nep-ino New Economics Papers
on Innovation
Issue of 2017‒04‒02
25 papers chosen by
Uwe Cantner
University of Jena

  1. Technology modelling and technology innovetion. How a technology model may be useful in studying the innovation process By Bonomi Angelo; Marchisio Mario Andrea
  2. PUBLIC R&D SUPPORT IN ITALY. EVIDENCE FROM A NEW FIRM-LEVEL PATENT DATA SET By Francesco Aiello; Giuseppe Albanese; Paolo Piselli
  3. : Innovation of renewable energy generation technologies at a regional level in China:A study based on patent data analysis By Nan Yu
  4. Ethnic Inventors: A Critical Survey of the Contribution of People of Middle Eastern Ethnic Backgrounds to the US Innovation System By Mahroum, Sami; Zahradnik, Georg; Dachs, Bernhard
  5. Is innovation destroying jobs? Firm-level evidence from the EU By Piva, Mariacristina; Vivarelli, Marco
  6. R&D cooperation within Italian technological districts: A microeconometric analysis By Otello Ardovino; Maria Rosaria Carillo; Luca Pennacchio
  7. Going Entrepreneurial? IPOs and New Firm Creation By Tania Babina; Paige P. Ouimet; Rebecca Zarutskie
  8. Product versus Process: Innovation Strategies of Multi-Product Firms By Flach, Lisandra; Irlacher, Michael
  9. The strong Porter hypothesis in an endogenous growth model with satisficing managers By Bianco, Dominique; Salies, Evens
  10. The importance of measuring household sector innovation By J.P.J. de Jong
  11. Prizes versus Contracts as Incentives for Innovation By Che, Yeon-Koo; Iossa, Elisabetta; Rey, Patrick
  12. Impact of agricultural technology adoption on market participation in the rural social network system By Mekonnen, Tigist
  13. How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy By Cozzi, Guido; Pataracchia, Beatrice; Ratto, Marco; Pfeiffer, Philipp
  14. The relation between typologies of executive and technological performances of nations By Coccia Mario
  15. Entrepreneurial Ecosystems By F.C. Stam; Ben Spigel
  16. Where Do Green Technologies Come From? Inventor Teams’ Recombinant Capabilities and the Creation of New Knowledge. By Orsatti, Gianluca; Pezzoni, Michele; Quatraro, Francesco
  17. Long-term projections of global food security with R&D-driven technological progress By Zuzana Smeets Kristkova; Michiel van Dijk; Hans van Meijl
  18. The Bell Curve of Intelligence, Economic Growth and Technological Achievement: How Robust is the Cross-Country Evidence? By Burhan, Nik Ahmad Sufian; Che Razak, Razli; Rosli, Muhamad Ridhwan; Selamat, Muhamad Rosli
  19. Combining Semi-Endogenous and Fully Endogenous Growth: a Generalization. By Cozzi, Guido
  20. Inclusive Innovation and Rapid Sociotechnical Transitions: The Case of Mobile Money in Kenya By Elsie Onsongo; Johan Schot
  21. The Workforce of Pioneer Plants By Ricardo Hausmann; Franke Neffke
  22. Novelty, Knowledge Spillovers and Innovation: Evidence from Nobel Laureates By Ham, John C.; Weinberg, Bruce A.
  23. Can Trade Unions Increase Social Welfare? An R&D Model with Cash-in-Advance Constraints By Neto, António; Furukawa, Yuichi; Ribeiro, Ana Paula
  24. The Effect of Hiring Top Workers on Productivity: What is the Role of Absorptive Capacity? By Lodefalk, Magnus; Tang, Aili
  25. Learning versus status quo bias and the role of social capital in technology adoption: The case of cocoa farmers in Côte d’Ivoire By Alain Desdoigts; Francesco Cordaro

  1. By: Bonomi Angelo (CNR-IRCrES, National Research Council of Italy, Research Institute on Sustainable Economic Growth, Via Real Collegio 30, Moncalieri (TO)); Marchisio Mario Andrea (Harbin Institute of Technology, Harbin, People’s Republic of China)
    Abstract: This work concerns an extension of a mathematical model of technology developed at the Santa Fe Institute in the late nineties. It is based on analogies existing between technological and biological evolution and not on economic principles. This extension has the purpose to make the model useful in the studies of the innovation process. The model considers technology activity, independently of possible economic purposes, and having its own properties, structure, processes as well as an evolution independently by economic factors but more similar to biologic evolution. Considered purpose of technology is reaching of a technical result and not necessarily an economic result. The model considers technology as a structured set of technological operations that may be represented by a graph or matrix. That opens a description of a technology in term of technological spaces and landscapes, as well as in term of spaces of technologies, in which it is possible to represent search of optimal and evolutive paths of technologies, changes in their efficiency and measure of their radical degree linked to their technological competitiveness. The model is presented in a descriptive way and its mathematical development is presented in annex. The main applications of the model concern the use of the defined radical degree of a technology linked to its technological competitiveness. In this way it is explained the existence of Red Queen Regimes, characterized by continuous technical but not economical developments, among firms producing the same product. Such regimes are disrupted only by the entering of a technology with a high radical degree. Changes in operational structure of technologies may suggest the existence of three types of technology innovations, the first concerning learning by doing and consisting in minor changes giving incremental innovations, the second and the third, both able to obtain radical innovations through R&D activity, but the second exploiting scientific results and the third based only on a combinatory process of pre-existing technologies. This last way of innovation may explain the innovative potential, existing for example in Italian industrial districts, without resorting to any scientific research.
    Keywords: Technology model, technology innovation, research & development, learning by doing
    JEL: C60 D20 D21 O30
    Date: 2016–10
  2. By: Francesco Aiello; Giuseppe Albanese; Paolo Piselli (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria)
    Abstract: This paper evaluates the impact of R&D public support on the innovation activities of a sample of Italian SMEs. Unlike most of the literature, the analysis focuses more deeply on the innovation output than on the innovation input. The innovation output is measured through patent data. By using a new data set obtained by combining information from EPO records and the Capitalia data set on Italian corporations, we find that publicly supported firms have similar patenting activity to other R&D performers, regardless of the type of policy tool used to foster innovation. However, as far as patenting is concerned, supported SMEs face higher R&D spending than others.
    Keywords: Patents, R&D policy support, SMEs
    JEL: O31 O38 L1 C21
    Date: 2017–03
  3. By: Nan Yu (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: This paper is a pioneer study which examines the innovation of renewable energy generation technologies based on residential patent applications in 30 regions of China between 2006 and 2015. Wind power, solar energy, geothermal energy, ocean energy, hydro power, and biomass & waste energy are the subject technologies for this analysis. Different indicators such as absolute numbers, growth rates and revealed technology advantages are used to measure the various green innovation dynamics in different regions. The results show that some regions with a higher number of patent applications or growth rates did not show stronger technological advantage (specialization) in such technologies. On the other hand, the region of Inner Mongolia shows a very strong specialization but with a much smaller number of patent applications.
    Keywords: renewable energy generation technologies, patent applications, innovation indicators, revealed technology advantage, Chinese regions
    JEL: O3 O31 O34 Q2 Q4 R11
    Date: 2016–12
  4. By: Mahroum, Sami; Zahradnik, Georg; Dachs, Bernhard
    Abstract: While the contributions of immigrants from Chinese, Indian and Latin American backgrounds to the US innovation system have been well documented, little exists on the contribution of people from the Middle East and North Africa (MENA) to the US innovation system. This paper provides a critical survey of the extent people from the MENA region contribute to the US innovation system. Matching 2,500 MENA specific first names with patent documents from the World International Property Organization (WIPO), we provide evidence of the role this community plays in the US innovation system. We find that the share of inventors in total inventive activity with a MENA background has increased considerably in the last 20 years. They concentrate in California and tend to specialize in computers, communication and software, as well as in medical and veterinary sciences. They are also active in technology areas that are core competencies for their employers.
    Keywords: immigration; innovation; Middle East; Arab; patents
    JEL: F22 J6 J61 O30 O32
    Date: 2017–03
  5. By: Piva, Mariacristina (Università Cattolica del Sacro Cuore, Milano); Vivarelli, Marco (UNU-MERIT, Università Cattolica del Sacro Cuore, Milano, and IZA, Bonn)
    Abstract: Using a unique firm-level database comprising the top European R&D investors over the period 2002-2013 and running LSDVC estimates, this study finds a significant labour-friendly impact of R&D expenditures. However, this positive employment effect appears limited in magnitude and entirely due to the medium-and high-tech sectors, while no effect can be detected in the low-tech industries. From a policy point of view, this outcome is supporting the EU2020 strategy, but - taking into account that most European economies are specialised in low-tech activities - is also worrying in terms of future perspectives of the European labour market.
    Keywords: Innovation, R&D, innovation, employment, firm-level analysis, EU
    JEL: E24 O14 O15 O33 O52
    Date: 2017–03–10
  6. By: Otello Ardovino; Maria Rosaria Carillo; Luca Pennacchio (-)
    Abstract: The purpose of this paper is to investigate the determinants of inter-firm R&D collaborations in a particular type of innovation network, the technological districts created in Italy under a specific public policy to foster innovation and economic development at the local level. Using an original database containing information on the collaborative research projects activated by the districts, we find that the structural characteristics of the individual districts play an important role upon firms’ collaboration choices: the probability of cooperating is higher in districts in which universities have a major weight and in districts with governance more oriented towards market logic. As regards the governance, the estimates also reveal a strong moderating effect on other important determinants of R&D cooperation, such as geographical proximity and absorptive capacity.
    Keywords: : R&D cooperation, innovation networks, firm behaviour, dyadic regession model
    JEL: L14 O31 O32
    Date: 2016–09–05
  7. By: Tania Babina; Paige P. Ouimet; Rebecca Zarutskie
    Abstract: Using matched employee-employer US Census data, we examine the effect of a successful initial public offering (IPO) on employee departures to startups. Accounting for the endogeneity of a firm’s choice to go public, we find strong evidence that going public induces employees to leave for start-ups. Moreover, we document that the increase in turnover following an IPO is driven by employees departing to start-ups; we find no change in the rate of employee departures for established firms. We present evidence that, following an IPO, many employees who received stock grants experience a positive shock to their wealth which allows them to better tolerate the risks associated with joining a startup or to obtain funding. Our results suggest that the recent declines in IPO activity and new firm creation in the US may be causally linked. The recent decline in IPOs means fewer workers may move to startups, decreasing overall new firm creation in the economy.
    Keywords: Entrepreneurship ; Initial Public Offerings ; New Firms ; Wealth
    Date: 2017–02
  8. By: Flach, Lisandra; Irlacher, Michael
    Abstract: We investigate the effects of better access to foreign markets on innovation strategies of multi-product firms in industries with different scope for product differentiation. Industry-specific demand and cost linkages induce a distinction between the returns to innovation. In differentiated industries, cannibalization is lower and firms invest more in product innovation. In homogeneous industries, firms internalize intra-firm spillovers and invest more in process innovation. Using firm-level data and large exchange rate devaluations, we show that better access to foreign markets increases the incentive to innovate. However, we exploit differential effects across industries and show that the innovation strategies depend on the scope of differentiation.
    Keywords: Cannibalization Effect; innovation; Market Size Effect.; multi-product firms; product differentiation; Spillovers
    JEL: F12 F14 L25
    Date: 2017–03
  9. By: Bianco, Dominique; Salies, Evens
    Abstract: Few endogenous growth models have focused attention on the strong Porter hypothesis, that stricter environmental policies induce innovations, the benefits of which exceed the costs. A key assumption underlying this hypothesis is that policy strictness pushes firms to overcome some obstacles to profit maximization. This paper incorporates pollution and taxation in the Aghion and Griffith's (2005) model of growth with satisficing managers and non-drastic innovation [in Competition and growth: Reconciling Theory and Evidence, The MIT Press, Ch. 2, pp. 36-38]. Our theoretical results predict the strong Porter hypothesis. Furthermore, they suggest that environmental policy and the level of potential competition in the intermediate inputs sector are complementary. Assuming drastic innovation in the model, however, we predict the weak Porter hypothesis. Other departures from the model's initial assumptions are considered.
    Keywords: Strong Porter hypothesis; Environmental policy; Endogenous growth
    JEL: L16 O31 O44
    Date: 2016–01–01
  10. By: J.P.J. de Jong
    Abstract: Empirical evidence shows that consumers can innovate as well as producers They spend considerable time and money and collaboratively develop substantial projects, which enhance social welfare. Household sector innovation is also important in developing countries. We summarize recent insights on how household sector innovation can be measured. In social surveys we can directly measure consumer innovation. Firm surveys can be modified to better capture if and how commercial organizations absorb household sector innovations.
    Keywords: Household sector, User innovation, Distribured Innovation, measurement, Duffusion
    Date: 2016–03
  11. By: Che, Yeon-Koo; Iossa, Elisabetta; Rey, Patrick
    Abstract: Procuring an innovation involves motivating a research effort to generate a new idea and then implementing that idea effciently. If research efforts are unverifiable and implementation costs are private information, a trade-ooff arises between the two objectives. The optimal mechanism resolves the tradeoff via two instruments: a monetary prize and a contract to implement the project. The optimal mechanism favors the innovator in contract allocation when the value of innovation is above a certain threshold, and handicaps the innovator in contract allocation when the value of innovation is below that threshold. A monetary prize is employed as an additional incentive but only when the value of innovation is suffciently high.
    Keywords: Contract rights; Inducement Prizes; innovation; Procurement and R&D.
    JEL: D44 D82 H57 O31 O38 O39
    Date: 2017–03
  12. By: Mekonnen, Tigist (UNU-MERIT, and Maastricht University)
    Abstract: This paper provides empirical evidence regarding the impact of agricultural technologies on smallholders’ output market participation. The analysis is based on Farmer Innovation Fund impact evaluation survey collected by the World Bank in 2010-2012 covering 2,675 households in Ethiopia. Endogenous treatment effect and sample selection models are employed to account for the self-selection bias in technology adoption and market participation. Regressions based on matching techniques are employed for robustness check. The estimation results show that the use of improved agricultural inputs significantly affects farm households marketable surplus production. We found evidence that application of high-yielding varieties increases surplus crop production by 7.39 percent per year, whereas chemical fertilizer use increases surplus by 2.32 percent. When farmers apply the two inputs jointly, marketed surplus increases by 6 percent which establish the complementarity of the two technologies. Marketable surplus crop production and market participation of farmers are determined by access to modern inputs, crop price, farm size, availability of labor, and infrastructure. Access to credit and training fosters technology adoption. Therefore, agriculture and rural development policy need to focus on supporting agricultural technology adoption.
    Keywords: Surplus production, technologies, social network, Ethiopia, agricultural innovation,endogenous treatment effect model
    JEL: D04 O12 O13 O33 Q13
    Date: 2017–02–06
  13. By: Cozzi, Guido; Pataracchia, Beatrice; Ratto, Marco; Pfeiffer, Philipp
    Abstract: The macroeconomic experience of the last decade stressed the importance of jointly studying the growth and business cycle fluctuations behavior of the economy. To analyze this issue, we embed a model of Schumpeterian growth into an estimated medium-scale DSGE model. Results from a Bayesian estimation suggest that Investment risk premia are a key driver of the slump following the Great Recession. Endogenous innovation dynamics amplifies financial crises and helps explain the slow recovery. Moreover, financial conditions also account for a substantial share of R&D Investment dynamics.
    Keywords: Endogenous growth; New Keynesian Economics; R&D; Schumpeterian Growth; Bayesian Estimation.
    JEL: E32 O3 O33 O42
    Date: 2017–02–03
  14. By: Coccia Mario (CNR-IRCRES, National Research Council, Research Institute on Sustainable Economic Growth, Turin, Italy ARIZONA STATE UNIVERSITY, Center for Social Dynamics & Complexity, Arizona)
    Abstract: The general determinants of socioeconomic and technological performance are of profound interest in social and political sciences to understand the historical developmental paths of nations. The vast literature has suggested several approaches to explain the differences of technological performances among nations, such as the varieties of capitalism’s theory of innovation argues that a dissimilar behaviour of political institutions is a principal driver of differences in national innovative behaviour. However, in the varieties of capitalism and other frameworks, the notion of state power and the relation between typologies of executive, technological and socioeconomic performances of countries are generally absent. The present study confronts these problem and endeavours of analyzing the nexus (relation) between leadership-oriented executives, technological and socioeconomic performances of nations. Results show that high levels of technological performance of nations seem to be associated to executive with parliamentary monarchy and monarchy (leadership-oriented government), whereas nations with mixed executive tend to have lower performances. A possible reason of these results is that, in general, some typologies of executive leadership-oriented (e.g., Monarchy) support the political stability of countries with subsequent fruitful socioeconomic developmental paths over the long run. In short, the study here shows the vital role of the structure of government in national systems of innovation and in particular how leadershiporiented executives can support socioeconomic performances of countries. Overall, then, the structure of executives might be one of contributing factors to explain dissimilar patterns of technological innovation and economic growth of nations over time.
    Keywords: Varieties of Capitalism; Technological Performance; Leadership; Executive; Government; Technology; Socioeconomic Performance; Political Stability.
    JEL: O11 P16 P51
    Date: 2017–02
  15. By: F.C. Stam; Ben Spigel
    Abstract: This paper reviews and discusses the emergent entrepreneurial ecosystem approach. Entrepreneurial ecosystems are defined as a set of interdependent actors and factors coordinated in such a way that they enable productive entrepreneurship within a particular territory. The purpose of this paper is to critically investigate the emerging literature on entrepreneurial ecosystems. Current work on ecosystems is underdeveloped, focusing more on superficial generalizations based on successful case studies such as Silicon Valley or Boulder, Colorado rather than on rigorous social science research. The paper provides a review of the multiple definitions of ecosystems found within the literature, and discusses the relationships between ecosystems and allied concepts such as industrial districts, clusters, and innovation systems. The paper concludes by discussing an integrative model that connects the functional attributes of entrepreneurial ecosystems (including framework conditions and systemic conditions) with entrepreneurial outputs and welfare outcomes. The framework conditions consist of the social (informal and formal institutions) and physical conditions enabling or constraining human interaction. Systemic conditions are the heart of the ecosystem and include networks of entrepreneurs, leadership, finance, talent, knowledge, and support services.
    Date: 2016–11
  16. By: Orsatti, Gianluca; Pezzoni, Michele; Quatraro, Francesco (University of Turin)
    Abstract: By exploiting the EPO universe of patent data, we investigate how inventors’ teams recombinant capabilities drive the creation of Green Technologies (GTs).Results suggest the importance of recombinant creation patterns in fostering the generation of GTs. We also find diverse moderating effects of technological green experience and environmental regulation stringency on exploration behaviors. Precisely, the positive effect of team’s explorative behaviors is magnified for teams lacking technological green experience, even more in regimes of weak environmental regulation. Conversely, the effect of explorative behaviors is reduced for green experienced teams, especially in regimes of weak environmental regulation. Finally, we find positive effects of both team’s previous technological green experience and environmental regulation stringency.
    Date: 2017–03
  17. By: Zuzana Smeets Kristkova; Michiel van Dijk; Hans van Meijl
    Abstract: Food security is one of the largest challenges facing mankind in the next half century (as acknowledged for instance by UNDP, 2012 and UNEP, 2012). The projections of population growth warn that by 2050 the agricultural sector will have to feed 9 billion people, which requires doubling the current levels of food production. Due to the constrained expansion of agricultural land, technical progress is required that will drive agricultural productivity and therefore make an important contribution to future improvements of global food security. Long-term projections of global food security should take into account that food security is a multidimensional concept, which includes dimensions of availability, accessibility, utilization, and stability (FAO, 2000). The availability dimension is associated with the physical supply of food which increasingly relies on technical change in agriculture, triggered by investments to research and development (Avila and Evenson, 2010). The most contemporary global state-of-the art CGE models however do not accurately reflect this linkage (i.e. models included in the Agmip Global Economic Comparison Project). The accessibility dimension is related to households’ income and the evolution and variability of food prices (Sen, 1981). However, the experiment performed by Robison et al. (2013) showed that food prices projections may be highly diverging under various technical change assumptions that specify the type of factor-bias and the inter-sectoral spillovers. The paper aims at providing projections of food security in a GTAP-based CGE model MAGNET (Modular Applied General Equilibrium Tool), developed at LEI. Main contributions of this paper are threefold: i) it provides long-term projections of food security with R&D driven endogenous technical change and thus it partially opens the “black-box” in modelling technical change, ii) it builds on empirical estimates of endogenous technical change and thus it increases the reliability of food price projections, iii) it encompasses various dimensions of food security in a general equilibrium framework, which enables to capture important inter-sectoral linkages in factor markets and the effects of R&D spillovers across all regions of the world. The modelling approach is based on the incorporation of a specific R&D module into MAGNET, in which two types of R&D activities are distinguished - public and private agricultural R&D. Public agricultural R&D is considered as a land-augmenting research activity, represented mainly by investments into new crop varieties, which is fully demanded by government. Certain lag is considered before R&D is fully transmitted into higher land productivity. Moreover, public R&D spillovers are included in the model based on the regional distance from the global technology frontier. On the other hand, private R&D investments are considered as by-product activities of agricultural input sectors (agriculture, chemical and transport industry) assuming that the R&D investment incentives go hand in hand with the industrial performance. Private R&D investments stimulate land and labor-augmenting technical change via knowledge which acts as a new production factor in the economy. The projections of Food security are obtained for the period 2007 – 2050. There are four baseline scenarios that have been constructed in a joint stakeholder/modelling process and that reflect the future of global economy taking into account dimensions of inequality and sustainability. In this paper, the projections of food security are analysed for these four baseline scenarios assuming that governmental expenditures on R&D follow regional GDP growth. Besides standard indicators such as agricultural production and prices, specific food security indicators including nutritional status of the households are reported.
    Keywords: Food security projections are calculated for 35 aggregated regions of the world. However, specific “food-secure” relevant countries are included individually, namely: Indonesia, India, Ghana, Ethiopia and Uganda. , General equilibrium modeling, Agricultural issues
    Date: 2015–07–01
  18. By: Burhan, Nik Ahmad Sufian; Che Razak, Razli; Rosli, Muhamad Ridhwan; Selamat, Muhamad Rosli
    Abstract: Intelligence quotient (IQ) scores are normally distributed within a nation’s population. In a cross-country regression, Burhan et al. (2014, Intelligence, 46, 1–8) had statistically proven that intellectual class represented by the 95th percentile IQ had contributed most to economic growth. Those with average ability (50th percentile IQ) contributed second most, followed by the non-intellectual class (5th percentile IQ). Also, the researchers found that only the intellectual class was significant for technological progress. This paper reanalyzed their dataset using robust regressions. After eliminating some outliers, the IQs of the intellectual class and average ability group were found to have equal impacts on economic growth, and the impacts were larger than that of non-intellectual’s. Furthermore, the IQ of the average ability group was significant on technological achievement although not as strong as the intellectual class. Nevertheless, the number of professional researchers employed in research and development (R&D) sector did not give the same paramount effects as the impact of the average ability IQ in generating technological progress. Based on the conclusions drawn, it will be better for R&D sectors to employ professionals who possess not only high academic qualifications, but also exceptional levels of cognitive skills to develop new innovations.
    Keywords: economic growth; technological achievement; intelligence; social class; robust regression
    JEL: I25 J24 O3 O47 Z13
    Date: 2017–01
  19. By: Cozzi, Guido
    Abstract: This paper shows that combining the semi-endogenous and the fully endogenous growth mechanisms with a general CES aggregator, either growth process can prevail in the balanced growth path depending on their degree of complementarity/substitutability. Policy-induced long-run economic switches to the fully endogenous steady state as the R&D employment ratio surpasses a positive threshold are possible if the two growth engines are gross substitutes.
    Keywords: Strong scale effect; Semi-endogenous growth; Fully endogenous growth.
    JEL: O3 O4
    Date: 2017–03
  20. By: Elsie Onsongo (Strathmore University); Johan Schot (University of Sussex - Science and Technology Policy Research Unit (SPRU))
    Abstract: Mobile money innovation is at the centre of a sociotechnical transformation in the financial services sector in Kenya that saw changes in the regulatory framework, in market shares, user practices and social networks across multiple regimes. While sociotechnical transitions often take about 50 years, the mobile money revolution in Kenya has taken only 15 years, and has resulted in remarkable levels of financial inclusion of marginalised people. In this paper we combine the multi-level perspective (MLP) from the sustainability transitions literature and the Ladder of Inclusivity (LII) from the inclusive innovation literature to explain this rapid transformation. Applying both frameworks to the case enables us to elucidate potential areas for cross-fertilisation between MLP and LII, thus responding to calls for the inclusion of a social dimension in the transitions perspective, while explaining how processes of change envisioned (but weakly defined) in LII can be explored. Based on our findings, we hypothesise that a rapid socio-technical system transition takes 1) strong landscape pressures, an opening up of regime which makes regime actors willing to act and strong niche development all oriented towards the same goal, and 2) regime actors motivated by the normative goal to take risks and respond favourably to the mix of developments at all three levels.
    Keywords: Sustainability transitions, multilevel perspective, inclusive innovation, ladder of inclusivity, mobile money, financial services
    Date: 2017–03
  21. By: Ricardo Hausmann (Center for International Development at Harvard University); Franke Neffke (Center for International Development at Harvard University)
    Abstract: Is labor mobility important in technological diffusion? We address this question by asking how plants assemble their workforce if they are industry pioneers in a location. By definition, these plants cannot hire local workers with industry experience. Using German social-security data, we find that such plants recruit workers from related industries from more distant regions and local workers from less-related industries. We also show that pioneers leverage a low-cost advantage in unskilled labor to compete with plants that are located in areas where the industry is more prevalent. Finally, whereas research on German reunification has often focused on the effects of east-west migration, we show that the opposite migration facilitated the industrial diversification of eastern Germany by giving access to experienced workers from western Germany.
    Date: 2016–01
  22. By: Ham, John C.; Weinberg, Bruce A.
    Abstract: Using a new identification strategy and unique, rich data on Nobel laureates, we show that being in new or multiple locations, as measures of exposure to novel combinations of ideas, and the number of other local important innovators, all increase the probability that eventual Nobel laureates begin their Nobel prize winning work. Strikingly, and consistent with our identifying assumptions, we find that none of these measures increase the probability of doing Nobel prize winning work. Our results strongly suggest that spillovers affect the generation of ideas, and help us understand the weak spillover effects previously estimated in the economics literature.
    Keywords: Knowledge spillovers,Innovation,Nobel Prize,Duration models
    Date: 2017
  23. By: Neto, António; Furukawa, Yuichi; Ribeiro, Ana Paula
    Abstract: Economic growth crucially depends on the level of R&D investment, as well as on the existing labour market institutions (LMI); the latter might shape the amount of profit obtained by each firm and its incentives to continuously innovate. This paper proposes a novel analysis combining a Schumpeterian growth model with cash-in-advance (CIA) constraints on R&D to study the impact of trade unions on economic growth and social welfare. Two main results arise: one the one hand, economic growth is always decreasing in trade union’s markup and interest rate. However, in terms of social welfare, although Friedman rule appears to be optimal across all the considered scenarios, free labour market can be suboptimal below a specific threshold level of economic growth, depending on whether there is over or underinvestment in R&D. Hence, by demanding a wage above the perfect competition equilibrium, trade unions can have a positive impact on welfare through a reallocation of labour among sectors. This relationship seems to be stronger for countries with lower labour share and higher rents in the intermediate sector. This latter case highlights the redistributive effect of trade unions, contributing for a decrease in inequality between monopolists and workers. Therefore, for the case of the Eurozone, a “common” labour market setting might be more “inefficient” than a common monetary policy.
    Keywords: Employment, trade unions, economic growth, R&D
    JEL: E24 J51 O40 O42
    Date: 2017–03
  24. By: Lodefalk, Magnus (Örebro University School of Business); Tang, Aili (Örebro University School of Business)
    Abstract: We examine heterogeneous productivity effects of hiring top workers on small and medium-sized enterprises, using longitudinal employer-employee data. We find the productivity effect to be stronger for firms with higher absorptive capacity in terms of having a well-educated workforce, being in a knowledge-intensive industry or performing R&D. Technological laggards within an industry benefit more strongly from hiring top workers if their workforce is more well-educated.
    Keywords: recruitment; knowledge spillover; firm growth; productivity; SME; absorptive capacity
    JEL: D22 D24 D83 J24 J62
    Date: 2017–03–24
  25. By: Alain Desdoigts; Francesco Cordaro
    Date: 2016

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