nep-ino New Economics Papers
on Innovation
Issue of 2018‒02‒05
twenty-two papers chosen by
Uwe Cantner
University of Jena

  1. Who Becomes an Inventor in America? The Importance of Exposure to Innovation By Bell, Alex; Chetty, Raj; Jaravel, Xavier; Petkova, Neviana; Van Reenen, John
  2. Technological Innovation, Entrepreneurship and Productivity in Germany, 1871-2015 By Wim Naudé; Paula Nagler
  3. Usage-driven problem design for radical innovation in healthcare By Guillaume Lamé; Bernard Yannou; François Cluzel
  4. Innovation for Inclusive Structural Change. A Framework and Research Agenda By Tommaso Ciarli; Maria Savona; Jodie Thorpe; Seife Ayele
  5. Innovation, job creation and productivity: implications for public policy By Ugur, Mehmet
  6. Innovation and performance. An analysis on European and Romanian companies By Cadar, Otilia; Badulescu, Daniel
  7. Innovation, Structural Change, and Inclusion. A Cross Country PVAR Analysis By Amrita Saha; Tommaso Ciarli
  8. Does strategy formalization foster innovation? Evidence from a French sample of small to medium-sized enterprises By Marc Fréchet; Hervé Goy
  9. Persistent openness and environmental innovation: An empirical analysis of French manufacturing firms By Caroline Mothe; Thuc Uyen Nguyen-Thi
  10. The Modern Agricultural Cooperative: A Cognitive-Knowledge-Based Approach By Eddi Fontanari
  11. EU Emissions Trading: Policy-Induced Innovation, or Business as Usual? Findings from Company Case Studies in the Republic of Croatia By Martin Larsson
  12. Innovation as Adaptation to Natural Disasters By Hongxiu Li
  13. The Impact of International Patent Systems: Evidence from Accession to the European Patent Convention By Bronwyn Hall; Christian Helmers
  14. Threshold Policy Effects and Directed Technical Change in Energy Innovation By Lionel Nesta; Elena Verdolini; Francesco Vona
  15. Ecosystem complexity, firm learning and survival: UK evidence on intra-industry age and size diversity as exit hazards By Trushin, Eshref; Ugur, Mehmet
  16. Opportunity versus Necessity Entrepreneurship: Two Components of Business Creation By Fairlie, Robert W.; Fossen, Frank M.
  17. Wage Inequality and structural change By Joanna Tyrowicz; Magdalena Smyk
  19. To License or Sell: A Study on the Patent Transaction Modes in China By Naubahar Sharif
  20. System Transition and Structural Change Processes in the Energy Efficiency of Residential Sector: Evidence from EU Countries By Valeria Costantini; Francesco Crespi; Elena Paglialunga; Giorgia Sforna
  21. Amenities and Geography of Innovation: Evidence from Chinese Cities By Zhang, Min; Partridge, Mark; Song, Huasheng
  22. Regional Growth Paths: From Structure to Agency and Back By Grillitsch, Markus; Sotarauta, Markku

  1. By: Bell, Alex; Chetty, Raj; Jaravel, Xavier; Petkova, Neviana; Van Reenen, John
    Abstract: We characterize the factors that determine who becomes an inventor in America by using de-identified data on 1.2 million inventors from patent records linked to tax records. We establish three sets of results. First, children from high-income (top 1%) families are ten times as likely to become inventors as those from below-median income families. There are similarly large gaps by race and gender. Differences in innate ability, as measured by test scores in early childhood, explain relatively little of these gaps. Second, exposure to innovation during childhood has significant causal effects on children's propensities to become inventors. Growing up in a neighborhood or family with a high innovation rate in a specific technology class leads to a higher probability of patenting in exactly the same technology class. These exposure effects are gender-specific: girls are more likely to become inventors in a particular technology class if they grow up in an area with more female inventors in that technology class. Third, the financial returns to inventions are extremely skewed and highly correlated with their scientific impact, as measured by citations. Consistent with the importance of exposure effects and contrary to standard models of career selection, women and disadvantaged youth are as under-represented among high-impact inventors as they are among inventors as a whole. We develop a simple model of inventors' careers that matches these empirical results. The model implies that increasing exposure to innovation in childhood may have larger impacts on innovation than increasing the financial incentives to innovate, for instance by reducing tax rates. In particular, there are many "lost Einsteins" - individuals who would have had highly impactful inventions had they been exposed to innovation.
    Date: 2017–12
  2. By: Wim Naudé (Maastricht University, Maastricht School of Management and UNU-MERIT/MGSoG, Maastricht, The Netherlands and IZA-Institute of Labor Economics, Bonn, Germany); Paula Nagler (Erasmus Research & Business Support, Erasmus University Rotterdam and UNU-MERIT/MGSoG, Maastricht, The Netherlands.)
    Abstract: Entrepreneurship in Germany has been stagnating. As a result, the effectiveness of technological innovation to improve labor productivity weakened, which has been implicated in rising income inequality and poverty. In this paper we provide an overview of technological innovation and labor productivity growth from 1871. From this we show that over the past three decades the economy has found it increasingly difficult to transform technological innovation into labor productivity growth: in glaring contrast to earlier periods. Despite higher spending on R&D and more personnel than ever working in research labs, labor productivity growth continues to decline. Two interrelated reasons are offered for this phenomenon. The first is that the national innovation system itself has certain weaknesses. The second is entrepreneurial stagnation. We discuss the weaknesses of the innovation system and the nature and causes of entrepreneurial stagnation. We call for policies that will improve the innovation system, educational and managerial capabilities, venture capital investments, and the contestability of markets. Strengthening social protection and raising real wages are important supportive measures.
    Keywords: Entrepreneurship, Germany, Innovation, Social Protection, Industrial Policy
    JEL: D31 L26 O33 O38 O52
    Date: 2018–01
  3. By: Guillaume Lamé (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Bernard Yannou (Ingénierie de la conception - Design Engineering - LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec, LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); François Cluzel (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)
    Abstract: Lamé, Guillaume, Bernard Yannou, and François Cluzel. 2017. "Usage-driven problem design for radical innovation in healthcare." BMJ Innovations (in press). ABSTRACT Whilst the diffusion and evaluation of healthcare innovations receive a lot of attention, the early design stages are less studied and potential innovators lack methods to identify where new innovations are necessary and to propose concepts relevant to users. To change this, we propose a structured methodology, Radical Innovation Design ® (RID), which supports designers who want to work on the unstated needs of potential end-users in order to create superior value. In this article, the first part of RID is introduced with its two sub-processes: Problem Design and Knowledge Design. In this first period, RID guides innovators to systematically explore users' problems and evaluate which ones are most pressing in terms of innovation, taking into account existing solutions. The result is an ambition perimeter, composed of a set of value buckets, i.e. important usage situations where major problems are experienced and the current solutions provide little or no relief. The methodology then moves on to Solution Design and Business Design (which are not detailed in this paper) to address the value buckets identified. With its emphasis on problem exploration, RID differs from methods based on early prototyping. The RID methodology has been validated in various industrial sectors, and is well-adapted for healthcare innovation. To exemplify the methodology, we present a case study in dental imagery performed by ten students in 8 weeks. This example demonstrates how RID favors efficiency in Problem Design and allows designers to explore unaddressed and sometimes undeclared user needs. KEYWORDS Innovation methodology; Problem definition; Value bucket; Front end of innovation; Need-seeker innovation. Lamé, Guillaume, Bernard Yannou, and François Cluzel. 2017. "Usage-driven problem design for radical innovation in healthcare." BMJ Innovations (in press).
    Date: 2017
  4. By: Tommaso Ciarli (SPRU, University of Sussex, UK); Maria Savona (SPRU, University of Sussex, UK); Jodie Thorpe (Institute of Development Studies, UK); Seife Ayele (Institute of Development Studies, UK)
    Abstract: The paper proposes the foundations of an analytical framework to map different innovation pathways and explain how innovation leads to inclusive structural change in low-income countries. Innovation pathways depend on how actors, interactions, and variables affect the origin of innovation; the uptake of the innovations (adoption and diffusion); the impact of this diffusion on upgrading, structural change and inclusion; the complementarity between these processes; the potential trade-offs between structural change and inclusion. The paper offers a set of novel applications to test the proposed framework, through different examples of innovation pathways: (a) international technology transfer, based on an extensive systematic literature review; (b) product and process innovation in the dairy sector in Kenya, based on a secondary case study; (c) an organisational innovation in the provision of antiretroviral treatment in Mozambique, also a case study; (d) a systematisation of metrics and indicators of innovation, structural change and inclusion and an empirical exploration of their relationship. The learning generated will support a multidisciplinary, multi-methods research agenda to map the dynamics around innovation, structural change, and inequality and generate an integrated platform of evidence on these processes. In doing so, we respond to the recently increasing demand coming from international institutions, inter-departmental research funds, NGOs and national ministries, for better knowledge to shape a more effective innovation policy for sustainable and inclusive development in low income countries.
    Keywords: Innovation; Technological Upgrading; Structural Change, Inclusion, Low Income Countries (LICs)
    JEL: O1 O13 O14 O33 Q13 I15
    Date: 2018–01
  5. By: Ugur, Mehmet
    Abstract: Direct and indirect public support (subsidies and tax relief) for business R&D in the UK is higher than most other OECD countries. Nevertheless, total business R&D expenditure as percentage of GDP in the UK (1.7%) is relatively low compared to OECD countries (2.43%). This policy brief summarizes the findings from an ESRC-funded research project on productivity and employment effects of R&D investment; and on whether direct public support has had additionality effects in terms of increasing the funded firms’ R&D investment. The findings suggest that the bot the effects of R&D on productivity and employment and the effect of subsidies on private R&D effort are heterogeneous and non-linear. Therefore, we call for well-targeted R&D subsidies, new conditionality clauses taking account of past performance, and industry-specific targets for R&D investment.
    Keywords: Innovation; R&D; Employment; Productivity; Public Policy
    JEL: D24 J23 O30 O32 O38
    Date: 2018–01–25
  6. By: Cadar, Otilia; Badulescu, Daniel
    Abstract: The challenges of the economy and of the modern society based on knowledge are closely related to the success of firms, their ability to generate new, innovative products and services, in a steady pace and in a large, diverse structure in order to ensure performance and long-term welfare. In a global world where countries compete to produce and promote the market for quality and convenient products for the consumers, the innovation capacity of a country and the innovative capabilities of companies acquire a special importance. Numerous studies have analyzed the determinants of innovation of the innovative activities in companies, focusing in particular on organizational and technological capabilities and associated strategies required for successful innovation. There are different types of measuring innovation at the firm level, and in this paper we chose four main groups inspired by the typology promoted by OECD and Eurostat: product innovation, process innovation, organizational innovation, marketing innovation. To remain competitive in the long term, companies must consider all these areas, introduce new products to market, improve the quality of the existing products, upgrade or purchase new production technologies. Based on statistical reports of world and national organizations, our research highlights an extremely diverse and heterogeneous picture of the performance innovation indicators in Europe and the situation in Romania, by comparison both with the EU average, with countries in Central and Eastern Europe (CEE), but also with their own performance in prior periods.
    Keywords: innovation, innovative firms, performance, EU, Romania
    JEL: L25 M21 O31
    Date: 2017–07–01
  7. By: Amrita Saha (Institute of Development Studies, UK); Tommaso Ciarli (SPRU, University of Sussex, UK;)
    Abstract: Structural change can be both, a cause or a consequence of innovation, while structural change and innovations are usually accompanied by short-term outcomes of social inclusion or exclusion. Inclusion may in turn have an impact on further innovations. Yet, we find little evidence in the literature on the three-way relations between innovation, structural change and inclusion. This paper advances a first exercise in this direction. Given the multidimensionality of each (innovation, structural change, and inclusion), we extract the underlying unobserved common factor structure from various well-known macro indicators. With a structural vector auto regression (SVAR) model for a short panel of developing countries over 13 years, we nd the following main results. First, we con rm the virtuous cycle between innovation and structural change, aligning with existing literature. Second, the strongest result is the positive effect of inclusion on both innovation and structural change, that suggests policy to improve inclusion beyond poverty and inequality. Third, on decomposing the innovation index (formal, firm-level and ICT), we find each related differently to both structural change and inclusion, that suggests specific policy roles in their infl uence on inclusion and structural change.
    Keywords: Innovation, structural change, inclusion
    JEL: O3 O11 O15
    Date: 2018–01
  8. By: Marc Fréchet (COACTIS - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne], CRM - Centre de Recherche en Management - UT1 - Université Toulouse 1 Capitole - CNRS - Centre National de la Recherche Scientifique); Hervé Goy (COACTIS - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet [Saint-Étienne])
    Abstract: Despite abundant research, the relationship between strategy formalization and innovation remains unclear. Some acknowledge a positive impact of strategy formalization on innovation while others consider it an impediment to novelty and creation. Going beyond the conflicting views over the influence of formalization, we combine open innovation and socio-material perspectives. This study aims to contribute to the debate by considering the possibility that formalization is a means of benefiting from openness with respect to innovation. Therefore, we predict that formalization might positively moderate the impact of openness on innovation. Relying on a unique sample of 555 SMEs, we investigate the effects of strategy formalization and openness—according to their various facets and interactions—on new product innovation. We find a positive influence of formalization (whether it is approached as a process or as a strategic tool) on product innovation. Our findings also support the idea that formalization increases the effectiveness of openness on innovation performance. Implications are discussed, and future research directions are outlined at the end.
    Keywords: innovation,open innovation,strategy formalization,SMEs
    Date: 2017
  9. By: Caroline Mothe (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Thuc Uyen Nguyen-Thi (CEPS/INSTEAD - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development - Centre d'Etudes de Populations, de Pauvreté et de Politiques Socio-Economiques / International Networks for Studies in Technology, Environment, Alternatives, Development)
    Abstract: The antecedents of environmental innovation and the impact of openness on technological innovation have been well studied, yet the role of external knowledge search remains largely unknown. This study explores whether six dimensions of open search (external R&D, acquisition, R&D cooperation, and three types of external information sourcing) enhance firms' radical and incremental innovation with environmental effects (EI) when used either sporadically or persistently. It shows that the temporal dimension of openness matters. Persistent open knowledge search efforts are associated with a firm's propensity to introduce EI, more so than sporadic search. Furthermore, the different types of knowledge search have heterogeneous effects on different types of EI. It also shows that persistent innovation is more relevant in the case of radical EI.
    Keywords: Search,Environmental innovation, Incremental/radical, Openness,Persistence
    Date: 2017
  10. By: Eddi Fontanari
    Abstract: The new agri-food market scenario is considered a detrimental factor for the competitiveness and financial equilibria of the agricultural cooperatives. According to this vision, as a result of the saturation and globalization process, the shift of the specific investment at the forward level of the supply chain (i.e., for the brand development, or for R&D activities) would be a serious threat for the cooperative model. These assumptions come from a transaction cost and property rights-based framework. The results of these studies are surely insightful and valuable, but they should be integrated with the strengths in terms of knowledge integration (and coordination) assured by the agricultural cooperative model. This work is aimed at updating the function/justification of modern agricultural cooperatives. Firstly, a theoretical contribution mingling the knowledge-based theory of the firm with the social innovation approach in agriculture will be defined. Secondly, two case studies will be discussed.
    Keywords: Agricultural cooperatives, Agri-food, Innovation
    JEL: Q13 O31
    Date: 2017
  11. By: Martin Larsson (The Institute of Economics, Zagreb)
    Abstract: The European Union Emissions Trading Scheme (EU ETS), while primarily designed to reduce greenhouse gas emissions in an effective and efficient way, is supposed to serve as an instrument promoting investments in clean, low-carbon technologies by way of incentivizing associated innovation activity. Since empirical results concerning the instrument´s capacity of reaching this secondary policy goal are rare, this paper examines the innovation impact of the EU ETS among emissions-intensive companies in the Republic of Croatia. To this end the effects of the instrument on research, development and demonstration (RD&D), adoption, and organizational change are examined. The study accounts for the impacts of various context factors, including firm-external and firm-internal variables. The empirical analysis employs a multiple case study approach. While findings support the assertion that policy-induced innovation effects arise from the pricing of carbon, the innovation-fostering capacity of the instrument remains limited due to continued low levels of policy stringency and predictability. Long-term expectations of market actors appear to play a decisive role in decisions surrounding innovation activity, suggesting that signals of policy commitment are highly influential.
    Keywords: European Union, emissions trading, Croatia, carbon, climate policy
    JEL: O31 Q58
    Date: 2017–10
  12. By: Hongxiu Li (Department of Economics, University of Waterloo)
    Abstract: Can innovation be motivated by past natural disasters? Despite some recent research, the determinants of disaster-mitigating innovation are not well understood. Starting from a conceptual model combining perceived risk theory with the profit motive, this paper investigates the salience of innovation induced by natural disasters, using a unique dataset that includes U.S.patent data, and f ood, drought, and earthquake damage data for the years 1977 to 2005. To address the potential endogeneity of disaster damage, I employ the control function approach with instrumental variables constructed from disaster intensity measurements. The results show that impact-reducing innovations at the state level respond to national disaster damage in the U.S. In general, the impact of natural disasters is not localized to a state-that is, disaster damage in a state also stimulates innovations in more-distant states.The fndings in this paper highlight a policy role for the federal government in channelling and more effectively spurring impact-reducing innovations nationwide.
    JEL: O31 Q54 Q55
    Date: 2017–11
  13. By: Bronwyn Hall; Christian Helmers
    Abstract: We analyze the impact of accession to the regional patent system established by the European Patent Convention (EPC) on 14 countries that acceded between 2000 and 2008. We look at changes in patenting behavior by domestic and foreign applicants at the national patent offices and the European Patent Office (EPO). Our findings suggest a strong change in patent filing behavior among foreigners seeking patent protection in the accession states, substituting EPO patents for domestic patents immediately. However, there is little evidence that accession increased FDI by patenting foreign companies in accession countries. Moreover, there is no discernible reaction among domestic entities in terms of domestic filings, although we do find some evidence that applicants in accession states increased their propensity to file patents with the EPO post-accession. Inventor-level information suggests that the underlying inventions originate in the accession states
    JEL: F53 F55 O34
    Date: 2018–01
  14. By: Lionel Nesta (Université Côte d'Azur; GREDEG CNRS; OFCE Sciences Po. Paris; SKEMA Business School); Elena Verdolini (Fondazione ENI Enrico Mattei (FEEM)); Francesco Vona (OFCE Sciences Po. Paris; SKEMA Business School)
    Abstract: This paper analyzes the effect of environmental policies on the direction of energy innovation across countries over the period 1990-2012. Our novelty is to use threshold regression models to allow for discontinuities in policy effectiveness depending on a country's relative competencies in renewable and fossil fuel technologies. We show that the dynamic incentives of environmental policies become effective just above the median level of relative competencies. In this critical second regime, market-based policies are moderately effective in promoting renewable innovation, while command-and-control policies depress fossil based innovation. Finally, market-based policies are more effective to consolidate a green comparative advantage in the last regime. We illustrate how our approach can be used for policy design in laggard countries.
    Keywords: Directed technical change, threshold models, environmental policies, policy mix
    JEL: Q58 Q55 Q42 Q48 O34
    Date: 2018–01
  15. By: Trushin, Eshref; Ugur, Mehmet
    Abstract: Firm age or size diversity in an industry is taken for granted but its implications for industry evolution and firm survival have remained below the radars of empirical research. We address this knowledge gap by drawing on an interdisciplinary theoretical framework informed by theoretical biology, organizational ecology and industrial organisation. We hypothesize that firms in more diverse industries are more likely to exit as a result of rugged fitness distributions where a global fitness optimum is less likely to emerge. We also hypothesize that investment in research and development (R&D) may counterbalance the adverse effect of diversity on survival by enabling the firm to engage in active learning about its market and technology niches. Evidence from discrete-time hazard estimators and an unbalanced panel dataset of 35,136 R&D-active UK firms lend support to these hypotheses. The findings remain robust to: (i) a battery of sensitivity checks, including step-wise estimations, different diversity measures and various firm cohorts; (ii) control for frailty and for a wide range of firm, industry, and macroeconomic factors considered in the survival literature; and (iii) taking account of direct effects of age, size and R&D intensity.
    Keywords: Diversity; complexity; firm survival; R&D; ecosystem
    JEL: C4 L2 O32 O33
    Date: 2018–01–25
  16. By: Fairlie, Robert W. (University of California, Santa Cruz); Fossen, Frank M. (University of Nevada, Reno)
    Abstract: A common finding in the entrepreneurship literature is that business creation increases in recessions. This counter-cyclical pattern is examined by separating business creation into two components: "opportunity" and "necessity" entrepreneurship. Although there is general agreement in the previous literature on the conceptual distinction between these two factors driving entrepreneurship, there are many challenges to creating a definition that is both objective and empirically feasible. We propose an operational definition of opportunity versus necessity entrepreneurship using readily available nationally representative data. We create a distinction between the two types of entrepreneurship based on the entrepreneur's prior work status that is consistent with the standard theoretical economic model of entrepreneurship. Using this definition we document that "opportunity" entrepreneurship is pro-cyclical and "necessity" entrepreneurship is counter-cyclical. We also find that "opportunity" vs. "necessity" entrepreneurship is associated with the creation of more growth-oriented businesses. The operational distinction proposed here may be useful for future research in entrepreneurship.
    Keywords: opportunity entrepreneurship, necessity entrepreneurship, business creation, business cycle
    JEL: J22 J23 L26
    Date: 2018–01
  17. By: Joanna Tyrowicz (Institute for Labour Law and Industrial Relations in the European Union IAAEU), Trier University); Magdalena Smyk (Group for Research in Applied Economics)
    Abstract: Income inequality in the context of large structural change has received a lot of attention in the literature, but most studies relied on household post-transfer inequality measures. This study utilizes a novel and fairly comprehensive collection of micro data sets from between 1980’s and 2010 for both advanced market economies and economies undergoing transition from central planning to market based system. We show that wage inequality was initially lower in transition economies and immediately upon the change of the economic system surpassed the levels observed in advanced economies. We find a very weak link between structural change and wages in both advanced and post-transition economies, despite the predictions from skill-biased technological change literature. The decomposition of changes in wage inequality into a part attributable to changes in characteristics (mainly education) and a part attributable to changes in rewards does not yield any leading factors
    Keywords: wage inequality, structural change, transition, skill biased technological change
    JEL: E24 D31 N34 O57 P36 P51
    Date: 2018–01
  18. By: Milena Chen; Patrice Aknin (IRT SystemX - IRT SystemX); Lilly-Rose Lagadec; Dominique Laousse (Innovation & Research - SNCF); Pascal Masson (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique); Benoit Weil (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - PSL Research University - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Industry-academic research partnerships are mostly considered interesting to increase industrial innovativeness, and its benefits have been discussed in the flourishing open innovation literature. However, how to create mutually beneficial partnerships seems to be a question that has not been sufficiently studied. Through this article, we discuss the goals of these partnerships by modelling different types of collaboration. We defend that their real value has to be evaluated not only by looking at the knowledge created, but also at the increase of generativity we observe, due to interactions between academia and industry. Furthermore, we propose a model based on C-K theory that can be used to design a research collaboration that increases generativity, going beyond problem solving and knowledge transfer logics. We illustrate it through a case study, which shows that value creation in an industry-research partnership is increased by a model of co-generation, instead of considering these relations as a one-way transfer. Furthermore, we show that conflicts in a partnership can be solved through a C-K based tool.
    Date: 2017
  19. By: Naubahar Sharif (Division of Social Science , The Hong Kong University of Science and Technology; Institute of Emerging Market Studies, The Hong Kong University of Science and Technology)
    Abstract: Analyzing a unique, previously unavailable, government patent database, this study investigates the determinants of transaction modes (namely to sell, license or retain) of invention and utility model patents in China. The results suggest that there is an inverted U-shaped relationship between an invention patent’s quality and the probability of it being licensed out while no relationship exists between a utility model’s quality and the probability of it being transacted. We also find that a firm with economically-motivated patent strategies is less likely to sell its invention patents while a firm with administratively-motivated patent strategies are more likely to transact its patents.
    Date: 2018–01
  20. By: Valeria Costantini (Roma Tre University, Rome, Italy); Francesco Crespi (Roma Tre University, Rome, Italy); Elena Paglialunga (Roma Tre University, Rome, Italy); Giorgia Sforna (Roma Tre University, Rome, Italy)
    Abstract: This paper aims to analyse the evolution of energy efficiency systems for the residential sector of EU countries over the past twenty years and the associated process of structural change occurred in EU economies. To this purpose, we develop a set of indicators to measure some significant characteristics of the energy efficiency systems and map European countries in terms of four dimensions: energy system, innovation system, policy mix design and export competitiveness. Building on these indicators we develop a cluster analysis identifying non-arbitrary homogeneous country groups according to several characteristics in order to investigate the co-evolution of technological trajectories, energy use performance and structural change in this specific domain. Results suggest the distinction of EU countries into four groups, that are individually and comparatively scrutinized shedding light on how the four dimensions here considered dynamically evolved and interacted within and across countries. Empirical findings reveal that the design of the domestic policy mix may play a key role in shaping technological trajectories and structural change processes that in turns allow an increase in external competitiveness performance. Such positive impact appears to be closely related to the quality and quantity of international relationships with main economic partners.
    Keywords: eco-innovation; policy mix; international competitiveness; structural change; energy efficiency; residential sector
    JEL: O31 O38 Q48 Q55 Q58
    Date: 2018–01
  21. By: Zhang, Min; Partridge, Mark; Song, Huasheng
    Abstract: People increasingly value amenities as their living standards improve. While the past thirty years have witnessed significant income growth in China, the role of amenities is less discussed. This paper fills the gap by investigating how amenities shape the geography of innovation in China. The empirical results based on city-level data suggest that both natural and consumer amenities are positively associated with regional innovation. Specifically, amenities related to temperature comfort, air quality, sunshine, educational resources and healthcare services matter most. Further, the analysis suggests the influence of amenities on innovation is closely linked with city characteristics such as income, density, and human capital. Therefore, to formulate innovation-driven growth, more attention should be paid to the role of amenities and amenity-related strategies should be tailored to city characteristics.
    Keywords: natural amenities, consumer amenities, innovation, regional economy
    JEL: O31 Q55 R1
    Date: 2018–01–05
  22. By: Grillitsch, Markus (Lund University); Sotarauta, Markku (University of Tampere)
    Abstract: The study of regional growth paths is a key theme in economic geography and of elemental interest for policy makers concerned with regional development. Evolutionary theory explains the path-dependent nature of regional development, and points to its open-ended nature. This paper addresses the interplay between path-dependent, structural forces and the construction and utilization of opportunities through agentic processes. Extending to the evolutionary framework, it is argued that not only history but also perceived future opportunities influence agentic processes in the present and thus shape regional growth paths. Building on recent work about foresightful, strategic and distributed agency, this paper identifies three forms of agency, Schumpeterian innovative entrepreneurship, institutional entrepreneurship and place leadership, that call for and necessitate each other in the process of shaping regional growth paths. It is argued that such a holistic view is essential to understand regional development processes and in particular structural change as manifested in economic diversification and new industrial path development.
    Keywords: Regional development; agency; path-dependency; Schumpeterian innovative entrepreneurship; institutional entrepreneurship; place leadership; economic diversification; new industrial path development
    JEL: B52 L16 O30 R10
    Date: 2018–01–31

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