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on Innovation |
| By: | Declan Conway; Antoine Dechezleprêtre; Nick Johnstone; Ivan HaÅ¡ÄiÄ |
| Abstract: | This paper identifies over 50 000 patents filed worldwide in various water-related technologies between 1990 and 2010, distinguishing between those related to availability (supply) and conservation (demand) technologies. Patenting activity is analysed – including inventive activity by country and technology, international diffusion of such water-related technologies, and international collaboration in technology development. Three results stand out from our analysis. First, although inventive activity in water-related technologies has been increasing over the last two decades, this growth has been disproportionately concentrated on supply-side technologies. Second, whilst 80% of water-related invention worldwide occurs in countries with low or moderate water scarcity, several countries with absolute or chronic water scarcity are relatively specialized in water efficiency technologies. Finally, although we observe a positive correlation between water scarcity and local filings of water patents, some countries with high water availability, in particular Switzerland or Norway, nevertheless appear as significant markets for water-efficiency technologies. This suggests that drivers other than local demand, like regulation and social and cultural factors, play a role in explaining the global flows of technologies. And finally, the extent to which innovation is “internationalised†shows some distinct patterns relative to those observed for innovation in technologies in general. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp196&r=all |
| By: | Mafini Dosso (European Commission – JRC - IPTS); Fernando Hervas (European Commission – JRC - IPTS); Pietro Moncada-Paternò-Castello (European Commission – JRC - IPTS) |
| Abstract: | This background note offers first a synthesis of the main research questions addressed under the three topics of the 5th European Conference on Corporate R&D and Innovation - Industrial Research and Innovation: Evidence for Policy (CONCORDi 2015). Section II positions the selected papers in the current academic literature. It focuses on the extent to which the papers address the main issues above-underlined, and on how they strengthen and challenge what we know about evidence for industrial R&D and innovation policies. Section III briefly presents the key priorities of the European innovation and industrial policy and some examples of current programs to support corporate R&D and innovation activities. Section IV raises a series of research and policy issues the Conference will address. |
| Keywords: | R&D, innovation, policy |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc97469&r=all |
| By: | Malamud, Semyon; Zucchi, Francesca |
| Abstract: | We study optimal liquidity management, innovation, and production decisions for a continuum of firms facing financing frictions and the threat of creative destruction. We show that liquidity constraints unambiguously lead firms to decrease their production rate but, surprisingly, may spur investment in innovation (R&D). Using the model, we characterize which firms substitute production for innovation when constrained and thus display a non-monotonic relation between cash reserves and R&D. We embed our single-firm dynamics in a Schumpeterian model of endogenous growth and demonstrate that financing frictions have an ambiguous effect on economic growth. |
| Keywords: | Cash management; Creative destruction; Endogenous growth; Financial constraints; Innovation |
| JEL: | D21 G31 G32 G35 L11 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10840&r=all |
| By: | Saiz, Patricio (Departamento de Análisis Económico: Teoría Económica e Historia Económica. Universidad Autónoma de Madrid) |
| Abstract: | During the last quarter of the nineteenth century, American corporations began their multinational expansion to Europe through direct investments in the most-developed economies. Being increasingly aware of scientific and technological knowledge business value, they also began to develop early IPR international protection strategies in order to defend their intangible assets abroad. Before World War II, many of these multinationals had also reached lagging peripheral countries, resulting in a complex European network of subsidiaries and affiliates that has been scarcely studied. This paper delves into the Babcock & Wilcox entrepreneurial conglomerate – one of the most interesting case studies of early multinational expansion – to analyze how it arrived and developed in Spain, what its business and innovation strategies in that market were, and the role of patent management in that process. Our findings reveal that corporate interests in patent capture, control, and administration not only shifted research and innovation handling within firms but also led to quick learning on how to successfully use IPRs as business, legal, and organizational tools for international expansion. |
| Keywords: | Babcock & Wilcox, patents, foreign investments, Spain |
| JEL: | F23 N84 O32 O33 O34 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:uam:wpapeh:201501&r=all |
| By: | Abassi, Boutheina |
| Abstract: | This paper surveys what we know about international R&D spillovers, with a particular attention devoted to the business literature that link the R&D internationalization to economic performance. Despite the fact that there is a large literature on the internationalization of R&D at the country level, there are only few studies that examine the implications of international innovation and research activities at different levels of disaggregation. The few studies that exist emphasize the significance of international R&D and R&D offshoring in promoting economic performance. However, the existing literature comes finally with different conclusion as regards the relative importance of international spillovers and, the evidences presented so far with respect to R&D offshoring are still far from being conclusive. |
| Keywords: | international R&D spillovers, R&D offshoring, economic performance |
| JEL: | F43 O32 O4 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:66986&r=all |
| By: | Chu, Angus C.; Furukawa, Yuichi; Zhu, Dongming |
| Abstract: | In this note, we explore the implications of cultural preference for education in an innovation-driven growth model that features an interaction between endogenous human capital accumulation and technological progress. Parents invest in children's education partly due to the preference for their children to be educated. We consider a preference parameter that measures the degree of this parental or cultural preference for education. We find that a higher degree of parental preference for education increases human capital, which is conducive to innovation, but the increase in education investment also crowds out resources for R&D investment. As a result, a stronger cultural preference for education has an inverted-U effect on the steady-state equilibrium growth rate. We also analytically derive the complete transitional path of the equilibrium growth rate and find that an increase in the degree of education preference has an initial negative effect on economic growth. |
| Keywords: | economic growth, human capital, education, culture |
| JEL: | E24 O31 O41 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:66883&r=all |
| By: | Juan Vera (RENAULT); Camila Freitas Salgueiredo (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris, ISIR - Institut des Systèmes Intelligents et de Robotique - UPMC - Université Pierre et Marie Curie - Paris 6 - CNRS); Sophie Hooge (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Milena Klasing Chen (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | Radical innovation is becoming essential to insure firms stay competitive. Nevertheless, R&D departments struggle to achieve systematic innovation processes. The management of an innovation field requires adapted tools to the diversity, broadness and flexibility of the generation of innovative ideas. To face this challenge, we propose the use of a set of visual tools. These allow the abstraction of three fundamental innovation field dimensions: 1) the nonlinearity of the ideation process; 2) the degree of maturity of a technology and 3) the stakeholder diversity of an ecosystem. We propose an Innovation Map, a synthetic tool grouping several visual representations that allow describing these three dimensions of an innovation field. Having all aspects simultaneously described by a tool is enriching since it makes it possible for the visual representations to complement each other. This managerial tool was applied inside Renault, in the automobile sector, for the mapping of the electric vehicle charging, a strategic field in electric mobility. We tested the tool with several internal R&D stakeholders of the innovation field having different profiles and responsibilities. They perceived the Innovation Map as a useful tool to point out and share various strategic aspects of an innovation field, as well as establishing potential partnerships. This collaborative research is a first step towards the establishment of a visual language framework that managers can apply to communicate, organize and understand an innovation field. |
| Keywords: | innovation mapping, visual tools,Innovation field |
| Date: | 2015–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01154158&r=all |
| By: | Maya Grigolia; Lasha Labadze; Pavol Minarik; Alena Zemplinerova; Marek Vokoun |
| Abstract: | This report has been prepared in the framework of the project “Transfer of know-how to small and mid-size businesses” of the International Visegrad Fund (IVF) and USAID. It summarizes the conditions of the SME sector (small and medium size enterprises) in Georgia, identifies the main problems in their development and provides recommendations for further interventions based on the Czech experience, existing literature and a survey implemented among SME stakeholders.Georgia generally receives favorable evaluations of its business environment. It ranks high in indices of economic freedom and is among the top countries with respect to ease of starting and doing business. On the other hand, the SME sector suffers from several problems. The most serious obstacle to SME development seems to be in the area of finance; access to finance is difficult for SMEs and the cost of credit is high. Human capital and innovations are among the weak points of Georgian SMEs as well.The different shortcomings of the environment and markets call for different interventions. The paper is roadmap of concrete activities – it contains a set of recommendations to support SMEs development drawn on three different sources: first, the theoretical foundations of entrepreneurship policy, second, the Czech experience and know-how in the SME sector, and finally, the ideas of local experts and stakeholders generated during interviews and workshops.Activities and recommendations have been divided into “generic,” which relate to a particular determinant of business environment and have an impact across industries and sectors such as access to financing, education, developing skills training, R&D, innovation, export strategy, start-ups, and those which are “sector-specific,” such as banking, health and agriculture. Political stability, the main problem in Georgia, is beyond the scope of possible interventions. |
| Keywords: | small businesses, competition, liberalization, innovation, venture capital, business financing, skills and education |
| JEL: | D04 F23 L26 L30 M13 O25 O00 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:sec:cnrepo:0123&r=all |
| By: | Sophie Hooge (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris); Cédric Dalmasso (CGS - Centre de Gestion Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris) |
| Abstract: | In competitive industries, intensive innovation is a recognized necessity (Wheelwright and Clark, 1992; Le Masson et al., 2010). One success factor of breakthrough R&D projects lies in the knowledge articulation between innovation definition phases, composed of fuzzy front-end (FFE) and innovative new product development (NPD) stages (Koen et al, 2002; Cooper et al, 2001), and industrial development processes. Then, central issue for innovation projects managers becomes internal R&D stakeholders’ management (Elias et al., 2002) and sustainable learning dynamics across the two parts of the organization (O’Connor, 2008). Our paper fits into this research gap for local breakthrough R&D in the dominant design. We discuss the role of technical expertise level of NDP stakeholders involved in early stages of innovative projects. The research mobilized two longitudinal studies (Yin, 1989) carried out with a global car manufacturer through collaborative management research (Radaelli et al., 2012) since 2005, one focusing on the FFE management, while the other was devoted to learning dynamics of engineering development departments. A cartography of the internal network of breakthrough R&D (Mitchell et al, 1997) underlined a stable organizational network across projects. Nevertheless, a quantitative analysis of accounting data on 8 projects highlights important dynamics of involvement or dis-engagement within the network. The analysis showed that the accounting reporting at the portfolio level used to hide to top-managers the heterogeneity and depth of resources dynamics at the project level. The impacts of local breakthrough R&D on the engineering development organization was similar to waves: some stakeholders, who played roles of experts, spokespersons or innovation design strategists, were able to involve quickly the individuals to maintain the project progress, sometime generating an over-commitment on innovation projects. At the opposite, a lack of trust of the design partners generated withdrawal of resources that needed a strong stakeholder management to be prevented. |
| Keywords: | Breakthrough R&D, Stakeholders management , Commitment |
| Date: | 2015–06–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01202541&r=all |
| By: | Ruben Gaetani (Northwestern University); Enrico Berkes (Northwestern University) |
| Abstract: | Using a newly assembled dataset of narrowly georeferenced patents, we document that innovation activity is not as concentrated in densely populated areas as commonly believed: suburban regions are responsible for a substantial share of the innovation produced. Nevertheless, high-density areas disproportionately generate innovation of unconventional nature. We provide causal evidence for a mechanism that can generate this pattern: unconventional ideas are more likely to emerge when people interact in a dense and technologically diverse environment. An endogenous growth model with heterogeneous innovation and spatial sorting reveals that optimal place-based policy in the U.S. would foster urbanization to promote unconventional ideas, at the cost of sacrificing growth and inducing higher congestion. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:896&r=all |
| By: | Daniela Di Cagno (Università LUISS "Guido Carli"); Andrea Fabrizi (Ministero dello Sviluppo Economico); Velentina Meliciani (Università di Teramo); Iris Wanzenböck (Austrian Institute of Technology) |
| Abstract: | This paper investigates the impact of “relational” spillovers arising from participation in European research networks on knowledge creation across European regions. We use links in EU Framework Programmes (from the Fourth to the Seventh) to weight foreign R&D in order to construct a relational distance matrix across 257 European regions over the period 1995-2010. We, then, assess the impact of relational spillovers on regional patent applications controlling also for local spatial spillovers. We find that relational spillovers matter for knowledge creation although spatial contiguity remains a crucial factor. We also find that spillovers are higher when regions with different levels of R&D participate in European networks. . |
| Keywords: | Relational spillovers, R&D collaboration, knowledge, EU Framework Programmes, spatial correlation, patents. |
| JEL: | O31 R12 C23 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lui:lleewp:15116&r=all |
| By: | Ferreira Sequeda M.T.; Grip A. de; Velden R.K.W. van der (ROA) |
| Abstract: | Several studies have shown that employees with temporary contracts have a lowertraining participation than those who have a contract of indefinite duration. Thereis however no empirical literature on the difference in informal learning on-the-jobbetween permanent and temporary workers. In this paper, we analyse this difference across twenty OECD countries using unique data from the recent PIAAC survey. Using an instrumented control function model with endogenous switching, we find that workers in temporary jobs engage in informal learning more intensively than their counterparts in permanent employment, although the former are, indeed, less likely to participate in formal training activities. In addition, we find evidence for complementarity between training and informal learning for both temporary and permanent employees. Our findings then suggest that temporary employment need not be dead-end jobs. Instead, temporary jobs with high learning content could be a stepping stone towards permanent employment. However, our results also suggest that labour market segmentation in OECD countries actually occurs within temporary employment due to the distinction between jobs with low and high learning opportunities. |
| Keywords: | Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Human Capital; Skills; Occupational Choice; Labor Productivity; Labor Contracts; |
| JEL: | E24 J24 J41 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umaror:2015008&r=all |
| 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 the 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 |
| Date: | 2015–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2015/25&r=all |
| By: | Roberta De Santis (ISTAT); Cecilia Jona Lasinio (ISTAT) |
| Abstract: | In a globalized framework, environmental regulations can have a decisive role in influencing countries’ comparative advantages. The conventional perception about environmental protection is that it imposes additional costs on firms, which may reduce their global competitiveness with negative effects on growth and employment. However, some economists, in particular Porter and Van der Linde (1995), argue that pollution is often associated with a waste of resources and that more stringent environmental policies can stimulate innovations that may over-compensate for the costs of complying with these policies. This is known as the Porter hypothesis and suggests the existence of a “double dividend”, for both economic and environmental aspects, related to environmental regulation. In this paper, we adopt a macroeconomic approach to investigate the impact of different environmental instruments on the economy as a whole. We investigate the environmental policy impacts on a sample of European economies in 1995-2008. Our findings suggest that the “narrow” Porter Hypothesis cannot be rejected and that the choice of the policy instruments is not neutral. In particular, market based environmental stringency measures look as the most effective to stimulate innovations and productivity. |
| Keywords: | environmental regulation, productivity, innovation, Porter hypothesis. |
| JEL: | D24 Q50 Q55 O47 O31 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lui:lleewp:15122&r=all |
| By: | Adam P. Balcerzak (Nicolaus Copernicus University, Poland); Michal Bernard Pietrzak (Nicolaus Copernicus University, Poland) |
| Abstract: | The improvement of quality of life of people is currently considered as the main responsibility of every government. Due to the emergence of knowledge-based economy, it is commonly believed that investments in research and development (R&D) at a given level are the necessary condition to create growth based on innovations, thus support welfare in case of developed countries. In this context the article is devoted to the analysis of influence of R&D expenditures on quality of life in case of European Union countries. As the main measure of quality of life Human Development Index was utilized. Thus, the article can be considered as an input to the discussion on the potential of HDI index for measuring the quality of live in case of narrow group of relatively developed countries. In the empirical part of the paper, panel data mythology fulfilling the postulates of dynamic estimation was used. The research was done for EU countries for the period 2004-2010. The empirical part takes into consideration the structural diversity between “old” and “new” members of the EU. First of all, the results can be treated as a voice confirming the usefulness of HDI as a measure of quality of life also from the perspective of narrow group of highly developed countries. Then, the research confirms the positive influence of R&D on European welfare only in the case of highly developed “old member”. |
| Keywords: | European Union, HDI, research and development expenditures, dynamic panel model |
| JEL: | I3 I31 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:pes:wpaper:2015:no161&r=all |
| By: | Iris Wanzenböck (Innovation Systems Department, Austrian Institute of Technology); Philipp Piribauer (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | In this paper we estimate space-time impacts of the embeddedness in R&D networks on regional knowledge production by means of a dynamic spatial panel data model with non-linear effects for a set of 229 European NUTS-2 regions in the period 1999-2009. Embeddedness refers to the positioning in networks where nodes represent regions that are linked by joint R&D endeavours in European Framework Programmes. We observe positive immediate impacts on regional knowledge production arising from increased embeddedness in EU funded R&D networks, in particular for regions with lower own knowledge endowments. However, long-term impacts of R&D network embeddedness are comparatively small. |
| Keywords: | R&D networks, European Framework Programme, regional knowledge production, dynamic spatial panel data model, space-time impacts |
| JEL: | C33 O31 R12 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp207&r=all |
| By: | Tobias Scholl; Antonios Garas; Frank Schweitzer |
| Abstract: | We study the role of geography in R&D networks by means of a quantitative, micro-geographic approach. Using a large database that covers international R&D collaborations from 1984 to 2009, we localize each actor precisely in space through its latitude and longitude. This allows us to analyze the R&D network at all geographic scales simultaneously. Our empirical results show that despite the high importance of the city level, transnational R&D collaborations at large distances are much more frequent than expected from similar networks. This provides evidence for the ambiguity of distance in economic cooperation which is also suggested by the existing literature. In addition we test whether the hypothesis of local buzz and global pipelines applies to the observed R&D network by calculating well-defined metrics from network theory. |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1509.08291&r=all |
| By: | Germà Bel (Faculty of Economics, University of Barcelona); Stephan Joseph (Faculty of Economics, University of Barcelona) |
| Abstract: | We examine the number of patent applications for climate change mitigation technologies (CCMT) filed at the European Patent Office and seek to relate it to the oversupply of emission allowances under the European Union Emission Trading System (EU ETS). We use a panel count data approach to show that firms covered by the policy take the oversupply into account when determining their level of innovative activity. We also indirectly demonstrate that the “weak” version of the Porter hypothesis holds for the EU ETS, given the sizable oversupply of allowances in the market. Our results suggest that in order to set the European economy firmly on the low-carbon technology pathway, and to ensure that the ambitious EU climate targets are met, serious policy changes must be undertaken. |
| Keywords: | Environmental Policy; Emission Trading System; Certificate Oversupply; Technological Change; Patent Count Data JEL classification: Q55; Q58; O33; O38 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201520&r=all |
| By: | King Yoong Lim |
| Abstract: | This paper examines industrial transformation using an imitation-innovation growth model with a stylised internalisation framework developed to determine the composition of heterogeneous foreign multinationals in a developing host economy. A key feature of the model is the introduction of a dichotomous relationship between domestic and foreign ?firms, where the latter, each of which consisting of an expert bringing either standardisation or sophisticated know-how, perceives heterogeneity among the productivity of domestic workers. Productivity is a transformation of ability, hence linking the skills acquisition decision and foreign subsidiaries? operational mode choice along the same ability distribution. Calibrated for Malaysia, the simulations uncover complementarities between labour market and FDI-promoting policies. These complementarities are stronger in an environment with endogenous technological change. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:man:cgbcrp:213&r=all |
| By: | Nicolas Petrosky-Nadeau (Carnegie Mellon University) |
| Abstract: | We develop a two-sector search-matching model of the labor market with imperfect mobility of work- ers, augmented to incorporate a housing market and a frictional goods market. Homeowners use home equity as collateral to finance idiosyncratic consumption opportunities. A financial innovation that raises the acceptability of homes as collateral raises house prices and reduces unemployment. It also triggers a reallocation of workers, with the direction of the change depending on firms' market power in the goods market. A calibrated version of the model under adaptive learning can account for house prices, sectoral labor flows, and unemployment rate changes over 1996-2010. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:892&r=all |
| By: | Francesca Lotti (Bank of Italy (Italy)); Giovanni Marin (IRCrES-CNR, Milano (Italy); SEEDS, Ferrara, Italy) |
| Abstract: | We investigate the productivity effects of eco-innovations at the firm level using a modified version of the CDM model (Crepon et al., 1998). The peculiar nature of environmental innovations, especially as regards the need of government intervention to create market opportunities, is likely to affect the way they are pursued and their effect on productivity. |
| Keywords: | R&D, innovation, productivity, patents, eco-patents. |
| JEL: | L60 Q55 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:1715&r=all |
| By: | Tatiana A. Meshkova (National Research University Higher School of Economics); Evgenii IA. Moiseichev (National Research University Higher School of Economics) |
| Abstract: | The objective of this paper is to analyse the scope for improving empirical and methodological foundation of global value chains (GVCs) research and for making relevant political decisions, primarily through application of foresight methodology based on the latest trend to combine the approaches of global value chain and national innovation systems research. The authors choose Russia as an illustrative case of an economy in the changing geopolitical context to review major trends of global value chains’ development, specific features of Russia’s participation in them, and the necessary steps to increase the quality and efficiency of this participation. Special attention was paid to theoretical, methodological, and empirical tools of GVC research and of making relevant political decisions – which presently are far from being adequate: they need to be supplemented with the new ones to improve the forecasting potential, and practical and strategic orientation of the GVC approach. To this end, approaches which would make it possible to research interconnection between global processes and trends with regional and national innovation-based development tendencies become of crucial importance. Application of foresight methodology may significantly contribute to researching the GVC phenomenon, being a major logical step towards creating advanced policy tools to mobilise available resources and coordinate stakeholders’ actions to increase Russia’s global competitiveness. The paper presents a number of case studies which describe practical application of various foresight methodology components to analyse Russian participation in various GVCs, by the examples of specific product and service groups (fresh fruit and vegetables, car parts, mobile phones, air transport, electronic payment systems). The authors conclude that both full-scale foresight studies and specific components thereof could be applied for the purposes of GVC analysis, strategic planning and making political decisions |
| Keywords: | global value-added chains (GVCs); trade; competition; globalisation; innovation; foresight |
| JEL: | O14 O25 O31 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:47sti2015&r=all |
| By: | Michael A. Klein (Indiana University) |
| Abstract: | This paper theoretically and empirically analyzes the interaction of intellectual property policy among developing countries. I extend existing North-South product cycle models where innovation, foreign direct investment (FDI), and imitation are endogenous to include multiple Southern countries, which together constitute a developing region. I assume that a Northern firm that has invested in a Southern country faces the threat of imitation from all Southern countries within the region. In this way, the level of FDI in each Southern country depends upon the protection of intellectual property throughout the region. The model predicts that a unilateral strengthening of intellectual property rights (IPRs) in a Southern country is relatively ineffective at attracting FDI inflows. However, a uniform strengthening of IPRs throughout the developing region, such as the TRIPS agreement required, successfully stimulates FDI into all countries in the region. Using panel data ! from 47 developing countries from 1970-2010, I test the predictions of the model empirically. I provide evidence that the response of FDI to strengthened IPRs in a particular developing country depends upon the level of protection in neighboring developing countries. I argue that this analysis suggests a powerful justification of the TRIPS agreement as a harmonization of IPRs among developing countries, which successfully stimulates FDI inflows into developing countries in a way that a unilateral policy reform could not. |
| Keywords: | Intellectual Property Rights, Foreign Direct Investment, Developing Countries, TRIPS |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2015018&r=all |
| By: | Lars Hornuf; Armin Schwienbacher |
| Abstract: | We use hand-collected data from four German crowdinvesting portals to analyze what determines individual investment decisions in crowdinvesting. In contrast with the crowdfunding campaigns on Kickstarter where the typical pattern of project support is U-shaped, we find crowdinvesting dynamics to be L-shaped under a first-come, first-serve mechanism and only U-shaped under a sealed-bid second-price auction. The evidence further shows that investors base their decisions on information provided by the entrepreneur in form of updates during the campaign and by the investment behavior and comments of other crowd investors. We also find evidence for herding behavior. As legislators around the world increasingly regulate crowdinvesting activities, knowing how crowd investors behave under no formal information disclosure provides important insights for issuers, portals, and lawmakers. |
| Keywords: | crowdinvesting, startups, securities issuance, IPO investment dynamics, entrepreneurial finance |
| JEL: | G11 G20 K22 M13 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:trr:wpaper:201509&r=all |
| By: | Luca Fornaro (CREI); Gianluca Benigno (London School of Economics) |
| Abstract: | We provide a Keynesian growth theory in which pessimistic expectations can lead to permanent, or very persistent, slumps characterized by unemployment and weak growth. We refer to these episodes as stagnation traps, because they consist in the joint occurrence of a liquidity and a growth trap. In a stagnation trap, the central bank is unable to restore full employment because weak growth pushes the interest rate against the zero lower bound, while growth is weak because low aggregate demand results in low profits, limiting firms' investment in innovation. Policies aiming at restoring growth can successfully lead the economy out of a stagnation trap, thus rationalizing the notion of job creating growth. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:810&r=all |
| By: | Braunerhjelm, Pontus (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology (KTH), & Swedish Entrepreneurship Forum); Ding, Ding (Centre of Excellence for Science and Innovation Studies (CESIS), & Royal Institute of Technology (KTH)); Thulin, Per (Centre of Excellence for Science and Innovation Studies (CESIS), Royal Institute of Technology (KTH), & Swedish Entrepreneurship Forum) |
| Abstract: | According to the knowledge-based spillover theory of entrepreneurship (KSTE), entrepreneurship is positively associated with the knowledge endowment level. An increase in knowledge expands the opportunity set, which is then exploited by heterogeneous entrepreneurs. The objective of this paper is to empirically test the validity of the KSTE by employing a detailed database comprising more than 19 million observations for the period 2001–2008 at the level of individuals, firms and regions in Sweden. Knowledge is claimed to be partly embodied in labour, implying that an increase in labour mobility can be expected to influence knowledge endowment at the regional level. Our dependent variable is an individual who has remained in a region throughout the time period considered. Controlling for a number of other variables, inter-regional labour inflows and intra-regional mobility levels are shown to exert a strong positive effect on entrepreneurship. This contrasts with inter-regional outflows, which negatively affect entrepreneurial entry. Another noteworthy result is that the probability of exploiting an increased knowledge stock through entrepreneurship increases by 15 percentage points if the individual has previous experience in starting a firm. |
| Keywords: | Entrepreneurship; Knowledge-based spillover theory of entrepreneurship; Knowledge diffusion; Labour mobility |
| JEL: | J61 L26 O33 |
| Date: | 2015–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0422&r=all |
| By: | Britta Boyd (Department of Border Region Studies, University of Southern Denmark); Simon Fietze (Department of Border Region Studies, University of Southern Denmark); Kristian Philipsen (Department of Entrepreneurship and Relationship Management, University of Southern Denmark) |
| Abstract: | The research field of entrepreneurship gets more and more important in Denmark. The Global Entrepreneurship Monitor (GEM) and recently the Global University Entrepreneurial Spirit Students’ Survey (GUESSS) were carried out to gain more insights about entrepreneurial intentions and activities in Denmark. The origins of GUESSS go back to 2003 when researchers at the Swiss Research Institute of Small Business and Entrepreneurship at the University of St. Gallen (KMU-HSG) started the survey. The study is conducted every two years to explore the entrepreneurial intent and activity of students as well as the entrepreneurship training and education provided by universities in 34 countries around the world. In the sixth data collection wave Demark participated for the first time in 2013. The results for the Danish sample are presented in this report. The main findings are that Danish students have a rather low entrepreneurial intention. Their career intentions seem to follow the international pattern of first being an employee and then later becoming a founder. The report suggest to improve entrepreneurial intention among Danish students by stimulating entrepreneurial education at universities considering specific offers and activities for the different groups of entrepreneurial students as well as for students who not have considered becoming a founder yet. |
| Keywords: | entrepreneurial intention, succession intention, GUESSS, Denmark |
| JEL: | I21 I23 I28 L26 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:sdn:wpaper:9&r=all |
| By: | Ellen McGrattan (University of Minnesota) |
| Abstract: | Firms make large investments in intangible capital, which drive innovative activities and market values. These investments impact productivity but are difficult to measure and thus mislead researchers who restrict attention to only those assets in the BEA fixed asset tables. For example, in previous work with Ed Prescott ("Labor Productivity Puzzle"), we showed that measured productivity will be overstated in recessionary periods when there are large declines in intangible investments because measured GDP does not fall by as much as total output. This is important because the rise in productivity during 2008--2009 has led many economists to the natural conclusion that financial disruptions---not changes in firm productivity---are the primary cause of the large fluctuations in real activity. While our previous work has shown that there is no logical inconsistency with aggregate observations on GDP, hours, and labor productivity, my current work considers both the macro and micro data, extending theory to include both intangible investments (as in McGrattan and Prescott) and sectoral input-output linkages (as in earlier work by Long and Plosser, 1983). There is microevidence showing that intangible investments are large, especially for the high-technology industries that have important input-output linkages with other industries. They are also large for U.S. multinationals, implying both domestic and foreign linkages. The primary goal is to assess the theoretical predictions for post-war business cycles and ask, how much of the variation in GDP, investment, and hours can plausibly be attributed to changes in firm-level and industry-wide TFPs? This work will also be useful in a second project that extends the analysis of Holmes, McGrattan, and Prescott ("Quid Pro Quo: Technology capital transfer for market access in China," forthcoming ReStud) who study the impact of quid pro quo policies governing foreign direct investment (FDI) into China in a multicountry model with technology capital (e.g., nonrival intangible capital). The model has an aggregate technology with a single consumption good and thus no scope for "wool for wine" trade. As a conceptual matter, it is straightforward to generalize the model to include multiple industries, generating trade in consumption goods based on comparative advantage. Such an extension would allow for industry-specific intangible capital and for technology and policy parameters to vary across industries. The goal here is to study regulation of FDI---which varies by industry---and its impact on global innovation and capital flows. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:871&r=all |
| By: | K. Bruns; N.S. Bosma; M.W.J.L. Sanders; M.C. Schramm |
| Abstract: | In this paper we present an alternative empirical strategy that sheds light on the importance of institutional quality for regional economic growth. The fundamental problem in this type of research is that institutional quality cannot be measured directly. Existing proxies are typically highly correlated with and endogenous to our dependent variable. We therefore propose a method that is akin to growth accounting, where we refer to the unexplained residual of a production function as total factor productivity. First we run a standard growth regression, including the usual suspects, on 90 European NUTS-2 and 3 regions. The residual variation in regional growth then includes the effect of the fundamentally latent variable that is institutional quality. If this is the case, then variables for which we may assume the effect on growth is strongly moderated through institutional quality, should have a different marginal effect on residual growth at the aggregation levels at which institutions operate. Theory and preliminary empirical evidence suggests that the effect of entrepreneurial activity is strongly moderated by institutional quality. We can thus test the hypothesis that the marginal effect of entrepreneurship on growth differs across regions and countries in our data. We indeed establish that entrepreneurial activity has a positive effect on growth. That is, entrepreneurial activity helps explain the residual variance in our standard growth regressions. However, this effect is not significant when we control for unobserved country differences in a multilevel analysis. We find that most of the cross regional variation is due to between country variation in average entrepreneurial activity, and that there is no longer an effect at the within-country regional level. In a latent class analysis, however, we do not find statistically significant differences in the coefficient across (groups of) regions after controlling for country effects. That is, our data suggests that country level institutional quality is most important for the effect of entrepreneurial activity on growth. After controlling for those differences, regions do not cluster in different classes. This also suggests that the difference between for example rural and urban regions in our sample is not significant, as such regions do not cluster in different groups. Before we draw strong conclusions, however, we note that this may be due to the administrative nature of our regional classification. |
| Keywords: | Institutions, Entrepreneurship, Regional Growth, Multilevel Model, Latent Class Model |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1502&r=all |
| By: | F.C. Stam |
| Abstract: | Regional policies for entrepreneurship are currently going through a transition from increasing the quantity of entrepreneurship to the quality of entrepreneurship. The next step will be the transition from entrepreneurship policy towards policy for an entrepreneurial economy. The entrepreneurial ecosystem approach has been heralded as a new framework accommodating these transitions. This approach starts with the entrepreneurial actor, but emphasizes the context of productive entrepreneurship. Entrepreneurship is not only the output of the system, entrepreneurs are important players themselves in creating the ecosystem and keeping it healthy. This research briefing reviews the entrepreneurial ecosystem literature, its shortcomings, and provides a novel synthesis. The entrepreneurial ecosystem approach speaks directly to practitioners, but its causal depth and evidence base is rather limited. This article provides a novel synthesis including a causal scheme of how the framework and systemic conditions of the ecosystem lead to particular entrepreneurial activities as output of the ecosystem and new value creation as outcome of the ecosystem. In addition it provides a framework for analyzing the interactions between the elements within the ecosystem. This offers a much more rigorous and relevant starting point for subsequent studies into entrepreneurial ecosystems and the regional policy implications of these. |
| Keywords: | Entrepreneurial ecosystems, entrepreneurship, regional policy, economic policy |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:use:tkiwps:1507&r=all |
| By: | Brian Warrington (Independent Expert) |
| Abstract: | In the frame of the Stairway to Excellence project, complex country analysis was performed for the EU MS that joined the EU since 2004, with the objective to assess and corroborate all the qualitative and quantitative data in drawing national/regional FP7 participation patterns, understand the push–pull factors for FP7/H2020 participation and the factors affecting the capacity to absorb cohesion policy funds. This report articulates analysis on selected aspects and country-tailored policy suggestions aiming to tackle the weaknesses identified in the analysis. The report complements the complex qualitative/ quantitative analysis performed by the IPTS/KfG/S2E team. In order to avoid duplication and cover all the elements required for a sound analysis, the report builds on analytical framework developed by IPTS. |
| Keywords: | Research and Innovation, EU Framework Programme for Research and Innovation, Horizon 2020, Cohesion policy, Structural Funds, SF, ERDF, European Regional Development Fund, European Structural & Investment Funds, ESIF, quality of governance, evaluation and monitoring mechanisms. |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc97415&r=all |
| By: | Yousef Daoud; Ruba Shanti; Sana Kamal; Shaker Sarsour |
| Abstract: | This paper analyzes the inter-relationships between entrepreneurial propensity, fear of failure (fof), and gender using the Global Entrepreneurship Monitor (GEM) Adult Population Survey (APS) data for 2009, 2010, and 2012 for a number of countries. The results show that the fear of failure, higher among women, negatively affects entrepreneurial status while the skill perception does the opposite. It is also found that gender increases the probability of fear of failure, although this result is not stable over time. Using the Conditional Mixed Process (CMP) specification, we find that gender and fof both reduce the predicted probability of entrepreneurship consistently over time. The only variable that consistently predicts fof and is significant is skill perception; its impact is negative. Policy implications of this research point to the importance of reducing the gender gap in entrepreneurship. Particularly, in order to encourage more females to be entrepreneurs, there is a need to improve their skill perception. This will reduce fof and increase entrepreneurial propensity. This could be achieved by many tools such as through networking and media coverage of success stories, etc. |
| Keywords: | Entrepreneurship, Gender, Risk Tolerance, Palestine |
| JEL: | L26 J16 D81 O53 O57 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:pmmacr:2015-11&r=all |
| By: | Šárka Zapletalová (Department of Business Economics and Management, School of Business Administration, Silesian University) |
| Abstract: | Internationalization of entrepreneurial activities is not only a matter of large enterprises. Currently, the majority of SMEs is undergoing the process of internationalization. The purpose of this paper is to compare the internationalization process of Czech large enterprises and SMEs. The companies included in the study are those that have already undertaken internationalization activities and are incorporated in the Czech Republic. The findings of the comparison show that the company size affects only the speed of internationalization of Czech companies. The choice of geographical coverage and entry mode is not affected by company size. |
| Keywords: | Internationalization process, large enterprises, small and medium-sized enterprise (SME), Czech companies, entry modes, geographical sub-regions. |
| JEL: | F23 M16 |
| Date: | 2015–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:opa:wpaper:0018&r=all |
| By: | Kirsi Hyytinen (VTT Information technology - Technical Research Centre of Finland); Sampsa Ruutu (VTT Information technology - Technical Research Centre of Finland); Mika Nieminen (VTT Information technology - Technical Research Centre of Finland); Faïz Gallouj (CLERSE - CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies); Marja Toivonen (VTT Information technology - Technical Research Centre of Finland) |
| Abstract: | The purpose of this paper is to study the challenge of evaluation in the context of systemic innovations in which services are a core element. The paper argues that the traditional evaluation methods and measures are not able to capture neither the diversity of innovations in services and systems nor the multifaceted dimensions of performance resulting from these innovations. In order to contribute to a more purposeful evaluation practices and methods, a new combinatory approach is suggested based on multi-criteria and system dynamic perspectives. This approach is illustrated in the context of environmental services, using an environmental data platform as a case example. |
| Keywords: | environmental data platform, system dynamic, service innovation, systemic innovation, environmental services,multi-criteria evaluation |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01203646&r=all |
| By: | Ernesto M. Pernia (School of Economics, University of the Philippines Diliman); Maria Janela M. Generoso (School of Economics, University of the Philippines Diliman) |
| Abstract: | Time was when solar energy was facilely dismissed as impractical, inefficient, and pricey. In recent years, however, innovations in technology, regulation, and financing have resulted in remarkable efficiency improvements and price reductions, thereby reversing the skepticism about this renewable energy (RE) source. In this paper, we explore how this has happened, to what extent photovoltaic solar technology has been accepted around the world, and what might be its potential for inclusive green growth. We find that adoption of both on-grid and off-grid solar systems has been widespread and rapidly increasing. Particularly noteworthy is the utilization of small- scale individual or distributed off-grid solar home systems (SHS) in remote and underserved areas in the developing world, including East Africa and South Asia. It appears that the Philippines has been a relative latecomer. Data show that solar power's "installed" capacity remains a tiny fraction of all RE sources (that also include hydro, geothermal, wind, biomass, and ocean). Moreover, such capacity is for ongrid only; there seems none as yet installed for off-grid SHS. We conclude with the paper's main points and possible implications for policy and research. |
| Keywords: | Renewable energy, Inclusive green growth, Rural electrification, Economic development |
| JEL: | O10 O14 Q20 Q28 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:201508&r=all |
| By: | Bilal Bourkha (IAE Lille - Institut d'Administration des Entreprises - Lille - Université Lille 1 - Sciences et technologies, LEM - Lille - Economie et Management - Université Lille 1 - Sciences et technologies - Fédération Universitaire et Polytechnique de Lille - CNRS); Adam Dewitte (IAE Lille - Institut d'Administration des Entreprises - Lille - Université Lille 1 - Sciences et technologies, LEM - Lille - Economie et Management - Université Lille 1 - Sciences et technologies - Fédération Universitaire et Polytechnique de Lille - CNRS); Jeremy Tantely Ranjatoelina (IAE Lille - Institut d'Administration des Entreprises - Lille - Université Lille 1 - Sciences et technologies, LEM - Lille - Economie et Management - Université Lille 1 - Sciences et technologies - Fédération Universitaire et Polytechnique de Lille - CNRS) |
| Abstract: | The present research focuses on the imitation of business model (BM) in order to understand how firms organize themselves for imitating an innovative business model. Four organizing ways of BM imitation are identified. Results contribute to seat the BM as a central object for studying firms’ imitation strategies. Besides, the stemming operationalizations resolve the issues of business models coexistence and separation that imitating firms have to answer. Finally, we suggest a reflection upon the determiners that shape imitators’ choices. From a more practical side, this research offers leads to decision-makers for empirically organizing imitation strategies. Doing so, we clarify operational situations for which the imitated BM should be separated from the rest of the firm. Finally, we hope that the present article contributes to straighten out the negative perception that some practitioners and scholars still might have regarding the concept of imitation. |
| Abstract: | Cette recherche se focalise sur l’imitation en matière de Business Model (BM) afin de comprendre comment les entreprises s’organisent pour imiter un BM innovant. Quatre organisations de l’imitation d’un BM par les entreprises sont identifiées. Les résultats contribuent à placer le BM comme un objet d’étude central dans la littérature sur l’imitation. Par ailleurs, les opérationalisations présentées résolvent les problématiques de coexistence et de séparation des BM auxquelles doivent répondre les entreprises qui imitent. Le travail mené propose enfin une réflexion sur les déterminants des choix des imitateurs. D’un point de vue pratique, cette recherche offre aux décideurs poursuivant des stratégies d’imitation des pistes pour s’organiser. Ce faisant, nous clarifions les situations opérationnelles pour lesquelles il convient de séparer ou non le BM imité du reste de l’entreprise. Enfin, nous espérons que l’article participe à redresser la perception négative de l’imitation que peuvent encore avoir certains praticiens et chercheurs en sciences de gestion. |
| Keywords: | imitation strategy, strategy implementation,business model, business model innovation, business model imitation,business model innovant, imitation concurrentielle, organisation de l’imitation, mise en œuvre de la stratégie |
| Date: | 2015–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01202625&r=all |
| By: | Maria Luisa Jaramillo Gomez (Universidad de La Sabana) |
| Abstract: | Financial inclusion has become a crucially important factor in debates on economic inequality posing challenges to the financial systems of countries around the world. Nowadays governments and banks are concerned about creating products that allow access to wide sectors of the population. The creation of banking products by the financial sector for people with low incomes tends to lead to improvements in the quality of life of vulnerable parts of the population. In countries with notable social and economic inequalities financial inclusion is a key aspect for equitable economic growth. This study is based on the case of Colombia, which is a country with a strong record of economic growth over the past decade. Nevertheless, corruption, unemployment, and poverty contribute to uncertainty regarding the country’s future growth prospects. This study wants to explain the situation of financial exclusion and financial inclusion with respect to the Colombian case. Financial inclusion is going to be studied from the perspective of social innovation. |
| Keywords: | Colombia, financial exclusion, financial inclusion, social innovation. |
| JEL: | A10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:ibmpro:3104801&r=all |