nep-ino New Economics Papers
on Innovation
Issue of 2016‒07‒02
28 papers chosen by
Uwe Cantner
University of Jena

  1. Measures of the Contribution made by ICT to Innovation Output. An Update of the ICT Innovation Output Indicator By Annarosa Pesole
  2. Innovation and University-Firm R&D Collaboration in the European Food and Drink Industry By Cristian Barra; Ornella Wanda Maietta; Roberto Zozzi
  3. RIO Country Report 2015: Italy By Leopoldo Nascia; Mario Pianta; Giovanni La Placa
  4. The effect of aspirations on agricultural innovations in rural Ethiopia By Daniel Ayalew Mekonnen; Nicolas Gerber
  5. Documentare e comunicare l'attività di trasferimento tecnologico. Analisi testuale della comunicazione dei poli di innovazione By Pasquale Pavone; Valentina Fiordelmondo; Margherita Russo
  6. Thanks, but no thanks: Companies’ response to R&D tax credits By Daniel Neicu; Stijn Kelchtermans; Peter Teirlinck
  7. Research, Modeling and Process Management Dissemination of Innovations in Socio-Economic Systems By Levin, Mark; Matrosova, K.
  8. Competition, Innovation, and the Number of Firms By Pedro Bento
  9. Trajectories in Knowledge Economy: Empirics from SSA and MENA countries By Asongu, Simplice; Andrés, Antonio R.
  10. RIO Country Report 2015: Portugal By Manuel Mira Godinho; Vitor Corado Simões; Jana Zifciakova
  11. The long-run impact of human capital on innovation and economic development in the regions of Europe By Claude Diebolt; Ralph Hippe
  12. The long-run impact of human capital on innovation and economic development in the regions of Europe. By Claude Diebolt; Ralph Hippe
  13. Catalyseurs et freins à l’innovation en santé au Québec By Nadia Benomar; Joanne Castonguay; Marie-Hélène Jobin; François Lespérance
  14. New Innovations in Payments By Marc Rysman; Scott Schuh
  15. Invention Quality and Entrepreneurial Earnings: The Role of Prior Employment Variety By Astebro, Thomas B; Yong, Kevyn
  16. Sequential Investment in Emerging Technologies under Policy Uncertainty By Sendstad, Lars Hegnes; Chronopoulos, Michail
  17. Academic Entrepreneurship: Bayh-Dole versus the 'Professor's Privilege' By Astebro , Thomas B; Braguinsky , Serguey; Braunerhjelm , Pontus; Broström , Anders
  18. Financial regimes, financialization patterns and industrial performances: preliminary remarks By Giovanni Dosi; Valerie Revest; Alessandro Sapio
  19. Green startups and local knowledge bases: Newborn suppliers of energy-related technologies in Italian Provinces By Colombelli, Alessandra; Quatraro, Francesco
  20. Entrepreneurship and the Business Cycle: Stylized Facts from U.S. Venture Capital Activity By Hashmat U. Khan; Pythagoras Petratos
  21. Economic growth and agricultural land conversion under uncertain productivity improvements in agriculture By Bruno Lanz; Simon Dietz; Timothy Swanson
  22. Firm-level environmentally sensitive productivity and innovation in China By Fujii, Hidemichi; Cao, Jing; Managi, Shunsuke
  23. Understanding Indonesian Smallholder Dairy Farmers’ Decision to Adopt Multiple Farm-Level Innovations By Akzar, Rida; Permani, Risti; Wahida; Umberger, Wendy
  24. Digital Convergence and Beyond: Innovation, Investment and Competition in Communication Policy and Regulation for the 21st Century By OECD
  26. Gendered Entrepreneurship Networks By Markussen, Simen; Røed, Knut
  28. Who is forked on GitHub? Collaboration among Open Source developers By Dorota Celińska

  1. By: Annarosa Pesole (European Commission – JRC - IPTS)
    Abstract: This report presents an update of the ICT Innovation Output Indicator based on the latest available data, and provides a measure of the performance of the European Union (EU) and its Member States in ICT innovation. The ICT Innovation Output Indicator is the contribution of Information and Communication Technologies (ICT) to the Innovation Output Indicator elaborated by the European Commission in 2013. The contribution of ICT has been computed for each underlying component of the Innovation Output Indicator for all EU Member States. Depending on the indicator component analysed and data availability, the ICT contribution to innovation can refer either to innovation in the ICT sector as defined by the classification of economic activities, or to ICT use as a general purpose technology in the rest of the economy. The up-to-date ICT contributions for the EU aggregate are: 1. 28% in technological innovation as measured by patents; 2. 19% in absorption of skills as measured by employment in knowledge intensive activities; 3. 27% in competitiveness of knowledge goods as measured by exports of medium-high tech goods; 4. 20% in competitiveness of knowledge services as measured by exports of knowledge intensive services; 5. 23% in innovative firms’ dynamics as measured by employment of innovative fast-growing firms. All data refer to 2013 with the exception of data on patents which refer to 2011. The methodology to compute the ICT Innovation Output Indicator follows the one presented in "How much does ICT contribute to innovation output? An analysis of the ICT component in the innovation output indicator" (Pesole, 2015 ). The reader is referred to this report for more detail on the methodology. The 2013 EU aggregate ICT contributions are very similar to those in 2012 reported by Pesole (2015). The technological innovation component (i.e. ICT PCT patent) increased by two percentage points in 2011 (from 26% to 28%). Similarly, competitiveness of knowledge goods increased from 25% to 27% in 2013. The other contributions remain unchanged. The ICT Innovation Output Indicator delivers a measure of output-oriented ICT innovation that captures both the technological and non-technological aspects of innovation in ICT and ranks Member States' performance. The three top performing countries remain the same as in Pesole 2015: Finland, Ireland and Sweden.
    Keywords: ICT innovation output indicator, measurement of ICT innovation
    Date: 2016–06
  2. By: Cristian Barra (Università di Salerno); Ornella Wanda Maietta (Università di Napoli Federico II and CSEF); Roberto Zozzi (Università di Salerno)
    Abstract: In National Innovation Systems (NIS), knowledge is generally understood to be produced and accumulated through an interactive innovation process that is embedded in a national context which in turn may help determine propensity for innovation. This paper aims to verify how product and process innovation in the European food and drink industry are affected by: i) NIS structure ii) NIS output in terms of WoS indexed publications and the supply of graduates iii) NIS fragmentation and coordination and iv) NIS scientific impact and specialisation. The main source of data on innovation by firms is the EU-EFIGE/Bruegel-UniCredit dataset. This is supplemented by information from the International Handbook of Universities, Eurostat and the bibliometric analysis of academic research output. The results obtained suggest that large research institutions in the public sector may well be detrimental to interaction between university and industry and that the indicators used for public research assessment are not necessarily the most appropriate proxies of local knowledge spillovers.
    Keywords: university–industry interaction, firm R&D collaboration, product and process innovation, academic research quality, university education
    JEL: O3 I23 D22 R1
    Date: 2016–06–18
  3. By: Leopoldo Nascia (Istituto Nazionale di Statistica (Rome, Italy)); Mario Pianta (Università degli Studi di Urbino "Carlo Bo" (Urbino, Italy)); Giovanni La Placa (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, Italy
    JEL: I20 O30 Z18
    Date: 2016–06
  4. By: Daniel Ayalew Mekonnen; Nicolas Gerber
    Abstract: This paper identifies the impacts of aspirations on the adoption of agricultural innovations in the context of rural Ethiopia. While most studies on agricultural innovations have focused on identifying observable and resource-related deprivations or 'external' constraints, a related stream of literature suggests that 'internal' constraints, such as the lack of aspirations, could reinforce external constraints and lead to self-sustaining poverty traps. Since both aspirations and the adoption of innovations are forward-looking, they are likely to be intimately linked. Aspirations are motivators that can enhance innovations or their adoption not only in their own right but also through their determinants, including self-efficacy, locus of control and other internal traits that may be unobserved. This implies that aspirations may affect innovations through multiple channels and hence may be endogenous. On the other hand, aspirations are also affected by a person's level of achievement, implying that aspirations and innovations are simultaneously determined. To identify the effect of aspirations on the adoption of agricultural innovations, we conducted both plot-level and household-level analysis using purposely collected data from households in rural Ethiopia. Using econometric strategies that account for the endogenous nature of aspirations, we found that a narrow or a very wide gap between aspirations and achievement in a farming household is strongly associated with low levels of innovativeness and low adoption rate of innovation products such as chemical fertilizers.
    JEL: D1 O1 Q1 Q12 Q16
    Date: 2016–05
  5. By: Pasquale Pavone; Valentina Fiordelmondo; Margherita Russo
    Abstract: There is an increasing attention on the needs to support SMEs in enhancing their innovation op-portunities and capabilities. Through a policy measure to foster the regional innovation system, 12 innovation poles were active in Tuscany in the period 2011-2014 to provide to their members (af-filiation is needed) a range of knowledge-intensive services such as knowledge and technology mapping, R&D partnership formation, technical assistance in R&D projects, technology transfer. Each pole was created as a consortium of organizations operating as public or private research cen-tres and service centres (universities, innovation centres or technology transfer centres and firms). In this paper we adopt a statistical analysis of textual content produced by the innovation poles to identify distinctive or common elements in the various texts they produced in three years of activi-ty and to draw some assessment of their communication on their activities. Documents under analysis are of different types: designed as written texts (on Smart Specializa-tion Strategy and monitoring the activities of the poles), transcripts of spoken language (the re-cordings of interviews); web communication. Through and automatic analysis we propose a sys-tematic comparison of all these documents that would not be possible through direct reading of texts: on the whole it is over 56,000 graphic forms, for a total of over two million occurrences. To compare both the intra diversity across the same type of document and across the different types of documents, first we analyse each of the four body separately, in order to identify the specific con-tent and the four languages used by the poles of innovation: "report", texts structured in the format of the monitoring; "design", the documents on smart specialization strategy; "reflection and analy-sis", in the transcription of interviews; and "communication", that characterizes the web sites. For this analysis, each document is associated with one or more categories (such as, for example, pole' band category, date of the document) that allow us to group or isolate relevant content in different contexts. In this work we first introduce the set of processing of texts aimed at the selection of graphic forms on which we focus our analysis. Then, we present for each corpus the description of the analysed documents, the results of calculations performed for the treatment of the text and the analysis of the main components that explain the variability of language within each corpus. These analyses (represented by the factorial of two main components) interpret the selection of graphic forms be-ing analysed with respect to categorical variables, defined for each document in each of the corpo-ra. The analysis concludes
    Keywords: linguistic analysis; web communication; innovation poles; regional innovation policies
    JEL: R10 O25 Y8 C88
    Date: 2016–06
  6. By: Daniel Neicu; Stijn Kelchtermans; Peter Teirlinck
    Abstract: This paper starts from the observation that the majority of firms in Belgium that were eligible for a newly introduced R&D tax credit system does not use it, or is slow to adopt, despite significant potential cost savings. We hypothesize that the R&D support landscape is complex for firms to navigate and that they may cope by relying on their peers’ behaviour to inform their own adoption decisions. We identify endogenous peer effects in industry- and location-based peer groups by exploiting the intransitivity in firms’ peer group networks as well the variation in peer group sizes. The results show that firms’ decisions to use R&D tax credits are indeed influenced by the choices of their peers, primarily in the time window following the introduction. Our analysis complements the literature on peer effects in firm decision making and suggests improvements for the communication of new public support measures for business R&D.
    Keywords: R&D tax credits, peer effects, information diffusion, social interactions
    Date: 2016–06
  7. By: Levin, Mark (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Matrosova, K. (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: This paper is an analysis of the diffusion of innovation. The aim of the study is to elaborate comprehensive survey involving many carefully consistent peculiarities or different approaches of innovative diffusion and to create an original model of innovative processes.
    Keywords: innovation, diffusion of innovation, externalities, simulation analysis, attributes, evolutionary theory
    Date: 2016–04–14
  8. By: Pedro Bento (Texas A&M University, Department of Economics)
    Abstract: I look at manufacturing firms across countries and over time, and find that barriers to competition actually increase the number of firms. This finding contradicts a central feature of all current models of endogenous markups and free entry, that higher barriers should reduce competition and firm entry, thereby increasing markups. To rationalize this finding, I extend a standard model in two ways. First, I allow for multi-product firms. Second, I model barriers as increasing the cost of entering a product market, rather than the cost of forming a firm. Higher barriers to competition reduce the number of products per firm and per market, but increase markups and the total number of firms. Calibrating the model to U.S. data, I estimate cross-country differences in consumption as large as 3-fold due to observed differences in barriers to competition. In addition, increasing barriers generates either a negative or inverted-U relationship between firm-level innovation and markups. While higher markups encourage product-level innovation through the usual Schumpeterian mechanism, firm-level innovation (at least eventually) drops as firms reduce their number of products. I provide new evidence supporting these two novel implications of the model - that product-level innovation increases with barriers to competition, while the number of products per firm decreases.
    Keywords: product market regulation, entry costs, firm size, productivity, innovation, markups, competition, multi-product firms
    JEL: L1 L5 O1 O3 O4
    Date: 2016–06–08
  9. By: Asongu, Simplice; Andrés, Antonio R.
    Abstract: In the first critical assessment of knowledge economy dynamic paths in Africa and the Middle East, but for a few exceptions, we find overwhelming support for diminishing cross-country disparities in knowledge-base-economy dimensions. The paper employs all the four components of the World Bank’s Knowledge Economy Index (KEI): economic incentives, innovation, education, and information infrastructure. The main finding suggests that sub-Saharan African (SSA) and the Middle East and North African (MENA) countries with low levels in KE dynamics and catching-up their counterparts of higher KE levels. We provide the speeds of integration and time necessary to achieve full (100%) integration. Policy implications are discussed.
    Keywords: Knowledge economy; Principal component analysis; Panel data; Convergence
    JEL: F42 O10 O38 O57 P00
    Date: 2015–12
  10. By: Manuel Mira Godinho (University of Lisbon); Vitor Corado Simões (Technical University of Lisbon); Jana Zifciakova (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, Portugal
    JEL: I20 O30 Z18
    Date: 2016–05
  11. By: Claude Diebolt (BETA, University of Strasbourg Strasbourg, France); Ralph Hippe (London School of Economics and Political Science, Grantham Research Institute on Climate Change and the Environment)
    Date: 2016
  12. By: Claude Diebolt; Ralph Hippe
    Abstract: Human capital is supposed to be an important factor for innovation and economic development. However, the long-run impact of human capital on current innovation and economic development is still a black box, in particular at the regional level. Therefore, this paper makes the link between the past and the present. Using a large new dataset on regional human capital and other factors in the 19th and 20th century, we find that past regional human capital is a key factor explaining current regional disparities in innovation and economic development.
    Keywords: Human Capital, Economic Development, Innovation, Regions, Europe.
    JEL: I25 N90 O18 R11
    Date: 2016
  13. By: Nadia Benomar; Joanne Castonguay; Marie-Hélène Jobin; François Lespérance
    Abstract: L’innovation constitue sans contredit la meilleure stratégie pour faire face aux enjeux de démographie, d’efficience et de finances publiques. Pour répondre à la demande de services en santé, sans accroître l’enveloppe de fonds publics allouée à ce secteur, il faut impérativement gagner en efficience. Dans cette perspective, la seule solution logique et réaliste passe par l’intégration réussie des innovations. Une idée n’est une innovation qu’à partir du moment où elle ajoute de la valeur, c’est-à-dire lorsqu’on peut bénéficier de son implantation. L’adoption et la diffusion font partie intégrante du processus d’innovation, sans quoi il ne s’agit que d’une invention. Après avoir passé en revue la littérature scientifique et la littérature grise dans le but d’identifier les facteurs (exogènes et endogènes) qui peuvent favoriser ou nuire à l’implantation de l’innovation en santé, les auteurs tentent de les contextualiser à la réalité québécoise dans le but d’envisager les avenues de solutions pour les mitiger.
    Date: 2016–06–13
  14. By: Marc Rysman; Scott Schuh
    Abstract: We discuss prospects for innovation in consumer payment instruments. We discuss recent research into consumer payments and what can be learned about consumer behavior towards new payment options. We consider three new innovations in payments: mobile payments, faster payments and digital currencies. For each, we describe prospects and impediments to adoption.
    JEL: L1
    Date: 2016–06
  15. By: Astebro, Thomas B; Yong, Kevyn
    Abstract: We use creativity theory to analyze the effects of occupational job variety and industry variety on invention quality and entrepreneurial earnings. We test our ideas with survey data from 770 inventor-entrepreneurs who commercialized their own inventions. Results suggest that occupational and industry variety substitute for each other in positively affecting invention quality whereas a lack of industry variety is associated with greater entrepreneurial earnings. Results are consistent with the idea that high levels of both occupational and industry variety enables the generation and discovery of inventions, but these ideas are usually not technically feasible or financially viable.
    Keywords: Creativity; Prior Employment Variety; Jack-of-all-Trades; Invention Quality; Entrepreneurial Earnings
    JEL: L26
    Date: 2015–12–31
  16. By: Sendstad, Lars Hegnes (Dept. of Business and Management Science, Norwegian School of Economics); Chronopoulos, Michail (School of Computing, Engineering and Mathematics, University of Brighton)
    Abstract: Investment in emerging technologies is particularly challenging, since, apart from uncertainty in revenue streams, firms must also take into account both policy uncertainty and the random arrival of innovations. We assume that the former is reflected in the sudden provision and retraction of a support scheme, which takes the form of a fixed premium on top of the output price. Thus, we develop an analytical framework for sequential investment in order to determine how price, technological, and policy uncertainty interact to affect the decision to invest sequentially in successively improved versions of an emerging technology. We show that greater likelihood of subsidy retraction lowers the incentive to invest, whereas greater likelihood of subsidy provision facilitates investment. However, embedded options to invest in improved technology versions raise the value of the investment opportunity, thereby mitigating the impact of subsidy retraction and making the impact of subsidy provision more pronounced. Additionally, by allowing for sequential policy interventions, we find that the impact of policy uncertainty becomes less pronounced as the number of policy interventions increases.
    Keywords: Investment analysis; real options; policy uncertainty; technological uncertainty
    JEL: G00 G11
    Date: 2016–06–14
  17. By: Astebro , Thomas B; Braguinsky , Serguey; Braunerhjelm , Pontus; Broström , Anders
    Abstract: Should society encourage scientists at universities to become entrepreneurs? Using data on U.S. university-employed scientists with a Ph.D. in STEM disciplines leaving their university to become entrepreneurs during 1993-2006 and similar data from Sweden we show evidence suggesting that owning your idea outright (the “Professor’s Privilege”) rather than sharing ownership with your university employer (the Bayh-Dole regime) is strongly positively associated with the rate of academic entrepreneurship but not with apparent economic gain for the entrepreneur. Further analysis show that in both countries there is too much entry into entrepreneurship, and selection from the bottom of the ability distribution among scientists. Targeted policies aimed at screening entrepreneurial decisions by younger, tenure-track academics may therefore produce more benefits for society than general incentives.
    Keywords: Academic entrepreneurship; economic incentives; Bayh-Dole; Professor’s Privilege
    JEL: J20 L26 N32
    Date: 2016–02
  18. By: Giovanni Dosi; Valerie Revest; Alessandro Sapio
    Abstract: The evolutionary taxonomy of financial systems, outlined by Dosi (1990), argued that market-based systems would be comparatively more engaged in the exploration of new technological paradigms, as an outcome of market selective pressure, whereas the more institutionalized finance allocation in credit-based systems would give them an advantage in cumulative learning. This article offers a preliminary assessment of those conjectures in light of the institutional change associated with the financialization process and the "maximizing shareholders value" principle. The available evidence suggests that financialization has de-linked the performance of firms on the financial markets from the determinants of firm-level growth and innovation. Selection among companies increasingly occurs on financial markets, along criteria of short-term returns. As such, financialization has contributed to compress and somewhat degrade the specific properties of the finance-innovation nexus of both financial system archetypes, deteriorating both static and Schumpeterian efficiency.
    Keywords: Evolutionary Theory, Financial Systems, Firm growth, Innovation, Financialization
    Date: 2016–06–15
  19. By: Colombelli, Alessandra; Quatraro, Francesco (University of Turin)
    Abstract: There is wide consensus about the importance of green technologies for achieving superior economic and environmental performances. The literature on their determinants has neglected the creation of green start-ups as a channel to bring about green technologies in the market. Drawing upon the knowledge spillovers theory of entrepreneurship, we test the relevance of local knowledge stocks, distinguishing between clean and dirty stocks, for the creation of green start-ups. Moreover, the effects of the technological composition of local stocks is investigated, by focusing on technological variety, both related and unrelated, as well as on coherence. Consistently with recent literature, green start-ups are associated to higher levels of variety, pointing to the relevance of diverse and heterogeneous knowledge sources, but in related and complementary technological fields.
    Date: 2016–04
  20. By: Hashmat U. Khan (Department of Economics, Carleton University); Pythagoras Petratos (Saïd Business School, Oxford University)
    Abstract: We consider US Venture Capital (VC) activity as a measure of entrepreneurship and study its relationship with the business cycle. This measure addresses some biases in alternative measures such as self-employment and business ownership that have been considered in previous literature. Despite the well-known volatility in VC activity, it remains an important source of funding for entrepreneurs engaging in innovative business creation. We document key stylized facts for VC entry (seed and start-up stage) and VC exit (late stage) at the aggregate and sectoral level. VC entry is more strongly correlated and is contemporaneous with the business cycle while VC exit lags the cycle by two quarters. There is strong evidence for a bi-directional causality between entrepreneurship and economic activity. A positive shock to VC activity has a positive effect on real GDP. Our findings can help inform policies designed to support entrepreneurship.
    Keywords: Entrepreneurship, Venture Capital, Business Cycles
    JEL: E32 G24 L26
    Date: 2016–06
  21. By: Bruno Lanz; Simon Dietz; Timothy Swanson
    Abstract: We study how stochasticity in the evolution of agricultural productivity interacts with economic and population growth, and the associated demand for food. We use a two-sector Schumpeterian model of growth, in which a manufacturing sector produces the traditional consumption good and an agricultural sector produces food to sustain contemporary population. In addition, sectors differ in that agriculture also demands land as an input, itself treated as a scarce form of capital. In our model both population and sectoral technological progress are endogenously determined, and key technological parameters of the model are structurally estimated using 1960-2010 data on world GDP, population, cropland and technological progress. Introducing random shocks to the evolution of total factor productivity in agriculture, we show that uncertainty optimally requires more land to be converted into agricultural use as a hedge against production shortages, and that it significantly affects both consumption and population trajectories.
    Keywords: Economic growth; Stochastic control; Agricultural productivity; Endogenous innovations; Land conversion; Population dynamics; Food security.
    JEL: O11 O13 O31 J11 C61 Q16 Q24
    Date: 2016–06–03
  22. By: Fujii, Hidemichi; Cao, Jing; Managi, Shunsuke
    Abstract: This study analyzes productive efficiency in relation to CO2 emissions using a unique dataset of 562 Chinese manufacturing firms for the period from 2005 to 2009. We develop a directional distance function approach to identify technical innovators in the area of CO2 emissions. The results indicate that a large number of technical innovators are observed in the textile, paper, steel, and computer industries. Furthermore, there are clearly different trends in productivity change and corporate performance across industries and provinces. This result implies that policy makers need to consider industrial and regional characteristics to develop effective policies that conserve energy and reduce CO2 emissions.
    Keywords: Technical innovator; total factor productivity; technology adoption; CO2 emissions; Chinese manufacturing firm
    JEL: D24 O14 Q55
    Date: 2016–05
  23. By: Akzar, Rida; Permani, Risti; Wahida; Umberger, Wendy
    Keywords: Farm Management, Livestock Production/Industries,
    Date: 2016–02
  24. By: OECD
    Abstract: The digital convergence anticipated during the 2008 Seoul Ministerial has become a reality. Historically, communication services were delivered via single-purpose dedicated networks (e.g. telephone, television). Many OECD countries now function with converged networks, facilitated by the Internet Protocol (IP) in which “bits” are the building blocks for transmission of all content and service – all “applications.” This process of convergence is steadily deepening as technology evolves and more and more activity shifts online. In particular, technological, service and business innovations both at the core and at the edge of the network are significantly affecting competitors, investors and consumers. This report identifies trends in convergence, the opportunities and challenges arising from these changes and suggests policies to meet them.
    Date: 2016–06–07
  25. By: Adam Marszk (Gdansk University of Technology, Gdansk, Poland); Ewa Lechman (Gdansk University of Technology, Gdansk, Poland)
    Abstract: Similar to economic growth, the process of technology diffusion may well be approximated by easily Exchange Traded Funds (ETFs) are recognized financial innovations pervasively impacting and transforming financial markets (Deville 2008, Gastineau 2010, Agapova 2011, Hill et al. 2015). Easy to use they have gained rapidly growing popularity among investors (Gastineau 2010, Lechman and Marszk 2015). Asian countries are those where rapid spread of financial innovations is observed (Marszk 2014); hence our analysis covers Japan and South Korea, which allows comparing diffusion and substitution trajectories of innovative financial products between advanced and emerging economy. It also traces substitution effects between ETFs and index derivatives. Moreover, we claim that ETFs influence financial systems in various ways, and may impact their stability, due to e.g. liquidity risk (Kosev and Williams 2011, Foucher and Gray 2014), and this also constitutes a field of our research. Our research contributes to the present state of knowledge by:Tracing diffusion trajectories of financial innovations (ETFs) and examination of the dynamics of the process, across Japanese and South Korean stock exchanges;Examining the unique process of substitution between ETFs and similar investment options, i.e. stock index futures and options;Providing long-term predictions of financial innovations development across examined countries: trying to establish the possible future path of the ETF markets development in countries in scope;Examination of the impact of the ETFs on the financial systems in examined countries; identification of country-specific thresholds leading to emergence of possible threats for the financial system stability.
    Keywords: ETFs, financial innovations, financial substitution
    JEL: G10 G15
    Date: 2016–06
  26. By: Markussen, Simen (Ragnar Frisch Centre for Economic Research); Røed, Knut (Ragnar Frisch Centre for Economic Research)
    Abstract: In virtually all industrialized countries, women are underrepresented in entrepreneurship, and the gender gap exhibits a remarkable persistence. We examine one particular source of persistence, namely the prevalence of gendered networks and associated peer effects. We study how early career entrepreneurship is affected by existing entrepreneurship among neighbors, family members, and recent schoolmates. Based on an instrumental variables strategy, we identify strong peer effects. While men are more influenced by other men, women are more influenced by other women. We estimate that differences between male and female peer groups explain approximately half of the gender gap in early career entrepreneurship.
    Keywords: early career entrepreneurship, peer effects, gender gap, instrumental variables
    JEL: L26 M13 J16
    Date: 2016–06
    Date: 2016
  28. By: Dorota Celińska (Faculty of Economic Sciences, University of Warsaw)
    Abstract: In this article we investigate which characteristics of the developers involved in the creation of Open Source software favor innovation in the Open Source community. We utilize a unique database, obtained by web-scrapping GitHub from January to March, 2016. The results of the analysis show that higher reputation in the community improves up to a certain degree the probability of gaining collaborators, but developers are also driven by reciprocity, which is consistent with the concept of gift economy. There exists also a statistically significant network effect emerging from the standarization -- developers using the most popular programming languages in the service are likely to have more collaborators. Providing additional contact information improves the chance of having coworkers. The obtained results can be generalized for the population of mature users of GitHub.
    Keywords: Open Source, GitHub, fork, collaboration, innovations, reputation, gift economy, network externality, standarization, reciprocity
    JEL: L15 L86 L17 L14 D85
    Date: 2016

This nep-ino issue is ©2016 by Uwe Cantner. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.