nep-ino New Economics Papers
on Innovation
Issue of 2015‒09‒05
thirty-one papers chosen by
Uwe Cantner
University of Jena

  1. R&D policies in France: New evidence from a NUTS3 spatial analysis By Montmartin, B.; Herrera, M.; Massard, N.
  2. Types of knowledge and diversity of business-academia collaborations: Implications for measurement and policy By Havas, Attila
  3. Commercial success of innovation: the roles of R&D cooperation and firm age By Koski, Heli
  4. Innovation, investor sentiment, and firm-level experimentation By Aramonte, Sirio
  5. Innovation-related Public Procurement as a Demand-oriented Innovation Policy Instrument By Edquist , Charles
  6. First Mover Advantages and Optimal Patent Protection By Scherer, F. M.
  7. Uma perspectiva sobre a evolução do sistema de inovação industrial gaúcho: análise dos resultados das pesquisas de inovação (pintec) 2000 e 2011. By Oliveira, Livio Luiz Soares de
  8. Accelerating the Cleantech Revolution: Exploring the Financial MobilisationFunctions of Institutional Innovation Intermediaries By Friedemann Polzin; Paschen von Flotow; Laurens Klerkx
  9. The role of regional sectoral specialization on the geography of innovation networks: a comparison between firms located in regions in developed and emerging economies By Plechero, Monica; Chaminade , Cristina
  10. The effect of public support on R&D employment in small firms By V. DORTET-BERNADET; M. SICSIC
  11. Did the Reduction of ICT Investment Due to the 2008 Economic Crisis Affect the Innovation Performance of Firms? By Spyros Arvanitis; Euripidis Loukis
  12. Energy Technology Expert Elicitations for Policy: Workshops, Modeling, and Meta-analysis By Diaz Anadon, Laura; Bosetti, Valentina; Chan, Gabriel; Nemet, Gregory; Verdolini, Elena
  13. ​ Intangible Investment and Technical Efficiency: The Case of Software-Intensive Manufacturing Firms in Turkey By Derya Findik; Aysit Tansel
  14. Déterminer la valeur de l’innovation en train de se faire, c’est aussi et déjà innover. By Philippe Bertheau; Gilles Garel
  15. Evaluation et valorisation lors de la conception innovante : vers un contrôle de gestion de l'immatériel adapté aux processus d'innovation; By Philippe Bertheau; Claude Roche; Nicolas Dufour
  16. Technology Entry in the Presence of Patent Thickets By Bronwyn H. Hall; Christian Helmers; Georg von Graevenitz
  17. Same Place, Same Knowledge – Same People? The Geography of Non-Patent Citations in Dutch Polymer Patents By Dominik Heinisch; Önder Nomaler; Guido Buenstorf; Koen Frenken; Harry Lintsen
  18. Competition and Product Innovation of Intermediaries in a Differentiated Duopoly By Sonja Brangewitz; Jochen Manegold
  19. Digitization of heritage collections as indicator of innovation By Borowiecki, Karol J.; Navarrete, Trilce
  20. Describing and assessing co-design competences By Valérie Chanal; Jacques Raynauld
  21. The Use of Science for Inventions and its Identification: Patent level evidence matched with survey By NAGAOKA Sadao; YAMAUCHI Isamu
  22. Where Does the Surplus Go? Disentangling the Capital-Labor Distributive Conflict By Francesco Bogliacino; Dario Guarascio; Valeria Cirillo
  23. TEST / The Agro-Food Industry, Public Health and Environmental Protection: Investigating the Porter Hypothesis in Food Regulation By PONSSARD Jean-Pierre; SINCLAIR DESGAGNÉ Bernard; SOLER Louis-Georges; GIRAUD HERAUD Eric
  24. Du cluster créatif à la ville créative, fondements économiques By Dominique Sagot-Duvauroux
  25. Distributed tuning of boundary resources: the case of Apple's iOS service system By Ben Eaton; Silvia Elaluf-Calderwood; Carsten Sorensen; Youngjin Yoo
  26. Startups, Financing and Geography– Findings from a survey By Bjuggren, Per-Olof; Elmoznino Laufer, Michel
  27. The Leap of the Tiger: How Malaysia Can Escape the Middle-Income Trap By Reda Cherif; Fuad Hasanov
  28. Measuring progress in transnational coordination of research programming in Europe By Karel Haegeman; Mathieu Doussineau; Mark Boden
  29. Voter Suppression or Voter Fraud in the 2014 US Elections? By Norris, Pippa; Garnett, Holly Ann
  30. Human Rights and the OECD Guidelines for Multinational Enterprises: Normative Innovations and Implementation Challenges By Ruggie, John; Nelson, Tamaryn
  31. Migration, Entrepreneurship and Development: A Critical Review By Naudé, Wim; Siegel, Melissa; Marchand, Katrin

  1. By: Montmartin, B.; Herrera, M.; Massard, N.
    Abstract: The French policy-mix for R&D and innovation has deeply evolved in recent years and is nowadays, one of the most generous and market-friendly system in the world. This paper investigates the (evolutive) effects of this policy-mix by using a unique database containing information on the amount of R&D tax credit, regional, national and European subsidies received by firms in all French metropolitan NUTS3 regions over the period 2001-2011. By estimating a Spatial Durbin model with regimes and fixed effects, we provide new evidence on the efficiency of the French policy-mix. First, a yardstick competition between NUTS3 regions for R&D investment driven by negative spatial spillovers is found. Second, it seems that national subsidies are the only instrument able to generate a significant leverage effect on privately-financed R&D. Third, due to the context of spatial competition, the three other policies studied (Tax Credit, Regional and European subsidies) do not generate significant leverage or crowding-out effect. Fourth, we highlight the presence of structural breaks in our data that correspond to the last two important reforms of the French tax credit. Consequently, the effect of R&D policies and especially R&D tax credit are likely to change over time and influence ex-post evaluation results.
    JEL: H25 O31
    Date: 2015
  2. By: Havas, Attila
    Abstract: Analysis of business-academia (B-A) collaborations typically relies on a single method, addressing one or two major research questions. In contrast, this article tackles both R&D and innovation collaborations among businesses and academia relying on information using multiple methods and multiple sources of information to offer insights on dynamics and qualitative features of these co-operation processes. Interviews conducted in Hungary – in line with other research findings – have also confirmed that (i) motivations, incentives for, and norms of, conducting R&D and innovation activities diametrically differ in business and academia; and (ii) different types of firms have different needs. Thus, more refined policy measures are to be devised to promote B-A collaboration more effectively, better tuned to the needs of the actors, based on a relevant taxonomy of their co-operations. Evaluation criteria for academics should also be revised to remove some major obstacles, currently blocking more fruitful B-A co-operation. Several findings can be generalised beyond the cases considered, suggesting the need for a deeper understanding of the role of intermediaries in the Triple Helix and for broader comparative analysis of innovation policies. The research design to analyse B-A collaborations always needs to be tailored to the innovation system in question, just as the concomitant policy recommendations.
    Keywords: Types of knowledge; Diversity in business-academia collaboration; Multiple methods to map business-academia collaborations; STI policy implications
    JEL: I23 I28 O33 O38 O52
    Date: 2014–12–20
  3. By: Koski, Heli
    Abstract: Data comprising 1790 Finnish firms and covering the years 2006-2012 suggest that turnover from innovative sales per employee were higher for both young firms - particularly for young innovative companies (or YICs) - and older incumbents that had broad innovation collaboration involving vertical, horizontal and institutional partners. Younger firms with simultaneous horizontal and vertical innovation collaboration tend to also generate higher turnover due new products and services, while this type of collaboration did not appear statistically significant in innovation production function for older incumbents. Our data further indicate that not only the relationship between inventor age and patentable inventions at the inventor level is inversely u-shaped – as previous studies report - but also the relationship between employee age structure and the generation of commercially successful products and services at the firm level follows the same pattern. High education of employees distinguished particularly the top performers from others at the highest 0.9 quantile of turnover from innovative sales per employee. Furthermore, firms with relatively highly educated employees and broad innovation collaboration had clearly higher returns from innovative sales per employee than other firms, while none of the innovation collaboration types was statistically significantly related to the innovation output of firms with relatively low education of employees.
    Keywords: innovation performance, R&D cooperation, human capital
    JEL: L2 O31 O32
    Date: 2015–08–14
  4. By: Aramonte, Sirio (Board of Governors of the Federal Reserve System (U.S.))
    Abstract: Due to frictions like informational externalities, firms invest too little in learning the productivity of newly available technologies through small-scale experimentation. I study the effect of investor sentiment on the relation between technological innovation and future firm-level R&D expenses, which include the resources used for small-scale experimentation. I find that rapidly improving investor sentiment strengthens the effect of technological innovation on one-year-ahead R&D expenses, and that the effect is more pronounced for high-tech firms with tighter financing constraints. The results are not driven by sentiment proxying for technological innovation or by sentiment and R&D expenses being jointly determined. The evidence is consistent with the hypothesis that sentiment counteracts frictions in the process of technology diffusion.
    Keywords: Investor sentiment; R&D; Technological innovation
    JEL: G02 G31 O32 O33 O40
    Date: 2015–08–12
  5. By: Edquist , Charles (CIRCLE, Lund University)
    Abstract: The purpose in this paper is to show how public procurement can be a driver of innovation. The purpose and point of departure when using public procurement as an instrument of innovation policy is always to solve societal and environmental problems, to satisfy human needs or to meet global challenges. The paper is aimed at everyone who is involved or interested in public procurement, and especially in how this can promote innovation processes. Historically innovation policy has been strongly dominated by supply-push oriented instruments (measures). This linear view is actually still dominating in practical innovation policy pursued, but no longer so much in policy analysis – and certainly not among innovation researchers. In other words, the linear view is completely rejected in innovation research, but still dominates innovation policy. Innovation policy is all actions by public organizations that influence innovation processes. The choice of innovation policy instruments is a very important part of the formulation of an innovation policy. There are potentially scores, or perhaps hundreds, of innovation policy instruments to choose from. A combination of two or more instruments must often be used to solve each specific problem. They are thus combined into an “instrument mix”. Demand-based innovation policy instruments are those that influence innovation processes from the demand side. In this paper, we will very much concentrate on one kind of demand-side innovation policy instrument: innovation-related public procurement. The reason for choosing innovation-related public procurement in particular, is that it is potentially by far the most powerful kind of demand-side innovation policy instrument available. It might even potentially be the most powerful instrument among all innovation policy instruments. Public procurement of different types may affect both the speed and path of innovation development.
    Keywords: Innovation policy; innovation system; demand-side innovation policy; innovation policy instruments
    JEL: O25 O30 O31 O32 O33 O38 O49
    Date: 2015–08–16
  6. By: Scherer, F. M. (Harvard University)
    Abstract: This paper advances the analysis of incentives for technological innovation by examining the conditions under which first mover advantages--e.g., a head start, the necessity for imitators to incur their own research and development costs, production cost advantages derived inter alia through learning by doing, and the reputational "image" advantages of first movers--provide an adequate substitute for patent protection. The paper begins by modifying the pioneering analysis of William Nordhaus to deal with product innovations. Computer simulations then investigate whether profitability under diverse first mover advantages is sufficient to motivate investment in research and development. Cases emerge under which incentives are insufficient without patent protection, most notably, when target markets are small, imitation lags are short, and imitators' erosion of the innovator's market share is rapid. But in the majority of cases investigated, innovation is profitable even without patent protection. Tentative implications for patent policy are proposed.
    Date: 2015–05
  7. By: Oliveira, Livio Luiz Soares de
    Abstract: This work aims to present the main results of the analysis of the data provided by the Innovation Survey (PINTEC) 2000 and 2011 for the state of Rio Grande do Sul, Brazil. This paper also defines technical concepts of innovation according to the main manuals dealing with the development of indicators systems for Science, Technology and Innovation (ST & I). The results of PINTEC 2011 are compared with those from the 2000 PINTEC in order to infer the innovative performance of manufacturing companies at Rio Grande do Sul and Brazil during the period analyzed in this study. We conclude that regional manufacturing industry firms have become more innovative, in average, than those located in other Brazilian states.
    Keywords: Company, innovation, PINTEC
    JEL: L10 O30
    Date: 2015
  8. By: Friedemann Polzin (1 EBS Business School, Strascheg Institute for Innovation and Entrepreneurship (SIIE), Rheingaustr. 1, 65375 Oestrich-Winkel, Germany; Sustainable Business Institute (SBI), Burgstr. 4, 65375 Oestrich-Winkel, Germany); Paschen von Flotow (Sustainable Business Institute (SBI), Burgstr. 4, 65375 Oestrich-Winkel, Germany); Laurens Klerkx (Knowledge, Technology and Innovation Group, Wageningen University, Hollandseweg 1, 6706 KN, Wageningen, The Netherlands)
    Abstract: This research article explores the role of innovation intermediaries to accelerate the commercialisation of (clean) technologies. Drawing from the finance and innovation intermediaries literatures we show that financial barriers to eco-innovation can be partly overcome by particular functions of innovation intermediaries which in turn mobilises private finance along the innovation process. Therefore, we empirically evaluate roles and instruments of institutional innovation intermediaries (innovation intermediation, policy support, public-private cooperation, financial instruments). We contribute an intersection of the finance and innovation systems literature, by exploring the ‘financial mobilisation functions’ of innovation intermediaries to address barriers for eco-innovation along the innovation process.
    Keywords: Intermediaries, management of technological innovation and R&D, barriers, thin markets, financial instruments, governmentpolicy, information asymmetries
    JEL: G23 G24 O32 Q38 Q55 Q58
    Date: 2015–08
  9. By: Plechero, Monica (DEAMS – University of Trieste, Italy & CIRCLE, Lund University); Chaminade , Cristina (CIRCLE, Lund University)
    Abstract: Recently, there has been a rise of contributions in innovation and economic geography studies on how firms from specific industries and regional innovation systems (RISs) rely on international networks to innovate. So far, the focus has been on single cases, firms located in well-known RISs and international linkages, without really distinguishing those with geographically close partners from those with partners from distant locations. Using primary firm-level data, this article compares the patterns of collaboration for innovation in a selection of Swedish, Norwegian, Chinese and Indian regions with an ICT cluster specialization. The results show that firms in RISs in emerging economies tend to link more to innovation networks with a real global character, particularly in relation to new-to-the-world innovation. It also shows that firms in the most successful RISs in ICT clusters rely more than others on networks with organizations in close proximity.
    Keywords: Globalization; innovation networks; developed economies; emerging economies; China; India; Sweden; Norway; regional innovation system; cluster specialization; ICT; new-to-the-world innovation
    JEL: O18 O33
    Date: 2015–08–16
  10. By: V. DORTET-BERNADET (Insee); M. SICSIC (Insee)
    Abstract: Between 2003 and 2010, total R&D public support (tax incentives and subsidies) targeted at SMEs increased by more than 300%: in 2010 it amounted to almost 2 billion euros, of which 26% (nearly 500 million euros) were perceived by very small businesses (fewer than 10 employees). This sharp increase is mainly explained by two reforms of the R&D tax credit (in 2004 and 2008) and a new public program dedicated to young innovative enterprises launched in 2004. An aggregate analysis shows that the share of R&D personnel financed by public funding has been multiplied by four for very small businesses, from 14% in 2003 to 49% in 2010. This change was accompanied by a decline of privately funded R&D personnel employed by very small businesses (and other SMEs to a lesser extent). An econometric analysis of a panel of small firms active in R&D intensive sectors tends to confirm this agregate finding at the firm level: R&D public support appears to have a positive impact on highly qualified and R&D employment but the impact on the associated labor costs appears to be significantly lower than the increase of the public financing, particularly from 2008.
    Keywords: R&D tax credit, subsidies, public policy evaluation, difference-in-differences
    JEL: O38 H25 C23
    Date: 2015
  11. By: Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Euripidis Loukis (University of Aegean, Samos, Greece)
    Abstract: In this paper we investigate empirically, first, the characteristics of the firms that reduced their ICT investment due to the 2008 crisis, particularly the firms’ ICT-related characteristics in terms of ICT budget, skills and applications used. The analysis of the ICT characteristics that may influence the likelihood of having reduced ICT investment as a consequence of the crisis is primarily explorative, thus driven by available data and economic intuition. The second research question we examine empirically refers to the possibility that an economic crisis could affect innovation performance through the ICT investment channel. In connection with this, it is also interesting to analyze the ICT characteristics that are associated with ICT-enabled innovation performance. This is the third research question of this paper. Our study is based on firm data from the glass/ceramics/cement industry in six European countries. We find that ICT-related crisis vulnerability correlates positively with decreasing ICT budgets (pro-cyclical investment behaviour), the existence of skill deficits in ICT, the awareness of and interest in novel ICT applications that presumably request much additional ICT investment, the exposure to strong price competition and the strong presence in international markets, in which activities have significantly decreased due to the crisis. Further, statistically significant negative relationship between ICT-enabled product innovation and crisis vulnerability (pro-cyclical behaviour) is found only for new products or services that contain ICT components, and are therefore directly affected by crisis-related decreasing product demand. Employment of specialized ICT personnel, ICT outsourcing (only for process innovation), competition (only for product innovation), and the use of some ICT applications specific to the kind of innovation pursued are ICT characteristics that positively correlate with ICT-enabled innovation.
    Keywords: economic crisis, information and communication technologies (ICT), innovation, ICT-enabled innovation
    JEL: O31
    Date: 2015–08
  12. By: Diaz Anadon, Laura (Harvard University); Bosetti, Valentina (Harvard University); Chan, Gabriel (Harvard University); Nemet, Gregory (Harvard University); Verdolini, Elena (Harvard University)
    Abstract: Characterizing the future performance of energy technologies can improve the development of energy policies that have net benefits under a broad set of future conditions. In particular, decisions about public investments in research, development, and demonstration (RD&D) that promote technological change can benefit from (1) an explicit consideration of the uncertainty inherent in the innovation process and (2) a systematic evaluation of the tradeoffs in investment allocations across different technologies. To shed light on these questions, over the past five years several groups in the United States and Europe have conducted expert elicitations and modeled the resulting societal benefits. In this paper, we discuss the lessons learned from the design and implementation of these initiatives in four respects. First, we discuss lessons from the development of ten energy-technology expert elicitation protocols, highlighting the challenge of matching elicitation design with a particular modeling tool. Second, we report insights from the use of expert elicitations to optimize RD&D investment portfolios. These include a discussion of the rate of decreasing marginal returns to research, the optimal level of overall investments, and the sensitivity of results to policy scenarios and selected metrics for evaluation. Third, we discuss the effect of combining online elicitation tools with in-person group discussions on the usefulness of the results. Fourth, we summarize the results of a meta-analysis of elicited data across research groups to identify the association between expert characteristics and elicitation results.
    Date: 2014–11
  13. By: Derya Findik (Science and Technology Policy Studies Program, Middle East Technical University 06800 Ankara, Turkey); Aysit Tansel (Cornell University, Ithaca, USA & Middle East Technical University, Ankara, Turkey)
    Abstract: This chapter analyzes the effect of intangible investment on firm efficiency with an emphasis on its software component. Stochastic production frontier approach is used to simultaneously estimate the production function and the determinants of technical efficiency in the software intensive manufacturing firms in Turkey for the period 2003-2007. Firms are classified based on the technology group. High technology and low technology firms are estimated separately in order to reveal differentials in their firm efficiency. The results show that the effect of software investment on firm efficiency is larger in high technology firms which operate in areas such as chemicals, electricity, and machinery as compared to that of the low technology firms which operate in areas such as textiles, food, paper, and unclassified manufacturing. Further, among the high technology firms, the effect of the software investment is smaller than the effect of research and development personnel expenditure. This result shows that the presence of R&D personnel is more important than the software investment for software intensive manufacturing firms in Turkey.
    Date: 2015
  14. By: Philippe Bertheau (LIRSA - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - Conservatoire National des Arts et Métiers [CNAM]); Gilles Garel (CNAM Paris - Conservatoire National des Arts et Métiers - Paris - Conservatoire National des Arts et Métiers [CNAM])
    Abstract: Research states that the success of a specific innovation cannot be predicted. As a consequence, the value of such an innovation can only be stated very late in the development process, or even in retrospect. Based on C-K design-theory, our empirical research shows that professionals directly engaged in the design process are able to perform an early and complete valuation. The cognitive process of this valuation is extremely similar to the overall process of innovative design. Also, this process has tangible outputs, in particular local, dedicated management tools used as proofs of concepts.
    Abstract: La recherche en gestion a établi l'imprévisibilité du succès d'une innovation. Un corollaire largement accepté veut que la détermination de la valeur de cette innovation ne puisse être que tardive, voire rétrospective. Nous observons dans cette recherche que les acteurs directs de l'innovation sont à même de procéder à une détermination de la valeur précoce, complète et révisable. Nous appuyant sur la théorie C-K, nous montrons que ces équipes appliquent à la détermination de la valeur le même type de raisonnement qu'à l'innovation elle-même. Nous montrons également que ce travail de conception innovante passe par la génération d'outils de gestion locaux, souvent à l'usage exclusif du projet et utilisés pour mettre à l'épreuve les différents concepts de valeur.
    Date: 2015
  15. By: Philippe Bertheau (LIRSA - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - Conservatoire National des Arts et Métiers [CNAM]); Claude Roche (Institut supérieur de l'électronique et du nunérique (ISEN)); Nicolas Dufour (ESG Paris – School of Business)
    Abstract: The success of a specific innovation cannot be predicted with confidence-it is a widely accepted result of research. As a consequence, the value of this innovation remains unknown until very late in the design process. Building on recent results from research on qualitative control, we take a different position and work on the hypothesis that stakeholders directly involved in the innovation are able to run a useful, early and complete " valuation " process.
    Abstract: Le succès d'une innovation est imprévisible, c'est un résultat bien établi dans la littérature. On en déduit généralement que la détermination de la valeur de cette innovation ne peut être que tardive, voire rétrospective. En nous appuyant sur les apports récents du contrôle de gestion qualimétrique, nous cherchons à invalider ce postulat et posons que les acteurs directs de l'innovation sont à même de procéder, dans le cadre d'un processus auquel s'appliquent les règles mêmes de la conception innovante, à une « valuation » précoce et complète, dans un double mouvement d'évaluation et de valorisation.
    Date: 2015
  16. By: Bronwyn H. Hall; Christian Helmers; Georg von Graevenitz
    Abstract: We analyze the effect of patent thickets on entry into technology areas by firms in the UK. We present a model that describes incentives to enter technology areas characterized by varying technological opportunity, complexity of technology, and the potential for hold-up in patent thickets. We show empirically that our measure of patent thickets is associated with a reduction of first time patenting in a given technology area controlling for the level of technological complexity and opportunity. Technological areas characterized by more technological complexity and opportunity, in contrast, see more entry. Our evidence indicates that patent thickets raise entry costs, which leads to less entry into technologies regardless of a firm’s size.
    JEL: K11 L20 O31 O34
    Date: 2015–08
  17. By: Dominik Heinisch; Önder Nomaler; Guido Buenstorf; Koen Frenken; Harry Lintsen
    Abstract: It has long been argued that geographic co-location supports knowledge spillovers. More recently, this argument has been challenged by showing that knowledge spillovers mainly flow through social networks, which may or may not be localized at various geographic scales. We further scrutinize the conjecture of geographically bounded knowledge spillovers by focusing on knowledge flows between academia and industry. Looking into citations to non-patent literature (NPL) in 2,385 Dutch polymer patents, we find that citation lags are shorter on average if Dutch rather than foreign NPLs are cited. However, when excluding individual and organizational self-citations, geographically proximate NPLs no longer diffuse faster than foreign NPLs. This suggests that knowledge is not “in the air” but transferred by mobile individuals and/or direct university-industry collaboration. Our findings moreover suggest an important role of international conferences in the diffusion of recent scientific knowledge.
    Keywords: Non-patent literature, citation lags, knowledge spillovers, university-industry interaction, polymer industry.
    JEL: O33 R10 L65
    Date: 2015–08
  18. By: Sonja Brangewitz (University of Paderborn); Jochen Manegold (University of Paderborn)
    Abstract: On an intermediate goods market we allow for vertical and horizontal product differentiation and analyze the influence of simultaneous competition for resources and customers on the market outcome. Asymmetries between intermediaries cannot arise just from distinct product qualities, but also from different production technologies. The intermediaries face either price or quantity competition on the output market and a monopolistic input supplier on the input market. We find that there exist quality and productivity differences such that for quantity competition only one intermediary is willing to procure inputs from the input supplier, while for price competition both intermediaries are willing to purchase inputs. Considering product innovation for symmetric productivities we derive equilibrium conditions on the investment costs and compare price and quantity competition. It turns out that on the one hand there exist product qualities and degrees of horizontal product differentiation for complements such that asymmetric investment equilibria fail to exist. On the other hand we find that there also exist product qualities and degrees of horizontal product differentiation for substitutes such that existence can be guaranteed if the investment costs are chosen accordingly.
    Keywords: Input Market, Product Quality, Quantity Competition, Price Competition, Product Innovation
    JEL: L13 D43 C72
    Date: 2015–04
  19. By: Borowiecki, Karol J. (Department of Business and Economics); Navarrete, Trilce (Department of Business and Economics)
    Abstract: Heritage institutions house cultural and research content, which is the key source to stimulate innovation. Despite the potential, heritage collections are mostly inaccessible via digital mediums. We analyze the macro, meso and micro conditions of heritage organizations across Europe to identify the key determinants that foster innovation as reflected by the share of collection digitization and online publication. We find that organizations respond positively to an environment of high consumer digital literacy and sustainable resource allocation that enables slack, skilled staff and long-term strategic planning. Innovation is thus, in fact, enhanced by digital literacy from both producers as well as consumers.
    Keywords: Innovation; digitization; heritage collections; cultural institution
    JEL: O31 Z10
    Date: 2015–09–01
  20. By: Valérie Chanal (Centre d'études et de recherches appliquées à la gestion (Grenoble) - CERAG - Centre d'études et de recherches appliquées à la gestion - Grenoble 2 UPMF - Université Pierre Mendès France - CNRS, Management, entrepreneuriat, innovation - CERAG - Centre d'études et de recherches appliquées à la gestion - Grenoble 2 UPMF - Université Pierre Mendès France - CNRS); Jacques Raynauld (HEC MONTRÉAL - HEC MONTRÉAL)
    Abstract: Graduate innovation courses are still mostly discipline-specific (marketing, design, etc.) and rely on traditional knowledge acquisition. To get a better understanding of the innovation learning process, we adopt a co-design perspective where participants from different disciplines are working simultaneously and collectively to develop an idea. We then propose a set of seven co-design competences and 23 associated observable indicators to guide students in their learning endeavor and to help evaluators in their assessment tasks. We finally briefly discuss a companion portfolio tool to implement this process.
    Date: 2014
  21. By: NAGAOKA Sadao; YAMAUCHI Isamu
    Abstract: While backward citation information disclosed in patent documents is often used for tracing the scientific sources of innovations, it is still poorly understood how well the backward citations trace the actual knowledge flow from science. This paper directly evaluates both the completeness and the noise of the inventor citation information, linking the results of an original inventor survey on scientific sources to the dataset of non-patent literatures (NPLs) revealed in the entire patent document. We find that patent citations to NPLs are not only noisy but also highly incomplete. More important science sources are not necessarily more revealed. However, controlling for the propensity to cite NPLs, our estimation results show that the revealed NPLs are more likely to predict the existence of important scientific sources when the inventor refers to highly cited scientific literature early after its publication. We also find that the NPLs revealed at the place where an invention is described provide important additional information in identifying science sources.
    Date: 2015–08
  22. By: Francesco Bogliacino; Dario Guarascio; Valeria Cirillo
    Abstract: The evidence on growing inequality in OECD countries has raised an important debate over its main drivers, pointing out an increasing importance of capital-labour conflict. In this contribution, we aim at disentangling the role of some of the forces shaping this process. Our identification strategy relies on the sequential nature of wage setting and profits realization, in line with theoretical insights from the range theory of wages (postulating rents sharing at the shop floor level) and the principle of effective demand. In particular we focus on the role of technology and offshoring as instruments to create surplus and to shape the bargaining power of the parties involved in wage setting, and on different sources of demand as heterogeneous determinants of profits realization. The empirical analysis is performed on a panel of 38 manufacturing and service sectors over four time periods from 1995 to 2010, covering Germany, France, Italy, Spain, and United Kingdom. The contrasting effects of R&D and offshoring emerge as determinants of wages. Investment and internal demands are key variables in the realization of profits. When we look at the heterogeneity of the effects we see three main stylized facts. First of all, distinguishing for technological domain using Pavitt classes we can see that rents are effectively related with upgraded industries. Secondly, when we distinguish for the degree of openness we can see that, again, rents are mainly shared in open industries. Finally, when we disentangle the effect on wages per skill level, it is possible to confirm the intuition that offshoring hits the medium-low skill categories.
    Keywords: rent; surplus; distribution; inequality; offshoring; R&D
    JEL: O33 F15 J31
    Date: 2015–08–19
  23. By: PONSSARD Jean-Pierre; SINCLAIR DESGAGNÉ Bernard; SOLER Louis-Georges; GIRAUD HERAUD Eric
    Abstract: Sustainable food concerns have pushed public authorities to act by means of regulations,\r\nstandards and other devices, and businesses to innovate in their products and production processes.\r\nWe argue that the Porter Hypothesis – which asserts that properly designed and implemented\r\nenvironmental regulation might be good for society as well as the targeted firms – might well be verified in this context. After reviewing and illustrating the working principles and main criticisms of this hypothesis, we provide a more in-depth discussion of nutritional issues. While the literature generally points to organizational imperfections and market failures to validate the Porter Hypothesis,we submit and model another rationale for the agro-food industry, a rationale that is based on consumer behavior.
    Keywords: Sustainable food; Regulation; Innovation; Consumer behavior; Porter Hypothesis.
    JEL: L13 L51 Q55 Q58
    Date: 2015
  24. By: Dominique Sagot-Duvauroux (Granem - Groupe de Recherche ANgevin en Economie et Management - UA - Université d'Angers - Agrocampus Ouest - Institut National de l'Horticulture et du Paysage)
    Abstract: Clusters créatifs, quartiers culturels, villes créatives… Depuis quelques années, ces termes n’apparaissent plus seulement dans la littérature académique mais également dans le discours des responsables politiques pour qualifier une stratégie de développement d’un territoire qui s’appuie sur les industries créatives. Les exemples de villes qui ont relancé leur économie grâce à des investissements dans la culture (Bilbao, Nantes, Lille…) et à l’opposé le constat de villes mortes de ne pas avoir su envisager à temps leur reconversion (Détroit aux Etats-Unis par exemple) sont largement commentés.  Ces termes prêtent cependant à confusion dans la mesure où ils renvoient à des réalités et des analyses sensiblement différentes. Le terme de « cluster » par exemple est issu de l’économie industrielle et décrit une concentration d’entreprises appartenant à une même filière sur un territoire donnée. Celui de « ville créative »  insiste sur l’écosystème que peut représenter une ville pour stimuler l’innovation et la créativité. Clusters créatifs et villes créatives s’inscrivent cependant dans les grandes transformations que connait aujourd’hui l’économie mondiale. L’objet de cet article est de montrer que l’émergence du concept de  villes créatives résulte de la convergence de trois corpus théoriques qui se sont longtemps développés en parallèle, l’économie de la culture classique, l’économie des clusters industriels et l’économie créative.
    Date: 2014
  25. By: Ben Eaton; Silvia Elaluf-Calderwood; Carsten Sorensen; Youngjin Yoo
    Abstract: The digital age has seen the rise of service systems involving highly distributed, heterogeneous, and resource-integrating actors whose relationships are governed by shared institutional logics, standards, and digital technology. The cocreation of service within these service systems takes place in the context of a paradoxical tension between the logic of generative and democratic innovations and the logic of infrastructural control. Boundary resources play a critical role in managing the tension as a firm that owns the infrastructure can secure its control over the service system while independent firms can participate in the service system. In this study, we explore the evolution of boundary resources. Drawing on Pickering’s (1993) and Barrett et al.’s (2012) conceptualizations of tuning, the paper seeks to forward our understanding of how heterogeneous actors engage in the tuning of boundary resources within Apple’s iOS service system. We conduct an embedded case study of Apple’s iOS service system with an in-depth analysis of 4,664 blog articles concerned with 30 boundary resources covering 6 distinct themes. Our analysis reveals that boundary resources of service systems enabled by digital technology are shaped and reshaped through distributed tuning, which involves cascading actions of accommodations and rejections of a network of heterogeneous actors and artifacts. Our study also shows the dualistic role of power in the distributed tuning process.
    Keywords: Service system innovation; mobile platform; ecosystem; digital infrastructure; boundary resource dynamics; tuning; sociomateriality; iOS
    JEL: J50 L81
    Date: 2015
  26. By: Bjuggren, Per-Olof (The Ratio institute and Jönköping School of Economics.); Elmoznino Laufer, Michel (The Ratio institute)
    Abstract: This paper investigates the importance of bank loans for the financing of startups and how location matters for expansion plans and financing. We will show that there has not been sufficient attention paid to legal form when distinguishing between the external and internal financing of startups. The focus will be on the corporate form of business and the implications of this legal form for what can be considered external financing. In the analysis of how location matters, we will draw upon the literature about agglomeration and knowledge spillovers. The two main questions posed are: How does the corporate form matter for what can be considered the external financing of startups, and how does location matter for expansion plans and financing? To provide empirical answers to these questions, both survey data and registry data have been used. The survey data are from a questionnaire sent out to startups listed in the files of the Swedish Jobs and Society Foundation. We looked at corporations founded during the period 2009-2013 that family firms in terms of ownership structure. The survey indicated that bank loans are rare and had to be backed up with personal assets used as collateral and personal guarantees of repayment for the majority of the firms who had used bank loans. Essentially, the entrepreneur personally takes most of the business risk. Bank loans have, to a large extent, the character of internal financing. Combining registry data with the qualitative data from the survey, we used regression analysis to further study differences due to location. The regression analysis showed that the degree of urbanization matters for plans for expansion. In the three most urbanized areas, the startup firms had plans to expand their business both at home and abroad. In the other urbanized areas, the focus was on expansion at home.
    Keywords: startups; bank loans; asymmetric information; the corporate form of business; agglomeration; functional region
    JEL: G21 G32 L26 M13 R12 R58
    Date: 2015–06–12
  27. By: Reda Cherif; Fuad Hasanov
    Abstract: Only a few European economies and Korea and Taiwan Province of China reached high-income status during 1970-2010. Malaysia’s real income per capita increased to 26 percent of the U.S. level in 2010 from 20 percent in 1970. Despite relatively strong growth and a substantial improvement in export sophistication, Malaysia’s total factor productivity lagged behind that of Korea and Taiwan Province of China. We argue that what characterizes their experience in contrast to Malaysia’s is the creation of technologies by domestic firms and a push to leapfrog to the technological frontier at an early stage of development.
    Keywords: Industrial policy;Malaysia;Productivity;growth, middle-income trap, innovation, technology, electronics, it, at, technologies, Government Policy, General, Asia including Middle East,
    Date: 2015–06–23
  28. By: Karel Haegeman (European Commission – JRC - IPTS); Mathieu Doussineau (European Commission – JRC - IPTS); Mark Boden (European Commission – JRC - IPTS)
    Abstract: Cooperation in the EU between Member States and with Associated Countries on national public research programming has received a lot of attention in recent years, and will continue to do so under Europe 2020. This NETWATCH Policy Brief looks at the current policy context and rationales for transnational coordination of research programming, and aims to measure progress made so far in doing so. It looks both at coordination of public national research budgets and at cooperation between nations under the framework programmes, Horizon 2020 and Cohesion policy.
    Keywords: Innovation and growth(15), Research and innovation policies(502), Smart specialisation(505), research(253), innovation(244), collaboration(227)
    Date: 2015–08
  29. By: Norris, Pippa (Harvard University and University of Sydney); Garnett, Holly Ann (McGill University)
    Abstract: During recent years, U.S. states have often diverged by adopting either more lenient or stricter electoral procedures. What have been the consequences of these laws for the risks of voter suppression or voter fraud? Heated partisan debate surrounds this question. To consider new evidence, the paper studies variations in the logistical costs of registration and balloting in state laws to generate the most appropriate within-country comparison. Part I sets out the conceptual and theoretical framework. Part II describes the research design that takes advantage of a new dataset, PEI-US-2014, based on an expert survey of Perceptions of Electoral Integrity conducted in 21 U.S. states immediately after the 2014 U.S. Congressional elections. This data is combined with a new Convenience Election Laws Index (CEL) summarizing variations in the leniency of state laws for registering and voting. Multilevel (HLM) analysis is used to compare the state-level CEL index against expert evaluations of the integrity of the registration and voting process. Part III presents the results of the analysis. The conclusion in Part IV draws together the major findings and considers their implications.
    Date: 2015–07
  30. By: Ruggie, John (Harvard University); Nelson, Tamaryn (Harvard University)
    Abstract: Business and human rights became an increasingly prominent feature on the international agenda in the 1990s. Global markets widened and deepened significantly as a result of trade liberalization, privatization, deregulation, and off-shoring production as well as financial centers. The rights of multinational corporations to operate globally became legally enshrined in a vast expansion of bilateral investment treaties and investment chapters of bilateral and regional free trade agreements, as well as a new international regime protecting intellectual property. Multinational corporations did well subsequently, and so too did people and countries that were able to take advantage of the opportunities created by this transformative process.But others were less fortunate. Global social and environmental protections lagged behind, and domestic safety nets, where they existed at all, began to fray. Income inequalities began to rise. International attempts to regulate the conduct of multinational corporations, going back to the 1970s, continued to fail. Sweatshops, displaced communities, child labor, forced and bonded labor, corporate security providers raping and sometimes killing demonstrators or mere bystanders, are among the abuses that were amply documented. What requires better documentation, if these global imbalances are to be corrected, are the means by which the global and local communities have sought to redress the imbalances, and how they might be improved. This paper takes one small step in that direction. It analyzes the first and still one of the very few international mechanisms that governments have established enabling individuals, communities or their representatives to bring complaints against multinational corporations: the Guidelines for Multinational Enterprises ("Guidelines") promulgated by the Organization for Economic Cooperation and Development (OECD). Our interest in the Guidelines in this paper is two-fold. First, we want to identify patterns of use over time in order to better understand them. Second, we want to see what if any difference exists in these patterns since the endorsement by the United Nations Human Rights Council in 2011 of the Guiding Principles on Human Rights, core elements of which were incorporated into the 2011 OECD Guidelines revision. Finally, we offer some concluding thoughts about how this complaints mechanism should be strengthened.
    Date: 2015–08
  31. By: Naudé, Wim (Maastricht University); Siegel, Melissa (Maastricht University); Marchand, Katrin (Maastricht University)
    Abstract: We provide an assessment of the state of scholarly and policy debates on migrant entrepreneurs in development. They are often described as super-entrepreneurs who contribute to development through (i) being more entrepreneurial than natives; (ii) providing remittances that fund start-ups in their countries of origin and (iii) returning entrepreneurial skills to their home countries when they re-migrate. We evaluate these three views and conclude that the empirical evidence to support the notion of the migrant as a super-entrepreneur is weak. We further argue that the evidence is less ambiguous on the general development contribution of migration over and above its contribution through entrepreneurship. The implication is that removal of discriminatory barriers against migrants and against migrant entrepreneurs in labour, consumer and financial markets will promote development in both sending and receiving countries, not least through reducing the shares of migrants that are reluctant entrepreneurs.
    Keywords: migration, entrepreneurship, development, remittances
    JEL: J60 L26 O15 F22
    Date: 2015–08

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