|
on Innovation |
| By: | Francesco Crespi; Dario Guarascio |
| Abstract: | This article analyzes, empirically, the link between public procurement and innovation activities by taking into account the moderating effect played by import penetration on public procurement. Using industry-level information on patent applications for 24 countries over the period 1995-2012, we test the impact of public procurement on innovation activities and whether and in which direction import penetration on public procurement impacts on patenting. The econometric analysis relies on Poisson regression techniques aiming to investigate the correlation between patent counts, supply as well as demand-side determinants, controlling for country and sector heterogeneity. The obtained results confirm our main hypotheses. The dynamics of patenting is positively affected by the public procurement while a high degree of import penetration reduces the innovation enhancing effect exerted by public demand. Our results suggest that public demand may represent an effective tool for industrial policy to stimulate innovative activities, to shape the transformation of production systems and to foster industrial renewal. Moreover, the empirical evidence shows that the strategy regarding the degree of openness in public procurement towards non-domestic firms is a crucial policy choice capable of affecting the innovative potential of public demand. |
| Keywords: | Public procurement, innovation policy, demand-side innovation policy |
| Date: | 2017–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2017/20&r=ino |
| By: | Xiuli Sun; Haizheng Li; Vivek Ghosal |
| Abstract: | Understanding the factors that may produce a sustained rate of innovation is important for promoting economic development and growth. In this paper, we examine the role of human capital in firms’ innovation by using a large sample of manufacturing firms from China. We use two firm-level datasets from China: one from metropolitan cities, and one from provincial small and medium sized cities. Patent applications are used as the measure of innovation. Human capital indicators used include skilled human capital (number of highly educated workers), general manager’s education and tenure, and management team’s education and age. We find that skilled human capital has a significant positive effect on firms’ innovation, while the management team’s age has a significant negative effect on innovation. The General Manager’s tenure plays a significant positive role in firm innovation in metropolitan cities, while it is the General Manager’s education that has a positive and significant effect on firms’ innovation in small and middle cities. We also find that the effect of R&D on patents is insignificant for firms in large cities, but it is positive and significant in the smaller and medium sized cities. We conclude by noting some policy issues for promoting innovation in developing economies. |
| Keywords: | human capital, education, innovation, patents, R&D, economic development, Asia, China |
| JEL: | J24 I25 D21 D22 L13 O32 O33 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6370&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 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6574&r=ino |
| By: | Roud Vitaliy (National Research University Higher School of Economics); Valeriya Vlasova (National Research University Higher School of Economics) |
| Abstract: | This paper develops an integrated framework to examine the determinants of industry-science cooperation in the general process of developing innovation. Based on the literature review and using firm-level data on innovation strategies of 805 manufacturing enterprises in Russia we investigate what are the incentives to firms (1) to cooperate with universities and R&D organizations and (2) to choose a particular mode of interaction that ranges from purchasing S&T services to a full scale original R&D aimed at creating new-to-market innovation. We suggest that a broad range of intramural and external determinants, including competition regime, absorptive capacity, technological opportunities, appropriability conditions, public support, as well as barriers to the practical application of R&D results influence the firm’s decision on cooperation with knowledge producers. The findings indicate that the scale of industry-science linkages in Russian manufacturing is limited and generally hampered by low propensity of business to the R&D-based innovation strategies |
| Keywords: | Science-industry cooperation; Innovation strategy; Firm-level; Manufacturing; Russia |
| JEL: | D22 D83 L2 O31 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:75sti2017&r=ino |
| By: | Dolores Añón Higón (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).); Juan A. Mañez (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).); Juan A. Sanchis (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).) |
| Abstract: | The aim of this study is to ascertain the impact of two firm innovation strategies – namely, intramural R&D and external R&D, including either contracted R&D and import of technology, upon total factor productivity (TFP). In order to evaluate these effects we consider robust estimates of TFP through a GMM approach where we account for the diverse innovation strategies carried out by firms (intramural only, external only or both). Using data for Spanish manufacturing firms drawn from the Encuesta de Estrategias Empresariales (ESEE), over the period 1991-2014, our results suggest that inhouse R&D and external R&D are complementary strategies only for large fims in high tech sectors. For the rest of firms, both strategies turn out to be substitutive. |
| Keywords: | intramural R&D, external R&D, complementarity, substitutability, TFP |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1706&r=ino |
| By: | Pietro Moncada Paternò Castello |
| Abstract: | The Thesis is composed by three complementary research investigations on the economic and policy aspects of EU corporate R&D.Collectively, the work first reviews the theoretical and empirical literature of corporate R&D intensity decomposition; it then investigates the EU R&D intensity and its decomposition elements comparatively with most closed competitors and with emerging economies over the period 2005-2013. Finally, it inspects further some key aspects that can be associated to the EU R&D intensity gap: sectoral dynamics and the resulting sectoral and technological specialisations as well as the drivers for R&D investment growth across sectors and firms' age groups of top R&D investing firms over time. These studies also address the possible policy implications that derive from their outcomes.The investigations rely on literature as well as on company data, mainly from nine editions (2006-2014) of the EU Industrial R&D Investment Scoreboard. For analytical purposes they use literature review, meta-analysis, descriptive statistics, R&D intensity decomposition computational approach, Manhattan distance and Technological Revealed Comparative Advantage metrics, and a multinominal logit regression model. The results of these three research works are novel in several aspects. It indicates that literature results on R&D intensity decomposition differ because of data and methodological heterogeneities, and that the structural cause is the main determinant of EU R&D intensity gap if sector compositions of the countries are considered. It inspects how the use of different data sources and analytical methods impact differently on R&D intensity decomposition results, and what the analytical and policy implications are.The empirical research results of this Thesis confirm the structural nature of the EU R&D intensity gap. In the last decade the gap between the EU and the USA has widened, whereas the EU gap with Japan has remained relatively stable. In contrast, the emerging countries' R&D intensity gap compared to the EU has remained relatively stable, while companies from emerging economies are considerably reducing such gap. Besides, as novel contribution to the state of the art of the literature, this Thesis uncovers the differences between EU and US by inspecting which sectors, countries and firms are more accountable for the aggregate R&D intensity performance of these two economies, and it finds a high heterogeneity of firms' R&D intensity within sectors. Furthermore, it shows that there is a bigger population of both larger and smaller US top R&D firms which invest more strongly in R&D than competitors, and that the global R&D investment is concentrated in a few firms, countries and industries. Finally, the research founds a slightly higher EU R&D shift over sectors compared to the US, but not strongly enough towards high-tech sectors. Also, the EU has an even broader technological specialisation than its already broad industrial R&D sector specialisation, while the USA leads by number of technological fields belonging mostly to the industrial R&D sectors of its specialisation. Furthermore, the EU has been better able than the USA and Japan to maintain its world share of R&D investment even during the years of economic and financial crisis. Lastly, the study also indicates that firms make a complementary use of capital expenditures and R&D intensity for their R&D investment growth strategies and it reveals that there are differences in their use between firms' age classes across sectors. Overall, the main results of the Thesis suggest that to reach a more positive R&D dynamics and boost its competitiveness, the EU should adapt its industrial structure and increase the weight of high R&D intensive sectors. A focus on creating the conditions for firm creation and growth in new-emerging innovative sectors is advised together with favouring the exploitation of the full capacity of EU leading - but mature - sectors to also absorb high-technology from other sectors. |
| Keywords: | Corporate R&D intensity decomposition; EU corporate R&D intensity gap; Top world R&D investors; Corporate R&D distribution; Sectors' dynamics; Sector specialisation; Technological specialisation; R&D investment growth; EU industry; EU R&D policy; Literature survey; Empirical analysis |
| Date: | 2017–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/258776&r=ino |
| By: | Line Louah; Marjolein Visser; Alice Blaimont; Charles De Cannière |
| Abstract: | Agroforestry (AF) is promoted as an environmentally sound farming practice to address the pressing challenges of meeting a rising global demand for agricultural commodities while conserving biodiversity. Although AF played an important role in European farming in the past, reintroducing the planting of trees in fields is a radical innovation in the modern context, and is, initially, a researcher's idea. This paper investigates stakeholders’ perspectives on modern AF in two contrasting sub-regions of southern Belgium (Wallonia). Using Q methodology to identify patterns of subjectivity, we found that the conversation splits into three idealised-types of discourse that reflect different farming styles. Only one of the three discourses is in favour of AF. The results indicate that the paradigm type (holism vs. reductionism) underlying each discourse is a major factor that influences stakeholders’ position on AF. The main barriers hampering mainstreaming of AF seem cognitive in nature, and are related to the level of ecological knowledge. By exploring the ‘cognitive unlocking process’, our Q methodological study led to the identification of two readily available strategies to scale up AF: (1) ecological education and (2) social learning within multi-actor innovation networks. Such networks could foster on-farm innovation development and research, in which the farmer is an expert at the same level as the researcher. While this study focuses on the development of AF, the findings could be extrapolated to other agroecological innovations. |
| Keywords: | Agroecology; Agroforestry; Qmethodology; Stakeholder perception |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/258841&r=ino |
| By: | Mario Coccia |
| Abstract: | This study proposes the concept of disruptive firms: they are firms with market leadership that deliberate introduce new and improved generations of durable goods that destroy, directly or indirectly, similar products present in markets in order to support their competitive advantage and/or market leadership. These disruptive firms support technological and industrial change and induce consumers to buy new products to adapt to new socioeconomic environment. In particular, disruptive firms generate and spread path-breaking innovations in order to achieve and sustain the goal of a (temporary) profit monopoly. This organizational behaviour and strategy of disruptive firms support technological change. This study can be useful for bringing a new perspective to explain and generalize one of the determinants that generates technological and industrial change. Overall, then this study suggests that one of the general sources of technological change is due to disruptive firms (subjects), rather than disruptive technologies (objects), that generate market shifts in a Schumpeterian world of innovation-based competition. |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1710.06132&r=ino |
| By: | Wolfgang Kerber (University of Marburg) |
| Abstract: | The digital revolution has reinvigorated the discussion about the problem how to consider innovation in the application of competition law. This raises difficult questions about the relationship between competition and innovation as well as what kind of assessment concepts competition authorities should use for investigating innovation effects, e.g., in merger cases. This paper, on one hand, reviews briefly our economic knowledge about competition and innovation, and claims that it is necessary to go beyond the limited insights that can be gained from industrial economics research about innovation (Schumpeter vs. Arrow discussion), and take into account much more insights from innovation research, evolutionary innovation economics, and business and management studies. On the other hand, it is also necessary to develop much more innovation-specific assessment concepts in competition law (beyond the traditional product market concept). Using the example of assessing innovation competition in merger cases, this article suggests to analyze much more systematically the resources (specialized assets) that are necessary for innovation. This concept is directly linked to the new discussion about the Dow/DuPont case in the EU and about data as necessary resource for (data-driven) innovation. |
| Keywords: | Competition, innovation, competition law, merger control, innovation market |
| JEL: | K21 L12 L41 O31 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201742&r=ino |
| By: | Natalia Shmatko (National Research University Higher School of Economics); Alina Lavrynenko (National Research University Higher School of Economics); Dirk Meissner (National Research University Higher School of Economics) |
| Abstract: | The paper explores the composition of researchers' skillsets in an innovation-driven environment from the perspective of employers. The authors analyze the relation between skills requirements described in job advertisements for researchers and the presumed innovation culture of companies. The study is based on job advertisements content analysis and in-depth interviews with chiefs of research and development companies. It uses biotechnology industry as an example as it is one of the fastest-growing and innovation-driven sectors globally. Authors used data from Russian, as well as Canadian, UK and USA job search engines to consider international context. Empirical findings demonstrated that skills composition stress on hard skills more frequently and detailed, while soft skills are often a "must have without saying". The same is for digital skills that are assumed to be essential in high-tech companies globally and therefore not fully specified in job ads. There is a certain mismatch between skills presented in the ads and articulated in the interviews as employers tend to demonstrate innovation-friendly company culture for possible applicants. The present paper enriches literature on skills assessment, giving comprehensive lists of biotech skills in-demand divided into soft and hard categories. In addition, it provides the new insight into employee skills articulated by the companies as a strong element of organizational innovation climate |
| Keywords: | knowledge economy, open innovation, company innovation culture, biotechnology, skills |
| JEL: | J24 L65 M14 M51 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:74sti2017&r=ino |
| By: | Jan Fagerberg (Centre for Technology, Innovation and Culture (TIK), University of Oslo & Department of Business and Management, Aalborg University); Bengt-Åke Lundvall (IKE, Department of Business and Management, Aalborg University); Martin Srholec (Center for Economic Research and Graduate Education-Economics Institute (CERGE-EI), Charles University, Prague and Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE), Lund University) |
| Abstract: | This paper deals with the role of global value chains (GVC) and other aspects of “openness” for economic development. To analyse the issue a comprehensive framework that allows for the inclusion of a range of relevant factors including not only different form of openness, such as GVC participation, but also technological and social capabilities, is developed. The analysis is based on evidence from 125 countries, including many developing nations, over the period 1997-2013. It is shown that economic growth reflects the strength of the national innovation system and that GVC participation is not the potent driver of economic growth that tends to be assumed. |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20171012&r=ino |
| By: | Eduardo Olaberría (OECD) |
| Abstract: | Over the past decade, sound macroeconomic policies and an improved business environment have helped generate relatively strong GDP growth. Investments in infrastructure are improving connectivity and trade integration has been facilitated by lower tariffs. Simplification in opening of businesses, getting construction permits, registering property and payment of taxes improved the ease of doing business. Nevertheless, labour productivity remains low with large differences between firms and regions, and the contribution of technological progress to growth has been negative in recent years. Low productivity growth reflects poor educational and managerial quality, still large infrastructure gaps, low investment in innovation and R&D and stringent regulations in some sectors. To raise productivity growth Colombia should focus on some key areas. First, reverse the drop in public investment and reduce high transport and logistics costs. Second, intensify trade links and participation in GVCs, by further improving trade facilitation, to encourage firms to adopt the best technologies and know how. Third, create better incentives for firms to invest on R&D, and strengthen the links between the business sector and research institutions to foster innovation. Fourth, increase competition and reduce regulation in specific sectors to promote investment and facilitate the allocation of resources towards most productive firms. And fifth, upgrade the quality of education to develop better skills and professional management to enhance the creation and diffusion of new technologies. In 2016, the government established the National Policy for Productive Development to address the impediments to increased productivity. This Working Paper relates to the 2017 OECD Economic Survey of Colombia (www.oecd.org/eco/surveys/economic-surve y-colombia.htm) |
| Keywords: | competition, global value chains, international trade, misallocation, productivity |
| JEL: | F14 F23 L16 O24 |
| Date: | 2017–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1424-en&r=ino |
| By: | Asjad NAQVI (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria); Engelbert STOCKHAMMER (Kingston University Dept. of Economics Penrhyn Road Kingston upon Thames Surrey KT1 2EE UK) |
| Abstract: | This paper presents a post-Keynesian ecological macro model that combines three strands of literature: the directed technological change mechanism developed in mainstream endogenous growth theory models, the ecological economic literature which highlights the role of green innovation and material flows, and the post-Keynesian school which provides a framework to deal with the demand side of the economy, financial flows, and inter- and intra-sectoral behavioral interactions. The model is stock-flow consistent and introduces research and development (R&D) as a component of GDP funded by private rm investment and public expenditure. The economy uses three complimentary inputs - Labor, Capital, and (non-renewable) Resources. Input productivities depend on R&D expenditures, which are determined by relative changes in their respective prices. Two policy experiments are tested; a Resource tax increase, and an increase in the share of public R&D on Resources. Model results show that policy instruments that are continually increased over a long-time horizon have better chances of achieving a "green" transition than one-off climate policy shocks to the system, that primarily have a short-run affect. |
| Keywords: | directed technological change, research and development, green transition, ecological economics,post- keynesian ecomomics, stock-flow consistency |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwiee:ieep16&r=ino |
| By: | Ehrlich, Isaac (University at Buffalo, SUNY); Li, Dunli (University College London); Liu, Zhiqiang (University at Buffalo, SUNY) |
| Abstract: | We model investment in entrepreneurial human capital (EHC) – the representative enterprise's share of production capacity allocated to investment in innovative industrial and commercial knowledge – as a distinct channel through which firm-specific human capital drives endogenous growth. Our model suggests that institutional factors supporting free markets for goods and ideas, and higher educational attainments of entrepreneurs and workers, enhance endogenous economic growth by augmenting the efficiency of investment in EHC rather than exclusively by themselves. We test these implications using data from Global Entrepreneurship Monitor's Adult Population Survey of 63 countries over 2002–2010 and find robust support for these hypotheses. |
| Keywords: | innovation, entrepreneurship, the market for ideas, human capital, endogenous growth |
| JEL: | L26 O31 O43 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11048&r=ino |
| By: | Naqvi, Syed Ali Asjad; Engelbert, Stockhammer |
| Abstract: | This paper presents a post-Keynesian ecological macro model that combines three strands of literature: the directed technological change mechanism developed in mainstream endogenous growth theory models, the ecological economic literature which highlights the role of green innovation and material ows, and the post-Keynesian school which provides a framework to deal with the demand side of the economy, nancial ows, and inter- and intra-sectoral behavioral interactions. The model is stock-fow consistent and introduces research and development (R&D) as a component of GDP funded by private rm investment and public expenditure. The economy uses three complimentary inputs - Labor, Capital, and (non-renewable) Resources. Input productivities depend on R&D expenditures, which are determined by relative changes in their respective prices. Two policy experiments are tested; a Resource tax increase, and an increase in the share of public R&D on Resources. Model results show that policy instruments that are continually increased over a long-time horizon have better chances of achieving a "green" transition than one-off climate policy shocks to the system, that primarily have a short-run affect. |
| Keywords: | directed technological change, research and development, green transition, ecological economics,post- keynesian ecomomics, stock-flow consistency |
| Date: | 2017–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus045:5809&r=ino |
| By: | Luca Marcolin (OECD); Mariagrazia Squicciarini (OECD) |
| Abstract: | This paper synthesises the main policy implications of OECD work focusing on the interplay between participation and positioning in global value chains (GVCs), employment demand and supply and workforce’s skills endowment. They relate to: the way innovation, technology and participation in GVCs shape employment in routine intensive and non-routine jobs; the relationship between participation in GVCs and polarisation of employment; the way the skill composition of a country’s workforce – both the type of skills and their distribution – shapes specialisation and positioning along GVCs; and the complementarities emerging between GVC participation and investment in knowledge-based capital, especially organisational capital and ICT. |
| Date: | 2017–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:44-en&r=ino |
| By: | Grüning, Patrick |
| Abstract: | Empirical evidence suggests that investments in research and development (R&D) by older and larger firms are more spread out internationally than R&D investments by younger and smaller firms. In this paper, I explore the quantitative implications of this type of heterogeneity by assuming that incumbents, i.e. current monopolists engaging in incremental innovation, have a higher degree of internationalization in their R&D technologies than entrants, i.e. new firms engaging in radical innovation, in a two-country endogenous growth general equilibrium model. In particular, this assumption allows the model to break the perfect correlation between incumbents' and entrants' innovation probabilities and to match the empirical counterpart exactly. |
| Keywords: | Heterogeneous innovation,Technology spillover,Endogenous growth,Creative destruction,International finance |
| JEL: | E22 F31 G12 O30 O41 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:185&r=ino |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201705&r=ino |
| By: | Tedi Skiti (Fox School of Business, Temple University) |
| Abstract: | In this article, I present causal effects of institutional entry barriers to new firms on incumbents’ technological innovation. In particular, I investigate the effect of entry barriers to municipal providers on incumbents’ technology deployment in the U.S. broadband industry. I use a spatial regression discontinuity design for private incumbents’ investment behavior and different entry regimes as sharp cutoffs for municipal entry threat. I collect and combine unique firm-level data on cable investment decisions and state-level data on legal entry barriers. I find that in markets with these entry barriers incumbents invest less in new technologies. Specifically, I find that the local entry barriers lead to a 20% lower technology adoption rate by cable incumbents because of reduced entry threat. These results imply that institutions that restrict entry of new firms can lead to significantly decreased technological innovation and lower internet quality across local markets, not only by deterring new firms but also by altering incumbents’ strategic investment in broadband networks. |
| Keywords: | Innovation, Entry Barriers, Broadband, Municipal, Spatial Discontinuity |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:1711&r=ino |
| By: | Sara Amoroso (European Commission - JRC); David B. Audretsch (Indiana University); Albert N. Link (Bryan School of Business and Economics University of North Carolina-Greensboro) |
| Abstract: | The purpose of this paper is to explore the relationship between an entrepreneur’s experience and education and his/her reliance on alternative sources of knowledge for exploring new business opportunities. The extant literature that is at the crossroads between sources of knowledge and the experiential and intellectual base of an entrepreneur (i.e., dimensions of his/her human capital) suggests that it is through experience and through education that an entrepreneur obtains knowledge. Using information on a sample of high-tech manufacturing firms across 10 European countries, we explore heterogeneities in the influence of experience, age, and education of the firm’s primary founder on the perceived importance of (i.e., use of) alternative sources of knowledge. We find that the association of these characteristics differs significantly across sources of knowledge, and across European regions. Education is positively related to the importance of knowledge from research institutes and internal know-how, while age is negatively related to the importance of research institutes and positively related to publications and conferences. On the one hand, in South/East European countries, the importance of internal know-how is positively associated with age and education, but negatively associated with experience. On the other hand, the characteristics of primary founders of North/West European firms are more linked to the importance of the participation to funded research programmes. This source of knowledge is related positively with age and education and negatively with experience. |
| Keywords: | Entrepreneurship; Knowledge; Experience; Education; Human Capital |
| JEL: | L26 J24 D83 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201703&r=ino |
| By: | Luciano Fanti; Luca Gori |
| Abstract: | This article studies the effects of R&D investments in product innovation in a game-theoretic two-tier model where an upstream monopolist and downstream duopolists negotiate over the terms of a non-linear two-part tariff vertical contract. |
| Keywords: | Duopoly; Product innovation; Two-part tariffs |
| JEL: | D43 L13 L14 |
| Date: | 2017–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2017/222&r=ino |
| By: | Cesare Righi; Timothy Simcoe |
| Abstract: | We study the matching of patent applications to examiners at the U.S. Patent and Trademark Office. Using test statistics originally developed to identify industry agglomeration, we find strong evidence that examiners specialize in particular technologies, even within relatively homogeneous art units. Examiner specialization is more pronounced in the biotechnology and chemistry fields, and less in computers and software. Evidence of specialization becomes weaker, but does not completely disappear, if we condition on technology sub-classes. There is no evidence that certain examiners specialize in applications that have greater importance or broader claims. More specialized examiners have a lower grant rate and produce a larger narrowing of claim-scope during the examination process. We discuss implications for instrumental variables based on examiner characteristics. |
| JEL: | H83 K11 L98 O3 O34 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23913&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:201704&r=ino |
| By: | Geovanny Castro Aristizabal; Luis Eduardo Giron Cruz; Daniel Soto Cuadros (Faculty of Economics and Management, Pontificia Universidad Javeriana Cali) |
| Abstract: | The present study finds the main factors that influence entrepreneurship in Colombia, Chile and Ecuador, based on data from the Global Entrepreneurship Monitor -GEM, 2014- and the Entrepreneurship Activity Rate -TEA-. For this, initially, the multivariate method of Multiple Correspondence Analysis was used. Subsequently, a binomial logit model was estimated for each of the countries. It was found that both formal and informal human capital are determinant to generate entrepreneurship by opportunity. Likewise, experience, empirical knowledge, gender and age. Finally, by including in the model the technological level of the sector (medium-high), it was estimated that Chile has a greater impact on entrepreneurship. given the current situation of diminishing tensions with the US government. |
| Keywords: | Cuba, Entrepreneurship opportunity, Logit models, Multiple Correspondence Analysis, Human Capital, Colombia, Ecuador, Chile. |
| JEL: | J24 L26 Y40 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ddt:wpaper:29&r=ino |
| By: | Stefano Comino; Alberto Galasso; Clara Graziano |
| Abstract: | What factors affect the diffusion of new economic institutions? This paper examines this question exploiting the introduction of the first regularized patent system which appeared in the Venetian Republic in 1474. We begin by developing a model which links patenting activity of craft guilds with provisions in their statutes. The model predicts that guild statutes that are more effective at preventing outsider’s entry and at mitigating price competition lead to less patenting. We test this prediction on a new dataset which combines detailed information on craft guilds and patents in the Venetian Republic during the Renaissance. We find a negative association between patenting activity and guild statutory norms which strongly restrict entry and price competition. We show that guilds which originated from medieval religious confraternities were more likely to regulate entry and competition, and that the effect on patenting is robust to instrumenting guild statutes with their quasi-exogenous religious origin. We also find that patenting was more widespread among guilds geographically distant from Venice, and among guilds in cities with lower political connection which we measure exploiting a new database on noble families and their marriages with members of the great council. Our analysis suggests that local economic and political conditions may have a substantial impact on the diffusion of new economic institutions. |
| Keywords: | patents, competition, guilds, institutions |
| JEL: | O33 O34 K23 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6612&r=ino |
| By: | Luciano Fanti; Luca Gori |
| Abstract: | This article revisits the works of Lambertini and Rossini (1998) and Bernhofen and Bernhofen (1999) and also extends the analysis to the effects of product innovation in Cournot and Bertrand duopolies with sales delegation. |
| Keywords: | Duopoly; Product innovation; Sales delegation |
| JEL: | D43 J53 L1 |
| Date: | 2017–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2017/223&r=ino |
| By: | Abhiroop Mukherjee (Associate Professor, Department of Finance, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology); Alminas Zaldokas (Assistant Professor, Department of Economics, Hong Kong University of Science and Technology; Institute for Emerging Market Studies, Hong Kong University of Science and Technology) |
| Abstract: | Abhiroop Mukherjee and Alminas Zaldokas, HKUST IEMS Faculty Associates, examined how tax changes influence patenting activity in corporations, and found that tax increases would likely lead to lower innovation, but it would not be easy to reverse these losses quickly by cutting taxes back later. |
| Keywords: | corporate governance, development, emerging market and developing economies, emerging markets, innovation, patents, R&D, research and development |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:hku:briefs:201616&r=ino |
| By: | Alex Coad; Nanditha Mathew; Emanuele Pugliese |
| Abstract: | We investigate the effects of R&D investment on performance outcomes (sales growth and relative profitability) for Indian manufacturing firms. Previous research shows contradictory results - while some studies find a positive effect of R&D on firm performance, some find that firms investing in R&D do not perform significantly better, in some cases, even perform worse than their non-investing counterparts. We claim that the effects of R&D on performance are often mis-specified: The contradictory results are likely due to 1) inverse causality, i.e., firms invest in R&D as a function of sales growth and/or 2) a bias caused by censored data (i.e. R&D investment has a lower bound at zero). We apply endogenous switching regression to tackle the issue of selection and censored data, and the results we observe are sharp: firms investing in R&D would have had less growth and less relative profitability if they had not done so. Interestingly, firms that did not invest in R&D would not have benefited had they done so. |
| Keywords: | R&D investment, Firm performance, Endogenous switching |
| Date: | 2017–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2017/21&r=ino |
| By: | Tiago Fonseca (World Maritime University; CEG-IST, Instituto Superior Técnico, Universidade de Lisboa); Francisco Lima (CEG-IST, Instituto Superior Técnico, Universidade de Lisboa); Sonia C. Pereira (Barnard College, Columbia University and Columbia School of Social Work) |
| Abstract: | As job markets have been polarizing, firms have been changing their labor inputs.By using matched employer-employee data for Portugal, we examine whether labor market polarization has occurred within or across firms and how labor input upgrades have contributed to overall productivity growth. We develop a firm taxonomy based on worker’s occupational data. Firms can be focused on one task – Abstract, Manual or Routine – on a combination of tasks, or none. Results show that Abstract firms are the most productive and their share has increased over time. Manual firms, the least productive, have had a stable share throughout the period. Routine firms have seen their share decline over time. The dynamic decomposition of the estimated productivity reveal that productivity growth is propelled by increased market shares of the most productive incumbents and exiting of the least productive, especially for Abstract firms. Notwithstanding these productivity growth drivers, they fail to avert the productivity stagnation observed in Portugal between 2004 and 2009 due to the overall decline in productivity of incumbent firms, especially Routine. We discuss the policy implications of our results which are relevant to other European economies also lagging behind in terms of knowledge and innovation capabilities. |
| Keywords: | Taxonomy, productivity, routinization, technological change, polarization |
| JEL: | D24 L23 O33 |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:mde:wpaper:0080&r=ino |
| By: | Alex Coad (CENTRUM Católica Graduate Business School, Pontificia Universidad Católica del Perú, Lima, Perú); Antonio Vezzani (European Commission - JRC) |
| Abstract: | Many industrialized countries in Europe and North America have experienced a steady decline in the manufacturing sector over the last few decades. Amid growing concerns that outsourcing and offshoring have destabilized European economies, policymakers have suggested that a large manufacturing sector can: i) boost R&D, ii) encourage exporting, and iii) raise productivity. We examine these claims. Non-parametric plots and regressions show a robust positive association between the manufacturing sector and Business R&D expenditures (BERD), while the relationship between manufacturing and exports or productivity is more elusive. Finally, we explore whether a manufacturing sector target of 20% of value-added will help reach a BERD target of 3% of GDP. |
| Keywords: | Manufacturing sector, R&D, exporting, productivity, industrial policy, industrial renaissance |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:201706&r=ino |