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on Innovation |
| By: | Aghion, Philippe; Howitt, Peter; Prantl, Susanne |
| Abstract: | In this paper, we provide empirical evidence to the effect that strong patent rights may complement competition-increasing product market reforms in fostering innovation. First, we find that the product market reform induced by the large-scale internal market reform of the European Union in 1992 enhanced, on average, innovative investments in manufacturing industries of countries with strong patent rights since the pre-sample period, but not so in industries of countries with weaker patent rights. Second, the positive response to the product market reform is more pronounced in industries where, in general, innovators tend to value patent protection higher than in other industries, except for the manufacture of electrical and optical equipment. The observed complementarity between competition and patent protection can be rationalized using a Schumpeterian growth model with step-by-step innovation. In such a model, better patent protection prolongs the period over which a firm that successfully escapes competition by innovating, actually enjoys higher monopoly rents from its technological upgrade. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hrv:faseco:27755230&r=ino |
| By: | Jens K. Perret (European Institute for International Economic Relations at the University of Wuppertal) |
| Abstract: | The present study picks up on the aspect of knowledge generation - a key part of every national innovation system - in the context of the USA and the Russian Federation. Following Fritsch and Slavtchev (2006) a knowledge production function can be used to account for the efficiency of an innovation systems. In detail this study provides a quantile regression estimation of the knowledge production function to account for a possible non-linear relationship between knowledge inputs and knowledge output. Using regional data for researchers, expenditures on R\& D and patent grants for the USA and the Russian Federation - motivated by the results of a kernel density estimation and transition matrices - a quantile regression is performed for a basic knowledge production function design; for Russia as well for an extended design. The results show that in both countries there exist groups of regions with smaller sized research systems that report significantly different dynamics and thus knowledge production functions than regions with larger sized research systems. |
| Keywords: | Russian Federation, USA, Innovation System, Knowledge Production Function, Knowledge Generation, Quantile Regression, Regional Economics |
| JEL: | P25 O31 O57 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:schdps:sdp16003&r=ino |
| By: | Fabrizio Panebianco; Thierry Verdier; Yves Zenou |
| Abstract: | Consider a network of firms where a firm T is given the opportunity to innovate a product (first-generation innovation). If successful, this firm can temporarily sell this innovation to her direct neighbors because this will give her access to a larger market. However, if her direct neighbors innovate themselves on top of firm T's innovation (second-generation innovations), then firm T loses the right to sell her initial innovation to the remaining firms in the market. We analyze this game where each firm (T and her direct neighbors) has to decide at which price they want to sell their innovation. We show that the optimal price policy of each firm depends on the level of property rights protection, the position of firm T in the network, her degree and the size of the market. We then analyze the welfare implications of our model where the planner that maximizes total welfare has to decide which firm to target. We show that it depends on the level of property rights protection and on the network structure in a non-trivial way. JEL classification: D85, L1, Z13. Keywords: Networks, diffusion centrality, targets, innovation. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:igi:igierp:579&r=ino |
| By: | Bharat Diwakar; Gilad Sorek |
| Abstract: | We study the implications of patents breadth and duration (length) to growth and welfare, in an overlapping generations economy of finitely living agents. This demographic structure gives room to inter-generational trade in old patents and life-cycle saving motive, which prove to be relevant to the implications of different patent-policy dimensions. Patent breadth protection affects life-cycle saving and thereby aggregate investment, and the allocation investment between patents and physical capital. Patents duration affects also the stock of, and trade in, old patents. We show that, these unique characteristics of the OLG economy provide a case for incomplete patent breadth protection and finite patent duration, which are both growth and welfare enhancing. Furthermore, we show that the implications of patent policy to growth depend on whether the differentiated inputs are intermediate goods or investment goods. Our results contrast with the ones derived in previous studies that employed the same technologies and preferences in model economies of infinitely living agents. Hence, this work highlights the importance of the assumed demographic structure to the implications of patent policy. |
| Keywords: | IPR; Patent length; Patent Breadth; Growth; OLG |
| JEL: | L16 O30 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:abn:wpaper:auwp2016-08&r=ino |
| By: | Karbowski, Adam; Prokop, Jacek |
| Abstract: | The aim of this paper is to analyze selected problems of interfirm R&D cooperation discussed in the industrial organization literature. Analyzed interrelated problems are: (i) stability of interfirm R&D cooperation, (ii) organization of interfirm R&D cooperation, (iii) asymmetries between cooperating firms and (iv) the impact of interfirm R&D cooperation on industry cartelization. On the basis of the literature review it can be concluded that the necessary condition for reaching benefits from interfirm R&D cooperation is to (1) successfully solve the free-rider problem arising in the process of knowledge sharing between collaborating firms and further (2) maintain stable cooperation. Obstacles to stable R&D cooperation can be, however, too low or too high values of asymmetries occurring between cooperating firms. Effective stabilization of interfirm R&D cooperation can be achieved, among others, by licensing of know-how, intensification of knowledge sharing between cooperating firms and various organizational forms of R&D cooperation (research joint-ventures and R&D cartels). From the social welfare perspective it should be also noted that tightening up of an interfirm cooperation at the R&D stage can result in the cartelization of industry (cartel on the market of a final good can be formed). |
| Keywords: | interfirm cooperation, research and development, industrial organization |
| JEL: | L24 O32 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:72784&r=ino |
| By: | Riccardo Crescenzi; Luisa Gagliardi; Simona Iammarino |
| Abstract: | This paper looks at foreign Multinational Enterprises (MNEs) investing in the UK and at their impact on the innovation performance of domestic firms active in their same sector. By employing data on Foreign Direct Investments matched with firm-level information the paper develops a direct measure of capital inflows at a three-digit industry level. In order to capture innovation in both manufacturing and services the paper relies on a broader proxy for firm innovativeness based on the Community Innovation Survey (CIS). The results suggest that domestic firms active in sectors with greater investments by MNEs show a stronger innovative performance. However, the heterogeneity across domestic firms in terms of internationalization of both their market engagement and ownership structure is the main driver of this effect. |
| Keywords: | multinational enterprises; innovation technological change; intra-industry knowledge diffusion; community innovation survey; United Kingdom |
| JEL: | F22 O33 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:62028&r=ino |
| By: | Rosario Crino (Catholic University of Milan); Gino Gancia (CREI); Alessandra Bonfiglioli (Universitat Pompeu Fabra) |
| Abstract: | We study the equilibrium determinants of firm-level heterogeneity in a model in which firms can affect the variance of their productivity draws at the entry stage and explore the implications in closed and open economy. By allowing firms to choose the size of their investment in innovation projects of unknown quality, the model yields a Pareto distribution for productivity with a shape parameter that depends on industry-level characteristics. A novel result is that export opportunities, by increasing the payoffs in the tail, induce firms to invest in bigger projects with more spread-out outcomes. Moreover, when more productive firms also pay higher wages, trade amplifies wage dispersion by making all firms more unequal. These results are consistent with new evidence on how firm-level heterogeneity and wage dispersion vary in a panel of U.S. industries. Finally, we use patent data across U.S. states and over time to provide evidence in support of a specific mechanism of the model, namely, that export opportunities increase firm heterogeneity by fostering innovation. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:327&r=ino |
| By: | Aghion, Philippe; Dechezleprêtre, Antoine; Hemous, David; Martin, Ralf; Van Reenen, John |
| Abstract: | Can directed technical change be used to combat climate change? We construct new firm-level panel data on auto industry innovation distinguishing between "dirty" (internal combustion engine) and "clean" (e.g. electric and hybrid) patents across 80 countries over several decades. We show that firms tend to innovate relatively more in clean technologies when they face higher tax-inclusive fuel prices. Furthermore, there is path dependence in the type of innovation both from aggregate spillovers and from the firm's own innovation history. Using our model we simulate the increases in carbon taxes needed to allow clean to overtake dirty technologies. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hrv:faseco:27759048&r=ino |
| By: | Goldschlag, Nathan (U.S. Census Bureau); Bianchini, Stefano (Université de Strasbourg); Lane, Julia (New York University); SanMartin Sola, Joseba; Weinberg, Bruce A. (Ohio State University) |
| Abstract: | Public support of research typically relies on the notion that universities are engines of economic development, and that university research is a primary driver of high wage localized economic activity. Yet the evidence supporting that notion is based on aggregate descriptive data, rather than detailed links at the level of individual transactions. Here we use new micro-data from three countries - France, Spain and the United States - to examine one mechanism whereby such economic activity is generated, namely purchases from regional businesses. We show that grant funds are more likely to be expended at businesses physically closer to universities than at those farther away. In addition, if a vendor has been a supplier to a grant once, that vendor is subsequently more likely to be a vendor on the same or related grants. Firms behave in a way that is consistent with the notion that propinquity is good for business; if a firm supplies a research grant at a university in a given year it is more likely to open an establishment near that university in subsequent years than other firms. |
| Keywords: | science policy, innovation, regional economic development, UMETRICS |
| JEL: | O30 R10 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10081&r=ino |
| By: | Bryan Engelhardt (College of Business, University of Wisconsin - Oshkosh); Zachary Fernandes (Board of Governors of the Federal Reserve System) |
| Abstract: | To check for the impartiality of the United States judicial system, we investigate whether judicial decisions are leaked prior to their public release. Utilizing an event study methodology, we test for leaked information by analyzing the effect of patent infringement verdicts on the stock prices of the firms involved before and after the public release of the verdict. We find evidence that at least some of the decisions are leaked prior to their public release. |
| Keywords: | event study, patent infringement, judicial leakage, insider trading, trial court, appellate court |
| JEL: | G14 K41 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:hcx:wpaper:1602&r=ino |
| By: | Rocha, Vera (Copenhagen Business School); van Praag, Mirjam C. (Copenhagen Business School) |
| Abstract: | Both organizational and sociological approaches in entrepreneurship research highlight the importance of social context in shaping individual preferences for entrepreneurship. An influential contextual factor that has not been studied in entrepreneurship research is one's boss at work. Do entrepreneurial bosses contribute to their employees' decisions to become entrepreneurs themselves? Using Danish register data of newly founded firms and their entrepreneurs and employees between 2003 and 2012, and employing methods that allow causal inferences, we show that entrepreneurial bosses indeed affect their employees' future entrepreneurship choices, especially if both boss and employee are female. We investigate two alternative underlying mechanisms that may shape the (female) boss' influence on (female) workers' entrepreneurship decisions. Our results consistently suggest that entrepreneurial bosses may act as role models for the entrepreneurship activities of their employees, especially between pairs of female bosses and female employees. We do not find any evidence on female bosses acting as "queen bees" at the workplace. Female entrepreneurial bosses may, thus, act as a lever to reducing the gender gaps in entrepreneurship rates. |
| Keywords: | entrepreneurship, role models, gender gaps, female leadership |
| JEL: | L26 J24 J16 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10104&r=ino |
| By: | Dezhina Irina (Gaidar Institute for Economic Policy) |
| Abstract: | In 2015, the budget allocations to civilian research and development (R&D) were cut by approximately 8% at current prices by comparison with the targets set in the basic version of the Law on the 2015 Federal Budget and 2016–2017 Budget Plan. The reduction in the amount of budget funding is of critical importance for the science sector, because the federal budget has remained the principal source of funding for research and development, covering about 70% of the aggregate expenditures on R&D. |
| Keywords: | Russian economy, R&D, science, technology |
| JEL: | I21 I22 I23 I24 I25 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:gai:ppaper:ppaper-2016-263&r=ino |
| By: | Randall Jackson (Regional Research Institute, West Virginia University); Jing Chen (Regional Research Institute, West Virginia University) |
| Abstract: | The year 2015 marks the West Virginia University (WVU) Regional Research Institute’s (RRI) 50th year anniversary and this article conducts a case study to explore the scholarly collaborations by social network analysis (SNA) in the RRI research community since its inception in 1965. We have discovered that the evolving endogenous and exogenous co-authorship networks grow and gain complexity as the Institute develops and incorporates more researchers. However, this case study also uncovers and verifies several social network analysis (SNA) limitations on research pattern analysis. |
| Keywords: | Co-authorship, bibliometrics, social network analysis, Regional Research Institute |
| JEL: | R00 O18 A12 B31 |
| Date: | 2016–07 |
| URL: | http://d.repec.org/n?u=RePEc:rri:wpaper:2016wp03&r=ino |
| By: | Asian Development Bank (ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) (Economic Research and Regional Cooperation Department, ADB); Asian Development Bank (ADB) |
| Abstract: | In partnership with the Malaysian Institute of Economic Research, the Asian Development Bank (ADB) held the forum on September at Kuala Lumpur, Malaysia. The forum featured research papers on regional economic outlook, global value chains, regional economic cooperation, transitioning from middleincome status, social inclusion, and capacity building for think tanks. This publication documents the dynamic exchange of ideas and information during the day event. The ADBAsian Think Tank Development Forum is an annual knowledge sharing event under the ADB AsianThinkb Tans Network (ATTN), established by ADB and the Asian think tanks in . The major objective of the network is to promote knowledge sharing and capacity building of think tanks, particularly those which are involved in supporting governments in formulating and implementing mediumor longterm development plans and in responding to emerging issues. For more information about ATTN, please visit its website: http://www/adb-asianthinktanks.org/ |
| Keywords: | economic outlook, global value chains, regional economic cooperation, social inclusion, and capacity building |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:asd:wpaper:rpt167980-2&r=ino |