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on Innovation |
| By: | L. Lambertini; J. Poyago-Theotoky; A. Tampieri |
| Abstract: | We examine the relationship between competition and innovation in an industry where production is polluting and R&D aims to reduce emissions (“green” innovation). We present an n-firm oligopoly where firms compete in quantities and decide their investment in “green” R&D. When environmental taxation is exogenous, aggregate R&D investment always increases with the number of firms in the industry. Next we analyse the case where the emission tax is set endogenously by a regulator (committed or time-consistent) with the aim to maximise social welfare. We show that an inverted-U relationship exists between aggregate R&D and industry size under reasonable conditions, and is driven by the presence of R&D spillovers. |
| JEL: | Q55 Q56 O30 L13 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp1013&r=ino |
| By: | Guidi, Francesco; Solomon, Edna; Trushin, Eshref; Ugur, Mehmet |
| Abstract: | Theoretical and empirical work on innovation and firm survival has produced varied and often conflicting findings. In this paper, we draw on Schumpeterian models of competition and innovation and stochastic models of firm dynamics to demonstrate that the conflicting findings may be due to linear specifications of the innovation-survival relationship. We demonstrate that a quadratic specification is appropriate theoretically and fits the data well. Our findings from an unbalanced panel of 39,705 UK firms from 1997-2012 indicate that an inverted-U relationship holds for different types of R&D expenditures and sources of funding. We also report that R&D intensity is more likely to increase survival when firms are in more concentrated industries and in Pavitt technology classes consisting of specialized suppliers of technology and scale-intensive industries. Finally, we report that the effects of firm and industry characteristics as well as macroeconomic environment indicators are all consistent with prior findings. The results are robust to step-wise modeling, controlling for left truncation and use of lagged values to address potential simultaneity bias. |
| Keywords: | innovation,R&D,firm dynamics,survival anaysis |
| JEL: | C41 D21 D22 L1 O3 |
| Date: | 2015–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:110896&r=ino |
| By: | Amel ATTOUR (Groupe de Recherche en Droit, Economie et Gestion (GREDEG UMR 7321) - Université de Nice Sophia Antipolis); Pierre BARBAROUX (Centre de recherche de l’Armée de l’air (CReA)) |
| Abstract: | Dans un environnement économique turbulent, marqué par l’extension géographique des marchés et l’intensification de la concurrence, les firmes ont peu à peu adapté leurs modèles d’organisation des activités d’innovation. Ces adaptations se traduisent par l’émergence de nouvelles formes organisationnelles facilitant la collaboration entre parties prenantes du processus d’innovation. Pour rendre compte de ces changements, les chercheurs ont renouvelé les cadres d’analyse du management stratégique de l’innovation. Innovation collaborative, innovation ouverte, communautés d’innovation, living labs … autant de concepts développés par la recherche pour étudier les changements opérés par les entreprises pour gérer leurs activités innovantes. Ce renouvellement des cadres théoriques ne concerne pas uniquement les modes d’organisation de l’innovation. Les dispositifs de gestion des connaissances déployés par les firmes pour innover changent également de nature. Le changement concerne l’ensemble des processus cognitifs impliqués lors des différentes phases du processus d’innovation, de l’invention à la commercialisation de nouveaux produits, services, technologies, procédés et organisations. Sont particulièrement concernés les processus de création, de partage, et d’intégration des connaissances mobilisées pour innover, mais également de protection de la propriété intellectuelle, de financement des projets innovants, de gestion des asymétries cognitives et informationnelles, et de partage des risques associés. Cette évolution conjointe des modèles d’organisation de l’innovation et des processus de gestion des connaissances représente un défi majeur pour les entreprises, ainsi qu’un objet de recherche naissant que cet article se propose d’explorer. In a turbulent economic environment, characterized by the geographical extension of markets and hyper-competition, firms gradually adapted their innovation models. New organizational forms thus emerged, in which innovative firms collaborate with a variety of stakeholders (e.g., suppliers, customers, universities, R&D companies, consultants, users’ communities, financial organization, public actors…) to develop innovation. The foregoing renewal does not concern innovation models only. Knowledge management processes deployed by firms to innovate also evolve. By adapting their innovation models, firms altered the various cognitive activities supporting the invention and commercialization of new product technologies and services. Codification processes, knowledge sharing and transfer, project financing, informational and risk sharing asymmetries have all been affected by that trend towards opening up innovation models. In that view, the co-evolution of innovation models and knowledge management processes represents a major challenge for firms. This joint evolution raises important issues that both economists and organizational theorists that this contribution seeks to address. |
| Keywords: | Innovation ouverte, Innovation collaborative, Gestion des connaissances |
| JEL: | D85 O32 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:rii:rridoc:44&r=ino |
| By: | P. Aghion; U. Akcigit; A. Bergeaud; R. Blundell; D. Hémous |
| Abstract: | In this paper we use cross-state panel data to show a positive and significant correlation between various measures of innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is significant: for example, when measured by the number of patent per capita, innovativeness accounts on average across US states for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation on the top 1% income share are dampened in states with higher lobbying intensity. Finally, from cross-section regressions performed at the commuting zone (CZ) level, we find that: (i) innovativeness is positively correlated with upward social mobility; (ii) the positive correlation between innovativeness and social mobility, is driven mainly by entrant innovators and less so by incumbent innovators, and it is dampened in states with higher lobbying intensity. Overall, our findings vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where innovation itself fosters social mobility at the top through creative destruction. |
| Keywords: | Itop income, inequality, innovation, patenting, citations, social mobility, incumbents, entrant |
| JEL: | O30 O31 O33 O34 O40 O43 O47 D63 J14 J15 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:557&r=ino |
| By: | Valeria Costantini (Department of Economics, Roma Tre University, Rome (Italy)); Francesco Crespi (Department of Economics, Roma Tre University, Rome (Italy)); Alessandro Palma (Department of Economics, Roma Tre University, Rome (Italy)) |
| Abstract: | This paper provides an empirical investigation of the role played by selected characteristics of the policy mix in inducing innovation in energy efficiency technologies. An original dataset covering 23 OECD countries over the period 1990-2010 combines the full set of policies in the energy efficiency domain for the residential sector with data on patents applied over the same period in this specific technological sector. The evidence of a positive policy inducement effect on innovation dynamics is enriched by the following main results: i) policy mix comprehensiveness is influential since countries adopting different instruments show a relatively higher positive inducement effect; ii) inconsistency problems between the different tools forming the policy mix may negatively influence innovation activities when the variety of policy instruments becomes excessive; iii) the different instruments forming the policy mix need to be well balanced in their relative strength in order to reduce potential negative lock-in effects; iv) the greater the external balance of the national policy strategy with the policy setting of other similar countries, the higher the inducement effect on the technological dynamics of the investigated country. Several suggestions for implementing effective policy strategies can be made in this case study that can be potentially extended to other technology domains. |
| Keywords: | eco-innovation, policy mix, policy spillovers, energy efficiency, residential sector. |
| JEL: | O31 O38 Q48 Q55 Q58 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1115&r=ino |
| By: | Byung S. Min; Russell Smyth |
| Abstract: | We examine both the determinants of corporate research and development (R&D) intensity, and its impact on firm value, in Korea, a country in which family business groups are dominant and in which corporate-funded R&D intensity is one of the highest in the world. We find that growth opportunities, size of the firm and payment to executive board members have a positive effect on R&D intensity, while leverage has a negative effect on R&D intensity. When leverage is at an extremely high level, the relationship between growth opportunities and R&D intensity turns from positive to negative. The positive effect of firm size on R&D intensity is larger, the greater the number of subsidiaries the firm has, consistent with the firm engaging in cross-subsidisation. The positive effect of payments to executive board members on R&D intensity is smaller for chaebol affiliates than for stand-alone firms. Using instrument variables we find that R&D generates an increase in firm value. |
| Keywords: | family business; R&D; innovative economy; firm value; chaebol |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2015-25&r=ino |
| By: | Attila Havas (Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences) |
| Abstract: | Given the economic, societal and environmental relevance of innovation, this paper contrasts various models of innovation, compares how innovation is understood in mainstream economics and evolutionary economics of innovation and juxtaposes the concomitant policy rationales. By discussing two monitoring tools used by the European Commission to assess its member states’ innovation performance, it argues that the science-push model of innovation is still highly influential in the EC STI policy circles, in spite of the significance of non-R&D types of knowledge in innovation processes. Then it explores various types of opportunity costs stemming from the persistent high-tech myth, considers possible historical and sociological reasons for its perseverance and discusses policy implications of the systemic view of innovation, with an emphasis on the case of the EU10 countries. Policy conclusions include: i) several policies affect innovation processes and performance, perhaps even more strongly than STI policies, and hence policy goals and tools need to be orchestrated across several policy domains; ii) STI policies should promote learning and knowledge-intensive activities in all sectors, including low- and medium-technology industries and services; iii) analysts and policy-makers need to avoid the trap of paying too much attention to simplifying ranking exercises; iv) new indicators that better reflect the evolutionary processes of learning and innovation would be needed to support analysis and policy-making; v) the choice of an economics paradigm to guide policy evaluation is likely to be decisive. |
| Keywords: | Innovation processes; Sources, forms and types of knowledge; Models of innovation; High-tech myth; Low- and medium-technology sectors; Economics paradigms; STI policy rationales; Measurement of innovation; Composite indicators; Scoreboards, league tables; European Commission; Central and Eastern European countries |
| JEL: | O31 O38 B52 Y10 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:1517&r=ino |
| By: | Aghion, Philippe; Akcigit, Ufuk; Bergeaud, Antonin; Blundell, Richard William; Hemous, David |
| Abstract: | In this paper we use cross-state panel data to show a positive and significant correlation between various measures of innovativeness and top income inequality in the United States over the past decades. Two distinct instrumentation strategies suggest that this correlation (partly) reflects a causality from innovativeness to top income inequality, and the effect is significant: for example, when measured by the number of patent per capita, innovativeness accounts on average across US states for around 17% of the total increase in the top 1% income share between 1975 and 2010. Yet, innovation does not appear to increase other measures of inequality which do not focus on top incomes. Next, we show that the positive effects of innovation on the top 1% income share are dampened in states with higher lobbying intensity. Finally, from cross-section regressions performed at the commuting zone (CZ) level, we find that: (i) innovativeness is positively correlated with upward social mobility; (ii) the positive correlation between innovativeness and social mobility, is driven mainly by entrant innovators and less so by incumbent innovators, and it is dampened in states with higher lobbying intensity. Overall, our findings vindicate the Schumpeterian view whereby the rise in top income shares is partly related to innovation-led growth, where innovation itself fosters social mobility at the top through creative destruction. |
| Keywords: | citations; entrant; incumbents; inequality; innovation; patenting; social mobility; top income |
| JEL: | D63 J14 J15 O30 O31 O33 O34 O40 O43 O47 |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10659&r=ino |
| By: | ONISHI Koichiro; OWAN Hideo; NAGAOKA Sadao |
| Abstract: | Using novel panel data on Japanese inventors, we investigate how monetary incentives affect corporate inventors' behavior and performance, as well as how they interact with the strength of intrinsic motivation. In order to identify the effects, we exploit inventors' responses to a policy change in Japan in the early 2000s that forced firms to strengthen monetary incentives for inventors. Our major findings are as follows: (1) while introducing or increasing revenue-based payments is associated with a small improvement in patent quality, such schemes significantly decrease the use of science in research and development (R&D) projects; (2) the above positive effect of revenue-based payment on patent quality is smaller and the negative effect on scientific intensity is greater in research areas where risk heterogeneity among potential projects is greater; (3) the strength of intrinsic motivation is significantly associated with the inventor's patent productivity; and (4) strong intrinsic motivation weakens the marginal effect of monetary incentive on inventive productivity, and reinforces the negative effect of monetary incentive on scientific intensity in research areas where risk heterogeneity among potential projects is sufficiently large. The results are consistent with our model predictions and imply that strengthening monetary incentives changes project selection toward less risky and less exploratory ones. |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15071&r=ino |
| By: | Hollenstein, Heinz; Berger, Martin |
| Abstract: | The study seeks to identify the determinants of a firm's foreign entry mode choice and the impact of mode selection on firm performance for the specific case of R&D - a topic so far not investigated in entry mode research. Separate estimates of a Heckman selection model for Austria and Switzerland, based on comparable firm-level data and variable specification, show for both countries that the OLI model is well-suited to explain not only the propensity to investing abroad in R&D but also the respective choice between equity-based and non-equity governance modes. Moreover, it turns out, but only for Swiss companies, that foreign R&D raises (domestic) firm performance with a larger impact in case of equity-based governance. The differences between the two countries primarily reflect the much higher degree of R&D internationalisation of Switzerland. |
| Keywords: | internationalisation of R&D,foreign R&D entry mode choice,international R&D cooperation |
| JEL: | F23 L24 O32 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201539&r=ino |
| By: | Edquist, Harald (Ericsson Research); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Since the mid-1990s value added has grown faster in the Swedish business sector than in the business sector of most other OECD countries. We investigate the association between ICT and R&D capital and value added in the Swedish non-farm business sector. By estimating neoclassical production function models on data for 47 different industries for the period 1993–2012 we show that ICT and R&D capital are significantly associated with value added for most specifications. When controlling for economic shocks the results show that on average, if ICT capital increases by 10 percent, value added increases by 1.8 percent. We also divide ICT capital into hardware and software capital. To our knowledge, this distinction has not been made in any previous study at the industry level. In this case only the estimated elasticity of software is significantly different from zero. One possible explanation could be that all industries invest in hardware, but only the ones that successfully invest in and implement software enjoy positive effects from ICT. |
| Keywords: | ICT; R&D; Industrial change; Panel data |
| JEL: | O14 O32 O33 O47 |
| Date: | 2015–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1073&r=ino |
| By: | NAGAOKA Sadao; NISHIMURA Yoichiro |
| Abstract: | This paper examines the determinants of the use of grace periods, as well as their effects on knowledge flow, in order to assess the economic effects based on a large scale panel data of the use of grace periods in Japan. For this purpose we discriminate which of the three views ("acceleration of disclosure," "deferral of domestic patent filing," and "promotion of domestic patenting") best explains the use of grace periods. The major findings are the following. Grace periods are used more for inventions with strong science linkages and in high technology sectors, but for those with a smaller number of claims. Science linkages matter more than the number of claims for academic inventors compared to corporate inventors in using grace periods. Their use has significantly declined in those technology areas with high level of international applications, following the Patent Cooperation Treaty (PCT) Reform in January 2004, allowing, in particular, automatic designation of all PCT contracting states. Critically, the use of grace periods significantly increased the knowledge diffusion to third parties as measured by non-self forward citations, relative to self-citations. Such effect is stronger than that of ex-post academic disclosure, following the patent application or its publication. These results show that the main motivation of the use of grace periods is the acceleration of disclosure, and that they enhance knowledge diffusion and are likely to enhance social welfare. |
| Date: | 2015–06 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15072&r=ino |
| By: | Blom, Annelies G.; Burton, Jonathan; Booker, Cara L.; Cernat, Alexandru; Fairbrother, Malcolm; Jäckle, Annette; Kaminska, Olena; Keusch, Florian; Krosnick, Jon A.; Lynn, Peter; Oberski, Daniel; Pudney, Stephen; Sala, Emanuela; Schnettler, Sebastian; Silber, Henning; Stark, Tobias H; Uhrig, S.C. Noah; Yan, Ting |
| Abstract: | This paper presents some preliminary findings from Wave 7 of the Innovation Panel (IP7) of Understanding Society: The UK Household Longitudinal Study. Understanding Society is a major panel survey in the UK. In June 2014, the seventh wave of the Innovation Panel went into the field. IP7 includes a new refreshment sample and used a mixed-mode design, using on-line interviews and face-to-face interviews. This paper describes the design of IP7, the experiments carried and the preliminary findings from early analysis of the data. |
| Date: | 2015–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:ese:ukhlsp:2015-03&r=ino |
| By: | Jeon, Doh-Shin; Lefouili, Yassine |
| Abstract: | We study bilateral cross-licensing agreements among N (> 2) competing firms. We find that the fully cooperative royalty, i.e., the one that allows them to achieve the monopoly profit, can be sustained as the outcome of bilaterally efficient agreements, regardless of whether the agreements are public or private and whether firms compete in quantities or prices. We extend this monopolization result to a general class of two-stage games in which firms bilaterally agree in the first stage to make each other payments that depend on their second-stage non-cooperative actions. Policy implications regarding the antitrust treatment of cross-licensing agreements are derived. |
| Keywords: | Cross-Licensing, Royalties, Collusion, Antitrust and Intellectual Property. |
| JEL: | D43 L13 L24 L41 O34 |
| Date: | 2015–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:29318&r=ino |
| By: | Hyojeong Lim (Korea Institute of Intellectual Property) |
| Abstract: | Based on the assumption that intellectual property rights are a driver of economic development, this paper aims to estimate the production elasticity of intellectual property stocks in Korea. The unbalanced panel data during 2005-2012 is constructed with 29 manufacturing and service industries and applied to a Cobb-Douglas production function. Empirical results confirm that the stock of patents, the stock of trademarks, and the stock of design rights significantly contribute to Korean economic growth in the 2000s, respectively. Whereas the production elasticity of intellectual property stocks differs in the characteristics of patents, trademarks and design rights, the results show that increases in trademark stocks are the most influential factor in economic growth. |
| Keywords: | Production Elasticity, Intellectual Property Stock, Cobb-Douglas Production Function, Panel Data |
| JEL: | O00 O30 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2503617&r=ino |