nep-ino New Economics Papers
on Innovation
Issue of 2015‒04‒25
37 papers chosen by
Steffen Lippert
University of Auckland

  1. Forbidden Fruits: The Political Economy of Science, Religion, and Growth By Bénabou, Roland; Ticchi, Davide; Vindigni, Andrea
  2. Structural Change and Innovation in Developing Economies: A Way Out of the Middle Income Trap ? By Marco Vivarelli
  3. The Spatial-Institutional Architecture of Firms’ Innovative Behaviour By Eric de Noronha Vaz; Teresa de Noronha Vaz; Peter Nijkamp
  4. Incentives for Process Innovations Under Discrete Structural Alternatives of Competition Policy By Andrey E Shastitko; Alexander Kurdin
  5. Evaluation of Health Care Innovation Awards (HCIA): Primary Care Redesign Programs, First Annual Report By Boyd Gilman; Sheila Hoag; Lorenzo Moreno; Greg Peterson; Linda Barterian; Laura Blue; Kristin Geonnotti; Tricia Higgins; Mynti Hossain; Lauren Hula; Rosalind Keith; Jennifer Lyons; Brenda Natzke; Brenna Rabel; Rumin Sarwar; Rachel Shapiro; Cara Stepanczuk; Victoria Peebles; KeriAnn Wells; Joseph Zickafoose
  6. The Firms behind the Regions: Analysis of Regional Innovation Performance in Portugal by External Logistic Biplots By Teresa de Noronha; Purificación Vicente Galindo; Peter Nijkamp; Eric de Noronha Vaz
  7. Skill Variety, Innovation and New Business Formation By Jolanda Hessels; Udo Brixy; Wim Naudé; Thomas Gries
  8. A Series of Innovation Policy Briefs : Promoting Innovation and Finance for Productivity Growth in Low Income Countries (LICs) By Voeten, Jaap
  9. How inventor royalty shares affect patenting and income in Portugal and Spain By Pere Arqué-Castells; Rui M Cartaxo; Jose García-Quevedo; Manuel Mira Godinho
  10. The National Innovation System: The Conditions of Its Making and Factors in Its Development By Dudin, Mikhail; Ljasnikov, Nikolaj; Sekerin, Vladimir; Veselovsky, Mikhail; Aleksakhina, Vera
  11. A time to nourish? Evaluating the impact of innovative public procurement on technological generality through patent data By RAITERI Emilio
  12. Start-up Costs, Taxes and Innovative Entrepreneurship By Pourya Darnihamedani; Joern Hendrich Block; Jolanda Hessels; Aram Simonyan
  13. The Growth Effects of R&D Spending in the EU: A Meta-Analysis By Kokko, Ari; Gustavsson Tingvall, Patrik; Videnord, Josefin
  14. Modelling R&D and Innovation Support Systems – Analysis of Regional Cluster Structures in Innovation in Portugal By Teresa de Noronha Vaz; Purificación Vicente Galindo; Peter Nijkamp
  15. Space and Knowledge Spillovers in European Regions By Andrea Caragliu; Peter Nijkamp
  16. Allocation of Human Capital and Innovation at the Frontier: Firm-level Evidence on Germany and the Netherlands By Eric Bartelsman; Sabien Dobbelaere; Bettina Peters
  17. Buyers, Suppliers, and R&D Spillovers By IKEUCHI Kenta; René BELDERBOS; FUKAO Kyoji; Young Gak KIM; KWON Hyeog Ug
  18. Assets with "Warts": How Reliable is the Market for Technology? By Vincenzo Palermo; Matthew J. Higgins; Marco Ceccagnoli
  19. Budgetary mechanism for financing and encouraging innovative economic development of the country By Natalia Korotina
  20. Innovate or imitate? Behavioural Technological Change By Cars Hommes; Paolo Zeppini
  21. The nature of innovative activity and the protection of intellectual property: a post TRIPS perspective from Asia By Kamal Saggi; Difei Geng
  22. Innovation and Legal Enforcement for Competition Policy: Theory and international evidence from overseas subsidiaries of the Japanese auto-parts suppliers By TAKEDA Yosuke; UCHIDA Ichihiro
  23. In Defense of Trusts: R&D Cooperation in Global Perspective By Jeroen Hinloopen; Grega Smrkolj; Florian Wagener
  24. Technology Import, R and D Spillover and Export: A Study of Automobile Sector in India By Santosh K. Sahu; K. Narayanan
  25. Implementation of the Teach For America Investing in Innovation Scale-Up By Marykate Zukiewicz; Melissa A. Clark; Libby Makowsky
  26. Innovation in natural resources : New opportunities and new challenges. The case of the Argentinean seed industry By Marin A.; Stubrin L.I.
  27. Innovative Transformation and Transformational Potential of Socio-Economic Systems By Dudin, Mikhail; Ljasnikov, Nikolaj; Kuznetsov, Alexander; Fedorova, Irina
  28. Research among Copycats: R&D, Spillovers, and Feedback Strategies By Grega Smrkolj; Florian Wagener
  29. Human capital, innovation and the distribution of firm growth rates By Goedhuys-Degelin M.D.L.; Sleuwaegen L.
  30. International Technology Diffusion of Joint and Cross-border Patents By Chia-Lin Chang; Michael McAleer; Ju-Ting Tang
  31. The Triple Helix Model as a Mechanism for Partnership between the State, Business, and the Scientific-Educational Community in the Area of Organizing National Innovation Development By Dudin, Mikhail; Frolova, Evgenia; Gryzunova, Natalie; Shuvalova, Elena
  32. Leaning from multinational companies through hiring: An empirical investigation. By Ding, Ding
  33. From Islands to Hubs of Innovation: Connecting Innovative Regions By Andrea Caragliu; Peter Nijkamp
  34. Eco-innovations: which new paths for the Aquitaine wood industry? By BERGOUIGNAN Marie-Claude
  35. The Problem of Forecasting and Modelling of the Innovative Development of Social-Economic Systems and Structures By Dudin, Mikhail; Ljasnikov, Nikolaj; Sekerin, Vladimir; Veselovsky, Mikhail; Aleksakhina, Vera
  36. A Field Experiment in Motivating Employee Ideas By Susanne Neckermann; Michael Gibbs; Christoph Siemroth
  37. Use of environmental approach to innovation-oriented development of industrial enterprises By Dudin, Mikhail; Ljasnikov, Nikolaj; Baranenko, Sergej; Busygin, Konstantin

  1. By: Bénabou, Roland; Ticchi, Davide; Vindigni, Andrea
    Abstract: We analyze the joint dynamics of religious beliefs, scientific progress and coalitional politics along both religious and economic lines. History offers many examples of the recurring tensions between science and organized religion, but as part of the paper’s motivating evidence we also uncover a new fact: in both international and cross-state U.S. data, there is a significant and robust negative relationship between religiosity and patents per capita. The political-economy model we develop has three main features: (i) the recurrent arrival of scientific discoveries that generate productivity gains but sometimes erode religious beliefs; (ii) a government, endogenously in power, that can allow such innovations to spread or instead censor them; (iii) a religious organization or sector that may invest in adapting the doctrine to new knowledge. Three long-term outcomes emerge. First, a "Secularization" or "Western-European" regime with declining religiosity, unimpeded science, a passive Church and high levels of taxes and transfers. Second, a "Theocratic" regime with knowledge stagnation, extreme religiosity with no modernization effort, and high public spending on religious public goods. In-between is a third, "American" regime that generally (not always) combines scientific progress and stable religiosity within a range where religious institutions engage in doctrinal adaptation. It features low overall taxes, together with fiscal advantages or societal laws benefiting religious citizens. Rising income inequality can, however, lead some of the rich to form a successful Religious-Right alliance with the religious poor and start blocking belief-eroding discoveries and ideas.
    Keywords: beliefs; blocking; censorship; Church; discovery; economic growth; inequality; innovation; knowledge; politics; redistribution; religion; religious right; science; secularization; state; technical progress; theocracy; tolerance
    JEL: E02 H11 H41 O3 O43 P16 Z12
    Date: 2015–04
  2. By: Marco Vivarelli
    Abstract: This paper is intended to provide an updated discussion on a series of issues that the relevant literature suggests to be crucial in dealing with the challenges a middle income country may encounter in its attempts to further catch-up a higher income status. In particular, the conventional economic wisdom - ranging from the Lewis-Kuznets model to the endogenous growth approach - will be contrasted with the Schumpeterian and evolutionary views pointing to the role of capabilities and knowledge, considered as key inputs to foster economic growth. Then, attention will be turned to structural change and innovation, trying to map - using the taxonomies put forward by the innovation literature - the concrete ways through which a middle income country can engage a technological catching-up, having in mind that developing countries are deeply involved into globalized markets where domestic innovation has to be complemented by the role played by international technological transfer. Among the ways how a middle income country can foster domestic innovation and structural change in terms of sectoral diversification and product differentiation, a recent stream of literature underscores the potentials of local innovative entrepreneurship, that will also be discussed bridging entrepreneurial studies with the development literature. Finally, the possible consequences of catching-up in terms of jobs and skills will be discussed.
    Keywords: catching-up, structural change, globalization, capabilities, innovation, entrepreneurship
    Date: 2015–04–20
  3. By: Eric de Noronha Vaz (Ryerson University, Department of Geography, Toronto, Canada); Teresa de Noronha Vaz (CIEO – Research Centre for Spatial and Organizational Dynamics, Faro, Portugal); Peter Nijkamp (VU University Amsterdam)
    Abstract: In recent decades there have been an enormous number of studies about innovation systems, partly inspired by a great interest among policy makers in search for a solid scientific foundation and professional support to identify appropriate development strategies. Despite different perspectives, most studies highlight knowledge creation and innovation as the major drivers of change and growth. This consensus disappears, however, as soon as the complexity of innovation and knowledge are taken into consideration. Innovation goes far beyond new product or process development on account of its interactive nature, while knowledge often surpasses the firms’ internal mechanisms, because, frequently, it is a spatially endogenous characteristic. The present paper aims to offer a refreshing contribution to the above discussion and represents an effort to develop a novel model able to answer how institutions are relating to each other, drawing networks of innovation. The available database comprises an extensive set of Portuguese innovative firms, spatially identified and able to engage in spatial connectivity in order to understand where and how strong the links are for innovation in Portugal, and to analyse the respective levels of geographical concentration or dispersion.
    Keywords: innovation; firms
    JEL: O31 D21
    Date: 2013–08–01
  4. By: Andrey E Shastitko; Alexander Kurdin (National Research University Higher School of Economics)
    Abstract: This study analyses the incentives for process innovations under different conditions determined by the competition policy for intellectual property rights (IPR) and particular features of markets and technologies. Competition policy is defined by the presence or absence of compulsory licensing, markets are characterized by technological leadership or technological competition. The results of modelling show that the uncertainty engendered by technological competition may lower the intensity of innovative activities, if there are no mechanisms of coordination between participants. Voluntary licensing generally improves social welfare but does not guarantee an increase in innovative efforts. Compulsory licensing can impede innovations due to the opportunistic behaviour of market participants but certain measures of state policy can prevent this negative effect
    Keywords: competition policy, compulsory licensing, process innovations
    JEL: L24 O31 K21
    Date: 2015
  5. By: Boyd Gilman; Sheila Hoag; Lorenzo Moreno; Greg Peterson; Linda Barterian; Laura Blue; Kristin Geonnotti; Tricia Higgins; Mynti Hossain; Lauren Hula; Rosalind Keith; Jennifer Lyons; Brenda Natzke; Brenna Rabel; Rumin Sarwar; Rachel Shapiro; Cara Stepanczuk; Victoria Peebles; KeriAnn Wells; Joseph Zickafoose
    Abstract: In July 2012, the Center for Medicare & Medicaid Innovation (CMMI) awarded cooperative agreements to a select group of programs proposing innovative ways to improve the quality and lower the cost of care for Medicare, Medicaid, and Children’s Health Insurance Program (CHIP) enrollees. This initiative, the Health Care Innovation Awards (HCIA), is a central part of CMMI’s overall objective of finding effective and efficient ways to achieve better quality of care, improved population health, and lower costs. The initiative also seeks to increase and improve the performance of the health care workforce through enhanced training and education, as well as to rethink the roles and functions of different types of health care workers. CMMI subsequently classified 14 of the 107 HCIA awards as primary care redesign (PCR) programs, representing a broad range of intervention models, target populations, and organizational settings.
    Keywords: Primary Care Redesign, Implementation Evaluation, Impact Evaluation, Delivery Systems Innovation, Clinician Behavior, Workforce Development, Medicare, Medicaid
    JEL: I
    Date: 2014–11–14
  6. By: Teresa de Noronha (Research Centre for Spatial and Organizational Dynamics, University of the Algarve, Faro, Portugal; Cities Centre, University of Toronto, Canada); Purificación Vicente Galindo (University of Salamanca, Spain); Peter Nijkamp (VU University Amsterdam); Eric de Noronha Vaz (Ryerson University, Toronto, Canada)
    Abstract: The strategic choices regarding innovation and R&D policy in Portugal have, over the last two decades, produced various positive benefits, in which particularly the regions of Lisbon and Algarve have taken the lead. These are the only parts of the country that converge towards the European average growth rate. The other Lisbon and Algarve have taken the lead, and are the only ones in the country to converge towards the European average growth rate. Other Portuguese regions – despite significant national growth rates in the 1990s and a successful attempt to cope with the EMU – are lagging behind the EU average with respect to gross production, investment and employment generation. Meanwhile, one of the greatest public policy efforts was to diffuse much of the European funds across the entrepreneurial sector. This paper aims to evaluate the firms’ contribution to national and regional growth, their obstacles and impacts, and to explain the present performance of Portuguese firms located throughout the country, and to explore those innovation determinants that have a region-specific connotation. In our paper, innovation is used as a major contributor to the policy evaluation process referred to above. To provide a thorough investigation, our analysis defines, on a regional basis, a set of firms’ behavioural patterns regarding innovation. In our modelling, we employ a new methodology, viz. the External Logistic Biplot method, which is applied to an extensive sample of innovative institutions in Portugal. Variables such as ‘Promoting knowledge’, ‘Management skills’, ‘Promoting R&D’, ‘Knowledge transfer’, ‘Promoting partnership & cooperation’, and ‘Orientation of public measures’ have been identified as crucial determinants in earlier studies and are now used to describe regional institutional profiles.
    Keywords: Regional Asymmetries, Innovation, Firms' Performance, Regional Innovation Systems, Principal Coordinates Analysis, External Logistic Biplot, Voronoi Diagram, Dissimilarity Matrix
    JEL: O50 O3
    Date: 2013–09–05
  7. By: Jolanda Hessels (Erasmus University Rotterdam, and Panteia/EIM, the Netherlands); Udo Brixy (Institute for Employment Research (IAB), Nuremburg, and Ludwig-Maximilians University, Munich, Germany); Wim Naudé (Maastricht School of Management, Maastricht University, the Netherlands , and IZA, Germany); Thomas Gries (University of Paderborn, Germany)
    Abstract: We extend Lazear’s theory of skills variety and entrepreneurship in three directions. First, we provide a theoretical framework linking new business creation with an entrepreneur’s skill variety. Second, in this model we allow for both generalists and specialists to possess skill variety. Third, we test our model empirically using data from Germany and the Netherlands. Individuals with more varied work experience seems indeed more likely to successfully start up a new business and being a generalist does not seem to be important in this regard. Finally, we find that innovation positively moderates the relationship between having varied experiences, and being successful in starting up a new business. Our conclusion is that entrepreneurs with more varied work experience are more likely to introduce innovations that have not only technical, but also commercial value. Our findings support the notion that entrepreneurship can be learned.
    Keywords: entrepreneurship, start-ups, human capital, innovation, skills
    JEL: L26 M13 J24 O31
    Date: 2014–01–20
  8. By: Voeten, Jaap (Tilburg University, School of Economics and Management)
    Date: 2015
  9. By: Pere Arqué-Castells (Northwestern University & IEB); Rui M Cartaxo (Universidade de Lisboa, UECE); Jose García-Quevedo (University of Barcelona & IEB); Manuel Mira Godinho (Universidade de Lisboa and UECE)
    Abstract: Portuguese and Spanish universities have adopted well-defined royalty sharing schedules during the last fifteen years. We investigate whether these inventor royalty shares have been effective at stimulating inventors’ efforts and ultimately improving university outcomes. We base our empirical analysis on university-level data as well as on new self-collected surveys completed by inventors and Technology Transfer Offices (TTOs). Econometric evidence from the university-level dataset indicates that royalty shares have no impact on patenting or licensing income. The same result emerges from the inventors’ survey, with most respondents claiming to be largely unaffected by royalty sharing. Evidence from both the TTO and inventors’ surveys suggests that inventors do not react to royalty sharing because of the poor commercial prospects of their inventions, which means there is little income to be shared. These poor prospects appear to reflect the fact that the TTOs do not focus sufficiently on commercializing inventions and inventors are unable to produce potentially licensable inventions.
    Keywords: Patents, IPR, university, knowledge transference
    JEL: I23
    Date: 2015
  10. By: Dudin, Mikhail (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Ljasnikov, Nikolaj (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Sekerin, Vladimir (Moscow state university of mechanical enginering); Veselovsky, Mikhail (Financial and technological academy Russia); Aleksakhina, Vera (Financial and technological academy Russia)
    Abstract: This article examines general issues in the formation of national innovation systems amidst social-economic transformations. The author generalizes and structurizes the major elements of the national innovation system, systematizes its functions, classifies critical factors in its evolutionary development, and brings to light the role of the innovation system in forming a platform for the sustainable development of the global economy and national economies that make it up. The article demonstrates that the development of the national innovation system involves, based on the sustainable development concept, a consistent change of priorities in terms of searching for, developing, testing, and adopting all kinds of innovation.
    Keywords: innovation, sustainable development, social-economic growth, national innovation system, knowledge, transformation, innovativeness factors
    Date: 2014
  11. By: RAITERI Emilio
    Abstract: Innovative public procurement has been increasingly considered as a form of public support to innovative activities from both scholars and policy makers. Economic historians suggested an even more fundamental role for procurement in setting the pace of technological change, reporting how defense-related procurement had a major impact for the emergence of many general purpose technologies (GPT) developed in the United States in the 20th century. Conceiving the arrival of a GPT as a process unfolding in time, the paper surmises that procurement might represent one of the most important element in creating the right soil to \"cultivate\" a technology that has the potential to reach high levels of pervasiveness. To test this hypothesis I make use of patent data and patent citations. Citations allow to identify the connection between innovations related to public procurement and their technological antecedents and to measure the generality of the patents. Grounding on these two considerations, I hypothesize that receiving a citation from a patent related to public procurement raises the generality level of the cited patent. I design a quasi-experiment in which I compare the change in the generality level over time, between a group of treated and a group of control patents. A patent is assigned to the treatment group if it receives a citation from a patent related to public procurement. Results suggest a positive and significant impact of innovative public procurement upon the generality of a patent. Public demand seems to have crucial importance in increasing the pervasiveness of a technology, calling for Schumpeterian demand policies.
    Keywords: Economics of Innovation, General Purpose Technologies, Public Procurement, Patent Data, Technology Policy
    JEL: O30 H57 O33 O38 C21
    Date: 2015
  12. By: Pourya Darnihamedani (Erasmus University Rotterdam, the Netherlands); Joern Hendrich Block (University of Trier, Trier, Germany); Jolanda Hessels (Erasmus University Rotterdam, the Netherlands); Aram Simonyan (National Academy of Science of the Republic of Armenia, Yerevan, Republic of Armenia)
    Abstract: Prior research suggests that start-up costs and taxes negatively influence entry into entrepreneurship. Yet, no distinction is made regarding the type of entrepreneurship, particularly innovative versus non-innovative entrepreneurship. Start-up costs, being one-off costs, may reduce the entry of entrepreneurs whose ideas are not very promising, thus increasing the proportion of innovative entrepreneurs. Taxes, being recurring costs, may reduce the “prize” of innovation and the profit from entrepreneurship, discouraging individuals with innovative business ideas from becoming entrepreneurs. Analyzing a dataset of 632,116 individuals, including 43,223 entrepreneurs from 53 countries, we can confirm our main predictions. Our paper contributes to the discussion on how governmental regulation costs and taxes influence innovative entrepreneurship and technological deve lopment.
    Keywords: Innovative entrepreneurship, corporate taxes, personal income taxes, start-up costs, entrepreneurial profit
    JEL: H24 H25 L26 L51 O31
    Date: 2015–01–23
  13. By: Kokko, Ari (Copenhagen Business School); Gustavsson Tingvall, Patrik (The Ratio institute and Söderturn university); Videnord, Josefin (The Ratio institute and Uppsala university)
    Abstract: In this paper we conduct a meta-analysis to examine the link between R&D spending and economic growth in the EU and other regions. The results suggest that the growth-enhancing effect of R&D in the EU15 countries does not differ from that in other countries in general, but it is less significant than that for other industrialized countries. A closer inspection of the data reveals that the weak results for the EU15 stem from comparisons with the US – the US has been able to generate a stronger growth response from its R&D spending. Possible explanations for the US advantage include higher private sector investment in R&D and stronger public-private sector linkages than in the EU. Hence, to reduce the “innovation gap” vis-à-vis the US, it may not be enough for the EU to raise the share of R&D expenditures in GDP: continuous improvements in the European innovation system will also be needed, with focus on areas like private sector R&D and public-private sector linkages.
    Keywords: meta-analysis; R&D; European Union; EU15; USA; Economic Growth
    JEL: F43 O51 O52
    Date: 2015–04–14
  14. By: Teresa de Noronha Vaz (University of the Algarve, Faro, Portugal); Purificación Vicente Galindo (University of the Algarve, Faro, Portugal); Peter Nijkamp (VU University Amsterdam)
    Abstract: This paper offers a new methodology to identify R&D and innovation clusters, on the basis of a regional analysis of innovation support systems in Portugal. Using a web-based inventory of R&D and innovation agencies, an extensive data base is created. This data set is next analyzed by means of Principal Coordinates Analysis followed by a Logistic Biplot approach (leading to Voronoi mappings) in order to design a systematic typology of innovation clusters in the main regions in Portugal. A striking result is the significant difference in innovation systems at regional level in Portugal. The paper is concluded with policy recommendations.
    Keywords: R&D and innovation, regional innovation systems, principal coordinates analysis, logistic biplot, Voronoi mapping, public policy
    JEL: Q55 Q16
    Date: 2013–08–02
  15. By: Andrea Caragliu (Politecnico di Milano, Italy); Peter Nijkamp (VU University Amsterdam)
    Abstract: Usually, the diffusion of a non-rival market knowledge externality - called a Knowledge Spillover (KS) - is related to geographical proximity. In this paper we explore the channels through which knowledge spreads. Compared with earlier work on KS measures, this study makes a step forward by calculating KS (as a balance of positive and negative absolute knowledge flows) on the basis of different proximity matrices. In particular, we focus on the relational, social, technological, and cognitive channel, along with the traditional geographical channel. In the light of previous studies on KS, we examine: (i) which types of proximity enhance or hamper the outward flow of knowledge; and (ii) whether the local endowment of absorptive capacity reduces such a flow. Our results show that KSs vary across alternative definitions of proximity. The parameter estimates of such a KS model show interesting patterns, with geographical and cognitive proximity having the highest explanatory power am ong all the types of proximity considered. Local absorptive capacity is found to be negative only when a region is surrounded by regions with similarly high levels of absorptive capacity. Furthermore, outward KSs decrease as geographical, relational, social, technological and cognitive distance increase. This points to the emergence or existence of large clusters of regions <I>('absorptive capacity clubs')</I>, where relational, social, technological and cognitive proximity lock-in maximizes the returns to local investment in R&D.
    Keywords: knowledge spillover, total factor productivity, proximity, absorptive capacity, knowledge production function
    JEL: R1 D8
    Date: 2013–09–20
  16. By: Eric Bartelsman (VU University Amsterdam, The Netherlands, and IZA, Germany); Sabien Dobbelaere (VU University Amsterdam, The Netherlands, and IZA, Germany); Bettina Peters (Centre for European Economic Research (ZEW), MaCCI Mannheimer Centre for Competition and Innovation, Germany, and University of Zurich, Switzerland)
    Abstract: This paper examines how productivity effects of human capital and innovation vary at different points of the conditional productivity distribution. Our analysis draws upon two large unbalanced panels of 6,634 enterprises in Germany and 14,586 enterprises in the Netherlands over the period 2000-2008, considering 5 manufacturing and services industries that differ in the level of technological intensity. Industries in the Netherlands are characterized by a larger average proportion of high-skilled employees and industries in Germany by a more unequal distribution of human capital intensity. Except for low-technology manufacturing, average innovation performance is higher in all industries in Germany and the innovation performance distributions are more dispersed in the Netherlands. In both countries, we observe non-linearities in the productivity effects of investing in product innovation in the majority of industries. Frontier firms enjoy the highest returns to pro duct innovation whereas the most negative returns to process innovation are observed in the best-performing enterprises of most industries. In both countries, we find that the returns to human capital increase with proximity to the technological frontier in industries with a low level of technological intensity. Strikingly, a negative complementarity effect between human capital and proximity to the technological frontier is observed in knowledge-intensive services, which is most pronounced for the Netherlands. Suggestive evidence for the latter points to a winner-takes-all interpretation of this finding.
    Keywords: Human capital, innovation, productivity, quantile regression
    JEL: C10 I20 O14 O30
    Date: 2013–07–19
  17. By: IKEUCHI Kenta; René BELDERBOS; FUKAO Kyoji; Young Gak KIM; KWON Hyeog Ug
    Abstract: The role of buyers and suppliers has received little attention in the literature on research and development (R&D) spillovers and productivity, which has focused primarily on the moderating roles of technological and geographic proximity. In this study, we examine R&D spillovers that result from buyer and supplier relationships at the transaction level, utilizing a unique dataset identifying individual buyers and suppliers of Japanese manufacturing firms, matched with data from R&D surveys and the Census of Manufactures. In an analysis of more than 20,000 Japanese manufacturing plants, we find that R&D stocks of buyers and suppliers provide a substantial productivity performance premium over and above the effect of technologically and geographically proximate R&D stocks. These effects are magnified if the supplier and buyer have business group ties based on capital ownership relationships. While the effects of technologically proximate R&D decay with distance, this is not the case for spillovers from buyers and suppliers. Our results identify transaction-based spillovers as a key influence on productivity and social returns to R&D.
    Date: 2015–04
  18. By: Vincenzo Palermo; Matthew J. Higgins; Marco Ceccagnoli
    Abstract: Existing research has focused on why and when firms may choose to access the external technology market. Surprisingly, however, less is known about the reliability of the patents attached to these external technologies in the face of litigation. “Weak” external patents expose a firm to the potential loss of downstream revenues. To address this question we construct a novel dataset of patent litigation in the pharmaceutical industry. We exploit a change in U.S. patent law as a natural experiment to test whether external patents are more reliable than those developed internally. We find that acquired patents are more likely to fall during litigation; they are less reliable then internal technologies. Losses lead to an average reduction in market capitalization of $450 million. Overall, our results demonstrate the critical importance of the underlying reliability of external patents and provides a cautionary note to the potential benefits of accessing external technology markets.
    JEL: L10 L24 L65 O32
    Date: 2015–04
  19. By: Natalia Korotina (Russian Presidential Academy of National Economy and Public Administration, Chelyabinsk branch)
    Abstract: The article deals with the problem of government incentives for innovative economic development of the country. This paper analyzes the domestic and foreign experience in financing research and development activities in terms of «state - the business sector». The article presents a model of the budgetary of financing and encouraging innovative economic development.
    Keywords: innovative development, innovative activity, financing of innovations, budgetary mechanism, forming, stimulating
    JEL: O0
    Date: 2013–10
  20. By: Cars Hommes (CeNDEF, University of Amsterdam); Paolo Zeppini (School of Innovation Sciences, Eindhoven University of Technology)
    Abstract: We propose a behavioural model of technological change with evolutionary switching between boundedly rational costly innovators and free imitators, and study the endogenous interplay of innovation decisions, market price dynamics and technological progress. Innovation and imitation are strategic substitutes and exhibit negative feedback. Endogenous technological change is the cumulative outcome of innovation decisions. There are three scenarios: market breakdown, Schumpeterian rents and learning curves. The latter is characterized by an increasing fraction of innovators when demand is elastic, while inelastic demand allows technological progress with shrinking innovation effort. Model simulations are compared to empirical data of two industrial sectors.
    Keywords: discrete choice, innovation patterns, learning curves, switching behavior
    JEL: C62 C73 D21 O33
    Date: 2013–07–26
  21. By: Kamal Saggi (Vanderbilt University); Difei Geng (Vanderbilt University)
    Abstract: This paper examines trends in innovative activity in several major Asian countries during 1997-2011 as measured by their filings and grants of various types of intellectual property (IP). By almost all measures, there has been a remarkable increase in innovative activity in China. In fact, in 2011 China accounted for roughly 25% of global patent applications. However, several indirect measures suggest that the quality of this newly created Chinese IP is not (yet) world class. For example, relative to residents of other major Asian countries and the United States, Chinese residents tend to file IP applications in foreign markets at a much lower rate. Similarly, the ratio of royalty payments earned by Chinese residents to the number of patents granted to them is fairly low by international standards. Finally, the ratio of patent to utility model applications (typically granted for relatively minor innovations) in China is also relatively small.
    Keywords: innovation, protection of intellectual property, patents, trademarks, industrial designs, TRIPS, Asia
    JEL: O3 O5
    Date: 2014–05–27
  22. By: TAKEDA Yosuke; UCHIDA Ichihiro
    Abstract: Do legal enforcements for competition policy have differential effects on innovative research and development (R&D) activities? Taking into account both strategic R&D competition between incumbent and entrant, and government's optimal choice of legal schemes, we first present a game-theoretic model of innovation and legal enforcement (Glaeser and Shleifer, 2003; Schwartzstein and Shleifer, 2013; Segal and Whinston, 2007). The model suggests that there are in subgame-perfect equilibria some relations concerning average treatment effects of legal enforcement on entrant's R&D or incumbent's deterrence activities, conditional on law and order degree in host countries (World Bank Worldwide Governance Indicators). Second, focusing on overseas subsidiaries of the Japanese auto-parts suppliers that have international deployments with different legal origins in locations, we use a pooled data set of the Basic Survey of Overseas Business Activities and the Basic Survey of Japanese Business Structure and Activities. The average multi-valued treatment effect estimation shows positive results for the model. It suggests that under regulation as a legal enforcement scheme instead of strict liability or negligence, even in countries with low degree of law and order, R&D activities would be more enhanced and R&D-deterrent ones be further suppressed on average. Legal enforcement for competition policy does matter for innovation.
    Date: 2015–04
  23. By: Jeroen Hinloopen (University of Amsterdam); Grega Smrkolj (University of Amsterdam); Florian Wagener (University of Amsterdam)
    Abstract: We present a continuous-time generalization of the seminal R&D model of d’Aspremont and Jacquemin (American Economic Review, Vol. 78, No. 5) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. We consider all trajectories that are candidates for an optimal solution as well as initial marginal cost levels that exceed the choke price. Firms that collude develop further a wider range of initial technologies, pursue innovations more quickly, and are less likely to abandon a technology. Product market collusion could thus yield higher total surplus.
    Keywords: Antitrust policy, Bifurcations, Collusion, R&D cooperatives, Spillovers
    JEL: D43 D92 L13 L41 O31 O38
    Date: 2013–03–15
  24. By: Santosh K. Sahu (Madras School of Economics); K. Narayanan (Department of Humanities and Social Sciences, Indian Institute of Technology Bombay, Powai, Mumbai)
    Abstract: We examine the importance of a firm’s R and D activity, technology import and intra-sectoral R and D spillovers on the decision to export and export intensity using firm level panel data for the Indian automobile sector from 2000-2014. R and D and technology import activities are found to be important determinants of export activity. There is evidence that R and D spillovers exert positive effects on firms’ export intensity and decision to export. In addition to these results, firm age and size are nonlinearly related to export decision and export intensity. Energy efficiency plays important role in export behavior for firms that are continuously exporting and those who are exporting at least for one year.
    Keywords: Decision to export, Export intensity, Indian automobile sector, R and D intensity, Technology import intensity
    JEL: L10 L21 L22 L62
    Date: 2015–02
  25. By: Marykate Zukiewicz; Melissa A. Clark; Libby Makowsky
    Abstract: Teach For America (TFA) is a nonprofit organization that seeks to improve educational opportunities for disadvantaged students by recruiting and training teachers to work in low-income schools. In 2010, 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’s Office of Innovation and Improvement. This report examines TFA’s implementation of the i3 scale-up in the first and second years of the grant.
    Keywords: Teach For America, Investing in Innovation, Scale-Up, Implementation
    JEL: I
    Date: 2015–03–30
  26. By: Marin A.; Stubrin L.I. (UNU-MERIT)
    Abstract: In this paper, using the case of seeds, we explore the existence of both new opportunities and new challenges for innovation in Natural Resource Based Industries NRBIs in developing countries. Conventional views construe NRBIs as low tech, with low technological dynamism, little innovation, and little capacity to create linkages towards other sectors. However, these views are being increasingly questioned. Some authors argue that although NRs have always provided opportunities for innovation and growth; substantial changes in international institutions, markets and technologies during the last two decades or so have created new and a more diverse set of opportunities for a larger number of developing countries to take advantage of their NRs. We contribute to this literature by providing new empirical evidence that helps to better understand these new opportunities. In addition, we suggest that as new opportunities are being created, new challenges also emerge, and countries which do not comprehend fully both of these might lose the opportunity opened by this historical moment of change to become world leader innovators in NRs and related industries. Empirically we study the case of seeds innovation in Argentina - a world agricultural leader with a strong and advanced domestic seed industry. Based on firms interviews and secondary data we show how the new opportunities created for innovation in seeds have been taken by some companies in the developing world and how some new challenges are questioning the capacity to pursue further some of the new opportunities
    Keywords: Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products; Technological Change: Choices and Consequences; Diffusion Processes; Technological Change: Government Policy;
    JEL: O13 O33 O38
    Date: 2015
  27. By: Dudin, Mikhail (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Ljasnikov, Nikolaj (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Kuznetsov, Alexander (Moscow Institute of Economics, Politics and Law); Fedorova, Irina (Financial University under the Government of the Russian Federation)
    Abstract: The article reveals the specific character of the study and management of innovation of transformation and transformational potential of socio-economic systems in contemporary conditions, which are characterized by the presence of turbulent changes that cause necessity to find new forms, methods and ways to ensure the sustainable development of these systems and their balanced socio-economic growth. The ability of the socio-economic system towards sustainable development is defined by a set of parameters, factors and conditions, though the most important characteristic of the system is the availability of its transformational potential, which in a formalized form is a set of local indicators that are considered integrally.
    Keywords: sustainable development, socio-economic system, innovative transformation, transformational potential, innovations, major economic cycles, innovation wave, innovation process
    JEL: F00 P00 P20
  28. By: Grega Smrkolj (Newcastle University, United Kingdom); Florian Wagener (University of Amsterdam, the Netherlands)
    Abstract: We study a stochastic dynamic game of process innovation in which firms can initiate and terminate R&D efforts and production at different times. We discern the impact of knowledge spillovers on the investments in existing markets, as well as on the likely structure of newly forming markets, for all possible asymmetries between firms. We show that the relation between spillovers, R&D efforts, and surpluses is non-monotonic and dependent on both the relative and absolute efficiency of firms. Larger spillovers increase the likelihood that a new technology is brought to production, but they do not necessarily make the industry more competitive.
    Keywords: Differential game, Feedback Nash equilibrium, Numerical partial differential equations, R&D, Spillovers
    JEL: C61 C63 C73 D43 D92 L13 O31
    Date: 2014–08–22
  29. By: Goedhuys-Degelin M.D.L.; Sleuwaegen L. (UNU-MERIT)
    Abstract: This paper focuses on the occurrence of high-growth firms in relation to human capital and innovation. High-growth firms are rather exceptional and temporary phenomena and occur in the upper tail of the conditional firm growth distribution. Using quantile regression we study how human capital and RD affect the probability that high-growth firms occur. The results show that both human capital and RD increase the likelihood that a firm is a high-growth firm. Human capital appears to be positive and growth enhancing over the entire conditional growth distribution, hence also in the lower quantiles, where it reduces the likelihood of low growth. By contrast, RD increases not only the likelihood of high-growth firms, but also the likelihood of low-growth firms and exits, underscoring the risky nature of innovation. A probit analysis for high-growth firms and low-growth firms provides corroborating evidence for this finding. From a policy perspective the results suggest the use of more integrated policies, not only focusing on stimulating RD but also on the quality of human capital to foster the development of high-growth firms.
    Keywords: Firm Performance: Size, Diversification, and Scope; Management of Technological Innovation and R&D;
    JEL: L25 O32
    Date: 2015
  30. By: Chia-Lin Chang (National Chung Hsing University, Taiwan); Michael McAleer (Erasmus University Rotterdam, The Netherlands, Complutense University of Madrid, Spain); Ju-Ting Tang (National Chung Hsing University, Taiwan)
    Abstract: With the advent of globalization, economic and financial interactions among countries have become widespread. Given technological advancements, the factors of production can no longer be considered to be just labor and capital. In the pursuit of economic growth, every country has sensibly invested in international cooperation, learning, innovation, technology diffusion and knowledge. In this paper, we use a panel data set of 40 countries from 1981 to 2008 and a negative binomial model, using a novel set of cross-border patents and joint patents as proxy variables for technology diffusion, in order to investigate such diffusion. The empirical results suggest that, if it is desired to shift from foreign to domestic technology, it is necessary to increase expenditure on R&D for business enterprises and higher education, exports and technology. If the focus is on increasing bilateral technology diffusion, it is necessary to increase expenditure on R&D for higher education and technology.
    Keywords: International Technology Diffusion, Exports, Imports, Joint Patent, Cross-border Patent, R&D, Negative Binomial Panel Data
    JEL: F14 F21 O30 O57
    Date: 2013–07–22
  31. By: Dudin, Mikhail (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Frolova, Evgenia (Far Eastern Federal University); Gryzunova, Natalie (Moscow State University of Economics, Statistics and Informatics (MESI)); Shuvalova, Elena (Moscow State University of Economics, Statistics and Informatics (MESI))
    Abstract: Setting the objective: this article is aimed at examining theoretical topical issues related to modeling innovation development within the setting of the “knowledge economy”. Our new understanding of the role of three crucial institutional entities (the state, business, and science) leads us to reconsider and look for new model solutions on the formation of national innovation systems as environments that ensure sustainable national social-economic development. A goal-oriented and consistent partnership between the state, business, and science within the frame of the nascent information society and the knowledge economy helps resolve issues in ensuring sustainability not only at the level of national social-economic systems but that of the World System as a whole. The approach taken in this article lies in the following: the author is using as the article’s main methodological tool the institutional evolution approach complemented by a methodology for the formation of national innovation systems through interaction between the state, business, and science. Results: the shift to new social-economic relations requires reforming the links between social entities and redistributing their roles in ensuring national social-economic development. Realizing the Triple Helix model in practice as a basis for the self-organization and evolving of national innovation systems, with the inclusion of global social responsibility in it as an element that helps ensure proper interrelationship of the components, helps neutralize the negative consequences of the action of the market mechanism for the creation of innovations and maximize the positive effects of the systemic globalization of the innovation sphere. Conclusion / recommendation: materials provided in this article not only illustrate the new special role of the Triple Helix model in shaping the national innovation economy but demonstrate the major changes taking place within the national and global social-economic system. The materials provided can be recommended for the use in working out methodologies for constructing self-organizing and self-developing national innovation systems.
    Keywords: national innovation systems, innovation, evolution, self-organization, Triple Helix model, social responsibility
    Date: 2015
  32. By: Ding, Ding (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
    Abstract: Labor mobility is mechanism for transfer the technology and innovation from multinational firms (MNEs) to non-multinational firms (non-MNEs). In this paper, we use a unique employer-employee data set in Sweden to provide individual-firm match dataset. Using the special research framework, we provide empirical evidence that hiring workers from MNEs can lead to knowledge spillover to non-MNEs and convert to innovation, even after controlling the region, industry and year effect, individuals’ and firms’ characteristics. We find hiring workers from a domestic MNEs generates stronger spillover effects compare to foreign MNEs and higher-educated workers are better able to transfer the knowledge.
    Keywords: Multinational enterprise; Ownership; Labor mobility; knowledge spillover
    JEL: F23 J61 O33
    Date: 2015–04–13
  33. By: Andrea Caragliu (Politecnico di Milano, Italy); Peter Nijkamp (VU University Amsterdam)
    Abstract: This paper enters the debate on the islands of innovation through the lens of the standard Lucas (1988) growth model. It begins with a review of the theoretical details of the model and of the ensuing main empirical results, which can be identified when estimating such model on a sample of 261 EU27 NUTS2 regions. Next, empirical results are interpreted in the light of recent EU innovation and education policies. Our results point to the paramount importance of taking into account patterns of connectivity between “islands” of innovation and other regions. On the basis of our empirical estimates, we claim that future further concentration of innovative activity could achieve maximum returns by enhancing connectivity between spatial innovation leaders and lagging regions. This situation may be characterised as targeting “hubs”, rather than “islands”, of innovation, and is in agreement with “open innovation policy”.
    Keywords: human capital, cognitive capital, knowledge spillovers, islands of innovation
    JEL: C21 E24 R11
    Date: 2013–09–12
  34. By: BERGOUIGNAN Marie-Claude
    Abstract: This article focuses on the question of how eco-innovation projects can lead to the break-out of an industrial trajectory. Using the example of the Aquitaine wood industry, we question how eco-innovation projects promoted by the ‘competitiveness cluster’ might help to modify that trajectory. Based on the existing literature, which refers to the diversity of objectives of eco-innovation, our research analyzes this diversity and then questions the compatibility of these objectives. By doing so, the article aims to identify the main possible paths of evolution of the Aquitaine wood industry.
    Keywords: break-out - competitiveness cluster - eco-innovation - path-dependency - wood industry.
    JEL: B52 O31 Q23 Q55
    Date: 2015
  35. By: Dudin, Mikhail (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Ljasnikov, Nikolaj (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Sekerin, Vladimir (Moscow state university of mechanical enginering); Veselovsky, Mikhail (Financial and technological academy Russia); Aleksakhina, Vera (Financial and technological academy Russia)
    Abstract: This article is an overview of the current theoretical and methodological approaches to the forecasting and modelling of the innovative development of social-economic systems and structures. The innovation factor is considered to be a dominant factor of the stable development taking into account the restrictions in inner and outer environment of business and corporate entities. This work shows that the forecasting and planning are two interrelated procedures, aimed at development and implementation of the scientifically grounded basis for functioning and development of social-economic systems of macro- and micro-levels.
    Keywords: innovations, forecasting, modelling, planning, stable development, social-economic systems, inertial development, innovative breakthrough
    Date: 2014
  36. By: Susanne Neckermann (Erasmus University Rotterdam, the Netherlands, and ZEW, Germany); Michael Gibbs (University of Chicago, United States, and IZA, Germany); Christoph Siemroth (University of Mannheim, Germany)
    Abstract: We study the effects of a field experiment designed to motivate employee ideas, at a large technology company. Employees were encouraged to submit ideas on process and product improvements via an online system. In the experiment, the company randomized 19 account teams into treatment and control groups. Employees in treatment teams received rewards if their ideas were approved. Nothing changed for employees in control teams. Our main finding is that rewards substantially increased the quality of ideas submitted. Further, rewards increased participation in the suggestion system, but decreased the number of ideas per participating employee, with zero net effect on the total quantity of ideas. The broader participation base persisted even after the reward was discontinued, suggesting habituation. We find no evidence for motivational crowding out. Our findings suggest that rewards can improve innovation and creativity, and that there may be a tradeoff between the quantity and quality of ideas.
    Keywords: innovation, rewards, creativity, field experiment
    JEL: C93 J24 M52 O32
    Date: 2014–04–08
  37. By: Dudin, Mikhail (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Ljasnikov, Nikolaj (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship); Baranenko, Sergej (Russian Academy of Entrepreneurship); Busygin, Konstantin (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Russian Academy of Entrepreneurship)
    Abstract: separate factors of internal and external environment of industrial enterprises activity are described in the article which determine their opportunities and capabilities for innovation-oriented development. Special attention is paid to ascertaining factors of external environment which determine economic space of functioning and development of industrial enterprises and to the importance of timely identification of signals outgoing from external environment; besides that the authors investigate modern management tools in the form of scenario technologies which can be used for innovation-oriented development of industrial enterprises.
    Keywords: external environment, internal environment, industrial enterprises, innovations, potential, development, foresight designing, road mapping
    Date: 2014

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