nep-ino New Economics Papers
on Innovation
Issue of 2015‒03‒22
29 papers chosen by
Steffen Lippert
University of Auckland

  1. Firms’ Innovation Strategies Analyzed and Explained By Tavassoli , Sam; Karlsson , Charlie
  2. Innovation Strategies and Firm Performance By Karlsson, Charlie; Tavassoli, Sam
  3. Eco-Innovation and Firm Growth: Do Green Gazelles Run Faster? Microeconometric Evidence from a Sample of European Firms By Alessandra Colombelli; Jackie Krafft; Francesco Quatraro
  4. Knowlegde Spillovers, absorptive capacity and growth: An industry-level Analysis for OECD countries By Ioannis Bournakis; Dimitris Christopoulos; Sushanta Mallick
  5. Innovation and Productivity in Services: Evidence from Chile By Roberto Alvarez; Andrés Zahler; Claudio Bravo-Ortega
  6. Absorptive Capability and Knowledge Tacitness in the Transfer of Knowledge in the Agrifood Cluster of the Southeast of Spain By Sánchez-Pérez, Manuel; Bourlakis, Michael
  7. Decomposition analysis of green chemical technology inventions from 1971 to 2010 in Japan By Fujii, Hidemichi; Shirakawa, Seiji
  8. Taxation and the International Mobility of Inventors By Ufuk Akcigit; Salomé Baslandze; Stefanie Stantcheva
  9. Corporate Governance and Sectoral Patterns of Innovation: Evidence from Italian Manufacturing Industries By Filippo Belloc; Eleonora laurenza; Maria Alessandra Rossi
  10. Innovation through Networking: The Case of the Agricultural Sector By Lambrecht, Evelien; Kühne, Bianka; Gellynck, Xavier
  11. The 2014 EU Industrial R&D Investment Scoreboard By Hector Hernandez; Fernando Hervas; Alexander Tuebke; Mafini Dosso; Antonio Vezzani; Sara Amoroso; Nicola Grassano
  12. Patent Purchase as a Policy for Pharmaceuticals By Ben van Hout; Jolian McHardy; Aki Tsuchiya
  13. Quality Improvement and Process Innovation in Monopoly: A Dynamic Analysis By Luca Lambertini; Raimondello Orsini
  14. Does Competition Spur Innovation in Developing Countries? By Roberto Alvarez; Rolando Campusano
  15. Exploration and Exploitation Innovations in the Food Firms By Sánchez-Pérez, Manuel; Marín-Carrillo, María Belén; Bourlakis, Michael
  16. Innovation Policy for Grand Challenges. An Economic Geography Perspective By Coenen , Lars; Hansen , Teis; Rekers , Josephine V.
  17. Long-term Relationships: Static Gains and Dynamic Inefficiencies By Hemous, David; Olsen, Morten
  18. Incongruities of real and intellectual property: Economic concerns in patent policy and practice By Jeitschko, Thomas D.
  19. The First Cut is the Deepest: Repeated Interactions of Coauthorship and Academic Productivity in Nobel Laureate Teams By Ho Fai Chan; Ali Sina Önder; Benno Torgler
  20. Does financial development promotes innovation in developing economies? An Empirical Analysis By Maria Aristizabal?Ramirez; Maria Botero?Franco; Gustavo Canavire?Bacarreza
  21. Public procurement of innovation: a review of rationales, instruments and design By Chicot, J.; Matt, M.
  22. Impacts of the Teach For America Investing in Innovation Scale-Up By Melissa A. Clark; Eric Isenberg; Albert Y. Liu; Libby Makowsky; Marykate Zukiewicz
  23. Assessing the Effectiveness of Teach For America's Investing in Innovation Scale-Up By Melissa A. Clark; Eric Isenberg; Albert Y. Liu; Libby Makowsky; Marykate Zukiewicz
  24. Technological Development and Software Piracy By Romeu, Andrés; Martinez-Sanchez, Francisco
  25. The changing organization of innovation in public services.The case of digital library. By Ada Scupola; Antonello Zanfei
  26. Taxation and the International Mobility of Inventors By Ufuk Akcigit; Salomé Baslandze; Stefanie Stantcheva
  27. Towards a Smarter Greenport: Public‐Private Partnership to Boost Digital Standardisation and Innovation in the Dutch Horticulture By Verdouw, Cor N.; Bondt, N.; Schmeitz, H.; Zwinkels, H.
  28. Technological Competencies and Firm Performance: Analyzing the Importance of Internal and External Competencies By Grillitsch, Markus; Nilsson, Magnus
  29. The Insurance Value of Medical Innovation By Darius Lakdawalla; Anup Malani; Julian Reif

  1. By: Tavassoli , Sam (CIRCLE, Lund University and Blekinge Institute of Technology, Karlskrona); Karlsson , Charlie (Blekinge Institute of Technology, Karlskrona, Centre of Excellence for Science and Innovation Studies, KTH, Stockholm and Jönköping International Business School)
    Abstract: This paper analyzes various innovation strategies of firms. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a ten-year period, i.e. between 2002 and 2012. We distinguish between sixteen innovation strategies, which compose of Schumpeterian four types of innovations (process, product, marketing, and organizational) plus various combinations of these four types. First, we find that firms are not homogenous in choosing innovation strategies, instead, they have a wide range of preferences when it comes to innovation strategy. Second, using Transition Probability Matrix, we found that firms also persist to have such a diverse innovation strategy preferences. Finally, using Multinomial Logit model, we explained the determinant of each and every innovation strategies, while we gave special attention to the commonly used innovation strategies among firms.
    Keywords: Innovation strategy; product innovations; process innovations; market innovations; organizational innovations; innovation strategies; heterogeneity; firms; persistence; Community Innovation Survey
    JEL: D22 L20 O31 O32
    Date: 2015–03–19
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2015_014&r=ino
  2. By: Karlsson, Charlie (Centre of Excellence for Science and Innovation Studies (CESIS), Jönköping International Business School, & Blekinge Institute of Technology); Tavassoli, Sam (Blekinge Institute of Technology, Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), & Lund University)
    Abstract: This paper analyzes the effect of various innovation strategies of firms on their future performance, captured by labour productivity. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behaviour of firms over a decade, i.e. from 2002 to 2012. We distinguish between sixteen innovation strategies, which compose of Schumpeterian four types of innovations, i.e. process, product, marketing, and organizational (simple innovation strategies) plus various combinations of these four types (complex innovation strategies). The main findings indicate that those firms that choose and afford to have a complex innovation strategy are better off in terms of their future productivity in compare with both those firms that choose not to innovative (base group) and those firms that choose simple innovation strategies. Moreover, not all types of complex innovation strategies affect the future productivity significantly; rather, there are only few of them. This necessitates a purposeful choice of innovation strategy for firms.
    Keywords: Innovation Strategy; firm performance; productivity; firm level; Community Innovation Survey; Panel
    JEL: D22 L20 O31 O32
    Date: 2015–03–16
    URL: http://d.repec.org/n?u=RePEc:hhs:cesisp:0401&r=ino
  3. By: Alessandra Colombelli (DIGEP, Politecnico di Torino; GREDEG-CNRS; BRICK, Collegio Carlo Alberto); Jackie Krafft (Université Nice Sophia Antipolis; GREDEG-CNRS); Francesco Quatraro (Université Nice Sophia Antipolis and GREDEG-CNRS; Collegio Carlo Alberto; Department of Economics and Statistics Cognetti de Martiis, University of Torino)
    Abstract: This paper investigates the impact of eco-innovation on firms' growth processes, with a special focus on gazelles, i.e. firms' showing higher growth rates than the average. In a context shaped by more and more stringent environmental regulatory frameworks, we posit that inducement mechanisms stimulate the adoption of green technologies, increasing the derived demand for technologies produced by upstream firms supplying eco-innovations. For these reason we expect the generation of green technologies to trigger sales growth. We use firm-level data drawn from the Bureau van Dijk Database, coupled with patent information obtained from the OECD Science and Technology Indicators. The results confirm that eco-innovations are likely to augment the effects of generic innovation on firms' growth, and this is particularly true for gazelles, which actually appear to run faster than the others.
    Keywords: Gazelles, Eco-Innovation, firms' growth, Inducement mechanisms, derived demand, WIPO Green Inventory
    JEL: L10 L20 O32 O33 Q53 Q55
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:gre:wpaper:2015-12&r=ino
  4. By: Ioannis Bournakis; Dimitris Christopoulos; Sushanta Mallick
    Abstract: Spillovers have usually been undertaken at the country level, the spillover effects can be more definitive only if the analysis is conducted at the industry-level. This paper therefore attempts to identify spillovers by disentangling technological innovations into intra- and inter-national knowledge innovations at industry level in driving per capita output growth. Our main findings are first, that there is evidence for a robust positive relationship between R&D, human capital and output growth across these countries at industry-level. Second, the potential of international spillover gains is greater in countries with higher human capital and in industries whose pattern of production is more R&D oriented, import intensive, and dependent on vertical FDI. Finally, significant heterogeneity is found between high and low-tech industries with high-tech group displaying greater knowledge spillovers, suggesting that low-tech industries need to be more innovative in order to absorb the technological advancements of domestic and international rivals.
    Keywords: Knowledge spillover, Industry-level productivity, R&D
    JEL: F1 O3 O4
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:wsr:wpaper:y:2015:i:147&r=ino
  5. By: Roberto Alvarez; Andrés Zahler; Claudio Bravo-Ortega
    Abstract: This paper analyzes empirically the relationship between innovation and productivity in the Chilean services sector. Consistent with recent evidence on developed countries, we find that services firms are as innovative as firms in the manufacturing industry. In the basic model, we also find that both industries have similar determinants of the investment in innovation and the probability of introducing innovations (products or process), such as size and export status. In several extensions we find similar roles for technological and non-technological innovation in labor productivity and for determinants such as skill intensity and financial restrictions. In general, our evidence suggests that that innovation input and output is associated with improvements in productivity in both sectors. As extension of the work of Crespi and Zuñiga (2012) we test whether financial constraints are more relevant for either manufactures or services, finding that these seem to be active just for the services sector. We also test for the role of skills finding that they play a central role on the decision to spend in R&D and labor productivity.
    Date: 2013–10
    URL: http://d.repec.org/n?u=RePEc:udc:wpaper:wp384&r=ino
  6. By: Sánchez-Pérez, Manuel; Bourlakis, Michael
    Abstract: The OECD (1997) conceives a national innovation system (NIS) as “technology and information among people, enterprises and institutions are key to the innovative process” (p. 7). Innovation is conceived as the result of complex set of relationships among actors in the system, which includes companies, universities and research centres. In actual knowledge-based economies, industry-links are essential for economic development and progress (Ahrweiler et al., 2011). They are essential for building up networks of relationships that are necessary for any firm to innovate (Freeman 1987, 1992). In particular, many influential studies have identified the links between firm innovation and competitive advantage at the national level (Porter, 1990). Lundvall (1992) describes characteristics of NIS, emphasizing the importance or learning and how small countries, with limited public budgets and few large corporations, have selected areas of innovation strength and are able to absorb knowledge and innovations from elsewhere (Cooke et al., 1997). Thus, the vision of a NSI is just beyond the technological advances, “but is more broadly on the factors influencing national technological capabilities” (Nelson & Rosenberg, 1993: 4).
    Keywords: Agribusiness,
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:ags:iefi14:199376&r=ino
  7. By: Fujii, Hidemichi; Shirakawa, Seiji
    Abstract: Green chemistry plays an important role in achieving sustainable development. This study examines the determinant factors for technology invention related to green chemistry in Japan using patent application data and a decomposition analysis framework. Our main findings are that the number of green chemical technologies applied to production processes have increased because of the scale-up of overall research activities and increased priority. Additionally, the number of patent applications for green chemical technology-related product design and renewable energy increased mainly because of increased research priority. The differences in determinants among types of green chemical technology inventions are useful for formulating an effective policy to promote innovation in green chemical technology.
    Keywords: green chemistry, decomposition analysis, patent, research and development, Japan
    JEL: O3 O31 O34
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:62790&r=ino
  8. By: Ufuk Akcigit (Department of Economics, University of Pennsylvania and NBER); Salomé Baslandze (Department of Economics, University of Pennsylvania); Stefanie Stantcheva (Department of Economics, Harvard University)
    Abstract: This paper studies the effect of top tax rates on inventors' mobility since 1977. We put special emphasis on”superstar" inventors, those with the most and most valuable patents. We use panel data on inventors from the United States and European Patent Offices to track inventors' locations over time and combine it with international effective top tax rate data. We construct a detailed set of proxies for inventors' counterfactual incomes in each possible destination country including, among others, measures of patent quality and technological fit with each potential destination. We find that superstar top 1% inventors are significantly affected by top tax rates when deciding where to locate. The elasticity of the number of domestic inventors to the net-of-tax rate is relatively small, between 0.04 and 0.06, while the elasticity of the number of foreign inventors is much larger, around 1.3. The elasticities to top net-of-tax rates decline as one moves down the quality distribution of inventors. Inventors who work in multinational companies are more likely to take advantage of tax differentials. On the other hand, if the company of an inventor has a higher share of its research activity in a given country, the inventor is less sensitive to the tax rate in that country.
    Keywords: Taxation, Migration, International Mobility, Superstars, Innovation, Patents, Invention Patents, Invention.
    JEL: F22 H24 H31 J44 J61 O31 O32 O33
    Date: 2015–02–16
    URL: http://d.repec.org/n?u=RePEc:pen:papers:15-014&r=ino
  9. By: Filippo Belloc; Eleonora laurenza; Maria Alessandra Rossi
    Abstract: The paper explores the question whether the relationship between corporate governance dimensions and innovation at the firm level is affected by sectoral characteristics, by analyzing Italian manufacturing sectors. We estimate the impact of corporate governance features on patenting activity for two sub-groups of Italian firms, identified on the basis of the well-established distinction between Schumpeter Mark I (creative destruction) and Schumpeter Mark II (creative accumulation) sectors. We use a unique dataset on about 35.000 Italian manufacturing firms over the 2002-2007 period and employ a hurdle model for zero-inflated data in order to study simultaneously (i) the firm's ability to be innovative rather than non innovative and (ii) its ability to be relatively more innovative than the other innovative firms. We find that in Schumpeter Mark I sectors, a concentrated ownership structure has a positive effect on innovation, while the opposite is true for Schumpeter Mark II sectors. We interpret this result, arguing that, in more unstable markets, a concentrated ownership reduces agency costs to a larger extent than it exacerbates asymmetric bargaining problems. We find also that Schumpeter Mark I environments are associated to a negative effect of debt exposure, due to the higher uncertainty and agency costs. These findings are robust to a number of identification issues, including the possible endogeneity of corporate ownership structures. Our results may allow to make sense of the contradictory findings of the literature on corporate governance and innovation.
    Keywords: corporate governance, innovation, Italian manufacturing sectors, hurdle models.
    JEL: C30 G30 L60 O30
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:usi:wpaper:706&r=ino
  10. By: Lambrecht, Evelien; Kühne, Bianka; Gellynck, Xavier
    Abstract: Innovation is widely recognized as being an important strategic tool for companies to increase their competitive advantage. Hereby, networks have become increasingly important as external sources for the necessary knowledge, ideas and financial resources. The main contribution of this paper is to shed light on how different network partners can explain or facilitate the different types of innovations in the agricultural sector. In contrast to other studies, we make a distinction between all four types of innovation: product, process, marketing and organizational innovation. Thus, this study has the objective to gain insight into the innovation process of farmers in terms of how they innovate, which network partners they consult in relation to innovation type, the obstacles they face, and where the network activities could be better aligned with the needs of the farmers, which could help to enable them to optimally support innovation and networking. The study is based on 36 in-depth interviews with farmers spread over five subsectors in Flanders (northern Belgium). Our most important findings are that the consulted partners and the observed barriers are different dependent on the innovation type. Hence, our study delivers a set of valuable insights and implications for farmers, network coordinators and policymakers. Farmers must be aware of the importance of partner suitability and network heterogeneity for the innovation type they are aiming at. Furthermore, farmers have to be aware of the fact that efficient networking is not the optimisation of single relationships independently of each other, but instead the management of synergies and coordination of all relationships in an efficient way. In addition, network coordinators should set up a clear strategy and communicate for which innovations their network can advise and help the farmer. These first conclusions should be further proven and supported by future research in order to draw general conclusions for the agricultural sector. As the sample of our study is limited to 36 respondents spread over five subsectors, it is necessary to conduct a quantitative study to achieve a representable sample and to include more subsectors. In addition, the study is limited to the Flemish region and literature in other countries about this subject is scarce. Hence, other researchers are encouraged to investigate if the results of Flanders can be supported by other regions in Europe and the world.
    Keywords: Farmers, network, innovation, Flanders, qualitative research, Agribusiness,
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:ags:iefi14:199370&r=ino
  11. By: Hector Hernandez (European commission JRC IPTS); Fernando Hervas (European commission JRC IPTS); Alexander Tuebke (European commission JRC IPTS); Mafini Dosso (European commission JRC IPTS); Antonio Vezzani (JRC-IPTS); Sara Amoroso (European commission JRC IPTS); Nicola Grassano (European commission JRC IPTS)
    Abstract: The 2014 "EU Industrial R&D Investment Scoreboard" (the Scoreboard) contains economic and financial data for the world's top 2500 companies ranked by their investments in Research and Development (R&D). The sample contains 633 companies based in the EU and 1867 companies based elsewhere. The Scoreboard data are drawn from the latest available companies' accounts, i.e. usually the fiscal year 2013/14. Key findings of the 2014 Scoreboard comprise: - The world top 2500 R&D investors continued to increase their investment in R&D (4.9%), well above the growth of net sales (2.7%). The 633 EU companies increased R&D by 2.6% and decreased sales by 1.9%. - Volkswagen leads the global ranking for the second consecutive year, showing again a remarkable increase of R&D (23.4%, up to €11.7bn). Second continues to be Samsung, showing also an impressive R&D increase of 25.4%. - EU companies in the automobile sector, accounting for one quarter of the total EU’s R&D, continued to increase significantly their R&D (6.2%). This reflects the good performance of automobiles companies based in Germany (9.7%) that account for three quarters of this sector’s R&D in the EU. - The poor R&D performance of EU companies in high-tech sectors such as Pharmaceuticals (0.9%) and Technology Hardware and equipment (-5.4%) weighed down the total R&D increase of the EU sample. The overall amount invested in R&D by EU companies in high-tech sectors represents 40% of the amount invested by their US counterparts and the gap between the two company samples is increasing with time.
    Keywords: Investment, reseach, development
    Date: 2014–12
    URL: http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc92506&r=ino
  12. By: Ben van Hout (Health Economics and Decision Science, School of Health and Related Research, University of Sheffield); Jolian McHardy (Department of Economics, University of Sheffield); Aki Tsuchiya (Health Economics and Decision Science, School of Health and Related Research, University of Sheffield)
    Abstract: We consider a proposal for pharmaceutical patenting policy: namely, for society to grant and purchase the patent of the first of a new class of drug, instead of purchasing the drug, and award no further patents to runner-up drugs, producing or licensing production with price set to maximise welfare subject to cover costs. It is often observed that when the first of a new class of drugs is patented, it does not necessarily halt the development of a second and a third drug of the same class. The result may be a number of rugs with similar efficacy at similar prices well above the production costs. Where this happens, society could substantially reduce the cost of duplicated R&D and the price of the drug by buying the first patent. This would benefit more patients and produce larger health gains. Under this policy social welfare is increased, the winner is fully compensated, while the runner-up firm incurs possible losses - but there are viable conditions under which firms would not lose on average. We take a drug life-cycle approach to the welfare gains of a patent purchase policy. The results are generated based upon a number of stylised facts regarding R&D in the pharmaceutical industry.
    Keywords: Patent Purchase; Pharmaceuticals; Life-Cycle; Welfare
    JEL: D4 L5 O3
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:shf:wpaper:2015007&r=ino
  13. By: Luca Lambertini (Department of Economics, University of Bologna, Italy; The Rimini Centre for Economic Analysis, Italy); Raimondello Orsini (Department of Economics, University of Bologna, Italy)
    Abstract: We investigate the R&D portfolio of a monopolist investing in cost-reducing and quality enhancing R&D. Incentives along the two directions are inversely related to the size of market demand, and independent of each other. The stability analysis shows the existence of a unique stable steady state equilibrium, which is a saddle point. Finally, we show that the monopolist undersupplies product quality as compared to the social optimum, while its investment in the abatement of marginal cost is socially efficient.
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:rim:rimwps:15-12&r=ino
  14. By: Roberto Alvarez; Rolando Campusano
    Abstract: Using the Climate Investment Survey from the World Bank, we analyze the effect of competition on technological innovation in developing countries. We deal with endogeneity of competition by using the interaction between industry turnover and entry regulation as an instrument. The basic idea for this instrument is that entry regulations have a negative and more pronounced effect on competition in those industries with more natural turnover. Our results indicate a negative impact of competition on several measures of innovation outputs and inputs, which are robust across industries and using alternative measures of competition.
    Date: 2014–06
    URL: http://d.repec.org/n?u=RePEc:udc:wpaper:wp388&r=ino
  15. By: Sánchez-Pérez, Manuel; Marín-Carrillo, María Belén; Bourlakis, Michael
    Abstract: In a context of increasingly intense competition, creating a unique mix of value through innovation has been considered one tenet for creating a competitive advantage (Porter, 1996). During the past decades, innovation has become a central issue of strategic management (Nag et al., 2007). The literature has identified several problems in relation to firm failure innovation decisions, focusing on the supply-side (organizational competence, Henderson 2006; dependence of actual most profitable customers, Christensen, 1997; out-of-date competence due to technological breakthroughs, Tushman & Anderson, 1986), and on the demand-side (market turbulence, Abernathy & Clark 1985; institutional environment, Chesbrough, 2001).
    Keywords: Agribusiness, Food Consumption/Nutrition/Food Safety,
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:ags:iefi14:199339&r=ino
  16. By: Coenen , Lars (CIRCLE, Lund University); Hansen , Teis (Department of Human Geography and CIRCLE, Lund University); Rekers , Josephine V. (Department of Human Geography and CIRCLE, Lund University)
    Abstract: Grand challenges such as climate change, ageing societies and food security feature prominently on the agenda of policymakers at all scales, from the EU down to local and regional authorities. These are challenges that require the input and collaboration of a diverse set of societal stakeholders to combe different sources of knowledge in new and useful ways – a process that has occupied the minds of economic geographers looking at innovation in recent decades. Work in economic geography has informed innovation policies that tackle infrastructural, capabilities, network and institutional failures that may be found in different types of regions. How can these insights improve researchers’ and policymakers’ understanding of the potential for innovation policies to address grand challenges? In this paper we review these insights and then identify areas that push economic geographers to go beyond their previous focus and interests, notably by considering innovation policy in light of transformational rather than mere structural failures.
    Keywords: Innovation policy; grand challenges; economic geography; innovation systems failures; transformational systems failure
    JEL: O38 Q01
    Date: 2015–03–19
    URL: http://d.repec.org/n?u=RePEc:hhs:lucirc:2015_013&r=ino
  17. By: Hemous, David; Olsen, Morten
    Abstract: Do contractual frictions matter when firms are engaged in repeated interactions? This paper argues that long-term relationships, which allow firms to (partly) overcome the static costs associated with low contractibility, will under certain circumstances create dynamic inefficiencies. We consider the repeated interaction between final good producers and intermediate input suppliers, where the provision of the intermediate input is noncontractible. A producer/supplier pair can be a good match or a bad match, with bad matches featuring lower productivity. This allows us to build a cooperative equilibrium where producers can switch suppliers and start cooperation immediately with new suppliers. Every period, one supplier has the opportunity to innovate, and in the baseline model, innovations are imitated after one period. We show that (i) innovations need to be larger to break up existing relationships in the cooperative equilibrium than in either a set-up where the input is contractible or when we preclude cooperation in long-term relationships, (ii) the rate of innovation in the cooperative equilibrium is lower than in the contractible case, and may even be lower than in the non-cooperative equilibrium and (iii) cooperation may reduce welfare. Next, we assume that the frontier technology diffuses slowly to suppliers (instead of after one period). In that case, for sufficiently slow diffusion, the innovation rate in the cooperative equilibrium may be higher than even in the contractible case. Finally, we show that cooperation may also increase relationship specific innovations.
    Keywords: contractibility; innovation; relational contract; repeated game
    JEL: C73 K12 L14 O31 O43
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:cpr:ceprdp:10490&r=ino
  18. By: Jeitschko, Thomas D.
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:zbw:dicedp:179&r=ino
  19. By: Ho Fai Chan; Ali Sina Önder; Benno Torgler
    Abstract: Despite much in-depth investigation of factors influencing this evolution in various scientific fields, our knowledge about how efficiency or creativity is linked to the longevity of collaborative relationships remains very limited. We explore what Nobel laureates’ coauthorship patterns reveal about the nature of scientific collaborations looking at the intensity and success of scientific collaborations across fields and across laureates’ collaborative lifecycles in physics, chemistry, and physiology/medicine. We find that more collaboration with the same researcher is actually no better for advancing creativity: publications produced early in a sequence of repeated collaborations with a given coauthor tend to be published better and cited more than papers that come later in the collaboration with the same coauthor. Thus, our results indicate that scientific collaboration involves conceptual complementarities that may erode over a sequence of repeated interactions.
    Keywords: Innovation; Scientific Collaboration; Team Formation; Nobel Laureates
    JEL: D20 O30
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:cra:wpaper:2014-23&r=ino
  20. By: Maria Aristizabal?Ramirez; Maria Botero?Franco; Gustavo Canavire?Bacarreza
    Abstract: Using firm-level data from 2006 to 2013 for a set of developing countries, we examine the effects of financial development on innovation. Financial development boosts innovation by improving resource allocation and investment toward strategic sectors as well as facilitating technology to promote growth. Using binary response models as well as instrumental variable techniques to correct for endogeneity, we find robust but puzzling results. Contrary to most existing literature, financial development has a negative effect on the probability of a firm to innovate. The effect is conditional on firm size, and only larger firms are the ones that benefit from financial development. These results are robust to different measures of financial development. We argue that this is a result of the design of the financial system in regards to the lack of capital and the institutional system. Consequently, developing countries should first generate appropiate insitutional conditions if they want financial development to spur growth through innovation.
    Keywords: Financial Development; Innovation; Economic Growth; Developing Countries
    JEL: G00 G23 O31 O29
    Date: 2015–01–01
    URL: http://d.repec.org/n?u=RePEc:col:000122:012626&r=ino
  21. By: Chicot, J.; Matt, M.
    Abstract: Public Procurement of Innovation (PPI) has received recent renewed impetus and interest in most OECD countries although the academic literature pays little attention to its economic rationales. Since public procurement is being seen increasingly as an instrument of innovation policy, it is important to understand which situations favour its implementation. Based on a review of the literature on innovation policy, the present paper develops a failure-based framework that allows the resolution by PPI of three types of failures: demand-side, supply-side and user-supplier interaction traps. We propose a four-category typology of PPI based on the type of demand-side failures addressed, and whether or not it also targets supply-side failures. Each category is refined based on the degree of user-supplier interactions required. This typology based on the economic foundation of PPI allows the linking of failure, innovation and public procurement characteristics alongside the types of instruments derived from the academic literature on PPI. One of the strengths of this PPI typology is that it links to the various classifications proposed in the PPI literature and contributes to the smart design of PPI policy. It also considers PPI as a hybrid innovation instrument, that is, a demand-side policy tool, which, if appropriately designed, can be applied to resolve supply-side failures.
    Keywords: PUBLIC PROCUREMENT;INNOVATION POLICY INSTRUMENTS;POLICY RATIONALES;POLICY DESIGN
    JEL: H57 O33 O38
    Date: 2015
    URL: http://d.repec.org/n?u=RePEc:gbl:wpaper:2015-05&r=ino
  22. By: Melissa A. Clark; Eric Isenberg; Albert Y. Liu; Libby Makowsky; Marykate Zukiewicz
    Abstract: In 2010, Teach For America (TFA) launched a major expansion effort, funded in part by a five-year Investing in Innovation (i3) scale-up grant of $50 million from the U.S. Department of Education.
    Keywords: TFA, Teach For America, Innovation Scale-Up, Education
    JEL: I
    Date: 2015–03–04
    URL: http://d.repec.org/n?u=RePEc:mpr:mprres:8f5452b75774409bbfc27584bec69524&r=ino
  23. By: Melissa A. Clark; Eric Isenberg; Albert Y. Liu; Libby Makowsky; Marykate Zukiewicz
    Abstract: In 2010, Teach For America (TFA) launched a major expansion effort, funded in part by a five-year Investing in Innovation (i3) scale-up grant of $50 million from the U.S. Department of Education.
    Keywords: TFA, Teach For America, Innovation Scale-Up, Education
    JEL: I
    Date: 2015–03–04
    URL: http://d.repec.org/n?u=RePEc:mpr:mprres:a76864290fc64550b746f2b149173eb1&r=ino
  24. By: Romeu, Andrés; Martinez-Sanchez, Francisco (Fundamentos del Análisis Económico)
    Abstract: In this paper, we analyze the differences in piracy rates from one country to another. Like previous papers on the topic, we find that more developed countries have lower incentives for pirating. Unlike previous papers, we find that the piracy rate is positively correlated with the tax burden rate but negatively correlated with the domestic market size and exports over GDP. We also separate the impacts of education and R&D on piracy, and find two effects with opposite signs. Moreover, we find that those countries with smaller, more efficient bureaucracies are likely to protect intellectual property more effectively. Finally, we show that the spread of access to the Internet is negatively correlated with the software piracy rate.
    Keywords: piracy rate, education, R&D, quality bureaucracies, intellectual property, Internet
    JEL: D12 R23
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:mur:wpaper:43702&r=ino
  25. By: Ada Scupola (Roskilde University, Denmark); Antonello Zanfei (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo")
    Abstract: Based on a longitudinal case study of virtual library development, we highlight three important aspects that characterize the links between governance and innovation in public sector innovation. First, the examined case shows that the organizational complexities have increased in the transition from what could be considered as a spurious New Public Management approach, which incorporates elements of the traditional hierarchical model and elements of market-like competition, towards a “networked model” implying more emphasis on bottom-up decision making and a greater involvement of end users. Second, we provide evidence of increasing co-creation activities in which end users are involved not only in choosing out of a given menu of alternative solutions to given problems, but also in the definition of the menu itself, and in shaping and implementing innovative solutions. Third, the increasing involvement of users has created important innovation opportunities that are more and more characterized by their frugal/bricolage nature, hence more localized but not necessarily trivial and relatively easy to diffuse to different contexts.
    Keywords: Governance, Innovation, Public Sector, Services, ICT.
    Date: 2014
    URL: http://d.repec.org/n?u=RePEc:urb:wpaper:14_11&r=ino
  26. By: Ufuk Akcigit; Salomé Baslandze; Stefanie Stantcheva
    Abstract: This paper studies the effect of top tax rates on inventors' mobility since 1977. We put special emphasis on "superstar" inventors, those with the most and most valuable patents. We use panel data on inventors from the United States and European Patent Offices to track inventors' locations over time and combine it with international effective top tax rate data. We construct a detailed set of proxies for inventors' counterfactual incomes in each possible destination country including, among others, measures of patent quality and technological fit with each potential destination. We find that superstar top 1% inventors are significantly affected by top tax rates when deciding where to locate. The elasticity of the number of domestic inventors to the net-of-tax rate is relatively small, between 0.04 and 0.06, while the elasticity of the number of foreign inventors is much larger, around 1.3. The elasticities to top net-of-tax rates decline as one moves down the quality distribution of inventors. Inventors who work in multinational companies are more likely to take advantage of tax differentials. On the other hand, if the company of an inventor has a higher share of its research activity in a given country, the inventor is less sensitive to the tax rate in that country.
    JEL: F22 H21 H24 H31 J61 O33 O38
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21024&r=ino
  27. By: Verdouw, Cor N.; Bondt, N.; Schmeitz, H.; Zwinkels, H.
    Abstract: The horticulture and propagation materials sector has been designated as one of the so-called top sectors in which the Netherlands excels globally and that are a government priority. The top sector approach for further innovation is based on public-private partnerships (PPPs) in which businesses, knowledge institutes and the (national) government are working closely together towards a common vision and action plans (the 'golden triangle'). This paper introduces the Digital Greenport Holland (Dutch: Tuinbouw Digitaal) and its research and innovation programme ‘a Smarter Greenport’. Digital Greenport Holland is the PPP of the horticultural top sector that focuses on digital information management. The business involvement consists of the collaboration between three active industry associations for chain information, i.e. Frug I Com (fruit and vegetables), Floricode (flowers and plants) and EDIbulb (flower bulbs). The activities focus on four main themes: E-standards, E-information-integration, E-business-to-government and E-competence. The programme ‘a Smarter Greenport’ has currently conducted eight projects on these themes.
    Keywords: Agribusiness,
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:ags:iefi14:199378&r=ino
  28. By: Grillitsch, Markus; Nilsson, Magnus
    Abstract: In this paper, we analyze the relationship between technological competencies (TC) and firm performance. Theoretically, the importance of TC is well established and widely accepted. Therefore, it is surprising that a number of empirical studies have been unable to confirm a substantial positive relationship between TC and firm performance. We identify two major reasons for this: [i] affected by the availability and choice of indicators existing studies are often biased towards large firms; and [ii] they frequently do not consider both internal and potential access to firm-external TC. This paper discusses conceptually the interplay between firm-internal and firm-external TC as well as the mediating effect of firm size. These relationships are then analyzed empirically using Swedish micro data on 15,682 firms in 290 Swedish municipalities. Novel indicators based on occupational statistics are combined with measures of time-distance accessibility to study internal and external TC. The results provide evidence for a positive relationship between firm growth and TC. In particular, the combination of firm-internal and firm-external competencies seems to be conducive for growth. Lastly, our study suggests that firm size is an important factor to further our understanding about these relationships. Based on this we identify a number of future research questions to be addressed.
    Keywords: technological competencies, firm performance, accessibility, knowledge, innovation, geography, Agribusiness, Institutional and Behavioral Economics,
    Date: 2014–10
    URL: http://d.repec.org/n?u=RePEc:ags:iefi14:199064&r=ino
  29. By: Darius Lakdawalla; Anup Malani; Julian Reif
    Abstract: Economists think of medical innovation as a valuable but risky good, producing health benefits but increasing financial risk. This perspective overlooks how innovation can lower physical risks borne by healthy patients facing the prospect of future disease. We present an alternative framework that accounts for all these aspects of value and links them to the value of health insurance. We show that any innovation worth buying reduces overall risk, thereby generating positive insurance value on its own. We conduct two empirical exercises to assess the significance of our insights. First, we calculate that conventional methods underestimate the value of historical health gains by 30-80%. Second, we examine a large set of medical technologies and calculate that insurance value on average adds 100% to the conventional valuation of those treatments. Moreover, we find that the physical risk-reduction value of these technologies is ten times greater than the financial risk they pose and the corresponding value of health insurance that insures this financial risk. Our analysis also suggests standard methods disproportionately undervalue treatments for the most severe illnesses, where physical risk to consumers is most costly.
    JEL: I13 I18 J17 O30
    Date: 2015–03
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:21015&r=ino

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