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on Innovation |
| By: | Sara, Amoroso (Joint Research Centre, European Commission); Albert, Link (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | An increasing number of theoretical and empirical analyses address the role of innovation as one of the main sources of firm growth. More recently, studies have looked at the role of gen-der diversity as a possible determinant of innovation and entrepreneurial performance. How-ever, the relationship between gender and employment growth —a dimension of entrepreneurial performance— still remains unexplored to a large degree. This paper contributes to the empiri-cal literature on gender and entrepreneurial performance in several ways. First, it examines the role played by both innovation and gender ownership as determinants of employment growth rates of young, knowledge intensive entrepreneurial (KIE) firms. Second, it investigates the indirect impact of contributing factors —such as the characteristics of the market, knowledge-based capital, and human capital— on employment growth. And third, it relies on a rich new cross-sectional data set on young, KIE firms across European Union (EU) countries. The data set contains information not only on the gender of the firm’s founders, but also on the market environment, business strategy, and innovative and economic performance of firms. |
| Keywords: | innovation; entrepreneurship; employment growth; gender |
| JEL: | J16 L26 O31 |
| Date: | 2017–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2017_009&r=ino |
| By: | Bing Guo; David Pérez-Castrillo; Anna Toldrà-Simats |
| Abstract: | We study the effect of analyst coverage on firms’ innovation strategy and outcome. By considering three different channels that allow firms to innovate: internal R&D, acquisitions of other innovative firms, and investments in corporate venture capital (CVC), we are able to distinguish between the pressure and information effect of analysts. Using the data of US firms from 1990 to 2012, we find evidence that: i) an increase in financial analysts leads firms to cut R&D expenses, and ii) more analyst coverage leads firms to acquire more innovative firms and invest in CVC. We attribute the first result to the effect of analyst pressure, and the second to the informational role of analysts. In line with the previous literature, we also find that analyst coverage has a negative effect on firms’ future patents and citations; however, this negative effect becomes not significant when firms’ in-house R&D spending and external innovation channels are taken into account. We find that more financial analysts encourage firms to make more efficient investments related to innovation, which increase their future patents and citations. We address endogeneity with an instrumental variables approach and a difference-in-differences strategy where exogenous variation in analyst coverage comes from brokerage house mergers. |
| Keywords: | financial analysts, innovation, corporate venture capital, acquisition |
| JEL: | G34 G24 O31 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:980&r=ino |
| By: | Dawid, Herbert; Pellegrino, Gabriele; Vivarelli, Marco |
| Abstract: | While the extant innovation literature has provided extensive evidence of the so-called "demand-pull" effect, the possible diverse impact of demand evolution on product vs process innovation activities has not been yet investigated. This paper develops a formal model predicting a larger inducing impact of past sales in fostering product rather than process innovation. This prediction is then tested through a dynamic microeconometric model, controlling for R&D persistence, sample selection, observed and unobservable individual firm effects and time and sectoral peculiarities. Results are consistent with the model and suggest that an expansionary economic policy may benefit the diffusion of new products or even the emergence of entire new sectors. |
| Keywords: | technological change,R&D,demand-pull innovation,dynamic two tobit |
| JEL: | O31 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:92&r=ino |
| By: | Seker, Murat; Ulu, Mehmet Fatih |
| Abstract: | The regulatory environment in a country is an important factor affecting firm performance. This study investigates the impact of a particular regulation, namely license requirements for certain firm activities, on the innovation performance of Indian firms. Using a firm level panel data set, it shows that removal of license requirements led to roughly eight percentage points faster innovation rates within two years following the reform where innovation is measured as introduction of new product varieties that had not existed in the market. When the residual increase in sales revenues even after controlling for product innovation is called as process innovation, substantial improvements in process innovation are also observed. The results are robust to inclusion of controls for the other policy reforms that occurred during the period of licensing reform, and persist in different subcategories of firms. |
| Keywords: | Innovation, research and development, regulatory environment, regulations, industrial policy, India. |
| JEL: | L11 L52 O14 O31 O38 |
| Date: | 2017–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80382&r=ino |
| By: | Buzard, Kristy (Maxwell School, Syracuse University, Syracuse, NY); Carlino, Gerald A. (Federal Reserve Bank of Philadelphia); Hunt, Robert M. (Federal Reserve Bank of Philadelphia); Carr, Jake (Geography Department, The Ohio State University, Columbus OH); Smith, Tony E. (Department of Electrical and Systems Engineering, University of Pennsylvania, Philadelphia, PA) |
| Abstract: | We employ a unique data set to examine the spatial clustering of about 1,700 private research and development (R&D) labs in California and across the Northeast corridor of the United States. Using these data, which contain the R&D labs’ complete addresses, we are able to more precisely locate innovative activity than with patent data, which only contain zip codes for inventors’ residential addresses. We avoid the problems of scale and borders associated with using fixed spatial boundaries, such as zip codes, by developing a new point pattern procedure. Our multiscale core-cluster approach identifies the location and size of significant R&D clusters at various scales, such as a half mile, one mile, five miles, and more. Our analysis identifies four major clusters in the Northeast corridor (one each in Boston, New York–Northern New Jersey, Philadelphia–Wilmington, and Washington, D.C.) and three major clusters in California (one each in the Bay Area, Los Angeles, and San Diego). |
| Keywords: | spatial clustering; geographic concentration; R&D labs; innovation |
| JEL: | O31 R12 |
| Date: | 2017–07–18 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:17-18&r=ino |
| By: | Gandenberger, Carsten |
| Abstract: | A functional analysis of the TIS for wind energy in China has revealed a great disparity in performance with respect to different functions of innovation. A particular strength of the Chinese TIS is the rapid diffusion of wind power equipment which presupposes the development of domestic production capabilities, the successful adoption of existing technology, the creation of markets and legitimacy as well as the ability to mobilize financial resources. Furthermore, Chinese universities and research institutes have quickly expanded their capabilities in the area of basic research. In contrast, China's performance in the area of applied research is mixed. Although the growth in the number of transnational and domestic wind energy patents indicates that China is now among the most inventive countries in the world, a more detailed analysis suggests that inventions are less focused on the most relevant technology subfields and that Chinese firms are reluctant to engage in innovation. The most prominent drawback of the centralized planning approach in China are governance deficits relating to the integration of wind energy into China's electricity grid as well as to the lack of complementary infrastructure for energy transmission and storage. These deficits result in high curtailment rates, low incentives for quality oriented innovation, and a low overall efficiency of wind energy in China. |
| Keywords: | Technological Innovation System,Functions of Innovation,China,Wind Energy |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s072017&r=ino |
| By: | MABROUKI, Mohamed |
| Abstract: | At the theoretical level, the establishment of a patent system has two objectives: to encourage firms to produce new knowledge and to disseminate information. However, economic practice has highlighted the dilemma between protection and dissemination. This paper discusses how to determine the optimal level of protection across the three dimensions of the patent. While the representation of patent characteristics by microeconomic models is very rich and detailed, innovation-based growth models that have examined with precision how growth can vary with the system of industrial protection are few. The representation of three dimensions of the patent, by these latter models is rather abstract. |
| Keywords: | Innovation Brevet Croissance |
| JEL: | D0 O31 O34 |
| Date: | 2017–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80317&r=ino |
| By: | David Mayer-Foulkes (Division of Economics, CIDE); Kurt A. Hafner (Heilbronn University) |
| Abstract: | Technological creation and mass production are usually associated with large-scale production, while technological absorption is found more often in small-scale competitive firms. Thus, the link between the innovative and absorptive sectors defines a technological and market power gradient that is a key endogenous feature of the economy. We construct a stylized two sector mass market economy model, one with monopolistic and the other with perfect competition, that innovate and absorb technologies. Innovation profits are concentrated among a few owners of large-scale innovation, and economy-wide wage levels reflect the lagging average technological level. The model shows there are innovative-distributive policies that can increase profits. Cointegration and weak-exogeneity results based on our study corroborate the assertion that the large-scale sector drives aggregate employment, wages and inequality. |
| Keywords: | Innovation and absorption, large and small scale technological change, technological gradient, long term inequality, long term market inefficiency, innovative-distributive policies. |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:emc:wpaper:dte606&r=ino |
| By: | Sara Biancini; Pamela Bombarda (Université de Cergy-Pontoise, THEMA) |
| Abstract: | Intellectual property rights (IPR) protect firms from imitation and are considered crucial to promote innovation and technological diffusion. This paper examines the im- pact of IPR on import sourcing decisions of multinationals. We consider a framework in which multinational firms offshore production of an intermediate good in a developing country. Firms can either decide to import the intermediate from vertically integrated producers, or from independent suppliers. In both cases, offshoring part of the produc- tion process embodies a risk of imitation. The model predicts that, under reasonable assumptions, stronger IPR encourage by a larger extent the imports of intermediates through vertical integration. Using U.S. Related-Party Trade database, we find empiri- cal evidence supportive of the positive link between level of IPR and the relative share of imports from vertically integrated manufacturers. |
| Keywords: | Intellectual Property Rights, MNF, FDI, outsourcing, international trade. |
| JEL: | F23 F12 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2017-16&r=ino |
| By: | Alex Coad (CENTRUM-Catolica Graduate Business School, Pontificia Universidad Catolica del Peru, Lima, Peru.) |
| Abstract: | Do firms in the same sector converge towards the same R&D intensities? Previous research has often assumed this to be true. A closer examination, using microdata from the EU Industrial R&D Investment Scoreboard for the years 2000-2015, shows a large amount of heterogeneity in R&D intensities among firms in the same sector, and that this heterogeneity persists over time. Statistical tests of convergence show that the variation in R&D intensities does not decrease over time (i.e. no ?-convergence), although firms with an R&D intensity below the industry average do seem to catch up with the leaders (i.e. evidence of ?-convergence). Overall, firms in the same industry do not converge to a common R&D intensity. Policy implications are discussed. |
| Keywords: | R&D investment, R&D intensity, convergence, benchmarking |
| JEL: | O3 L2 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:2017-04&r=ino |
| By: | HYUN-KYU KANG (Korea Institute of Sicence & Technology Evaluation and Planning) |
| Abstract: | In order to enhance the efficiency of government investment on research and development (R&D), since 2008 the Korean government has applied the preliminary feasibility study (PFS) to new large scale government R&D programs. The PFS of R&D programs is an ex-ante evaluation that is performed in point of views of technology, policy and economy.Because a lot of tax should be expended to conduct a government R&D program, the program should be conducted based on the national science and technology (S&T) strategies, and the program expense should be used meaningly on the basis of the consensus of national policy and society. Also it is good that all risk factors should be known before starting the R&D program. Therefore the feasibility analysis on policy is very important part of the ex-ante evaluation of R&D program. In this paper, main contents of the feasibility analysis on policy will be explained. The policy analysis is composed of the evaluation criteria of three layers and deals with policy issues and other issues that could not be analyzed in technological analysis and economic analysis. |
| Keywords: | Preliminary feasibility study, Ex-ante evaluation, Government R&D program, Policy analysis |
| JEL: | O32 O38 D81 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:5007765&r=ino |
| By: | Howard, Eric (University of North Carolina at Greensboro, Department of Economics); Link, Albert (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | In this paper, we chronicle the early history of the development of Gateway University Research Park at North Carolina Agricultural and Technical State University and at the University of North Carolina at Greensboro. We document the institutional efforts of faculty, administrators, and public leaders who moved the Gateway idea from seed to harvest to provide guideposts for other institutions to possibly follow that are contemplating establishing a research park. Our summary emphasizes the concept of cooperation not only because it is a cornerstone of the successful development of Gateway, but also because it might be a key element to which others relate. |
| Keywords: | research parks; entrepreneurship; innovation |
| JEL: | J16 L26 O31 |
| Date: | 2017–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2017_010&r=ino |
| By: | Anna Iwona Piotrowska (WSB University in Toru?); Dariusz Piotrowski (Nicolaus Copernicus University in Toru?) |
| Abstract: | Bitcoin is a system created to service micro-payments in e-commerce, as well as the digital unit of value functioning in the system's environment. When analysed, the behaviour of market participants indicates that the introduction of investment applications of the cryptocurrency, in parallel with its original payment application, had a tremendous impact on the larger-scale functioning of the system. This was aided by the functioning of many trading platforms allowing for exchange into traditional currencies and a high volatility of quotations. Without doubt, bitcoin may be branded a ground-breaking financial innovation or a work of genius. However, the growing, and even global use of bitcoin has brought some of the system's imperfections to light. As the system developed, bitcoin users started to have a better view of the threats to the correct functioning of the system arising from its construction. The paper aims to indicate the main barriers limiting the functioning of the bitcoin system, and its use in payments in particular. The work has adopted the following research hypothesis: In the early stages of bitcoin functioning, users had little awareness of the technological flaws of the system. The study analyses the literature on the subject and the results of a survey carried out among Polish bitcoin users. The analysis confirms of the research hypothesis, as it shows that in the system?s first several years, users identified the following threats to the system?s functioning: the speculative nature of bitcoin, the lack of adequate awareness in society which would allow for a widespread use of the innovation, potential too strict regulation of the cryptocurrencies market or its banning. The authors also present threats to the functioning of the system which in their opinion are of greatest importance at the moment. These relate to the existence of intermediaries, the lack of systemic incentives addressed to bitcoin merchants, growing costs and payment processing time. The authors intend to indicate those aspects of bitcoin's functioning in order to make the use of cryptocurrencies more conscious and contribute to limiting financial risk of system users. |
| Keywords: | Cryptocurrency, bitcoin, financial innovation, operational risk |
| JEL: | F65 G20 O31 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:4807736&r=ino |
| By: | Takalo, Tuomas; Tanayama, Tanja; Toivanen, Otto |
| Abstract: | We build a structural model of the R&D subsidy process incorporating externalities, fixed costs of R&D, and financial market imperfections. We estimate the model using project level R&D and subsidy data from Finland. We conduct a counterfactual analysis of an optimal R&D tax credit policy, the first and second best policies, and laissez-faire with no support and compare them to the subsidy policy used in Finland. We find that the optimal R&D tax credit rate is 0.24, which is lower than the observed average R&D subsidy rate (0.36). R&D participation does not vary across regimes. The R&D investments and spillovers generated by the optimal R&D tax credit and subsidy policies are significantly higher than under laissez-faire but smaller than in the first and second best. Neither tax credits nor subsidies improve welfare compared to laissez-faire. |
| Keywords: | counterfactual; R&D subsidies; welfare |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12155&r=ino |
| By: | Federico Etro (Department of Economics, University Of Venice Cà Foscari) |
| Abstract: | I analyze the Renaissance art market in Italy through a unique dataset on primary commissions between 1285 and 1550. Hedonic regressions on the real price of paintings allow me to advance evidence that the art market was to a large extent competitive, and that an important determinant of artistic innovation during Renaissance was related to economic incentives. Price differentials reflected quality differentials as perceived at the time (whose proxy is the length of the biography of Vasari, in the 1568 Edition of his Vite) and did not depend on the regional destination of the commissions, as expected under monopolistic competition with free entry. I show an inverse-U relation between prices and age of execution, which is consistent with a reputational theory of artistic effort, and a substantial increase of the real price of paintings since the 1420s. The latter suggests that artistic differentiation, deeper realism and innovations(as linear perspective) may have been driven by increasing profitability of the profession. |
| Keywords: | Renaissance, Economic theory of art history |
| JEL: | N8 Z1 L1 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ven:wpaper:2017:13&r=ino |
| By: | JUNGKWON KIM (Korea Institute of S&T Evaluation and Planning) |
| Abstract: | Stakeholder Analysis is a analytical technique to identify stakeholder and analyze their impact on a given system. It has been considered as a useful tool for developing and/or implementing a policy or program. Preliminary Feasibility Study(PFS) is an official ex-ante evaluation to provide important information on decision of investing new national R&D programs. In order to improve consistency and productivity of PFS results, there are needs for improving its analytical methodology of the standard PFS guide published regularly.The purpose of this study is to suggest a practical approach how to apply the stakeholder analysis to PFS of national R&D programs and the result of this study would help PFS investigators to carry out their PFS more efficiently and systematically.This study provides a PFS stakeholder analysis process consisting of four steps and guideline of each step; ?Understanding the R&D program including drawing a logic model, ?Identification and classification of stakeholder, ?collecting characteristics of stakeholder required for PFS, ?Analysing characteristics of stakeholder and applying the result to PFS. Moreover, An advanced logic model in which stakeholder is newly incorporated in the previous PFS logic model is proposed for better understanding of target programs. |
| Keywords: | Stakeholder analysis, Preliminary feasibility study, National R&D program |
| JEL: | O32 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4607837&r=ino |
| By: | Heshmati, Almas (Jönköping University, Sogang University); Kim, Nam-Seok (Sogang University) |
| Abstract: | This study investigates the relationship between economic growth and democracy by estimating a nation's production function specified as static and dynamic models using panel data. In estimating the production function, it applies a single time trend, multiple time trends and the general index formulations to the translog production function to capture time effects representing technological changes of unknown forms. In addition to the unknown forms, implementing the technology shifters model enabled this study to find possible known channels between economic growth and democracy. Empirical results based on a panel data of 144 countries observed for 1980–2014 show that democracy had a robust positive impact on economic growth. Credit guarantee is one of the most significant positive links between economic growth and democracy. The marginal effects of credit guarantee and foreign direct investment inflows are stronger in democratic countries than they are in non-democratic ones. In order to check the robustness of these results, a dynamic model constructed with a flexible adjustment speed and a target level of GDP is also tested. The results of this dynamic model also support the positive impacts of democracy on economic growth. |
| Keywords: | economic growth, democracy, production function, single time trend, multiple time trends, general index, technology shifters, flexible adjustment speed, target level of GDP |
| JEL: | D24 O43 O47 P16 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10880&r=ino |
| By: | Yun Jong Kim (Korea Institute of S&T Evaluation and Planning) |
| Abstract: | The Korean government is promoting convergence technology to create new industries. The Korean government has established the First Industrial Convergence Development Basic Plan. Implemented by the government every five years pursuant to the Industrial Convergence Promotion Act effective as of October 16, 2011. The purpose of this study is to analyze the investment status of the government funded convergence technology researches with network analysis. This study would like to present a strategy for promoting research on conversion technology in synthesizing the analysis results. The Korean government's investment in conversion technology research was increasing every year. The investment had doubled in 2015(3,141 million dollars) compared to 2010(1,665 million dollars). But the proportion of investment in con-vergence technology research had stagnated for the past three years. A network diagram of the convergence of the convergence technology in 2010 was the 5373 research projects and 34 technologies were involved in network diagram. Espe-cially, ?Biology? and ?Agriculture, Forestry and Fisheries? were strongly connected.The meanings of the analysis results are as follows. The fact that the growth rate of convergence research in Korea is stagnant at 19.6% is something that needs improvement. As the importance of convergence technology grows in the era of the 4th Industrial Revolution, investment in Korean convergence research needs to be increased. When we look at the investment status of the convergence research, it can be confirmed that the Korean government's directions of policy were reflected. The convergence research of the ET field was steadily increasing until 2013, but it was decreasing from 2014. The Korean government had promoted Green Growth as a key policy by 2012, and had adopted the Creation Economy as its key policy since 2013. As the interest in Green Growth was reduced, ET-based convergence researches were declining. On the other hand, the convergence research of IT based on the creation economy was increasing. It is necessary to pursue continuous policy that is not changed by each regime. As BT and IT convergence researches were invested so great, technologies in the field of biotechnology and information and communication had played a central role in the network map. |
| Keywords: | Convergence Technology, Network Analysis, Data Mining |
| JEL: | O32 O33 O38 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4607798&r=ino |