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on Innovation |
| By: | Gabriele Pellegrino (SPRU, University of Sussex); Mariacristina Piva (DISCE, Università Cattolica); Marco Vivarelli (DISCE, Università Cattolica - SPRU, University of Sussex - IZA, Bonn) |
| Abstract: | This paper analyses the determinants of product innovation in Italian young innovative companies (YICs) by looking at in-house and external R&D and at the acquisition of external technology in its embodied and disembodied components. A Tobit approach is applied to study jointly the occurrence of product innovation and the intensity of such innovation. Results provide evidence that in-house R&D is linked to product innovation both in mature firms and YICs; however, YICs turn out to be less in-house R&D-based and more dependent on external sources of knowledge. Moreover, other entrepreneurial attitudes such as the ability to cooperate with other firms in producing innovation or the capacity to develop significant organizational changes appear to be less important or even absent in Italian YICs. These results are somehow worrying, since they show that Italian innovative entrepreneurs are mostly driven by routinized rather than creative strategies. |
| Keywords: | YICs; entrepreneurship, R&D, product innovation |
| JEL: | L26 O31 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie5:ispe0070&r=ino |
| By: | Bhan, Aditya; Kabiraj, Tarun |
| Abstract: | We consider an interaction of competing firms in an integrated world market and study their R&D incentives under each of product patent and process patent regimes. We follow a framework generally observed in the drug industry. We show that product patent regime leads to a larger R&D investment. Consumers may also benefit from product patenting. However, if the number of goods is large enough, the choice of patent regime loses significance with respect to R&D incentives. |
| Keywords: | Innovation; process patenting; product patenting; drug industry |
| JEL: | F23 L13 O34 |
| Date: | 2014–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:61030&r=ino |
| By: | Kaiser, Ulrich; Kongsted, Hans Christian; Rønde, Thomas |
| Abstract: | We investigate the effect of mobility of R&D workers on the total patenting activity of their employers. Our study documents how mobile workers affect the patenting activity of the firm they join and the firm they leave. The effect of labor mobility is strongest if workers join from patent-active firms. We also find evidence of a positive feedback effect on the former employer's patenting from workers who have left for another patent-active firm. Summing up the effects of joining and leaving workers, we show that labor mobility increases the total innovative activity of the new and the old employer. Our study which is based on the population of R&D active Danish firms observed between 1999 and 2004 thus provides firm-level support for the notion that labor mobility stimulates overall innovation of a country or region due to knowledge transfer. |
| Keywords: | labor mobility,innovation,research and development,patenting |
| JEL: | J62 C26 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14115&r=ino |
| By: | Borrás , Susana (Department of Business and Politics, Copenhagen Business School, Denmark and CIRCLE, Lund University, Sweden); Edquist , Charles (CIRCLE, Lund University, Sweden (Holder of the Ruben Rausing Chair in Innovation Research)) |
| Abstract: | Institutions (including regulations) are constitutive elements of innovation systems, and therefore cornerstones of innovation policy. Focusing on (soft and hard) regulation, the paper identifies the most salient regulatory areas from the perspective of the innovation system. When asking about the effects of regulation on innovation, the paper argues that there are three key issues that need careful empirical analysis; namely, whether regulation is effective and efficient in terms of reducing uncertainty and generating incentives, whether it is able to generate ultimately wider social benefits for the innovativeness of the society at large; and the extent to which regulation is adapting to new (social, economic and technological) contexts and is socially legitimate and accepted. These are potentially the three problems that innovation policy needs to address in this area. This provides guidance for the design and re-design of innovation policy, so that policy makers may analyse empirically the social dynamics actually generated by regulation rather than simply assuming deductively their effects. |
| Keywords: | Innovation system; innovation policy; knowledge production; R&D; universities; innovation policy instruments; institutions; institutional change |
| JEL: | L38 M38 O25 O31 O32 O33 |
| Date: | 2014–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2014_029&r=ino |
| By: | A. Bozio; D. Irac; L. Py |
| Abstract: | This paper presents an ex post evaluation of the 2008 reform of the French research tax credit. The tax scheme was massively overhauled, with a switch to a pure volume-based design, leading to a large increase in the number of firms applying and an important increase in the cost of the scheme. Given the timing and the characteristics of the reform, measuring its causal impact is challenging. We have relied on four unique sources of data – R&D surveys, administrative tax data, firm characteristics and patent datasets – to assess how French firms have reacted to these changes in incentives. Our empirical strategies rest on combining difference in differences with matching methods and taking advantage of the particular way the 2008 reform has affected incentives to invest in R&D. Our results suggest a positive effect of the 2008 reform on R&D at both the intensive margin and extensive margin, but a possible lower impact on innovation than could have been expected. |
| Keywords: | tax credit, evaluation, R&D, innovation. |
| JEL: | C23 H25 O32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:532&r=ino |
| By: | Foster-McGregor N.; Pöschl J.; Stehrer R. (UNU-MERIT) |
| Abstract: | A major international transmission channel of productivity increases is trade in intermediate products and services. This paper analyses international spillovers at the industry level and for the first time investigates effects from the services sector in this framework. The analysis makes use of newly available data on international input-output linkages between industries. Our results using this novel approach indicate significant positive productivity effects from innovation in knowledge intensive, high technology business services and confirm the productivity effects from international manufacturing spillovers found in the recent literature. |
| Keywords: | Empirical Studies of Trade; Economic Growth of Open Economies; Innovation and Invention: Processes and Incentives; Institutions and Growth; |
| JEL: | F14 F43 O31 O43 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014080&r=ino |
| By: | Xie, Zhuan; Zhang, Xiaobo |
| Abstract: | Innovations are a key driver of long-term economic growth. There has been an explosion of patent filings in China in the past three decades. But empirical studies on the pattern of innovations at the firm level are rather scant primarily due to lack of firm-specific patent data. We have made concerted efforts to match Chinese patent data with a large firm-level database. The matched dataset enables us to examine the patterns of patents at the firm level. |
| Keywords: | Innovation, patents, intellectual property, Economic development, Gender, Women, microeconomics, |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:1385&r=ino |
| By: | Nidhi R. Santen; Mort D. Webster; David Popp; Ignacio Pérez-Arriaga |
| Abstract: | This paper explores cost-effective low-carbon R&D and capital investment portfolios for the electricity generation sector through 2060. We present a novel method for long-term planning by combining an economic model of endogenous non-linear technical change and a generation capacity planning model with key features of the electricity system. The model captures the complementary nature of technologies in the power sector; physical integration constraints; and the opportunity to build new knowledge capital as a non-linear function of R&D and accumulated knowledge, which reflects the diminishing marginal returns to research characteristic of the energy innovation process. We show portfolios for future scenarios with and without carbon emission limits, and demonstrate the importance of including various features by comparing results from a reference version of the model to results from alternative versions that omit these features. Our results caution that using economic frameworks that do not incorporate critical electricity and innovation system features may over- or under-estimate the value of emerging technologies, and therefore the cost-effectiveness of R&D opportunities. |
| JEL: | Q40 Q42 Q55 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20783&r=ino |
| By: | Reinhilde Veugelers |
| Abstract: | In this contribution we describe how green policies should be designed to activate private innovation forces for ecological transitions. We look at the evidence on the current deployment of green policies and the current performance of the private green innovation machine. We try to assess how strong which types of government interventions have and can be to power the green innovation machine. An important insight from the economic analysis of the effectiveness of the public intervention for green innovations, is the complementarity between policy instruments, requiring an adequate policy mix of instruments, rather than a focus on individual instruments. The evidence provides little support for the efficacy of single instruments, like subsidies, when used in isolation. For the EU, this is perhaps the biggest challenge for its green technology policy: the lack of a sufficiently high carbon price. And as the evidence has shown that the world of green science and technologies is an emerging global, multipolar one, with many geographically dispersed sources in the various green scientific fields and technologies, coordination of green policies internationally should therefore be high on the policy agenda. |
| Keywords: | Ecological innovation, Economic growth path, Globalisation, Green jobs, Innovation, Innovation policy, New technologies, Patents, Policy options, Research, Socio-ecological transition |
| JEL: | O31 O38 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2014:m:12:d:0:i:73&r=ino |
| By: | Pascal Aßmuth (Center for Mathematical Economics, Bielefeld University) |
| Abstract: | Firms often rely on external financing in order to conduct R&D. The question is to what extend discriminatory behaviour of the funds provider affects the industry evolution. The model is based on an evolutionary framework by Nelson and Winter. A firm chooses its R&D spending in an adaptive fashion where technological improvement is essential for survival in the competitive market. Firms can finance their activities by using retained profits or applying for credit. However, they have a clear hierarchy in choosing the source of funds and saved profits are always used up first. There is endogenous discriminatory lending as the banking sector provides credit according the firms' individual features. It compares profitability and market share across firms when assessing creditworthiness. The model is able to capture features of innovation and diffusion of technology. Results show that the availability of credit is crucial for technological change in a non-linear fashion and that the industry evolves faster if the bank values market share more in assessing creditworthiness. |
| Keywords: | Heterogeneous Agents Models, Innovation, Financial Constraints |
| JEL: | D92 G32 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:bie:wpaper:532&r=ino |
| By: | Dolores Añón Higón (Department of Applied Economics II and ERICES, Universitat de València); Miguel Manjón (QURE-CREIP Department of Economics, Universitat Rovira i Virgili); Juan A. Máñez (Department of Applied Economics II and ERICES, Universitat de València); Juan A. Sanchis-Llopis (Department of Applied Economics II and ERICES, Universitat de València) |
| Abstract: | This paper analyses whether undertaking R&D activities allows SMEs to attenuate the negative impact of recessions on productivity. In contrast to other studies we use a firm level indicator of the cycle based on firms’ own perceptions, while total factor productivity is obtained using a control function methodology in which we recognise the potential role that R&D experience might have in shaping future firms’ productivity. The analysis is performed using a representative sample of Spanish SMEs for the period 1990-2009. Results show both that R&D activities render positive productivity returns, and that performing R&D helps to alleviate the negative effects of downturns on productivity. Additionally, R&D seems to have a countercyclical effect upon SME’s productivity over the business cycle, as we find that SMEs R&D productivity premium in recessions doubles that of expansions. |
| Keywords: | TFP, business cycle, R&D |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1411&r=ino |
| By: | Michele Cincera; Reinhilde Veugelers |
| Abstract: | This paper examines the sources of Europe's lagging business R&D performance relative to the US, particularly the role played by missing young leading innovators in high technology intensive sectors in Europe. It investigates through econometric analysis differences in the rates of return to R&D of European and US large R&D firms. It finds that, while in the US, young firms succeed in realizing significantly higher rates of return to R&D as compared to their older counterparts, including in high-tech sectors, European firms fail to generate significant rates of return, even if they are Yollies and even if they are in high-tech sectors. These findings can at least partly explain why Europe has less R&D intensive young leading innovators in high technology intensive sectors. © 2014 Elsevier B.V. |
| Keywords: | EU-US R&D gap; Rate of return to R&D; Young firms |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/183956&r=ino |
| By: | Margaret Kyle; Yi Qian |
| Abstract: | We examine the effect of pharmaceutical patent protection on the speed of drug launch, price, and quantity in 60 countries from 2000-2013. The World Trade Organization required its member countries to implement a minimum level of patent protection within a specified time period as part of the TRIPS Agreement. However, members retained the right to impose price controls and to issue compulsory licenses under certain conditions. These countervailing policies were intended to reduce the potential static losses that result from reduced competition during the patent term. We take advantage of the fact that at the product level, selection into TRIPS "treatment" is exogenously determined by compliance deadlines that vary across countries. We find that patents have important consequences for access to new drugs: in the absence of a patent, launch is unlikely. That is, even when no patent barrier exists, generic entry may not occur. Conditional on launch, patented drugs have higher prices but higher sales as well. The price premium associated with patents is smaller in poorer countries. Price discrimination across countries has increased for drugs patented post-TRIPS and prices are negatively related to the burden of disease, suggesting that countervailing policies to offset expected price increases may have had the intended effects. |
| JEL: | I10 O34 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20799&r=ino |
| By: | Anna Iu. Iakovleva (National Research University Higher School of Economics) |
| Abstract: | Project Management offers a variety of methodologies which provides managers with different techniques and tools to use during project planning and implementation. At the same time there is a substantial lack of systematized approaches to the management of innovation projects. In this article key factors in the selection of appropriate techniques in innovation project management will first be identified. Theoretical analysis of different project management standards and possibility of their use will then be discussed. In addition how the techniques can be applied will be investigated through academic paper analysis. This research makes a theoretical contribution to the field of project management by selecting and determining which project management techniques can be adapted and applied to innovation projects. Recommendations for practical application are based on theoretical findings of the research. These include two main factors, which are: influencing the choice of project management techniques and the structure of project selection process. The significance of the results obtained is confirmed by creation of theoretical knowledge, which permits to thoroughly understand and capture issues which may emerge during innovation project planning and implementation, through the use of established project management methodology. |
| Keywords: | project management, innovation, project management standard, innovation project, PMBoK, PRINCE2, ICB. |
| JEL: | Z |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:24man2014&r=ino |
| By: | Paunov C. (UNU-MERIT) |
| Abstract: | This paper analyses how corruption affects firms ownership of intellectual property titles that relate to firms technological, organizational and further innovation efforts quality certificates and patents. Using firm-level data covering 48 developing and emerging countries, we show corruption reduced the likelihood of firms seeking quality certificates. Smaller firms were more affected by corruption and benefited less from higher levels of trust in their business environment. Corruption did not have impacts on the quality certificate ownership of exporters, foreign- and publicly-owned firms. Firms machinery investments were also negatively affected. By contrast, we do not find effects on firms ownership of patents. |
| Keywords: | Organizational Behavior; Transaction Costs; Property Rights; Microeconomic Analyses of Economic Development; Intellectual Property Rights; |
| JEL: | O34 O12 D23 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014077&r=ino |
| By: | Francesca Lotti (Bank of Italy); Maria Lucia Stefani (Bank of Italy) |
| Abstract: | Following the constitutional reform of 2001, which gave increased autonomy Italian regions, and the new European guidelines from the Lisbon Agenda, there has been an upturn in regional legislative activity concerning innovation, leading to a critical review of the instruments adopted, mainly towards greater selectivity. Regional intervention tends to be highly fragmented, focusing on the funding of applied research and using grants as the preferred policy tool. In terms of sources of funds, structural funds have gained importance since the 2007-13 programming cycle, partly due to the economic crisis, and in the southern regions account for nearly all the resources devoted to fostering innovation. This paper presents a summary indicator, consisting of three "sub-indicators" approximating, respectively, the input of the innovation process, innovation output, and a quantitative measure of regional policies for innovation. |
| Keywords: | Innovation, regional policies |
| JEL: | O38 R58 |
| Date: | 2014–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_246_14&r=ino |
| By: | Antelo, Manel; Sampayo, Antonio |
| Abstract: | We analyze a two-period licensing game in which a non-producer upstream patent holder licenses an innovation to either one or two downstream licensees for a payment based on the licensee’s expected per-period profit. Licensees have private information about the innovation’s value, and their period-1 output may signal that value. We find that two licensees are more likely to be preferred under asymmetric information with signalling than under symmetric information. |
| Keywords: | Licensing, symmetric and asymmetric information, profit-based payments, monopoly, duopoly |
| JEL: | D45 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:60759&r=ino |
| By: | Minas Vlassis (Department of Economics, University of Crete, Greece); Maria Varvataki (University of Crete) |
| Abstract: | This paper investigates unionized oligopolistic markets with differentiated products and quality improvement-R&D investments. In endogenous union structures, we investigate the conditions under which firm-level unions may strategically collude, or not, and the impact of their decisions upon the firms� incentives to individually spend on R&D investments. We show that, separate firm-level unions are sustained in the equilibrium, where product quality and the level of R&D investments are relatively high. Moreover, we consider two instances of policy maker�s intervention. In the first case, we assume that a benevolent policy maker proceeds to quality improvement-R&D, as a common public good, by undertaking the costs of those investments and providing for free the know-how to the industry. In the second case he finances a percentage of the cost of firm-specific R&D investments. In both cases he finances those costs by indirect taxation on market products. We conclude that all market participant surpluses are higher (and consequently so is Social Welfare), when the R&D - quality improvement is a public good, even if this leads to indirect taxation on market products. |
| Keywords: | Oligopoly, Unions, Collusion, R&D Investments |
| JEL: | D43 J51 L13 O31 |
| Date: | 2014–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:crt:wpaper:1409&r=ino |
| By: | Evers, Lisa; Spengel, Christoph |
| Abstract: | Tax planning with intangibles has become one of the most popular and most vividly debated topics in international taxation. We incorporate various intellectual property (IP) tax planning models into forward-looking measures of effective tax rates, namely the disposal of intangibles to low-tax subsidiaries, intra-group licensing arrangements, and intra-group contract R&D. In doing so, we draw upon the methodology put forward by Devereux and Griffith and amend this model by considering a research & development (R&D) investment which is carried out by a parent company, whereby the resulting intangible is exploited by a foreign subsidiary. We point out analytically under which conditions IP tax planning achieves the objective of reducing the effective average tax rate of the group. We find that the disposal of intangibles to low-tax subsidiaries does not achieve this tax planning objective, if the true value of the asset is subject to tax upon the disposal. We show to what extent the parent must understate the value of the intangible in order to reduce the group's tax burden. We furthermore point out that contract R&D may generally achieve a significant lower effective tax burden. We present cost of capital and effect average tax rates to illustrate these findings. |
| Keywords: | corporate taxation,effective tax rate,tax planning,profit shifting,transfer pricing,intellectual property,intangible assets,contract R&D |
| JEL: | F23 H25 H32 H87 K34 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:14111&r=ino |
| By: | Coccia M. (UNU-MERIT) |
| Abstract: | An interesting problem in the economics of innovation and strategic management of labs is to explain the drivers of breakthroughs and paradigm shifts in science. This study confronts the issue by analysing a main case study the technological determinant of the discovery of quasi-periodic materials that has generated a scientific paradigm shift in crystallography. Unlike user-friendly radical innovations, the study here detects some specific radical innovations, defined lab-oriented and adopted by high-skilled users i.e. researchers such as Transmission Electron Microscopy, which tend to support breakthroughs and scientific discoveries. This finding is the foundation for a framework, which endeavours to pinpoint the main characteristics and properties of these strategic lab-oriented radical innovations, which in turn spur scientific advances. Technological analysis of this study explains the critical role of specific technologies supporting knowledge creation and scientific discoveries to understand vital drivers of scientific fields and fruitful linkages that run from technological to scientific progress. |
| Keywords: | General Welfare; Technological Change; Research and Development; Intellectual Property Rights: General; |
| JEL: | O30 I31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:unm:unumer:2014090&r=ino |
| By: | Ding Weina (Beijing Institute of Technology, Beijing, China.); Marianna Gilli (Department of Economics and Management, University of Ferrara, Italy.); Massimiliano Mazzanti (Department of Economics and Management, University of Ferrara, Italy.); Francesco Nicolli (IRCReS-CNR, Italy; Department of Economics and Management, University of Ferrara, Italy.) |
| Abstract: | Eco-innovation plays a crucial role in reducing carbon emissions. Exploiting the consolidated IPAT / STIRPAT framework, this paper studies whether a relationship exists between green technological change and both CO2 emissions and emission efficiency (CO2/VA), exploiting a rich panel covering 95 Italian provinces from 1990-2010. The main regression results suggest that green technology has not yet played a significant role in promoting environmental protection, although it significantly improved significantly environmental productivity. Notably, this result is not driven by regional differences, and the main evidence is consistent among different areas of the country. |
| Keywords: | CO2 emission, Technological Change, Green Patents, IPAT, Environmental Performance |
| JEL: | Q53 Q55 |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:3014&r=ino |
| By: | Jérôme Stuck (1 Institute of Economic and Cultural Geography, Leibniz University, Hanover, Germany); Tom Broekel (Institute of Economic and Cultural Geography, Leibniz University, Hanover, Germany); Javier Revilla (Institute of Geography, University of Cologne, Cologne Germany) |
| Abstract: | While interactive learning and inter-organisational relations are fundamental building blocks in RIS theory, the framework is rarely related to investigations of regional knowledge network structures, because in RIS literature relational structures and interaction networks are discussed in a rather fuzzy and generic manner with the ‘network term’ often being used rather metaphorically. This paper contributes to the literature by discussing theoretical arguments about interactions and knowledge exchange relations in the RIS literature from the perspective of social network analysis. More precise, it links network theoretical concepts and insights to the well-known classification of RIS types by Cooke (2004). We thereby exemplarily show how the RIS literature and the literature on regional knowledge networks can benefit from considering insights of the respective other. |
| Keywords: | regional innovation system, network analysis, SNA, RIS |
| JEL: | O18 O33 R11 R12 |
| Date: | 2014–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:pum:wpaper:2014-09&r=ino |