nep-ino New Economics Papers
on Innovation
Issue of 2016‒11‒06
nineteen papers chosen by
Uwe Cantner
University of Jena

  1. Innovation Network By Daron Acemoglu; Ufuk Akcigit; William Kerr
  2. The co-evolution of knowledge and collaboration networks: The role of technology life-cycle in Structural Composite Materials By Johannes VAN DER POL
  3. Technological Innovation and the Distribution of Employment Growth: a firm-level analysis By Flavio Calvino
  4. International R&D Funding and Patent Collateral in an R&D-Growth Model By Huang, We-Chi; Chen, Ping-ho; Lai, Ching-Chong
  5. Family Ownership: Does it Matter for Funding and Success of Corporate Innovations? By Dorothea Schäfer; Andreas Stephan
  6. Endogenous Growth in Production Networks By Stanislao Gualdi; Antoine Mandel
  7. Demand-Pull, Technology-Push, and the Sectoral Direction of Innovation By Diego Comin; Daniel Lashkari; Marti Mestieri
  8. Patent Disclosures and Standard-Setting By Josh Lerner; Haris Tabakovic; Jean Tirole
  9. Factor-Biased Technological Change and the Skill Premium: A Cross-Country Evidence By Vladimir Matveenko; Shamil Sharapudinov
  10. Beyond the Arrow effect: a Schumpeterian theory of multi-quality firms * By Hélène Latzer
  11. Entrepreneurial teams' acquisition of talent: a two-sided approach By Florence Honoré; Martin Ganco
  12. Social interactions between innovating firms: an analytical review of the literature By Johannes VAN DER POL
  13. “Climate Change Mitigation and the Role of Technologic Change: Impact on selected headline targets of Europe’s 2020 climate and energy package ” By Germá-Bel; Stephan Josep
  14. Innovation for inclusive value-chain development: Successes and challenges By Devaux, André; Torero, Maximo; Donovan, Jason; Horton, Douglas E.
  15. Start-Up Capital and Women's Entrepreneurship: Evidence from Swaziland By Brixiova, Zuzana; Kangoye, Thierry
  16. Open Innovation: Revealing and Engagement in Open Data organisations By Franz Huber; Francesco Rentocchini; Thomas Wainwright
  17. Technological Changes for the competitiveness of the pig value chain in Côte d'Ivoire By Angbo-Kouakou, Cho-Euphrasie-Monique; Temple, Ludovic; Kouakou, N’Goran David Vincent; Kouba, Maryline
  18. The French Aerospace Sector Collaboration Network : Structural Dynamics And Firm Performance By Johannes VAN DER POL
  19. When Entrepreneurs Meet Financiers: Evidence from the Business Angel Market By Angela Cipollone; Paolo E. Giordani

  1. By: Daron Acemoglu; Ufuk Akcigit; William Kerr
    Abstract: Technological progress builds upon itself, with the expansion of invention in one domain propelling future work in linked fields. Our analysis uses 1.8 million U.S. patents and their citation properties to map the innovation network and its strength. Past innovation network structures are calculated using citation patterns across technology classes during 1975-1994. The interaction of this pre-existing network structure with patent growth in upstream technology fields has strong predictive power on future innovation after 1995. This pattern is consistent with the idea that when there is more past upstream innovation for a particular technology class to build on, then that technology class innovates more.
    JEL: D85 O31 O32 O33 O34
    Date: 2016–10
  2. By: Johannes VAN DER POL
    Abstract: One of the objectives of the analysis of innovation networks is to explain the structure of the network. The latter is important because it reveals strategic decisions of the firms in terms of collaboration. Different factors have already been identified (e.g technological and geographical proximity), the role of the life-cycle of the technology has however not yet been analysed.\r\nThe aim of this paper is to extend the existing literature on innovation networks in two ways. First we show that the International Patent Classification can be used to generate a knowledge network that can be used as a proxy for the identification of the technology life-cycle. Second we show that there is a correlation between the structural dynamics of the network and the life-cycle of the technology.
    Keywords: Network analysis ; Innovation network ; technology life-cycle ; Knowledge network
    JEL: L14 D83 O32 O33
    Date: 2016
  3. By: Flavio Calvino
    Abstract: This work studies the firm-level relationship between different types of innovative activities and employment growth rates. Improving on previous investigations on the topic, it combines a dynamic panel analysis of the effects of different types of product and process innovation on employment growth with an outlook on the whole conditional employment growth distribution. Results show that product innovation -- especially in terms of good new to the entire market -- has a positive effect on employment growth. This role is likely to be particularly relevant for both fast-growing and shrinking firms. Process innovation appears instead to have less clear-cut dynamics, consistently with existing evidence. Among different types of process innovation, the introduction of novel auxiliary processes appears to be more positively linked with employment growth.
    Keywords: Innovation, Employment growth, Dynamic panel methods, Quantile regression
    Date: 2016–10–26
  4. By: Huang, We-Chi; Chen, Ping-ho; Lai, Ching-Chong
    Abstract: This paper develops an R&D-based growth model featuring international R&D funding and patent collateral. It then uses the model to examine how the international borrowing interest rate and the fraction of patent collateral will affect innovations and economic growth.
    Keywords: International R&D funding, patent collateral, R&D-based growth model
    JEL: E44 O31 O40
    Date: 2016–11–03
  5. By: Dorothea Schäfer (German Institute for Economic Research DIW Berlin); Andreas Stephan (Jönköping International Business School)
    Abstract: Using the Mannheim innovation panel, we investigate whether family firms have higher financial need and how this affects both innovation input and innovation outcomes such as firm or market novelties, or process innovation. Applying the CDM framework, we find that family firms are more likely to have a latent financial need for innovation, which means that they have innovation ideas which they have not implemented yet. We find that family firms have a significantly lower marginal innovation productivity in particular for innovations with radical character, i.e., market novelties. We conclude from this evidence that family firms have a comparative disadvantage in innovation projects that imply high risk and require high innovation capability.
    Keywords: Innovation, Capability, Funding gaps, Financing Restrictions, Family Firms, CDM
    JEL: D21 D22 G31 O30 O31 O32
    Date: 2016–10
  6. By: Stanislao Gualdi (Ecole Centrale Supélec - Laboratoire MAS); Antoine Mandel (Centre d'Economie de la Sorbonne - Paris School of Economics)
    Abstract: We investigate the interplay between technological change and macroeconomic dynamics in an agent-based model of the formation of production networks. On the one hand, production networks form the structure that determines economic dynamics in the short run. On the other hand, their evolution reflects the long-term impacts of competition and innovation on the economy. We account for process innovation via increasing variety in the input mix and hence increasing connectivity in the network. In turn, product innovation induces a direct growth of the firm's productivity and the potential destruction of links. The interplay between both processes generate complex technological dynamics in which phases of process and product innovation successively dominate. The model reproduces a wealth of stylized facts about industrial dynamics and technological progress, in particular the persistence of heterogeneity among firms and Wright's law for the growth of productivity within a technological paradigm. We illustrate the potential of the model for the analysis of industrial policy via a preliminary set of policy experiments in which we investigate the impact on innovators' success of feed-in tariffs and of priority market access
    Keywords: Production network; Network formation; Scale-free networks; Firms demographics; distribution of firms' size; Zipf law; General equilibrium; monopolistic competition; disequilibrium
    JEL: D57 D85 L16
    Date: 2016–04
  7. By: Diego Comin (Dartmouth College); Daniel Lashkari (Harvard U.); Marti Mestieri (Northwestern University)
    Abstract: We develop a multi-sectoral endogenous growth model in which the direction of innovation across sectors is endogenous. Thus, our model provides a theoretical framework to think about the classical demand-pull versus technology-push drivers of innovation in a general equilibrium framework. A robust prediction that emerges from our analysis is that innovation growth should be higher in more income-elastic sectors. We test this prediction using the universe of U.S. patents for the period 1976-2007. We find empirical support for this prediction. Preliminary analysis of firm R&D expenditures from the U.S. census also confirm this prediction.
    Date: 2016
  8. By: Josh Lerner; Haris Tabakovic; Jean Tirole
    Abstract: A key role of standard setting organizations (SSOs) is to aggregate information on relevant intellectual property (IP) claims before deciding on a standard. This article explores the firms’ strategies in response to IP disclosure requirements—in particular, the choice between specific and generic disclosures of IP—and the optimal response by SSOs, including the royalty rate setting. We show that firms with a stronger downstream presence are more likely to opt for a generic disclosure, as are those with lower quality patents. We empirically examine patent disclosures made to seven large SSOs, and find results consistent with theoretical predictions.
    JEL: L24 O34
    Date: 2016–10
  9. By: Vladimir Matveenko; Shamil Sharapudinov
    Abstract: This paper provides a cross-country analysis of trends in the skill premium and in the relative supply of high-skilled labor based on the data for 21 OECD countries over the last decades of the twentieth century. We document that, in contrast to the steadily increasing trends in the relative supply of high-skilled labor, the dynamics of the skill premium varies substantially across the countries. One of the main empirical findings of the paper is the evidence that both US and European countries experienced skill-biased rather than unskill-biased technological change. We also develop a new modification of the AcemogluÕs directed technological change model and show that such modification is helpful in explaining the skill premium patterns.
    Keywords: skill premium, factor-biased technological change, directed technological change
    JEL: J24 J30 J31 O30 O31
    Date: 2016–10–15
  10. By: Hélène Latzer (CEREC - Université Saint-Louis - Bruxelles, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper introduces multi-quality firms within a Schumpeterian framework. Featuring non-homothetic preferences and income disparities in an otherwise standard quality-ladder model, we show that the resulting differences in the willingness to pay for quality among consumers generate both positive investments in R&D by industry leaders and positive market shares for more than one quality, hence allowing for the emergence of multi-product firms within a vertical innovation framework. This positive investment in R&D by incumbents is obtained with complete equal treatment in the R&D field between the incumbent patentholder and the challengers: in our framework , the incentive for a leader to invest in R&D stems from the possibility for an incumbent having innovated twice in a row to efficiently discriminate between rich and poor consumers displaying differences in their willingness to pay for quality. We hence exemplify a so far overlooked demand-driven rationale for innovation by incumbents. Such a framework also makes it possible to analyze the impact of inequality both on long-term growth and on the allocation of R&D activities between challengers and incumbents. We find that an increase in the income gap positively impacts an econ-omy's growth rate, partly shifting R&D activities from challengers to incumbents. On the other hand, a greater income concentration is detrimental for growth, diminishing both the incumbents' and the challengers' R&D activities.
    Keywords: Growth,Innovation,Income inequality
    Date: 2016–10–25
  11. By: Florence Honoré; Martin Ganco
    Abstract: While it is crucial for startups to hire high human capital employees, little is known about what drives the hiring decisions. Considering the stakes for both startups and their hires (i.e., joiners), we examine the phenomenon using a two-sided matching model that explicitly reveals the preferences of each side. We apply the model to a sample of startups from five technological manufacturing industries while examining a range of variables grounded in prior work on startup human capital. The analysis is based on the Longitudinal Employer Household dynamics from the U.S. Census Bureau. Our findings indicate that, in the context of entrepreneurship, both startups and joiners rely heavily on signals of quality. Further, quality considerations that are important for the match play a minimal role in determining earnings. Our approach refines our understanding of how entrepreneurial human capital evolves.
    Date: 2016–01
  12. By: Johannes VAN DER POL
    Abstract: The main objective of this paper is to offer an analytical review of the literature focusing on the link between collaboration and performance. More precisely, the paper analyses the impact the position of the firm in the network has on the performance of the firm. Evolving in an innovation network implies that the firm is exposed to knowledge flows from collaborators. They are also exposed to the diffusion of their reputation through their partners. This document summarizes the different factors that have an impact on the manner in which firms can profit from their network and how, in their turn, they can impact the network.
    Keywords: Innovation networks ; Performance ; Knowledge ; Collaboration
    JEL: L14 D83
    Date: 2016
  13. By: Germá-Bel (Departament of Economic Policy & GiM-IREA, University of Barcelona. Av. Diagonal 696; 08034 Barcelona, Spain.); Stephan Josep (Departament of Economic Policy & GiM-IREA, University of Barcelona. Av. Diagonal 696; 08034 Barcelona, Spain.)
    Abstract: The European Union launched a set of policies as part of its 2020 climate and energy package aimed at meeting its 20/20/20 headline targets for smart, sustainable and inclusive growth. This paper evaluates how successful new-to-the-market climate change mitigation technologies (CCMT) are in helping EU member states (MS) to reach these goals and, furthermore, whether there are differences between sectors subject to EU-wide polices. To do so, we seek to relate CCMT patent counts to two specific headline targets: (1) achieving 20% of gross final energy consumption from renewables, and (2) achieving a 20% increase in energy efficiency. Our results provide the first ex-post evaluation of the effectiveness of these technologies for combating climate change. Moreover, our sectoral impact assessment points to significant differences in the way in which these technologies contribute to policy goals across sectors.
    Keywords: Environmental Policy; Climate Change; Technological Change; Patent Count Data. JEL classification: O33; O38; Q55; Q58.
    Date: 2016–10
  14. By: Devaux, André; Torero, Maximo; Donovan, Jason; Horton, Douglas E.
    Keywords: trade; market access; smallholders; producer organizations; transport; wholesale marketing; retail marketing; farmers organizations; value chains; food processors
    Date: 2016
  15. By: Brixiova, Zuzana (University of Cape Town); Kangoye, Thierry (African Development Bank)
    Abstract: This paper examines gender differences in entrepreneurial performance and their links with start-up capital utilizing a search model and empirical analysis of survey of entrepreneurs from Swaziland. The results show that entrepreneurs of both genders with higher start-up capital record better sales performance than those with smaller amounts of capital. For women entrepreneurs, formal finance sources of start-up capital are also associated with higher sales. However, as in other developing countries, women entrepreneurs in Swaziland have smaller start-up capital and are less likely to fund it from formal sources than men. Among women entrepreneurs, those with college education and confident in their skills tend to start their firms with higher amounts of capital. Professional support also matters, as women with such support are more likely to fund their start-up capital from the formal financial sector.
    Keywords: women's entrepreneurship, start-up capital, search model, multivariate analysis
    JEL: L53 O12 C61
    Date: 2016–10
  16. By: Franz Huber (University of Southampton); Francesco Rentocchini (Southampton Business School, University of Southampton); Thomas Wainwright (University of Southampton - School of Management)
    Abstract: Among many factors, we conclude it is difficult fully to comprehend the persistent intensity of official UK attachments to nuclear power, without also considering aims to maintain nuclear submarine capabilities. Yet this aspect is entirely undocumented anywhere in UK energy policy literatures. To acknowledge this, is not to entertain a conspiracy theory. It can be understood instead, in terms of more distributed and relational dynamics of power. Building on literatures in political science, we refer to this as a ‘deep incumbency complex’. Such an evidently under-visible phenomenon would hold important implications not only for UK nuclear strategies, but also the wider state of British democracy.
    Keywords: Open Data; Open Innovation; digital economy; selective revealing; gatekeepers; engagement
    Date: 2016–10
  17. By: Angbo-Kouakou, Cho-Euphrasie-Monique; Temple, Ludovic; Kouakou, N’Goran David Vincent; Kouba, Maryline
    Keywords: Livestock Production/Industries, Research and Development/Tech Change/Emerging Technologies,
    Date: 2016
  18. By: Johannes VAN DER POL
    Abstract: The focus of this paper is on the link between network structure and the financial performance of the individual firm. Under the hypothesis that firms access diverse and valuable knowledge through collaboration we analyse how firms pick their collaborators and how knowledge flows impact the financial performance of the firm. \r\nFirst, the evolution of the structure of the collaboration network of the French aerospace sector is analysed between 1980 and 2013. The global structure is identified and, using an ERGM and clustering identification, the structure of the network is explained. Second, a panel regression identifies a link between the position of the individual firm inside the network and their financial performance.
    Keywords: Network analysis ; Innovation network ; ERGM ; Performance ; Small World ; Scale-free
    JEL: L25 C23 D85 L14 C20
    Date: 2016
  19. By: Angela Cipollone (LUISS "Guido Carli" University); Paolo E. Giordani (LUISS "Guido Carli" University)
    Abstract: This paper estimates the process of search and matching between entrepreneurs and financiers in the business angel (BA) market. We hand-collect a new dataset from the BA markets of 17 developed countries for the period 1996-2014, and we estimate the aggregate matching function expressing the number of successful deals as a function of the number of potential entrepreneurs and of business angels. Empirical findings confirm the technological features assumed in the theoretical literature: positive and decreasing marginal returns to both inputs (stepping on toes effect), technological complementarity across the two inputs (thick market effect) and constant returns to scale. We discuss the theoretical and policy implications of these findings.
    Keywords: Entrepreneurial finance, innovation, matching function, business angels.
    JEL: C78 L26
    Date: 2016

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