nep-ino New Economics Papers
on Innovation
Issue of 2016‒05‒08
35 papers chosen by
Uwe Cantner
University of Jena

  1. Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks By Rune Dahl Fitjar; Franz Huber; Andrés Rodríguez-Pose
  2. Barriers to Environmental Innovation in SMEs: Empirical Evidence from French Firms By Amandine Pinget; Rachel Bocquet; Caroline Mothe
  3. “Innovation, heterogeneous firms, and the region” By Enrique López-Bazo; Elisabet Motellón
  4. Quantifying the Effects of Patent Protection on Innovation, Imitation, Growth, and Aggregate Productivity By Pedro Bento
  5. Regional distribution of the national system of innovation actors and economic development: an international comparison By Ulisses Pereira dos Santos
  6. Banking Consolidation and Small Firm Financing for Research and Development By Chang, Andrew C.
  7. When Regional Innovation Policies Meet Policy Rationales and Evidence: A Plea for Policy Analysis By Borrás, Susana; Jordana, Jacint
  8. Economic Policy Monitor 2014: Effective Regulations for Sustainable Growth By Philippine Institute for Development Studies (PIDS)
  9. Clans, Guilds, and Markets: Apprenticeship Institutions and Growth By David de la Croix; Matthias Doepke; Joel Mokyr
  10. The concept of “empowerment†in the research on organization and innovativeness By Nicoletta Baskiewicz; Aneta Pachura
  11. GVCs, Jobs And Routine Content Of Occupations By Luca Marcolin; Sébastien Miroudot; Mariagrazia Squicciarini
  12. Impacts of Self-efficacy on Perceived Feasibility and Entrepreneurial Intentions: Empirical Evidence from China By Peng, Yan-ling; Kong, Rong; Turvey, Calum G.
  13. Using Continuous Improvement and Innovation Principles for Strategic Planning in a Government Department By Griffith, G.R.; Mullen, J.D.
  14. Peer-to-peer lending and financial innovation in the United Kingdom - Ulrich Atz and David Bholat By Atz, Ulrich; Bholat, David
  15. La politica industriale tra Stato e Mercato By Paolo Carnazza
  16. “Regulation of Food Quality: Deep Capture and Economies of Scope between Innovation and Influence” By Sheldon, Ian; Roe, Brian; Olimov, Jafar
  17. Innovation and Access to Finance – A Review of the Literature By Michele Cincera; Anabela Marques Santos
  18. Entrepreneurial skills and wage employment By Aleksander Kucel; Montserrat Vilalta-Bufí
  19. Innovation Strategies in Indian Textile Sector – Evidence from Surat Textile Cluster By Pohit, Sanjib; Jamal, Tabassum; Suman, Yogesh; Kumar Yadav, Nitesh; Kumar Saini, Mahesh
  20. The impact of R&D on factor-augmenting technical change- an empirical assessment at the sector level By Kristkova, Z. Smeets; Gardebroek, K.; van Dijk, M.; van Meijl, H.
  21. Subsidizing new technology adoption in a Stackelberg duopoly: Cases of substitutes and complements By Hattori, Masahiko; Tanaka, Yasuhito
  22. The Complementarity Effect: Effort and Sharing in the Entrepreneur and Venture Capital Contract By Marcos Vergara; Claudio Bonilla; Jean P. Sepúlveda
  23. Promoting Innovation in Small Markets: Evidence from the market for rare and intractable diseases By IIZUKA Toshiaki; UCHIDA Gyo
  24. Innovating rural resources governance through new policy instruments: the case of “network contracts” By Secco, Laura; Abatangelo, Chiara; Pisani, Elena; Gallo, Diego; Pettenella, Davide; Gatto, Paola; Dare, Riccardo; Vidale, Enrico
  25. Global Entrepreneurship Monitor: reporte regional del Biobío 2014-2015 By Adriana Abarca Montero; Jorge Espinoza Benavides; Vesna Mandakovic; Patricio Rojas Quezada; Claudia Yáñez Valdés
  26. Climate change, global drivers and local decision makers in rural communities: the role of translational research, and adaptation strategies that contribute to resilience By Valdivia, Corinne; Kengo, Milton; Jimenez, Elizabeth; Turin, Cecilia
  27. Do Recessions Accelerate Routine-Biased Technological Change? Evidence from Vacancy Postings By Brad J. Hershbein; Lisa B. Kahn
  28. Entrepreneurial Choices of Initial Human Capital Endowments and New Venture Success By Vera Rocha; Mirjam van Praag; Timothy B. Folta; Anabela Carneiro
  29. Investitionsschwäche oder Strukturverschiebung der Investitionstätigkeit? Zur Rolle immaterieller Investitionen für die Wettbewerbsfähigkeit von Unternehmen By Rammer, Christian; Peters, Bettina
  30. How to Catch a Unicorn: An exploration of the universe of tech companies with high market capitalisation By Jean Paul Simon
  31. Efficient diffusion of renewable energies: A roller-coaster ride By Carsten Helm; Mathias Mier
  32. Innovationsfähigkeit im Kontext organisationaler Lernfähigkeit By Schneider, Gregor; Breßler, Julia
  33. Efficiency differentials and technological gaps in beef cattle production systems in Nigeria By Nwigwe, Cecilia; Okoruwa, Victor; Obi-Egbedi, Oghenerueme
  34. Historical Shocks and Persistence of Economic Activity: Evidence from a Unique Natural Experiment By Michael Fritsch; Alina Sorgner; Michael Wyrwich; Evguenii Zazdravnykh
  35. Entrepreneurial University Culture: The Clash of Values And Resistance to Change By Gerasim A. Mkrtychyan

  1. By: Rune Dahl Fitjar; Franz Huber; Andrés Rodríguez-Pose
    Abstract: This paper analyses how the formation of collaboration networks affects firm-level innovation by applying the ‘Goldilocks principle’. The ‘Goldilocks principle’ of optimal distance in innovation networks postulates that the best firm-level innovation results are achieved when the partners involved in the network are located at the ‘right’ distance, i.e. ‘not too close and not too far’ from one another, across non-geographical proximity dimensions. This principle is tested on a survey of 542 Norwegian firms conducted in 2013, containing information about firm-level innovation activities and key innovation partners. The results of the ordinal logit regression analysis substantiate the Goldilocks principle, as the most innovative firms are found amongst those that collaborate with partners at medium levels of proximity for all non-geographical dimensions. The analysis also underscores the importance of the presence of a substitution-innovation mechanism, with geographical distance problems being compensated by proximity in other dimensions as a driver of innovation, whilst there is no support for a potential overlap-innovation mechanism.
    Keywords: Proximities, innovation, networks, collaboration, Goldilocks principle, Norway
    JEL: O31 O33 D85
    Date: 2016–05
  2. By: Amandine Pinget (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Rachel Bocquet (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Recent literature explores the determinants of environmental innovations (EI) but rarely addresses obstacles to these innovations. To our knowledge, no previous study accounts for antecedents of EI to explore the various perceived barriers to EI for small and medium-sized enterprises (SMEs). Noting the importance of SMEs in European economies, this article identifies the extent to which SMEs perceive barriers to environmental innovations, considering their type, number, and intensity. With a merged data set of 435 French SMEs, we investigate different perceptions of environmentally innovative SMEs, compared with those of technologically innovative SMEs and non-innovative ones, using a multiple treatment model that integrates the antecedents. We thereby analyze SME CEO's perceptions of barriers to EI. The barriers are not only more numerous but also more important for SMEs that engage in environmental innovation activity compared with those that have introduced only technological innovation or those that do not undertake any innovation activity.
    Keywords: SME,Multiple treatment model,CEO perceptions,Antecedents,Barriers,Environmental innovation
    Date: 2015
  3. By: Enrique López-Bazo (AQR Research Group-IREA, University of Barcelona); Elisabet Motellón (AQR Research Group-IREA, University of Barcelona. Universitat Oberta de Catalunya)
    Abstract: This paper investigates the role of regional determinants on innovation performance controlling by the firm’s absorptive capacity and other sources of firm heterogeneity. The findings for a sample of firms in Spain support the hypothesis that regional determinants matter, though their role is subtler than the one frequently assumed. Rather than a direct influence on firm’s innovation, the regional context moderates the effect of internal determinants. In the case of product innovation the most important mechanism of interaction seems to be operating through cooperation in innovation, whereas for process innovation it seems to be through highly skilled labour.
    Keywords: product innovation, process innovation, firm, multilevel modelling, Spanish regions JEL classification: D21; O31; R10; R15
    Date: 2016–04
  4. By: Pedro Bento (Texas A&M University, Department of Economics)
    Abstract: I develop a general equilibrium model in which patent protection can increase or decrease the costs of sequential innovation, original innovation, and imitation. Depending on these relative effects, protection can in theory increase or decrease markups, imitation, innovation, growth, and aggregate productivity. I discipline the model using data from several different sources, and find that weakening protection in the U.S. would lead to no change in markups and imitation, no change in long-run growth, a more than doubling of the number of firms, and an increase in aggregate productivity of 9 percent.
    Keywords: patent protection, firm size, productivity, innovation, imitation, competition
    JEL: O1 O3 O4
    Date: 2016–04–11
  5. By: Ulisses Pereira dos Santos (Cedeplar-UFMG)
    Abstract: It is believed that actors of the National System of Innovation (NSI) influence and are influenced by regional aspects, such as geographical distribution. Based on this perspective the scientific, technological and economical performances in sub-national divisions of nine developed and developing countries are analyzed in this paper. The aim is to evaluate the hypothesis on the existence of higher regional concentration of NSI actors in developing countries. The results suggest that this hypothesis may be correct, since science, technology and innovation activities are more likely to be regionally concentrated in the richest regions in the developing countries under consideration, contrary to that observed in developed countries.
    Keywords: National Systems of Innovation, Regional Development, Economic Development, Developing Countries.
    JEL: O10 O57 R58
    Date: 2016–03
  6. By: Chang, Andrew C.
    Abstract: This paper examines the effect of increased market concentration of the banking industry caused by the Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA) on the availability of finance for small firms engaged in research and development (R&D). I measure the financing decisions of these small firms using a balanced panel of Small Business Innovation Research (SBIR) applications. Using difference-in-differences, I find IBBEA decreased the supply of finance for small R&D firms. This effect is larger for late adopters of IBBEA, which tended to be states with stronger small banking sectors pre-IBBEA.
    Keywords: Banking Deregulation ; IBBEA ; Interstate Bank Branching Deregulation ; Market Concentration ; Research and Development ; Riegle-Neal ; Small Business Innovation Research
    JEL: G21 G28 G39 O30
    Date: 2016–04–08
  7. By: Borrás, Susana (Copenhagen Business School); Jordana, Jacint (IBEI & Universitat Pompeu Fabra)
    Abstract: In spite of recent advancements regarding regional innovation policy rationales and evidence, there are few analyses about the actual features of existing regional innovation policies. Nevertheless, a policy analysis perspective is important in order to recognise their distinctive patterns across regions, and to understand how rationales and evidence can be translated into policy-making. To this purpose, this paper develops a framework to study the extent to which regional innovation policies have changed during the past few years. Since the mid-2000s there has been an important development of innovation policy rationales, advocating for more specialisation; likewise, greater data availability at the regional level has allowed more sophisticated assessment of innovation performance. Finally, the crisis since 2008 has had ravaging effects in some regions, with job losses and severe economic sluggishness. Therefore, it is reasonable to expect transforming dynamics in regional innovation policies. Against this backdrop, the paper compares the institutional frameworks and budgetary priorities of four Spanish regions during the period 2001-2014: Catalonia, the Basque country, Galicia, and Andalusia. In so doing, it aims at studying the extent to which regional governments have readily addressed past and new challenges related to their regional innovation system, and if so, how.
    Keywords: Catalonia; Basque country; Galicia; Andalusia; regional innovation system; smart specialisation; policy change; regional advantage; policy mixes; policy instruments; regulatory governance; Spain
    JEL: E61 O31 O38
    Date: 2016–04–19
  8. By: Philippine Institute for Development Studies (PIDS)
    Abstract: This fifth issue of the PIDS Economic Policy Monitor (EPM) highlights the importance of regulatory coherence and quality to realize rapid, sustainable, and inclusive growth. For the Philippines to take advantage of increased trade and investment under the ASEAN integration, there is a need to address the factors that continue to bring down its competitiveness and that undermine efforts to achieve greater social inclusiveness. Regulatory burdens are one of those factors. They restrain competition, productivity, and innovation. The EPM 2014 starts with the analysis in Chapter 1 of the Philippines` performance in 2014 and the outlook for 2015 and beyond in the face of continued global and regional developments. The Philippines continued on a high-growth path in 2014, averaging 6.1 percent, which was achieved despite a number of challenges, including a lower level of government spending due to the low absorptive capacity of government agencies. The outlook for the country in 2015 remains positive, with a growth forecast of 6.8 percent. The global prospect is also optimistic and the forecast is a growth rate of 3.5 percent. Long-term growth is a function of productivity, thus it is imperative to sustain investments in infrastructure, connectivity, and human capital. Chapter 2 discusses some of these investments that are apparent in a number of policy developments in 2014. They include, to name a few, the extension of the age coverage of the Pantawid Pamilyang Pilipino Program to include 15- to 18-year-old children, the use of the so-called "education deflator" to regulate tuition fee increases, and the enactment of Republic Act 10641 that allows the full entry of foreign banks in the country.Chapter 3, the theme chapter, examines the case for developing a sound and efficient regulatory management system (RMS) for the country. An RMS is the best step toward reducing regulatory burdens and improving the quality of regulations. The Philippines has a system that contains some of the basic elements of an RMS, but these do not represent a coherent and coordinated system nor are these elements regularly undertaken. The government has taken steps to fill the gaps in the system, but this is not enough. A commitment to reforms despite changes in political leadership and a mindset for continual improvement and innovation are a must.
    Keywords: Philippines, regulatory quality, regulatory burden, regulatory management system, cost of doing business, economic outlook, Philippine economy
    Date: 2015
  9. By: David de la Croix (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Matthias Doepke (Department of Economics, Northwestern University); Joel Mokyr (Department of Economics, Northwestern University)
    Abstract: In the centuries leading up to the Industrial Revolution, Western Europe gradually pulled ahead of other world regions in terms of technological creativity, population growth, and income per capita. We argue that superior institutions for the creation and dissemination of productive knowledge help explain the European advantage. We build a model of technological progress in a pre-industrial economy that emphasizes the person-to-person transmission of tacit knowledge. The young learn as apprentices from the old. Institutions such as the family, the clan, the guild, and the market organize who learns from whom. We argue that medieval European institutions such as guilds, and specific features such as journeymanship, can explain the rise of Europe relative to regions that relied on the transmission of knowledge within extended families or clans.
    Date: 2016–03–24
  10. By: Nicoletta Baskiewicz (Technical University of Częstochowa, Faculty of Management); Aneta Pachura (Technical University of Częstochowa, Faculty of Management)
    Abstract: The dynamic nature of the socio – economic environment and a necessity to improvement of management systems of today's organizations leads to undertaking a research on an importance of organizational social potential and its dimensions. The theory of management science has a rich set of management concepts related to social potential. Very valuable concepts seem to be highly exposing the subjectivity and individuality of employees in organization. The aim of this study is an attempt to interpret the concept of empowerment from the perspective of this research on organization, and its potential of innovation.The study was focused on basic interpretation and systematization of the empowerment concept. The text indicated selected properties of empowerment such as engagement, initiative, creativity, autonomy, freedom, responsibility, efficiency etc. Further conceptualization of the concept was carried out from the managerial perspective as well as psychological dimension. On this background the study distinguished attributes and possibility of application of the empowerment concept in the area of development of the innovation potential of the organization. Among others, it was pointed out, for example: the space of social relationships, social awareness, organizational climate, active and free information exchange, access to knowledge, creation of new knowledge, organizational roles, flexibility and decentralization of organizational structures.
    Keywords: empowerment, innovativeness, organization, management, conceptualisation
    JEL: M51 O15 O31
  11. By: Luca Marcolin; Sébastien Miroudot; Mariagrazia Squicciarini
    Abstract: This work addresses the role of global value chains (GVCs), workforce skills, ICT, innovation and industry structure in explaining employment levels of routine and non-routine occupations. The analysis encompasses 28 OECD countries over the period 2000-2011. It relies on a new country-specific measure of routine intensity built using individual-level information from the OECD Programme for the International Assessment of Adult Competencies (PIAAC) survey, as well as on new industry-level Trade in Value Added (TiVA) indicators of offshoring and domestic outsourcing. The results suggest that employment in all types of occupations positively relate to innovation. With respect to offshoring patterns, a positive correlation is observed between the offshoring of inputs and domestic outsourcing with more routine-intensive jobs. Taken together, the results point to the existence of complex interactions between the routine content of occupations, skills, technology and trade, which do not allow for a neat identification of “winners” and “losers” in a GVC context.
    Keywords: employment, outsourcing, technology, global value chains, offshoring
    JEL: F16 F23 J24 O33
    Date: 2016–04–26
  12. By: Peng, Yan-ling; Kong, Rong; Turvey, Calum G.
    Abstract: This paper presents a structural equation model of entrepreneurial intentions as influenced by self-efficacy and perceived feasibility. In this paper self-efficacy refers to a kind of subjective perception and belief that the farmers complete the entrepreneurial activities on the basis of their capacity defined as entrepreneurial self-efficacy, which measured by five dimensions including resource acquisition, opportunity recognition, interpersonal relations, risk management, innovation management. The main findings are that most farmers appear to have a remarkable degree of entrepreneurial intentions; besides, self-efficacy has a significant and positive impact on farm households’ entrepreneurial intentions, and the effect is 0.669; furthermore, perceived feasibility of farmers play a significant role on entrepreneurial intentions; finally, the perceived feasibility of farmers has a partial mediating effect between entrepreneurial self-efficacy and the entrepreneurial intentions.
    Keywords: Agricultural and Food Policy,
    Date: 2015
  13. By: Griffith, G.R.; Mullen, J.D.
    Abstract: Continuous Improvement and Innovation (CI&I) is both a management process and a management strategy. In this paper we describe how CI&I principles have been used in a strategic planning context by the research economists’ group in the NSW Department of Primary Industries. We provide some background on the development of CI&I as a management concept and describe the steps involved in implementing the CI&I process in this context. We conclude with some observations about the usefulness of this approach for planning in a government department.
    Keywords: Continuous improvement and innovation, process, strategy, planning, action, Industrial Organization,
    Date: 2016
  14. By: Atz, Ulrich (Bank of England); Bholat, David (Bank of England)
    Abstract: Peer-to-peer (P2P) lending — direct lending between lenders and borrowers online outside traditional financial intermediaries like banks — first emerged in the United Kingdom and the world with the launch of Zopa in 2005. Our paper provides a quantitative analysis of nearly 14 million loan agreements. We lay bare the history of P2P lending from its beginning, showing the regional geography of P2P lending in the United Kingdom. We suggest that the history of P2P lending can shed light on financial innovation in general. We base our conclusions on four semi-structured interviews with the founders of the three most significant UK P2P platforms (Zopa, RateSetter, and Funding Circle).
    Keywords: Peer-to-peer lending; crowdfunding; innovation; fintech; big data
    JEL: G23 L26 O30
    Date: 2016–04–29
  15. By: Paolo Carnazza
    Abstract: Il presente lavoro intende soffermarsi sul ruolo della politica industriale, in Italia, cercando di individuarne le prospettive sia di breve che di medio-lungo periodo. Dopo avere illustrato i principali risultati di una recente ricerca sullefficacia della politica industriale, lanalisi mette a confronto due differenti approcci: il primo volto ad attribuire allo Stato un importante ruolo nel definire e impostare interventi strutturali di politica economica ed industriale; il secondo finalizzato a minimizzare lintervento statale a sostegno del sistema produttivo. Successivamente, la ricerca si sofferma sui pi recenti interventi di politica industriale adottati in Italia a favore soprattutto dellinnovazione e delle neo-imprese ad alto contenuto tecnologico; questi interventi delineano una vera e propria filosofia di politica industriale e sembrano porsi in una posizione intermedia tra i due differenti approcci. Concludono il lavoro alcune riflessioni volte a delineare le future ed auspicabili tendenze della politica industriale che dovrebbero essere collocate allinterno di un Progetto-Paese condiviso per il raggiungimento di obiettivi di medio-lungo periodo. This paper aims to analyze the role of industrial policy, in Italy, trying to identify the perspectives either in the short or in medium-long term. After having illustrated the main results of a recent research on the effectiveness of industrial policy, the analysis compares two different approaches: the first attributes to the State an important role in defining a set of structural economic and industrial measures; the second finalized to minimize the State intervention in support of the productive system. Moreover, the research focuses on the more recent measures of industrial policy adopted in Italy especially for increasing innovation and new firms with high technological content: these interventions appear to outline a real philosophy of industrial policy and can be considered in between the two different visions. In the conclusion, some thoughts are developed in order to indicate the future and desirable trends of industrial policy to be placed inside a Project-Country and shared with medium - long term objectives.
    Keywords: innovazione, politica industriale
    JEL: A L50 O38
    Date: 2016–04–18
  16. By: Sheldon, Ian; Roe, Brian; Olimov, Jafar
    Abstract: In this paper, existing work on credence goods is extended to include a "diagnosis" stage whereby ill-informed consumers rely on a third party to certify that food products have beneficial characteristics. This compares to existing models of credence goods which focus only on a "treatment" stage, i.e., food is simply certified as having such characteristics. Adding the diagnosis stage allows for "deep capture" by food producers who attempt to influence regulatory outcomes on what quality claims can be made about food products: specifically an innovator, the “expert”, can expend resources to “nudge” regulatory assessment of quality samples in a positive direction, assuming also that there are economies of scope between innovation and influence.
    Keywords: Food Consumption/Nutrition/Food Safety, Public Economics,
    Date: 2015
  17. By: Michele Cincera; Anabela Marques Santos
    JEL: O31 O38 O52
    Date: 2015
  18. By: Aleksander Kucel (Universitat de Barcelona); Montserrat Vilalta-Bufí (Universitat de Barcelona)
    Abstract: Promotion of entrepreneurial skills among the population is often considered as an adequate policy to enhance job creation and economic growth. However, neither the definition of entrepreneurial skills, nor the costs and benefits of such a policy are clear. Our aim is to check whether the benefits of entrepreneurial skills extent beyond self-employment. We use a sample of higher education graduates from Spain, from the year 2000 interviewed in 2005 (REFLEX survey). We denote entrepreneurial skills as those competencies that enhance the likelihood of self-employment. Then we analyze whether they are rewarded in wage employment. We find that alertness to new opportunities, ability to mobilize others and knowledge of other fields are the competencies that enhance self-employment in Spain. Yet, these skills are not rewarded in a salaried job. Therefore, benefits of policies fostering entrepreneurial skills do not extend to wage employment in Spain.
    Keywords: entrepreneurial skills, wage returns, wage employment, self-employment, competencies
    JEL: J24 J31 J43
    Date: 2016
  19. By: Pohit, Sanjib; Jamal, Tabassum; Suman, Yogesh; Kumar Yadav, Nitesh; Kumar Saini, Mahesh
    Abstract: Though India has comparative advantage in labour intensive sector like textile, India’s performance in this sector is not too impressive on the export front. In this context, this paper argues that lack of innovation culture could be one of the principal reasons for India’s poor performance. This hypothesis is tested by conducing primary survey in one of the more dynamic textile cluster in Northern India namely, Surat and adjoining areas. Our findings do indicate lack of product as well as organisational innovation culture in this region, which may be a serious bottleneck in competitive export market. We do find that firms score well in respect of marketing innovation which probably suggests that competitive pressure has increased due to the globalization of the economy. Firms are also found to be keen in respect of process innovation to reduce cost in the aftermath of increased pace of competition in the sector.
    Keywords: Textile industry, Surat, Innovation, Survey
    JEL: L67
    Date: 2016–03–30
  20. By: Kristkova, Z. Smeets; Gardebroek, K.; van Dijk, M.; van Meijl, H.
    Abstract: The understanding of the drivers of technological progress and their impact on food security is still limited. The paper contributes to the lacking empirical evidence on the speed of technical change affecting various sectors and production factors differently, which leads to contradicting projections of food demand in the global ex-ante assessment models. The aim of the paper is to quantify endogenous factor-augmenting technical change driven by R&D investments in a panel of 13 OECD countries over 1987-2006. A CES framework with cost minimization behavior was chosen to derive the system of equations that were estimated by GMM system estimator. Statistically significant effects of domestic and foreign manufacturing R&D were found on labor-augmenting technical change in manufacturing, agriculture, transport and retail sector. The results of this study provide a starting point for incorporating endogenous factor-biased technical change in impact assessment models aimed at policy analysis of food security.
    Keywords: factor-biased technical change, R&D, CES function, production sectors, GMM regression., Research and Development/Tech Change/Emerging Technologies, C3, O3, Q16,
    Date: 2015–08
  21. By: Hattori, Masahiko; Tanaka, Yasuhito
    Abstract: Economic growth requires that firms adopt new technologies. However, it may be insufficient in less competitive industries from the social welfare point of view. In this case, a government subsidy is necessary. We present an analysis of firms' adoption of new technology and government subsidization policy in a Stackelberg duopoly with differentiated goods. The technology itself is free, but each firm must expend a fixed set-up cost, such as training employees. There are several cases related to optimal policies depending on the set-up costs and whether the goods are substitutes or complements. In particular, there are two cases. (1) Social welfare is maximized when only the Stackelberg leader adopts the new technology, but no firm adopts the new technology without a subsidy. Then, the government should subsidize only the leader, which is a discriminatory policy. (Case 5 of Theorem 1 and Case 3-(1)-ii of Theorem 2) (2) Social welfare is maximized when both firms adopt the new technology, but only the leader adopts the new technology without a subsidy. Then, the government should subsidize only the follower. This policy is not discriminatory because adoption is the dominant strategy for the leader. (Case 2 of Theorem 1)
    Keywords: Stackelberg duopoly \and adoption of new technology \and subsidization \and sub-game perfect equilibrium
    JEL: D43
    Date: 2016–05–02
  22. By: Marcos Vergara; Claudio Bonilla; Jean P. Sepúlveda (School of Business and Economics, Universidad del Desarrollo)
    Keywords: Double-sided moral hazard, Venture Capital, Equity Share
    Date: 2016–04
  23. By: IIZUKA Toshiaki; UCHIDA Gyo
    Abstract: In many medical care markets with limited profit potential, firms often have little incentive to innovate. These include the markets for rare diseases, "neglected" tropical diseases, and personalized medicine. Governments and not-for-profit organizations attempt to promote innovation in such markets, but empirical evidence on the policy effect is limited. We study this issue by analyzing the impact of a demand-side policy in Japan, which reduces the cost sharing of patients with some rare and intractable diseases and attempts to establish and promote the treatment of those diseases. Using clinical trials data taken from public registries, we identify the effect of the policy using a difference-in-difference approach. We exploit the institutional detail that the diseases covered by the policy increased in an arbitrary fashion over time. We find that the demand-side policy increased firms' incentive to innovate: firm-sponsored new clinical trials increased by as much as 181% when covered by the policy. This result indicates that the demand-side policy can be an important part of innovation policies in markets with limited profit potential.
    Date: 2016–03
  24. By: Secco, Laura; Abatangelo, Chiara; Pisani, Elena; Gallo, Diego; Pettenella, Davide; Gatto, Paola; Dare, Riccardo; Vidale, Enrico
    Keywords: Agricultural and Food Policy,
    Date: 2015–06
  25. By: Adriana Abarca Montero; Jorge Espinoza Benavides; Vesna Mandakovic; Patricio Rojas Quezada; Claudia Yáñez Valdés (School of Business and Economics, Universidad del Desarrollo)
    Keywords: GEM, Entrepreneurship, Concepción (Chile)
    Date: 2016
  26. By: Valdivia, Corinne; Kengo, Milton; Jimenez, Elizabeth; Turin, Cecilia
    Abstract: People in rural communities negotiate the effects of a changing climate, of markets and other events that affect their livelihoods. These contexts are often uncertain and risky, and the decision makers are vulnerable. This presentation shares experiences with rural communities in the Andes, and in Kenya, using a similar framework, to create information that is relevant to local decision makers, through a process that builds trust, by connecting local and scientific knowledge. One experience focuses on translational research for information on innovations, while the second focuses on community processes to understand sources of vulnerability and potential practices that contribute to adaptation and resilience. Participatory research approaches aim to build human, social and political capitals while producing salient information for local decision makers. These cases used techniques that acknowledge potential gender, ethnicity, life cycle, and vulnerability status. The cases are set up to compare outcomes across landscapes shaped by agroecological conditions, markets, and policies.
    Keywords: Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies,
    Date: 2015
  27. By: Brad J. Hershbein (W.E. Upjohn Institute for Employment Research); Lisa B. Kahn (Yale University)
    Abstract: Routine-biased technological change (RBTC), whereby routine-task jobs are replaced by machines and overseas labor, shifts demand towards high- and low-skill jobs, resulting in job polarization of the U.S. labor market. We test whether recessions accelerate this process. In doing so we establish a new fact about the demand for skill over the business cycle. Using a new database containing the near-universe of electronic job vacancies that span the Great Recession, we find evidence of upskilling—firms demanding more-skilled workers when local employment growth is slower. We find that upskilling is sizable in magnitude and largely due to changes in skill requirements within firm-occupation cells. We argue that upskilling is driven primarily by firm restructuring of production towards more-skilled workers. We show that 1) skill demand remains elevated after local economies recover from the Great Recession, driven primarily by the same firms that upskilled early in the recovery; 2) among publicly traded firms in our data, those that upskill more also increase capital stock by more over the same time period; and 3) upskilling is concentrated within routine-task occupations -- those most vulnerable to RBTC. Our result is unlikely to be driven by firms opportunistically seeking to hire more-skilled workers in a slack labor market, and we rule out other cyclical explanations. We thus present the first direct evidence that the Great Recession precipitated new technological adoption.
    Keywords: Job polarization, job postings, RBTC, recessions, routine-biased technological change, upskilling, vacancies
    JEL: D22 E32 J23 J24 M51 O33
    Date: 2016–03
  28. By: Vera Rocha (Copenhagen Business School, Denmark); Mirjam van Praag (Copenhagen Business School, Denmark); Timothy B. Folta (University of Connecticut, United States); Anabela Carneiro (University of Porto, Portugal)
    Abstract: The founder (team)’s human capital is a vital determinant of future firm performance. This is a stylized fact. Less is known about the effect of the human capital of the initial workforce hired by the founder(s). We study the performance consequences of a founder’s choice of the initial workforce’s human capital (quantity and quality), besides the human capital of the founder(s). The analysis is based on matched employer-employee data and covers about 5,300 startups in manufacturing industries founded by individuals coming from employment between 1992 and 2007. We acknowledge that initial hiring decisions are endogenous and correlated with the human capital of the founders and the ownership structure of startups (single founder versus team of founders). Given the stickiness of initial choices, human capital decisions at entry turn out to be a close to irreversible matter with significant implications for post-entry survival and growth of the firm.
    Keywords: Human capital; entrepreneurship; startups; firm performance
    JEL: J24 L26 M13
    Date: 2016–04–22
  29. By: Rammer, Christian; Peters, Bettina
    Abstract: Der Beitrag untersucht, inwieweit hinter der oft konstatierten Investitionsschwäche der europäischen Wirtschaft eine Strukturverschiebung von materiellen zu immateriellen Investitionen steht. Da letztere nur zum Teil unter den Investitionsbegriff der Volkswirtschaftlichen Gesamtrechnung fallen, könnte der beobachtbare Rückgang der Investitionsquote nur ein scheinbarer sein, da ihm steigende Ausgaben für die Bildung von immateriellem Kapital wie z.B. unternehmerischen Kompetenzen (u.a. Markenwerte, Humanund Organisationskapital) oder anderen Formen nichttechnischen neuen Wissens gegenüberstehen. Auf Basis von Daten der gewerblichen Wirtschaft Deutschlands zeigen wir zum einen, dass in der Tat Ausgaben für immaterielle Kapitalgüter im vergangenen Jahrzehnt deutlich stärker angestiegen sind als die Investitionen für Sachkapital. Zweitens belegen mikroökonometrische Panelanalysen, dass diese Investitionen höhere Produktivitätsbeiträge leisten als Sachkapitalinvestitionen und somit für die Wettbewerbsfähigkeit der Unternehmen immer wichtiger werden. Die Wirtschaftspolitik sollte daher die steuerlichen und finanziellen Rahmenbedingungen für immaterielle Investitionen verbessern.
    JEL: O31 L22 G31
    Date: 2016
  30. By: Jean Paul Simon
    Abstract: Technology companies with high market capitalisation (often called unicorns) have been receiving a lot of attention and media coverage recently. In general, unicorns are IT-centric (software mostly, but also hardware). They are often rather young global companies that match unsatisfied demand with supply through the production (which can easily be scaled up) of innovative and usually affordable services and products. These are usually part of the mobile internet wave, and rely on connectivity (high speed networks, mobile and fixed), new devices (smartphones, tablets, phablets…) and the opportunities these bring. They are grounded in network effects, and demand-side economies of scale and scope. They depend on a strong favourable business environment, developing organically and building on fast expanding markets (emerging economies, middle classes). They are Venture Capital-dependent and the competition for funding can generate impressive (i.e. inflated) valuations. These companies can be disruptive for other sectors and firms. This report aims to document the phenomenon by investigating a qualitative sample of 30 companies that have recently been valued above the one billion dollar threshold. It identifies some of their characteristics and the lessons to be learnt. The report has two parts: Part I contains the overall findings of the investigation and some suggestions for policy makers. Part II contains a detailed account of the case studies on which the investigation is based. They are published as separate documents
    Keywords: IT industry, technology, innovation, market capitalisation
    JEL: L00 L1 L2 L8 O3
    Date: 2016–04
  31. By: Carsten Helm (University of Oldenburg, Department of Economics); Mathias Mier (University of Oldenburg, Department of Economics)
    Abstract: When the supply of intermittent renewable energies like wind and solar is high, the electricity price is low. Conversely, prices are high when their supply is low. This reduces the profit potential in renewable energies and, therefore, incentives to invest in renewable capacities. Nevertheless, we show that perfect competition and dynamic pricing lead to efficient choices of renewable and fossil capacities, provided that external costs of fossils are internalized by an appropriate tax. We also investigate some properties of electricity markets with intermittent renewables and examine the market diffusion of renewables as their capacity costs fall. We show that the intermittency of renewables causes an S-shaped diffusion pattern, implying that a rapid build-up of capacities is followed by a stage of substantially slower development. While this pattern is well known from the innovation literature, the mechanism is new. Moreover, the S-shaped pattern is followed by another acceleration phase towards the end of the diffusion process. We also find that technology improvements such as better storage capabilities have substantial effects not only on the speed of market penetration, but also on its pattern. Finally, fluctuations of energy prices rise with the share of renewables. If regulators respond with a price cap, this leads to a faster market diffusion of renewables.
    Keywords: renewable energies, peak-load pricing, intermittent energy sources, technology diffusion, price caps, energy transition
    Date: 2016–04
  32. By: Schneider, Gregor; Breßler, Julia
    Abstract: Vor dem Hintergrund eines zwölfdimensionalen Konstrukts zur Operationalisierung von Innovationsfähigkeit des Wuppertaler Instituts für Klima, Umwelt und Energie wird in diesem Working Paper eine Untersuchung dargestellt, wie sich der Zusammenhang von organisationaler Lernfähigkeit und Innovativität empirisch aufzeigen lässt. Dazu wurden in einer Literaturstudie aus über 2000 wissenschaftlichen Beiträgen relevante Studien identifiziert und analysiert.
    Abstract: Against the background of a multi-dimensional construct for operationalization of innovativeness an investigation of this relationship is shown in this Working Paper. We have identified and analyzed studies of over 2000 scientific papers.
    Date: 2016
  33. By: Nwigwe, Cecilia; Okoruwa, Victor; Obi-Egbedi, Oghenerueme
    Abstract: The present study analysed the technical efficiency and technological gaps (TGR/MTR) in three major beef cattle production systems in Nigeria, using the stochastic metafrontier approach. The usual methods of dealing with technological differences makes it difficult to separate “technology gaps” from technical inefficiency within a given system, hence the need for an analytical framework such as metafrontier which allows us to distinguish between the two. Results show that technical inefficiency exists in the three production systems but the ranching system is more efficient, in that it has a higher MTR. The average pooled technical efficiency TE with respect to the metafrontier was estimated to be 0.56; this suggests that there is scope to improve beef output in Nigeria by up to 44% of the total potential, giving existing technologies and inputs.
    Keywords: Beef cattle, production systems, technical efficiency, technological gap ratios, Nigeria, Livestock Production/Industries, Production Economics, C1, C8, C42, C50,
    Date: 2015–12
  34. By: Michael Fritsch; Alina Sorgner; Michael Wyrwich; Evguenii Zazdravnykh
    Abstract: This paper investigates the persistence of entrepreneurship in the region of Kaliningrad between 1925 and 2010. During this time period the area experienced a number of extremely disruptive shocks including; devastation caused by World War II, a nearly complete replacement of the native German population by Soviets, and 45 years under an antientrepreneurial socialist economic regime followed by a shock-type transition to a market economy. Nevertheless, we find a surprisingly high level of persistence of industry-specific self-employment rates in the districts of the Kaliningrad region. Our analysis suggests that persistence of entrepreneurship is higher in regions with a history of successful entrepreneurship. That is, in regions where a specific industry was particularly efficient and entrepreneurial activity was especially pronounced.
    Keywords: Entrepreneurship, regional culture, persistence
    JEL: L26 N94 P25 P5
    Date: 2016–04
  35. By: Gerasim A. Mkrtychyan (National Research University Higher School of Economics)
    Abstract: This paper introduces an original methodology for assessing the organizational culture of an entrepreneurial university. Methods for the assessment of values in research activity and of resistance to organizational change have been developed. The study of values and characteristics of resistance to change was conducted on the academic staff of the faculties of Economics and Management at the Nizhny Novgorod campus of the Higher School of Economics. It was found that the campus professors' academic orientation in research activity dominates their entrepreneurial orientation and that the strength of this influence differs amongst them, depending on their values. Additionally, greatest resistance in professors is caused by changes in human resources policy and management; this resistance is of moderate intensity and passive. The study confirms a positive relationship between the academic orientation of the "motivation" and "reward" values and the intensity of resistance to change in personnel policy and management.
    Keywords: entrepreneurial university, organizational culture, academic values, entrepreneurial values, resistance to change.
    JEL: M14
    Date: 2016

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