nep-ino New Economics Papers
on Innovation
Issue of 2017‒12‒03
28 papers chosen by
Uwe Cantner
University of Jena

  1. Gender diversity, R&D teams and patents:An application to Spanish firms By Mercedes Teruel; Agustí Segarra-Blasco
  2. Innovation, Productivity, and Monetary Policy By Albert Queralto; Patrick Donnelly Moran
  3. Variety Expansion Redux: A Cross-Country Estimation of the Spillover Effects of Innovation and Imitation By King Yoong Lim; Ali Raza
  4. Strategic conflicts on the horizon: R&D incentives for environmental technologies By Heyen, Daniel
  5. Innovation, Finance, and Economic Growth: An Agent-Based Approach By Giorgio Fagiolo; Daniele Giachini; Andrea Roventini
  6. Knowledge Diffusion, Trade and Innovation Across Countries and Sectors By Cai, Jie; Li, Nan; Santacreu, Ana Maria
  7. Are Important Innovations Rewarded? Evidence from Pharmaceutical Markets By Kyle, Margaret K
  8. Not too close, not too far: testing the Goldilocks principle of ‘optimal’ distance in innovation networks By Fitjar, Rune Dahl; Hubert, Franz; Rodríguez-Pose, Andrés
  9. Startups and Stanford University By Herv\'e Lebret
  10. Innovation Capabilities of a Firm: a Key Role of Information Exploration By Kazantcev, Anatoly K.; Logacheva, Anna V.; Veselova, Anna S.
  11. Technology, Market Structure and the Gains from Trade By Giammario Impullitti; Omar Licandro; Pontus Rendahl
  12. A Scientific Approach to Entrepreneurial Decision-Making: Evidence from a Randomized Control Trial By Camuffo, Arnaldo; Cordova, Alessandro; Gambardella, Alfonso
  13. Does ethnic conflict impede or enable employee innovation behavior? The alchemic role of collaborative conflict management By Reade, Carol; Lee, Hyun-Jung
  14. Exploring the Reciprocal Relationship Between Innovation, Internationalization, and Organizational Learning: A Complex System Model for Small Firms By Freixanet, Joan; Churakova, Iya Yu.
  15. Equity in Startups By Herv\'e Lebret
  16. How Beliefs Influence Behavior: Confucianism and Innovation in China By Feng, Xunan; Jin, Zhi; Johansson, Anders C.
  17. Digital Innovation and the Distribution of Income By Dominique Guellec; Caroline Paunov
  18. Spatial Linkage of Technological Progress, ICT base and Economic Output in CLMV Region By Chhorn, Theara
  19. Knowledge Creation and Knowledge Sharing on the Virtual Conference: a Case Study of Disruptive Innovation Festival By Kokoulina, Liudmila O.
  20. Diamonds and “the Golden Flute”: from the Golden Age of prodigies and geniuses to the Knowledge Based Digital Economy By Ojo, Marianne
  21. Financial Innovation and Asset Prices By Buss, Adrian; Uppal, Raman
  22. Responsible Innovations and Value Creation: The Case of Leading Russian Companies By Blagov, Yury E.
  23. The Role of Joint R&D Centers Formation with Universities for MNEs in the Russian IT Market By Kuznetsova, Svetlana; Morozova, Daria; Morozova, Tatiana; Muravskii, Daniil V.; Mironova, Daria
  24. Technological innovations and the transformation of economic sectors: A concise overview of issues and concepts By Dolata, Ulrich
  25. INNOVARRA Project: Some Preliminary Results By Gavrilova, Tatiana A.; Kudryavtsev, Dmitry V.; Menshikova, Anna V.
  26. Wage Inequality and Innovative Intelligence-Biased Technological Change By Harashima, Taiji
  27. The 4th Industrial Revolution and R&D Policy By Sung-Uk Park
  28. Survey of Big Data Use and Innovation in Japanese Manufacturing Firms By MOTOHASHI Kazuyuki

  1. By: Mercedes Teruel (GRIT, Universitat Rovira i Virgili); Agustí Segarra-Blasco (GRIT, Universitat Rovira i Virgili)
    Abstract: Previous results show that gender diversity increases the probability firms’ innovation. This paper explores the relationship between gender diversity of R&D departments and their capacity to patent. Based on the Spanish Community Innovation Survey between 2004 and 2014, we have applied a two-step procedure control for endogeneity. Our results show that gender diversity affects a firm’s capacity to patent in different manners depending on the coverage of the patents. On the one hand, gender diversity affects OEPM patents negatively, while the impact becomes positive for patents with an international coverage (EPO, USPTO, or PCT). This analysis is relevant in order reveal the dual effect of gender diversity within R&D teams on their capacity to process and register patents.
    Keywords: gender diversity, patent generation
    JEL: O30 O31 J16
    Date: 2017–11
  2. By: Albert Queralto; Patrick Donnelly Moran
    Abstract: To what extent can monetary policy impact business innovation and productivity growth? We use a New Keynesian model with endogenous total factor productivity (TFP) to quantify the TFP losses due to the constraints on monetary policy imposed by the zero lower bound (ZLB) and the TFP benefits of tightening monetary policy more slowly than currently anticipated. In the model, monetary policy influences firms incentives to develop and implement innovations. We use evidence on the dynamic effects of R&D and monetary shocks to estimate key parameters and assess model performance. The model suggests significant TFP losses due to the ZLB.
    Keywords: Endogenous Technology ; Business Cycles ; Monetary Policy
    JEL: E32 F41 F44 G15
    Date: 2017–11–22
  3. By: King Yoong Lim; Ali Raza
    Abstract: The complex interactions between imitation and innovation are frequently examined in endogenous growth models: imitation serves as a stepping stone to innovation; innovation exhibits spillover to imitation; for both, the accumulative stock provides a standing-on-shoulders e¤ect to further growth. However, empirical estimation of these concepts in true Romerian product variety interpretation is scarce. This is due to variety expansion often being treated only as imitative activities in the relatively popular Schumpeterian interpretation to innovation. Using an overlapping generations framework that models innovation and imitation as semi-symmetric ideas production functions, this paper estimates these spillover e¤ects using cross-country data by treating each 4-digit ISIC industries as a separate industrial variety. We find robust and significant estimates for all three spillover effects, with both imitation and innovation being complementary to each other. In addition, the growth regressions also reaffirm the significance of product variety expansion as a source of innovation-driven growth.
    Keywords: Growth, Ideas Production, Imitation, Innovation, Product Variety Expansion
    JEL: O11 O40 O47
    Date: 2017
  4. By: Heyen, Daniel
    Abstract: Technological innovation is a key strategy for tackling climate change and other environmental problems. The required R&D expenditures however are substantial and fall on self-interested countries. Thus, the prospects of successful innovation critically depend on innovation incentives. This paper focuses on a specific mechanism for strategic distortions in this R&D game. In this mechanism, the outlook of future conflicts surrounding technology deployment directly impacts on the willingness to undertake R&D. Apart from free-riding, a different deployment conflict with distortive effects on innovation can occur. Low deployment costs and heterogeneous preferences might give rise to 'free-driving' (Weitzman 2015): The country with the highest preference for technology deployment, the free driver, may dominate the deployment outcome to the detriment of others. The present paper develops a simple two stage model for analysing how technology deployment conflicts, free-riding and free-driving, shape R&D incentives of two asymmetric countries. The framework gives rise to rich findings, underpinning the narrative that future deployment conflicts extend to the R&D stage. While the outlook of free-riding unambiguously weakens innovation incentives, the findings for free-driving are more complex, including the possibility of excessive R&D as well as incentives for counter-R&D.
    Keywords: Environmental innovation; R&D game; innovation incentives; externalities; strategic conflicts; climate engineering; geoengineering; free driver externality
    JEL: D62 H41 O31 Q54 Q55
    Date: 2016–10–25
  5. By: Giorgio Fagiolo; Daniele Giachini; Andrea Roventini
    Abstract: This paper extends the endogenous-growth agent-based model in Fagiolo and Dosi (2003) to study the finance-growth nexus. We explore industries where firms produce a homogeneous good using existing technologies, perform R&D activities to introduce new techniques, and imitate the most productive practices. Unlike the original model, we assume that both exploration and imitation require resources provided by banks, which pool agent savings and finance new projects via loans. We find that banking activity has a positive impact on growth. However, excessive financialization can hamper growth. Indeed, we find a significant and robust inverted-U shaped relation between financial depth and growth. Overall, our results stress the fundamental (and still poorly understood) role played by innovation in the finance-growth nexus.
    Keywords: Agent-based Models, Innovation, Exploration vs. Exploitation, Endogenous Growth, Banking Sector, Finance-Growth Nexus
    Date: 2017–11–24
  6. By: Cai, Jie (Shanghai University of Finance and Economics); Li, Nan (International Monetary Fund); Santacreu, Ana Maria (Federal Reserve Bank of St. Louis)
    Abstract: We develop and quantify a multi-country and multi-sector endogenous growth model in which comparative advantage and the stock of knowledge are endogenously determined by innovation and knowledge diffusion. We quantify the effect of trade liberalization on innovation, comparative advantage and welfare in a framework that features intersectoral production and knowledge linkages that are consistent with the data. A reduction in trade frictions induces a reallocation of innovation and comparative advantage across sectors: innovation reallocates towards sectors that experience larger increases in comparative advantage, and comparative advantage reallocates towards sectors with stronger knowledge spillovers. Furthermore, knowledge spillovers amplify the effect of a trade liberalization as countries and sectors benefit from foreign technology. In contrast to standard one sector models of trade and innovation without knowledge spillovers, we find significant dynamic gains from trade. These gains are mainly driven by innovation and knowledge diffusion across sectors and countries.
    Keywords: Technology Diffusion; R&D; Patent Citations; International Trade
    JEL: F12 O33 O41 O47
    Date: 2017–10–23
  7. By: Kyle, Margaret K
    Abstract: This paper focuses on the relationship between therapeutic value and different measures of market rewards (the number of patents, price, market share, and total revenues) of a new treatment. Using an assessment of therapeutic value provided by the French Haute Authorité de Santé (HAS), I find a weak relationship between most measures of rewards and this assessment of therapeutic value, suggesting that the returns to developing a "me-too" product are not very different from developing treatments with greater therapeutic effects. One interpretation is that the HAS score is a poor assessment of therapeutic value, in which case the use of similar health technology assessments by governments and other payers should be re-examined. Alternatively, if the HAS score is informative, the results suggest countries are spending too much on less innovative products, and that a re-balancing of innovation incentives may be worth considering if therapeutic value is highly related to social welfare.
    Date: 2017–11
  8. By: Fitjar, Rune Dahl; Hubert, Franz; Rodríguez-Pose, Andrés
    Abstract: This paper analyses how the formation of collaboration networks affects firm-level innovation by applying the ‘Goldilocks principle’. The ‘Goldilocks principle’ of optimal distance in innovation networks postulates that the best firm-level innovation results are achieved when the partners involved in the network are located at the ‘right’ distance, i.e. ‘not too close and not too far’ from one another, across non-geographical proximity dimensions. This principle is tested on a survey of 542 Norwegian firms conducted in 2013, containing information about firm-level innovation activities and key innovation partners. The results of the ordinal logit regression analysis substantiate the Goldilocks principle, as the most innovative firms are found among those that collaborate with partners at medium levels of proximity for all non-geographical dimensions. The analysis also underscores the importance of the presence of a substitution–innovation mechanism, with geographical distance problems being compensated by proximity in other dimensions as a driver of innovation, while there is no support for a potential overlap–innovation mechanism.
    Keywords: proximities; innovation; collaboration; Goldilocks principle; Norway
    JEL: J50
    Date: 2016–08–17
  9. By: Herv\'e Lebret
    Abstract: Startups have become in less than 50 years a major component of innovation and economic growth. Silicon Valley has been the place where the startup phenomenon was the most obvious and Stanford University was a major component of that success. Companies such as Google, Yahoo, Sun Microsystems, Cisco, Hewlett Packard had very strong links with Stanford but even these vary famous success stories cannot fully describe the richness and diversity of the Stanford entrepreneurial activity. This report explores the dynamics of more than 5000 companies founded by Stanford University alumni and staff, through their value creation, their field of activities, their growth patterns and more. The report also explores some features of the founders of these companies such as their academic background or the number of years between their Stanford experience and their company creation.
    Date: 2017–11
  10. By: Kazantcev, Anatoly K.; Logacheva, Anna V.; Veselova, Anna S.
    Abstract: Following the logic of resource-based view and dynamic capabilities, exploration and exploitation concepts the present study addresses the concept of firmÙ³ innovation resources and innovation capabilities. Empirical testing of measurement model conducted on the sample of 55 Russian industrial enterprises identified a set of six components of innovation capabilities: financial, technological, informational (exploration and exploitation), human and organizational. Information exploration component is found to be the most important for firmÙ³ innovation capabilities formation, while financial component is found to be critical to form firmÙ³ innovation resources.
    Keywords: innovation capabilities, innovation measurement, information exploration, resource-based view, dynamic capabilities, innovation resources, innovative firm,
    Date: 2016
  11. By: Giammario Impullitti; Omar Licandro; Pontus Rendahl
    Abstract: We study the gains from trade in an economy with oligopolistic competition, firm heterogeneity, and innovation. Oligopolistic competition together with free entry make markups responsive to firm productivity and trade costs. Lowering trade costs reduces markups on domestic sales but increases markups on export sales, as firms do not pass the entire reduction in trade costs onto foreign consumers. Nevertheless, the downward pressure dominates and the average markup declines, deterring firms from entering the market and leading to higher market concentration. Neither the increased concentration nor the incomplete pass-through of trade costs to export markups are strong enough to compensate for the increase in competition on domestic sales. Thus the overall effect of trade on markups is pro-competitive and a key source of the associated welfare gains. In addition to markups, selection and innovation provide additional channels through which the trade-induced effect on competition impacts welfare. In a quantitative exercise, we decompose the total gains from trade into these three contributing channels; we find that innovation plays a small but non-negligible role, while the main component is equally split between the pro-competitive and the selection channel.
    Keywords: gains from trade, heterogeneous firms, oligopoly, innovation, endogenous markups, endogenous market structure
    JEL: F12 F13 O31 O41
    Date: 2017
  12. By: Camuffo, Arnaldo; Cordova, Alessandro; Gambardella, Alfonso
    Abstract: A classical approach to collecting and elaborating information to make entrepreneurial decisions combines search heuristics such as trial and error, effectuation, and confirmatory search. This paper develops a framework for exploring the implications of a more scientific approach to entrepreneurial decision making. The panel sample of our randomized control trial includes 116 Italian startups and 16 data points over a period of about one year. Both the treatment and control groups receive 10 sessions of general training on how to obtain feedback from the market and gauge the feasibility of their idea. We teach the treated startups to develop frameworks for predicting the performance of their idea and to conduct rigorous tests of their hypotheses very much like scientists do in their research. We let the firms in the control group, instead, follow their intuitions about how to assess their idea, which has typically produced fairly standard search heuristics. We find that entrepreneurs who behave like scientists perform better, pivot to a greater extent to a different idea, and do not drop out less than the control group in the early stages of the startup. These results are consistent with the main prediction of our theory: a scientific approach improves precision – it reduces the odds of pursuing projects with false positive returns, and raises the odds of pursuing projects with false negative returns.
    Keywords: decision-making; entrepreneurship; randomized control trial; scientific method; startup
    JEL: L21 L26 M13 M21
    Date: 2017–11
  13. By: Reade, Carol; Lee, Hyun-Jung
    Abstract: Purpose The main objective of the study is to investigate whether a societal context of ethnic conflict influences employee innovation behavior in the work domain, and whether a collaborative conflict management style adopted by supervisors plays a moderating role. Design/methodology/approach Drawing on the conflict, organizational behavior and innovation literature, the study examines the main and interaction effects of employee sensitivity to ethnic conflict, organizational frustration, and collaborative conflict management style of supervisors on employee engagement with colleagues to innovate products, services, and job processes. Hypotheses are tested using hierarchical regression analysis, controlling for ethnic diversity in workgroups. Findings Employee innovation behavior is greatest when employee sensitivity to ethnic conflict is high, organizational frustration is low, and when supervisors are perceived to be highly collaborative in managing conflict, regardless of whether the workgroup is ethnically homogenous or diverse. Research limitations/implications The research findings expand our knowledge of the effects of sociopolitical conflict on employee behavior and the role of collaborative conflict management. Future research can address limitations including self-reports, cross-sectional design, and single country setting. Practical implications The findings suggest that employee innovation behavior can be enhanced through developing collaborative conflict management skills of those in leadership positions. Originality/value This is the first study to empirically examine the influence of ethnic conflict on employee innovation behavior, and is of value to businesses operating in conflict settings.
    Keywords: ethnic conflict; employee innovation behaviour; organizational frustration; collaborative conflict management; Sri Lanka
    JEL: J50
    Date: 2016–04–11
  14. By: Freixanet, Joan; Churakova, Iya Yu.
    Abstract: The purpose of this study is to explore the relationship between innovation, internationalization, and organizational learning in small businesses. Emergent approaches go beyond the linear causality that has traditionally linked these concepts in previous research in favor of holistic, complex approaches that stress mutual or circular causality. Based on this approach, and after analyzing 285 interviews and 54 companies from various industries, the authors find that the three activities are reciprocally linked to each other, forming a complex system. The firmsÙ evolution over a period of nine years also shows that, faced with various change elements, they evolved and adopted four kinds of configurations, characterized by low and high incremental and radical innovation, local and global internationalization, and adaptive and generative learning. The findings are relevant to scholars, managers, and government policymakers.
    Keywords: internationalization, innovation, organizational learning, complex system, complexity theory, small business, SME, incremental innovation, radical innovation, multiplecase study, dynamic model, adaptive learning,
    Date: 2016
  15. By: Herv\'e Lebret
    Abstract: Startups have become in less than 50 years a major component of innovation and economic growth. An important feature of the startup phenomenon has been the wealth created through equity in startups to all stakeholders. These include the startup founders, the investors, and also the employees through the stock-option mechanism and universities through licenses of intellectual property. In the employee group, the allocation to important managers like the chief executive, vice-presidents and other officers, and independent board members is also analyzed. This report analyzes how equity was allocated in more than 400 startups, most of which had filed for an initial public offering. The author has the ambition of informing a general audience about best practice in equity split, in particular in Silicon Valley, the central place for startup innovation.
    Date: 2017–11
  16. By: Feng, Xunan (Southwestern University of Finance and Economics); Jin, Zhi (Southwestern University of Finance and Economics); Johansson, Anders C. (Stockholm China Economic Research Institute)
    Abstract: Previous studies have studied how religious beliefs may affect economic activity. We extend this literature by examining how Confucianism is linked to innovative activities at the firm level in China. We analyze the relationship between Confucianism and several proxies for inputs and outputs of innovative activities. Our results show that Confucianism is significantly related to lower levels of innovative activities regardless of which measure for firm-level innovation we use. We also find that type of ultimate ownership influences this relationship, with innovation among state-controlled firms being significantly more affected by Confucianism. This study thus adds to the understanding of how traditional belief systems influence behavior at the firm level.
    Keywords: Confucianism; Beliefs; Religion; Innovation; R&D; Patents; China
    JEL: O30 Z10
    Date: 2017–11–16
  17. By: Dominique Guellec; Caroline Paunov
    Abstract: Income inequalities have increased in most OECD countries over the past decades; particularly the income share of the top 1%. In this paper we argue that the growing importance of digital innovation – new products and processes based on software code and data – has increased market rents, which benefit disproportionately the top income groups. In line with Schumpeter’s vision, digital innovation gives rise to ”winner-take-all” market structures, characterized by higher market power and risk than was the case in the previous economy of tangible products. The cause for these new market structures is digital non-rivalry, which allows for massive economies of scale and reduces costs of innovation. The latter stimulates higher rates of creative destruction, leading to higher risk as only marginally superior products can take over the entire market, hence rendering market shares unstable. Instability commands risk premia for investors. Market rents accrue mainly to investors and top managers and less to the average workers, hence increasing income inequality. Market rents are needed to incentivize innovation and compensate for its costs, but beyond a certain level they become detrimental. Public policy may stimulate innovation by reducing ex ante the market conditions which favor rent extraction from anti-competitive practices.
    JEL: D24 D31 D40 L10 O30
    Date: 2017–11
  18. By: Chhorn, Theara
    Abstract: Rising technological progress and innovation, ICT base toward the era of modernization and globalization in developing countries has driven economic into the new structure of transitional development. The paper examines spatial linkage between technological progress and economic output in CLMV region during the observation period of 1995 to 2016. The conventional approach overcome simple RE and FE estimation, say FGLS and MLE-GLS reveals the consistency of empirical outcomes. It yields the crucial role of technological progress, as the proxy of internet server connection and ICT, computer import products in boosting the structure of economic output which generate to the growth rate in CLMV region. The findings suggest policy maker in exerting policy toward climate investment and trade to bring the country into path of facilitating flows of capitals, goods and service, particularly the business structure in line with adopting the technological innovation.
    Keywords: Technological Progress, Economic Output, Economic Significance Analysis, CLMV
    JEL: C3 C33 O3
    Date: 2017–09
  19. By: Kokoulina, Liudmila O.
    Abstract: Despite its growing popularity, relatively little is currently known about usefulness of virtual conferences, what counts as successful participation, or how webinar sessions might best be shaped to support scholars` and other participants learning and knowledge sharing. The present study aims to address this gap in existing knowledge by examining data gathered from a web conference hosted by the Disruptive Innovation Festival (DIF). We ask what constitutes webinar participation, what counts as successful and unsuccessful participation, and how the format might be refined in order to maximize successful participation in future online events. Furthermore, the research explores knowledge sharing behavior during the online event with the goal to identify knowledge creation mechanisms. The present study employs case study method, combining content analysis of participant contributions with the analysis of questionnaire data gathered from participants.
    Keywords: knowledge creation, knowledge sharing, online conference, multi-sided platform, case study, virtual conferences, webinar,
    Date: 2016
  20. By: Ojo, Marianne
    Abstract: Information sharing, as a means of resource generating capabilities – as well as mitigating information gaps which present challenges to the development of innovative techniques, has also been facilitated through information technology, the rise of the digital economy and resources which avail from the rapidly advancing era of information technology. To what extent are our creative abilities still motivated and stimulated? Can an unhealthy balance and level of competition serve as a deterrent to constructive innovation? This paper attempts to investigate – as well as appreciate the role of information technology in generating economic stimulus and development – particularly in a world where budding entrepreneurs and innovation constitute key elements in addressing poverty alleviating initiatives. It also aims to highlight why, whilst certain geniuses may still exist, it is certainly evident that the current environment does not really stimulate or generate the same enthusiasm or kind of magical revolution that took place during the Golden Age.
    Keywords: competition; innovation; information technology; digital economy; the Magic Flute; the Knowledge Based Economy
    JEL: E6 F1 F12 F18 K2 M40 M41 Q5
    Date: 2017–11
  21. By: Buss, Adrian; Uppal, Raman
    Abstract: We study the effects of financial innovation on the dynamics of asset prices. We show that when some investors are less well informed about the new asset but rationally learn about it, many "intuitive'' results are reversed: financial innovation increases the volatility of investors' portfolios along with the return volatility and risk premium for the new asset, which decline to their pre-innovation levels only slowly. Moreover, illiquidity of the new asset causes shocks to the new asset to spill over to the traditional asset, increasing their return correlation and giving rise to a liquidity premium for the new asset.
    Keywords: differences in beliefs; parameter uncertainty; rational learning; recursive utility; spillover effects
    JEL: G11 G12
    Date: 2017–11
  22. By: Blagov, Yury E.
    Abstract: Creating social value through philanthropy continues to be the most favorable goal of the corporate social performance of leading Russian companies due to the implicit social contract that was created in the mid of 1990s. Nevertheless, since the mid 2010Ù³ some companies have started to reorient their philanthropic support into the innovative creation of Ü´rueÝ shared value. The above mentioned social contract is not violating but rather developing towards more rational business choices. From the prospective of well known CarrollÙ³ pyramid of CSR it is suggested that the relative priority of philanthropy is likely to be changing.
    Keywords: responsible innovations, value creation, shared value, implicit social contract, philanthropy, Russia,
    Date: 2016
  23. By: Kuznetsova, Svetlana; Morozova, Daria; Morozova, Tatiana; Muravskii, Daniil V.; Mironova, Daria
    Abstract: In the article, the drivers and forms of university-corporation partnerships are analyzed, and the role of joint R&D centers formation with universities as a strategic direction of development for MNEs is discussed. As a result, a classification of universitycorporation partnerships drivers for MNEs was established, forms of such partnerships are distinguished and compared, and joint R&D centers have been classified by openness and level of involvement of the MNE in order to simplify and spill light on the choices related to internationalization of R&D for MNEs on the Russian market.
    Keywords: research and development, R&D, collaboration platforms, MNEs, knowledge sharing, IT market, Russia,
    Date: 2016
  24. By: Dolata, Ulrich
    Abstract: The paper examines two main questions: First, how are economic sectors changing under the influence of new technological opportunities that bear an enormous potential for development and deployment for them? And second, how might this kind of sectoral transformation be analyzed? To pursue these questions, it first presents selected approaches to the topic, followed by a pragmatic concept for analyzing technology- related sectoral transformation processes.
    Date: 2017
  25. By: Gavrilova, Tatiana A.; Kudryavtsev, Dmitry V.; Menshikova, Anna V.
    Abstract: The paper presents some results of INNOVARRA project (Innovations in Company Knowledge Management: Typology, Methodology and Recommendations) that is supported by Russian Science Foundation for 2015-2017. This project suggests and develops the idea of differentiation of knowledge management (KM) methods and tools depending on domain and type of knowledge. The paper describes generalized knowledge map for structuring typical knowledge domains of the company, typology of knowledge and taxonomy of KM tools. The description of interrelations between knowledge domains, types/properties and KM methods and tools is also suggested.
    Date: 2016
  26. By: Harashima, Taiji
    Abstract: In this paper, “innovative intelligence–biased technological change” (IIBTC) is examined as an alternative to the traditional concept of skill-biased technological change (SBTC) as a source of increases in wage inequality. The innovative intelligence of ordinary or average workers is an important element in productivity and can be heterogeneous across workers. Because technologies are heterogeneous in that they have different characteristics and are used in different situations, some technologies are “innovative intelligence-biased” and are advantageous for workers with relatively high innovative intelligence. If IIBTC prevails over a certain period of time, these workers become additionally advantaged and thereby wage inequality will increase during the period.
    Keywords: Wage inequality; Innovative intelligence; Technological change; Total factor productivity; Approximate effective production function
    JEL: D24 D63 J31
    Date: 2017–11–02
  27. By: Sung-Uk Park (KISTI)
    Abstract: In this 4th Industrial Revolution, we are facing a range of new technologies that combine the physical, digital and biological worlds. These new technologies will impact all disciplines, economics and industries, and even challenge our ideas about what it means to be human. These technologies have great potential to continue to connect billions more people to the web, drastically improve the efficiency of business and organizations and help regenerate the natural environment through better asset management, potentially even undoing all the damage previous industrial revolution have caused. (Bernard Marr, 2016). And, More than 70% of South Koreans fear that the advent of the 4th industrial revolution will threaten their jobs. In this paper I studied about 4th Industrial Revolution. Especially I surveyed about between Industrial Revolution and R&D policy of Science & Technology.
    Keywords: 4th Industrial Revolution; R&D; S&T; Budget; Policy
    JEL: L88 L60
    Date: 2017–10
  28. By: MOTOHASHI Kazuyuki
    Abstract: This paper shows the results of a survey on big data use in manufacturing firms and innovation, conducted in November 2015. The survey investigated (1) firms'organization of big data use, (2) collection and business use of big data by type of data, and (3) use of datasets outside firms, with 539 respondents out of 4,000 firms. We divided the entire manufacturing process into three parts, i.e., development, mass production, and after services, and find that big data are widely used in all activities. In addition, firms with dedicated big data use function are more likely to conduct big data activity across various departments, as well as demonstrate a higher performance impact. However, we also find great disparity in terms of the usage style, particularly by firm size. For example, more than half of small and mid-sized enterprises (SMEs) responded that they have heard of Internet of Things (IoT), yet they are unaware of how to respond to such trend. Policy implications based on the results include (1) promoting diffusion of big data use, particularly for SMEs, (2) supporting human capital development for big data use, and (3) strategic standardization activities of IoT.
    Date: 2017–08

This nep-ino issue is ©2017 by Uwe Cantner. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.