|
on Innovation |
| By: | Diego d'Andria (European Commission - JRC) |
| Abstract: | A temporary change in pay to employed inventors around the time of patent application has been observed in a number of countries. A theoretical model is here developed to provide an explanation to said findings based on the idea that inventors may be able to use the knowledge previously generated while working in a firm, in a rival company. The model features firms who hire workers in R&D functions to make product innovations. The innovation process consists of distinct phases separated by a patent application. Firms compete to attract workers, and workers can transfer part of the generated new knowledge to a new employer. Results suggest that the capital intensity of R&D investments, and the type and size of knowledge spillovers, may affect the probability to observe bonus pay at the time of a patent application. Different tax incentives and subsidies are then studied as a means to correct for possible under-investment of capital. We study the effect of a patent box, a subsidy to R&D capital investments, and a subsidy to bonus pay. When market rivalry prevails over positive knowledge externalities, a bonus pay incentive was found to obtain the social first-best while a patent box or a subsidy to capital investment would cause overinvestment. When positive knowledge externalities prevail, either a patent box or a subsidy to capital investment obtain the social optimal level of capital investments. |
| Keywords: | innovation, bonus pay, moving researchers, patents, R&D tax incentives |
| JEL: | O3 J31 H23 H25 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:201602&r=ino |
| By: | Ufuk Akcigit; Douglas Hanley; Stefanie Stantcheva |
| Abstract: | We study the optimal design of R&D policies and corporate taxation when the outputs of innovation are not appropriable in the absence of intellectual property rights policies and there are non-internalized technology spillovers across firms. Firms are heterogeneous in their research productivity, i.e., in the efficiency with which they convert a given set of R&D inputs into successful innovations. There is asymmetric information about firm productivity and about its stochastic evolution over time that prevents the first best solution to the technology spillover. The problem is thus posed as one of dynamic mechanism design with externalities. We characterize the optimal constrained efficient allocations over firms' life cycles and for firms of different productivities. We show that the constrained efficient allocations can be implemented either by a patent system plus a price subsidy for the monopolists' products, together with a parsimonious R&D subsidy function or, equivalently, by a prize mechanism. We estimate our model using firm-level data matched to patent data and quantify the optimal policies. Simpler innovation policies, such as linear R&D subsidies and linear profit taxes, lead to large revenue losses relative to the optimal mechanism. |
| JEL: | H0 H2 H21 H23 H25 O0 O31 O32 O33 O38 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22908&r=ino |
| By: | Crass, Dirk; Rammer, Christian; Aschhoff, Birgit |
| Abstract: | The paper analyzes how geographical clustering of beneficiaries might affect the effectiveness of public innovation support programs. The geographical proximity of firms operating in the same industry or field of technology is expected to facilitate innovation through knowledge spillovers and other localization advantages. Public innovation support programs may leverage these advantages by focusing on firms that operate in a cluster. We investigate this link using data from a large German program that co-funds R&D projects of SMEs in key technology areas called 'Innovative SMEs'. We employ three alternative cluster measures which capture industry, technology and knowledge dimensions of clusters. Regardless of the measure, firms located in a geographical cluster are more likely to participate in the program. Firms being part of a knowledge-based cluster significantly increases their chance of receiving public financial support. We find no effects, however, of geographical clustering on the program's effectiveness in terms of input or output additionality. |
| Keywords: | Innovation,Government Policy,Regional Government Analysis |
| JEL: | C35 H50 O31 O32 O38 R59 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16083&r=ino |
| By: | Rammer, Christian; Kinne, Jan; Blind, Knut |
| Abstract: | This paper investigates the micro-location pattern of innovative and non-innovative firms in Berlin using detailed information on the firms' addresses and their local environment. The study employs a unique, representative panel data set of Berlin-based firms from manufacturing and services covering a five-year period (2011-2015) and applying the standard concepts and measurement approaches used in the Community Innovation Surveys. While controlling for firm size, age and sector, we find product innovators and R&D performing firms located closer to research infrastructures, start-ups and other firms from the same industry. They tend to prefer more dynamic neighbourhoods and avoid very densely populated areas. For process innovators, no significant differences from non-process innovators are found. Firms are more likely to introduce new-to-market innovations if other firms in their direct neighbourhood had introduced such innovations in the previous period, but also if firms with such innovations have moved out of their neighbourhood. The 'creative environment' of a firm in terms of bars, cafes, clubs, leisure facilities or cultural locations does not seem to be linked to the innovative activity of firms. |
| Keywords: | Microgeography,Innovation,Location Decision,Berlin,Knowledge Spillovers |
| JEL: | O31 O32 O33 R12 R39 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16080&r=ino |
| By: | Dutta, Sourish |
| Abstract: | The crucial and growing role performed by different financial intermediaries such as venture capitalists and angel investors as well as more traditional intermediaries such as commercial banks in developing entrepreneurial or innovative firms and boosting product market innovations has led to great research interest in the economics of innovation and entrepreneurial finance. Besides this, there are some important factors or developments which have affected the entrepreneurial finance in general as well as its influence upon different entrepreneurial or innovative firms. Indeed, it is also true that the financial and ownership structures of the different entrepreneurial firms and the legal as well as institutional environment, in which they operate, itself affects the product market innovations (Chemmanur and Fulghieri, 2014). .Therefore, in this paper I want to target a broad theme i.e. analysis of the mechanisms behind this scenario, especially, in the context of Indian market system. |
| Keywords: | Innovation, Financing Frictions, Entrepreneurial Finance |
| JEL: | G11 G24 O31 O32 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75584&r=ino |
| By: | Matthijs Janssen |
| Abstract: | After an era of generic support for economic development and innovation, narrowly targeted transformation policy is back on the table. Recent advances in the fields of new industrial policy and transition thinking converge on the idea that achieving structural change requires governments to take an active role in overcoming inertia. Rather than just leveraging R&D investments and setting framework conditions, policy makers are urged to participate in the development of socio-economic systems around particular technologies. Associated policy support typically involves a diverse portfolio of system-specific interventions. The emergence of transformative policy, in this paper characterized by being selective, process-oriented and multi-instrumental, poses severe challenges to rising standards of public accountability. Evaluation methods for calculating the ‘bang for the buck’ of R&D-leveraging measures are ill-suited when policy mixes are supposed to enact economic transformation. We argue that, in order to see if aptly chosen policy design is bringing about actual change, assessments should gauge policy contributions to building up technological innovation systems (TIS). The TIS-literature provides a concrete but untapped basis for tracking how policy efforts affect conditions favoring the creation and diffusion of new economic activities. This premise leads us to introduce a scheme for structuring analyses concerned with (the links between) the organization, orientation and aggregate impact of transformative policy. We test it in a tentative assessment of the Dutch ‘Topsector approach’. Besides facilitating continuous policy learning, our assessment scheme also serves to strengthen policy maker’s ability to legitimize the adoption of heterodox economic approaches. |
| Keywords: | economic development, innovation policy, policy mix, technological innovation system, structural change, directionality |
| JEL: | O25 O38 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:uis:wpaper:1605&r=ino |
| By: | Uwe Cantner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Tina Wolf (University of Southern Denmark, Department of Marketing and Management) |
| Abstract: | Earlier studies have shown that entrepreneurs play a key role in shaping regional development. Innovator networks where these entrepreneurs are members of have been identified as one among many critical factors for their firms' success. This paper intents to go one step further and analyses in how far differing characteristics of these networks lead to different firm performances along the early stages of the organizational life cycle (nascent stage, emergent stage, early growth stage). A sample of 149 patenting (innovative) firms in Thuringia is analysed, using data from the commercial register and the German patent office. The results show that there is an inverted u-shaped relationship between the chances of a firm to survive and the connectivity of the network the firms are connected to but only in the later stage of the early organizational life cycle; while the structure of the ego-network never plays a role. A quite central position in the network shows-up to be unfavourable. |
| Keywords: | Innovation, Entrepreneurship, Networks, Inventor, Patents, Survival |
| JEL: | L25 L26 O30 L14 |
| Date: | 2016–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2016-021&r=ino |
| By: | Lazkano, Itziar (Dept. of Economics, Norwegian School of Economics and Business Administration); Pham, Linh (University of Wisconsin-Milwaukee) |
| Abstract: | We evaluate the role of a fossil fuel tax and research subsidy in directing innovation from fossil fuel toward renewable energy technologies in the electricity sector. Using a global firm-level electricity patent database from 1978 to 2011, we find that the impact of fossil fuel taxes on renewable energy innovation varies with the type of fossil fuel. Specifically, a tax on coal reduces innovation in both fossil fuel and renewable energy technologies while a tax on natural gas has no statistically significant impact on renewable energy innovation. The reason is that easily dispatchable energy sources like coal-fired power plants need to complement renewable energy Technologies in the grid because renewables generate electricity intermittently. Our results suggest that a tax on natural gas, combined with research subsidies for renewable energy, may effectively shift innovation in the electricity sector towards renewable energy. In contrast, coal taxation or a carbon tax that increases coal prices has unintended negative consequences for renewable energy innovation. |
| Keywords: | Electricity; Energy taxes; Renewable; coal; natural gas technologies |
| JEL: | L90 O30 Q40 |
| Date: | 2016–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhheco:2016_016&r=ino |
| By: | Tuukka Mäkitie (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Allan D. Andersen (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Jens Hanson (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Håkon E. Normann (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Taran M. Thune (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway) |
| Abstract: | The development and deployment of clean energy technologies must be accelerated to avoid a more than 2-degree warmer world, which poses a major policy challenge. Utilization of the vast resources concentrated in established sectors is one possible way to advance clean technology industries. However, prior research on energy transitions tends to emphasize competition and conflict between established sectors and clean-tech industries. There is thus a need for studying how established sectors may positively contribute to clean-tech industries. We propose an extended analytical framework of the technological innovation systems (TIS) approach to study how established sectors influence clean-tech industries, and present new definitions and indicators. We present a case study of oil and gas sector and offshore wind power industry development in Norway. Our results show that while the oil and gas sector has several positive implications for offshore wind power, wavering priorities and commitment of diversified oil and gas firms to the new industry have negative implications. We conclude by discussing the relevance of our findings for policy and research targeting the development of clean-tech industries. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20161208&r=ino |
| By: | Hagedoorn, John (Organisation and Strategy; Mt Economic Research Inst on Innov/Techn); Lokshin, Boris (Organisation and Strategy); Malo, Stéphane (american university of paris) |
| Abstract: | We explore the innovation performance benefits of alliances for spin-off firms, in particular spin-offs from either other firms or from public research organizations. During the early years of the emerging combinatorial chemistry industry, the industry on which our empirical analysis focuses, spin-offs engaged in alliances with large and established partners, partners of similar type and size, and with public research organizations, often for different reasons. We seek to understand to what extent alliances of spin-offs with other firms (either large or small and medium sized firms) affected their innovation performance and also how this performance may have been affected by their corporate or public research background. We find evidence that in general alliances of spin-offs with other firms, in particular alliances with large firms, increased their innovation performance. Corporate spin-offs that formed alliances with other firms outperformed public research spin-offs with such alliances. This suggests that, in terms of their innovation performance, corporate spin-offs that engaged in alliances with other firms seemed to have benefitted from their prior corporate background. Interestingly, it turns out that the negative impact of alliances on the innovation performance of public research spin-offs was largely affected by their alliances with small and medium sized firms. |
| Keywords: | alliances, spin-offs, entrepreneurial firms, innovation performance |
| JEL: | L24 L26 L65 M13 O32 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2016041&r=ino |
| By: | Zobel, Ann-Kristin (eth zurich); Lokshin, Boris (Organisation and Strategy); Hagedoorn, John (Organisation and Strategy; Mt Economic Research Inst on Innov/Techn) |
| Abstract: | This paper analyses how firms’ degree of openness and innovativeness influence their use of formal and informal appropriation mechanisms. Patents, trademarks, copyrights, and design rights are formal appropriation mechanisms. Secrecy, lead-time, and complexity are examples of informal appropriation mechanisms. Both external search breadth and depth are positively associated with firms’ use of informal appropriation mechanisms, while only external search breadth is positively associated with formal appropriation mechanisms. Firms’ degree of radical (incremental) innovation orientation is negatively (positively) associated with their use of formal appropriation mechanisms. Analysis of the joint impact of openness and innovativeness, suggests that for radical innovators it is external search breadth (rather than depth) that has a positive association with the use of informal appropriation mechanisms. In contrast, for radical innovators external search depth (rather than breadth) is associated with the use of formal appropriation mechanisms. For incremental innovators, external search breadth (rather than depth) is associated with the use of both formal and informal appropriation mechanisms. |
| Keywords: | Appropriation Mechanisms, Formal Appropriation, Informal Appropriation, External Search Openness, Incremental Innovators, Radical Innovators |
| JEL: | O34 O31 O32 K11 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umagsb:2016040&r=ino |
| By: | Albert, Martin |
| Abstract: | A closer look at innovation for and from emerging markets respectively developing economies reveals that a variety of different terms and concepts related to this type of innovation exist. The goal of my conceptual paper is to present a comprehensive overview of related terms and concepts and to suggest theoretical based classification criteria in order to differentiate them. After a first investigation in relation to innovation for and from emerging markets the keywords "reverse", "frugal", "jugaad", and "bottom of the pyramid / bottom of pyramid / bop" were identified and used for searching the database of Google Scholar. For further investigation only texts were considered with at least eight various terms. 19 different texts were identified which classified for a further analysis. As results 33 identified terms in relation to innovation for and from emerging markets, various spellings and synonyms and references with at least two mentions in the identified texts are presented. As theoretical based classification criteria "market orientation", "determinants" (of innovation for and from emerging market)", "natur" (of innovation for and from emerging markets), "sophistication", "sustainability", "novelty" and "innovator type" were identified. |
| Keywords: | innovation,emerging markets,developing economies,classification criteria,frugal,innovation,bottom of the pyramid,reverse innovation,jugaad |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tucitm:91&r=ino |
| By: | Gianluca Misuraca (European Commission – JRC); Fiorenza Lipparini (PlusValue); Csaba Kucsera (European Commission – JRC) |
| Abstract: | Social enterprises play an important role in tackling societal challenges. Their numbers have grown significantly over recent years, becoming a strong engine of social innovation in the EU. This trend is confirmed by results of the JRC-led IESI project, which supports the implementation of the EU Social Investment Package through the analysis of ICT-Enabled Social Innovation initiatives in Member States. This issue of the ‘JRC Insights’ presents results from the study of these initiatives, assessed against the three main objectives of the Social Investment Package: implementing active inclusion strategies, investing in individuals throughout their lives and modernizing social protection systems. Evidence gathered shows that social enterprises are crucial in realising these policy goals. Their capacity to identify emerging or unmet needs, engage stakeholders and turn their governance model into a sustainable production process makes them particularly apt to contribute to social investment approaches. Social enterprises are the most innovative forms of social economy and their action tends to be flexible and responsive, thanks to their capacity to involve users and understand their needs. Their governance structures, their roots in local communities, and the fact that they are often multi-stakeholder partnerships contribute to greater social innovation. Nevertheless, more comprehensive socio-economic impact evaluations are required to understand what initiatives could and should be fostered and scaled-up. |
| Keywords: | Social investment, social policy innovation, SIP, Social Investment Package, social economy, social enterprise, ICT enabled social innovation, ICT, services, social protection, social welfare |
| Date: | 2016–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc104054&r=ino |
| By: | Brixy, Udo; Murmann, Martin |
| Abstract: | Recent research suggests that employment in young firms is more negatively impacted during economic downturns than employment in incumbent firms. This questions the effectiveness of policies that promote entrepreneurship to fight crises. We complement prior research that is mostly based on aggregate data by analyzing cyclical effects at the firm level. Using new linked employer-employee data on German start-ups we show that under constant human capital of the firms' founders, employment growth in less than 11=2-year-old start-ups reacts countercyclically and employment growth in older start-ups reacts procyclically. The young start-ups realize their countercyclical growth by hiring qualified labor market entrants who might be unable to find employment in incumbent firms during crises. This mechanism is highly important in economic and management terms and has not been revealed by prior research. |
| Keywords: | Firm growth,Entrepreneurship,Business cycle,Crisis |
| JEL: | E32 J23 L26 M13 L25 L11 D22 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:16079&r=ino |
| By: | Taran Thune (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Magnus Gulbrandsen (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway) |
| Abstract: | This paper addresses the question of how hospital employees contribute to the generation of innovations and to what extent hospitals function as a conducive environment for innovative work. The motivation behind this exploratory study was primarily to identify the diversity of innovation activities in hospitals, with the goal of developing and testing a survey tool that can adequately capture this diversity. Although conceptual and empirical research on the characteristics of medical and health related innovations has been carried out, the role of hospitals in such innovations is more often assumed rather than empirically tested. We argue that innovation in public hospitals is still not well understood and contribute to understanding through a pilot study carried out in four public hospitals in Norway. A preliminary analysis indicates that there are different modes of innovative work in hospitals, as suggested by some of the literature, and that different kinds of employees are involved in distinct sets of activities. The survey tool that we developed seems to be able to capture the diversity of innovation-related activities, but there were problematic aspects related to the sampling and recruitment of respondents. Suggestions for further exploration and testing are discussed. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20161211&r=ino |
| By: | Giorgio Calcagnini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo"); Germana Giombini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo); Giuseppe Travaglini (Department of Economics, Society & Politics, Università di Urbino "Carlo Bo) |
| Abstract: | Theoretical and empirical models provide ambiguous responses on the relationship among labor regulation, innovation and investment. Labor regulation tends to raise frms' adjustment costs. But, also labor regulation stimulates firms to make innovations and investments to recover productivity in the long-run. In this paper we present a neo- Schumpeterian endogenous growth model, which explains how these opposite forces operate over time, and why a stricter labor regulation may positively affect innovation and investment. |
| Keywords: | Endogenous growth model; Labor regulation; Innovation; Investment |
| JEL: | O4 J5 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:16_04&r=ino |
| By: | Taran Thune (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Magnus Gulbrandsen (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway) |
| Abstract: | Difficult and problematic aspects of collaborative innovation are rarely explicit objects of study (Bozeman el al., 2013), but there is good reasons to assume that problems and tensions are an inherent feature of partnerships, and that many partnerships are not successful due to the inability in dealing with tensions. This paper will address this issue by looking at sources and impacts of tensions on partnership development. We do so by performing a qualitative analysis of research and innovation partnerships between hospitals, universities and firms. The analysis, based on three longitudinal case studies, reveal major differences in how alliance stakeholders perceive sources of tensions and impact of tensions. The study demonstrates that tensions are rarely reduced over time and become more visible and permanent characteristics of partnerships. But not all kinds of tensions have a negative impact on partnership development, and we discuss how different tensions influence partnership development. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20161210&r=ino |
| By: | Schankerman, Mark; Schuett, Florian |
| Abstract: | We develop an integrated framework to study how governments can improve the quality of patent screening. We focus on four key policy instruments: patent office examination, pre- and post-grant fees, and challenges in the courts. We show that there are important complementarities among these instruments, and identify conditions under which they can be used to achieve either partial or complete screening. We simulate the model to study the welfare effects of different policy reforms. We show that intensifying patent office examination, frontloading patent fees and capping litigation costs all generate welfare gains, while replacing examination with a pure registration system reduces welfare. |
| Keywords: | courts; innovation; litigation; patent fees; patents; screening |
| JEL: | D82 K41 L24 O31 O34 O38 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11688&r=ino |
| By: | Elert, Niklas (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN)) |
| Abstract: | The purpose of this paper is to nuance the widely held view that well-functioning institutions are the ultimate prerequisite for innovation and entrepreneurship. This is done by putting the spotlight on the role that formal and informal institutions have in serving the economic status quo, conserving old habits and incumbent economic interests. Therefore, existing institutions often act as impediments to entrepreneurship and innovation. We argue that a common yet underappreciated source of institutional change arises when individuals deviate from the behavior stipulated by existing institutions. All types of deviations are certainly not beneficial, but when they take the form of innovations introduced by entrepreneurs, they can be a particularly powerful source of economic and institutional change. An institutional setup should strike a balance between the need for stability that protects people’s expectations and flexibility and adaptability to innovations and the ensuing entrepreneurship. |
| Keywords: | Regulation; Norms; Innovation; Entrepreneurship |
| JEL: | L50 M13 O31 |
| Date: | 2016–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1144&r=ino |
| By: | Sari Pekkala Kerr; William Kerr; Çaǧlar Özden; Christopher Parsons |
| Abstract: | This paper reviews recent research regarding high-skilled migration. We adopt a data-driven perspective, bringing together and describing several ongoing research streams that range from the construction of global migration databases, to the legal codification of national policies regarding high-skilled migration, to the analysis of patent data regarding cross-border inventor movements. A common theme throughout this research is the importance of agglomeration economies for explaining high-skilled migration. We highlight some key recent findings and outline major gaps that we hope will be tackled in the near future. |
| JEL: | F15 F22 J15 J31 J44 L14 L26 O31 O32 O33 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:22926&r=ino |
| By: | Odilova, Shoirahon |
| Abstract: | In thus study we explore the association between patent protection and international trade, using data for 114 countries for the 2010-2015 years. Our results suggest non-linear (inverted U shape) link between IPR protection index and trade as a share of GDP. |
| Keywords: | trade; IPR; copyright; patents |
| JEL: | F1 |
| Date: | 2016–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:75600&r=ino |
| By: | Anton Badev; Maria Baird; Timothy Brezinski; Clinton Chen; Max Ellithorpe; Linda Fahy; Vanessa Kargenian; Kimberley Liao; Brendan Malone; Jeffrey C. Marquardt; David C. Mills; Wendy Ng; Anjana Ravi; Kathy Wang |
| Abstract: | Digital innovations in finance, loosely known as fintech, have garnered a great deal of attention across the financial industry. Distributed ledger technology (DLT) is one such innovation that has been cited as a means of transforming payment, clearing, and settlement (PCS) processes, including how funds are transferred and how securities, commodities, and derivatives are cleared and settled. DLT is a term that has been used by the industry in a variety of ways and so does not have a single definition. Because there is a wide spectrum of possible deployments of DLT, this paper will refer to the technology as some combination of components including peer-to-peer networking, distributed data storage, and cryptography that, among other things, can potentially change the way in which the storage, recordkeeping, and transfer of a digital asset is done. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2016-95&r=ino |
| By: | Todorova, Tamara |
| Abstract: | We stress some efficiency aspects of monopolistic competition justifying it on account of its tendency to innovate and the questionable excess capacity paradigm. Some further efficiency aspects revealed are product variety and transaction cost savings. We view the monopolistically competitive firm as an essential source of technological innovation, product variety and cost economies. While perfect competition is universally considered a benchmark and a social optimum, we consider it a strongly unrealistic theoretical setup where the monopolistically, rather than the perfectly, competitive firm turns out to be the true type of competition and social optimum in the real world of positive transaction costs. The monopolistically competitive firm not only offers product variety and innovation but is the optimal institutional arrangement under positive transaction costs. |
| Keywords: | monopolistic competition,variety |
| JEL: | D23 D24 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:148367&r=ino |
| By: | Katharina Laske (University of Cologne); Marina Schroeder (University of Cologne) |
| Abstract: | We introduce a novel experimental design in which creativity is incentivized and measured along three dimensions: quantity, quality and originality of ideas. We implement piece rate incentives for quantity alone, quantity in combination with quality and quantity in combination with originality and compare the results to a baseline with a fixed wage. We find that incentives significantly affect the quantity and average quality of ideas, but not the average originality. Incentives for both quantity and originality perform best in fostering innovative ideas. |
| Keywords: | creativity, multitasking, laboratory experiment, real-effort, incentives |
| JEL: | C91 J33 M52 O30 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cgr:cgsser:07-01&r=ino |
| By: | Taran Thune (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway); Magnus Gulbrandsen (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway) |
| Abstract: | This paper investigates how a combination of diverse sources of knowledge is important for generation of new ideas and addresses how institutional infrastructures and practices support integration of knowledge across organizations in medicine and life sciences. To do so, the paper investigates new product ideas that emerge from hospital and university employees, and looks at the extent of interaction between clinical and scientific environments in the idea generation process. The paper utilizes data about all new product ideas within life science that were reported in South-Eastern Norway in 2009 to 2011, as well as information about the individuals and teams that had been involved in disclosing these ideas. Interviews with inventors have also been carried out. The study shows that interaction across scientific and clinical domains is common and important for generating new product ideas. More than half of the disclosed life science ideas in the database come from groups representing multiple institutions with both scientific and clinical units or from individuals with multiple institutional affiliations. The interviews indicate that the infrastructure for cross-domain interaction is well-developed, particularly for research activities, which has a positive spillover effect on invention activities. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20161209&r=ino |
| By: | Quinn, William |
| Abstract: | Technological revolutions are often accompanied by substantial stock price reversals, but previous literature has produced competing explanations for why this is the case. This paper brings new evidence to this debate using data from the innovation-driven British Bicycle Mania of 1895-1900, in which cycle share prices rose by over 200 per cent before collapsing by more than 75 per cent. These price patterns are not fully explained by fundamentals or by changes in the nature of risk associated with cycle shares. Instead, the evidence from the Bicycle Mania supports the hypothesis of Perez (2009), who argues that new technology, high short-term profits, and loose monetary conditions increase the level of speculative investment, "decoupling" share prices from fundamentals. |
| Keywords: | technology,innovation,historical stock markets,asset price reversals |
| JEL: | G19 N23 O39 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qucehw:201606&r=ino |
| By: | Leonardo Melosi (Federal Reserve Bank of Chicago); Eran Yashiv (Tel Aviv University); Renato Faccini (Queen Mary, University of London) |
| Abstract: | We embed convex hiring and investment frictions in a New Keynesian DSGE model with intra-firm wage bargaining. We show that these frictions have crucial implications for the response of marginal costs, and consequently inflation; and for the co-movement of inflation with real variables. We elucidate how the presence of hiring and investment frictions affects the transmission mechanism of monetary and technological shocks by means of impulse responses. We find that hiring frictions are a key determinant of current period marginal costs; investment frictions also matter, by affecting expectations of future marginal costs. Estimating the model with private-sector US data shows that both hiring frictions and investment frictions help explain inflation dynamics. Smoothed estimates of marginal costs are radically different in models with and without hiring frictions. Our results indicate that hiring frictions explain around 50% of the variation in marginal costs, the real wage component explains around 35% while the remain 15% is accounted for by an intrafirm bargaining component. These estimates rely only on moderate levels of the relevant frictions. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed016:1606&r=ino |