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on Innovation |
| By: | C. Conti (Sapienza University of Rome); M. L. Mancusi (Catholic University (Milan) and CRIOS, Bocconi University); F. Sanna-Randaccio (Sapienza University of Rome); R. Sestini (Sapienza University of Rome); E. Verdolini (Fondazione CMCC and Fondazione Eni Enrico Mattei) |
| Abstract: | A major concern regarding innovation in clean technologies in the EU is that the fragmentation of its innovation system may hinder knowledge flows and, consequently, spillovers across member countries. A low intensity of knowledge flows across EU states can negatively impact their technological base, suppressing opportunities for further innovations and hindering the movement towards the technological frontier. This paper evaluates the fragmentation of the EU innovation system in the field of renewable energy sources (RES) by examining the intensity and direction of knowledge spillovers over the years 1985-2010. We modify the original double exponential knowledge diffusion model to provide information on the degree of integration of EU countries’ innovation efforts and to assess how citation patterns changed over time. We show that EU RES inventors have increasingly built “on the shoulders of the other EU giants”, intensifying their citations to other member countries and decreasing those to domestic inventors. Furthermore, the EU strengthened its position as source of RES knowledge for the US. Finally, we show that this pattern is peculiar to RES, with other traditional (i.e. fossil-based) energy technologies behaving in a completely different way. |
| Keywords: | Knowledge Spillovers, Renewable Energy Technologies, Fossil Energy Technologies, EU Innovation |
| JEL: | Q55 Q58 Q42 O31 O33 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2016.71&r=ino |
| By: | Charlie Karlsson; Sam Tavassoli |
| Abstract: | This paper analyzes the role of regional characteristics on innovation persistency among firms. Using five waves of the Community Innovation Survey in Sweden, we have traced the innovative behavior of firms over a ten-year period, i.e. between 2002 and 2012. On the one hand, we distinguish between four types of innovations: process, product, marketing, and organizational innovations. On the other hand, we considered various regional characteristics including knowledge stock, market thickness, and extent of knowledge spillovers. Using a dynamic Probit model, we found that, in general, those firms located in the regions with higher stock of knowledge, thicker market, and higher extent of knowledge spillovers exhibit higher probability of being a persistent innovators. Such higher persistency is mostly pronounced for product innovators. |
| Keywords: | location; persistence; innovation; product innovations; process innovations; market innovations; organizational innovations; firms; Community Inno¬vation Survey |
| JEL: | D22 L20 O31 O32 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa16p154&r=ino |
| By: | Maria Estela Ferreira |
| Abstract: | A Contribution for the Identification of Indicators for the Evaluation of the Impact on Regional Innovation and Development of an EU Program for University Research in the North of Portugal ABSTRACT Co-financed Programs by the European Union have been with no doubt relevant to contribute to some endeavours of Research and Development in the North of Portugal. This paper intends to provide an insight view on the way some available and/ or feasible indicators can illustrate the results and impact, specifically on Regional Innovation and Development, of an EU Program for Northern Universities, which was devoted to a large spectrum of matters. After an introductory section summarizing some literature mining as relevant to be had in mind while evaluating such Program, the paper briefly describes the three main Universities at stake. That description is followed by a discussion of the relevance of each indicator for the undertaken purposes and, finally, the way the Program could hopefully contribute to Cohesion Policy of the EU, as well as Europe 2020 objectives is stressed. |
| Keywords: | University; Innovation;regional development; Indicators |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa16p387&r=ino |
| By: | Ghislandi, Simone; Kuhn, Michael |
| Abstract: | It is frequently argued that the high costs of clinical trials prior to the admission of new pharmaceuticals are stifling innovation. At the same time, regulation of the access to markets is often justified on the basis of consumers` inability to detect the true quality of a product. We examine these arguments from an information economic perspective by setting a framework where the incentives to invest in R&D are influenced by the information structure prevailing when the product is launched in the market at a later stage. In this setting, by changing the information structure, regulation (or the lack of) can thus indirectly affect R&D efforts. More formally, we construct a moral hazard - cum - adverse selection model in which a pharmaceutical firm exerts an unobservable effort towards developing an innovative (high quality) drug (moral hazard) and then announces the (unobservable) quality outcome to an uninformed regulator and/or consumers (adverse selection). We compare the outcomes in regard to innovation effort and expected welfare under two regimes: (i) regulation, where products undergo a clinical trial designed to ascertain product quality at the point of market access; and (ii) laissez-faire with free entry, where the revelation of quality is left to the market process. Results show that whether or not innovation is greater in the presence of entry regulation crucially depends on the efficacy of the trial in identifying (poor) quality, on the probability that unknown qualities are revealed in the market process, and on the preference and cost structure. The welfare ranking of the two regimes depends on the differential effort incentive and on the net welfare gain from implementing full information instantaneously. For example, in settings of vertical monopoly, vertical differentiation and horizontal differentiation with no variable cost of quality, entry regulation tends to be the preferred regime if the effort incentive under pooling is relatively low and profits do not count too much towards welfare. A complementary numerical Analysis shows how the outcomes vary with the market and cost structure. (authors' abstract) |
| Keywords: | adverse selection; (entry) regulation; moral hazard; pharmaceutical industry; R&D incentives |
| Date: | 2016–02 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:4886&r=ino |
| By: | Emiko Inoue |
| Abstract: | Innovation is expected to become an essential element in overcoming climate change issue. To examine the factors that might induce such innovation, this study focuses on environmental disclosure and scrutinises how it influences innovation activity. Utilising firm-level panel datasets from EU corporations (fiscal years 2000-08) that were constructed based on the Carbon Disclosure Project data and the EU Industrial R&D Investment Scoreboard, I estimate dynamic panel models using the system GMM estimator. The potential endogeneity issue is addressed in the models. Innovation activity is measured by R&D investment. The results show that corporations that implement a specific environmental disclosure action, namely, disclosing Scope 3 GHGemissions, are more likely to invest in R&D. This study sugg ests that supply chain management is crucial for corporations to enhance their innovation activity. In addition,this study reveals that a policy that stimulates corporate incentives to disclose Scope 3 GHG emissions may be a key to enhancing innovation activity. Since communication between corporations and other stakeholders, which may be enhanced by environmental disclosure , is a significant factor in encouraging corporate innovation activity, it is important to construct a system wherein environmental disclosure is evaluated objectively and corporations with strong environmental performance are adequately rewarded. |
| Keywords: | innovation;Environmental disc losure;Voluntary action;Endog eneity;Climate change |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:kue:epaper:e-16-012&r=ino |
| By: | Sadowski, Bert; Nomaler, Onder; Whalley, Jason |
| Abstract: | The Internet-of-things (IoT) has been heralded as the third industrial revolution combining disruptive technological change and a radical restructuring of the traditional ICT ecosystem. Technological diversification allows companies in the information and communication technology (ICT) industries to participate in the IoT by transplanting their existing know-how to new application domains. In using the ICT ecosystem perspective, this paper examines the diversification of 1323 ICT companies into IoT by investigating 86,159 main patents in the IoT area using the USPTO database. The paper examines the extent to which the existing knowledge base allows ICT firms to diversify into the new technological area, that is, IOT. It utilizes an entropy measure to characterize the extent to which ICT firms diversify into IoT. We propose that a firm's knowledge position in a new emerging technological has an important strategic value in terms of competitiveness. It characterizes a few new application domains in neighboring industries like health or transport. The paper concludes that due to technological pervasiveness Iot provides for new innovative activities and technological opportunities for ICT companies to grow in emerging sectors like wearables, industrial automation, smart energy and smart mobility. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse16:148701&r=ino |
| By: | Hui He; Nan Li; Jing Fang |
| Abstract: | This paper examines whether the rapid growing firm patenting activity in China is associated with real economic outcome by building a unique dataset uniting detailed firm balance sheet information with firm patent data for the period of 1998-2007. We find strong evidence that within-firm increases in patent stock are associated with increases in firm size, exports, and more interestingly, total factor productivity and new product revenue share. Event studies using first-time patentees as the treatment group and non-patenting firms selected based on Propensity-Score Matching method as the control group also demonstrate similar effects following initial patent application. We also find that although state-owned enterprises (SOEs) on average have lower level of productivity and are less innovative compared to their non-state-owned peers, increases in patent stock tend to be associated with higher productivity growth among SOEs, especially for patents with lower innovative content. The latter could reflect the preferential government policies enjoyed by SOEs. |
| Keywords: | Technological innovation;China;Business enterprises;Public corporations;Innovation, Growth, Patent, R&D, Productivity, SOE Reforms, China |
| Date: | 2016–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:16/249&r=ino |
| By: | Enrico Böhme (University of Marburg); Jonas Severin Frank (University of Marburg); Wolfgang Kerber (University of Marburg) |
| Abstract: | Since the patent system relies on private litigation for challenging weak patents, and patent settlements might influence the incentives for challenging patents, the question arises whether the antitrust assessment of patent settlements should also consider their impact on the incentives to challenge potentially invalid patents. Patent settlements in the pharmaceutical industry between originator and generic firms have been scrutinized critically by competition authorities for delaying the market entry of generics and therefore harming consumers. In this paper we present a model that analyzes the tradeoff between limiting the delay of generic entry through patent settlements and giving generic firms more incentives for challenging weak patents of the originator firms. We show that allowing patent settlements with a later market entry of generics than the expected market entry under patent litigation can increase consumer welfare under certain conditions. We introduce a policy parameter for determining the optimal additional period for collusion that would maximize consumer welfare and show that the size of this policy parameter depends on the size of the challenging costs, the intensity of competition, and the duration between the generics’ market entry decisions. |
| Keywords: | patent settlements, collusion, patent challenges |
| JEL: | L10 L40 O34 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201702&r=ino |
| By: | Albert, Jose Ramon G.; Yasay, Donald B.; Gaspar, Raymond E. |
| Abstract: | Research and development (R&D) activities have long been recognized as one of the critical components to improve a country's productivity and competitiveness as well as people's well-being. Notable advancements in agriculture (to develop new variety of crops), health (to improve nutrition and combat various diseases), industry (to develop new products and services), as well as in climate change adaptation and mitigation are products of R&D. The Department of Science and Technology (DOST), chiefly through sectoral councils and R&D performers, has been successfully undertaking or supporting a considerable share of R&D activities in the country while noting limited resources available. However, there is a need to improve the thrust for R&D, which may require the conduct of an R&D summit to finalize the scope of the government's R&D medium- and long-term agenda. The DOST also needs to reexamine the distribution of grant-in-aid funds to R&D institutes and identify breakdowns of R&D funding for basic research, applied research, and development. The DOST may need to pilot test scientific methods, such as Analytic Hierarchy Processes, for selection of R&D proposals for funding by its sectoral councils. |
| Keywords: | Philippines, impact evaluation, research and development (R&D), Department of Science and Technology (DOST), R&D institutes, grant-in-aid (GIA) fund, R&D activities |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2016-04&r=ino |
| By: | Akcigit, Ufuk; Grigsby, John; Nicholas, Tom |
| Abstract: | We examine the golden age of US innovation by undertaking a major data collection exercise linking US patents to state and county-level aggregates and matching inventors to Federal Censuses between 1880 and 1940. We identify a causal relationship between patented inventions and long run economic growth and outline a basic framework for analyzing key macro and micro-level determinants. We explore drivers of regional performance including population density, financial development, geographic connectedness and social structure. We then profile the characteristics of inventors and their life cycle, measure the returns to technological development, and document the relationship between innovation, inequality and social mobility. Our new data help to address important questions related to innovation and long-run growth dynamics. |
| Keywords: | census; demographics; Earnings; growth; innovation; inventors; migration; patents |
| JEL: | N11 N12 O31 O40 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11755&r=ino |
| By: | Serafica, Ramonette B. |
| Abstract: | This paper examines the evidence on service innovation using the 2012 Census of Philippine Business and Industry and the 2009 Pilot Survey of Innovation Activities. It reveals the wide variation in R&D intensities and differences in innovation behavior between the manufacturing and services sectors, for example, with respect to information sources and innovation activities. Many similarities were also detected in terms of service product innovation, the popularity of organizational innovation, and the preference for training activities, among others. Looking at structural factors, the probit regression analyses indicate that the size of the firm is a good determinant for all types of innovation. Ownership and age were also significant for certain innovation outputs, which could help inform policies on foreign direct investment and entrepreneurship. The results of this paper reveal the importance of service innovation not only for the services sector but also for the manufacturing sector consistent with servicification. In general, different types of innovation are undertaken by industries for various reasons, and the technological and nontechnological forms of innovation complement each other. If the government aims to promote economy-wide upgrading, support for innovation should not favor only one type of innovation output or activity. Further research on innovation behavior to cover more industries will be useful in developing a comprehensive and more nuanced approach to innovation policy. |
| Keywords: | Philippines, services, research and development (R&D), innovation, manufacturing, servicification |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2016-20&r=ino |
| By: | Shadiyeva Dildora |
| Abstract: | Innovations are considered as factor of economic growth not only of individual enterprises, but also a national economy as a whole. That is why countries have a great focus on financial supporting and promoting innovations. Insufficient support of innovations causes low return on scientific research and less economic effect from Research and Development (R&D). Therefore funding is indispensable condition to create new products by innovative ideas. The present study focuses on studying the features of innovative activity funding in the current global scenario, identifying the world leaders and trends in innovative activity funding. Uzbekistan’s experience in this area was selected for the empirical study. By analyzing the main source of funds and the factors which promote development of innovative activity was identified impact of some factors on change in scientific and technical output. Key words: innovations, innovative activity, R&D, sources of funding, Gross Domestic Expenditure on R&D. Policy |
| Date: | 2016–09 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2016-09-12&r=ino |
| By: | Idota, Hiroki; Ueki, Yasushi; Shigeno, Hidenori; Bunno, Teruyuki; Tsuji, Masatsugu |
| Abstract: | To achieve successful innovation, firms in ASEAN countries have to elevate their innovation capability including human resources, business structure of firms, technologies including ICT use by collaborating with outside organizations such as MNCs (Multi-national companies) and university/public research institutes. These outside organizations are termed as external linkages. Based on authors'survey data of five ASEAN economies such as Vietnam, Indonesia, the Philippines, Thailand, and Laos from 2014 to 2015, this paper examines how internal innovation capability such as human resource management (HRM), organizational learning and ICT use enhance product innovation. These factors are used as latent variables in analysis and consist of the following variables:(i) HRM such as recruitment, job training and rewards and 5S; (ii) organizational learning including QC and cross-functional teams;(iii) ICT use such as B2B, B2C, EDI, SCM, ERP, CAD/CAM, groupware, SNS; and (iv) external linkages. This study employs SEM (Structural equation modeling) to analyze the causal relationships not only among the above four latent variables but also between these and innovation.The six hypotheses were postulated. Estimation results demonstrate that organization learning and ICT use enhance product innovation, and particularly, human resource management enhances organization learning. |
| Keywords: | ICT use,human resource management,external linkages,cross-functional teams,QC,SEM |
| JEL: | O32 O31 O19 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:itse16:148675&r=ino |
| By: | Daniel Garcia-Macia; Chang-Tai Hsieh; Peter J. Klenow |
| Abstract: | Entrants and incumbents can create new products and displace the products of competitors. Incumbents can also improve their existing products. How much of aggregate productivity growth occurs through each of these channels? Using data from the U.S. Longitudinal Business Database on all non-farm private businesses from 1976–1986 and 2003–2013, we arrive at three main conclusions: First, most growth appears to come from incumbents. We infer this from the modest employment share of entering firms (defined as those less than 5 years old). Second, most growth seems to occur through improvements of existing varieties rather than creation of brand new varieties. Third, own-product improvements by incumbents appear to be more important than creative destruction. We infer this because the distribution of job creation and destruction has thinner tails than implied by a model with a dominant role for creative destruction. |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:17-04&r=ino |
| By: | Rocha, Vera; van Praag, Mirjam |
| 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; female leadership; gender gaps; role models |
| JEL: | J16 J24 L26 M12 M13 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11715&r=ino |
| By: | Nathan Goldschlag; Stefano Bianchini; Julia Lane; Joseba Sanmartín Sola; Bruce Weinberg |
| Abstract: | Public support of research typically relies on the notion that universities are engines of economic development and that university research is a primary driver of high wage localized economic activity. However, the evidence supporting that notion is based on aggregate descriptive data, rather than detailed links at the level of individual transactions. Here we use new micro-data from three countries—France, Spain and the United States—to examine one mechanism whereby such economic activity is generated, namely purchases from regional businesses. We show that grant funds are more likely to be expended at businesses physically closer to universities than at those farther away. In addition, if a vendor has been a supplier to a grant once, that vendor is subsequently more likely to be a vendor on the same or related grants. Firms behave in a way that is consistent with the notion that propinquity is good for business; if a firm supplies a research grant at a university in a given year, it is more likely to open an establishment near that university in subsequent years than other firms. |
| JEL: | O31 R1 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23018&r=ino |
| By: | Eckel, Carsten; Unger, Florian |
| Abstract: | This paper analyzes the effects of credit frictions on within-firm adjustments and selection into exporting when both cost-based productivity and product quality matter for the success of a producer. Our model shows that whether FOB prices are positively or negatively correlated with credit frictions and variable trade costs depends on the sectoral R&D intensity. If the latter is high, prices decrease in credit and trade costs, and vice versa. Furthermore, we show that the aggregate effects of financial shocks also depend on the R&D intensity. Stronger credit frictions lead to firm exit, inefficiently high innovation activity among existing suppliers, and welfare losses that are larger in sectors with low R&D intensity. To analyze the effects of credit frictions, we allow for both cost-based and quality-based sorting in a general equilibrium model of international trade. Producers differ in capabilities to conduct process and quality innovations, and external finance is needed for investments. |
| Keywords: | credit constraints; external finance; innovation; International Trade; moral hazard; product prices; Quality |
| JEL: | F12 G32 L11 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:11727&r=ino |
| By: | Wanzenböck, Iris; Piribauer, Philipp |
| Abstract: | In this paper we estimate space-time impacts of the embeddedness in R&D networks on regional knowledge production by means of a dynamic spatial panel data model with non-linear effects for a set of 229 European NUTS-2 regions in the period 1999-2009. Embeddedness refers to the positioning in networks where nodes represent regions that are linked by joint R&D endeavours in European Framework Programmes. We observe positive immediate impacts on regional knowledge production arising from increased embeddedness in EU funded R&D networks, in particular for regions with lower own knowledge endowments. However, long-term impacts of R&D network embeddedness are comparatively small.(authors' abstract) |
| Keywords: | R&D networks; European Framework Programme; regional knowledge production; dynamic spatial panel data model; space-time impacts |
| Date: | 2015–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:4652&r=ino |
| By: | Laura Alfaro (Harvard Business School, Business, Government and the International Economy Unit); Maggie X. Chen (George Washington University) |
| Abstract: | Falling transportation costs and rapid technological progress in recent decades have precipitated an explosion of cross-border flows in goods, services, investments, and ideas led by multinational firms. Extensive research has sought to understand the geographic patterns of foreign direct investment (FDI). This chapter reviews existing theories and evidence specifically addressing questions including: How is FDI distributed across space? Why does the law of gravity apply? How do the costs of transporting goods, tasks, and technologies influence firms' decisions to separate tasks geographically and locate relative to one another? We discuss a variety of theoretical mechanisms through which transport cost and other geographic friction influence FDI and present the key empirical studies and findings. |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:17-061&r=ino |
| By: | Lionel Fontagné; Ann Harrison |
| Abstract: | The shift towards a “factory-free” economy has drawn the attention of policy makers in North America and Europe. Some politicians have articulated alarming views, initiating mercantilist or ‘beggar-thy-neighbour’ cost-competitiveness policies. Yet companies that concentrate research and design innovations at home but no longer have any factories there may be the norm in the future. This paper summarizes the key themes emerging from a conference on de-industrialization. De-industrialization is a process that happens over time in all countries, even China. The distinction between manufacturing and services is likely to become increasingly blurry. More manufacturing firms are engaging in services activities, and more wholesale firms are engaging in manufacturing. One optimistic perspective suggests that industrial country firms may be able to exploit the high-value added and skill-intensive activities associated with design and innovation, as well as distribution, which are all components of the global value chain for manufacturing. Although this ongoing transformation of the industrial economies may be consistent with evolving comparative advantage, it has significant short-run costs and requires far-sighted investments. These include the costs to workers who are caught in the shift from an industrial to a service economy, and the need to invest in new infrastructure and education to prepare coming generations for their changing roles. |
| JEL: | F16 F23 O14 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23016&r=ino |
| By: | Friese, Maria; Heimeshoff, Ulrich; Klein, Gordon J. |
| Abstract: | This paper provides evidence that ownership and organization matters for the efficiency of provision of public services. In particular, we find that pure private ownership is more efficient than pure public ownership, followed by mixed ownership. The delegation of management in different legal forms also has an impact, highlighting the importance of the design of the government-operator relation. We apply a structural approach of production function estimation ensuring precise determination of total factor productivity for a panel of German refuse collection firms in the time period between 2000-2012. We project total factor productivity estimates (TFP) on ownership and organization. Our results are in line with the trade-offs implied by the property rights literature and provide important policy implications regarding the organization of public service provision. |
| Keywords: | incentive regulation,productive efficiency,refuse collection,public utility |
| JEL: | L00 L33 L50 L97 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wwuifg:173&r=ino |
| By: | Christopher Esposito; David Rigby |
| Abstract: | Explanations for why some cities outperform others frequently rest on the assumed benefits of local and global interaction. Within the Òbuzz and pipelinesÓ literature, the costs and returns to interaction have rarely been examined in formal settings. In this paper we extend research on knowledge sharing by modeling local and global interactions between firms distributed across city-regions. Our simulation model develops an evolutionary framework where firms explore and exploit knowledge sets that are accumulated over time by recombining technologies held by local and non-local firms. Our results make two contributions to the existing literature. First, we show why too much local interaction can induce technological lock-in and restrict citiesÕ innovative growth. Second, we illustrate that non-local interaction entails opportunity costs that can outweigh its benefits. Together, the results unearth the conditions under which local and non-local interactions strengthen the economies of cities and when they fail to do so. Length: |
| Keywords: | regional economic growth, innovation, networks, computer simulation |
| JEL: | R11 D83 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1701&r=ino |
| By: | Daniele Moschella; Federico Tamagni; Xiaodan Yu |
| Abstract: | This article investigates the characteristics of high-growth (HG) firms in Chinese manufacturing, and further explores the effects of firm characteristics on persistence of high-growth. We employ a multidimensional definition of HG firms that simultaneously accounts for growth of sales and employment. Exploiting a representative panel covering the period of the Chinaùs miracle, we find that HG firms outperform other firms, showing higher productivity, higher profitability, larger investment intensity, higher sales from product innovation, lower interest expenses and lower leverage. HG firms are also relatively young, larger in size, more often exporters and more concentrated in non-State-controlled companies. However, regression analysis suggests that none of the indicators of structural characteristics and performance considered above displays any statistical association with the ability to persistently replicate high-growth over time. The results speak against the long-run effectiveness of policies supporting the creation and backing of high-growth firms. |
| Keywords: | Entrepreneurship, Firm growth, High-growth firms, Persistent high-growth firms |
| Date: | 2017–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2017/03&r=ino |
| By: | Martin Shubik (Cowles Foundation, Yale University) |
| Abstract: | This essay is the third of three. The first is nontechnical and in part autobiograhpical describing the evolution of my approach to developing a microeconomic theory of money and.financial institutions. The second essay was devoted to a more formal sketch of a closed economic exchange system with no other externalities beyond money and markets. This essay builds on the existence of monetary exchange but also context, and active government with nonsymmetric information and many externaties indicate that the views of Keynes, Hayek and Schumpeter are all consistent with the next stages of complexity as the logic requires many different arrays of institutions to provide the necessary economic functions and adjust to the variety of socio-economic contexts. |
| Keywords: | Schumpeter, Keynes, aggregation, information, disequilibrium, minimal institutions, innovation, playable games |
| JEL: | C7 D50 E4 |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2067&r=ino |