nep-ino New Economics Papers
on Innovation
Issue of 2015‒01‒09
28 papers chosen by
Steffen Lippert
University of Auckland

  1. R&D partnerships and innovation performance: Can there be too much of a good thing? By Hottenrott, Hanna; Lopes-Bento, Cindy
  2. Determinants of technological innovation in SMEs. Firm-level factors, agglomeration economies and the role of KIBS providers By Roberto Ganau; Eleonora Di Maria
  3. Measuring Innovation in Canada: The Tale Told by Patent Applications By Matthias Ben Dachis; Matthias Robbie Brydon; Matthias Nicholas Chesterley
  4. The Role of Industry Classification in the Estimation of Research and Development Expenditures By Christian Awuku-Budu; Carol A. Robbins
  5. How Important Are Internal Knowledge Flows for Firms' Innovative Performance in Spain? By Esther Goya
  6. Another brick in the wall? Technology leaders, patents, and the threat of market entry By Heger, Diana; Zaby, Alexandra K.
  7. Roads and Innovation By Agrawal, Ajay; Galasso, Alberto; Oettl, Alexander
  8. The Market Impacts Of Pharmaceutical Product Patents In Developing Countries: Evidence From India By Mark Duggan; Craig Garthwaite; Aparajita Goyal
  9. Performance assessment of innovation infrastructure facilities in Russia By Vera Barinova; Alla Sorokina
  10. Growth, Trade, and Inequality By Grossman, Gene; Helpman, Elhanan
  11. R and D Spillovers Across the Supply Chain: Evidence from the Indian Automobile Industry By Madhuri Saripalle
  12. Knowledge Spillovers, ICT and Productivity Growth By Corrado, Carol; Haskel, Jonathan; Jona-Lasinio, Cecilia
  13. Agglomerations and firm performance: how does it work, who benefits and how much? By Hervas-Oliver,Jose-Luis; Sempere-Ripoll,Francisca
  14. Network evolution, success, and regional development in the European aerospace industry By Guffarth, Daniel; Barber, Michael J.
  15. Evolution of business models in French ?Pôles de compétitivité?: the role of intermediaries in horticultural varietal creation By Isabelle Leroux; Paul Muller; Béatrice Plottu; Caroline Widehem
  16. The Role of Science Parks in Smart Specialisation Strategies By Claire Nauwelaers; Alexander Kleibrink; Katerina Stancova
  17. The Impact of Skilled Foreign Workers on Firms: An Investigation of Publicly Traded U.S. Firms By Ghosh, Anirban; Mayda, Anna Maria; Ortega, Francesc
  18. Transition and path-dependence in knowledge-intensive industry location: Case of Russian professional services By Denis Ivanov
  19. Innovation and entrepreneurship in the global economy By Karlsson, Charlie; Gråsjö, Urban; Wixe, Sofia
  20. Innovation, Decentralization, and Planning in a Multi-Region Model of Schumpeterian Economic Growth By Amit Batabyal; Peter Nijkamp
  21. From productivity to exporting or vice versa? Evidence from the Tunisian manufacturing sector By Ayadi, Mohamed; Mattoussi, Wided
  22. Implementing the agroecological transition: weak or strong modernization of agriculture? Focus on the mycorrhiza supply chain in France By Valérie Angeon; Rebecca Bilon; Marie Chave
  23. Knowledge-based local economic development in the less developed region: ELI Science Park in Hungary By Imre Lengyel; Miklós Lukovics; Szabolcs Imreh
  24. Boosting scientific publications in Africa: which IPRs protection channels matter? By Simplice Anutechia Asongu
  25. Dead Poets’ Property - How Does Copyright Influence Price By Xing Li; Megan MacGarvie; Petra Moser
  26. The US Research University – Systemic Limits of a Model By Stephan Bieri; Franz Lehner
  27. Understanding responsible innovation in small producers’ clusters in Vietnam through Actor Network Theory (ANT) By Voeten, J.; de Haan, J.A.C.; Roome, N.; de Groot, G.A.
  28. Key Players By Zenou, Yves

  1. By: Hottenrott, Hanna; Lopes-Bento, Cindy
    Abstract: R&D collaboration facilitates pooling of complementary skills, learning from the partner as well as sharing risks and costs. Research therefore repeatedly stressed the positive relationship between collaborative R&D and innovation performance. Fewer studies addressed potential drawbacks of collaborative R&D. Collaborative R&D comes at the costs of coordination and monitoring, requires knowledge disclosure and involves the risk of opportunistic behaviour by the partners. Thus, while the net gains from collaboration can be high initially, cost may start to outweigh those benefits if firms engage in multiple collaborative projects simultaneously. This study explicitly considers a firm's collaboration intensity, that is, the share of collaborative R&D projects in the firms' total R&D project portfolio. For a sample of 2,891 firms located in Germany, active in abroad range of manufacturing and service sectors and of which 86% are SMEs, we indeed find that increasing the share of collaborative R&D projects in total R&D projects is associated with a higher probability of product innovation and with a higher market success of new products. While we can confirm previous findings in terms of gains for innovation performance, we also find that collaboration has decreasing and even negative returns on product innovation if its intensity increases above a certain threshold. Consequently, the relationship between collaboration intensity and innovation has an inverted-U shape. In particular, costs start outweighing benefits if a firm pursues more than about two thirds of its R&D projects in collaboration. This result is robust to conditioning market success to the introduction of new products and to accounting for the selection into collaborating.
    Keywords: innovation performance,product innovation,R&D partnerships,collaboration intensity,SMEs,transaction costs,selection model,endogenous switching
    JEL: O31 O32 O33 O34
    Date: 2014
  2. By: Roberto Ganau; Eleonora Di Maria
    Abstract: The study of the determinants of innovation processes has received great attention in both the economics and the business literature. However, only few contributions have proposed a comprehensive framework able to bring together different but not mutually exclusive research approaches. This paper contributes to the analysis of the determinants of technological innovation - namely, product and process innovations - focusing on Italian manufacturing small and medium sized firms (SMEs) by accounting, simultaneously, for firm-specific characteristics, agglomeration economies and the role of KIBS providers. Specifically, the paper provides an empirical investigation which is built on a multi-dimensional theoretical basis which gathers the resource-based view of the firm and the new economic geography framework together. The empirical exercise employs data of about 4,000 Italian SMEs observed over the period 2004-2006 and drawn from the Unicredit-Capitalia database. Parametric probabilistic models are estimated in order to identify the joint effects of several potential determinants of successful technological innovation. Overall, results suggest that technological innovation in manufacturing SMEs is mainly driven by firm-specific characteristics. It emerges that experience and knowledge accumulated over time (i.e. age) as well as availability of human and capital resources (i.e. size) matter for being innovative firms. Moreover, innovative firms show both higher labour productivity levels and higher investments in R&D activities than non-innovative firms. Results partially support previous findings on the agglomeration-innovation relationship: overall, diversification (specialisation) externalities seem to positively (negatively) affect (high-tech) firms' probability of introducing technological innovations. Finally, results suggest that the spatial agglomeration of KIBS providers - i.e. being located in an area characterised by a high concentration of KIBS firms - does not matter per se: in fact, a positive effect emerges only when firms' heterogeneity in absorptive capacity is explicitly considered. Results show that only (low-tech) SMEs which invest in R&D activities benefit from a high geographic concentration of (professional and technological) KIBS firms.
    Keywords: Technological innovation; Manufacturing SMEs; Resource-Based Theory; Agglomeration Economies; KIBS providers; Italy;
    JEL: D22 O31 R12
    Date: 2014–11
  3. By: Matthias Ben Dachis; Matthias Robbie Brydon; Matthias Nicholas Chesterley
    Abstract: Alberta and Ontario are leading the pack in innovation as measured by patents filed per capita, according to a new report from the C.D. Howe Institute. In “Measuring Innovation in Canada: The Tale Told by Patent Applications,” authors Robbie Brydon, Nicholas Chesterley, Benjamin Dachis and Aaron Jacobs show for the first time which provinces and which sectors are leading or lagging in Canadian-led innovation for the Canadian market.
    Keywords: Economic Growth and Innovation, Energy & Environment
    JEL: O34 Q3
    Date: 2014–11
  4. By: Christian Awuku-Budu; Carol A. Robbins
    Abstract: This paper uses data from the National Science Foundation’s surveys on business research and development (R&D) expenditures that have been linked with data from the Census Bureau’s Longitudinal Business Database to produce consistent NAICS-based R&D time-series data based on the main product produced by the firm for 1976 to 2008.The results show that R&D spending has shifted away from domestic manufacturing industries in recent years. This is due in part to a shift in U.S. payrolls away from manufacturing establishments for R&D-performing firms.These findings support the notion of an increasingly fragmented production system for R&D-intensive manufacturing firms, whereby U.S. firms control output and provide intellectual property inputs in the form of R&D, but production takes place outside of the firms' U.S. establishments.
    Keywords: Business R&D, industry classification, factoryless goods producers, U.S. manufacturing firms, establishments
    Date: 2014–11
  5. By: Esther Goya (AQR-IREA Research Group, University of Barcelona)
    Abstract: The aim of this paper is to analyse the extent to which internal knowledge flows may have an impact on firms’ innovative performance. As most of innovation literature has focused its attention on external knowledge transfers, internal knowledge flows have faded into the background. However, transference of information and experience within firms can improve their technological performance impacting positively on their innovativeness leading to higher innovative sales. Voluntary and involuntary knowledge flows are taken under consideration as well as firm’s absorptive capacity. The dataset used is Technological Innovation Panel (PITEC) for Spain over the period 2004-2011. The results indicate that internal knowledge flows have a positive and significant influence on innovative sales. In particular, voluntary knowledge flows have a greater impact than involuntary knowledge transfers. Interestingly, internal knowledge flows increase innovative sales to a greater extent than their external counterparts. This finding highlights the importance of internal information which, as it was mentioned previously, usually remains in the shadows. Finally, absorptive capacity only seems to enhance efficiency in exploiting involuntary knowledge flows.
    Keywords: innovation performance, internal knowledge flows, absorptive capacity, Spain
    JEL: D22 L20 O31
    Date: 2014–11–10
  6. By: Heger, Diana; Zaby, Alexandra K.
    Abstract: Technology leaders protecting a technological headstart with a patent are provided with a powerful legal measure to restrict market entry. We analyze the impact of knowledge spillover on the decision to patent and the effect of varying patent breadth on the threat of market entry. An empirical test of our theoretical results suggests that (i) a large technological lead is protected by a patent only in industries with high knowledge spillover, and that (ii) patent breadth can mitigate the market entry threat.
    Keywords: patenting decision,disclosure requirement,patent breadth,market entry threat,IPC codes
    JEL: L13 O33 O34
    Date: 2014
  7. By: Agrawal, Ajay; Galasso, Alberto; Oettl, Alexander
    Abstract: We study the interplay between transportation infrastructure, knowledge flows, and innovation. Exploiting historical data on planned portions of the interstate highway system, railroads, and exploration routes as sources of exogenous variation, we estimate the effect of U.S. interstate highways on regional innovation. We find that a 10% increase in a region's stock of highways causes a 1.7% increase in regional patenting over a five-year period. We show that roads facilitate the flow of local knowledge and allow innovators to access more distant knowledge inputs. This finding suggests that transportation infrastructure may spur regional growth above and beyond the more commonly discussed agglomeration economies that are predicated on an inflow of new workers.
    Keywords: highways; innovation; regional growth; transportation
    JEL: L91 O33 O47
    Date: 2014–08
  8. By: Mark Duggan (Stanford University); Craig Garthwaite (Northwestern University); Aparajita Goyal (World Bank)
    Abstract: In 2005, as the result of a World Trade Organization mandate, India began to implement product patents for pharmaceuticals that were compliant with the 1995 Trade-Related Aspects of Intellectual Property Rights (TRIPS). We combine pharmaceutical product sales data for India with a newly gathered dataset of molecule-linked patents issued by the Indian patent office. Exploiting variation in the timing of patent decisions, we estimate that a molecule receiving a patent experienced an average price increase of just 3-6 percent with larger increases for more recently developed molecules and for those produced by just one firm when the patent system began. Our results also show little impact on quantities sold or on the number of pharmaceutical firms operating in the market.
    Date: 2014–10
  9. By: Vera Barinova; Alla Sorokina
    Abstract: Performance assessment of innovation infrastructure facilities might be seen as one of the most topical issues of regional development in Russia. Due to the variety of infrastructure types, it's difficult to select the assessment indicators, for there are no generally accepted and integrated performance assessment measures, based on verifiable data according to the enquiries of the stakeholders. The article discusses ways to evaluate the efficiency of innovation infrastructure facilities in Russia. We assume, that innovation infrastructure can't be analyzed apart from the national innovation system it. It follows, that innovation infrastructure facilities performance is fully determined by the regional innovation system and its development. The aim was to find the optimum number of innovation infrastructure facilities, depending on the regions' level of innovative development. The research was based on the Miiris database (gathered by the National monitoring centre for innovation and scientific infrastructure and regional innovation systems), updated and enlarged. The total number of objects analyzed is 1158, situated in 75 regions of the Russian Federation, typically referred to technology&production (the most widespread group), consulting, financial and informational support, human capital (education), sales. To assess the sufficiency level authors use statistical methods for analyzing the relationship between the level of regional innovative development (defined according to the AIRR rating 2012) and the number of the innovation infrastructure facilities in Russian regions. The analysis has showed that the higher the level of regional innovative development is, the more innovation infrastructure facilities the region has. According to these results, the regions of Russia were divided into four groups: strong innovators (11), average+, average (28), average-, poor innovators (9). The analysis has also showed the possibility of determining the relevant number of innovative infrastructure facilities for each level of regional innovative development (defined by the regional innovative development index). This number demonstrates nonlinear growth from "poor" to "strong" innovators, that shows the synergy of the innovation potential accumulation in the regional economy. The important practical output is that building additional innovation infrastructure facilities in regions, described as "poor innovators", average- and in some cases average innovators - is ineffective, for there will be no demand for their services. In addition, authors propose a set of measures to improve the performance of the innovation infrastructure facilities, including the greater "soft infrastructure" involvement (ICT-facilities, social, professional and organizational networks) as the main way to enhance the private sector role in the regional innovative development.
    Keywords: Russian regions; innovation infrastructure; innovative development; ranking; performance indicators
    Date: 2014–11
  10. By: Grossman, Gene; Helpman, Elhanan
    Abstract: We introduce firm and worker heterogeneity into a model of innovation-driven endogenous growth. Individuals who differ in ability sort into either a research sector or a manufacturing sector that produces differentiated goods. Each research project generates a new variety of the differentiated product and a random technology for producing it. Technologies differ in complexity and productivity, and technological sophistication is complementary to worker ability. We study the co-determination of growth and income inequality in both the closed and open economy, as well as the spillover effects of policy and conditions in one country to outcomes in others.
    Keywords: endogenous growth; income distribution; income inequality; innovation; trade and growth
    JEL: D33 F12 F16 O41
    Date: 2014–11
  11. By: Madhuri Saripalle (Madras School of Economics)
    Abstract: This study attempts to capture the impact of vertical and horizontal R and D spillovers across the supply chain. Empirical studies have captured vertical spillovers while finding the role of horizontal spillovers in R and D to be negligible, as the pool of accessible knowledge is the same for a cross section of firms within an industry. However, from a supply chain perspective, though firms may be suppliers to an industry, they belong to different industries themselves; and different tiers of the supply chain. The automobile industry is a good case in point: though auto component firms supply to the automobile sector, they come under diverse industrial classification schemes like rubber, electronics and engineering. The present study attempts to measure the horizontal spillovers within Indian Indian auto components Industry as well as spillovers coming vertically from the original equipment manufacturers (OEM) from a flow and a stock perspective. The trend in R and D expenditures undertaken by various component types suggests that most of the R and D occurs in the engine, suspension and tyre category indicating the adaptive nature of R and D, given India’s infrastructure. The study finds spillovers from within the component group are a substitute for firm’s own in-house R and D, while spillovers coming from outside the component group act as complements, thus indicating the integral nature of automobile design, requiring collaborative R and D effort. Among the OEMs, spillovers vary based on vehicle category suggesting that nature of OEM-supplier collaboration differs by vehicle types.
    Keywords: Industry studies, Research and Development, Country studies, Industrial Organization, Supply chain
    JEL: L6 L22 O33 R D
    Date: 2013–11
  12. By: Corrado, Carol; Haskel, Jonathan; Jona-Lasinio, Cecilia
    Abstract: This paper looks at the channels through which intangible assets affect productivity. The econometric analysis exploits a new dataset on intangible investment (INTAN-Invest) in conjunction with EUKLEMS productivity estimates for 10 EU member states from 1998 to 2007. We find that (a) the marginal impact of ICT capital is higher when it is complemented with intangible capital, and (b) non-R&D intangible capital has a higher estimated output elasticity than its conventionally-calculated factor share. These findings suggest investments in knowledge-based capital, i.e., intangible capital, produce productivity growth spillovers via mechanisms beyond those previously established for R&D.
    Keywords: economic growth; ICT; intangible assets; intangible capital; productivity growth; spillovers
    JEL: E01 E22 O47
    Date: 2014–07
  13. By: Hervas-Oliver,Jose-Luis; Sempere-Ripoll,Francisca
    Abstract: Agglomeration can generate gains. If it does, how does it work and how are those gains distributed across agglomerated firms? Despite the existence of an important body of research on this topic, the evidence is inconclusive. We examine the effect of localization externalities on a firm’s innovativeness. By analyzing a large dataset of 6,697 firms integrated with another regional agglomeration-related dataset, we obtain results which show that (i) location in an agglomeration has a positive influence on a firm’s absorptive capacity and innovativeness, and, (ii) firms benefit heterogeneously from being located in agglomerations, with benefits being distributed asymmetrically. Agglomeration gains exist but not all firms benefit equally: the least innovative firms gain the most.
    Keywords: agglomeration, localization externalities, innovation, performance
    JEL: M1
    Date: 2014–11–27
  14. By: Guffarth, Daniel; Barber, Michael J.
    Abstract: The success breeds success hypothesis has been mainly applied to theoretical network approaches. We investigate the European aerospace industry using data on the European Framework Programmes and on Airbus suppliers, focusing on the success breeds success hypothesis at four levels of analysis: the spatial structure of the European aerospace R&D collaboration network, its topological architecture, the individual actors that make up the network, and through a comparison of the Airbus invention and production networks. On the spatial level, SBS is favored: successful regions maintain their position and grow on a large scale, especially so for regions that have strongly participated from the very beginning. The regional hub structure is mirrored in the architecture of the European aerospace R&D collaboration network, where well-connected hub organizations play a key role in shaping the structure of the network through their many collaborative partnerships and do so in a way that strategically positions themselves with greater ability to access and regulate knowledge flows, as assessed by several centrality measures. Only successful organizations have the ability to form so many ties, with success thus breeding success in the European aerospace R&D collaboration network. The importance of the core organizations made clear through the centrality analysis is further supported by the analysis of weak ties, where we observe that the core organizations are connected to the rest of the network with many weak ties, thereby confirming their outstanding positions in the European aerospace R&D collaboration network as being able to access knowledge or other resources. With the combination of the R&D collaboration network and the Airbus production network on a spatial level, we see additional support for SBS, as those regions whose actors are frequent participants in both networks show the greatest share of successful actors. The European aerospace industry shows an ambidextrous character as a whole, which is nonetheless insufficient to avoid recent and future challenges demanding a strong emphasis on production skills.
    Keywords: R&D collaboration network,success breeds success,aerospace industry,European Framework Programmes
    JEL: D85 L14 L93 O38 R11 R12 Z18
    Date: 2014
  15. By: Isabelle Leroux; Paul Muller; Béatrice Plottu; Caroline Widehem
    Abstract: A device central to the French cluster (Competitiveness pole) policy is the financing of collaborative projects aimed at enhancing the innovation capacities of firms. In turn, increasing in innovation capacities give rise to new business opportunities that firms only can seize by evolving their business model. Business model accounts for the ways value is developed, delivered and captured by firms (Chesbrough 2007). However, internal and external constraints may impede their evolution. Those constraints are particularly harmful for SME: 1. Firms must dedicate specific resources to innovate their business models (Helfat and Winter 2011) but SME may arguably face strong constraints on devoted resources. 2. The capacity of innovating a business model may require firms to be able to influence local collective rules (Sabatier et al. 2012). However, unless being locally pivotal, a SME's influence may be too low to enable it to exert a significant influence on those rules, especially when significant business model innovation is at stake. Our paper discusses the role played by local institutions while addressing the issue of business model evolution in SME. It specifically focuses on the governing bodies of Competitiveness poles. We argue that those governing bodies play a central role in releasing stakeholders from business model evolution impediments as they act as innovation intermediaries. We base our research on the study of BRIO, a publicly funded collaborative project undertaken by members of Vegepolys, a Competitiveness pole located in French Pays-de-la-Loire Region and dedicated to specialized vegetal industries. Horticultural SMEs, INRA and the University of Angers have been involved in this project. It has aimed to design new tools and methodologies for creating new varieties of plants through varietal creation. Our case reveals that Vegepolys' governance body has played a key role in the success of the project by translating scientific (produced by INRA researchers) into technological knowledge and by being a go-between facilitating the establishment of new collective rules.
    JEL: L10 O31 Q16
    Date: 2014–11
  16. By: Claire Nauwelaers (Independent Policy Analyst); Alexander Kleibrink (European Commission – JRC - IPTS); Katerina Stancova (European Commission – JRC - IPTS)
    Abstract: Science and technology parks (STPs) are very common instruments used by regional and national authorities for regional development. Their main objective is to foster science-based growth poles to stimulate economic diversification away from declining industries. Today, STPs are present in many European regions. They concentrate a wide range of innovative companies and research organisations, and as a consequence the overall knowledge intensity of these places is very high. STPs are thus likely to include seeds for the domains of knowledge-intensive specialisation, on which regions can rely to increase their competitiveness. This is why STPs seem well placed to play a key role in innovation strategies for smart specialisation (S3). We argue that the diversity of STP models by definition means that their contribution to smart specialisation is very likely to depend on the specific context. Three key roles for STPs in the design and implementation of smart specialisation strategies are proposed: (1) STPs may provide an adequate innovation ecosystem for the development of pilot innovation initiatives, well in line with the entrepreneurial discovery process that should drive the regional economies towards new, distinctive and competitive areas of activities. (2) STPs can play an important role as one of the relevant stakeholders forming the quadruple helix of innovation actors shaping smart specialisation strategies. (3) STPs can add the needed external and outward-looking dimension to smart specialisation strategies, a dimension that is today still very much under-developed. Yet, these contributions from STPs cannot be taken for granted. We identify limitations and success conditions for each of the three roles. Illustrative examples of STPs in Finland, England and the Netherlands show how STPs can actively and creatively contribute to the design of innovation strategies and to the external connectivity of their home regions.
    Keywords: European cohesion policy, Structural Funds, smart specialisation, Innovation Union, science and technology parks, innovation ecosystem, regional development
    Date: 2014–07
  17. By: Ghosh, Anirban (Georgetown University); Mayda, Anna Maria (Georgetown University); Ortega, Francesc (Queens College, CUNY)
    Abstract: Many U.S. businessmen are vocally in favor of an increase in the number of H-1B visas. Is there systematic evidence that this would positively affect firms' productivity, sales, employment or profits? To address these questions we assemble a unique dataset that matches all labor condition applications (LCAs) – the first step towards H-1B visas for skilled foreign-born workers in the U.S. – with firm-level data on publicly traded U.S. firms (from Compustat). Our identification is based on the sharp reduction in the annual H-1B cap that took place in 2004, combined with information on the degree of dependency on H-1B visas at the firm level as in Kerr and Lincoln (2010). The main result of this paper is that if the cap on H-1B visas were relaxed, a subset of firms would experience gains in average labor productivity, firm size, and profits. These are firms that conduct R&D and are heavy users of H-1B workers – they belong to the top quintile among filers of LCAs. These empirical findings are consistent with a heterogeneous-firms model where innovation enhances productivity and is subject to fixed costs.
    Keywords: immigration, skills, productivity, visas, R&D
    JEL: F22
    Date: 2014–11
  18. By: Denis Ivanov
    Abstract: This paper searches for roots of current spatial pattern of professional services in location of Soviet-era R&D sector. The Soviet economy sponsored massive R&D oriented mainly on military purposes. Research was carried out in large institutions affiliated with academia or industry. After the collapse of socialism, military spending and related R&D decreased dramatically. Many researchers left Soviet-style institutions and succeed in the market economy. Did however this process mean anything for geography? Under the centrally planned economy, locational decisions were driven by non-market motives. Moreover, it was near-impossible for planners to anticipate which regions would be more promising under market. I focus on professional services since these industries do not rely on physical capital endowments, so sunk costs are unlikely to impose path-dependence. Professional services in Russia typically hire young educated persons which are expected to be mobile, so imperfect labor market is also unlikely to stick people to places ? unlike human capital externalities which are plausibly to do so. I regress employment in professional services in 2009-2011 by 76 Russian regions on the number of R&D staff in 1991. I consider three industries: architecture and engineering; information technology; accounting, auditing and management consulting. Controls to capture industry location fundamentals include modern-day gross regional product or overall employment, number of employees with university degree, number of R&D staff and urbanization. It should be noted that present-day number of R&D staff comprises primarily employees of state-owned Soviet-style institutions while professional service providers are typically up-to-date privately-owned firms. Results reveal that employment in Soviet R&D positively and significantly affects present-day employment in engineering and in IT. No such evidence is found for accounting, auditing and management consulting in which industries researchers' skills were less relevant. Results remains when shares in employment of professional services and R&D sector are plugged into regression instead of absolute numbers. I consider different explanations for this phenomenon. I attempt to track influence of 1991 R&D-related employment on current output-per-worker in IT and engineering and find positive correlation, although marginally significant. So, it is unlikely that Soviet-era pools of human capital created regional poverty traps due to low migration rates, and human capital externalities theory seems plausible. I also find that regions with greater number of R&D staff in 1991 now have greater number of SMEs both in business services and in the rest of economy, so entrepreneurship is a likely mechanism to impose path-dependence.
    JEL: N74 R12
    Date: 2014–11
  19. By: Karlsson, Charlie (Jönköping International Business School & Centre of Excellence for Science and Innovation Studies); Gråsjö, Urban (University West); Wixe, Sofia (¨Jönköping International Business School & Centre of Excellence for Science and Innovation Studies)
    Abstract: Much of the discussion about globalization has been held at a rather superficial macro-economic level. Discussions about globalization dealing with the meso- and micro-economic level, i.e. the level of regions and companies, have been much less common. Many of the discussions of globalization at the meso- and micro-economic level have also been biased in the sense that they have only given a partial picture. One obvious example is that discus¬sions of the role of innovation and entrepreneur¬ship have tended to use a narrow definition of entrepreneurship equal to the start-up of new companies and as a result ignored the high degree of innovation and entrepreneurship within many incumbent companies. The purpose of this paper is to contribute to the meso- and micro-economic literature on innovation and entrepreneurship in the global economy.
    Keywords: Globalization; innovation; entrepreneurship; urban regions
    JEL: L26 O30 R10
    Date: 2014–11–26
  20. By: Amit Batabyal; Peter Nijkamp
    Abstract: We study innovation and the resulting Schumpeterian economic growth that this innovation gives rise to in a model with N heterogeneous regions. For each region i where i=1,...,N, our analysis leads to five findings. First, we define the balanced growth path (BGP) allocations and the equilibrium of interest. Second, we stipulate the form of the innovation possibilities frontier that is consistent with balanced economic growth. Third, we derive the growth rate of the ith region in the decentralized equilibrium and show that there are no transitional dynamics. Fourth, we solve the social planner's problem and derive the Pareto optimal growth rate for the ith region. Fifth, we compare the two preceding growth rates and then discuss the circumstances in which there is either too much or too little innovation in (i) the ith region, (ii) the aggregate economy of N>2 regions and (iii) the specific case of an aggregate economy of N=2 regions. Finally, we conclude and then offer suggestions for extending the research described here.
    Keywords: Human Capital; Innovation; Multi-Region Economy; Schumpeterian Economic Growth
    JEL: R11 J24 O31
    Date: 2014–11
  21. By: Ayadi, Mohamed; Mattoussi, Wided
    Abstract: In this paper, we explore the link between firm productivity and exporting using three firm level datasets of 1323 Tunisian manufacturing firms from 2004 to 2006. In particular, we examine whether more productive firms self-select into export markets, and
    Keywords: manufacturing industry, learning by exporting, self-selection, innovation, Tunisia
    Date: 2014
  22. By: Valérie Angeon; Rebecca Bilon; Marie Chave
    Abstract: Industrial agriculture and its technological package (intensive farming, mechanization, use of chemicals) are no longer in position to ensure food security (Altieri et al., 2012). To overcome the strongly negative externalities produced by this model, agroecological transition may be considered as a privileged pathway. Nevertheless, two major evolutions of modern agriculture can be distinguished (Duru et al., 2014): the weak (implementation of "good practices" that intend to improve the efficiency of chemicals and/or reduce their use) versus strong (substitution of chemical inputs by biodiversity providing ecosystem services) ecologization of agriculture. In this article, we focus on the enhancement of mycorrhiza (symbiosis between roots and soil fungi), key elements of biodiversity becoming a momentum in matter of agroecological engineering. We study the complex interrelationship structure implying a diversity of actors that are closely linked, share norms of action, values. The result of their coordination (market and non-market) and the networks within these actors interact shape a "socio-technical regime" (Geels and Shot, 2007; Vanloqueren and Baret, 2009). This concept is close to Dosi's (1982) evolutionary approach of industrial processes and changes that are embedded in the systems of innovation approach. The aim of this article is to appraise the robustness of the socio-technical regime grounded on the use of mycorrhiza. We pay attention to the most widespread technology: the inoculation of industrial strains. We base our analysis on the identification of the set of actors who pilot the technological trajectory of this agroecological pattern (industrials, scientists, public authorities, farmers). We then produce a heuristic map. Using the stakeholder analysis (Mitchell et al., 1997), we conduct around 30 interviews that permit (i) to characterize the nature of the relationships among agents (information sharing, subsidies, goods and services) and (ii) to specify in what extent these interactions stabilize the existing technological paradigm. We show that the agroecological pattern based on the inoculation of industrial strains corresponds to a weak form of ecologization of agriculture and hinders the emergence of alternative innovative niches (i.e. mobilization of indigenous mycorrhizal networks) that could support a strong modernization of agriculture. Our results then demonstrate that the prevailing socio-technical regime is deeply reinforced although changes occur in the production process. Key words: systems of innovation, evolutionary economics, socio-technical regime, technological paradigm, agroecological transition
    Keywords: systems of innovation; evolutionary economics; socio-technical regime; technological paradigm; agroecological transition code:
    JEL: B52 O33 Q01 Q55
    Date: 2014–11
  23. By: Imre Lengyel; Miklós Lukovics; Szabolcs Imreh
    Abstract: The Extreme Light Infrastructure (ELI) project is an integral part of a certain generation of planned and currently constructed research facilities that are held together by the European Strategy Forum on Research Infrastructures (ESFRI). The ELI is the world's first establishment that will enable the examination of the reactions between light and matter on a far more intense level including the so-called ultra-relativistic range. The research project will be carried out in 3 countries, facilities will be built in the Czech Republic, Romania and Hungary independently. The ELI Attosecond Light Pulse Source (ELI-ALPS) laser facility will be built in Szeged, Hungary in the less-developed Southern Great Plain region, from a budget of 200 million euros. The future buildings will not only give place to laser devices, but they also ensure an adequate amount of area for offices, seminar and conference rooms, a library and social places for about 150 researchers and administrative personnel. This investment will give Hungary and also Szeged the chance to strengthen their local scientific capacities and to trigger the initiation of knowledge-based economic development projects. The ELI-ALPS laser facility will require 10 acres and will built on the 110 acre property of one of Hungary's most noted universities, the University of Szeged, which currently educates 30 000 students. The main concepts indicate that around the ELI-ALPS a science park will emerge and will be focused on knowledge-based activities. The planned ELI Science Park will be quite specific and unique compared to other territorial concentrations (industrial parks, industrial areas, other science parks, etc.) and will closely relate to the high-quality IT, medical imaging, biotechnology, pharmaceutical and materials science activities of the University of Szeged. In this study we attempt to summarize the characteristics of a local area that is able to accommodate the ELI-ALPS and the ELI Science Park based on international scientific results and experiences. After analysing the current situations, we propose a development concept that will mark out realistic connections between the local economy and R&D infrastructures. An important element of this is local embedment. Within the confines of this - among other things - we suggest economic and entrepreneurial development projects that are able to create the opportunity of collaboration between the world class R&D infrastructure and local enterprises and measure up to our expectations.
    Keywords: science park; local economic development; knowledge-based facilities
    JEL: O18 O32 R11 R30
    Date: 2014–11
  24. By: Simplice Anutechia Asongu (Association of African Young Economists)
    Abstract: This paper examines how Africa’s share in the contribution to global scientific knowledge can be boosted with existing Intellectual Property Rights (IPRs) mechanisms. The findings which broadly indicate that tight IPRs are correlated with knowledge contribution can be summarized in two main points. First, the enshrinement of IPRs laws in a country’s Constitution is a good condition for knowledge economy. Secondly, while Main IP laws, WIPO treaties and bilateral treaties are positively correlated with scientific publications, the IPRs law channel has a negative correlation. Whereas the study remains expositional, it does however offer interesting insights into the need for IPRs in the promotion of knowledge contribution within sampled countries of the continent. Other policy implications are discussed.
    Keywords: Publications, Intellectual property rights, Governance, Africa
    JEL: A20 F42 O34 O38 O55
    Date: 2014–10
  25. By: Xing Li (Stanford University); Megan MacGarvie (Boston University); Petra Moser (Stanford University)
    Abstract: This paper exploits a differential increase in copyright under the UK Copyright Act of 1814 - in favor of books by dead authors – to examine the influence of longer copyrights on price. Difference-in-differences analyses, which compare changes in the price of books by dead and living authors, indicate a substantial increase in price in response to an extension in copyright length. By comparison, placebo regressions for books by dead authors that did not benefit from the extension indicate no differential increase. Historical evidence suggests that longer copyrights increase price by improving publishers’ ability to practice intertemporal price discrimination.
    Keywords: Copyright, creativity, innovation, information goods, culture, intertemporal price discrimination.
    JEL: O3 K00 N33
    Date: 2014–09
  26. By: Stephan Bieri; Franz Lehner
    Abstract: The US research university is a very successful model of higher edudaction and research. We examine its core elements and follow the current discussion on a necessary reform. Focusing on the institutional structure, we review possible causes of shortcomings and frictions. During the last 50 to 60 years the environment of the research university changed. The single institution has become highly dependend on federal and industrial grants and of undergraduates’ fees. This process has transformed the internal organization as well as the interaction with important stakeholders. It also had an effect on the relationship between university and faculty. As a result, the scientific production has grown reamarkably but not necessarily the overall competivity. We discuss the systemic challenges that threaten the US university landscape and its contribution to scientific progress and innovation.
    Keywords: Research university; US system of higher education; institutional structure
    Date: 2014–11
  27. By: Voeten, J. (Tilburg University, School of Economics and Management); de Haan, J.A.C. (Tilburg University, School of Economics and Management); Roome, N. (Tilburg University, School of Economics and Management); de Groot, G.A. (Tilburg University, School of Economics and Management)
    Date: 2014
  28. By: Zenou, Yves
    Abstract: In this chapter, we provide an overview on the literature on key players in networks. We first introduce the theoretical concept of the key player, which is the agent that should be targeted by the planner so that, once removed, she will generate the highest level of reduction in total activity. We also consider another notion of key player where the planner is targeting a set of network nodes that are optimally positioned to quickly diffuse information, attitudes, behaviors or goods. We then examine the empirical tests of the key-player policies for criminal networks, education, R&D networks, financial networks and diffusion of microfinance. We show that implementing such a policy outperforms other standard policies such as targeting the most active agents in a network.
    Keywords: crime policies; diffusion; Katz-Bonacich centrality; Key players
    JEL: A14 D85 K42 Z13
    Date: 2014–12

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