nep-ino New Economics Papers
on Innovation
Issue of 2017‒01‒01
thirty-one papers chosen by
Uwe Cantner
University of Jena

  1. Technology Diffusion, Pareto Distribution, and Patent Policy By Keiichi Kishi
  2. Universities and collaborative innovation in EC-funded research projects: An analysis based on Innovation Radar data By Annarosa Pesole; Daniel Nepelski
  3. Knowledge Creates Markets: The Influence of Entrepreneurial Support and Patent Rights on Academic Entrepreneurship By Dirk Czarnitzk; Thorsten Doherr; Paula Schliessler; Katrin Hussinger; Andrew Toole
  4. Innovation, Creative Destruction and Structural Change: Firm-level Evidence from European Countries By Bernhard Dachs; Martin Hud; Christian Köhler; Bettina Peters
  5. Public subsidies for SME research and development: Empirical evaluation of collaborative versus individual place-based programs By Andrea Bellucci; Luca Pennacchio; Alberto Zazzaro
  6. Import Penetration and Domestic Innovation : A View into Dynamic Gains from Trade By Maria D. Tito
  7. Invention and diffusion of water supply and water efficiency technologies: insights from a global patent dataset By Declan Conway; Antoine Dechezlepretre; Ivan Haščič; Nick Johnstone
  8. Synergies for Innovation: Lessons Learnt from the S2E National Events By Andrea Conte; Nida Kamil Ozbolat
  9. Scientific research, firm heterogeneity and foreign R&D locations of multinational firms By Rene Belderbos; Bart Leten; Shinya Suzuki
  10. Harnessing the digital economy for developing countries By Carl Dahlman; Sam Mealy; Martin Wermelinger
  11. The growth and human capital structure of new firms over the business cycle By Brixy, Udo; Murmann, Martin
  12. How labor regulation a.ects innovation and investment: A neo-Schumpeterian approach. By Giorgio Calcagnini; Germana Giombini; Giuseppe Travaglini
  13. Social ties for labor market access - Lessons from the migration of East German inventors By Dorner, Matthias; Harhoff, Dietmar; Hinz, Tina; Hoisl, Karin; Bender, Stefan
  14. Screening for Patent Quality : Examination, Fees, and the Courts By Schankerman, Mark; Schütt, Florian
  15. Getting Started with PATSTAT Register By Gaetan de Rassenfosse; Martin Kracker; Gianluca Tarasconi
  16. The impact of trade and technology on wage components By Borrs, Linda; Knauth, Florian
  17. How Does Technological Change Affect Quality-Adjusted Prices in Health Care? Systematic Evidence from Thousands of Innovations By Kristopher J. Hult; Sonia Jaffe; Tomas J. Philipson
  18. Procrastination in the Workplace: Evidence from the U.S. Patent Office By Michael D. Frakes; Melissa F. Wasserman
  19. Causal Mechanisms in Organization and Innovation Studies By Hedström, Peter; Wennberg, Karl
  20. Ökonomische, soziale und politische Innovationen: Klärungsversuche By Rehfeld, Dieter; Butzin, Anna; Terstriep, Judith
  21. What drives export performance of firms in Eastern and Western Poland? By Pawel Gajewski; Grzegorz Tchorek
  22. Developments in new entrepreneurial activity in Finland By Kotiranta, Annu; Pajarinen, Mika; Rouvinen, Petri
  23. Implementing Smart Specialisation Strategies: A Handbook By Inmaculada PERIANEZ FORTE; MARINELLI Elisabetta; Dominique FORAY; John Huw EDWARDS; Martina PERTOLDI; Kevin Morgan; Krzysztof MIESZKOWSKI; Javier GOMEZ PRIETO; Claire Nauwelaers; Ruslan RAKHMATULLIN; Lina STANIONYTE; Åge MARIUSSEN; Carlo GIANELLE; Alexander KLEIBRINK; Mathieu DOUSSINEAU
  24. The Opportunities and Challenges of Fintech : a speech at the Conference on Financial Innovation at the Board of Governors of the Federal Reserve System, Washington, D.C., December 2, 2016. By Brainard, Lael
  25. Evidence on the Within-Industry Agglomeration of R&D, Production, and Administrative Occupations By Goldman, Benjamin; Klier, Thomas H.; Walstrum, Thomas
  26. How do Entrepreneurial Bosses influence their Employees' Future Entrepreneurship Choices? By Vera Rocha; Mirjam van Praag
  27. New Indicators of Smart Specialization: A related diversification approach applied to European Regions By Artur Santoalha
  28. Individual and structural influences on the entrepreneurial activities of academics By Bijedić, Teita; Maaß, Frank; Schröder, Christian; Werner, Arndt
  29. An Evaluation of German Active Labor Market Policies and its Entrepreneurship Promotion By Moritz Zöllner; Michael Fritsch; Michael Wyrwich
  30. Do You Dare? The Effect of Economic Conditions on Entrepreneurship among College Graduates By Hendrik Beiler
  31. Creative Life Cycles: Three Myths By David Galenson

  1. By: Keiichi Kishi (Graduate School of Economics, Osaka University)
    Abstract: We develop a Schumpeterian growth model based on technology diffu- sion. Each rm has a different productivity level. New entrants enter into the targeted industries by learning the existing technologies owned by the other rms. Some of the new entrants succeed to adopt the frontier tech- nology. The other new entrants may adopt the non-frontier technologies. We show that if it is extremely difficult to adopt the frontier technology, the technology diffusion generates the Pareto distributions of rm size, productivity, and innovation size. Further, we introduce the minimum innovation size required for a patent into the model. That is, the patent office grants the patents only for superior inventions. We show that an increase in minimum innovation size may reduce the average patentable innovation size because of an endogenous response of the distribution of innovation size. This implies that if the patent office requires the superior innovations for the patents, it may cause innovators to produce a larger amount of inferior patentable innovations.
    Keywords: Technology diffusion, Innovation, Pareto distribution
    JEL: O30 O33 O34
    Date: 2016–12
  2. By: Annarosa Pesole (European Commission - JRC); Daniel Nepelski (European Commission - JRC)
    Abstract: The European Commission's Framework Programme (FP) contributes an important share of R&D expenditure in Europe. For example, the Horizon 2020 is the biggest EU Research and Innovation programme ever launched which makes nearly €80 billion available over 7 years (2014 to 2020). In addition to financing science and technology development, one of the main objectives of the FP is to foster international collaboration among research organizations and private firms, both large and small. Collaboration is a key conduit for innovation-related knowledge flows for both firms that use R&D and those that are not R&D-active. The main idea behind the Framework Programme is that innovation often results from the interaction and cooperative efforts of different organisation devoted to the achievement of a common goal. This study builds on the first IR report: it extends the number of reviewed projects, and it looks at the relationship between the type of innovators and the potential of their innovations. A particular emphasis is put on collaboration between universities and private organizations. Furthermore, the report analyses whether universities and private organizations have different needs and face different bottlenecks to bring their innovations to the market.
    Keywords: Innovation Radar, Collaboration, Industry, University, SMEs, EC-funded
    Date: 2016–12
  3. By: Dirk Czarnitzk (KU Leuven, Belgium); Thorsten Doherr (Centre for European Economic Research (ZEW), Mannheim); Paula Schliessler (Centre for European Economic Research (ZEW), Mannheim); Katrin Hussinger (CREA, Université du Luxembourg); Andrew Toole (US Patent and Trademark Office, Alexandria, USA)
    Abstract: We use an exogenous change in German Federal law to examine how entrepreneurial support and the ownership of patent rights influence academic entrepreneurship. In 2002, the German Federal Government enacted a major reform called Knowledge Creates Markets that set up new infrastructure to facilitate university-industry technology transfer and shifted the ownership of patent rights from university researchers to their universities. Based on a novel researcher-level panel database that includes a control group not affected by the policy change, we find no evidence that the new infrastructure resulted in an increase in start-up companies by university researchers. The shift in patent rights may have strengthened the relationship between patents on university-discovered inventions and university start-ups; however, it substantially decreased the volume of patents with the largest decrease taking place in faculty-firm patenting relationships.
    Keywords: Intellectual property, patents, technology transfer, policy evaluation
    JEL: O34 O38
    Date: 2016
  4. By: Bernhard Dachs (Austrian Institute of Technology, Vienna); Martin Hud (ZEW Centre for European Economic Research, Mannheim); Christian Köhler (ZEW Centre for European Economic Research, Mannheim); Bettina Peters (ZEW, Mannheim, and CREA, University of Luxembourg)
    Abstract: The shift of employment from lower to higher productive firms is an important driver for structural change and industry dynamics. We investigate this reallocation in terms of employment gains and losses from innovation. New employment created by product innovation may be offset by employment losses in related products, known as ‘cannibalisation’ or ‘business stealing’ effects in the literature, by employment losses from process and organisational innovation and by general productivity increases. The paper investigates this effect empirically with a large dataset from the European Community Innovation Survey (CIS). We find that employment gains and losses increase with technology intensity of the sector. High-technology manufacturing shows the strongest employment gains and losses from innovation, followed by knowledge-intensive services, low- technology manufacturing and less knowledge-intensive services. The net contribution of innovation to employment growth is mostly positive, an exception being manufacturing industries in recession periods.
    Keywords: Innovation, employment, reallocation, technology intensity, compensation effect, displacement effect, cannibalisation effect.
    JEL: O33 J23 C26 D2
    Date: 2016
  5. By: Andrea Bellucci (Institute for Applied Economic Research (IAW), Germany, MoFiR, Italy); Luca Pennacchio (Dipartimento di Scienze Economiche e Statistiche - Universita' degli Studi di Napoli - "Federico II"); Alberto Zazzaro (Universita' Politecnica delle Marche, Dipartimento di Scienze Economiche e Sociali, MoFiR - Ancona, Italy, CSEF, Naples, Italy)
    Abstract: This paper provides novel empirical evidence on the effectiveness of regional research and innovation policies for small and medium-sized firms (SMEs). Two subsidy programs implemented at the regional level in central Italy are investigated. One program targeted firms' individual research, while the other addressed collaborative research between firms and universities. Using a matched difference-in-differences approach our empirical analysis shows a differentiated impact of the two programs. The first was successful in stimulating additional private R&D investment and, at least partially, in improving firms. performance. The second program had weaker effects, mostly restricted to R&D expenditure and employment. Otherwise, subsidized firms show a reduction in their tangible and intangible investments, thus casting doubts on the benefits of subsidies forcing R&D collaborations.
    Keywords: Research and innovation; place-based regional subsidies; impact evaluation, small- and mediumsized firms, collaborative research programs.
    JEL: G32 H81 L52 O38 R58
    Date: 2016–12
  6. By: Maria D. Tito
    Abstract: In this paper, we revisit the link between innovation activity, measured by the number of patent applications, and import flows.
    Date: 2016–12–16
  7. By: Declan Conway; Antoine Dechezlepretre; Ivan Haščič; Nick Johnstone
    Abstract: This paper identifies over 50 000 patents filed worldwide in various water-related technologies between 1990 and 2010, distinguishing between those related to availability (supply) and conservation (demand) technologies. Patenting activity is analysed – including inventive activity by country and technology, international diffusion of such water-related technologies, and international collaboration in technology development. Three results stand out from our analysis. First, although inventive activity in water-related technologies has been increasing over the last two decades, this growth has been disproportionately concentrated on supply-side technologies. Second, whilst 80% of water-related invention worldwide occurs in countries with low or moderate water scarcity, several countries with absolute or chronic water scarcity are relatively specialized in water efficiency technologies. Finally, although we observe a positive correlation between water scarcity and local filings of water patents, some countries with high water availability, in particular Switzerland or Norway, nevertheless appear as significant markets for water-efficiency technologies. This suggests that drivers other than local demand, like regulation and social and cultural factors, play a role in explaining the global flows of technologies. And finally, the extent to which innovation is "internationalised" shows some distinct patterns relative to those observed for innovation in technologies in general.
    Keywords: water security; resource scarcity; invention; international technology diffusion
    JEL: Q25 Q31 Q55
    Date: 2015–12–15
  8. By: Andrea Conte (European Commission – JRC); Nida Kamil Ozbolat (European Commission – JRC)
    Abstract: In this issue - Smart Specialisation Strategies (S3) play a key role in fostering an efficient and inclusive Research and Innovation (R&I) ecosystem by creating the right framework for focused investments based on selected high value added priorities and a shared vision of territorial development. - Building synergies can contribute to two complementary objectives: helping to close the innovation divide across European territories and increasing the efficiency and effectiveness of public policy intervention. - Synergies between ESIF and other funding programmes (e.g. COSME, Horizon 2020) could maximise the specific value added of S3 investments such as the capacity to support effectively research capacity building and the exploitation of research results for raising the overall social/economic impact of European R&I. - Quality of R&I "governance" (e.g. long-term planning, monitoring and evaluation, stakeholders' involvement) appears as the key factor for achieving a successful implementation of R&I investments under the current S3.
    Keywords: Stairway to Excellence, Smart Specialisation, ESIF, Horizon 2020, European Funds, Synergies, Policy Events, R&I, Governance, Innovation
    Date: 2016–12
  9. By: Rene Belderbos; Bart Leten; Shinya Suzuki
    Abstract: We examine the influence of host countries’ scientific research strengths on global R&D location choices by multinational firms. In an analysis of 277 new R&D activities identified for 175 firms in 40 host countries and 30 technology fields, we find that the strength of relevant university research positively affects the likelihood that host countries attract foreign R&D. When allowing for firm heterogeneity, university scientific research appears only a significant factor for firms with a strong science orientation in their R&D activities. Host countries’ corporate scientific research has no systematic influence on R&D location choices. Empirical results are replicated in an analysis at the regional level covering regions in Europe the US, and Japan.
    Keywords: R&D Internationalization, Knowledge sourcing, Absorptive capacity, Industry-science links
    Date: 2016–12
  10. By: Carl Dahlman (OECD); Sam Mealy (OECD); Martin Wermelinger (OECD)
    Abstract: This report makes a call for why the digital economy matters for developing countries and what they need to consider when developing a national digital strategy. The world is undergoing a digital revolution with significant implications for global economies and livelihoods. This revolution is predicated on the ever-increasing pace of technological innovation and diffusion. Digital technologies and their attendant applications are reshaping whole domains of human activity, and are spreading across the world faster than previous waves of technological innovation. The digital revolution is thus too important for any country to overlook. As outlined in Section II, the digital economy can be harnessed for inclusive and sustainable growth: digital technologies make life easier for citizens and consumers, raise the productivity of workers and firms, and help governments extend key services to those who need them most. However, this does not just happen randomly: governments must engage in strategic planning to maximise the development impact of digitalisation and ensure that its benefits are evenly distributed. Using the experience of leading economies in the digital space, Section III looks at some of the broad and generic enabling factors that developing countries can develop and use as foundations for their digital economies. The concluding section, Section IV, examines three key lessons developing countries can learn from other countries’ digital experiences. It provides some guiding principles around thinking about how to craft a national digital strategy that builds on top of the enablers of the digital economy.
    Keywords: digitalisation, inclusive growth, policy, technology
    JEL: O31 O32 O35 O38
    Date: 2016–12–22
  11. By: Brixy, Udo (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]); Murmann, Martin (Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany])
    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-yearold 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." (Author's abstract, IAB-Doku) ((en))
    JEL: E32 J23 L26 M13 L25 L11 D22
    Date: 2016–12–19
  12. By: Giorgio Calcagnini (Department of Economics, Society, and Politics Universita' di Urbino Carlo Bo); Germana Giombini (Department of Economics, Society, and Politics Universita' di Urbino Carlo Bo); Giuseppe Travaglini (Universita' di Urbino Carlo Bo, Facolta' di Economia, DESP, Dipartimento di Economia Societa' e Politica)
    Abstract: Theoretical and empirical models provide ambiguous responses on the relationship between labor regulation, innovation and investment. Labor regulation tends to raise firms. adjustment costs. But, also, labor regulation stimulates firms to make innovations and investment 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 a.ect innovation and investment.
    Keywords: Endogenous growth model; Labor regulation; Innovation, Investment.
    JEL: O4 J5
    Date: 2016–12
  13. By: Dorner, Matthias; Harhoff, Dietmar; Hinz, Tina; Hoisl, Karin; Bender, Stefan
    Abstract: We study the impact of social ties on the migration of inventors from East to West Germany, using the fall of the Iron Curtain and German reunification as a natural experiment. We identify East German inventors via their patenting track records prior to 1990 and their social security records in the German labor market after reunification. Modeling inventor migration to West German regions after 1990, we find that Western regions with stronger historically determined social ties across the former East-West border attracted more inventors after the fall of the Iron Curtain than regions without such ties. However, mobility decisions made by inventors with outstanding patenting track records (star inventors) were not impacted by social ties. We conclude that social ties support labor market access for migrant inventors and determine regional choices while dependence on these ties is substantially reduced for star performers.
    JEL: J60 O30 P20 R23
    Date: 2016–12–06
  14. By: Schankerman, Mark; Schütt, Florian (Tilburg University, Center For Economic Research)
    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: innovation; patents; screening; litigation; courts; patent fees
    JEL: D82 K41 L24 O31 O34 O38
    Date: 2016
  15. By: Gaetan de Rassenfosse (Ecole polytechnique federale de Lausanne); Martin Kracker (European Patent Office); Gianluca Tarasconi (Universita Bocconi)
    Abstract: This paper provides a technical introduction to the PATSTAT Register database, which contains bibliographical, procedural and legal status data on patent applications handled by the European Patent Office. It presents eight MySQL queries that cover some of the most relevant aspects of the database for research purposes. It targets academic researchers and practitioners who are familiar with the PATSTAT database and the MySQL language.
    Keywords: patent indicator, PATSTAT, licensing, opposition
    JEL: O34 O38
    Date: 2017–01
  16. By: Borrs, Linda; Knauth, Florian
    Abstract: We use a large sample of German workers to analyze the effect of low-wage competition with China and Eastern Europe (the East) on the wage structure within German manufacturing industries. Utilizing the method by Abowd et al. (1999), we decompose wages into firm and worker components. We find that the rise of market access and competitiveness of the East has a substantial impact on the dispersion of the worker wage component and in part on positive assortative matching. Trade fails to explain changes in the firm wage premium. The rising dispersion in worker-specific wages can be attributed to increasing skill premia and to changes in the extensive margin of the workforce, leading to a wage polarization for the remaining within-industry workers. We also account for technological change by considering how many routine-intensive jobs are substituted within an industry. The more routine jobs are cut, the higher is the effect on wage inequality, especially on the dispersion of worker-specific wages. Overall, trade explains up to 19% of the recent increase in wage inequality and slightly exceeds the technology effect that accounts for approximately 17%.
    Keywords: wage decomposition,wage inequality,globalization,gravity
    JEL: F16 J31 O33 F14
    Date: 2016
  17. By: Kristopher J. Hult; Sonia Jaffe; Tomas J. Philipson
    Abstract: Medical innovations have improved survival and treatment for many diseases but have simultaneously raised spending on health care. Many health economists believe that technological change is the major factor driving the growth of the heath care sector. Whether quality has increased as much as spending is a central question for both positive and normative analysis of this sector. This is a question of the impact of new innovations on quality-adjusted prices in health care. We perform a systematic analysis of the impact of technological change on quality-adjusted prices, with over six thousand comparisons of innovations to incumbent technologies. For each innovation in our dataset, we observe its price and quality, as well as the price and quality of an incumbent technology treating the same disease. Our main finding is that an innovation’s quality-adjusted prices is higher than the incumbent’s for about two-thirds (68%) of innovations. Despite this finding, we argue that quality-adjusted prices may fall or rise over time depending on how fast prices decline for a given treatment over time. We calibrate that price declines of 4% between the time when a treatment is a new innovation and the time when it has become the incumbent would be sufficient to offset the observed price difference between innovators and incumbents for a majority of indications. Using standard duopoly models of price competition for differentiated products, we analyze and assess empirically the conditions under which quality-adjusted prices will be higher for innovators than incumbents. We conclude by discussing the conditions particular to the health care industry that may result in less rapid declines, or even increases, in quality-adjusted prices over time.
    JEL: I1 O3
    Date: 2016–12
  18. By: Michael D. Frakes; Melissa F. Wasserman
    Abstract: Despite much theoretical attention over the concept of procrastination and much exploration of this phenomenon in laboratory settings, there remain few empirical investigations into procrastination in real world contexts, especially in the workplace. In this paper, we attempt to fill these gaps by exploring procrastination among U.S. patent examiners. We find that nearly half of examiners’ first substantive reports are completed immediately prior to the operable deadlines. Moreover, we find a range of additional empirical markers to support that this “endloading” of reviews results from a model of procrastination rather than various time-consistent models of behavior. In one such approach, we take advantage of the natural experiment afforded by the Patent Office’s staggered implementation of its telecommuting program, a development that we theorize might exacerbate employee self-control problems. Supporting the procrastination theory, we estimate an immediate spike in application endloading and other indicia of procrastination upon the onset of telecommuting. Finally, we assess the consequences of procrastination for the quality of the completed reviews. This analysis suggests that the primary harm stemming from procrastination is delay in the ultimate application process, with rushed reviews completed at deadlines resulting in the need for revisions in subsequent rounds of review.
    JEL: D03 J01 K0 O34
    Date: 2016–12
  19. By: Hedström, Peter (Linköping University); Wennberg, Karl (Linköping University)
    Abstract: We outline the guiding ideas behind mechanisms-based theorizing in analytical sociology as a fruitful alternative to economics-inspired research on identification of causal effects, and discuss the potential of mechanisms-based theorizing for further development in organization and innovation studies. We discuss the realist stance on providing broader explanations as an identifying characteristic of the mechanism approach, its focus on the dynamic processes through which outcomes to be explained are brought about, and outline theoretical and methodological implications for organization and innovation studies.
    Keywords: Research Methods; Mechanisms; Causality
    JEL: C00
    Date: 2016–12–22
  20. By: Rehfeld, Dieter; Butzin, Anna; Terstriep, Judith
    Abstract: Innovation hat sich mittlerweile als ein weit über das ökonomische Feld hinaus reichendes Konzept etabliert. Mit der Verbreitung in andere gesellschaftliche Felder wird der Innovationsbegriff zunehmend diffus. Notwendig zur Klärung eines differenzierten Verständnisses von Innovation ist ein übergreifender gesellschaftswissenschaftlicher Ansatz. Innovationen folgen in unterschiedlichen gesellschaftlichen Feldern jeweils spezifischen Mustern. Innovationen in unterschiedlichen Feldern hängen allerdings auch oft eng miteinander zusammen. Die Frage nach dem Zusammenspiel zwischen ökonomischen, sozialen und politischen Innovationen führt in letzter Konsequenz zu der Frage nach einer neuen Arbeitsteilung zwischen Staat, Wirtschaft und Gesellschaft.
    Date: 2016
  21. By: Pawel Gajewski (Institute of Economic Sciences, Polish Academy of Sciences); Grzegorz Tchorek (Faculty of Management, University of Warsaw)
    Abstract: We use a unique firm-level survey dataset that draws from the EFIGE (European Firms In Global Economy) questionnaire, to unveil differences in factors driving export performance in structurally most diverse areas of Poland. While conventional results about the role of size, foreign ownership and innovation activity are confirmed at the aggregate level, the picture breaks down when Western and Eastern macroregions are extracted. Our results suggest that the common perception of a more developed West (Poland “A”) and a backward East (Poland “B”) might be outdated. Rather, firms in both regions seem to follow distinct strategies and have dissimilar success factors for competing internationally. Interestingly, export performance in the East is found to benefit from family ties in business, but also product innovation and non-price competitiveness. In the West, it is in turn associated mostly with size and foreign ownership. Overall, our results on the one hand add support to the ‘New’ new trade theory and ‘New’ new economic geography’s premises related to the importance of microeconomic factors and, on the other, shed a new light on the pattern of regional development in Poland. We also discuss some implications for policy makers and managers and suggest directions of further research.
    Keywords: trade, region, firm, competitiveness
    JEL: F14 R12
    Date: 2017–01
  22. By: Kotiranta, Annu; Pajarinen, Mika; Rouvinen, Petri
    Abstract: About half of all new business activity in Finland can be categorized as being entrepreneurial. The number of this kind of new businesses has not increased dramatically during the last ten years. However, the characteristics of these businesses have changed. Nowadays, new entrepreneurs have higher education background, they have more likely work experience from a relevant field, they are more innovation-oriented, and they have higher initial growth aspirations. Their businesses are more likely to seek sales growth by utilizing international markets and by focusing more on consumer markets and less on business-to-business markets. On the other hand, maybe due to prolonged recession in the Finnish economy, the higher share of new entrepreneurial businesses is being started because there are no better opportunities to get a job. Heavy regulation and tight legislation are being seen as the most significant disincentives at the start-up phase. Growth-oriented new entrepreneurial firms see financial issues and labor market rigidities as significant restrictions for growth.
    Keywords: Entrepreneurship, growth firm, start-ups, growth-orientation, enterprise policy
    JEL: D92 L26 L53 M13
    Date: 2016–12–22
  23. By: Inmaculada PERIANEZ FORTE (European Commission - JRC); MARINELLI Elisabetta (European Commission - JRC); Dominique FORAY (École polytechnique fédérale de Lausanne); John Huw EDWARDS (European Commission - JRC); Martina PERTOLDI (European Commission - JRC); Kevin Morgan (Cardiff University); Krzysztof MIESZKOWSKI (European Commission - JRC); Javier GOMEZ PRIETO (European Commission - JRC); Claire Nauwelaers (Independent STI policy expert); Ruslan RAKHMATULLIN (European Commission - JRC); Lina STANIONYTE (European Commission - JRC); Åge MARIUSSEN (Nordlands Research Institute,Norway); Carlo GIANELLE (European Commission - JRC); Alexander KLEIBRINK (European Commission - JRC); Mathieu DOUSSINEAU (European Commission - JRC)
    Abstract: Smart Specialisation represents the most comprehensive industrial policy experiment being implemented in Europe. Conceived within the reformed Cohesion policy of the European Commission, Smart Specialisation is a place-based policy promoting economic transformation and investment in innovative activities in selected areas of the socio-economic system in order to achieve a smart, inclusive and sustainable growth. Drawing on empirical evidence, the Smart Specialisation Implementation Handbook is targeted at policy-makers and regional development professionals who are crafting their innovation policy according to a common set of principles and methodologies. The handbook aims at taking stock of the Smart Specialisation experience and presenting its current state of the art, both in terms of conceptual developments and practical implementation. It addresses five key milestones of the implementation process: 1) The Entrepreneurial Discovery Process (EDP) cycle: from priority selection to strategy implementation 2) Good governance: principles and challenges 3) From priorities to projects: selection criteria and selection process 4) Transnational cooperation and value chains 5) Monitoring
    Keywords: Smart Specialisation - Innovation policy - Regional Development - Policy Implementation - Dimensions of collaboration
    Date: 2016–12
  24. By: Brainard, Lael (Board of Governors of the Federal Reserve System (U.S.))
    Date: 2016–12–02
  25. By: Goldman, Benjamin (Standford Institute for Economic Policy Research); Klier, Thomas H. (Federal Reserve Bank of Chicago); Walstrum, Thomas (Federal Reserve Bank of Chicago)
    Abstract: To date, most empirical studies of industrial agglomeration rely on data where observations are assigned an industry code based on classification systems such as NAICS in North America and NACE in Europe. This study combines industry data with occupation data to show that there are important differences in the spatial patterns of occupation groups within the widely used industry definitions. We focus on workers in manufacturing industries, whose occupations almost always fit into three groups: production, administrative, or R&D. We then employ two approaches to document the spatial distributions of each group within an industry. First, we calculate the distribution of employment shares across local labor markets and second, we calculate a version of the Duranton and Overman (2005) agglomeration index. Both approaches reveal appreciable differences in the spatial distribution of occupation groups within most manufacturing industries. These differences have important implications for our understanding of the sources of industrial agglomeration, the spatial agglomeration of innovation, the effectiveness of local economic development initiatives, and the spatial properties of particular industries.
    Keywords: Agglomeration; automobiles; manufacturing industries; labor markets; occupations
    JEL: J24 L6 L62 O10 R12
    Date: 2016–11–14
  26. By: Vera Rocha (Copenhagen Business School, Denmark); Mirjam van Praag (Copenhagen Business School, Faculty of Economics and Business, University of Amsterdam and Tinbergen Institute, The Netherlands)
    Abstract: We adopt a process-based approach to investigate the influence of entrepreneurial bosses on the two main decisions of employees towards becoming entrepreneurs: exit from the current firm and entry into entrepreneurship. In other words, we study the push and pull mechanisms possibly underlying the influence of entrepreneurial bosses. We do so by employing an identification strategy based on comparisons of same-gender matches of bosses and employees, using rich register data for Denmark. We show that same-gender entrepreneurial bosses have a great impact on employees’ future entrepreneurship choices, especially among women. We do not find any evidence that female bosses push female employees out of the workplace, by creating a discriminatory environment that forces them to search for alternative career paths. Instead, our analysis finds consistent support for pull mechanisms, with role modeling being the main explanation for the positive influence of female entrepreneurial bosses on female employees’ transition into entrepreneurship. We show that the female boss effect is greater than other social interactions identified in prior research. We conclude that entrepreneurial bosses can be role models and female entrepreneurial bosses may thus act as a lever to reducing gender gaps in entrepreneurship rates.
    Keywords: Entrepreneurship; role models; gender gaps; female leadership
    JEL: J19 J24 L26 M12 M13
    Date: 2016–12–16
  27. By: Artur Santoalha (TIK Center for Technology, Innovation and Culture, University of Oslo, Norway)
    Abstract: This paper proposes two new indicators of S3 (Smart Specialization) to investigate where different European regions stand in terms of this policy concept. The first indicator is designed to quantitatively rank regions in a given year, and the other is elaborated to capture the evolution of S3 over time. The suggested indexes are based on the concept of technological relatedness, and applied to the case of European regions (NUTS 2) by means of the OECD REGPAT database. The results suggest that the process of S3 is more developed in regions located at the core of the European continent, as well as in Northern European regions. In contrast, the regions located in Southern and Eastern Europe persistently present lower scores than other European regions.
    Date: 2016–12
  28. By: Bijedić, Teita; Maaß, Frank; Schröder, Christian; Werner, Arndt
    Abstract: In this paper we study how and to what extend (i) individual working conditions (e.g. peers, working atmosphere, work contract incentives, wage satisfaction), (ii) institutions (e.g. technology transfer offices, patent exploitation agencies, chair in entrepreneurship or awards for academic entrepreneurship) and (iii) network relationships simultaneously affect the likelihood of engaging in entrepreneurial activities (nascent entrepreneurship) in academia. Using unique data collected from 5.992 academic scientists in 73 German Universities Germany, we find that entrepreneurial peers and performance based monetary incentives have a strong positive effect on the entrepreneurial intentions. We show that, although there is a comprehensive support infrastructure for start-ups in German academic institutions, these services are little known amongst their staff. Finally we find that market related networks show a high correspondence with high entrepreneurial intentions, whereas networks within the own university do not have any impact. Several mentioned aspects were analyzed before, but mostly on a limited sample (e.g. only stem field), isolated personal variables (e.g. gender) or isolated environmental aspects (e.g. peer groups). Our study provides a holistic view on the impact of several university-specific structural factors on entrepreneurial intentions among academic scientists in Germany by simultaneously focusing on personal and occupational characteristics for different faculties. @Wissenschaftliches Hochschulpersonal generiert im Rahmen seiner Forschungstätigkeit Innovationen und verfügt über aktuelles Wissen, das als Basis für eine innovative Unternehmensgründung betrachtet werden kann. Bisher fehlte jedoch eine umfassende empirische Analyse, inwieweit die bestehenden institutionellen Rahmenbedingungen die Gründungsneigung von Wissenschaftlern beeinflussen. Hier setzt die vorliegende Studie an, indem sie die Wirkung personenbezogener und institutioneller Einflussfaktoren (wie Arbeitsbedingungen, Netzwerkbeziehungen und gründungsfördernde Hochschulangebote) untersucht und potenzielle institutionelle Handlungsfelder identifiziert. Die Befragung von 5.992 Wissenschaftlern an 73 deutschen Hochschulen hat gezeigt, dass insbesondere monetäre Anreize im Forschungskontext aber auch Rollenvorbilder im kollegialen Umfeld, Netzwerke - hier insbesondere außerhalb der eigenen Institution - und spezifische Infrastrukturangebote gründungsfördernd wirken.
    Keywords: Academic Entrepreneurship,Nascent Entrepreneurship,German Universities,Institutions,Working Conditions,Knowledge Transfer
    JEL: O32 M13 J24
    Date: 2016
  29. By: Moritz Zöllner (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Fritsch (School of Economics and Business Administration, Friedrich-Schiller-University Jena); Michael Wyrwich (School of Economics and Business Administration, Friedrich-Schiller-University Jena)
    Abstract: This paper reviews the results of studies that investigate the most important active labour market policy (ALMP) measures in Germany. A particular focus is on programs devoted to foster entrepreneurship which can make important contributions to a country's growth and social welfare. The available evidence suggests that most ALMP measures increase labour market prospects of the participants. Evaluations of the entrepreneurship promotion activities show high success rates as well as high cost efficiency. The bulk share of participants of entrepreneurship measures is still self-employed after several years and nearly one third of these businesses had at least one employee. We mention problems regarding the evaluation of previous programs and highlight future challenges of German ALMP.
    Keywords: Active labour market policy, evaluations, effectiveness, entrepreneurship
    JEL: J08 J64 J68 L26
    Date: 2016–12–14
  30. By: Hendrik Beiler
    Abstract: I estimate the effect of business cycle conditions on the decision to enter entrepreneurship after college graduation. I proxy for economic conditions at the field of study level, constructed from industry growth rates which I weight to fields of study using employees' industry - college major distribution. This enables to control for unobserved differences between graduation cohorts such as technological change or shifts in cohort composition. Using administrative survey data for Germany, I find that a one percentage point increase in employment growth in the year of graduation raises entry into entrepreneurship by about 30% in the first year after graduation. The effect halves in the second year and is close to zero in the third and fourth year after graduation. Interestingly, exit from entrepreneurship decreases slightly, which suggests that the additional entrepreneurs are fairly stable in the first years after entry. Taken together, my results imply that "lucky" graduation cohorts are persistently more likely to enter and persist in entrepreneurship than "recessionary" cohorts, at least during the first four years after graduation that I examine. My results have relevant implications for policy measures such as startup subsidies, since entrepreneurship is commonly acknowledged as a central source of job creation and economic dynamism.
    Keywords: Entrepreneurship, Business Cycles, Higher Education, Occupational Choice, Firm Entry
    JEL: L26 E32 I23 J23 J24 M13
    Date: 2016–11–01
  31. By: David Galenson (University of Chicago)
    Abstract: This paper debunks three persistent myths: that creativity is greatest in youth, that wisdom hinders creativity, and that every discipline has a single peak age of creativity. These myths systematically neglect the achievements of experimental innovators – including such figures as Charles Darwin, Mark Twain, Paul Cézanne, Robert Frost, Virginia Woolf, Frank Lloyd Wright, and Alfred Hitchcock – who develop their work gradually over long periods to arrive at major contributions. Recent research has shown that experimental innovators are greatest late in life, that their wisdom increases their creativity, and that virtually every intellectual domain has great experimental old masters as well as conceptual young geniuses. In a society that devotes as much effort as ours to eliminating such pernicious forms of discrimination as racism and sexism, it is past time to recognize that these myths about creativity make a damaging contribution to ageism.
    Keywords: creativity, innovation, ageism
    Date: 2016

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