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on Innovation |
| By: | Berulava, George; Gogokhia, Teimuraz |
| Abstract: | This paper explores the existing interrelationships between the firm’s innovation activities and productivity performance as well as studies complementarities among innovation strategies in transition economies. Specifically, on the basis of BEEPS V dataset and using extended CDM model, we have investigated the existence of possible complementarities between various types of innovation modes (product, process, marketing and organizational innovations) in their impact on the firm’s productivity. The traditional CDM framework was modified through accounting for the simultaneous occurrence of different types of innovation inputs - in-house and out-house knowledge generation activities - and through the estimation of their joint effects on various modes of innovation. In compliance with the results of previous studies, we find that CDM model properly describes the existing interrelations between the firm’s innovation activity and its productivity performance in transition economies. In particular, our results show that the firm’s decisions on in-house and out-house knowledge development processes are interdependent. The study results suggest that implementation of internal R&D strategy can stimulate not only technological innovations but non-technological innovative activity as well. However, we find that external knowledge acquisition strategy has positive and statistically significant effect on innovation output only when the firm’s innovation mix incorporates non-technological novelties. Our results show that only those modes of innovation output combinations that assume all the types of innovations and/or the combination of process and non-technological innovations have positive and statistically significant impact on the firm’s productivity. Another vital point of this analysis is that conducting either product or process innovation in isolation will result in a negative productivity performance. The important contribution of this paper is that it tests for complementarity between innovation strategies of firms in transition economies. Our tests reveal complementarity between the following two combinations of innovations: product/process and process/non-technological innovations. The key policy implication of our findings is that while performing all the three innovation modes jointly has a positive impact on firm’s performance, economically preferred options are: either to choose pure technological innovation strategy (product&process mode) or to perform strategy focused on organizational restructuring (process/non-technological mode). |
| Keywords: | R&D, external knowledge acquisition, innovation, productivity, CDM model, complementarity, transition economies |
| JEL: | C12 L25 O12 O31 P31 |
| Date: | 2016–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71277&r=ino |
| By: | Maurizio Baussola (DISCE, Università Cattolica); Eleonora Bartoloni (ISTAT, Regional Office for Lombardy) |
| Abstract: | Complementarities between technological and non-technological innovation are crucial determinants of firm performance. This topic has not received the attention that it merits, as the focus has been primarily placed on technological innovation alone or on innovation efforts as measured by R&D or patent activities. The capacities to develop market-oriented behaviour and introduce new organisational innovations are the drivers - together with technological innovation - of a firm's productivity and profitability. We also underline how the impact of such activities is larger when they persist over time, thus introducing a more general concept of innovation persistency. We present an empirical model based on a large and new panel of Italian manufacturing firms covering the period 2000-2012 that enables us to derive the precise impacts of a firm's innovative effort - based on a broad definition that incorporates non-technological innovation and persistence - on its productivity and profitability. |
| Keywords: | Technological and non-technological innovation, Complementarities, European Community Innovation Survey, Profitability, Productivity, Unbalanced panel data |
| JEL: | L25 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:ctc:serie2:dises1613&r=ino |
| By: | Czarnitzki, Dirk; Doherr, Thorsten; Hussinger, Katrin; Schliessler, Paula; Toole, Andrew A. |
| Abstract: | We use an exogenous change in German Federal law to examine how entrepreneurial support and the ownership of patent rights influence academic entrepreneurship. In 2002, the German Federal Government enacted a major reform called Knowledge Creates Markets that set up new infrastructure to facilitate university-industry technology transfer and shifted the ownership of patent rights from university researchers to their universities. Based on a novel researcher-level panel database that includes a control group not affected by the policy change, we find no evidence that the new infrastructure resulted in an increase in start-up companies by university researchers. The shift in patent rights may have strengthened the relationship between patents on university-discovered inventions and university start-ups; however, it substantially decreased the volume of patents with the largest decrease taking place in faculty-firm patenting relationships. |
| Keywords: | intellectual property,patents,technology transfer,policy evaluation |
| JEL: | O34 O38 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16036&r=ino |
| By: | Rehman, Naqeeb Ur |
| Abstract: | This aim of this empirical paper is to investigate the self-selection and learning-by-exporting hypotheses. This study addresses the reverse causality between innovation, productivity and exporting using micro level data on 29 countries from Eurasia and Central and Eastern Europe (CEE). CDM estimation results suggest that innovation and productivity positively influence the firm’s exporting and vice versa. This study has supported the self-selection and learning-by-exporting hypotheses. Previous studies provided mixed outcome on the analysis of these two major hypotheses. Similarly, innovation by exporting is examined using multiple proxies of innovation such as product/process innovation, R&D and organizational innovation. Findings imply that innovation is an important determinant of firms’ exporting and this outcome is robust across Eurasian and CEE firms. Moreover, foreign owned firms are more likely to export and innovate than domestic firms due to their technological superiority over domestic firms. Concerning policy implications, economic policies should address the firm’s innovation, productivity and exporting performance. This would result in better economic integration between Eurasian and CEE firms. By removing the firm’s barriers such as access to finance, trade regulations and taxation etc would encourage trade networks between Eurasian and CEE firms. |
| Keywords: | Innovation, productivity and Exporting. |
| JEL: | F6 O3 |
| Date: | 2016–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:71480&r=ino |
| By: | Fei Yu (Tsinghua University, Beijing, China); Yanrui Wu (Business School, University of Western Australia) |
| Abstract: | Empirical analysis of matched patent application data in the world’s major patent offices has shown considerable variation in patent granting probability and examination duration across different countries. This phenomenon is attributed to institutional misclassifications or patent examiners’ mistakes by some authors. Others argued that cross-country heterogeneity could also be caused by deliberate manipulation of patent examination procedures with the goal to foster native inventors through oppressing foreign patent applicants. To explore whether manipulation exists, this study presents a case study of pharmaceutical patents granted by the US patent office and approved by the US FDA. Especially it focuses on the filing behavior of pharmaceutical companies in Korea, Japan and China. The regression results show that the granting ratio of the previous applications of a foreign company is correlated with the company’s probability of lodging a new patent application, which provides a supplementary evidence of the existence of the manipulated patent examination procedures. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:16-06&r=ino |
| By: | Grillitsch, Markus (CIRCLE, Lund University); Schubert, Torben (CIRCLE, Lund University); Srholec, Martin (CIRCLE, Lund University) |
| Abstract: | The link between knowledge and firm growth has been a core topic in economics of innovation for a long time. However, despite strong theoretical arguments, empirical evidence remains inconclusive. One important reason for this conundrum may be the failure of standard indicators to comprehensively capture firm innovation activities. We contribute to overcoming this limitation by zooming in on the knowledge processes that drive variegated forms of innovation and aim thereby to establish a solid relationship with firm growth. The paper draws on the differentiated knowledge base approach, distinguishing between analytical, synthetic, and symbolic knowledge, and measures these types of knowledge with detailed longitudinal linked-employer-employee micro data from Sweden. Econometric findings indicate positive relationships between the three knowledge types, in particular combinations thereof, and firm growth. These relationships remain robust in a wide range of models. Our analysis therefore suggests that the seemingly weak relationship between firm growth and innovation may be explained by the narrow measurement concepts that have dominated in this literature so far. |
| Keywords: | Knowledge; innovation; firm growth; micro data; Sweden |
| JEL: | C33 D22 O12 O32 O33 |
| Date: | 2016–04–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_013&r=ino |
| By: | Sandra M. Leitner (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Abstract Due to information asymmetries between the debtor and potential outside investors, entrepreneurs often face sizeable and insurmountable financing constraints. This is a strong deterrent to either starting new or continuing already ongoing innovation projects which not only stymies entrepreneurs’ own future innovation potentials and growth prospects but also severely harms growth potentials of whole economies, making catching-up an unnecessarily long and arduous process. Against this backdrop, the analysis sheds light on the effects of prevailing credit constraints on different innovation strategies (i.e. R&D-based make versus M&E-based buy strategies) of establishments in Central, East and Southeast Europe (CESEE) and the Former Soviet Union (FSU) during three different economic phases. The results point to the detrimental effect of credit constraints which is particularly strong and consistent for the M&E-based ‘buy innovation strategy’ which dominates in the region, but less pronounced and relevant for the less prevalent R&D-based ‘make innovation strategy’. Furthermore, the analysis identifies firm characteristics that are conducive to innovative activities and demonstrates that establishment size, age, the particular international trading status, ownership status as well as whether subsidies were received are important determinants of different innovation strategies. |
| Keywords: | credit constraints, R&D-based and M&E-based innovation strategies, Central, East and Southeast Europe, Former Soviet Union |
| JEL: | G21 O16 O31 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:125&r=ino |
| By: | Anadon, Laura Diaz; Baker, Erin; Bosetti, Valentina; Reis, Lara Aleluia |
| Abstract: | Mitigating climate change will require innovation in energy technologies. Policy makers are faced with the question of how to promote this innovation, and whether to focus on a few technologies or to spread their bets. We present results on the extent to which public R&D might shape the future cost of energy technologies by 2030. We bring together three major expert elicitation efforts carried out by researchers at UMass Amherst, Harvard, and FEEM, covering nuclear, solar, Carbon Capture and Storage (CCS), bioelectricity, and biofuels. The results show experts believe that there will be decreasing returns to R&D and report median cost reductions around 20% for most of the technologies at the R&D budgets considered. Although the returns to solar and CCS R&D show some promise, the lack of consensus across studies, and the larger magnitude of the R&D investment involved in these technologies, calls for caution when defining what technologies would benefit the most from additional public R&D. Indeed, the wide divergence of opinions suggests that it is still too early to pick winners and that a broad portfolio of investments may be the best option. |
| Keywords: | R&D Investments, Energy Technology, Expert Elicitation, Risk and Reward, Low-carbon Innovation, Research and Development/Tech Change/Emerging Technologies, Q40, |
| Date: | 2016–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemmi:232924&r=ino |
| By: | Laura Diaz Anadon (Harvard Kennedy School and Harvard University); Erin Baker (University of Massachusetts); Valentina Bosetti (Bocconi University, Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici); Lara Aleluia Reis (Fondazione Eni Enrico Mattei and Centro Euro-Mediterraneo sui Cambiamenti Climatici) |
| Abstract: | Mitigating climate change will require innovation in energy technologies. Policy makers are faced with the question of how to promote this innovation, and whether to focus on a few technologies or to spread their bets. We present results on the extent to which public R&D might shape the future cost of energy technologies by 2030. We bring together three major expert elicitation efforts carried out by researchers at UMass Amherst, Harvard, and FEEM, covering nuclear, solar, Carbon Capture and Storage (CCS), bioelectricity, and biofuels. The results show experts believe that there will be decreasing returns to R&D and report median cost reductions around 20% for most of the technologies at the R&D budgets considered. Although the returns to solar and CCS R&D show some promise, the lack of consensus across studies, and the larger magnitude of the R&D investment involved in these technologies, calls for caution when defining what technologies would benefit the most from additional public R&D. Indeed, the wide divergence of opinions suggests that it is still too early to pick winners and that a broad portfolio of investments may be the best option. |
| Keywords: | R&D Investments, Energy Technology, Expert Elicitation, Risk and Reward, Low-carbon Innovation |
| JEL: | Q40 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.22&r=ino |
| By: | Gundars Kulikovskis (FIDEA (Financial and Management Consulting Company)); Diana Petraityte (FIDEA (Financial and Management Consulting Company)); Stamenov Blagoy (European Commission – JRC - IPTS) |
| Abstract: | The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | R&I system, R&I policy, ERA, innovation union, Semester analysis, Latvia |
| JEL: | I20 O30 Z18 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101203&r=ino |
| By: | Ruttas-Küttim Ruuta (Independent Consultant); Stamenov Blagoy (European Commission – JRC - IPTS) |
| Abstract: | The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | R&I system, R&I policy, ERA, innovation union, Semester analysis, Estonia |
| JEL: | I20 O30 Z18 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101180&r=ino |
| By: | Elisabetta Marinelli (European Commission – JRC - IPTS); Susana Elena Pérez (European Commission – JRC - IPTS); Josep Alias (ACUP (Catalan Association of Public Universities)) |
| Abstract: | Regional Smart Specialisation Strategies (RIS3) are aimed at developing nation-al/regional competitive advantages following a vertical prioritisation logic based on the bottom-up identification of a limited set of priorities where regions believe they have potential to obtain a comparative advantage. Priorities are identified and pursued through the interaction of stakeholders across the quadruple helix of government, industry, academia and society at large. This is because entrepreneurial knowledge is most often distributed across a regional system. This cyclical and recursive process of identification and prioritisation is referred to as an Entrepreneurial Discovery Process (EDP). In this context, universities and regions have a unique opportunity to form partnerships, together with the business sector, to maximise the use of European Structural and Investment Funds (ESIF), and particularly the European Regional Development Fund (ERDF), hence contributing to the local knowledge-based development. Although universities are placed in a good position to contribute significantly to the process of local development, it is difficult to evaluate whether and how such potential can be untapped (Kempton et al., 2013). This report, which is based on collaboration between the JRC-IPTS and the Catalan Association of Public Universities (ACUP), contributes to this debate by exploring universities’ role within RIS3 in the case of Catalonia. The paper first assesses the role of universities in the overall design and implementation of the Catalan RIS3 and EDP, and then goes in depth into one of its key instruments, namely the RIS3CAT Communities. Catalonia’s Smart Specialization Strategy (RIS3CAT) lays the framework under which the Government of Catalonia carries out RDI (Research Development and Innovation) policies in the current programming period (2014-2020) and supports the generation and development of innovative projects aiming to further develop the region. RIS3CAT establishes that the sectors defined as strategic for Catalonia are structured into RIS3CAT Communities. Each community is expected to carry out initiatives to facilitate collaboration among sectorial stakeholders, to improve competitiveness and to generate solutions to society’s changing needs. These communities will be one of the key tools through which universities and other stakeholders in strategic sectors are able to apply for ERDF-funded grants. The case of Catalonia is particularly interesting as the region is home to several public universities displaying remarkable differences in terms of size, scientific specialisation and relationship to the territory. In this respect Catalonia provides the opportunity to test how different types of Higher Education Institutions (HEIs) can respond to the RIS3. |
| Keywords: | universities, smart specialisation strategies, instruments |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101214&r=ino |
| By: | Halme Kimmo (Ramboll Management Consulting); Veli-Pekka Saarnivaara (Vpsolution); Jessica Mitchell (European Commission – JRC - IPTS) |
| Abstract: | The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | R&I system, R&I policy, ERA, innovation union, Semester analysis, Finland |
| JEL: | I20 O30 Z18 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101190&r=ino |
| By: | Tsipouri Lena (National and Kapodistrian University of Athens); Athanasopoulou Sophia (National and Kapodistrian University of Athens); Gampfer Robert (European Commission – JRC - IPTS) |
| Abstract: | The 2015 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | R&I system, R&I policy, ERA, innovation union, Semester analysis, Greece |
| JEL: | I20 O30 Z18 |
| Date: | 2016–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc101186&r=ino |
| By: | GUSEV Vladimir; : MALIY Vadim (Russian Presidential Academy of National Economy and Public Administration- Stolypin Volga Region Institute of administration) |
| Abstract: | The article presents a comparative analysis of Soviet and modern Russian innovative projects on various grounds, said the reasons for the success of the strategic defense of innovations during the Soviet period and the modest achievements of modern innovative institutions of the Russian Federation and development in them. Also it addresses the issue of the loss in recent decades innovations of the Soviet period and referred to the need to revive the Soviet experience in this area. Summing up, we note that the innovative activity in the Russian Federation, contrary to all the negative factors developing, the success of this work depends largely on whether the return of modern Russia to the innovative practices of the Soviet Union, when new inventions and technical solutions will work on the domestic economy, or our country will continue to remain a raw materials appendage of the global economy, "peripheral Empire", in the words of famous sociologist Boris Kagarlitsky, and the innovative developments and the financial resources allocated for them to be stolen, to leave in more developed countries, to make a profit more enterprising business executives and return to us in the form of finished products under well-known global brands. |
| Keywords: | innovative project, legislation, invention, equipment, corruption, the theory of "Triple Helix" |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:ppaper:m16g&r=ino |
| By: | Gratiela Boca (Department of Economics and Physics, Technical University of Cluj Napoca) |
| Abstract: | Innovation has become the industrial religion of the late 20th century. Business sees it as the key to increasing profits and market share. Governments automatically reach for it when trying to fix the economy. Around the world, the rhetoric of innovation has replaced the post-war language of welfare economics. Innovation: nothing new? Recent years have seen much focus on how innovation can lead to improvements in productivity assisting in economic development The article present the big difference between making culture in a particular field and practicing it. Innovation is the instrument of entrepreneurship. It invests resources with a new capacity to produce prosperity. |
| Keywords: | cost, open innovation, quality, product life cycle. quality, cross culture, management change |
| Date: | 2014–06 |
| URL: | http://d.repec.org/n?u=RePEc:clj:icmmae:1407&r=ino |
| By: | Margherita Russo; Paolo Silvestri; Giovanni Bonifati; Elisabetta Gualandri; Francesco Pagliacci; Anna Francesca Pattaro; Alessia Pedrazzol1; Silvia Pergetti; Marco Ranuzzini; Manuel Reverberi; Giovanni Solinas; Paola Vezzani |
| Abstract: | The 2012 earthquake in Emilia-Romagna (Italy) has shaken up the collective understanding on the socioeconomic importance of a vast territory that generates almost 2% of Italian GDP. The area affected by the earthquake is characterized by the presence of important industrial and agricultural districts, and by good practices of local governance that are internationally renowned. Private and public buildings, factories, offices and retail shops, historical and cultural heritage sites have been severely damaged. Not only, but it set in motion transformations in the socio-economic system that might have unexpected consequences and that undermine the quick recovery of the local system: different agents, at different levels, taking individual and collective decisions, generate a cascade of changes that interact with its evolution path. Indeed, earthquakes pose challenges, but provide unprecedented opportunities: strategic decisions by economic and political agents, newly available financial resources, coordination or lack of coordination among main stakeholders, and so on. The following paper provides an overview of the first results of Energie Sisma Emilia research project: it aims at collecting and disseminating relevant knowledge and evidence in order to design policies. In particular, it identifies the agents propelling innovation processes, and analyses their strategies in ever-changing environment. The paper starts with a socio-economic analysis of the area struck by the earthquake, followed by the results of three of the focus groups conducted. Eventually, it illustrates a specific innovation: the introduction and implementation of the digital infrastructure “Mude”. |
| Keywords: | earthquake and its socio-economic effects; innovation and complex systems dynamics |
| JEL: | O14 O35 Q54 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:mod:cappmo:0137&r=ino |
| By: | Hussain, Safdar; Ahmed, Wasim; Rabnawaz, Ambar; Jafar, Rana Muhammad Sohail; Akhtar, Haseeb; JianZhou, Yang |
| Abstract: | Fujian and Taiwan has shared a strong cross-strait agricultural relation, and the government is keen to further strengthen the trade between the two. There has been substantial growth in the Fujian trade with Taiwan in agricultural goods that has increased more than $ 2.7 billion in 2013 for a year-on-year growth of 70%. This study adopted secondary data collection method to obtain information for the research. The research was mainly qualitative to acquire in-depth information on the matter under study. The findings showed that with the help of e-commerce both Fujian and Taiwan have been benefited with low transaction costs and efficient supply chain management to ensure effective trade. |
| Keywords: | Supply Chain Management, Agriculture, E-Commerce, Trade |
| JEL: | O3 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70381&r=ino |
| By: | Cozza, Claudio (University of Trieste); Perani, Giulio (ISTAT & Eurostat); Zanfei, Antonello (University of Urbino) |
| Abstract: | Using data on R&D investors active in Italy and controlling for various indicators of absorptive capacity and for the regional distribution of research activities, we show that multinationality is associated with a higher propensity to technical linkage creation. We also find that domestic owned multinationals are more inclined to R&D contracting out, while foreign multinationals are better at developing R&D cooperation with external parties. However, foreign multinationals are less prone than domestic companies to set up linkages with local counterparts. This suggests that while foreign multinationals generally possess advantages in terms of absorptive capacity and economies of common governance, they might as well face relative disadvantages in terms of experience of local contexts, inhibiting their propensity to set up on-site technical linkages. |
| Keywords: | Absorptive capacity; R&D; technical linkages; Multinationals |
| JEL: | F10 F23 O33 |
| Date: | 2016–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_014&r=ino |
| By: | Bugge, Markus (NIFU); Coenen, Lars (CIRCLE, Lund University); Marques, Pedro (School of Geography and Planning, Cardiff University); Morgan, Kevin (School of Geography and Planning, Cardiff University) |
| Abstract: | The aim of this paper is to identify and understand differences and similarities in system innovation policy by comparing state responses to assisted living in two contrasting national systems of care, namely that of the UK and Norway. To do so the paper draws on a number of new theoretical perspectives - including social innovation, socio-technical transitions and embedded state theory – to analyze place-based approaches to experimenting with new solutions and services in respective countries and the way in which different systems of national care lead to significantly different processes and outcomes in the area of ageing. |
| Keywords: | social innovation; system innovation; strategic niche management; health care |
| JEL: | I18 O31 |
| Date: | 2016–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lucirc:2016_016&r=ino |
| By: | Emily Ehrlich; Andrea Wysocki; KeriAnn Wells; Boyd Gilman; Greg Peterson; Catherine DesRoches; Sandi Nelson; Laura Blue; Keith Kranker; Kate Stewart; Frank Yoon; Jelena Zurovac; Lorenzo Moreno |
| Abstract: | Individual program summaries. |
| Keywords: | Primary Care Redesign, Implementation Evaluation, Impact Evaluation, Delivery Systems Innovation, Clinician Behavior, Workforce Development, Medicare, Medicaid |
| JEL: | I |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:0fa49fdc81094967a57d614d8bcad002&r=ino |
| By: | Katherine Hunt |
| Keywords: | Innovation, Policy, Microfinance, Microfinance Innovation, Microfinance Policy |
| JEL: | G21 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:gri:fpaper:finance:201604&r=ino |
| By: | L. Lambertini |
| Abstract: | The optimal design of two-part tariffs is investigated in a dynamic model where two firms belonging to the same supply chain invest in R&D activities to increase the quality of the final product. It is shown that the replication of the vertically integrated monopolist’s performance can be attained using a TPT in which the fee is a linear function of either the upstream R&D effort or product quality itself. The possibility of relying on R&D figures appearing in the upstream firm’s balance sheet is desirable as quality enhancement might not be observable or verifiable. |
| JEL: | C73 L12 O31 |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:bol:bodewp:wp1054&r=ino |
| By: | Cumming, Douglas; Werth, Jochen Christian; Zhang, Yelin |
| Abstract: | We argue two alternative routes that lead entrepreneurial start-ups to acquisition outcomes instead of liquidation. On one hand, acquisitions can come about through the control route with external financers such as venture capitalists (VCs). VCs take control through their board seats along with other contractual rights that can bring about changes in a start-up necessary to successfully attract a strategic acquirer. Consistent with this view, we show that VCs often replace the founding entrepreneur as CEO long before an acquisition exit. On the other hand, acquisitions can come about through advice and support provided to the start-up, such as that provided by an incubator or technology park. Based on a sample of 251 Crunchbase companies in the U.S. over the years 2007 to 2014, we present evidence that is strongly consistent with these propositions. Further, we show that the data indicate a tension between VC-backing of start-ups resident in technology parks insofar as such start-ups are slower to become, and less likely to be, acquired. |
| Keywords: | Entrepreneurship,Entrepreneurial Finance,Governance,Technology Park,Incubator,Board of Directors,Venture Capital,Angel |
| JEL: | G23 G24 L26 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:135&r=ino |
| By: | William Lazonick (University of Massachusetts Lowell and The Academic-Industry Research Network.) |
| Abstract: | In Capitalism, Socialism, and Democracy, Joseph Schumpeter asserts: “perfect competition is not only impossible but inferior, and has no title to being set up as a model of ideal efficiency.†For neoclassical economists, the large corporation is a “market imperfection†that, compared with “perfect competition,†should result in higher product prices and lower industry output. Yet business history reveals the capability of the most productive enterprises to generate massive quantities of output at low costs to attain large market shares with buyers benefiting from low prices even as employees receive higher pay and shareholders ample dividends. By integrating the history of industrial development in Britain and the United States with the ideas of leading economic thinkers, this essay demonstrates the absurdity of perfect competition as the ideal of economic efficiency. Indeed, I show that, in their desire to make the market rather than the firm the main arbiter of resource allocation, neoclassical economists have enshrined the sweatshop as the foundation of their analysis, with profoundly negative consequences for understanding how a modern economy actually operates and performs. In doing so, neoclassical economists ignore not only the economic history of capitalism but also the intellectual history of their own discipline. I conduct a journey through two hundred years of economic thought – from Adam Smith’s The Wealth of Nations (1776) to Alfred Chandler’s The Visible Hand (1977) – to derive analytical foundations for a theory of innovative enterprise that can explain and explore firm-level sources of productivity growth in the economy. What then do more sophisticated theories of the firm rooted in the neoclassical tradition have to offer? In a section of this essay that I call (borrowing a phrase from Adolf Berle and Gardiner Means) “Economic Theory for ‘an Era of Corporate Plundering’,†I outline the shortcomings of Williamsonian transaction-cost theory and Jensenian agency theory for analyzing the role of the business corporation in the operation and performance of the economy. From the perspective of the theory of innovative enterprise, I demonstrate how the methodology of constrained optimization trivializes the business enterprise while the ideology that companies should be run to maximize shareholder value legitimizes financial predators, many senior corporate executives among them, in the looting of the industrial corporation. The “era of corporate plundering†since the mid-1980s has contributed to extreme concentration of income among the richest households and the erosion of middle-class employment opportunities. Finally, I call for a transformation of economic thinking so that the innovative enterprise is at the center of economic analysis. The theory of innovative enterprise exposes as costly intellectual failures “perfect competition†as the ideal of economic efficiency, “constrained-optimization†as the prime tool of economic analysis, and “maximizing shareholder value†as the ideology of superior corporate governance. The theory of innovative enterprise provides, moreover, a clear and compelling rationale for sharing the gains of business enterprise among stakeholders in the broader community, in conjunction with government policies that seek to support sustainable prosperity, characterized by stable and equitable economic growth. |
| JEL: | B10 B20 B41 D01 D23 D40 L2 O30 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:25&r=ino |