nep-ino New Economics Papers
on Innovation
Issue of 2016‒10‒30
nineteen papers chosen by
Uwe Cantner
University of Jena

  1. Grantbacks, Territorial Restraints, and the Type of Follow-On Innovation: The "But for..." Defense By Ambashi, Masahito; Régibeau, Pierre; Rockett, Katharine
  2. Patents as Substitutes for Relationships By Saidi, Farzad; Zaldokas, Alminas
  3. Dynamics of Human Capital Accumulation, IPR Policy, and Growth By Bharat Diwakar; Gilad Sorek
  4. Distance to the Pre-industrial Technological Frontier and Economic Development By Özak, Ömer
  5. Absorptive Capability of Japanese and European MNCs: Balance between Autonomy and Control of R&D Subsidiaries in the US By Seiko Arai
  6. Technological innovation systems for biorefineries – A review of the literature By Bauer, Fredric; Coenen, Lars; Hansen, Teis; McCormick, Kes; Palgan, Yuliya Voytenko
  7. Innovation Led Alliances: Theory and application to the GM Plant Industry By Rousselière, Samira; Rousselière, Damien; Ramani, Shyama
  8. Institutions, Knowledge Accumulation and Productivity Growth in the Second Half of the XXth By Sanchís-Llopis, Juan A.; Sanchís Llopis, M. Teresa; Esteve, Vicente; Cubel Montesinos, Antonio
  9. A Multi-Level Perspective on Ambidexterity: The Case of a Synchrotron Research Facility. By Arman Avadikyan; Gilles Lambert; Christophe Lerch
  10. What makes consumers adopt to innovative energy services in the energy market? By Anna Kowalska-Pyzalska
  11. Survival of Entrepreneurial Firms: The Role of Agglomeration Externalities By Tavassoli, Sam; Jienwatcharamongkhol, Viroj
  12. Entrepreneurship, growth and unemployment: A panel VAR approach By Dellis, Konstantinos; Karkalakos, Sotiris
  14. Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition By Dakpo, K Hervé; Desjeux, Yann; Jeanneaux, Philippe; Latruffe, Laure
  15. Innovation policies for regional structural change: Combining actor-based and system-based strategies By Arne Isaksen; Franz Tödtling; Michaela Trippl
  16. A New (Intellectual) Property Right for Non-Personal Data? An Economic Analysis By Wolfgang Kerber
  17. Do Recessions Accelerate Routine-Biased Technological Change? Evidence from Vacancy Postings By Brad Hershbein; Lisa B. Kahn
  18. The Next Phase in the Digital Revolution: Platforms, Abundant Computing, Growth and Employment By Zysman, John; Kenney, Martin
  19. The autoentrepreneur regime and the entrepreneurial risk By Nadine Levratto; Evelyne Serverin

  1. By: Ambashi, Masahito; Régibeau, Pierre; Rockett, Katharine
    Abstract: We analyse the effect of grantback clauses in licensing contracts. While competition authorities fear that grantback clauses might decrease the licensee's ex post incentives to innovate, a standard defence is that grantback clauses are required for the patent-owner to agree to license its technology in the first place. We examine the validity of this "but for" defense and the equilibrium effect of grantback clauses on the innovation incentives of the licensee for both non-severable and severable innovations. Under the 2004 EU Technology Transfer Guidelines, and the guidelines for some other jurisdictions, grantback clauses that apply to "non-severable" (read "infringing") innovations are considered to be less controversial than clauses that apply to "severable" innovations.. We show, to the contrary, that grantback clauses do not increase the patent-holder's incentives to license when non-severable innovations are at stake but they do when severable innovations are concerned - suggesting that the "but fo" defense might be valid for severable innovations but not for non-severable ones. Moreover we show that, for severable innovations, grantback clauses can increase the range of parameters for which follow-on innovation by the licensee occurs.
    Keywords: grantbacks; innovation; licensing
    JEL: K21 L24 O31
    Date: 2016–10
  2. By: Saidi, Farzad; Zaldokas, Alminas
    Abstract: Firms face a trade-off between patenting, thereby disclosing innovation, and secrecy. In this paper, we show how such public-information provision through patents acts as a substitute for private information acquired in financial relationships. As a shock to innovation disclosure, we use the American Inventor's Protection Act that made the content of firms' patent applications public within 18 months after filing, rather than at the grant date. Firms in industries that experienced a greater change in the publicity of their patent applications were significantly more likely to switch lenders. We also consider the reverse link of the substitution relationship, and explore the impact of improved lender informedness following the creation of universal banks on firms' patenting behavior. We find that firms patent less, without negatively altering their investment in innovation and its outcomes, such as new-product announcements.
    Keywords: corporate disclosure; Information Acquisition; innovation; loan contracting; patenting
    JEL: G20 G21 O31
    Date: 2016–10
  3. By: Bharat Diwakar; Gilad Sorek
    Abstract: We study the effect of IPR (Intellectual Property Rights) policy on growth, in a closed overlapping-generations economy, which undergoes transitional development phase of human capital accumulation. We show that the growth-maximizing policy is stage-dependent: in the early development phase, during which innovation cost is high relative to worker productivity, weak IPR protection can expedite economic growth and may be necessary to escape long run stagnation. Weaker IPR protection erodes monopolistic deadweight loss and, thereby, increases aggregate output and saving. However, it also shifts investment away from R&D activity towards the formation of physical capital. We show that the former (positive) effect is dominant during the early development phase. However, as human capital is further accumulated, and labor productivity correspondingly increases, economic growth is maximized with stronger IPR protection.
    Keywords: Stage-Dependent IPR, OLG, Human Capital, Development and Growth
    JEL: O31 O34
    Date: 2016–10
  4. By: Özak, Ömer
    Abstract: This research explores the effects of the geographical distance to the pre-industrial technological frontier on economic development. It establishes theoretically and empirically that there exists a persistent non-monotonic effect of distance to the frontier on development. In particular, exploiting a novel measure of the travel time to the technological frontier and variations in its location during the pre-industrial era, it establishes a robust persistent U-shaped relation between the distance to the pre-industrial technological frontier and economic development. Moreover, it demonstrates that isolation from the frontier has had a positive cumulative effect on innovation and entrepreneurial activity levels, suggesting isolation may have fostered the emergence of a culture conducive to innovation, knowledge creation, and entrepreneurship.
    Keywords: E02, F15, F43, N10, N70, O11, O14, O31, O33, Z10
    JEL: E02 F15 F43 N10 O10 O11 O14 O25 O31 O33 Z10
    Date: 2016–10
  5. By: Seiko Arai (Uppsala University, Uppsala, Sweden / National Graduate Institute for Policy Studies, Tokyo, Japan)
    Abstract: This paper analyzes the capability of Japanese and European multinational companies (MNCs) to absorb technological knowledge from the United States through their R&D operation in the US. Employing the notion of gabsorptive capacity h, this research defines the capability of a firm to absorb technological knowledge from abroad as gabsorptive capability (AC), h and aims to examine the components of AC and their interrelationships using patent and sales data in the context of R&D management of Japanese and European MNCs at home and in the US. This paper also presents the taxonomies to show that a balance of autonomy and control is the key to increasing AC in the US and contributing to the US market sales by utilizing the home and host country technologies.
    Date: 2016–10
  6. By: Bauer, Fredric (Department of Chemical Engineering, Lund University); Coenen, Lars (CIRCLE, Lund University); Hansen, Teis (Department of Human Geography, Lund University); McCormick, Kes (IIIEE, Lund University); Palgan, Yuliya Voytenko (IIIEE, Lund University)
    Abstract: The concept of a bioeconomy can be understood as an economy where the basic building blocks for materials, chemicals and energy are derived from renewable biological resources. Biorefineries are considered an integral part of the development towards a future sustainable bioeconomy. The purpose of this literature review is to synthesize current knowledge about how biorefinery technologies are being developed, deployed, and diffused, and to identify actors, networks and institutions relevant for these processes. A number of key findings can be obtained from the literature. First, investing more resources in R&D will not help to enable biorefineries to cross the ‘valley of death’ towards greater commercial investments. Second, while the importance and need for entrepreneurship and the engagement of small and medium-sized enterprises (SMEs) is generally acknowledged, there is no agreement how to facilitate conditions for entrepreneurs and SMEs to enter into the field of biorefineries. Third, visions for biorefinery technologies and products have focused very much on biofuels and bioenergy with legislation and regulation playing an instrumental role in creating a market for these products. But there is a clear need to incentivize non-energy products to encourage investments in biorefineries. Finally, policy support for biorefinery developments and products are heavily intertwined with wider discussions around legitimacy and social acceptance.
    Keywords: bioeconomy; biorefineries; biorefinery technology; technological innovation systems
    JEL: L73 O33 Q23 Q55
    Date: 2016–10–19
  7. By: Rousselière, Samira; Rousselière, Damien; Ramani, Shyama
    Abstract: The objective of the present paper is to identify the determinants of the form of collaboration initiated between an upstream innovator and a downstream producer in order to incorporate a new input and commercialize an innovation consisting of a quality enhanced final product, with an empirical application to the GM plant industry. The choice of upstream firm between license, joint venture, merger or a subsidiary is modeled as a function of three parameters: degree of quality improvement engendered by the new input, the market share of the downstream producer and the capability of the downstream producer to incorporate the new input and commercialize it successfully. We also discuss the case where the downstream firm is a cooperative.
    Keywords: biotechnology, cooperative, GMO, innovation, intellectual property, merger, joint venture, license, subsidiary, Research and Development/Tech Change/Emerging Technologies,
    Date: 2016
  8. By: Sanchís-Llopis, Juan A.; Sanchís Llopis, M. Teresa; Esteve, Vicente; Cubel Montesinos, Antonio
    Abstract: This paper studies the relevance of institutional differences in the way knowledge determines productivity for a set of 21 OECD countries in the second half of the XXth century. The relationship between TFP and knowledge related variables is reconsidered after controlling for a new set of institutional variables tailored to represent the post WWII institutions: the Welfare State and international trade and capital flows liberalization. We estimate the impact of innovation variables over productivity during the Golden Age as compared to the whole period 1953-2007, after controlling by these specific institutional variables. Additionally, we distinguish the particular impact of these relationships for five groups of countries following Amable (2006) classification of different kinds of capitalism. Our results suggest institutions determine the response of TFP to the knowledge variables and that the resulting elasticities are higher during the Golden Age. We find that there are not significant differences between the different groups and the market oriented economies with regard to the elasticity of TFP to the indoor innovation, with the exception of Japan. However, the results suggest that in Anglo-Saxon market oriented economies, international spillovers of technology have a higher impact on TFP. Additionally, in continental and Mediterranean European countries and Japan, TFP is more sensitive to human capital accumulation than in the market-oriented economies (the US and the UK).
    Keywords: spillovers; domestic knowledge; institutions; TFP
    JEL: O43 O40 O31
    Date: 2016–10
  9. By: Arman Avadikyan; Gilles Lambert; Christophe Lerch
    Abstract: We investigate the case of a large scale user oriented research infrastructure, to explicate the repertoire of management strategies that support its organizational ambidexterity. Adopting an ecosystem perspective, our case study unveils, beyond the generic exploitation / exploration tension the multi-level nature of ambidexterity through specific tensions associated to different management levels: (1) responsive versus proactive orientation towards users (2) modular versus architectural technology innovations; (3) competitive versus cooperative orientation towards other organizations. We conclude that ambidexterity is a systemic capability emerging through interactions between nested tensions. Appropriately managing a tension at one level helps to release the innovative energy of tensions at other levels. Synergistic evolution of tensions creates thereby multi-level innovation dynamics.
    Keywords: Ambidexterity; technology management; co-opetition; user-producer interaction; research infrastructure.
    Date: 2016
  10. By: Anna Kowalska-Pyzalska
    Abstract: The paper discusses the incentives and barriers of the successful adoption of the innovative energy services in the energy market. The literature review of the outcomes from field experiments and research surveys is enhanced by the results from a pilot study regarding willingness to pay for green energy and by an agent-based model of diffusion of innovative dynamic electricity tariffs. It was found out that to achieve large market penetration rates of the innovative energy services, the consumers must be aware of them. They must be also supported by the access to reliable information and advice to limit their confusion of choice. The perceived difficulty of adoption should be reduced to encourage consumers to get interested in the energy services. Also the distribution channels of the innovation, namely social influence in the consumers' social networks and advertisement in mass-media should be effectively used to boost the diffusion. The great attention should be put on the negative word of mouth, which may limit or even stop the diffusion of innovation.
    Keywords: Diffusion of innovation; Incentives and barriers of adoption; Energy market; Willingness to pay; Agent-based modeling and simulation
    JEL: C63 O33 Q48 Q55
    Date: 2016–10–19
  11. By: Tavassoli, Sam (CIRCLE, Lund University); Jienwatcharamongkhol, Viroj (Department of Economics, Lund University)
    Abstract: This paper analyzes the role of various types of agglomeration externalities on the survival rate of entrepreneurial firms. In particular, we trace the population cohort of newly-established and self-employed Swedish firms in the Knowledge-Intensive Business Service (KIBS) sector in 1997 up to 2012 and investigate the role of Marshallian and Jacobian externalities on the survival of these firms. We find that only Jacobian externalities (diversity) is positively associated with the survival of entrepreneurial firms. Not all Jacobian externalities matter though. Only the higher the “related variety” of the region in which an entrepreneurial firm is founded, the higher will be the survival chance of the firm, while “unrelated variety” barely has any significant correlation. The result is robust after controlling for extensive firm characteristics and individual characteristics of the founders. The main message here is: for a newly-established entrepreneurial firm, not only it matters who you are, but also where you are.
    Keywords: Entrepreneurial firms; region; agglomeration externalities; survival analysis; related variety; unrelated variety
    JEL: J24 L26 R12
    Date: 2016–10–19
  12. By: Dellis, Konstantinos; Karkalakos, Sotiris
    Abstract: Technological growth, entrepreneurship, and unemployment influence each other in numerous ways, forming a trio of inter-related components, yet the literature has traditionally emphasized the endogenous determination of one or two components of this trio. In this study we intend to elaborate on the interrelationship between entrepreneurship, unemployment and economic growth in a dynamic context using vector auto-regressions (VAR) with panel data across 30 OECD countries for a period covering 1970 to 2011. We use data from the Compendia dataset for international entrepreneurship to estimate three equations: one each for entrepreneurship, growth, and unemployment. On the right-hand side (RHS) of each are lags of entrepreneurship, unemployment, and growth in our benchmark model, which we later enrich by including control variables according to the relevant literature. Each equation is estimated with Difference GMM and System GMM estimators.
    Keywords: entrepreneurship,growth,unemployment,propensity
    JEL: O4
    Date: 2015–10
  13. By: Borge, Laura; Preschitschek, Nina; Bröring, Stefanie
    Abstract: In the bioeconomy, technology transfer from academia to industry may exploit its strong innovation potential. However, this process is challenged by a wide variety of factors. This paper uses the mixed-method approach of concept mapping to investigate the factors as perceived by multiple stakeholders that influence technology transfer in the bioeconomy. Our findings suggest that the interconnectedness and the perceived individual factors vary across the different stakeholders involved. Based on our findings, we discuss practical implications both for the involved stakeholders and particularly for policy makers on how to achieve effective technology transfer in the bioeconomy.
    Keywords: Bioeconomy, factors, multi-stakeholder, perspective, technology transfer, Agribusiness, Research and Development/Tech Change/Emerging Technologies,
    Date: 2016
  14. By: Dakpo, K Hervé; Desjeux, Yann; Jeanneaux, Philippe; Latruffe, Laure
    Abstract: The objective of the article is to assess productivity change in French agriculture during 2002-2014, namely total factor productivity (TFP) change and its components technological change and efficiency change. For this, we use the economically-ideal Färe-Primont index which verifies the multiplicatively completeness property and is also transitive, allowing for multi-temporal/lateral comparisons. To compare the technology gap change between the six types of farming considered, we extend the Färe-Primont to the meta-frontier framework. Results indicated that during 2002-2014, all farms had a TFP progress. Pig/poultry farms had the lowest TFP increase while beef farms had the highest (19.1%). The latter had the strongest increase in efficiency change, while technological progress was the highest for mixed farms. The meta-frontier analysis indicates that field crop farms’ technology is the most productive of all types of farming.
    Keywords: total factor productivity, Färe-Primont index, meta-frontier, French farms, Agricultural and Food Policy, Farm Management,
    Date: 2016
  15. By: Arne Isaksen; Franz Tödtling; Michaela Trippl
    Date: 2016
  16. By: Wolfgang Kerber (University of Marburg)
    Abstract: The discussion about appropriate legal rules for the digital economy has raised the question of the ownership of non-personal data, e.g. in the context of value networks of firms, smart manufacturing and connected cars. The article analyzes from an economic perspective whether there is a need for a new exclusive IPR on data. It is shown that there are no convincing economic arguments for the in-troduction of such a new IPR, especially due to the lack of an incentive problem for the production and analysis of data. On the contrary, a new IPR on data might lead to considerable problems and dangers for competition and innovation, especially for the digital economy, which depends on the access to a broad variety of data. Therefore problems of access to data might be a much more im-portant policy issue than exclusive property rights on data.
    Keywords: Digital economy, data ownership, intellectual property
    Date: 2016
  17. By: Brad Hershbein; Lisa B. Kahn
    Abstract: We show that skill requirements in job vacancy postings differentially increased in MSAs that were hit hard by the Great Recession, relative to less hard-hit areas, and that these differences across MSAs persist through the end of 2015. The increases are prevalent within occupations, more pronounced in the non-traded sector, driven by both within-firm upskilling and substitution from older to newer firms, accompanied by increases in capital stock, and are evident in realized employment. We argue that this evidence reflects the restructuring of production toward more-skilled workers and routine-labor saving technologies, and that the Great Recession accelerated this process.
    JEL: D22 E32 J23 J24 M51 O33
    Date: 2016–10
  18. By: Zysman, John; Kenney, Martin
    Abstract: This report argues that computer-intensive automation (CIAutomation) is likely to change the nature of work and manufacturing value creation in the emerging Platform Economy. The industrial and service changes based on low-cost computation, as they become more generalized, may reverse Robert Gordon’s observations about the slowing growth in productivity. However, the increased adoption of CIAutomation also poses profound dilemmas for society that revolve around whether this automation will be used to solely to replace workers or can be integrated into production of goods and services in ways that augment human capacities and intelligence. Finally, we speculate upon the role of the state in in governing and shaping the emergence of the Platform Economy.
    Keywords: Platforms, automation, gig economy, governance, public policy
    JEL: D78 L86 O33
    Date: 2016–10–17
  19. By: Nadine Levratto (EconomiX - UPOND - Université Paris Ouest Nanterre La Défense - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé); Evelyne Serverin (CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Éducation nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)
    Abstract: The creation and the popularity of the auto-entrepreneur regime rests on the supposed absence of risk associated with this judicial status. By conditioning the payment of the social security contributions to the realization of a turnover, the legislator thought of eliminating any risk from deficit. However, the core theory of entrepreneur insists on the risky dimension associated with the creation of a business whereas, more recently, the multiform aspect of the risk has been enlightened. From this framework, and on the basis of sociological approach of the law, we propose to analyse a corpus made of 104 judicial decisions concerning auto-entrepreneurs. Our results clarify three families of risks. The first one is generated by the activity itself, the second group rises from the articulation with wage-earning and the third class results from the complexity of the rules. As the auto-entrepreneurs neither benefit from the protection of the legal entity, nor of the limited responsibility, they are thus confronted at significant risks that the levelling off of their income finally does not compensate.
    Abstract: La création et la popularité du régime de l'auto-entrepreneur reposent sur l'absence de risque associée à ce régime. En conditionnant le paiement des cotisations sociales à la réalisation d'un chiffre d'affaires, le législateur a pensé éliminer tout risque de déficit. Or, dès ses tous premiers stades, la théorie de l'entrepreneur insiste sur la dimension risquée de la création d'une entreprise alors que, plus récemment, le caractère multiforme du risque d'entreprise a été mis en avant. A partir de cette grille, et sur la base d'une approche sociologique du droit, nous proposons d'analyser un corpus de 104 décisions de justice impliquant des auto-entrepreneurs. Nos résultats mettent en lumière trois familles de risques qui peuvent se combiner. La première est engendrée par l'activité elle-même, la deuxième découle de l'articulation avec le salariat et la troisième résulte de la complexité des règles. Ne bénéficiant de la protection ni de la personnalité morale, ni de la responsabilité limitée, les auto-entrepreneurs sont donc confrontés à des risques importants que le plafonnement de leur revenu ne parvient finalement pas à compenser. Mots clefs : auto-entrepreneur, risque, théorie de l'entrepreneur, sociologie du droit Codes JEL : L21, L26, L53 The autoentrepreneur regime and the entrepreneurial risk
    Keywords: auto-entrepreneur, risque, théorie de l’entrepreneur, sociologie du droit
    Date: 2015–07

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