nep-ino New Economics Papers
on Innovation
Issue of 2016‒08‒21
nineteen papers chosen by
Uwe Cantner
University of Jena

  1. Patentability, R&D direction, and cumulative innovation By Chen, Yongmin; Pan, Shiyuan; Zhang, Tianle
  3. Roads to innovation: Firm-level evidence from China By Wang, Xu; Zhang, Xiaobo; Xie, Zhuan; Huang, Yiping
  4. India's potential as a lead market for frugal innovation and the role of socio-cultural context factors By Tiwari, Rajnish
  5. Is Inequality Harmful for Innovation and Growth? Price versus Market Size Effects By Foellmi, Reto; Zweimüller, Josef
  6. Smart Specialization as an innovation-driven strategy for economic diversification: Examples from Scandinavian regions By Asheim, Bjørn; Grillitsch, Markus; Trippl, Michaela
  7. Dynamics of Innovation and Internationalization among Small and Medium-Sized Enterprises in Viet Nam By Trinh, Long Q.
  8. Smart Specialisation: Creating Growth through Trans-national co-operation and Value Chains By Age Mariussen; Ruslan Rakhmatullin; Lina Stanionyte
  9. A bibliometric analysis of academic papers on frugal innovation By Tiwari, Rajnish; Kalogerakis, Katharina
  10. A Delphi Approach to Boost an Open Innovation Policy By Santos, Antonio Bob; Mendonca, Sandro
  11. The Mobile Phone in the Diffusion of Knowledge for Institutional Quality in Sub-Saharan Africa By Asongu, Simplice; Nwachukwu, Jacinta
  12. Fighting Software Piracy: Some Global Conditional Policy Instruments By Asongu, Simplice A; Singh, Pritam; Le Roux, Sara
  13. Does female labor scarcity encourage innovation?: Evidence from China’s gender imbalance By Tan, Zhibo; Zhang, Xiaobo
  14. The costs of using formal intellectual property rights: a survey on small innovative enterprises in Latin America By Ignacio L. De León; José Fernández Donoso
  15. Koordination, Lernen und Innovation zur Entwicklung peripherer ländlicher Regionen: Phase II der Begleitforschung zum Modellvorhaben LandZukunft By Kundolf, Stefan; Küpper, Patrick; Margarian, Anne; Wandinger, Christian
  16. On the use of agricultural system models for exploring technological innovations across scales in Africa: A critical review By Rötter, Reimund; Sehomi, Fanou; Höhn, Jukka; Niemi, Jarkko; van den Berg, Marrit
  17. The Unequal Gains from Product Innovations By Xavier Jaravel
  18. Mobile Phones in the Diffusion of Knowledge and Persistence in Inclusive Human Development in Sub-Saharan Africa By Asongu, Simplice; Nwachukwu, Jacinta
  19. Venture Capital Data: Opportunities and Challenges By Steven N. Kaplan; Josh Lerner

  1. By: Chen, Yongmin; Pan, Shiyuan; Zhang, Tianle
    Abstract: We present a model of cumulative innovation where firms can conduct R&D in both a safe and a risky direction. Innovations in the risky direction produce quality improvements with higher expected sizes and variances. As patentability standards rise, an innovation in the risky direction is less likely to receive a patent that replaces the current technology, which decreases the static incentive for new entrants to conduct risky R&D, but increases their dynamic incentive because of the longer duration---and hence higher reward---for incumbency. These, together with a strategic substitution and a market structure effect, result in an inverted-U shape in the risky direction but a U shape in the safe direction for the relationship between R&D intensity and patentability standards. There exists a patentability standard that induces the efficient innovation direction, whereas R&D is biased towards (against) the risky direction under lower (higher) standards. The optimal patentability standard may distort the R&D direction to increase the industry innovation rate that is socially deficient.
    Keywords: cumulative innovation, patentability standards, R&D intensity, R&D direction, rate of innovation, innovation direction
    JEL: L1 O3
    Date: 2016–08
  2. By: Fulvio Castellacci (TIK Centre, University of Oslo); Christine Mee Lie (TIK Centre, University of Oslo)
    Abstract: The paper presents a new taxonomy of green innovators. We make use of firm-level data from the Korea Innovation Survey to investigate different types of eco-innovations, how these relate to each other, and what the main drivers and determinants are. Our empirical methodology is based on a combination of factor, cluster and multinomial logit analysis. The taxonomy points out four groups of green innovators: (1) CO2-reducing; (2) waste-reducing; (3) recycling innovators; (4) pollution-reducing. We also find that R&D policies are more relevant factors enhancing innovations in waste-reducing firms, whereas environmental taxes and regulations are more important drivers of technological change for pollution-reducing companies.
    Date: 2016–08
  3. By: Wang, Xu; Zhang, Xiaobo; Xie, Zhuan; Huang, Yiping
    Abstract: Although both infrastructure and innovation play an important role in fostering a country’s economic growth, discussion in the literature about how the two are connected is limited. This paper examines the impact of road density on firm innovation in China using a matched patent database at the firm level and road information at the city level. Regional variation in the difficulty of constructing roads is used as an instrumental variable to address the potential endogeneity problem of the road variable. The empirical results show that a 10 percent improvement in road density increases the average number of approved patents per firm by 0.71 percent. Road development spurs innovation by enlarging market size and facilitating knowledge spillover.
    Keywords: CHINA, EAST ASIA, ASIA, infrastructure, innovation, transportation, technology transfer, knowledge diffusion, O31 Innovation and Invention: Processes and Incentives, O33 Technological Change: Choices and Consequences, Diffusion Processes, R11 Regional Economic Activity: Growth, Development, Environmental Issues, and Changes, R40 Transportation Economics: General,
    Date: 2016
  4. By: Tiwari, Rajnish
    Abstract: In recent years a phenomenon called "frugal innovation" has increasingly gained traction in the scholarly discourse; and as research reveals, it is often brought in connection with India. Apparently, India has quietly acquired the role of a pioneer for innovations that aim at combining affordability with excellence, cutting across sectoral boundaries. But what is it that makes India a forerunner for an innovation paradigm with increasing global relevance? In this paper, I propose that the "lead market" theory can explain to a quite good extent the attractiveness of India for frugal solutions. On one hand, there are concrete economic factors that give rise to resource-efficient and affordable solutions to problems faced in day-to-day life. On the other hand, frugality has been long regarded as a virtuous social value in India and the socio-cultural context of the country provides a fertile environment for the acceptance of frugal products and services on both demand and supply sides. This paper, apart from dwelling on the concept of lead markets and its application in the context of frugal innovations in India, also presents some qualitative results of an empirical survey conducted with participation of Indian students that underscore the role of culture as a key determinant for the acceptance of frugal innovation. The study indicates that frugality in India is often driven by financial considerations ("frugality 2.0"), but globally there are other, additional powerful drivers for frugal innovations, e.g. environmental concerns and rejection of status symbols. This makes a case for collaboration and cooperation between emerging and developed economies, such as India, Germany and Japan, to enable "affordable green excellence".
    Keywords: Lead Markets,Frugality 3.0,Frugal Innovation,National Culture,India,Reverse Innovation
    Date: 2016
  5. By: Foellmi, Reto; Zweimüller, Josef
    Abstract: We introduce non-homothetic preferences into an R&D based growth model to study how demand forces shape the impact of inequality on innovation and growth. Inequality affects the incentive to innovate via a price effect and a market size effect. When innovators have a large productivity advantage over traditional producers a higher extent of inequality tends to increase innovators' prices and mark-ups. When this productivity gap is small, however, a redistribution from the rich to the poor increases market sizes and speeds up growth.
    Keywords: Inequality, Growth, Demand Composition, Price Distortion
    JEL: O15 O31 D30 D40 L16
    Date: 2016–07
  6. By: Asheim, Bjørn (University of Stavanger); Grillitsch, Markus (CIRCLE, Lund University); Trippl, Michaela (CIRCLE, Lund University)
    Abstract: This book chapter provides conceptual and empirical foundations for smart specialisation, a policy approach of far-reaching importance in the European context. We interpret the very notion as “diversified” specialisation into areas of existing or potential competitive advantage, which differentiates a region/nation from others. “Smart” relates to the identification of these areas through a process of entrepreneurial discovery, in which all actors are mobilized to be able to discover domains for securing existing and future competitiveness. Competitive advantage through smart specialization can be promoted in all types of industries but based on the industry specific modes of innovation and knowledge bases, which is illustrated through case studies in Denmark, Sweden, and Norway. Depending on the preconditions, we find that variegated strategies of smart specialisation are pursued, including building the absorptive capacity of DUI based firms by increasing their research based competence (introducing analytical knowledge), combining unrelated knowledge bases to move into new related and unrelated industries, combining related knowledge bases to move into unrelated industries, and moving into high-value added niches by introducing symbolic knowledge in traditional sectors.
    Keywords: Smart specialisation; policy; innovation; economic diversification; entrepreneurial discovery; knowledge bases; new path development; competitive advantage; regions
    JEL: O18 O30 O38 P48 R10 R58
    Date: 2016–08–12
  7. By: Trinh, Long Q. (Asian Development Bank Institute)
    Abstract: This paper examines the bidirectional causality between innovation and internationalization in the context of developing countries. Using a dynamic bivariate probit model and adopting a broad definition of internationalization, this paper analyzes these issues using a panel dataset of small and medium-sized enterprises in Viet Nam. The results show a high persistence in process and product innovations and internationalization decisions. Furthermore, we find that, for non-micro firms, past internationalization has a positive effect on process innovation, but past process innovation does not have a significant effect on the internationalization decision. For this group of firms, we also find signs of cross-dependence between process innovation and the internationalization decision. Our results, however, do not show dynamic interdependence between internationalization and product innovation.
    Keywords: SME internationalization and innovation; process innovation; cross-dependence; product innovation
    JEL: L20 L25 O31
    Date: 2016–08–16
  8. By: Age Mariussen (University of Vaasa); Ruslan Rakhmatullin (European Commission - JRC); Lina Stanionyte (European Commission - JRC)
    Abstract: S3 begins within a region/country by exploiting place-based expertise and industrial skills within the regional innovation eco-system. The paper refers to emerging research which indicates that some regions suffer from insufficient innovation eco-system complexity, followed by sub-optimal innovation performances and path lock-in. This indicates that regional innovation eco-systems could be further strengthened through transnational learning and collaboration. Several major forms of collaboration are identified. The paper suggests that macro-regional and trans-European smart specialisation strategies could be based on multi-level approaches to experimentally extend and strengthen regional innovation eco-systems. In order to achieve robust and long-lasting outcomes, these experiments could apply some existing S3 tools. Here, an important issue is the transition from temporary programmes, projects and networks to new institutional frameworks for co-evolution and collaboration between smart specialised regions. The next important step is to exploit the European diversity identified through regional RIS3 strategies. The long-term challenge is the strengthening of emergent European and macro-regional systems of innovation, and thus supporting the regions.
    Keywords: policy analysis; R & D; research; collaboration; policy; innovation; ecosystem
    Date: 2016–08
  9. By: Tiwari, Rajnish; Kalogerakis, Katharina
    Abstract: The term "frugal innovation" has established itself in scholarly discourse as well as in actual business practice in a short time. Nevertheless, its theoretical antecedents and underpinnings remain unclear. In this study we present results of a bibliometric analysis, which indicate that the present-day understanding of frugal innovation is shaped primarily by discourses on "bottom of the pyramid", "reverse innovation" and "disruptive innovation" and it has been targeted at "emerging economies". Even though rediscovery of frugality's virtue began in the developing world, it is spreading steadily to the economically developed world due to growing (global) demand for sustainable and affordable excellence. Frugal innovations are often associated with sustainability and development. Today, research on frugal innovations represents a very young and dynamic field: most scholarly publications and many of the references cited therein have been published in the past 5-6 years. Researchers would be, however, well-advised to incorporate insights on frugality and simplicity generated in other disciplines and other times, for example in the 1970s. Our study shows that the research on frugal innovations needs to take a calibrated, multidisciplinary approach.
    Date: 2016
  10. By: Santos, Antonio Bob; Mendonca, Sandro
    Abstract: In this research paper we intend to find out whether open innovation approach may be a valid approach to the definition of innovation policy. To that, we use a method applied in various fields of study, including public policy and open innovation studies: the Delphi method. After the introduction (Section 1), we describe the Delphi method (Section 2) and the methodology used in this research (Section 3). The results of the application of the Delphi method are presented in Section 4, where we identify public policy priorities in an open innovation perspective. Then, we propose measures of public policy through which these priorities could be achieved (Section 5). Section 6 presents the main findings, concluding that the approach of open innovation may be considered for prioritization of innovation policy and policy measures.
    Keywords: open innovation, innovation policy, public policy, Delphi
    JEL: O25 O32 O38
    Date: 2016
  11. By: Asongu, Simplice; Nwachukwu, Jacinta
    Abstract: This study assesses the mobile phone in the diffusion of knowledge for better governance in sub-Saharan Africa for the period 2000-2012. For this purpose we employ Generalised Method of Moments with forward orthogonal deviations. The empirical evidence is based on three complementary knowledge diffusion variables (innovation, internet penetration and educational quality) and ten governance indicators that are bundled and unbundled. The following are the main findings. First, there is an unconditional positive effect of mobile phone penetration on good governance. Second, the net effects on political, economic and institutional governances that are associated with the interaction of the mobile phone with knowledge diffusion variables are positive for the most part. Third, countries with low levels of governance are catching-up their counterparts with higher levels of governance. The above findings are broadly consistent with theoretical underpinnings on the relevance of mobile phones in mitigating bad governance in Africa. The evidence of some insignificant net effects and decreasing marginal impacts may be an indication that the mobile phone could also be employed to decrease government quality. Overall, this study has established net positive effects for the most part. Five rationales could elicit the positive net effects on good governance from the interaction between mobile phones and knowledge diffusion, among others, the knowledge variables enhance: reach, access, adoption, cost-effectiveness and interaction. In a nut shell, the positive net effects are apparent because the knowledge diffusion variables complement mobile phones in reducing information asymmetry and monopoly that create conducive conditions for bad governance. The contribution of the findings to existing theories and justifications of the underlying positive net effects are discussed.
    Keywords: Mobile phones; Governance; Africa
    JEL: G20 O38 O40 O55 P37
    Date: 2016–03
  12. By: Asongu, Simplice A; Singh, Pritam; Le Roux, Sara
    Abstract: This study examines the efficiency of tools for fighting software piracy in the conditional distributions of software piracy. Our paper examines software piracy in 99 countries for the period 1994-2010, using contemporary and non-contemporary quantile regressions. The intuition for modelling distributions contingent on existing levels of software piracy is that the effectiveness of tools against piracy may consistently decrease or increase simultaneously with increasing levels of software piracy. Hence, blanket policies against software piracy are unlikely to succeed unless they are contingent on initial levels of software piracy and tailored differently across countries with low, medium and high levels of software piracy. Our findings indicate that GDP per capita, research and development expenditure, main intellectual property laws, multilateral treaties, bilateral treaties, World Intellectual Property Organisation treaties, money supply and respect of the rule of law have negative effects on software piracy. Equitably distributed wealth reduces software piracy, and the tendency not to indulge in software piracy because of equitably distributed wealth increases with increasing software piracy levels. Hence, the negative degree of responsiveness of software piracy to changes in income levels is an increasing function of software piracy. Moreover the relationships between policy instruments and software piracy display various patterns, namely: U-shape, Kuznets-shape, S-shape and negative thresholds. A negative threshold represents negative estimates with increasing negative magnitude throughout the conditional distributions of software piracy. We also discuss the policy implications of our study.
    Keywords: Intellectual property rights; Panel data; Software piracy
    JEL: F42 K42 O34 O38 O57
    Date: 2016–02
  13. By: Tan, Zhibo; Zhang, Xiaobo
    Abstract: Facing scarcity of a production factor, a firm can develop technologies to either substitute the scarce factor (price effect) or complement the more abundant factors (market size effect). Whether the market size effect or the price effect dominates largely depends on the elasticity of substitution among factors according to the theory of directed technical change. However, it is a great challenge to empirically test the theory because factor prices are often endogenously determined. In this paper, we use imbalanced sex ratios across Chinese provinces as a source of identification strategy to test how female labor scarcity affects corporate innovation based on the matched dataset of annual surveys of industrial firms in China and the national patent database. In regions with a large male population, female-intensive industries face more serious problems finding female workers than their male-intensive counterparts. We find that such female shortages have spurred firms in female-intensive industries to innovate more. The pattern is much more evident in industries with low substitution between female and male workers than in those with high substitution, consistent with the predictions of directed technical change theory.
    Keywords: CHINA, EAST ASIA, ASIA, prices, markets, labor, technology, innovation, gender, factor endowment, directed technical change, price effect, market size effect, elasticity of substitution, O31 Innovation and Invention: Processes and Incentives, O32 Management of Technological Innovation and R&, D, J21 Labor Force and Employment, Size, and Structure,
    Date: 2016
  14. By: Ignacio L. De León; José Fernández Donoso (School of Business and Economics, Universidad del Desarrollo)
    Abstract: This document analyzes the perception of small innovative enterprises (SIE) in Latin America towards the effectiveness of the legal protection of intellectual property rights (IPR). To analyze the costs of using IPR, we surveyed 352 SIEs from Chile, Colombia, Costa Rica, Ecuador, Mexico, and Peru. We found evidence of SIEs not knowing how the IP system works, and most of them considering that knowing how it works is not important for business performance. We find strong differences between countries in the need to hire legal services to apply for IPR. We also fin differences in the perception of the IP system efficiency, and the evaluations are not related to the country´s IPR enforcement (Park 2008). We also find differences in the perception of disadvantage to protect their IPR if imitated by a big firm. This difference is related to the country´s IPR enforcement
    Keywords: Intellectual property rights, intellectual capital, Innovation, Latin America, Small business, Entrepreneurship
    Date: 2016–08
  15. By: Kundolf, Stefan; Küpper, Patrick; Margarian, Anne; Wandinger, Christian
    Abstract: Das Bundesministerium für Ernährung und Landwirtschaft suchte mit seinem Modellvorhaben LandZukunft von 2012 bis 2014 nach neuen Wegen, um anhaltende sozioökonomische Probleme in peripheren ländlichen Regionen zu lösen. Dazu sollten das aus der Managementlehre bekannte Instrument des Steuerns über Ziele, neue Finanzierungsinstrumente wie Mikrokredite und die Beteiligung neuer 'unternehmerischer Menschen' in vier Modellregionen erprobt werden. Die Begleitforschung untersuchte in ihrer zweiten Phase von 2014 bis 2015, inwiefern das Modellvorhaben zum Lernen und Kapazitätsaufbau in den teilnehmenden Regionen beigetragen hat sowie neue und dauerhafte Lösungen für die Herausforderungen peripherer Regionen anstoßen konnte. Darüber hinaus wurde das Steuern über Ziele hinsichtlich seines Potentials zur Koordination der ländlichen Entwicklung im politischen Mehrebenensystem untersucht. Der thematische Fokus der Begleitforschung jenseits dieser Querschnittsthemen ergab sich aus den unterschiedlichen Aktivitäten der Modellregionen: die Stärkung lokaler Bildungslandschaften, die touristische Destinationsentwicklung, die Entwicklung neuer Finanzierungsangebote, Finanzierung und Strategien sozialen Unternehmen sowie die mögliche Rolle großer Bildungseinrichtungen für die ländliche Entwicklung. Neben der Auswertung des Forschungsstandes und von Dokumenten basieren die Ergebnisse insbesondere auf Befragungen von beteiligten Akteuren und teilnehmender Beobachtung in den vier Modellregionen. Die Forschungsergebnisse zeigen, dass das Modellvorhaben in den Regionen auf großes Engagement gestoßen ist. Die schnelle Umsetzung des Vorhabens war aber mit großem Aufwand und hohen Kompetenzanforderungen verbunden, die nicht überall vorausgesetzt werden können. Das Steuern über Ziele birgt die Gefahr von Interessenkoalitionen zwischen Kontrolleuren und Kontrollierten, um die Fördermittel auszugeben und Ergebnisse positiv nach außen darzustellen. Lernprozesse konzentrierten sich auf die Fähigkeiten, die nötig waren, um das Modellvorhaben finanziell abzuwickeln, während strategische Veränderungen und institutionelle Anpassungsprozesse wesentlich seltener zu beobachten waren. Nachhaltige Entwicklungen konnten vor allem dort angestoßen werden, wo an vorhandene Kompetenzen und Kapazitäten angeknüpft wurde. Aufbauend auf diesen Erkenntnissen leitet die Begleitforschung Handlungsempfehlungen ab. So sollte beispielsweise das Steuern über Ziele nur dann für die ländliche Entwicklung in Betracht gezogen werden, wenn Innovationen nicht im Vordergrund stehen, sodass bereits Erfahrungswerte für mögliche Zielwerte und deren Verhandlung zwischen den Vertragspartnern vorliegen. Zudem sollte der thematische Fokus der Strategie möglichst eng gewählt werden, um die Definition und Kontrolle der Ziele sowie die Aneignung des nötigen Wissens zu erleichtern.
    Abstract: The Federal Ministry of Food and Agriculture conducted the pilot program LandZukunft (2012-2014) in order to search for new solutions to persistent socio-economic problems in peripheral rural regions. The program aimed at testing management by objectives known from management studies, new financial instruments like microcredits, and the involvement of new 'entrepreneurial people' in four regions. The accompanying research addressed in its second phase (2014-2015) the questions, how the pilot program contributed to learning and capacity building in the participating regions and to what extent it has initiated new and sustaining solutions to challenges in peripheral regions. Moreover, we evaluated the management by objectives as a tool to coordinate rural development processes in a multi-level system. Beyond these crosscutting topics, we derived thematic foci from the manifold activities implemented in the model regions: strengthening local educational landscapes, developing a tourist destination, introducing new financing instruments, funding and strategies of social enterprises, and potentials of large educational institutions for rural development. In addition to a literature review and document analysis, we particularly interviewed actors involved and used participatory observations in order to answer our research questions. The results demonstrate the huge commitment of local actors in the regions. However, the immediate implementation of the program required large efforts and high skills which may lack at least in the beginning. Management by objectives runs the risk of interest coalitions between controlling and controlled actors in order to spend budgets provided and to demonstrate success stories. Regional partnerships learnt essentially to use the funding instrument of the pilot pro-gram. We observed in contrast only few strategy changes or institutional adaptations. Sustainable developments were particularly initiated if these activities were based on existing capabilities and capacities. In conclusion, we derived policy recommendations from our findings. Rural development policy should for instance refrain from using management by objectives if innovative actions are the predominant goal of the policy. Because management by objectives requires some experience to estimate and justify targets and the bargaining thereof between the contract partners, it is not suitable for innovative approaches. Furthermore, strategies pursued should be tightly focused in order to facilitate defining and controlling targets as well as acquiring the expertise needed.
    Keywords: Ländlicher Raum,Peripherisierung,ländliche Entwicklung,Multi-level-Governance,regionales Lernen,Kapazitätsaufbau,New Public Management,Steuern über Ziele,Strategieentwicklung,Planungsmodelle,Institutionenwandel,regionale Partnerschaft,rurale und regionale Governance,Regionalbudgets,Implementation,Bottom-up-Prozesse,Destinationsentwicklung,regionale Bildungspolitik,Unternehmertum,Gemeinnützige Organisationen und öffentliche Unternehmen,Humankapital,Soziale Innovation,Regionalentwicklung,Regionalpolitik
    JEL: H11 H70 L26 L30 M14 O15 O22 O35 R58
    Date: 2016
  16. By: Rötter, Reimund; Sehomi, Fanou; Höhn, Jukka; Niemi, Jarkko; van den Berg, Marrit
    Abstract: The major challenge of the 21st century is to achieve food security under, roughly, a doubling in food demand by 2050 compared to present, and producing the additional food under marked shifts in climatic risks and with environmentally sound farming practices. Sustainable intensification of agricultural production is required that meets the dual goal of improved environmental sustainability and economic efficiency. Ex ante evaluation of technological innovations to support agricultural production and food security taking into account the various future risks can substantially contribute to achieve this. Here we perceive technological innovations as new or improved agro-technologies and –management practices, such as new breeds, integrated soil fertility practices or labour-saving technologies meeting the goals of sustainable intensification. In this report we present results from three systematic reviews: one on the use of biophysical modelling, the second and third on the use of bio-economic modelling at farm scale and agro-economic modelling at higher aggregation levels, for ex ante evaluation of the effects of (agro ) Technological Innovations (ag-TIs) on sustainable agriculture and food security indicators. To this end, we searched the SCOPUS database for journal articles published between 1996 and 2015. We considered modelling studies at different spatial scales with particular attention to local to national scale studies for the twelve PARI focal countries in Africa . But we also included studies for all other African countries as well as a few studies at supra-national/continental scale. Both, “quick wins” as well as long term benefits from ag-TIs were of interest. The various ag-TIs were furthermore grouped into four classes: (1) water/soil moisture (2) soil nutrients/conservation (3) crop/cropping system, (4) other ag-TIs or (5) combinations of 1 to 4. For each paper, we tried to identify the primary ag-TI analysed, and if there was equal emphasis to more than one, we classified them as combinations. It should be borne in mind that there is some subjectivity in classifying the papers in this way. Results. After various steps of refining “search strings”, screening on relevance and supplementing databases from additional sources, we found 140 relevant biophysical modelling studies, whereby coverage of sub-regions and ag-TIs varied markedly. Most studies were found for East and West Africa, followed by Southern Africa; hardly anything was found for Northern and Middle Africa . A similar pattern appeared for the integrated agro-economic modelling studies at farm scale, for which we found 40 relevant ones. Agro-economic modelling studies at higher aggregation levels showed a somewhat different pattern – and more generally contained little detail on technological innovations. Regarding the share of different primary agro-technologies explored in the biophysical studies we found 45 on crop management, 35 on combined agro-technologies, 31 on soil nutrient management and conservation, 23 on water/soil moisture management, and 6 on other technologies. We found similar shares among the various agro-technology groups for the integrated agro-economic modelling studies at farm scale. Looking at the outcomes from ex ante evaluations we found that many studies are (mostly) positive on effects of single and “conventional” ag-Tis. The majority of biophysical studies is performed at “field scale” and focuses on the effects on productivity (sometimes yield stability); many of these studies were performed in climate variability and change /adaptation research context. Most agro-economic modelling studies that look specifically at ex ante evaluations of ag-TIs are performed at farm or regional (sub-national) scales. While the number of biophysically oriented studies has grown exponentially over the considered period 1996-2015, this is not the case for the agro-economic modelling studies. Looking in more detail at the twelve focal countries of PARI (=Programme of Accompanying Research on Agricultural Innovations) we also find an unbalanced distribution, with most studies found in Kenya, Ethiopia, Mali and Ghana (biophysical modelling studies), and respectively in Kenya and Uganda (agro-economic modelling studies), whereas nothing or little was found for both types of studies in Togo, Zambia and Nigeria. Very few of the biophysically-oriented studies include other information than effects on crop yields, and there are few studies for both biophysical and agro-economic modelling that comprise multi-scale or higher scale analyses; if multi-scale, there are more studies that scale up from field/farm to regional/sub-national level than from field/farm to nation scale or beyond. There is definitely a need to overcome the lack of meaningful integrated multi-scale modelling along the lines proposed in chapters 5-6 of this report. Moreover, less than half of all integrated /agro-economic modelling studies at farm scale explicitly address risk – another clear shortcoming, which requires attention by the research community. A more general conclusion is that there is no application yet of true transdisciplinary research approaches in practice. Hence, there is need for participatory, collaborative (cross-sectoral) and combined modelling approaches with adequate stakeholder involvement throughout the research process. In this respect, some lessons might be learned from pioneering work conducted in Asia and Europe.
    Keywords: Africa, agricultural system models, agro-economic modelling, biophysical modelling, ex ante evaluation, risk, technological innovation, yield variability, Risk and Uncertainty, C61, C63, C65, C68, D81, O32,
    Date: 2016–07
  17. By: Xavier Jaravel (Harvard)
    Abstract: This paper shows that product innovations disproportionately benefit high-income households due to increasing inequality and the endogenous response of supply to market size. Using detailed product-level data in the retail sector in the United States, the paper shows that from 2004 to 2013 annualized quality-adjusted inflation has been 0.65 percentage points lower for high-income households, relative to low-income households. Using national and local changes in market size driven by demographic trends plausibly exogenous to supply factors, the paper then provides causal evidence that a shock to the relative demand for goods (1) affects the direction of product innovations, and (2) leads to a decrease in the relative price of the good for which demand became relatively larger (i.e. the long-term supply curve is downward sloping). A calibration shows that this effect is sufficiently strong to explain most of the observed difference in quality-adjusted inflation rates across the income distribution.
    Date: 2016
  18. By: Asongu, Simplice; Nwachukwu, Jacinta
    Abstract: The success of inclusive development strategies in the post-2015 sustainable development agenda depends substantially on the adoption of common inclusive development policies among nations. Building on the relevance of a knowledge economy in the post-2015 development agenda, this study models the feasibility of common policies for inclusive human development in Sub-Saharan Africa (SSA). More specifically, we investigate the complementary role of knowledge diffusion in the inclusive benefits of mobile phone penetration in SSA from 2000 to 2012 by employing the Generalised Method of Moments. Knowledge diffusion variables include educational quality, innovation and internet penetration. The main finding is that inclusive human development is persistently conditional on mobile phones in knowledge diffusion. Moreover, countries with low levels of inclusive human development are catching-up their counterparts with higher development. Policy implications are discussed with particular emphasis on how to leverage common knowledge economy initiatives for inclusive development.
    Keywords: Mobile phones; catch-up; inclusive human development; Africa
    JEL: G20 I10 I32 O40 O55
    Date: 2016–03
  19. By: Steven N. Kaplan; Josh Lerner
    Abstract: This paper describes the available data and research on venture capital investments and performance. We comment on the challenges inherent in those data and research as well as possible opportunities to do better.
    JEL: G24 L26
    Date: 2016–08

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