|
on Innovation |
| By: | SHIMBO Tomoyuki; NAGAOKA Sadao; TSUKADA Naotoshi |
| Abstract: | This paper examines empirically how patent pools affect the research and development (R&D) for a next-generation standard and for improving and exploiting the current standard, based on panel data from the optical disk industry. Our analysis explicitly recognizes the inter-generational competition among standards and the timing difference between the standard agreement and the pool formation for the standard. The major findings are as follows. Both the agreement for the current standard (DVD) and the formation of the pools were followed by more R&D by the pool licensors for a next-generation standard (BD and HDDVD), relative to the nonparticipants of the pools. Furthermore, the formation of the pools was followed by intensified R&D efforts by the pool licensors for improving and exploiting the current standard. Thus, there is no evidence for negative effects of the pools on the innovations by the pool licensors. The R&D of the pool licensees for the next-generation standard also increased with some lag after the pool, suggesting the positive effect of open pool licensing for their learning and innovations toward the next-generation technology. Lower response of the 6C licensors, relative to that of the 3C licensors, may reflect the former's larger sunk cost in the DVD technology. After the formation of the pools, the patenting propensity by the licensors increased with deteriorating patent quality, and such tendency is larger for the 6C patent pool, presumably reflecting their royalty distribution policy based on simple patent counts. |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15132&r=ino |
| By: | Sasan Bakhtiari (Australian National University); Antonio Minniti (University of Bologna); Alireza Naghavi (University of Bologna and Centro Studi Luca d'Agliano) |
| Abstract: | This research sheds light on the role of multinational production on the type of innovation per-formed by firms. We construct matched firm-patent data to measure the scope of innovation, that is the extent to which the output of R&D can be spread across different product lines. We focus on two features of multinational production: (i)core knowledge is geographically more difficult to transfer abroad to foreign production sites, (ii) learning spillovers can occur from international op-erations. The results reveal that the second effect is more likely to dominate when a firm is active in more product lines. We argue that a more diversified portfolio of products increases a firm’s span of learning from international operations, thereby enhancing its ability to engage in more fundamental research. In contrast, firms with fewer product lines that geographically separate production from innovation focus on more specialized types of R&D. |
| Keywords: | Multinational production, Fundamental innovation, Multiproduct firms, Knowledge spillovers |
| JEL: | F12 F23 O31 O32 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:378&r=ino |
| By: | Christopher F Baum (Boston College; DIW Berlin); Hans Lööf (Royal Institute of Technology, Stockholm); Pardis Nabavi (Royal Institute of Technology, Stockholm) |
| Abstract: | This paper examines variations in productivity growth due to innovation within a given location and between different locations. Implementing a dynamic panel data approach on Swedish micro data, we test the sepa- rate and complementary effects of internal innovation efforts and spillovers from the local milieu. Measuring the potential knowledge spillover by ac- cess to knowledgeintensive services, the estimation results produce strong evidence of differences in the capacity to benefit from external knowledge among persistent innovators, temporary innovators and non-innovators. The results are consistent regardless of whether innovation efforts are measured in terms of the frequency of patent applications or the rate of R&D investment. |
| Keywords: | Innovation, spillovers, TFP growth, panel data |
| JEL: | C23 O31 O32 |
| Date: | 2015–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:885&r=ino |
| By: | Thomas Bolli (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Ursula Renold (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland) |
| Abstract: | This paper uses panel data of Swiss firms to analyze the impact of education-level diversity in the workforce on innovation performance, addressing endogeneity by exploiting within-firm variation as well as variation in labor supply across regions. We find that vertical educational diversity increases the extensive margin of R&D and product innovation, particularly new product innovation. However, the relationship with process innovation, R&D intensity, and product innovation intensity is insignificant or even negative. These results are in line with the idea that vertical educational diversity enhances the creative moment of the invention phase, while it might affect the commercialization phase negatively due to the dominance of coordination and communication costs relative to the gains in creativity. |
| Keywords: | Vertical educational diversity, innovation performance, R&D, product innovation, process innovation |
| JEL: | O3 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:kof:wpskof:15-395&r=ino |
| By: | Emiko Inoue |
| Abstract: | Innovation is now expected to play an important role to overcome difficult issues of climate change more than ever. To examine how to induce innovation, the relationship between environmental policy and innovation has been focused on. Still few researches, however, have examined the impact of the EU emission trading scheme on innovation based on econometric analysis. This study scrutinises how corporate responses towards the EU ETS influence R&D investments of EU major corporations. Using firm-level panel data, which is constructed based on the data of corporate responses to the Carbon Disclosure Project, EU Industrial R&D Investment Scoreboard, and corporationsf CSR reports, I estimate two dynamic panel models using system GMM estimator. Endogeneity issue is addressed in these models. The results show that corporations which have a policy or a strategy to comply with the EU ETS or to react proactively before being regulated by the EU ETS are more likely to encourage R&D investment. The process of reacting towards the EU ETS may provide an opportunity for corporations to recognise the importance of R&D investment for their future strategy. |
| Keywords: | Climate change; EU ETS; R&D investment |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:kue:epaper:e-15-008&r=ino |
| By: | Brüggemann, Julia |
| Abstract: | The effects of public subsidies in supporting private innovative activity is subject to longstanding political and scientific debates. Since the empirical findings remain largely inconclusive, this study adds to this debate with counterfactual evidence from a laboratory experiment. In a creative real effort task simulating the innovation process, two distinct means of allocating subsidies are compared to a benchmark treatment without subsidies to identify their effects in fostering innovativeness. Furthermore, subjects' cooperative behavior in relation to subsidies is investigated. Overall, subsidies lead to a substantial crowding-out of private investment. While the individual revenues increase due to the subsidy, the innovative activity fails to increase and less sophisticated innovations are realized. Consequently, subsidies have no positive and even negative effects on overall welfare, depending on the subsidy specifics. However, subsidies do not influence cooperative behavior. These findings imply that the additional costs of subsidies for innovations might not be warranted by gains from additional innovations and increased welfare. |
| Keywords: | creativity,innovation policy,laboratory experiment,real effort task,subsidies |
| JEL: | C91 H25 O31 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:266&r=ino |
| By: | Demeulemeester, Sarah; Hottenrott, Hanna |
| Abstract: | Financing research and development (R&D) through loans is usually a costly endeavor. Information asymmetry, outcome uncertainty and low collateral value tend to increase the cost of debt. Based on a large panel of heterogeneous firms, this study shows that recipients of public R&D grants, on average, face lower costs of debt. The findings also suggest that a process of certification in which the subsidy signals the quality of the firm's R&D to external lenders rather than a 'resource effect', i.e. the direct liquidity impact of the subsidy, explains this observation. The comparison between young and established firms shows that the certification effect for young firms primarily stems from subsidies for basic research, that is, for the stage of R&D in which outcome uncertainty and information asymmetries are typically larger. In addition, young firms seem to benefit from a 'formation effect' through learning from the subsidy application process. Application experience may improve young firms' R&D project plans in a way that reduces information asymmetries between firms and lenders. |
| Keywords: | Innovation policy,Research & Development,R&D subsidies,cost of debt,financial constraints |
| JEL: | O31 O38 G30 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:201&r=ino |
| By: | Tim Buyse; Freddy Heylen; Ruben Schoonackers (-) |
| Abstract: | This paper studies the drivers of business funded and performed R&D in a panel of 14 OECD countries since 1981. More specifically, we investigate the e ects of public R&D related policies and wage formation. Following Pesaran (Econometrica, 2006) and Kapetanios et al. (Journal of Econometrics, 2011), our empirical strategy allows for cross-sectionally correlated error terms due to the presence of unobserved common factors, which are potentially non-stationary. We find that tax incentives are effective. Public funding (subsidization) of R&D performed by firms can also be effective if subsidies are not too low, neither too high. R&D performed within the government sector and within institutions of higher education is basically neutral with respect to business R&D. We find no evidence for crowding out, nor for complementarity. Using an indicator for wage pressure developed by Blanchard (Economic Policy, 2006), we find that wage moderation may contribute to innovation, but only in fairly closed economies and in economies with flexible labour markets. In highly open economies and economies with rigid labour markets rather the opposite holds. In these economies high wage pressure may enhance creative destruction and force firms to innovate as competitive strategy. Our results show that a careful treatment of the properties of the data is crucial. |
| Keywords: | R&D, technology policy, wage formation, panel cointegration |
| JEL: | E22 J30 O31 O38 O57 |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:15/911&r=ino |
| By: | Bonfiglioli, Alessandra; Crinò, Rosario; Gancia, Gino A |
| Abstract: | We study the equilibrium determinants of firm-level heterogeneity in a model in which firms can affect the variance of their productivity draws at the entry stage and explore the implications in closed and open economy. By allowing firms to choose the size of their investment in innovation projects of unknown quality, the model yields a Pareto distribution for productivity with a shape parameter that depends on industry-level characteristics. A novel result is that export opportunities, by increasing the payoffs in the tail, induce firms to invest in bigger projects with more spread-out outcomes. Moreover, when more productive firms also pay higher wages, trade amplifies wage dispersion by making all firms more unequal. These results are consistent with new evidence on how firm-level heterogeneity and wage dispersion vary in a panel of U.S. industries. Finally, we use patent data across U.S. states and over time to provide evidence in support of a specific mechanism of the model, namely, that export opportunities increase firm heterogeneity by fostering innovation. |
| Keywords: | firm heterogeneity; international trade; productivity dispersion; wage inequality |
| JEL: | E24 F12 F16 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:10938&r=ino |
| By: | Alireza Naghavi (University of Bologna and Centro Studi Luca d'Agliano); Chiara Strozzi (University of Modena and Reggio Emilia) |
| Abstract: | This paper studies mechanism through which intellectual property rights (IPR) protection can influ-ence the impact of skilled migration on innovation activities in developing countries. We argue that knowledge acquired by emigrants abroad can flow back to their country of origin through diaspora networks. IPR protection in the sending country magnifies this effect by increasing the size of the innovation sector, thereby allowing diaspora gains to fall on a larger range of workers. Strong IPR enforcement therefore makes it more likely for brain drain to be transformed into brain gain. |
| JEL: | O30 F22 J24 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:380&r=ino |
| By: | Šastitko, Andrej E.; kurdin, a. a. |
| Abstract: | This study analyses the incentives for process innovations under different conditions determined by the competition policy for intellectual property rights (IPR) and particular features of markets and technologies. Competition policy is defined by the presence or absence of compulsory licensing, markets are characterized by technological leadership or technological competition. The results of modelling show that the uncertainty engendered by technological competition may lower the intensity of innovative activities, if there are no mechanisms of coordination between participants. Voluntary licensing generally improves social welfare but does not guarantee an increase in innovative efforts. Compulsory licensing can impede innovations due to the opportunistic behaviour of market participants but certain measures of state policy can prevent this negative effect. |
| Keywords: | competition policy,compulsory licensing,process innovations |
| JEL: | L24 O31 K21 |
| Date: | 2015–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:121851&r=ino |
| By: | Ipsita Roy (Graduate College "The Economics of Innovative Change", Friedrich Schiller University Jena, and Max Planck Institute of Economics.) |
| Abstract: | While significant attention is given to the concept of absorptive capacity as a source of competitive advantage in firms, a major drawback exists in the way it is unidimensionally defined in micro-level analysis. The paper addresses this limitation and reconceptualizes absorptive capacity as a strategic human resource construct in firms, which in turn, provide important conditions for R&D cooperation and innovation. I begin by providing a "beyond-R&D" definition of absorptive capacity constituting employment practices and incentive-based compensation programs. Next, I exploit the relationship between these practices and heterogeneity in firms' R&D cooperation and partner selection strategies distinguishing between different types of external collaboration partners- horizontal, institutional and consulting-based. Further, I examine the impact of such cooperative R&D on incremental product, process and radical innovation. Employing the IAB Establishment Panel Survey on about 1200 German innovation-based establishments during 2007-2011, findings demonstrate that adoption of employment practices positively affects R&D cooperation irrespective of the type of collaboration partner, while compensation programs positively affect only horizontal R&D cooperation. Significant differences in the patterns of research collaboration are found between manufacturing and service sector firms, with respect to importance of human resource management, educational structure of the workforce and internal R&D. Finally, cooperative R&D with research institutes and consulting firms are found to have significantly positive impact on the likelihood of coming up with incremental product, process and radical innovation, but the effect is relatively weak in case of horizontal R&D cooperation. |
| Keywords: | Absorptive capacity, strategic human resource, employment practices, compensation programs, R&D cooperation, innovation |
| JEL: | J21 J24 J33 L20 M12 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2015-018&r=ino |
| By: | Erik Strøjer Madsen (Department of Economics and Business, Aarhus University, Denmark); Simon Hartington (Maersk Oil and Gas) |
| Abstract: | This article discuss’ how economics of scale in supply and demand in the telecommunication industry has developed and how this has had great effect on the widespread usage and popularity of smart phones. By using this as a theoretical ground the paper looks into technical innovation in the telecommunication industry and finds significant similarities between the industry development and the literature on disruptive technology, which finds that incumbent companies are not able to react in a successful way when disruptions occur in their industry. By studying how the telecommunication industry developed around the introduction of the smart phone and looking closer into the reactions of major players such as Apple, Google, Microsoft and Nokia, we find evidence supporting the finding in the literature of an inadequate strategies among incumbent companies. Large incumbent companies are focused too much on incremental innovation of their products which have a more clear short-term return and a solution of this problem is to focus less on short-term efficiency and to allow the individual researcher to follow his/her own ideas’ to a larger extent. |
| Keywords: | Networking, Disruptive technologies, Smart phone, Innovation strategies, Telecom industries |
| JEL: | L12 L16 L17 |
| Date: | 2015–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:aah:aarhec:2015-21&r=ino |
| By: | Bogner, Kristina |
| Abstract: | Analyzing the effect of Direct Project Funding (DPF) on innovative performance of economic agents is a major challenge for innovation economists and policy makers who must give valid policy recommendations and decide on the allocation of financial resources. An approach that becomes more and more important is the use of agent-based modeling in analyzing innovative performance of market players. In this paper, an agentbased percolation model is used to investigate the effects of project funding on innovative performance in terms of the maximum technological frontier that can be reached as well as in terms of the number of innovations generated by firms. The model results show that firms which participate in subsidized projects outperform firms that do not participate in subsidized projects, especially in increasingly complex technological fields. However, the worse performance of firms that do not participate in subsidized projects can be offset by an increase in the firms' financial resources. Hence, the model indicates, the effect of project funding is a purely financial one and might even have negative effects on innovative performance. This is the case if, for instance, a high number of funded research projects disturbs firms' paths through the technology space. Following the results of the model, project funding is most effective and important in increasingly complex technology spaces and less effective and important in less complex technology spaces. Moreover, the model results show, other financial resources as venture capital can substitute for direct project funding. |
| Keywords: | project funding,innovation,technology space,agent-based simulation |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:102015&r=ino |
| By: | Alireza Naghavi (University of Bologna); Chiara Strozzi (University of Modena and Reggio Emilia, IZA) |
| Abstract: | This paper studies the interaction between international migration and intellectual property rights (IPR) in determining innovation performance of developing countries. Although emigration may di-rectly cause brain drain, it generates a flow of knowledge acquired by emigrants abroad back to their home countries, which could be better absorbed under sound IPR institutions. IPRs thus work as a moderating factor to overcome brain drain by creating the conditions to better absorb potential gains from migration. Using a panel dataset of emerging and developing countries, we establish a positive correlation between emigration and innovation when IPRs are sufficiently strong. |
| Keywords: | Intellectual property rights, International migration, Innovation, Knowledge flows, Brain gain, Diaspora. |
| JEL: | O30 F22 J24 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:374&r=ino |
| By: | Vincent Van Roy (European Commission, Joint Research Centre, Ispra, Varese, Italy); Daniel Vertesy (European Commission, Joint Research Centre, Ispra, Varese, Italy); Marco Vivarelli (DISCE, Università Cattolica - SPRU, University of Sussex - Institute for the Study of Labour (IZA), Bonn) |
| Abstract: | This paper explores the possible job creation effect of innovation activity. We analyze a unique panel dataset covering almost 20,000 patenting firms from Europe over the period 2003-2012. The main outcome from the proposed GMM-SYS estimations is the labour-friendly nature of innovation, which we measure in terms of forward-citation weighted patents. However, this positive impact of innovation is statistically significant only for firms in the high-tech manufacturing sectors, while not significant in low-tech manufacturing and services. |
| Keywords: | Technological change, innovation, patents, employment, GMM-SYS |
| JEL: | O31 O33 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie5:ispe0075&r=ino |
| By: | Domenico Depalo (Bank of Italy); Sabrina Di Addario (Bank of Italy) |
| Abstract: | We estimate individual returns to patents using a unique longitudinal administrative dataset on patents and earnings, following individuals and firms for 20 years (1987-2006). We find that inventors' wages steadily increase before patent applications are submitted to the European Patent Office, reach a peak around the time of submission and then decrease again. We also find that the applications that will eventually lead to a granted patent receive a greater wage increase than those that will not. Finally, we use an event study framework to distinguish among inventor-types and we find that the star-inventors" (the employees submitting at least three times in their life) receive a lasting wage premium, while the employees with one or two submissions stop receiving the premium after the application date, in line with the "unobserved ability" literature. |
| Keywords: | Patents; Wages; Incentives; Inventors; Performance pay; Return |
| JEL: | O31 J31 |
| URL: | http://d.repec.org/n?u=RePEc:csl:devewp:375&r=ino |
| By: | Zwick, Thomas; Frosch, Katharina; Hoisl, Karin; Harhoff, Dietmar |
| Abstract: | Based on an established theoretical framework of the drivers of inventive performance, the so-called KSAO (Knowledge, Skills, Abilities, and Other) factors, this paper seeks to explain empirically the performance of inventors throughout their careers. We combine survey information spanning the inventors' entire careers and psychometric test evidence, with patent history data for more than 1,000 inventors. We also control for variables that have traditionally been included in estimations of inventive performance such as inventor age and a broad list of applicant institution-, technology-, patent-, and period-related information. We show that educational level, skills acquired during the career, personality traits, career motivations, cognitive abilities, and cognitive problem-solving style are significantly related to inventive performance. |
| Keywords: | inventive performance,individual drivers,patent history,survey |
| JEL: | J24 M54 O31 O32 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:15080&r=ino |
| By: | Brenner T.; Capasso M.; Duschl M.; Frenken K.; Treibich T.G. (GSBE) |
| Abstract: | This paper studies the causal relations between regional employment growth in Knowledge-Intensive Business Services KIBS and overall regional employment growth using German labour-market data for the period 1999-2012. Adopting a recently developed technique, we are able to estimate a structural vector autoregressive model in which the causal directions between KIBS and other sectors are examined including various time lags. One main finding holds that although regional growth has a negative short-term effect on KIBS, KIBS growth has a long-term positive effect on the whole regional economy. This result confirms the claim that KIBS can play a key role in regional policies. Distinguishing between financial and non-financial KIBS, we find that financial KIBS have a procyclical effect on regional growth underlining the potential de-stabilizing effect of a large financial sector. |
| Keywords: | Forecasting and Prediction Methods; Simulation Methods ; Technological Change: Choices and Consequences; Diffusion Processes; General Regional Economics (includes Regional Data); |
| JEL: | C53 O33 R10 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2015029&r=ino |
| By: | Eliasson, Kent (Growth Analysis and Department of Economics, Umeå University,); Hansson, Pär (Uppsala Center for Labor Studies); Lindvert, Markus (Growth Analysis) |
| Abstract: | Using Swedish micro data we find no evidence for the concerns circulating in the public debate that foreign acquisitions lead to reductions in R&D expenditures and high-skilled activities in targeted domestic firms, neither in MNEs nor in non-MNEs. Previous studies have only focused on larger firms. In this paper we are able to study the impact on smaller firms (less than 50 employees). This is important since 90 percent of the firms acquired by foreign enterprises have less than 50 employees. For this group of firms there is no information on R&D, but by using the register of educational attainment we have data on the share of high-skilled labor in all Swedish firms, irrespective of size. Interestingly, we find that among smaller firms foreign enterprises tend to acquire high-productive, skill-intensive firms (cherry-picking) and after the acquisitions skill upgrading appears in acquired smaller, non-MNE firms. |
| Keywords: | foreign acquisitions; skill upgrading; R&D intensity; propensity score matching |
| JEL: | F23 J24 O32 O33 |
| Date: | 2015–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uulswp:2015_002&r=ino |
| By: | Nabila Arfaoui (Université Nice Sophia Antipolis; GREDEG-CNRS); Eric Brouillat (University of Bordeaux; GREThA); Maïder Saint-Jean (University of Bordeaux; GREThA) |
| Abstract: | This article provides new insights into the impact of various policy designs on firms' innovative activities of substituting dangerous chemicals with less damaging ones. Such a principle of substitution is at the heart of the REACH regulation enacted in 2007 to control potentially dangerous chemicals in the European Union (EU). In recent years, research scientists, government panels, and the popular press have denounced bisphenol-A (BPA) used in food packaging for its developmental effect as an endocrine disruptor. In this article, we develop an agent-based model (ABM) as an explorative tool to investigate how the policy design of REACH can help bring safer substitutes of bisphenols to market. We mimic the main mechanisms underlying REACH, suggest the importance of perceived stringency on eco-innovative activities, and address the issue of possible interaction among the various policy design aspects. The modeling exercise enables an analysis of misfits likely to emerge between objective and perceived stringency of regulation as well as misfits related to divergent perceptions between suppliers and clients. The model outcomes stress that the efficiency of severe regulation depends little on how agents perceive it; objective stringency is self-sufficient to stimulate technology transition. A severe regulation results in a stable oligopoly after experiencing an early but short turbulent phase because of the ban of the dangerous substance. This action calls for an assessment by policy makers of the necessary trade-offs between fast environmental and health benefits, temporary demand mismatches and higher market concentration. By contrast, the impact of a lenient regulation depends sorely on how agents perceive it. In particular, possible misfits in the perception of policy stringency between suppliers and clients may strengthen the efficiency of the regulation or, on the contrary, make it irrelevant. These findings highlight that the way stakeholders perceive the regulatory threat may be a key aspect to consider when fostering technological transition. |
| Keywords: | technology substitution, perceived stringency, REACH regulation, bisphenols, agent-based model (ABM) |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2015-45&r=ino |
| By: | Hübler, Michael; Schenker, Oliver; Fischer, Carolyn |
| Abstract: | This paper studies policy instruments that correct insufficient learning-by-doing (LbD) and research and development (R&D) of renewable electricity technologies and insufficient investments in energy efficiency (EE) in the presence of carbon pricing. The theoretical model analysis shows how to re-adjust the first-best in second-best situations, in which one of the policy instruments is restricted. Calibrated to the European power sector, the first-best choice of all instruments reduces the climate policy cost by one third. Feed-in tariffs turn out to be good substitutes for LbD, but not for R&D or EE subsidies. |
| Keywords: | second-best,climate policy,energy policy,feed-in tariff,power sector,EU |
| JEL: | C61 O33 Q48 Q54 Q55 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:15079&r=ino |
| By: | Mirko Wiederholt (Goethe University Frankfurt); Filip Matejka (CERGE-EI); Bartosz Mackowiak (European Central Bank) |
| Abstract: | Dynamic rational inattention problems are notoriously difficult to solve. We consider a standard linear quadratic Gaussian tracking problem, as in Sims (2003), Section 4. Let Xt denote the variable being tracked and let t denote the time t innovation in the variable being tracked. We show that if the variable being tracked follows an AR(p) process, the optimal signal is about a linear combination of {Xt, ..., Xt-p+1} only. If the variable being tracked follows an ARMA(p,q) process, the optimal signal is about a linear combination of {Xt, ..., Xt-p+1} and {t, ..., t-q+1} only. Furthermore, the agent can attain the optimum with a single informative signal. These results make it much easier to solve dynamic rational inattention problems. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed015:1316&r=ino |
| By: | Chrysovalantou Miliou (Department of Economics, Universidad Carlos III de Madrid, Calle Madrid 126, Getafe (Madrid)); Emmanuel Petrakis (Department of Economics, University of Crete, Greece) |
| Abstract: | We study vertical integration taking into account the fact that, by facilitating the exchange of information within the integrated firm, it allows its upstream unit to disclose to the non-integrated downstream customer-rival the knowledge that it acquires regarding its downstream partner's innovation. We show that a vertically integrated firm chooses to disclose its knowledge to its downstream rival. Knowledge disclosure intensifies downstream competition but, at the same time, expands the size of the downstream market. We also show that, due to knowledge disclosure, vertical integration increases firms' innovation incentives, consumer and total welfare, and decreases, instead of raises, the rival's cost. |
| Keywords: | vertical integration; R&D investments; market foreclosure; knowledge disclosure |
| JEL: | L13 L22 L42 |
| Date: | 2015–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:crt:wpaper:1507&r=ino |
| By: | Ugur, Mehmet; Trushin, Eshref; Solomon, Edna |
| Abstract: | This paper investigates the effects of UK and EU subsidies on privately-funded R&D intensity of a sample of 39,730 UK firms. The sample consists of R&D-active firms surveyed in at least one year from 1998-2012. The results are obtained from 4 different estimators, with different degrees of control for selection and time-constant fixed effects: (i) pooled OLS without selection correction; (ii) fixed-effect (within-group) estimation without selection correction; (iii) pooled OLS with selection correction; and (iv) fixed-effect estimation with selection correction. We report that UK subsidies are not associated with additionality in privately -funded R&D intensity in the full sample, and the additionality effect in manufacturing is too small to be conomically significant. In contrast, EU subsidy is associated with an additionality effect of 2% in both samples. Ordered-Heckman estimations of leverage indicate that an increase in UK subsidy intensity (subsidy/total R&D) is not likely to make a difference to private R&D effort in any of the subsidy intensity classes demarcated by 4 quartiles of the intensity distribution. However, an increase in EU subsidy intensity is associated with leverage in subsidy intensity class 3, which corresponds to subsidy intensity values within the 3rd quartile of the distribution. |
| Keywords: | Innovation, R&D, subsidies, additionality |
| JEL: | C41 D22 L1 O21 O3 |
| Date: | 2015–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68009&r=ino |
| By: | Sabri, Yasmine (Department of Industrial Economics and Management, Royal Institute of Technology, Stockholm, Sweden, & Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Milan, Italy); Nuur, Cali (Department of Industrial Economics and Management, Royal Institute of Technology, Stockholm); Micheli, Guido J.L. (Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Milan, Italy) |
| Abstract: | Physical supply chains are the medium where innovation practices are usually implemented, whether in the case of introducing new products/processes, or when improving existing designs of products/processes, radically or incrementally. Thus, process and product innovation practices have become an integral part of decisions relating to the management and design of supply chains. This study investigates how innovation implementation is a cornerstone in the decision making process of supply chain configuration. Furthermore, it examines how this relation is manifested with respect to performance. The paper explores the configuration profiles of two major manufacturers based in Italy and Sweden, with globally designed upstream and downstream chains, demonstrating the differences and similarities, while investigating the innovation practices within each firm. The paper draws conclusions on the relation between innovation implementation and supply chain management, in addition to configuration and re-configuration decision making process. |
| Keywords: | Supply Chain Configuration; Innovation practices; Performance |
| JEL: | L25 O32 |
| Date: | 2015–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:kthind:2015_012&r=ino |
| By: | Breul, Moritz; Broekel, Tom; Brachert, Matthias |
| Abstract: | Following the relatedness literature, we explore to what extent related industries influenced the regional emergence of the PV-industry. In addition, we shed light on factors explaining selective processes of clustering. We particularly argue that generic resources and resources of related activities have been crucial for the regional concentration in early phases of the industry life cycle. With increasing maturity, industry-specific resources became more important. Based on a unique dataset containing population dynamics of the German PV-industry, the hypotheses are tested empirically. Our results partially confirm the assumed beneficial effects of related industries for the emergence of the PV-industry. Moreover, we observe changes in the relative importance of factors supporting regional concentration, with industry-specific resources becoming dominant as the industry matures. |
| Keywords: | Photovoltaik Industrie, Entstehung, Konzentration, Clusterung, Deutschland |
| JEL: | O33 O38 R11 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:67959&r=ino |
| By: | Conlé, Marcus |
| Abstract: | China´s rapid economic ascent has been accompanied by brilliant institutionalist scholarship elaborating on the significance of institutional diversity for China´s recent development trajectory. As valuable as these analyses are, their foundation in the transition literature seems to have resulted in their focusing mainly on offering explanations for the characteristics and the (temporary) persistence of institutional diversity rather than on providing insights about the impact of that diversity on such issues as innovation and competitive advantage. This focus has arguably contributed to both, a limited understanding of China´s development model as well as a limited impact of the findings concerning China´s institutional reality on the research program of the comparative capitalisms, specifically on the debate on the benefits and flaws of the so-called Varieties of Capitalism (VoC). Building on recent work on innovation in China, the present paper seeks to provide a typology of architectural innovation, a concept that was originally introduced by Rebecca Henderson and Kim Clark as an extension to the radical/incremental innovation typology, in order to capture the main features of a pattern that appears to be found in a great number of China´s (assembly) industries. After illustrating this pattern with the help of an exemplary case study of China´s passenger vehicle sector, the paper will give a brief discussion of how institutional diversity and the various roles of government relate to the identified pattern of innovation. |
| Keywords: | China,varieties of capitalism,architectural innovation,assembly industries,passenger vehicles |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:udedao:1042015&r=ino |
| By: | Jun, Bogang; Kim, Tai-Yoo |
| Abstract: | This study aims to introduce a new analytical macroeconomic framework, the expanded reproduction system, that combines the accumulated wisdom of several contemporary economic models while also compensating for their shortcomings. This new framework may be used to study macroeconomic phenomena from both the supply and demand side over a number of different time intervals. Furthermore, as we account for both new product and productivity innovations, we are able to account for both qualitative and quantitative developments within the economy. |
| Keywords: | Schumpeterian Economics,New Classical Synthesis,Macroeconomics,Economic Policy |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:112015&r=ino |
| By: | Ipsita Roy (Graduate College "The Economics of Innovative Change", Friedrich Schiller University Jena, and Max Planck Institute of Economics.); Davide Consoli |
| Abstract: | Building on the canonical model of skill-biased technical change to incorporate differential effects of technology and international trade on the skill composition of occupations, the paper employs a task-based approach to analyze structural changes in regional employment within a rich vocational education setting in West Germany during 1979 and 2012. Results confirm theoretical predictions that regional employment districts with high initial share of routine occupations have experienced greater subsequent adoption of computer and information technology and larger decline in routine occupations. Exposure to global imports in goods and services have reduced overall employment in routine-intensive occupations; the magnitude being notably smaller as compared to technology. However, when looking at the direction of displacement of routine-workers, regions with greater share of routine jobs have experienced greater growth of high-skilled abstract jobs in the subsequent periods while the overlap between initial apprenticeship intensity and subsequent decline in regional routine employment is significantly strong. Taken together, findings show that unlike in the U.S. where employment growth in low-skilled service occupations has been the greatest, in Germany there is a greater trend towards occupational upgrading and larger growth in managerial and professional occupations due to the operationalization of its apprenticeship system. |
| Keywords: | Skill-biased Technical Change, Task-based Approach, Skill Composition, Technology, International Trade, Apprenticeship, Regional Employment District |
| JEL: | E24 F16 J21 J24 O33 R23 |
| Date: | 2015–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2015-017&r=ino |
| By: | Johannes W. Fedderke and Yang Liu |
| Abstract: | This paper examines the nature and sources of productivity growth in South African manufacturing sectors, in international comparative perspective. On panel data estimations, we find that the evidence tends to support Schumpeterian explanations of productivity growth for a panel of countries including both developed and developing countries, and a panel of the South African manufacturing sectors. By contrast, for a panel of OECD manufacturing sectors, semi-endogenous productivity growth is supported. However, we also report evidence that suggests that sectors are not homogeneous. For this reason time series evidence may be more reliable than panel data. Time series evidence for South Africa suggests that prospects for the sustained productivity growth associated with Schumpeterian innovation processes, is restricted to a narrow set of sectors, strongly associated with the chemicals and related sectors, machinery and transport equipment, and basic iron and steel sectors. Semi-endogenous growth finds much weaker support. For the OECD manufacturing sectors, both semi-endogenous and Schumpeterian growth finds support, with semi-endogenous growth more prevalent than for South African manufacturing. The sustained productivity growth associated with Schumpeterian growth frameworks is relatively rare everywhere. |
| JEL: | O47 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:554&r=ino |
| By: | Friedemann Polzin (Utrecht University School of Economics (USE), Sustainable Finance Lab, Kriekenpitplein 21-22, 3584 EC Utrecht, The Netherlands); Steve Sorrell (SPRU (Science Policy Research Unit), School of Business, Management and Economics, University of Sussex, UK); Colin Nolden (SPRU (Science Policy Research Unit), School of Business, Management and Economics, University of Sussex, UK) |
| Abstract: | Procurement Frameworks for Energy Performance Contracting (PFEPCs) simplify the process of negotiating, developing and implementing Energy Performance Contracts (EPCs) with Energy Service Companies (ESCOs). This paper analyses their role in promoting the implementation of cost-effective energy efficiency measures in the UK public sector. Compared to conventional approaches to procuring goods and services involving detailed specifications, PFEPCs translate the challenge of upgrading, retrofitting and replacing energy related equipment and infrastructures into required outputs through functional specifications. The innovativeness of specific PFEPCs often lies less in the diffusion of ‘developmental’ innovative energy efficient solutions, although partner bidding approaches create favourable conditions for innovation. However increasing standardisation and bundling prove successful at lowering transaction cost, which enables ESCOs to address projects which would not be considered in the absence of PFEPsdue to high transaction costs. This particular organisational innovation opens the market up to new approaches to implementing costeffective energy efficiency measures. |
| Keywords: | Energy efficiency; energy performance contracting (EPC); energy service companies (ESCOs); public procurement of innovation; public sector. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2015-31&r=ino |
| By: | Katherina Kuschel; María-Teresa Lepeley; Fernanda Espinosa; Sebastián Gutiérrez (School of Business and Economics, Universidad del Desarrollo) |
| Abstract: | Purpose: This study explores the funding opportunities for women start-up founders who have received support from the Chilean government agency accelerator Start-Up Chile. It examines the role of gender in Latin American women founders at the stage when they are raising funds and equity capital. Design/methodology/approach: The study includes an inductive, qualitative approach and interviews with 20 female founders. Findings: The thematic analysis revealed 10 subthemes that condition founder’s access to capital in the following categories: capital needs, network, and individual characteristics. Originality/value: The contribution of this study is the identification of predominant factors for female entrepreneurs raising capital followed by implications for public policies in entrepreneurial ecosystems including future research orientation. |
| Keywords: | Entrepreneurship, New high-technology ventures, Female founders, Entrepreneurial ecosystem, Start-Up Chile, Latin America |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:dsr:wpaper:24&r=ino |
| By: | Löher, Jonas; Schell, Sabrina; Schneck, Stefan; Werner, Arndt; Moog, Petra |
| Abstract: | Innovativen Wachstumsunternehmen steht mit dem Crowdinvesting in Deutschland seit 2011 eine neuartige Finanzierungsmethode zur Verfügung. Hierbei versuchen die meist jungen Unternehmen durch einen gezielten öffentlichen Aufruf eine breite Masse privater Investoren anzusprechen. Basierend auf einer umfangreichen Datenbank sowie einer Unternehmensbefragung zeigen wir erste Entwicklungslinien eines im Wachstum begriffenen Marktes auf. Dabei wird deutlich, dass Unternehmer sich im Vorfeld bewusst für das Crowdinvesting entscheiden, obwohl ihnen Alternativen zur Verfügung stehen. Allgemein harmoniert die Finanzierungsform dabei mit etablierten Arten der Frühphasenfinanzierung. Zudem ist festzustellen, dass die Bestandsfestigkeit der Unternehmen zwar oberhalb des Bundesdurchschnitts liegt, die zum Finanzierungszeitpunkt getroffenen Prognosen jedoch verfehlt werden. |
| Abstract: | Equity-crowdinvesting was launched in Germany in the year 2011. This funding source enables young and emerging businesses to gather financial means by addressing numerous private investors via an open-call. Our examination of 163 funding rounds reveals that the German crowdinvesting market sharply increased in the first years. Most entrepreneurs rely on crowdinvesting despite alternative funding sources, which suggests that the decision for crowdinvesting is voluntary. Often crowdfunded ventures have professional investors prior to their funding campaign, which suggests that crowdinvesting matches with established financial sources. In the short-run, the proportion of businesses that fail is comparatively small. Firms mostly fail to stick to the financial objectives, which are published at the time of the crowdinvesting campaign. |
| Keywords: | Crowdfunding,Crowdinvesting,Unternehmensfinanzierung,Gründungen,Gründungsfinanzierung,equity-based crowdfunding,corporate finance,entrepreneurship |
| JEL: | G20 G23 L26 M13 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifmmat:241&r=ino |
| By: | Katherina Kuschel (School of Business and Economics, Universidad del Desarrollo) |
| Abstract: | This paper explores decision-making for motherhood in the tech industry, and if there is an optimal context regarding their startup. The low female participation rate is a public concern in this extreme environment of long working hours, time pressure, and high competitiveness. Eighteen interviews were conducted to female founders and analyzed using a grounded theory approach. Findings suggest two sources of “mumpreneur” in technology: 1) mothers that created a startup while young and childless, and 2) mothers that created a technology venture as a strategy to leave the corporate world. The first group is highly work-role salient while the second is highly family-role salient. Three subcategories divide the first category, that can be conceived as continuous stages: “not thinking about motherhood”, “wishing to be a mother”, and “mother”. Those codes are associated with the business stage, team size, and team gender diversity of the startup. Flexibility and autonomy allow work-family balance. Work-role salient mothers acknowledge a huge family sacrifice towards achieving business success. Further research directions are discussed as a way of extending the knowledge among this profile. |
| Keywords: | Entrepreneurship, New high-technology ventures, Female founders, Motherhood, Decision-making, Role salience |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:dsr:wpaper:25&r=ino |
| By: | Katherina Kuschel; María-Teresa Lepeley (School of Business and Economics, Universidad del Desarrollo) |
| Abstract: | Purpose – Latin American investors are commonly suspicious of investing in copreneurial ventures (a male and female couple) integrated in working teams and show even higher levels of uncertainty when startups are led by a female founder. This paper addresses issues related to women as leaders in copreneurial tech ventures and analyzes whether these ventures are growth-oriented or conform to limited partnerships that merely meet women’s needs for a standard of living. Design/methodology/approach – A qualitative, inductive and constructive approach was needed for addressing the research question. Three copreneurial women and two divorced copreneurs were interviewed. A grounded theory approach was followed to analyze data, which identified emerging themes. Findings – Copreneurial teams in technology have similar and complementary high levels of education and skill development. After enough time working together, each partner is well aware of mutual skills and each other’s strengths, allowing them to identify their roles. Both divide work and family, and have developed a level of mutual trust that is essential to moving forward. They commonly show a workaholic tendency with a high rational underpinning. All of these factors strengthen collaboration, and in many instances this business liaison can remain intact despite a breakdown in a sentimental relationship. Additional findings show that their growth-orientation take multiple structures. Practical implications – This study conveys information that can help investors make decisions that support these copreneurial teams. Originality/value – Although representing an increasingly common type of startup team, copreneurs in technology have not yet been addressed as a specific sample in family business research. |
| Keywords: | entrepreneurship, copreneurs, new high-technology ventures, female founders, Latin America |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:dsr:wpaper:26&r=ino |