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on Innovation |
| By: | Ugo Rizzo (Department of Economics and Management, University of Ferrara, Italy); Nicolò Barbieri (Department of Economics and Management, University of Ferrara, Italy); Laura Ramaciotti (Department of Economics and Management, University of Ferrara, Italy); Demian Iannantuono (Department of Economics, University of Parma, Italy) |
| Abstract: | The paper investigates the relationship between radical technological development and public research. This study draws on the theory of recombinant innovation, and builds on two newly developed indicators of radicalness (Verhoeven et al., 2016) to analyse UK patents filed at the European Patent Office. It assesses whether the proximity of the invention to public research is related to a higher probability of the invention being radical. The results show that, depending on the type of novelty embodied by the radical invention (novelty in recombinant rather than novelty in technological origin), different forms of public research relate to the radicalness of invention in different ways. We found also that these relationships are heterogeneous across technological sectors. Policy implications are derived. |
| Keywords: | Radical invention, novelty, patent, recombination, public research |
| JEL: | O30 O31 O34 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0817&r=ino |
| By: | Koehler, Mila; Peters, Bettina |
| Abstract: | Little is known about whether and to what extent the outcome of subsidized and non-subsidized R&D projects differ. In this paper we exploit a novel dataset of patent applications filed in Germany between 1995-2005, which allows us to identify if a patent application stems from a subsidized project or not. We use a variety of patent indicators to elucidate to what extent successful subsidized and non-subsidized R&D projects within the same firm differ. Results show that patent applications from subsidized R&D projects have a higher private value, are more often co-applied, more general, but less original, and have larger inventor teams when compared to all other patent applications filed by the same firms. These differences seem to reflect that thematic R&D programs aim to support collaborative R&D projects that have an immediate economic utilization of results. |
| Keywords: | R&D,subsidies,patents,evaluation,project-level analysis,within firm comparison |
| JEL: | H25 H50 O31 O34 O38 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17042&r=ino |
| By: | Asjad Naqvi; 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 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 firm 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 effect. |
| Keywords: | directed technological change, research and development, green transition, ecological economics, post-Keynesian economics, stock-flow consistency |
| JEL: | E12 O33 Q57 |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1714&r=ino |
| By: | Di Ubaldo, Mattia; Siedschlag, Iulia |
| Abstract: | This paper examines the relationship between investment in innovation and productivity across firms in Ireland. We estimate a structural model using information from three linked micro data sets over the period 2005-2012 and identify the relationships between investment in innovation, innovation outputs and productivity. Our results indicate that innovation is positively linked to productivity. This result holds for all types of innovation and for both R&D and non-R&D expenditures. The innovation-related productivity gains range from 16.2 per cent to 35.4 per cent. The strongest link between innovation and productivity is found for firms with R&D spending and with product innovation. |
| Date: | 2017–09 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp571&r=ino |
| By: | Martin Backfisch (Baden-Wuerttemberg Cooperative State University Center for Advanced Studies and Philipps-Universität Marburg) |
| Abstract: | In the context of the ongoing debate about an innovation crisis in the pharmaceutical industry, we study the success rates of pharmaceutical R&D projects as a measure of innovative productivity. The empirical literature suggests success rates have been decreasing during recent decades. We critically review this literature and only find few studies with a focus on the development of success rates over time. Further, the empirical analysis of success rates imposes difficulties with respect to methodological aspects like data censoring, the definition of success, and the range of firms included in the samples. These difficulties are generally not discussed by the literature. We therefore discuss these issues when critically reviewing the empirical studies and complement this discussion with own empirical results. While most other studies use samples containing a small number of firms and cover just a short time period, we use a broad sample containing firms of different sizes over an observation period of more than 20 years (1989-2010). Descriptive results suggest a declining success rate of pharmaceutical projects during recent years. Correcting for censored observations shows there has been a stabilization of success rates, but at a lower level than before. The main underlying reason for a lower success rate is the start of many more projects in more recent time periods. Results from hazard rate models even suggest there has only been a temporary drop in the success rate for projects between 1995 and 2002. |
| Keywords: | pharmaceutical R&D; drug development; innovation; success rates |
| JEL: | O32 L65 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:201746&r=ino |
| By: | Eric Bond; Benjamin Zissimos |
| Abstract: | We examine the Nash equilibria of a game where two national governments set patent breadth strategically. Broader patents make R&D more attractive, but the effect on static efficiency is nonmonotonic. In a North.South model, where only the North can innovate, harmonization of patent breadth lowers welfare relative to the Nash equilibrium. When both countries can innovate, harmonization toward narrower patent breadth may raise world welfare. |
| Keywords: | coordination, innovation, patent breadth, patent race, R&D |
| JEL: | F02 F13 O30 O31 O32 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6411&r=ino |
| By: | Michael Peneder (WIFO); Spyros Arvanitis; Christian Rammer; Tobias Stucki; Martin Wörter |
| Abstract: | For a large sample of enterprises in Germany, Austria and Switzerland (the "DACH" region) we study the impact of policy instruments such as energy-related taxes, subsidies, standards and negotiated agreements, or other regulations on the firm's ecological and economic performance. To identify the causal linkages, we build a system of twelve equations, first tracking the impacts of policy on the adoption of green energy technologies for distinct areas. In a second set of equations, we estimate the perceived impacts of adoption on the firm's energy efficiency, carbon emissions and competitiveness. The results confirm a differentiated pattern of channels through which policy can affect the firm's energy efficiency and carbon emissions, while having a neutral impact on its competitiveness. |
| Keywords: | Environmental policy, energy efficiency, technology adoption, innovation, Porter hypothesis |
| Date: | 2017–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2017:i:544&r=ino |
| By: | Jean-Marc Bourgeon; Margot Hovsepian |
| Abstract: | We analyze the adoption of green technology in a dynamic economy affected by random shocks where demand spillovers are the main driver of technological improvements. Firms’ beliefs and consumers’ anticipations drive the path of the economy. We derive the optimal policy of investment subsidy and the expected time and likelihood of reaching a targeted level of environmental quality under economic uncertainty. This allows us to estimate the value that should be given to the environment in order to avoid an environmental catastrophe as a function of the strength of spillover effects. |
| Keywords: | growth, sustainability, uncertainty |
| JEL: | E30 O30 O44 Q50 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6485&r=ino |
| By: | Francesco Aiello; Lidia Mannarino; Valeria Pupo (Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF, Università della Calabria) |
| Abstract: | This paper estimates the impact of R&D investments on the productivity of European family firms. For the period 2007-2009, we consider a Cobb-Douglas production function augmented by R&D intensity. Specifically, we address the questions of whether the R&D returns of family firms differ from that of non-family firms. Final outcomes suggest that, on average, non-family firms conducting R&D record a productivity gain of about 5-8 % compared to non-innovative firms. Additionally, the innovative family firms are about 6% lower compared to innovative non-family firms. Finally, the rate of return to R&D of family firms is lower than non-family firms. |
| Keywords: | Productivity, R&D returns, Family firms |
| JEL: | O30 L60 G34 |
| Date: | 2017–11 |
| URL: | http://d.repec.org/n?u=RePEc:clb:wpaper:201706&r=ino |
| By: | Böhm, Sebastian; Grossmann, Volker; Strulik, Holger |
| Abstract: | In this paper we set up an overlapping generations model of gerontological founded human aging that takes the interaction between R&D-driven medical progress and access to health care into account. We use the model to explore potential futures of human health and longevity. For the baseline policy scenario of health care access, the calibrated model predicts substantial future increases in health and life expectancy, associated with rising shares of health expenditure in GDP. Freezing the expenditure share at the 2020 level by rationing access to health care severely reduces potential gains in health, longevity and welfare. These losses are greatest in the long run due to reduced incentives for medical R&D. For example, rationing is predicted to reduce potential gains of life-expectancy at age 65 by about 4 years in the year 2050. Generally, and perhaps surprisingly, young individuals (i.e. those who save the most health care contributions through rationing) are predicted to suffer the greatest losses in terms of life expectancy and welfare. |
| Keywords: | Longevity,Medical R&D,Morbidity,Health Care,Rationing |
| JEL: | H50 I10 C60 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:325&r=ino |
| By: | Giulio Federico; Gregor Langus; Tommaso M. Valletti |
| Abstract: | We analyze the impact of a merger on firms’ incentives to innovate. We show that the merging parties always decrease their innovation efforts post-merger while the outsiders to the merger respond by increasing their effort. A merger tends to reduce overall innovation. Consumers are always worse off after a merger. Our model calls into question the applicability of the “inverted-U†relationship between innovation and competition to a merger setting. |
| Keywords: | innovation, R&D, mergers |
| JEL: | D43 G34 L40 O30 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_6539&r=ino |
| By: | Richard A. Hunt (Division of Economics and Business, Colorado School of Mines); Lauren L. Ortiz-Hunt (Dyson School of Applied Economics, Cornell University) |
| Abstract: | This paper is among the first to examine the interplay between deinstitutionalization and the rollout of novel business models by women entrepreneurs in developing countries. Much of the existing literature has examined the ways in which policy directives by formal institutions are the key drivers of entrepreneurial activity among women. Implicitly, this orientation suggests that the fate of women entrepreneurs is tied to, and cascades from, macro-level deinstitutionalization efforts, arising through changes in policies, laws and regulations championed at the highest levels. While this top-down view may intuitively be attractive, there are empirical reasons to doubt that the ``institutional cascading'' model accurately captures the underlying mechanisms of entrepreneurial activity among women. Taking a radically different tack, we develop and test an alternative, market-based perspective in which novel business models developed by women drive deinstitutionalization in bottom-up fashion. The context for our study involves detailed case histories of 95 women who started new businesses in the Middle East and North Africa (MENA), 1960 - 2012. Using a question-driven research design, our findings indicate that deinstitutionalization is strongly associated with the timing and substance of entrepreneurial action taken by MENA women. |
| Keywords: | Women Entrepreneurs, Business Models, Deinstitutionalization, Institutional Theory, Innovation, Middle East and North Africa |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:mns:wpaper:wp201706&r=ino |
| By: | Brady T. West; Joseph W. Sakshaug |
| Abstract: | The importance of correctly accounting for complex sampling features when generating finite population inferences based on complex sample survey data sets has now been clearly established in a variety of fields, including those in both statistical and non statistical domains. Unfortunately, recent studies of analytic error have suggested that many secondary analysts of survey data do not ultimately account for these sampling features when analyzing their data, for a variety of possible reasons (e.g., poor documentation, or a data producer may not provide the information in a publicuse data set). The research in this area has focused exclusively on analyses of household survey data, and individual respondents. No research to date has considered how analysts are approaching the data collected in establishment surveys, and whether published articles advancing science based on analyses of establishment behaviors and outcomes are correctly accounting for complex sampling features. This article presents alternative analyses of real data from the 2013 Business Research and Development and Innovation Survey (BRDIS), and shows that a failure to account for the complex design features of the sample underlying these data can lead to substantial differences in inferences about the target population of establishments for the BRDIS. |
| Keywords: | Survey Data Analysis, Complex Sample Surveys, Establishment Surveys, Weighted Estimation, Design Based Inference |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:17-62&r=ino |
| By: | Luis Castro Peñarrieta; Gustavo Canavire-Bacarreza |
| Abstract: | Licensing is one of the main channels for technology transfer from foreignowned multinational enterprises (MNEs) to domestic plants. This transfer occurs within industries and across industries, which results in technology spillovers that can affect both intra- and inter-industry productivity. We propose a theoretical model that predicts that this effect can be enhanced by the implementation of stronger intelectual property rights (IPR). Using Chilean plant-level data for the 2001–2007 period and exogenous variation from a reform in 2005, we test our theoretical predictions and find positive inter-industry effects, which result in higher productivity for domestic plants. However, there are negative spillovers when licensing is implemented within the same industry. We also test for the effect of stronger IPR and find that stronger IPR reduces intra-sector spillovers but increases inter-industry spillovers. Moreover, the IPR effect is stronger on firms that are, on average, smaller and have low productivity. Our results are robust not only to a series of definitions of IPR, licensing and productivity but also to a set of different specifications. |
| Keywords: | Technology Licensing, Productivity, Spillovers, Chile |
| JEL: | O34 O44 C5 K2 |
| Date: | 2017–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:col:000122:015809&r=ino |
| By: | Christian Helmers; Henry Overman |
| Abstract: | Large-scale facilities like the Diamond Light Source synchrotron in Oxfordshire have the power to create concentrated geographical clusters of scientific research. According to new research scientists' proximity to Diamond has had a positive impact on their output of related scientific research. Diamond is the largest single investment in basic research infrastructure in modern UK history. The new study examines its impact on the geographical distribution of related scientific output. |
| Keywords: | Synchrotron, location, innovation, patents |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:515&r=ino |