nep-ino New Economics Papers
on Innovation
Issue of 2017‒09‒17
28 papers chosen by
Uwe Cantner
University of Jena

  1. Network-Mediated Knowledge Spillovers: A Cross-Country Comparative Analysis of Information Security Innovations By Branstetter, Lee; Gandal, Neil; Kunievsky, Nadav
  2. Patents and Growth in OLG Economy with Physical Capital By Bharat Diwakar; Gilad Sorek; Michael Stern
  3. Knowledge Diffusion and Trade across Countries and Sectors By Nan Li; Jie Cai; Ana Maria Santacreu
  4. R&D Policy and Technological Trajectories of Regions: Evidence from the EU Framework Programmes By Wolf-Hendrik Uhlbach; Pierre-Alexandre Balland; Thomas Scherngell
  5. Towards a European R&D Incentive? An assessment of R&D Provisions under a Common Corporate Tax Base By Diego d'Andria; Dimitrios Pontikakis; Agnieszka Skonieczna
  6. Accessibility, absorptive capacity and innovation in European urban areas By Clément Gorin
  7. Coordination Frictions and Economic Growth By Gabrovski, Miroslav
  8. The Psychology of the Successful Entrepreneur By Kaushal Mukherjee
  9. How Networking and Social Embeddedness Make Entrepreneurs Successful in Medium-Sized Cities of Peripheral Areas: A Location Case-Study in Brittany (France) By Guy Baudelle; Gerhard Krauss; Clément Marinos
  10. Social impact measurement and public management: how social innovation challenges the policy evaluation paradigm –the case of France By Bryan Dufour
  11. European R&D networks: A snapshot from the 7th EU Framework Programme By Sara Amoroso; Alex Coad; Nicola Grassano
  12. Collaborative Innovation Projects Engaging open communities: a Case Study on Emerging Challenges By Laurent Dupont; Alex Gabriel; Mauricio Camargo; Claudine Guidat
  13. Towards a Typology of Intermediaries in Transitions: a Systematic Review By Paula Kivimaa; Wouter Boon; Sampsa Hyysalo; Laurens Klerkx
  14. The Birth and Growth of New Export Clusters: Which Mechanisms Drive Diversification? By Dany Bahar; Rodrigo Wagner; Ernesto Stein; Samuel Rosenow
  15. Toward a Matching Approach to Support CBM (Collaborative Business Model) Processes between Regional Entrepreneurs within the RIS3 Policy By Jérémie Faham; Maxime Daniel; Jérémy Legardeur
  16. Strategic Investment in Innovation: Capacity and Timing Decisions under Uncertainty By Huberts, Nick
  17. Home Market Effects on Innovation By Thibault Fally; Ana Cecilia Fieler; Justin Caron
  18. Pirate’s Treasure By Jenny X. Lin; William Lincoln
  19. Stimulating youth entrepreneurship in the public sector's organizations By Tirziu, Andreea-Maria; Vrabie, Catalin
  20. Welfare Effects of Patent Protection in a Semi-Endogenous Growth Model By Tatsuro Iwaisako
  21. Are Ideas Getting Harder to Find? By Nicholas Bloom; Charles I Jones; John Van Reenen; Michael Webb
  22. Relational Contracts, Competition and Innovation: Theory and Evidence from German Car Manufacturers By Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; Spagnolo, Giancarlo; Stahl, Konrad
  23. Innovation environnementale et création de valeur By Helen Micheaux; Franck Aggeri
  24. Microfoundations and the birth of a firm's identity: How entrepreneurs deal with routines to entrench their start-up in an ecosystem By Olga Kokshagina; Sophie Hooge; Emilie Canet
  25. A concise history of the knowledge base literature: challenging questions for future research By Ron Boschma
  26. Energy Product Service Systems as core element of energy transition in the household sector: The Greenplay project By Michael Hamwi; Jérémy Legardeur; Iban Lizarralde
  27. The effect of horizontal mergers, when firms compete in prices and investments By Massimo Motta; Emanuele Tarantino
  28. Smart Specialisation at work: Analysis of the calls launched under ERDF Operational Programmes By Carlo Gianelle; Fabrizio Guzzo; Krzysztof Mieszkowski

  1. By: Branstetter, Lee; Gandal, Neil; Kunievsky, Nadav
    Abstract: A large and growing literature has used patent and patent citation data to measure knowledge spillovers across inventions and organizations, but relatively few papers in this literature have explicitly considered the collaboration networks formed by inventors as a mechanism for shaping and transmitting these knowledge flows. This paper utilizes an approach developed by Fershtman and Gandal (FG 2011) (and applied to Open Source Software) to examine the incidence and nature of knowledge flows mediated by the collaboration networks of inventors active in the information security industry. This is an industry in which a number of nations outside the United States, including Israel, have emerged as important centers of innovation. Israeli prominence in this sector is often attributed, in part, to a dense network of personal collections and collaborations that has its genesis in elite intelligence units in the Israeli Defense Forces, through which many Israeli information security inventors and entrepreneurs receive their first exposure to this domain. Using data from U.S. PTO patent grants in information security, we find that the quality of Israeli information security inventions is systematically linked to the structure of the collaborative network generated by Israeli inventors in this sector. Using the FG (2011) model, this suggests that there are knowledge spillovers from the network. In some other nations, invention quality is less closely linked to the collaboration networks of inventors. This research highlights the importance of direct interaction among inventors as a conduit for flows of frontier scientific knowledge.
    Keywords: Information Security; Knowledge Spillovers; patents
    JEL: O31 O33 O57
    Date: 2017–09
  2. By: Bharat Diwakar; Gilad Sorek; Michael Stern
    Abstract: We study the implications of patents in an overlapping-generations model with horizontal innovation of differentiated physical capital. We show that within this demographic structure of finitely lived agents, weakening patent protection generates two contradicting effects on innovation and growth. Weakening patent protection lowers the (average) price of patented machines, thereby increasing machine utilization, output, aggregate saving, and investment. However, a higher demand for machines shifts investment away from the R&D activity aimed at inventing new machine varieties, toward the formation of physical capital. The growth maximizing level of patent protection is incomplete and we show that shortening patent length is more effective than loosening patent breadth in spurring growth. Shorter patent length has an additional positive effect on growth by decreasing investment in old patents. Finally, we show that the welfare implications of shortening patent breadth depend on consumer time preference and the degree of machine specialization.
    Keywords: IPR, Patents, Physical Capital, Growth, OLG
    Date: 2017–09
  3. By: Nan Li (International Monetary Fund); Jie Cai (Shanghai University of Finance and Economics); Ana Maria Santacreu (St. Louis Fed)
    Abstract: Countries and sectors interact through knowledge spillovers and international trade flows. These interactions drive differences in income per capita and innovation not only across countries, but also across sectors within a country. We develop and quantify a model of innovation, knowledge diffusion and trade that can explain these differences. Using data on intersectoral patent citations, R&D expenditures and international trade flows, we calibrate the model and perform several counterfactual exercises. Decreases in trade costs or increases in the speed of diffusion reallocate resources across countries and sectors, generating a distributional effect on aggregate innovation and growth.
    Date: 2017
  4. By: Wolf-Hendrik Uhlbach; Pierre-Alexandre Balland; Thomas Scherngell
    Abstract: It is widely acknowledged that new technological specializations of regions are to a large extent driven by the recombination of existing knowledge and capabilities. Since this process is path-dependant and self-reinforcing, it can easily lead to technological lock-ins. A key issue is therefore to evaluate whether public policy can impact technological trajectories of regions and how it can be more effective. To address this issue, we analyze quantitatively and systematically the relation between R&D subsidies and new technological specializations of European regions from 1999 to 2010. R&D subsidies are identified by using the EU Framework Pro- grammes (FP) from the EUPRO database, and matched with patent documents from the OECD-REGPAT database. Using a fixed-effects linear probability model, our results indicate that FP participations have a positive but relatively small effect on the development of new specializations of regions, and that it can compensate for a lack of local related capabilities. We also find evidence that R&D subsidies have the highest impact if the level of relatedness with the new technology is neither too low (policy can not build a cathedral in the desert) nor too high (if all the capabilities are already present there is no need for policy).
    Keywords: Regional Diversification, Technological Change, R&D subsidies, EU Framework Programmes
    JEL: O31 O33 O38 O52
    Date: 2017–09
  5. By: Diego d'Andria (European Commission - JRC); Dimitrios Pontikakis (European Commission - JRC); Agnieszka Skonieczna (European Commission - TAXUD)
    Abstract: EU businesses underinvest in R&D which is a driver of economic growth and productivity. While the world is becoming more R&D-intensive, the relative weight of the EU is decreasing, mainly due to the rapid rise of China. Taxation has been increasingly used to stimulate investment in R&D. A recent proposal for a Common Consolidated Corporate Tax Base (CCCTB) across the European Union (EU) includes an R&D incentive. This paper presents the rationale for the inclusion of R&D provisions, quantifies the subsidy implied by alternative options using the user's cost approach and approximates aggregate impacts by means of simple extrapolations from elasticities found in literature. We find that the CCCTB without an R&D incentive would significantly deteriorate incentives to invest in R&D. We present alternative options and argue that the level of support should be ambitious to address the pressing need in the EU to invest more, stay globally competitive and reach the EU's target of investing 3% of its GDP in R&D. Importantly, to take full advantage of the opportunities offered by this tax reform, EU member states will have to coherently mobilise a range of policies and engage in complementary non-tax interventions in their national innovation systems. We conclude with a broad consideration of what these may be for the varied and variably developed business innovation capabilities found across the EU.
    Keywords: R&D, B-index, CCCTB, Corporate taxation, innovation
    JEL: F21 H25 H73 O31
    Date: 2017–07
  6. By: Clément Gorin (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - UJM - Université Jean Monnet [Saint-Etienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Empirical studies on the geography of innovation have established that skilled workers' mobility and collaboration networks shape the diffusion of knowledge across firms and regions. At the same time, the literature on absorptive capacity insisted on the importance of local research capabilities to take advantage of knowledge developed elsewhere. This paper investigates both phenomena in an integrated framework by assuming that mobility and networks provide access to knowledge, but the proportion of accessible knowledge effectively used for innovation depends on absorptive capacity. Such complementaries in regional research efforts are effectively captured using a spatial Durbin model in which the conne ctivity structure stems from mobility and collaboration patterns. Results suggest the relative importance of these two channels in the diffusion of knowledge, and suggests that human capital increases absorptive capacity. These findings have implications for the geography of innovation. While greater accessibility encourages convergence, the notion of absorptive capacity implies a self-reinforcing effect leading to divergence. Abstract Empirical studies on the geography of innovation have established that skilled workers' mo
    Keywords: Innovation, Mobility, Network, Absorptive capacity, Spatial Durbin model, Urban areas
    Date: 2017
  7. By: Gabrovski, Miroslav
    Abstract: In practice, firms face a mass of scarce innovation projects. They choose a particular research avenue towards which to direct their effort, but do not coordinate these choices. This gives rise to coordination frictions. Our paper develops an expanding-variety endogenous growth model to study the impact of these frictions on the economy. The coordination failure generates a mass of foregone innovation and reduces the economy-wide research intensity. Both of these effects decrease the growth rate. Because of this, the frictions also amplify the fraction of wasteful simultaneous innovation. A numerical exercise suggests that the impact of coordination frictions on both the growth rate and welfare is substantial. This paper also analyzes firm-level data on patents which provide an estimate of the severity of the coordination problems and further evidence in favor of the hypothesis that research avenues are scarce.
    Keywords: Growth; Frictions; Coordination; Simultaneous Innovation; Search for Ideas
    JEL: O30 O31 O32 O33 O40
    Date: 2017–02–16
  8. By: Kaushal Mukherjee (Bankura Unnayani Institute of Engineering)
    Abstract: Illustration of entrepreneurial action plan. Abstract The entrepreneurship development is mainly due to the entrepreneurial motivation. The motivation of entrepreneurs is influenced by the external as well as internal environmental factors. Though there is no research study which reveals the extent to which the entrepreneurs are motivated by these two environments it is found that the entrepreneurial motivation is due to the influence of both the external and internal environmental factors. The psychological behaviours of the entrepreneurs are also equal playing its role while motivating the entrepreneurs, which are also discussed here. This paper also helps entrepreneurs to identify the different business opportunities and growth of the existing business. A real entrepreneur is a person who generally motivated by intrinsic psychological and also economic rewards. He indigenously tries an entrepreneurial venture for his personal satisfaction in work, ego or status. This paper reviews the psychological literature on entrepreneurs. Assessment and generalizations for the entrepreneurs are risky since there is no specific population of entrepreneurs. Psychological characteristics: In the modem days a suitable entrepreneurial culture must be created by developing healthy work environment and modem attitude towards work giving social recognition etc. These factors will provide the psychological stimulus which in turn promotes innovation, inspiration, ethics and values which are essential for successful entrepreneurs. The irrational behaviours of the entrepreneurs are also playing a vital role while motivating the entrepreneurs.
    Keywords: Employee participation,Entrepreneurialism,Entrepreneurial action plan,Psychology of the successful entrepreneur,Workplace learning
    Date: 2016–12
  9. By: Guy Baudelle (ESO - Espaces et Sociétés - UNICAEN - Université Caen Normandie - UM - Université du Maine - UA - Université d'Angers - UN - Université de Nantes - AGROCAMPUS OUEST - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique); Gerhard Krauss (ESO - Espaces et Sociétés - UNICAEN - Université Caen Normandie - UM - Université du Maine - UA - Université d'Angers - UN - Université de Nantes - AGROCAMPUS OUEST - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique); Clément Marinos (LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO - Université de Brest - Institut Mines-Télécom [Paris] - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire)
    Abstract: According to the mainstream literature in economic geography, agglomeration economies are so powerful drivers for polarization in the larger metro areas that a center-periphery pattern is almost inescapable, making any peripheral location clearly disadvantageous for firms (Dicken and Lloyd, 1992; Fujita and Thisse, 2003). Urban studies also support such views by demonstrating the growing, steadily trend towards metropolization. However these statements are not fully confirmed by some empirical results. Indeed the stated entrepreneurs’ locational preferences of firms localized in medium-sized (and even small) cities situated in peripheral areas do not always meet these theoretical interpretations. Innovative entrepreneurs and successful companies are usual in such locations, making necessary to explain such unexpected location choices and how they can be successful despite their so-called locational constraints due both to their remote position in badly connected peripheries (as demonstrated by population and economic potential models at the national and European scales) and to the lack of localized external economies of scale. To enlighten such apparently irrational business location choices, we could refer to the behavioural approach (Pred, 1967) as the perception of the quality of location characteristics has been neglected by the literature (Eickelpasch and al., 2015). Indeed the mental maps of the peripheral entrepreneurs –as revealed by our survey– do not exhibit the same perception of their working-area as expected from the theoretical works that consider peripheral locations are damaging due to various backwash effects (Myrdal, 1957; Haggett, 1979). As it has often been established by numerous surveys, the first locational factor of SMEs is often the birthplace of their manager, especially for family-owned companies, considering that entrepreneurial spirit is often more common in areas dominated by small firms (Baudelle and Ollivro, 2000; Ejermo and Hansen, 2015). Therefore the rationale of their location choice does not necessarily match the requisites of profit maximization. But despite this kind of path dependency due to the faithfulness of these entrepreneurs to their native region, we need to understand how such firms can be innovative and therefore successful notwithstanding their non- optimal location in small and medium-sized cities of peripheral areas. At this point we need another theoretical framework, namely the institutional approach (Granovetter, 1973). This perspective is required to explain why and how entrepreneurs can be successful in spite of their non-metropolitan location in modest cities situated far not only from the core of Europe but also from the national and sub-national metropolises. More specifically our study mobilizes the sociology of networks (Krauss, 2011 & 2013) to explain the paradoxical success-stories of peripheral firms. Such an approach is congruent with the evolutionary perspective that is paying more and more attention (but not so much) to networks and institutions as parts of complex adaptative systems to explain regional resilience (Boschma, 2015). Therefore our theoretical assumption is the following: professional networks and personal networking are crucial for these companies and their managers to give them access to various kinds of resources that are necessary to run their business. This is consistent with the theory striking the need for embeddeness among the entrepreneurs to make them possible to run their business with success (Granovetter, 1973; Krauss, Sternberg, 2014). The final goal of the study is to understand how the access to various informational and human resources is made possible by the construction of networks used by innovating companies to develop their business. Consequently the objective is to identify the configuration of the networks –strong or weak, local or distant, central or peripheral– of the interviewed entrepreneurs to understand their possible role in their success stories. The field-study area is a corridor along the Southern Brittany Coast (France). In this area of about 939 000 inhab., there is no large metropolis. The three main cities (Lorient, Quimper, Vannes) are simply medium-sized cities: their built-up areas have respectively 115 000, 80 000 and 75 000 inhab. only and their travel-to-work areas 180 000, 120 000 and 135 000 people. Outside them, only small cities can be found. Moreover these cities are far from the rest of France and Europe and even from the larger metro area in Western France, Nantes (622 000 inh.), which is more than 3 hours away by car from Western Brittany and even 4 hour and a half by train. Even from the closest city (Vannes) the journey to Nantes requires more than 2 hours. Paris, the national capital-city, remains from 3h30 to 6h30 away by train. Some local domestic airports compensate this remoteness but not totally and with a high flight cost due to monopolies. As a result this area is a typical periphery, far from the metropolitan engines of the globalizing economy. The French division of labour between Paris metro area and the province even worsens the gap between the Breton Western periphery and the French World City. To understand how the entrepreneurs overcome such a physical distance, a sample of about 20 successful business leaders were interviewed (Marinos, 2015). The selected companies (mainly SMEs) are deliberately very competitive ones: they are intensive in technology, exhibit a high level of innovation (as demonstrated by the number of patents) allowing high added values and significant export rates, they attract international investors and look for clients and suppliers all around the world. The objective of the study was to evaluate how important the networks are to compensate the possible theoretical locational constraints due to peripheral sites (Krauss, 2009). The literature often points out the possible negative locking effects of excessive local inward-looking ties, suggesting a trade-off between immediate adaptation and later adaptability (Grabher, 1993; Boschma and Frenken, 2010; Braun and Schulz, 2012; Boschma, 2015). However our study shows clearly that such a distinction between strong local, proximate connections and weak, outward-looking networks does not fit with our empirical results, which leads to reconsider the present literature about the connectedness of entrepreneurs working in peripheries seen as so-called autarkic and poorly connected places. The survey reveals that the entrepreneurs do not ignore the drawbacks of peripheral locations. However the professionals met for the survey express great satisfaction about their business in Southern Brittany. The participation of three quarters of them in local networks (business associations, chambers of commerce, development agencies...) is presented as necessary for their business development process, and even crucial during the start-up stage. It allows them to open up to their immediate environment and to enhance their external visibility. Belonging to a network also improves their collective capacity for concerted actions. Doing so, entrepreneurs become more audible by politicians and influence local public policies. Small and medium-sized cities are perceived as a favorable ground to confident relationships even if that kind of links rarely exceeds the TTWA boundaries. Local political staff and administration are more easily approachable and quicker to react than in bigger cities. More surprisingly, these employers are involved in the local economic life even if their clients are not local. The more entrepreneurs operate on the globalized market, the more they express that need for local commitment: “my company needs roots to have wings”. The local territory acts as a medium between stakeholders: “partnerships, collaborations, it is first and foremost a human-based process”. A collaborative way of working is considered essential. The importance of trusting is at the heart of networks' efficiency because it facilitates the exchanges and improves the flow of information. The information quality control is operated by network members. Immaterial resources access constitutes a favorable ground for entrepreneur’s social capital. This access opportunity participates to the process of innovation. Therefore mutual trust can be regarded as an implicit knowledge transmission accelerator that fosters innovation. Higher education (including alumni associations) is complementarily highly structuring for entrepreneurs’ networks, offering good opportunities to develop sustainable partnerships. When they exist, links with experts and academic researchers are sustainable and lead to success. These relations take time and depend on the leader’s background. They vary a lot according to how long the company has been based on the territory. However most of the local research fields are different from those which are of interest to local companies to such an extent that some companies prefer working with metropolitan research organizations, particularly for those which operate in niche activities. In terms of cooperation, employers display a very pragmatic behavior: they get to the closest companies, sometimes even at the expense of the quality of the resource. Geographic proximity fosters working together, a round trip in the afternoon being considered as the symbolic border. This is particularly true for interpersonal networks, restricted to everyday life territory. But for commercial partnerships there is no geographic border. Eventually these networks are helpful to overcome some challenges such as hiring talented employees or getting a convenient job for their partners in small TTWAs. But they do not solve all the usual problems the peripheral entrepreneurs face to such as good air connectivity within an hour drive (“If the airport closes, I leave”). Moreover the companies operating in specialized activities or in a niche productions do suffer from the lack of dense sectorial networks, generating a feeling of isolation. This can impact the open innovation process and even inhibit the organization of events supposed to provide new interactions. Finally the network approach helps to understand why companies located in peripheral areas do not move towards larger central metro areas despite of their locational disadvantage underlined by the neoclassic locational theory.
    Keywords: peripheral location, embeddedness, entrepreneurship, networks, innovation
    Date: 2017–08–30
  10. By: Bryan Dufour (LEST - Laboratoire d'économie et de sociologie du travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique)
    Abstract: As an increasing number of governments draw an interest in social enterprises and seek to understand the impact of social innovation through social impact measurement (SIM) practices, this paper builds a gap analysis between " traditional " programme evaluation (PE) as it is carried out by public actors and SIM as it is practiced by social enterprises. After framing our contribution in terms of context and definitions, we proceed with the case study of France, where we compare public praxis for both SIM and PE based on a documentary analysis. We find that both disciplines are bridged by a common theoretical foundation and, to a certain extent, by participative approaches. We also identify three main gaps, which are (i) the way outcomes are treated in PE and SIM; (ii) how the stakeholders' participation is managed and how it affects the ownership of the evaluation process by the involved parties; and (iii) how metrics and indicators are approached. This paper is part of a broader research project on SIM focused on work integration social enterprises (WISEs) in the French and Danish public management contexts. The SIM and PE approaches studied here are therefore considered in the perspective of an application for WISEs.
    Keywords: Programme Evaluation,Public Management,Social enterprises
    Date: 2016–09–05
  11. By: Sara Amoroso (European Commission - JRC); Alex Coad (CENTRUM Católica Graduate Business School, Pontificia Universidad Católica del Perú, Lima, Perú); Nicola Grassano (European Commission – JRC)
    Abstract: Recent empirical studies have investigated the territorial impact of Europe’s research policies, in particular the contribution of the European Framework Programmes to the integration of a European Research Area. This paper deepens the analysis on the integration and participation of peripheral regions, by focusing on the differences in intensity and determinants of inter-regional collaborations across three groups of collaborations. We consider collaborations among more developed regions, between more and less developed regions, and among less developed regions. Building on the recent spatial interaction literature, this paper investigates the effects of physical, institutional, social and technological proximity on the intensity of inter-regional research collaboration across heterogeneous European regions. We find that the impact of disparities in human capital and technological proximity on regional R&D cooperation is relevant and differs across subgroups of collaborations. Moreover, despite the efforts of integrating marginal actors, peripheral regions have lower rates of collaborations.
    Keywords: European Research Area, spatial interaction modelling, R&D collaboration, regional integration
    JEL: O38 L14 F15 R15
    Date: 2017–07
  12. By: Laurent Dupont (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Alex Gabriel (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Mauricio Camargo (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Claudine Guidat (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine)
    Abstract: This paper presents a case study on emerging challenges within collaborative innovation projects engaging open communities. Innovation driven by open communities has proven to have a significant potential, in particular for open source software. However, tools and methodologies enabling the supervision of collaborative innovation involving open communities, in the perspective of creating open hardware to solve societal issues, remains at the early stages. This paper seeks to pinpoint the potentialities and challenges of such projects toward defining methods to better support a multi-stakeholders open source collaboration context. The experimental field of this research concerns the smart electricity distribution, and more precisely a public driven project of the diffusion of smart-meters in France and their appropriation by open source communities, with the involvement of the university and a public industrial company. The project seeks to study how these communities of users develop in a collaborative manner, new products and services using the smart-meter as a support technology. The first results show that the open community makes natural connection on specific environments such as Smart buildings to materialize usages of smart meters.
    Keywords: open hardware, collaborative innovation,community of practice, project management, user-driven innovation, co-creation
    Date: 2017–06–27
  13. By: Paula Kivimaa (University of Sussex, UK & Finnish Environment Institute SYKE); Wouter Boon (Utrecht University, Netherlands); Sampsa Hyysalo (Aalto University School of Arts and Design, Finland); Laurens Klerkx (Knowledge, Technology and Innovation Group, Wageningen University, Netherlands)
    Abstract: Intermediary actors have been proposed as key catalysts that speed up change towards more sustainable socio-technical systems. Research on this topic has gradually gained traction since 2009, but has been complicated by the inconsistency regarding what intermediaries are in the context of such transitions and which activities they focus on, or should focus on. This paper aims to bring more clarity to the topic of intermediaries in transitions, providing a typology that, beyond functions of intermediaries, is sensitive to different levels and phases of transitions, and the origin and emergence of intermediary actors. Based on a systematic review of academic scholarly articles, the paper identifies five different categories of intermediary actors that play a role in transitions based on their level of operation and origin, being insider/outsider, the level of agency, and the degree of neutrality. Some intermediaries are specifically set up to facilitate transitions, while others grow into the role of an intermediary during the process of sociotechnical change. On the basis of the study we argue that systemic and niche intermediaries are most crucial forms of intermediary actors in transitions, which should be also considered in planning future innovation governance frameworks. The paper further elaborates how intermediation occurs in pre-development, take-off, acceleration and embedding, and destabilisation phases. We note the lack of literature about intermediary activities in different phases of transition, in particular with respect to the acceleration and embedding phase. We, thus, suggest what kind of transition intermediaries are needed to better support the acceleration and embedding of innovations contributing to long-term sustainable development.
    Keywords: sustainability transitions, innovation intermediaries, phases of transition, multilevel perspective
    Date: 2017–09
  14. By: Dany Bahar (Center for International Development at Harvard University); Rodrigo Wagner; Ernesto Stein; Samuel Rosenow
    Abstract: Export diversification is associated with economic growth and development. Our paper explores competing mechanisms that mediate the emergence and growth of export products based on their economic relatedness to pre-existing exports. Our innovation is to simultaneously consider supply factors like labor, sourcing and technology; as well as demand factors like industry specific customer-linkages in a global setting. We find that, while technology and workforce similarity explain emergence and growth, pre-existing downstream industries remain a robust predictor of diversification, especially for jump starting new exports in developing countries. Our global stylized fact generalizes Javorcik’s (2004) view that spillovers are more likely in backward linkages.
    Keywords: comparative advantage, exports, relatedness, spillovers, R&D, patents, labor, upstream, downstream
    JEL: O14 O33 F14
    Date: 2017–09
  15. By: Jérémie Faham (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Maxime Daniel (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), LaBRI - Laboratoire Bordelais de Recherche en Informatique - Université Bordeaux Segalen - Bordeaux 2 - Université Sciences et Technologies - Bordeaux 1 - École Nationale Supérieure d'Électronique, Informatique et Radiocommunications de Bordeaux (ENSEIRB) - CNRS - Centre National de la Recherche Scientifique); Jérémy Legardeur (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA), IMS - Laboratoire de l'intégration, du matériau au système - Université Sciences et Technologies - Bordeaux 1 - Institut Polytechnique de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: One of the objectives of the European Commission for 2014-2020 is to establish " Research and Innovation Strategies for the Smart Specialization " (RIS3). The originality of RIS3 is the " bottom-up " identification of regional priorities especially through the " Entrepreneurial Discovery " (ED) process. The Collaborative Business Models (CBM) approach has probably a role to play within this process as a suitable strategic tool to set up regional " value networks ". However, the preparatory stage of CBM and especially the identification and the matching processes among potential RE partners is often not addressed. This work is based on the need to support the discovering and the matching processes between " regional entrepreneurs " (companies, research , consulting, association, public authorities…) in order to improve the efficacy of CBM and RIS3. In this paper, we propose a review of the state of the art concerning the different dimensions linked to the matching processes.
    Keywords: Entrepreneurs,Profile Comprehension,Matching,RIS3,Entrepreneurial Discovery,Collaborative Business Models
    Date: 2016–09–03
  16. By: Huberts, Nick (Tilburg University, School of Economics and Management)
    Abstract: This dissertation comprises of two parts. The first part focusses on the optimal investment problem of incumbent firms when they are offered the option to start the production of a new product that yields an innovation compared to the established product. We start with the incumbent-entrant problem in Chapter 2. Chapter 3 looks at incumbent firms that have the option to expand their current production lines by offering a new generation of the existing product. In Chapter 4, we look at the situation where incumbent firms can choose their optimal moment to replace their current technology for a new, better, technology. The second part of this dissertation looks at the optimal investment timing in a setting with a birth-death process.
    Date: 2017
  17. By: Thibault Fally (University of California Berkeley); Ana Cecilia Fieler (University of Pennsylvania); Justin Caron (HEC Montreal)
    Abstract: We model and estimate the home-market effect and study its implications for inequality within and across countries. The home-market effect occurs when exogenous differences in demand across countries generate endogenous differences in comparative advantages through technical change that is specific to a country and sector. Estimating it has proved difficult because econometricians do not directly observe exogenous differences in demand but only observe equilibrium expenditures, which also depend on supply-side characteristics. Our solution is to exploit non-homotheticity in preferences to construct instruments for the location of production, which determines comparative advantage through a home-market effect on innovation. Motivated by data, the model features factor-biased technologies and imperfect technology diffusion, which generate both Ricardian (endogenous relative productivity) and Heckscher-Ohlin-type comparative advantage (endogenous factor intensity). Because the production of income-elastic goods concentrates in rich, skill-endowed countries, technology diffusion implies that income-elastic goods in the model are endogenously more skill intensive in all countries. Home-market effects thus generate within-country inequalities through skill-biased technical change while they generate across-country inequalities because countries differ in their access to larger, richer markets. We explore counterfactual simulations using the estimated model to evaluate the effects of trade and technology diffusion on inequalities.
    Date: 2017
  18. By: Jenny X. Lin; William Lincoln
    Abstract: Do countries that improve their protection of intellectual property rights gain access to new product varieties from technologically advanced countries? We build the first comprehensive matched firm level data set on exports and patents using confidential microdata from the US Census to address this question. Across several different estimation approaches we find evidence that these protections affect where US firms export.
    Keywords: trade, innovation, intellectual property rights, patents
    JEL: F13 F14 M21 O31 O3
    Date: 2017–01
  19. By: Tirziu, Andreea-Maria; Vrabie, Catalin
    Abstract: An entrepreneurial education and work culture brings changes in the relation between the public sector’s organizations and its interested parties. More precisely, it is a question of changing managerial and organizational education practices towards self-direction, innovativeness, flexibility and responsibility. Understanding how public sector’s organizations operate in an entrepreneurial manner is also helpful for supporting growth within the business community. This article aims at presenting a framework on young people’s possibilities of becoming successful entrepreneurs within the public sector’s organizations, showing a literature review that concentrates on the entrepreneurship subject, with focus on youth and the public sector’s field. The results are the research made by using studies on this subject, thus leading to a proper use of entrepreneurial means, knowledge and start-up activities that allow an evolved education, self-responsibility and autonomy. We will see that the entrepreneurship concept has been expanded and a strong tendency is in favor of placing entrepreneurship in the center of attention, being regarded as natural in more contexts than the economic one. The wide understanding aims at developing abilities – power of initiative, energy, creativity, cooperation and responsibility, whereas the narrow understanding is more aimed at students obtaining business and self-engaging knowledge regarding personal growth activities.
    Keywords: social innovation; public sector; youth; entrepreneurship education
    JEL: L31
    Date: 2017–09–10
  20. By: Tatsuro Iwaisako (Graduate School of Economics, Osaka University)
    Abstract: This paper examines how strengthening patent protection affects welfare in a nonscale qualityladder model, which was developed by Segerstrom (1998) and generalized by Li (2003). In the Segerstrom-Li model, patent protection creates no distortion in static allocation among the production sectors. In order to examine the welfare effects of strengthening patent protection adequately, we incorporate a competitive outside good into the Segerstrom-Li model. In the general model, we derive the welfare-maximizing degree of patent protection analytically by utilizing a linear approximation of the transition path. The result shows that the welfare-maximizing degree of patent protection is weaker when the market share of the competitive outside good is psitive than when it is zero. In other words, evaluating the welfare effect of patent protection without considering the static distortion which it creates leads to excessive patent protection.
    Keywords: R&D; patent protection; welfare analysis; semi-endogenous growth
    JEL: O33 O34 O40
    Date: 2017–08
  21. By: Nicholas Bloom; Charles I Jones; John Van Reenen; Michael Webb
    Abstract: In many growth models, economic growth arises from people creating ideas, and the long-run growth rate is the product of two terms: the effective number of researchers and their research productivity. We present a wide range of evidence from various industries, products, and firms showing that research effort is rising substantially while research productivity is declining sharply. A good example is Moore's Law. The number of researchers required today to achieve the famous doubling every two years of the density of computer chips is more than 18 times larger than the number required in the early 1970s. Across a broad range of case studies at various levels of (dis)aggregation, we find that ideas—and in particular the exponential growth they imply — are getting harder and harder to find. Exponential growth results from the large increases in research effort that offset its declining productivity.
    Keywords: economic growth, ideas, research effort, research productivity
    Date: 2017–09
  22. By: Calzolari, Giacomo; Felli, Leonardo; Koenen, Johannes; Spagnolo, Giancarlo; Stahl, Konrad
    Abstract: Using unique data from buyer-supplier relationships in the German automotive industry, we unveil a puzzle by which more trust in a relationship is associated with higher idiosyncratic investment, but also more competition. We develop a theoretical model of repeated procurement with non-contractible, buyer-specifi c investments rationalizing both observations. Against the idea that competition erodes rents needed to build trust and sustain relationships, we infer that trust and competition tend to go hand in hand. In our setting trust and rents from reduced supplier competition behave like substitutes, rather than complements as typically understood.
    Keywords: Competition; Hold-up Problem; Innovation; Management Practices; Procurement; Relational Contracts; Specific Investment; Supply Chains; Trust
    JEL: D22 D86 L22 L62
    Date: 2017–09
  23. By: Helen Micheaux (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Franck Aggeri (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Le modèle économique dominant est une économie linéaire fondée sur la consommation de ressources non renouvelables et la mise en décharge des produits en fin de vie. Face aux impasses de ce modèle linéaire, un modèle alternatif a été proposé : l'économie circulaire, fondée sur un principe de bouclage des flux de matière et d'énergie. On observe depuis le milieu des années 2000, diverses expérimentations d'innovation de business models circulaires (BMC) visant à explorer le potentiel de création de valeur associé à ce modèle. Toutefois, ces initiatives restent relativement isolées. De ce fait, se pose la question du passage d'expérimentations locales à un système soutenable sur le plan économique et environnemental. Dans cette optique, cette communication analyse, au travers du concept de business model, les conditions de développement des BMC émergents dans la filière des équipements électriques et électroniques. Ainsi, nous identifions le déficit d'actions collectives qui constituent des freins à la capitalisation des expériences et à leur intégration dans des filières. Pour surmonter ces obstacles, nous mettons en évidence que la structuration d'actions collectives et l'intervention publique sont nécessaires, et proposons des pistes d'actions envisageables.
    Keywords: Business model circulaire,Innovation environnementale,DEEE
    Date: 2016–09–15
  24. By: Olga Kokshagina (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Sophie Hooge (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Emilie Canet (MLab - DRM - Dauphine Recherches en Management - Université Paris-Dauphine - CNRS - Centre National de la Recherche Scientifique)
    Abstract: How to shape successful ventures; ensure that an entrepreneur’s journey will lead to create viable businesses over time? It is argued that organizations are built on habits and routines in place that are defined as dispositions to follow certain behavioral tendencies motivated by appropriate contexts and environments (Abell et al., 2007; Becker, 2012; Cohen, 2012; Nelson & Sidney, 1982). Prior work stressed that the individual identity, founders’ habits influence the emergence of organizational routines. Bryant (2014) argues that founders can better manage the initial imprinting process thus enhancing a venture’s capacity to adapt. Besides the founders’ identity and their imprinting memories, ventures’ identity is influenced by its corresponding ecosystem. For instance, to promote and ensure firms’ creation, local ecosystems create incubators, co-working spaces oriented to support the entrepreneurship activities. The principal objective is to help premature companies to grow and become independent, strengthen their offer, help them launching their business. For instance, in Europe, the incubation and mentoring offer drastically increased over the last years aiming to produce successful firms that will leave the incubator financially viable and independent. How do start-ups make use of these structures to actually build their identity, shape their routines? With this purpose our research seeks to understand which role the corresponding ecosystems play on the start up’s collective identity creation, definition of its routines and whether and how the ecosystem along with founders ‘strengthen’ ventures identity.
    Keywords: Firm's identity, routines, start-up, entrepreneurship, innovation
    Date: 2016–07–07
  25. By: Ron Boschma
    Abstract: This chapter aims to sketch a short history of the differentiated knowledge base (DKB) literature that has been initiated and pioneered by Bjorn Asheim. In its formative years, the DKB approach described three knowledge bases and explored the nature of knowledge sourcing and its geographical extent within each knowledge base. We identify seven claims proposed by DKB scholars concerning the geography of knowledge bases. Lately, DKB 1.0 has been challenged on several grounds. In recent years, a second generation of DKB literature, dubbed as DKB 2.0, has emerged, becoming more tightly connected to the evolutionary approach in economic geography. DKB 2.0 takes a combinatorial approach to innovation and links it to evolutionary concepts like related variety and proximity. Its prime focus is on identifying combinations between knowledge bases and, to an increasing extent, combinations within knowledge bases, and assessing whether these combinations enhance innovative performance. As DKB 2.0 is still in an embryonic stage, we identify promising avenues for future research, inspired by evolutionary thinking.
    Date: 2017–09
  26. By: Michael Hamwi (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA)); Jérémy Legardeur (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA)); Iban Lizarralde (ESTIA Recherche - Ecole Supérieure des Technologies Industrielles Avancées (ESTIA))
    Abstract: This paper focuses on Business Model innovation practices within the specific field of energy transition in the household sector. In recent years the value chain between the stakeholders involved in this field has been modified due to recent technological changes, which poses a threat for current companies and an opportunity for insiders. This research work has been carried out within the Greenplay project, which is an EU funded Horizon H2020 project. This project aims to develop new business models that reduce energy consumption in the household sector and can be successfully implemented. In this paper, we present a framework based on intersection of two group of categories. The first one is issued from energy transition presented by consumer behaviour, energy efficiency and renewable energy and the second is abstracted from Product-Service System (PSS). The methodology is based on defining the characteristics of a Product Service System in general followed by Smart PSS (integrated smart product and e-service) qualities and the current ESCo (Energy Service Company) business model characteristics. Finally based on aforementioned analysis on energy transition and Product-Service System, we discuss a set of Servicizing energy business models for energy transition in household sector. The main objective is to shed light on the ability of designing new business models (BMs), in household sector, as a result of integrating PSS with the emerging trends for sustainable energy. In this study, a systematic literature review is conducted related to energy business models. Furthermore, the proposed framework is a crossing classification based on criteria concerning PSS and various energy production and consumption BM. Finally the characteristics of an innovative business model for energy transition in household sector can be transposed to other sectors, mainly those who deal with Product Service System. In the second phase of the Greenplay project the authors will apply the proposed framework to the use cases identified in the project: households that are able to fine-tune their energy use thanks to smart meters that provide free access to data in real-time. The goal is to get feedback from researchers that have already implement innovative Business Models in this or other sector, as well as to discuss with researchers and practitioners that have analysed firms that have successfully innovated their business models. This feedback will allow us to adjust the framework before the experiment with the companies of the Greenplay project.
    Keywords: Product-Service System,Energy,Business models,Households,Energy transition
    Date: 2016–07–13
  27. By: Massimo Motta; Emanuele Tarantino
    Abstract: It has been suggested that mergers, by increasing concentration, raise incentives to invest and hence are pro-competitive. To study the effects of mergers, we rewrite a game with simultaneous price and cost-reducing investment choices as one where firms only choose prices, and make use of aggregative game theory. We find no support for that claim: absent efficiency gains, the merger lowers total investments and consumer surplus. Only if it entails sufficient efficiency gains, will it be pro-competitive. We also show there exist classes of models for which the results obtained with cost-reducing investments are equivalent to those with quality-enhancing investments.
    Keywords: Horizontal mergers, innovation, investments, network-sharing agreements, competition.
    JEL: K22 D43 L13 L41
    Date: 2017–08
  28. By: Carlo Gianelle (European Commission - JRC); Fabrizio Guzzo (European Commission - JRC); Krzysztof Mieszkowski (European Commission - JRC)
    Abstract: The goal of this paper is to assess how and to what extent resources under Thematic Objective 1 (TO1) of national and regional Operational Programmes for the European Regional Development Fund (ERDF) were allocated to operations falling within the innovation and research priorities set in the respective national and regional smart specialisation strategies (S3) during the first phase of the 2014-2020 programming period. The analysis is based on information drawn from calls for proposals launched under 46 Operational Programmes in Italy, Poland, Portugal, Czech Republic, Hungary, Lithuania and Slovenia and published by 31 December 2016. In particular, the study assesses the coherence of calls with S3 priorities; it also looks at the concentration of resources on priorities by calculating the share of ERDF-TO1 funding made available to S3-related projects through calls. Moreover, the analysis explores the range of S3 priorities tackled by individual calls for projects, identifies the policy instruments utilised and the types of beneficiaries targeted by those instruments. The examination reveals that the S3 approach is being translated into practice from a formal point of view. In most of the examined calls, S3 alignment is a binding eligibility condition for funding. Nearly the total amount of the ERDF-TO1 resources made available through calls supports project proposals falling exclusively within S3 priority areas. This could be interpreted as positive evidence of improved prioritisation and more strategic spending patterns, yet results should be taken with caution given the relatively short time-span of the analysis.
    Keywords: regional innovation policy, smart specialisation, prioritisation, EU Cohesion policy
    JEL: O25 O30 R12 R58
    Date: 2017–08

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