, we focus on the organizations that can play the role of intermediaries in the networks, facilitating the involvement of other participants and promoting communication and knowledge flows within the network. Based on an original empirical dataset, capturing the relationships between organizations involved in a set of publicly-funded programmes in support of innovation networks, we have tried to identify what are the main features of different types of intermediaries based on an analysis of their positions within networks of relationships. We have observed that agents that occupy broker positions – linking agents that are not connected to each other – are more likely to be found in technologically turbulent environments, while the agents that occupy intercohesive positions – bridging cohesive communities of network agents – operate in more stable contexts. Intermediaries in general are more likely to be local governments. However, besides this, it is not possible to clearly identify organizations that, by nature, are more likely to be either brokers or intercohesive agents: different innovation networks may require different organizations to mediate relationships between the other participants. |
| Keywords: | Innovation policy, innovation networks, social network analysis, intermediaries, brokers, intercohesion |
| JEL: | D85 O31 O32 O38 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:mod:dembwp:0030&r=ino |
| By: | Falato, Antonio (Board of Governors of the Federal Reserve System (U.S.)); Sim, Jae W. (Board of Governors of the Federal Reserve System (U.S.)) |
| Abstract: | This paper uses the staggered changes of R&D tax credits across U.S. states and over time as a quasi-natural experiment to examine the impact of innovation on corporate liquidity. By generating plausibly independent variation in firms' incentive to invest in R&D, we are able to assess the empirical importance of specific theories of the link between innovation and corporate liquidity. Firms increase (decrease) their cash to asset ratios by about one and a half percentage point when their home state increases (cuts) R&D tax credits. These baseline difference-in-differences estimates hold up to a battery of validation, falsification, and robustness checks, which corroborate their internal and external validity. The treatment effect of R&D tax credits increases monotonically with several specific proxies for debt and equity financing frictions. Increases (cuts) in tax credits also lead to increases (decreases) in the ratios of cash to bank lines of credit and to book equity, and to decreases (increases) in bank debt, secured debt, and overall net indebtness, supporting debt and equity financing channels through which innovation impacts the demand for cash. We also find support for a product market competition channel, and assess repatriation and agency explanations. Overall, our analysis offers endogeneity-free evidence that innovation is a first-order driver of corporate liquidity management decisions. |
| Keywords: | Determinants of corporate cash holdings; financial economics of innovation |
| Date: | 2014–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2014-72&r=ino |
| By: | Joelle Noailly; Roger Smeets (The Centre for International Environmental Studies, The Graduate Institute of International and Development Studies, Geneva) |
| Abstract: | This paper investigates the determinants of directed technical change at the Firm level in the electricity generation sector. We use firm-level data on patents filed in renewable (REN) and fossil fuel (FF) technologies by 5,261 european firms over the period 1978-2006. We investigate how energy prices, market size and knowledge stocks affect firms' incentives to innovate in one technology relative to another and how these factors may thereby induce a shift from FF to REN technology in the electricity generation sector. We separately study small specialized firms, which innovate in only one type of technology during our sample period, and large mixed firms, which innovate in both technologies. We also separate the extensive margin innovation decision (i.e. whether to conduct innovation) from the intensive margin decision (i.e. how much to innovate). Overall, we find that all three factors - energy prices, market sizes and past knowledge stocks - matter to redirect innovation towards REN and away from FF technologies. Yet, we find that these factors have a larger impact on closing the technology gap through the entry (and exit) of small specialized firms, rather than through large mixed firms' innovation. An implication of our results is that firm dynamics are of direct policy interest to induce the replacement of FF by REN technologies in the electricity generation sector. |
| Keywords: | Directed technical change; Renewable energy; Fossil fuel energy; Patents; Innovation; Firm dynamics |
| Date: | 2014–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_24&r=ino |
| By: | Michele Bernini (Department of Economics, University of Sheffield); Georgios Efthyvoulou (Department of Economics, University of Sheffield); Ian Gregory-Smith (Department of Economics, University of Sheffield); Jolian McHardy (Department of Economics, University of Sheffield); Antonio Navas (Department of Economics, University of Sheffield) |
| Abstract: | The aim of this paper is to investigate the role interlocking directorships play in the patenting activities of UK companies and provide further insights into the channels through which this relationship emerges. Our empirical analysis produces three main results: first, interlocking leads to a higher number of successful patent applications; second, interlocked firms are more likely to cite each other's patents, especially around the moment of interlocking; and, third, interlocked companies tend to increase the technological similarity of their patent portfolio in the immediate period following their first interlock. To rationalise these results, we develop a theoretical model that identifies interlocking directorships as a practice that prevents property right conflicts that often arise between firms that are technologically close to each other. |
| Keywords: | patents; director networks; knowledge spillovers; patent coordination |
| JEL: | O31 O32 D85 G30 J49 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:shf:wpaper:2014016&r=ino |
| By: | Simone Borghesi (University of Siena, Italy.); Giulio Cainelli (University of Padova, Italy.); Massimiliano Mazzanti (University of Ferrara, Italy; SEEDS, Ferrara, Italy.) |
| Abstract: | This paper examines the different forces underlying the adoption of environmental innovations (EI), with a focus on policy related EI. In particular, exploiting the 2006-2008 wave of the Italian Community Innovation Survey (CIS), we investigate whether the first phase of the European Emissions Trading Scheme (EU-ETS) exerted some effects on EI in CO2 abatement and energy efficiency controlling for other variables, grouped as internal/external to the firm, and additional environmental regulation factors. Our empirical analyses show that a few factors emerge as particularly relevant such as relationships with other firms and institutions, sectoral energy expenditure intensity, and current and future expected environmental regulation. For the specific role of the EU ETS, we find that, on the one hand ETS sectors are more likely to innovate than non-ETS sectors but on the other hand that sector specific policy stringency is negatively associated with EI, possibly due to anticipatory behavior from early moving innovative firms and some sector idiosyncratic factors. |
| Keywords: | Environmental innovation, EU-ETS, CIS EU data, manufacturing |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:2714&r=ino |
| By: | Cristiano Antonelli (Department of Economics, University of Turin - University of Turin); Francesco Quatraro (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - CNRS : UMR7321 - Université Nice Sophia Antipolis (UNS)) |
| Abstract: | The paper by Ji and Wang (J Technol Transf, 2013) calls new attention on the analysis of the effects of the direction of technological change. The aim of this paper is to better articulate and test the theoretical arguments that the direction of technological changes has specific effects on the efficiency of the production process and to study the incentives and the processes that lead to its introduction. The decomposition of total factor productivity growth into the bias and the shift effects enables to articulate the hypothesis that the types of technological change whether more neutral or more biased reflect the variety of the innovation processes at work. The evidence of a large sample of European regions tests the hypothesis that regional innovations systems with a strong science base are better able to introduce neutral technological changes while regional innovation systems that rely more upon learning processes and tacit knowledge favor the introduction of directed technologies a form of meta-substitution that aims at exploiting the opportunities provided by the most intensive use of locally abundant factors. |
| Date: | 2014–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01070563&r=ino |
| By: | Juana Sanchez |
| Abstract: | This paper presents a novel empirical study of innovation practices of U.S. companies and their relation to productivity levels using new business micro data from the Business Research and Development and Innovation Survey (BRDIS) for the years 2008-2011. The paper follows the work of Frenz and Lambert, who use factor analysis to reduce a set of inputs and outputs of innovation activities into four latent unobserved innovation modes or practices for OECD countries using Community Innovation Surveys (CIS). Patterns obtained with BRDIS data are very similar to those found by those authors in some OECD countries. Companies are grouped according to their scores across the four factors to see that in large, small and medium companies more than one mode of innovation practices prevails. The next step in the analysis links different types of innovation practices to levels of productivity using regression analysis. The four innovation modes have a statistically signi cant positive relation with the level of productivity, other things constant. The paper demonstrates the possibility of taking into account the multidimensionality of innovation without the use of composite indicators. |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:14-35&r=ino |
| By: | Claudio Baccianti; Andreas Löschel |
| Abstract: | In the last two decades, large scale CGE models used for environmental policy assessment underwent an important upgrade to integrate endogenous technological progress. Nevertheless, several complexities of innovation are still neglected even if they are of primary interest for policymakers. This paper provides a review of the current state of the art in the CGE modelling literature through a special lens. We discuss how existing models deal with different types of innovation (i.e. product and process innovation) and how differences in innovation activities influence modelling results. We also emphasise the implications of product innovation in a multisector framework, which has received little attention in the literature. |
| Keywords: | CGE models, ecological innovation, economic growth path, green jobs, innovation, innovation policy, social innovation, socio-ecological transition, sustainable growth |
| JEL: | O41 O40 O47 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2014:m:10:d:0:i:68&r=ino |
| By: | Pierre-Richard Agénor; Baris Alpaslan |
| Abstract: | The link between infrastructure and industrial development is studied in an OLG model with endogenous skill acquisition. Industrial development is defined as a shift from an imitation-based, low-skill economy to an innovation-based, high-skill economy, where ideas are produced domestically. Imitation generates knowledge spillovers, which enhance productivity in innovation. Changes in industrial structure are measured by the ratio of the variety of imitation- to innovation-based intermediate goods. The model also distinguishes between basic infrastructure, which helps to promote learning by doing and productivity in imitation activities, and advanced infrastructure, which promotes knowledge networks and innovation. Numerical experiments, based on a calibrated version for a low-income country, show that changes in the level and composition of public investment in infrastructure may have significant effects on the structure of the labor force and the speed of industrial development. |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:man:cgbcrp:195&r=ino |
| By: | Jérôme Vicente |
| Abstract: | Cluster policies have been recently called into question in the aftermath of several empirical evidences. Disentangling how market and network failures arguments play together in cluster policy design, we look for more robust micro foundations of network structuring in clusters. Our aim is to show that, in spite of this growing skepticism, new opportunities for cluster policy exist. They require moving their focus from the “connecting people” one best way that gets through the whole of cluster policy guidelines, to more surgical incentives for R&D collaborations, which favor suited structural properties of local knowledge networks along the life cycle of clusters. |
| Keywords: | cluster policy, knowledge spillover, network failures |
| JEL: | B52 D85 O33 R12 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1420&r=ino |
| By: | Georg Licht; Bettina Peters; Christian Köhler; Franz Schwiebacher |
| Abstract: | European countries are currently faced with a variety of challenges, ranging from the new global distribution of economic activity, the diffusion of new, radical technologies to the aging of its population, youth unemployment and the aftermath of the economic and financial crisis. These challenges put the traditional growth model and the policies to foster it under strong pressure. This report summarizes the contributions of the wwwforEurope projects on the definition resp. redefinition of industrial, regional and innovation policy to characterise and stimulate the economies along a new growth path. It is argued that a new growth path needs a new vision on what Europe understands as competitiveness. The report highlights the history and the way forward of European industrial policy. As regional and innovation policy are fully intertwined with industrial policy for a new growth path, it sheds light on these domains as well. For example, the report investigates the role of clusters for the new growth path and the contribution of green innovation, especially in the energy sector, to employment creation. Finally, the report takes a look at the role of SMEs and universities, new players in the new growth model which are normally not included in discussions of competitiveness. |
| Keywords: | Environmental innovation, Social Innovation, Socio-Econological Transition, Europe |
| JEL: | O33 J23 L80 C21 C23 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfedel:y:2014:m:9:d:0:i:4&r=ino |
| By: | T’Mir D. Julius (Melbourne Institute of Applied Economic and Social Research, and Intellectual Property Research Institute of Australia, The University of Melbourne); Gaétan de Rassenfosse (Melbourne Institute of Applied Economic and Social Research, and Intellectual Property Research Institute of Australia, The University of Melbourne) |
| Abstract: | This document describes the methodology developed by the Melbourne Institute to: (i) harmonise holders of intellectual property rights (IPRs) at IP Australia (applications for patent, designs, trademarks and plant breeder’s rights); (ii) match Australian IPRs holders to the Australian business register; (iii) identify the ultimate owners within Australia; and (iv) identify which holders are small and medium size enterprises. |
| Keywords: | Patent, trademark, design right, plant breeder’s right, harmonizing, name cleaning, Patstat |
| JEL: | O34 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:iae:iaewps:wp2014n15&r=ino |
| By: | Kresimir Zigic; Jiri Strelicky; Michael Kunin |
| Abstract: | We study how the strength of public intellectual property rights (IPR) protection against software piracy (copyright protection) affects private IPR protection (that software developers may themselves undertake to protect their IPR). There are two software developers that offer a product variety of differing (exogenously given) quality and compete in prices for heterogeneous users, who make a choice whether to buy a legal version, use an illegal copy (if they can), or not use a product at all. Using an illegal version violates IPR and is thus punishable when disclosed. If a developer considers the level of piracy as high, he can introduce a form of physical protection for his software or digital product. The main aim of our analysis is to study how the level and the change of public IPR protection affect the pricing and IPR protection strategies of software developers. In particular, we are interested in establishing when the two forms of IPR protection (public and private) are complements to each other, when are they substitutes and when a change in public IPR has no impact on private IPR protection. |
| Keywords: | vertically differentiated duopoly; software piracy; Bertrand competition; copyright protection; private and public intellectual property rights protection; |
| JEL: | D43 L11 L21 O25 O34 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp518&r=ino |