nep-ino New Economics Papers
on Innovation
Issue of 2016‒09‒18
23 papers chosen by
Uwe Cantner
University of Jena

  1. International Research Networks: Determinants of Country Embeddedness By Holger Graf; Martin Kalthaus
  2. Micro-entrepreneurs in Rural Burundi: Innovation and Contestation at the Bottom of the Pyramid By Katarzyna Cieslik
  3. Quality Growth: From Process to Product Innovation Along the Path of Development By Esteban Jaimovich
  4. Do Stronger Patents Stimulate or Stifle Innovation? The Crucial Role of Financial Development By Chu, Angus C.; Cozzi, Guido; Pan, Shiyuan; Zhang, Mengbo
  5. How do collaboration and investments in knowledge management affect process innovation in services? By Ashok, Mona; Narula, Rajneesh; Martinez-Noya, Andrea
  6. Trade Liberalisation and Optimal R&D Policies in a Model of Exporting Firms Conducting Process Innovation By Thanh Le; Cuong Le Van
  7. Colocation and knowledge diffusion: evidence from million dollar plants By Christian Fons-Rosen; Vincenzo Scrutinio; Katalin Szemeredi
  8. When Innovation Meets Tradition: The Case of “Riso & Rane” Rural District in Lombardy Region By Ferrazzi, Giovanni; Ventura, Vera; Ratti, Sabrina; Balzaretti, Claudia
  9. River deep, mountain high: Of long-run knowledge trajectories within and between innovation clusters By Nomaler, Onder; Verspagen, Bart
  10. Innovation and Interactions: A Bibliometrics Study on intra‐firm Coordination By de Avila Santos, João Heitor; de Barcellos, Marcia Dutra; Sauvée, Loïc
  11. Fiscal incentives for R&D and innovation in a diverse world By Thomas Neubig; Fernando Galindo-Rueda; Silvia Appelt
  12. Inward FDI and innovation in transitional countries By Allan Webster
  13. Essays on patent litigation By Xia Liu
  14. Anticipating the Future: Scenarios for Resilient Institutions in Agricultural Research and Innovation By Poppe, Krijn; Floor, Geerling‐Eiff; Trond, Selnes
  16. Leadership-driven Ideation: The Cognitive Effects of Directive Feedbacks on Creativity By Hicham Ezzat; Marine Agogué; Mathieu Cassotti; Pascal Le Masson; Benoit Weil
  17. UIDAI's Public Policy Innovations. By Sharma, Ram Sewak
  18. Production networks in the wind turbine industry, which place for developing countries in East Asia? By Hoai-Son Nguyen; Minh Ha-Duong
  19. Reference Price Formation for Product Innovations – the Role of Consistent Price-Value-Relationships By Peschel, Anne Odile; Zielke, Stephan; Scholderer, Joachim
  20. Solution-oriented versus Novelty-oriented Leadership Instructions: Cognitive Effect on Creative Ideation By Hicham Ezzat; Marine Agogué; Pascal Le Masson; Benoit Weil
  21. The effect of entry on R&D networks By Emmanuel Petrakis; Nikolas Tsakas
  22. Distributive Conflict, Growth, and the ‘Entrepreneurial State’. By Daniele Tavani; Luca Zamparelli
  23. Entrepreneurial heterogeneity and the design of entrepreneurship policies for economic growth and inclusive development By Calza, Elisa; Goedhuys, Micheline

  1. By: Holger Graf (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Martin Kalthaus (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: We analyze the evolution of the international collaboration network in photovoltaic research. Using data on scientific publications for the period 1980-2015, we apply social network analysis to trace the evolution of the global network of countries and national research networks of organizations. Our objective is to identify the determinants of countries' international research embeddedness by looking at national policies and structural properties of the national research networks. We observe a steady increase of publications and collaboration within the global research network. While there is a small group of countries that remains central throughout all years, several countries emerge and catch up while others lose their relative position.We find that cohesion and connectedness of the national system positively affect research output as well as international embeddedness, whereas centralized systems are less embedded. Policy, especially demand side instruments, has a positive effect on publication output and embeddedness.
    Keywords: International Collaboration, Research Network, Photovoltaics, Instrument Mix, Bibliographic Data
    JEL: L14 O31 O38 Q42
    Date: 2016–09–13
  2. By: Katarzyna Cieslik
    Abstract: Present-day development theory and practice highlight the potential of micro-entrepreneurship for poverty reduction in least developed countries. Fostered by the seminal writings of microfinance founder Muhammad Yunus and the bottom-of-the-pyramid propagator Krishnarao Prahalad, the new approach is marked by a stress on participation and sustainability, and the new, market-based development models. With the growing popularity of the new approach there has been an increased demand for research on the efficacy and impact of innovations. What has scarcely been addressed, however, is the legitimacy of the new paradigm within its contexts of application. Since engagement and participation have been made the focal point of the new approach, my research investigates how the innovative, mostly market-based models have been received by the local populations on the ground. This doctoral dissertation is looking up-close at the rural populations of Burundi, describing and explaining their perceptions, behaviors and actions in response to the market-based development innovations: microfinance, rural entrepreneurship and community social enterprise. Do the concepts of entrepreneurship, community engagement and participation find a fertile ground among the poorest rural dwellers of sub-Saharan Africa? Can subsistence farmers be entrepreneurs? How to create social value in the context of extreme resource scarcity? It is investigating these and other questions that guided the subsequent stages of my work. I based my dissertation on extensive field research, conducted periodically over the period of four years in the remote areas of rural Burundi.In the first chapter, I question the applicability of entrepreneurship-based interventions to the socio-cultural context of rural Burundi. Basing my quantitative analysis on a unique cross-section dataset from Burundi of over 900 households, I look into the entrepreneurial livelihood strategies at the near-subsistence level: diversifying crops, processing food for sale, supplementary wage work and non-agricultural employment. I find that the farmers living closer to the subsistence level are indeed less likely to pursue innovative entrepreneurial opportunities, unable to break the poverty cycle and move beyond subsistence agriculture. The paper contributes to the ongoing debate on by analyzing its drivers and inhibitors in the context of a subsistence economy. It questions the idea of alleviating rural poverty through the external promotion of entrepreneurship as it constitutes ‘a denial of the poor’s capacity for agency to bring about social change by themselves on their own terms’.Drawing on these findings, the second chapter focusses on the role of local communities as shareholders of projects. The aim of this paper is to investigate the ways in which the agrarian communities in rural Burundi accommodate the model of a community social enterprise. The project understudy, implemented by the UNICEF Burundi Innovation Lab, builds upon the provision of green energy generators to the village child protection committees in the energy-deficient rural regions of the country. The electricity-producing machines are also a new income source for the groups, transforming them into economically viable community enterprises. Since the revenue earned is to directly support the village orphans’ fund, the communities in question engage in a true post-development venture: they gradually assume the role of the development-provisioning organizations.The third chapter of this work focusses on the complex interaction between the microfinance providers and the population of its clients and potential clients: the rural poor. It draws on the existing research on positive deviance among African communities and explores the social entrepreneurial potential of the rule-breaking practices of microfinance programs’ beneficiaries. Using the storyboard methodology, I examine the strategies employed by the poor in Burundi to bypass institutional rules. My results suggest that transgressive practices and nonconformity of development beneficiaries can indeed be seen as innovative, entrepreneurial initiatives to reform the microfinance system from within, postulating a more participatory mode of MFIs’ organizational governance. The three empirical chapters provide concrete examples illustrating the contested nature of the development process. In the last, theoretical, chapter, I examine how the different conceptualizations of social entrepreneurship have been shaped by the disparate socio-political realities in the North and in the South. I then analyze how the process of constructing academic representation has been influenced by the prevalent public discourses.Since doubling or tripling of the external development finance has not sufficed to bring about systemic change, the assumption that technology, managerial efficacy and the leveraging power of financial markets could be applied to solving the problem of persisting global poverty has a lot of appeal. At the same time, my findings point to the fact that if the ultimate objective of development is broadly defined value creation, the definition of what constitutes value should be negotiated among all the stakeholders. The dissertation makes an important contribution to the understanding of participation, entrepreneurship and community engagement in the context of development studies.I strongly believe that development organizations must have a quality understanding of the social and cultural characteristics of the need or problem they are targeting in order to make productive decisions about the application and scaling of interventions. I very much hope that my work can provide some guidance for their work on the ground.
    Keywords: social entrepreneurship, micro-entrepreneurship, agrarian economy, positive deviance, Burundi
    Date: 2016–01–04
  3. By: Esteban Jaimovich (University of Surrey)
    Abstract: We propose a demand-driven growth theory where process innovations and product innovations fulfil sequential roles along the growth path. Process innovations must initially set the economy on a positive growth path. However, process innovations alone cannot fuel growth forever, as their benefits display an inherent tendency to wane. Product innovations are therefore also needed for the economy to keep growing in the long run. When the economy fails to switch from a growth regime steered by process innovation to one driven by product innovation, R&D effort and growth will eventually come to a halt. However, when the switch to a product innovation growth regime does take place, a virtuous circle gets ignited. This happens because product innovation effort not only keeps growth alive when incentives to undertake process innovation diminish, but it also regenerates profit prospects from further process innovation effort.
    JEL: O30 O31 O41
    Date: 2016–07
  4. By: Chu, Angus C.; Cozzi, Guido; Pan, Shiyuan; Zhang, Mengbo
    Abstract: This study explores the effects of patent protection in a distance-to-frontier R&D-based growth model with financial frictions. We find that whether stronger patent protection stimulates or stifles innovation depends on credit constraints faced by R&D entrepreneurs. When credit constraints are non-binding (binding), strengthening patent protection stimulates (stifles) R&D. The overall effect of patent protection on innovation follows an inverted-U pattern. An excessively high level of patent protection prevents a country from converging to the world technology frontier. A higher level of financial development influences credit constraints through two channels: decreasing the interest-rate spread and increasing the default cost. Via the interest-spread (default-cost) channel, patent protection is more likely to have a negative (positive) effect on innovation under a higher level of financial development. We test these results using cross-country regressions and find supportive evidence for the interest-spread channel.
    Keywords: Patent protection, credit constraints, economic growth, convergence
    JEL: E44 O31 O34
    Date: 2016–09
  5. By: Ashok, Mona (Henley Business School); Narula, Rajneesh (Henley Business School); Martinez-Noya, Andrea (Spanish Ministry of Economy and Competitiveness)
    Abstract: Purpose: Despite the keen interest in radical and incremental innovation, few studies have tested the varying impact of firm-level factors in service sectors. This paper analyses how collaboration with existing and prospective users, and investments in knowledge management (KM) practices can be adapted to maximise the outputs of radical and incremental process innovation in a Knowledge-Intensive Business Service (KIBS) industry. Methodology: Original survey data from 166 Information Technology Service (ITS) firms and interviews with 13 executives provide the empirical evidence. PLS-SEM is used to analyse the data. Findings: Collaboration with different types of users, and investments in KM practices affect radical versus incremental process innovation differently. Collaboration with existing users influences incremental process innovation directly, but not radical innovation; and prospective user collaboration matters for radical, but not incremental innovation. Furthermore, for radical innovation, investments in KM practices mediate the impact of prospective user collaboration on innovation. Implications: While collaboration with existing users for incremental process innovations does not appear to generate significant managerial challenges, to pursue radical innovations firms must engage in intensive collaboration with prospective users. Higher involvement with prospective users requires higher investment in KM practices to promote efficient intra- and inter-firm knowledge flows. Originality: This study is based on a large-scale survey, together with management interviews. Radical and incremental innovations require engagements with different kinds of users in the service industry, and knowledge management tools.
    Keywords: user collaboration, existing and prospective users, incremental innovation, radical process innovation, KIBS firms, knowledge management, PLS-SEM
    JEL: O32 M15 F23
    Date: 2016–08–19
  6. By: Thanh Le (The University of Queensland [Brisbane]); Cuong Le Van (IPAG BUSINESS SCHOOL - IPAG BUSINESS SCHOOL PARIS, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics)
    Abstract: This paper discusses the impact of trade liberalisation and R&D policies on exporting firms' incentive to innovate and social welfare. Key factors determining the government's optimal policy are the strength of R&D spillover effect and the toughness of firm competition. When firms only compete in an overseas market, the optimal policy is to tax R&D. Trade liberalisation in the overseas market induces a higher R&D tax rate to be imposed on firms. When firms also conduct business in the home market, the government should financially support firms' R&D. Trade liberalisation always increases firms' output sales, R&D investments, and social welfare.
    Keywords: Trade,R&D spillovers,subsidies,welfare,process innovation
    Date: 2016–03
  7. By: Christian Fons-Rosen; Vincenzo Scrutinio; Katalin Szemeredi
    Abstract: This paper uses the entry of large corporations into U.S. counties during the 1980s and 1990s to analyse the effect of plant opening on knowledge spillovers to local inventors. We use a difference-in-differences identification strategy exploiting information on the revealed ranking of possible locations for large plants in the US. Under the identifying assumption that locations not chosen (losers) are a counterfactual for the chosen location (winner), we find that patents of these large corporations are 68% more likely to be cited in the winning counties relative to the losing counties after entry. The effect materializes after the opening of the plant, rather than after the entry decision itself. The increase in citations is stronger for more recent patents whereas patent quality does not seem to play an important role. We find that the increase in citations is larger from patents belonging to the same technology class of the cited patent.
    Keywords: productivity; innovation; knowledge diffusion
    JEL: O3 R11 R12
    Date: 2016–08
  8. By: Ferrazzi, Giovanni; Ventura, Vera; Ratti, Sabrina; Balzaretti, Claudia
    Abstract: Lombardy, with 87.393 hectares of rice is one of the leader region for this production in Italy and in the European Union (EU) too. This area is characterized by a strong connection with tradition both in terms of agricultural landscape and food culture. Nevertheless, during the last decade, farmers faced increasing competitiveness issues, mostly related to EU subsidies losses, market prices and the technical constraints of the traditional rice supply chain: provider of technical means, farmers, brokers and rice mill. In this scenario, the “Riso e Rane” Rural District (R&RD) supports farmers in improving competitiveness through innovation. The aim of the paper is to investigate the innovation in the rice supply chain related to the specific action of R&RD, that accounts for 60 farms. Starting from the direct survey carried out on the district productive structures, we investigate the farms' degree of innovation related to the adoption of a new model of supply chain. The case study areas is characterized by rice that represents the most important culture with 2.773 hectares (more than 58% of the district Utilized Agricultural Area (UAA)). In 2012, R&RD won a regional project titled “Buono, Sano e Vicino” with the aim to help local rice farmers developing an alternative supply chain in which the district grow into the local actor to increase farmers bargaining power and promotes new market strategies. To make this the attention was focused on one of the most important variety of Italian rice: Carnaroli. The main results of the study showed that the project was able to innovate the traditional supply chain in all the four innovation areas according to OECD (2005): product, process, market and organization. In conclusion, our results suggest that the R&RD is able to respond to farmers necessities in term of market competitiveness and to improve the sustainability of local food system.
    Keywords: Innovation, Rural District, Supply chain, Agribusiness, Community/Rural/Urban Development,
    Date: 2016–05
  9. By: Nomaler, Onder (UNU-MERIT, and Eindhoven University of Technology); Verspagen, Bart (UNU-MERIT, and Maastricht University, SBE)
    Abstract: We bring together the topics of geographical clusters and technological trajectories, and shift the focus of the analysis of regional innovation to main technological trends rather than firms. We define a number of inventive clusters in the US space and show that long chains of citations mostly take place between these clusters. This is reminiscent of the idea of global pipelines of knowledge transfer that is found in the geographical literature. The deep citations are used to identify technological trajectories, which are the main directions along which incremental technological progress accumulates into larger changes. While the origin and destination of these trajectories are concentrated in space, the intermediate nodes travel long distances and cover many locations across the globe. We conclude by calling for more theoretical and empirical attention to the "deep rivers" that connect the "high mountains" of local knowledge production.
    Keywords: patent citations, regional concentration of inventive activities, technological trajectories, regional clusters, technological trends
    JEL: O33 O31 R11
    Date: 2016–09–14
  10. By: de Avila Santos, João Heitor; de Barcellos, Marcia Dutra; Sauvée, Loïc
    Abstract: The way the firm uses its technological resources and competences, the ability to combine/recombine components, methods, processes and techniques to offer products and services plays a central role on the innovation process (AFUAH, 2002). As Indarti (2010) points out, the interactions are a key element in the process of gaining access to, acquire, and develop knowledge for the stimulation of a firm’s activities in the field of innovation. From the intra‐firm perspective, to innovate, Paruchuri (2010) argues that a firm that can improve the diffusion of knowledge internally will benefit from enhanced innovative activity. Aalbers (2015) reflecting on the governance of knowledge sharing inside organizations, suggest that knowledge may come to be difficult to transfer because of the boundaries dynamics. In light of these authors insights the aim of this paper is to present an overview of the research regarding Interactions, Innovation and Intra‐firm Coordination. For that, we performed a bibliometrics study within the Web of Science (WoS) and the Elsevier’s Scopus libraries. A final sample of 111 papers were built after several refinements. The results suggest a growing tendency of the publications on the subject. The most cited papers have a gap of almost twelve years in between it, which shows that the construction of knowledge, about the topics innovation interactions and intra‐firm coordination are still attached to what was published a long time ago, for the initiators of this research field, but the works of Dolfsma et al (2008) and Leendert et al (2015) shows us a new trend and that new researchers are using these brand new works as references to perform new studies.
    Keywords: Innovation, Interactions, Coordination, Intra‐firm, Bibliometrics, Agribusiness,
    Date: 2016–05
  11. By: Thomas Neubig; Fernando Galindo-Rueda; Silvia Appelt
    Abstract: Public policy has an important role to play in promoting research and development (R&D) the development, diffusion, and use of new knowledge and innovations. Fiscal incentives, including tax policies, should be directed at specific barriers, impediments or synergies to facilitate the desired level of investment in R&D and innovations. Without careful design, policies can have unintended consequences such as favouring incumbent firms, encouraging small firms to undertake less efficient activities, or creating arbitrage and rent-seeking activity. R&D tax policy needs to be considered in the context of the country’s general tax policies, its broader innovation policy mix and its other R&D support policies. More R&D activity in one country does not necessarily result in an overall increase in global innovation if it is simply shifted from another country. More research is needed to determine the extent to which R&D fiscal incentives in one country increase overall R&D, the quality of that R&D, and its positive spillovers to other sectors of the economy and other countries. Les incitations fiscales en faveur de la R-D et de l'innovation dans un monde diversifié La politique publique a un rôle important à jouer pour promouvoir la recherche et le développement, la création, la diffusion et l’utilisation de nouvelles connaissances et d’innovations. Les incitations fiscales, y compris les politiques fiscales, doivent cibler des obstacles, freins ou synergies spécifiques de manière à obtenir le niveau souhaité d’investissements dans la R-D et dans l’innovation. Si elles ne sont pas soigneusement conçues, ces politiques peuvent avoir des conséquences fortuites, comme favoriser les entreprises en place, inciter les petites entreprises à entreprendre des activités moins efficientes ou ouvrir la voie à l’arbitrage et à la recherche de rentes. Les mesures fiscales en faveur de la R-D doivent être appréhendées dans le contexte des politiques fiscales générales du pays, de l’ensemble des actions menées en faveur de l’innovation et de ses autres politiques d’aide à la R-D. Une intensification des activités de R-D dans un pays n’entraîne pas nécessairement une augmentation globale de l’innovation mondiale si elle correspond à un simple transfert d’un autre pays. Des travaux supplémentaires sont nécessaires pour déterminer dans quelle mesure les incitations fiscales en faveur de la R-D dans un pays augmentent le niveau global de R-D, la qualité de cette R-D et ses retombées positives dans d’autres secteurs de l’économie et dans d’autres pays.
    Date: 2016–09–13
  12. By: Allan Webster (Bournemouth University, Executive Business Centre)
    Abstract: This study empirically examines the relationship between innovation and foreign ownership for a large sample of firms in 29 transitional countries, taken from the 2013 BEEPS survey. The analysis is based on two different aspects of FDI theory – technology transfer and strategic asset seeking (with respect to R&D). It finds that firms who innovate with respect to new products, new processes and new management techniques have, on balance, more foreign ownership than those who do not. The evidence supports a view that strategic asset seeking is associated with inward FDI. It also supports the view that technology transfer is also an important feature of the relationship between innovation and FDI in transitional countries. Of the two effects the technology transfer effect is of more consequence than the strategic asset seeking effect.
    Keywords: FDI; innovation; transition; firm; technology transfer; strategic asset seeking
    JEL: F23 O30 P20
    Date: 2016–07
  13. By: Xia Liu
    Abstract: This thesis comprises three chapters with the patent litigation as a central theme. The first chapter develops a methodology to compare the quality of patent litigation systems in six major economies: United States, United Kingdom, Germany, Japan, Korea, China. Quality is defined as whether it provides a fair and just legal environment for nullifying weak patents and adjudicating infringement actions. Ultimately, this study presents heterogeneity in the quality of the sample systems. Litigation systems with rigorous and predictable adjudication have a low risk of opportunistic and anti-competitive filings.In the second paper (Chapter 2), I explore the relationship between technology ownership frag- mentation and the opposition filing in European Patent Office (EPO). I develop a two-stages game, in which opposition can be used for an ex ante negotiation (e.g. licensing). The framework presents that high litigation risk happens under two kinds of conditions: when the ownership to external technologies is highly concentrated, profit dissipation is over the licensing revenue for the potential licensee; when the ownership to external technologies is widely fragmented, transaction cost is high for the entrance. That is, the opposition, replacing the licensing, will be frequently used. To empirically test this hypothesis, we use a data set that covers patent opposition cases during the period 1985-2005, and construct application-based “fragmentation index”. Finally, regression results confirm that opposition likelihood displays an U-shape re- lationship with the number of potential technology suppliers. Besides, the effect of ownership patterns is stronger in discrete product industries. This analysis controls for differences in filing, granted rate and other technological observed characteristics. Results are robust to alternative estimation strategies that account for over-dispersion in the patent counts data and industry heterogeneity.The third paper proposes that system designs influence the incidence of patent litigation risk. I construct three one-to-one matching data sets by total 2748 European patents, which includes 916 patents without any challenge, 916 patents having been challenged in the opposition at the European Patent Office (EPO), and 916 having been challenged in Germany Federal Patent Court (BPatG). the EPO and the BPatG follow different procedures to reexamine, amend or revoke a granted decision. To explore different filing patterns in two litigation systems, I provide a much more rigorous definition to describe patent quality: Novelty, Unique, Impact, which has been operationalized and utilized in the technological radicalness literature. By comparing litigated cases to control groups, I find a high degree of significance between opposition risk and ex ante-identifiable factors - Novelty, while a high degree of significance between invalidation trials and ex post indicator of technological radicalness - Impact. Moreover, I also confirm that the filing in the opposition is less constrained with firm’s patent portfolios and technological conditions.
    Keywords: patent; litigation; innovation policy; operationalization; microeconomics
    Date: 2016–09–05
  14. By: Poppe, Krijn; Floor, Geerling‐Eiff; Trond, Selnes
    Abstract: Over the last 20 years several countries have made changes in their Agricultural Knowledge and Innovation Systems (AKIS): institutes for applied research have been put on output‐finance with reduced budgets or have been merged into larger structures (Finland, Italy), sometimes into universities (NL, Dk). Incentives to publish have been strengthened in universities. Private advise is now available all over Europe and competes with public extension. How will or should this develop in the future? The SCAR strategic working group AKIS did a foresight study and identified three scenario’s for AKIS: High Tech, Self‐ Organisation and Collapse. Recommendations are made to make AKIS more robust.
    Keywords: Scenarios, Resilient Institutions, Agricultural Research and Innovation, Agribusiness, Agricultural and Food Policy,
    Date: 2016–05
  15. By: Anna Gerke (Audencia Recherche - Audencia Business School); Geoff Dickson (AUT - Auckland University of Technology); Michel Desbordes (CIAMS - Complexité, Innovation, Activités Motrices et Sportives - UP11 - Université Paris-Sud - Paris 11, UP11 - Université Paris-Sud - Paris 11); Stephen Gates (Audencia Recherche - Audencia Business School)
    Abstract: This study investigates how interorganizational citizenship behavior influences the innovation process. By investigating interorganizational networks and relationships, we offer new perspectives on how these linkages can serve as sources of innovation that lever competitive advantage. We identified seven dimensions of citizenship, and analyzed them with regards to different phases of the innovation process (i.e., idea, invention, exploitation). We integrated the notions of cooperative and collaborative behavior as conditions for citizenship. Our qualitative investigation of the sailing industry cluster in New Zealand demonstrates the utility of citizenship to understand, access, and use external resources to innovate. We find that two dimensions of citizenship – advancement and altruism – are most prevalent during the entire innovation process. Citizenship tends to be embedded in collaborative linkages during the idea and invention phase, but cooperative linkages are sufficient to develop citizenship during the invention and exploitation phase. Further research is necessary to generalize the role of citizenship for the innovation process.
    Keywords: innovation, citizenship, cluster
    Date: 2016–06–01
  16. By: Hicham Ezzat (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Marine Agogué (HEC Montréal - HEC MONTRÉAL); Mathieu Cassotti (LaPsyDE - Laboratoire de Psychologie du Développement et de l'Education de l'enfant - UNICAEN - Université de Caen Basse-Normandie - CNRS - Centre National de la Recherche Scientifique - UPD5 - Université Paris Descartes - Paris 5, CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Benoit Weil (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Leadership and creativity have usually been viewed as antagonist concepts, compromised between two contradictory variables: control and freedom. There is growing evidence that too much leadership control could kill subordinates’ creativity, while in contrary too much freedom could lead them to chaos and disorder. In the past decades, countless researches suggested that in order for creativity to emerge, leaders should grant more freedom and autonomy to their followers. Our hypothesis is that leaders could foster subordinates’ creative ideation capacities by controlling their ideation processes through directive feedbacks. In this study, we explored the influence of directive feedbacks interactively given by a leader at each idea generated by his/her subordinate, throughout a classical creative problem-solving task done online via a distant text conversation. The task consisted of generating as many original solutions as possible that allows that a hen’s egg dropped from a height of ten meters does not break. Results confirmed that leaders’ directive feedbacks were able to drive and guide subordinates’ ideation paths in two distinctive directions, according to leaders’ domain-relevant knowledge and vision for creativity.
    Keywords: Leadership, Creativity, Ideation, Functional Fixedness, Directive Feedback
    Date: 2016–06–01
  17. By: Sharma, Ram Sewak (Telecom Regulatory Authority of India)
    Abstract: The Unique Identification Authority of India (UIDAI) was mandated to issue unique identification numbers to every resident of India. The Authority has largely accomplished this mandate in a short time and within budget because it took many innovative and bold decisions. The first innovative decision we consider, in this paper, is the UIDAI's decision to add iris images to the set of biometrics collected by it. Another innovation of the UIDAI was its practice of conducting on-field trials. The last innovation we consider relates to how the UIDAI promoted competition and standardisation. The success of the UIDAI offers lessons for other government projects. Government processes need not prevent it from taking innovative decisions. High-quality procurement and project management skills can help the government outsource many functions that are currently housed within it. Testing major hypotheses through field trials before launching projects at scale can help ensure best use of public resources.
    Keywords: Aadhaar ; UIDAI ; Biometrics ; Iris recognition ; Identity ; Authentication ; Digital ID
    JEL: L32 L33 L38 O31 D47
    Date: 2016–09
  18. By: Hoai-Son Nguyen (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - École des Ponts ParisTech (ENPC) - AgroParisTech - AgroParisTech, CleanED - Clean Energy and Sustainable Development Lab - USTH - Université des Sciences et des Technologies de Hanoi); Minh Ha-Duong (Université des Sciences et des Technologies de Hanoi - USTH (VIETNAM) - USTH - Université des Sciences et des Technologies de Hanoi, CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - École des Ponts ParisTech (ENPC) - AgroParisTech - AgroParisTech, CleanED - Clean Energy and Sustainable Development Lab - USTH - Université des Sciences et des Technologies de Hanoi)
    Abstract: My doctoral research intersects two recent developments of the global economy. The first is the emergence of the wind turbine industry, to provide the machines for climate-friendly electricity generation. The second is the increasing importance of production networks in East Asia. Production networks are defined by the cross-border dispersion of component production/assembly within vertically integrated production processes. In industries where a production network pattern is in place, each country specializes in a particular stage of the production sequence. The ultimate goal of my research is to understand which factors determine the participation of East Asia developing countries in wind turbine industry’s production network. The findings from this research will broaden our understanding on production networks and its policy implications for developing countries in East Asia, Vietnam in particular. This first-year poster presents four preliminary trade data analysis results. A) Except for a unique decline in 2009, the extent of the wind turbine network had been expanding during the period 2007-2014. B) The network was intra-regional rather than inter-regional. C) Europe was the largest one followed by Asia. D) Developing countries in East Asia only account for minor share of the network. Next, these findings will be confronted to the existing theoretical concept models based on neo-classical trade theory; industrial organization theory and global value chain theory. In the following years, such quantitative international trade analysis will be completed by qualitative sector surveys, most likely in Europe.
    Keywords: International Economics, Organization Behavior, Trade, Production fragmentation networks, Renewable Energy, Wind turbine industry
    Date: 2016–04–14
  19. By: Peschel, Anne Odile; Zielke, Stephan; Scholderer, Joachim
    Abstract: When deciding between product alternatives, consumers have to compare the observed prices to their internal reference price to determine whether the offer is a good deal or not. For product innovations, for which no reference price has been established, it is unclear against which standard the observed price is compared. Despite extensive research on the use of reference prices, little attention has been devoted to the formation of an internal reference price for an unfamiliar product category. We suggest two mechanisms of how reference prices are constructed and find support for these in two experiments. Reference prices for an unfamiliar product category can either be formed through repeated exposure to incidental price information or through transfer of price information from a familiar, similar product category to an unfamiliar product category. Crucial is however that the product price-value relationship is consistent; a condition often not accounted for in product innovation testing.
    Keywords: Behavioural pricing, internal reference price, product innovation, Agribusiness, Agricultural Finance, Demand and Price Analysis, International Development, International Relations/Trade,
    Date: 2016–05
  20. By: Hicham Ezzat (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Marine Agogué (HEC Montréal - HEC MONTRÉAL); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Benoit Weil (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The generation of novel ideas is critical to any innovative endeavor. However, one of the key obstacles to creativity is known as the fixation effect, which is the cognitive effect that constrains the generation of novel ideas due to the spontaneous activation of existing knowledge and solutions in individuals’ mind. Expert leaders have been considered to play an important role in overcoming these biases using diverse tools. One of these principal instruments is task instruction. Our hypothesis is that leaders’ instructions can have significant effects on followers’ ideation capacity. We investigated the effect of an instruction given by a leader to his team to generate as many original ideas to a particular creative task, either using solution or novelty-oriented approaches. Results confirmed that solution-oriented instructions activated knowledge bases in fixation, while solution-oriented instructions inhibited these knowledge bases. These results give us new sights into novel models of “less-expert” creative leadership.
    Keywords: Leadership, Creativity, Innovation, Functional Fixedness, Instructions
    Date: 2016–06–27
  21. By: Emmanuel Petrakis; Nikolas Tsakas
    Abstract: We investigate the effect of potential entry on the formation and stability of R&D networks considering farsighted firms. We show that the presence of a potential entrant often alters the incentives of incumbent firms to establish an R&D link. In particular, incumbent firms may choose to form an otherwise undesirable R&D collaboration in order to deter the entry of a new firm. Moreover, an incumbent firm may refrain from establishing an otherwise desirable R&D collaboration, expecting to form a more profitable R&D link with the entrant. Finally, potential entry may lead an inefficient incumbent to exit the market. We also perform a welfare analysisand show that market and societal incentives are often misaligned.
    Keywords: R&D Networks; Entry; Farsighted stability
    JEL: D85 L24 O33
    Date: 2016–09
  22. By: Daniele Tavani (Department of Economics, Colorado State University.); Luca Zamparelli (Department of Social Sciences and Economics, Sapienza University of Rome)
    Abstract: In this paper, we introduce a twofold role for the public sector in the Goodwin (1967) growth cycle model. The government collects income taxes in order to: (a) invest in infrastructure capital, which directly affects the production possibilities of the economy; (b) finance publicly funded research, which augments the growth rate of labor productivity. We first focus on a special case in which labor productivity growth depends entirely on public research, and show that: (i) provided that the output-elasticity of infrastructure is greater than the elasticity of labor productivity growth to public R&D, there exists a tax rate tau* that maximizes the long-run labor share, but not a growth-maximizing tax rate; (ii) the long-run labor share is always increasing in the share of public spending in infrastructure, and (iii) the presence of public R&D is not enough to stabilize the distributive conflict. We then study a more general model with induced technical change where, as is well known in the literature, the distributive conflict is resolved in the long run. With induced technical change: (iv) the labor share-maximizing tax rate is the same as in the special case; (v) the long-run share of labor is always increasing in the share of public spending in infrastructure, and (vi) maximizing growth requires to levy a tax rate in excess of tau*.
    Keywords: Public R&D, Goodwin growth cycle, optimal fiscal policy.
    JEL: D33 E11 O38
    Date: 2016–09
  23. By: Calza, Elisa (UNU-MERIT); Goedhuys, Micheline (UNU-MERIT)
    Abstract: Entrepreneurship is the object of renewed and increasing attention, not only by academics, but also by policy makers worldwide. This interest partly results from a positive perception of entrepreneurship as a driver of economic growth, and the urgency for policy makers to find ways to stimulate and sustain economic growth, in developed as well as in developing countries. This trend raises the need to have a clear understanding of the role of entrepreneurship in the economy and society. This paper acknowledges that there is a large heterogeneity across entrepreneurs in their ability to contribute to economic growth. We present insights from macro-economic studies supporting this statement. We next take a micro perspective and discuss the evidence based literature to identify the critical factors and entrepreneur characteristics that can lead to entrepreneurial success and contribute to growth. This discussion serves as a framework against which we reflect on the rationales and effectiveness of entrepreneurial policies in developing countries.
    Keywords: entrepreneurship, firm growth, development policy
    JEL: O12 O20 L26
    Date: 2016–08–29

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