nep-ino New Economics Papers
on Innovation
Issue of 2015‒04‒02
seventeen papers chosen by
Steffen Lippert
University of Auckland

  1. Religion and Innovation By Roland Bénabou; Davide Ticchi; Andrea Vindigni
  2. Barriers to innovation: can firm age help lower them? By Gabriele Pellegrino
  3. Religion and Innovation By Bénabou, Roland; Ticchi, Davide; Vindigni, Andrea
  4. Effectiveness of public innovation support in Europe: Does public support foster turnover, employment and labour productivity? By Becker, Lasse
  5. Inward foreign direct investment and innovation: evidence from Italian provinces By Roberto Antonietti; Raffaello Bronzini; Giulio Cainelli
  6. Are High-Growth Firms Overrepresented in High-Tech Industries? By Daunfeldt, Sven-Olof; Elert, Niklas; Johansson, Dan
  7. The innovative input mix. Assessing the importance of R&D and ICT investments for firm performance in manufacturing and services By Marina Rybalka
  8. 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
  9. Knowledge Communication Indicators from Knowledge Management to National Innovation System By Mei-Tai Chu; Sedigheh Rezaeian Fardoei
  10. Statistical Analysis of the Development of Science and Innovation in the Russian Federation By Abroskin, Alexander
  11. Research joint ventures in an R&D driven market with evolving consumer preferences: An evolutionary multi-agent based modelling approach By Cevikarslan S.
  12. Critical Analysis and Redesign of the Linear Models and Diffuse the Study of the Dynamics of Innovation By P. Dyachkina; K. Puzanova; Smolkin, Anton; Stepantsov, Pavel
  13. The Strength of Long Ties and the Weakness of Strong Ties: Knowledge diffusion through supply chain networks By TODO Yasuyuki; Petr MATOUS; INOUE Hiroyasu
  14. Dynamics of firm participation in R&D tax credit and subsidy programs By Isabel Busom; Beatriz Corchuelo; Ester Martínez-Ros
  15. Innovation and productivity in services and manufacturing : The role of ICT investment By Aboal D.; Tacsir E.
  16. Mechanisms of Increasing of Reliability of Statistical Information About Innovation Activity in Russia By Sorokina, Alla; Zinov, Vladimir; Kotsyubinskiy, Vladimir
  17. EXPORT, R&D AND NEW PRODUCTS By Francesco Bogliacino; Dario Guarascio; Mario Pianta

  1. By: Roland Bénabou; Davide Ticchi; Andrea Vindigni
    Abstract: In earlier work (Bénabou, Ticchi and Vindigni 2013) we uncovered a robust negative association between religiosity and patents per capita, holding across countries as well as US states, with and without controls. In this paper we turn to the individual level, examining the relationship between religiosity and a broad set of pro- or anti-innovation attitudes in all five waves of the World Values Survey (1980 to 2005). We thus relate eleven indicators of individual openness to innovation, broadly defined (e.g., attitudes toward science and technology, new versus old ideas, change, risk taking, personal agency, imagination and independence in children) to five different measures of religiosity, including beliefs and attendance. We control for all standard socio-demographics as well as country, year and denomination fixed effects. Across the fifty-two estimated specifications, greater religiosity is almost uniformly and very significantly associated to less favorable views of innovation.
    JEL: O3 O31 O4 Z1 Z12
    Date: 2015–03
  2. By: Gabriele Pellegrino (University of Sussex)
    Abstract: This paper examines how firm age can affect a firm’s perception of the obstacles (deterring vs. revealed) that hamper and delay innovation. Using a comprehensive panel of Spanish firms for the period 2004-2011, the empirical analysis conducted shows that distinct types of obstacle are perceived differently by firms of different ages. First, a clear-cut negative relationship is identified between firm age and a firm’s assessment of both the internal and external shortages of financial resources. Second, young firms seem to be less sensitive to the lack of qualified personnel when initiating an innovative project than when they are already engaged in such activities. By contrast, the attempts of mature firms to engage in innovation activity are significantly affected by the lack of qualified personnel. Finally, mature incumbents appear to attach greater importance to obstacles related to market structure and demand than is the case of firms with less experience.
    Keywords: Barriers to innovation, firm age, probit panel data model
    JEL: C23 O31 O32 O33
    Date: 2015
  3. By: Bénabou, Roland; Ticchi, Davide; Vindigni, Andrea
    Abstract: In earlier work (Bénabou, Ticchi and Vindigni 2013) we uncovered a robust negative association between religiosity and patents per capita, holding across countries as well as US states, with and without controls. In this paper we turn to the individual level, examining the relationship between religiosity and a broad set of pro- or anti-innovation attitudes in all five waves of the World Values Survey (1980 to 2005). We thus relate eleven indicators of individual openness to innovation, broadly defined (e.g., attitudes toward science and technology, new versus old ideas, change, risk taking, personal agency, imagination and independence in children) to five different measures of religiosity, including beliefs and attendance. We control for all standard socio-demographics as well as country, year and denomination fixed effects. Across the fifty-two estimated specifications, greater religiosity is almost uniformly and very significantly associated to less favorable views of innovation.
    Keywords: attitudes; beliefs; creativity; culture; dogma; growth; ideas; innovation; religion; risk-taking; science; technical progress; tolerance; values
    JEL: D83 O31 O43 Z1 Z12
    Date: 2015–03
  4. By: Becker, Lasse
    Abstract: In the European Union (EU), twenty Member States offer public innovation support for private research and development (R&D) activities through either subsidies or a combination of tax cuts and subsidies. Existing studies show ambiguous results regarding the effectiveness of public innovation support in different countries. Accordingly, following a description of the current public innovation framework in Europe, this paper analyses data from the European Community Innovation Survey concerning the effectiveness of public support. The measures chosen relate to changes in turnover as well as the number of employees and labour productivity (measured as turnover per employee) between 2006 and 2008. The paper finds a positive influence of public innovation support on labour productivity in an innovating company, a negative influence on turnover changes and a negative yet not significant influence on the development of employment. The influences of these factors are very weak, whereas other coefficients such as the money spent on innovative activities clearly show positive effects for all three indicators.
    Keywords: innovation,innovation support,labor productivity,Europe,effectiveness
    JEL: O31 O38 H21
    Date: 2015
  5. By: Roberto Antonietti (University of Padova); Raffaello Bronzini (Bank of Italy); Giulio Cainelli (Unicversity of Padova)
    Abstract: This paper investigates empirically whether inward greenfield foreign direct investment (FDI) is related to greater sectorial innovation in the host Italian provinces. We combine several sources of data to estimate panel count models, regressing the annual number of patents in each province and industry against a series of lagged FDI variables. Our results show that a positive relationship between FDI and local patenting emerges only for services. In particular, we find that greater inward FDI in services positively influences local patenting activity in knowledge-intensive business services. These results are robust to endogeneity and the inclusion of province controls and fixed effects.
    Keywords: inward greenfield FDI, innovation, patents, research and development, panel count models
    JEL: F14 F23 O31 C23
    Date: 2015–03
  6. By: Daunfeldt, Sven-Olof (HUI Research); Elert, Niklas (Research Institute of Industrial Economics (IFN)); Johansson, Dan (HUI Research)
    Abstract: It is frequently argued that policymakers should target high-tech firms, i.e., firms with high R&D intensity, because such firms are considered more innovative and therefore potential fast-growers. This argument relies on the assumption that the association among high-tech status, innovativeness and growth is actually positive. We examine this assumption by studying the industry distribution of high-growth firms (HGFs) across all 4-digit NACE industries, using data covering all limited liability firms in Sweden during the period 1997–2008. The results of fractional logit regressions indicate that industries with high R&D intensity, ceteris paribus, can be expected to have a lower share of HGFs than can industries with lower R&D intensity. The findings cast doubt on the wisdom of targeting R&D industries or subsidizing R&D to promote firm growth. In contrast, we find that HGFs are overrepresented in knowledge-intensive service industries, i.e., service industries with a high share of human capital.
    Keywords: Entrepreneurship; Firm growth; Gazelles; High-growth firms; High-impact firms; Innovation; R&D
    JEL: L11 L25
    Date: 2015–03–25
  7. By: Marina Rybalka (Statistics Norway)
    Abstract: Business innovation is an important driver of productivity growth. In this paper, I assess the importance of R&D and ICT investment for firm performance in the manufacturing and service industries. Explicitly, I use an extended version of the CDM model that treats ICT together with R&D as the main inputs into innovation and productivity, and test it on a large unbalanced panel data set based on the innovation survey for Norway. Four different types of innovation and the number of patent applications are used as innovation output measures. I find that ICT investment is strongly associated with all types of innovation in both sectors, with the result being strongest for product innovation in manufacturing and for process innovation in service industries. The impact of ICT on patenting is only positive in manufacturing. Overall, ICT seems to be less important than R&D for innovation, but more important for productivity. These results support the proposition that ICT is an important driver of productivity growth. Given the high rate of ICT diffusion in Norway, my results also contribute to explaining what is referred to as the ‘Norwegian productivity puzzle’, i.e. the fact that Norway is one of the most productive economies in the OECD despite having relatively low R&D intensity.
    Keywords: Innovation; ICT; R&D; Productivity; CDM model; Manufacturing and Services
    JEL: D24 L60 L80 O3
    Date: 2015–02
  8. 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
  9. By: Mei-Tai Chu (La Trobe University); Sedigheh Rezaeian Fardoei (Iran University of Payam Noor)
    Abstract: Both at firm and national level, particularly in the most developed economies, the increasing importance of knowledge have meant that the net stock of intangible asset has grown more rapidly than the tangible asset. This has unfortunately not yet happened in the developing economies (Mortensen et al., 1997). The world’s economy is becoming ever more dependent on creating, distributing, and using knowledge. Converting knowledge into innovation activity penetrates the entire process including knowledge creation, transmission and application. Knowledge flow facilitates relationship and communication among the subsystems and various main bodies within the innovation system, which prompts the innovation system to be a more dynamic, open, and mutual promotion system. The exchange, flow and allocation of knowledge are the prerequisite for safeguarding the innovation system’s operation efficiency. Therefore, Knowledge Management (KM) construction for Innovation System is the enterprise innovation guarantee factor as well as one essential part for superior national innovation system. Developing countries are not as advanced as developed countries in terms of their knowledge management systems, innovation management systems, and innovation potential. Promoting their innovation management systems will benefit their innovation and will promote them closer to rely on knowledge-based industries. While National Innovation System (NIS) has been studied extensively since 1987, they have not been studied from the perspective of a knowledge management system, and this paper addresses this gap. Innovation system research emphasizes knowledge creation, transmission and application on region-level. It devotes to pull regional overall knowledge creation and innovative activities through innovation system’s institutional arrangements within a region and the network architecture design to influence functional mechanism of the essential elements. According to this context, the paper aims to propose the development of a NIS approach from a knowledge standpoint and modeling the relationship between NIS performance dimensions and items of knowledge management functions to identify how general functions of knowledge management enables NIS. Hence, the work is focusing on contributing a new perspective to the study of national innovation, as it has integrated the approach of knowledge management by summarizing the results from research touching two different aspects of knowledge management (explicit and tacit). Therefore, this paper attempts to make contribution to the nascent body of research on modeling how KM functions enable NIS. Future study can undertake a validation based on the concept model proposed from this paper.
    Keywords: Knowledge Management, National Innovation System, Knowledge Communication Indicator
    Date: 2014–06
  10. By: Abroskin, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The research is focused on solving urgent problems connected with the increasing use of modern statistical methodology and analytical tools for the development of an adequate information and analytical management base in the area of science and innovation. Methodological approaches of modern version of the System of National Accounts (SNA 2008), adapted to solving the problems of complex analysis of science and innovation area, are used as the basis for the development of analytical assessments in the research. The practical results of the paper are the evaluation of the current state and trends of science and innovation development in the Russian Federation, evaluation of the impact of science and innovation area on the basic parameters of the Russian economy development, as well as the results of international comparative analysis of the most important parameters of science and innovation development.
    Keywords: statistical analysis, science, innovations, ñòàòèñòè÷åñêèé àíàëèç, íàóêà, èííîâàöèè
    Date: 2014–07
  11. By: Cevikarslan S. (UNU-MERIT)
    Abstract: RD collaborations have increasingly attracted the attention of both academic and business circles in the last couple of decades. Several empirical studies have concentrated on the firms incentives to participate in these collaborations. This paper presents an alternative approach to RD collaborations using an evolutionary, multi-agent based and sector-level RD model. The model will firstly be used to simulate the evolution of an RD driven market composed of profit-driven firms and boundedly rational consumers. Next, frequently discussed research questions in the relevant empirical literature will be explored. This modelling exercise will extend beyond a basic confirmation/rejection of these research questions by showing that the way a firm is defined as an RD collaborator has a significant effect on research results.
    Keywords: Current Heterodox Approaches: Institutional; Evolutionary; Production, Pricing, and Market Structure; Size Distribution of Firms; Innovation and Invention: Processes and Incentives;
    JEL: B52 L11 O31
    Date: 2015
  12. By: P. Dyachkina (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); K. Puzanova (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Smolkin, Anton (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Stepantsov, Pavel (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: Based on a critical analysis of the explanatory potential of linear and diffuse innovation dynamics models developed an alternative model of diffusion of innovation. The construction of an alternative model of the dynamics of innovation begins with the introduction of new theoretical concepts: 1) the "space", 2 ) "revolutionary potential" of the innovation process, and 3) "innovative potential of the area", 4) "innovative potential of the population", 5 ) "communication abilities of the information field". Summary model not only to compare the rate of diffusion of innovation in different user communities, but also to compare the rate of diffusion of innovation in different territorial units of the country. On the basis of the consolidated model highlights the key socio-cultural barriers to the spread of innovations: 1) centralized network barriers, and 2) the barriers of "friction of space", and 3) organizational barriers. Provides further description of socio-cultural barriers and recommendations to address them.
    Keywords: innovation dynamics
    JEL: O31
    Date: 2013–10
  13. By: TODO Yasuyuki; Petr MATOUS; INOUE Hiroyasu
    Abstract: This paper examines the effect of the structure of supply chain networks on productivity and innovation capability through knowledge diffusion, using large firm-level panel data for Japan. We find that ties with distant suppliers improve productivity, as measured by sales per worker, possibly attributed to intermediates from distant firms embodying more diversified knowledge than from neighboring firms. Ties with neighboring clients also improve productivity, which may be a result of diffusion of disembodied knowledge from neighboring clients being more effective than from distant clients. By contrast, ties with distant suppliers and clients improve innovative capability, as measured by the number of patent applications, suggesting the importance of a diversity of knowledge from distant firms for innovation. In addition, the density of a firm's ego network, which is measured by how densely its supply chain partners transact with each other, is found to have a negative effect on productivity and innovative capability, implying knowledge redundancy in dense networks. Overall, our results emphasize the importance of diversified partners in knowledge diffusion through supply chain networks.
    Date: 2015–03
  14. By: Isabel Busom (Departament d’Economia Aplicada, Universitat Autonama de Barcelona); Beatriz Corchuelo (Universidad de Extremadura, Departamento de Economía); Ester Martínez-Ros (Universidad Carlos III de Madrid, Departamento de Economía de la Empresa)
    Abstract: We provide comparative evidence on R&D tax credit and subsidy programs by studying whether firms' participation in each program exhibits state dependence and whether cross program interactions exist and are significant. We use a panel of manufacturing Spanish firms, which could use both types of support, to estimate a random effects bivariate dynamic probit model of program participation. We find that true state dependence of participation in R&D subsidy and tax credit programs accounts respectively for about 55% and 60% of observed persistence. In contrast, we do not find evidence of cross program interaction, suggesting that each tool is used by firms with different profiles. Digging on the role of some observable variables, we find that both programs reach on average stable R&D performers, and that they do not foster participation of young firms relative to older ones. We also identify significant differences across programs: while diversified and commercially successful firms are more likely to use tax incentives, those with high productivity are more likely to obtain subsidies. We discuss some policy implications of these findings
    Keywords: R&D, innovation policy, tax incentives, subsidies, persistence, dynamic random effects, bivariate probit
    Date: 2015–03
  15. By: Aboal D.; Tacsir E. (UNU-MERIT)
    Abstract: Several studies have highlighted ICT as a driver of firm productivity in developed countries. However, the evidence about the impacts of ICT on services and manufacturing and particularly for developing countries is scarce. This paper focuses on understanding the determinants of investments in ICT at firm level and how this adoption ultimately affects innovation and productivity of Uruguayan services firms vis a vis manufacturing. Results show that ICT investments are more subject to economies of scale than other types of investments, are important for obtaining product or process innovations in services and its absence conspires against non-technological organisational or marketing innovations. Both ICT and other innovation investments are positively associated with productivity in services but only ICT affect productivity in manufacturing. Interestingly, the absence of investment in ICT is associated with lower levels of productivity.
    Keywords: Firm Behavior: Empirical Analysis; Innovation and Invention: Processes and Incentives; Management of Technological Innovation and R&D; Technological Change: Government Policy;
    JEL: O31 O32 D22 O38
    Date: 2015
  16. By: Sorokina, Alla (Gaidar Institute for Economic Policy); Zinov, Vladimir (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Kotsyubinskiy, Vladimir (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: In this paper, on the basis of foreign and domestic materials justified the need for quality information on innovation activities for managerial decision-making by the authorities at both the regional and federal levels. The authors suggest ways to improve the reliability and representativeness of statistical information on the innovation activity in Russia and present the results of their pilot-training of industrial companies for the correct completion of the form of statistical reporting "¹ 4-innovation".
    Keywords: innovation, decision-making, Russia
    Date: 2014–06
  17. By: Francesco Bogliacino; Dario Guarascio; Mario Pianta
    Abstract: In this article we extend the model developed by Bogliacino and Pianta (2013a, 2013b) on the link between R&D, innovation and economic performance, considering the impact of innovation of export success. We develop a simultaneous three equation model in order to investigate the existence of a ‘virtuous circle’ between industries’ R&D, share of product innovators and export market shares. We investigate empirically – at the industry level – three key relationships affecting the dynamics of innovation and export performance: first, the capacity of firms to translate their R&D efforts in new products; second, the role of innovation as a determinant of export market shares; third, the export success as a driver of new R&D efforts. The model is tested for 38 manufacturing and service sectors of six European countries over three time periods from 1995 to 2010. The model effectively accounts for the dynamics of R&D efforts, innovation and international performances of European industries. Moreover, important differences across countries emerge when we split our sample in a Northern group – Germany, the Netherlands and the United Kingdom – and a Southern group – France, Italy and Spain. We find that the ‘virtuous circle’ between innovation and competitiveness holds for Northern economies only, while Southern industries fail to translate innovation efforts into export success.
    Keywords: Export, R&D, Innovation, Three Stages Least Squares, Europe.
    JEL: F12 F14 O31 O33 O52
    Date: 2015–03–19

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