|
on Innovation |
| 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 highimpact 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 cutting tax rates. In particular, there are many “lost Einsteins” - individuals who would have had highly impactful inventions had they been exposed to innovation |
| Keywords: | inventor; America; innovation |
| JEL: | N0 R14 J01 |
| Date: | 2017–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86616&r=ino |
| By: | Ferrando, Annalisa; Lekpek, Senad |
| Abstract: | The way firms finance their investments can potentially explain the heterogeneity of firms in terms of their innovation. We use a novel firm-level survey of the European Investment Bank (EIBIS) which provides information about a wide range of financing sources that firms use to fund their investment activities. The aforementioned survey also reveals a firms' degree of innovativeness. By applying a cluster analysis to group firms using information on their financing decisions, we investigate the link between finance and innovation of EU firms. We identify seven financing clusters to show that the degree of innovativeness (defined in terms of R&D or software investment, R&D and software turnover ratios, and the introduction of new products) increases with the diversification of financial instruments. Firms that use several financing instruments are more likely to invest in R&D and software activities and develop new products compared to firms that use a more limited number of financing instruments. |
| Keywords: | innovation,R&D,internal and external finance,cluster analysis |
| JEL: | D22 G32 O31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:eibwps:201802&r=ino |
| By: | Junwen Qiu; Wenjian Liu; Ning Ning |
| Abstract: | Based on endogenous economic growth models and the panel data of 31 regions in China, this paper explores the following four questions: Do spatial knowledge spillovers among regions exist? Do spatial knowledge spillovers promote regional innovative activities? What is the radiation range of spatial knowledge spillovers? Do external knowledge spillovers affect the evolution of regional innovations in the long run? The results show that spatial knowledge spillovers exist, and though the range of knowledge spillover is within 1000 kilometers in China, it pushes up regional innovative activities. Moreover, since developing regions benefit more from external knowledge spillovers than developed regions, it leads to the convergence of regional knowledge growth rate. |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1801.06936&r=ino |
| By: | Elisabetta Marinelli (European Commission - JRC); John Edwards (European Commission - JRC); Cosmina Mironov (Bucharest University) |
| Abstract: | This report synthesises the findings of the project Higher Education and Smart Specialisation (HESS) in North East Romania, a region that has been examined as one of the case studies. The project analyses the links between the higher education (HE) system and the development and implementation of Smart Specialisation Strategies (S3). On the one hand, the report identifies the challenges that S3 and the shift towards place-based innovation raise for Higher Education Institutions (HEIs) in the region; on the other, it explores how HEIs' activities can best support S3 in a region with an early-stage regional innovation system. The case of North East Romania is particularly interesting, as the region hosts well-established universities , that are anchored to their traditional missions of teaching and research, while facing critical questions posed by S3. In particular the report explores how HEIs can contribute to knowledge-based regional development, not only through locally-relevant teaching programmes, but also through territorially grounded research, technology transfer and societal engagement. The case study has employed participatory and qualitative research methods, which have been complemented by desk based research on the policy and socio-economic context. |
| Keywords: | Smart specialisation, higher education |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc107475&r=ino |
| By: | Dosi, Giovanni; Yu, Xiaodan |
| Abstract: | This paper investigates the microeconomics of employment dynamics, using a Chinese manufacturing firm-level dataset over the period 1998-2007. It does so in the light of a scheme of “circular and cumulative causation”, whereby firms’ heterogeneous productivity gains and sales dynamics, and innovation activities ultimately shape the patterns of employment dynamics. Using firm’s productivity growth as a proxy for process innovation, our results show that the latter correlates negatively with firm-level employment growth. Conversely, relative productivity levels, as such a general proxy for the broad technological advantages/disadvantages of each firm, do show positive effect on employment growth in the long-run through replicator-type dynamics. Moreover, firm-level demand dynamics play a significant role in driving employment growth, which more than compensate the labour-saving effect due to technological progress. Finally, and somewhat puzzlingly, the direct effects of product innovation and patenting activities on employment growth appear to be negligible. |
| Keywords: | Employment Growth,Demand,Product Innovation,Process Innovation,Export,China catching-up |
| JEL: | D22 J01 O33 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:177&r=ino |
| By: | Lindholm Dahlstrand Asa (Lund University, Sweden); Jacob Merle (Lund University, Sweden); Sprutacz Maren (European Commission - JRC) |
| Abstract: | The 2016 series of RIO Country Reports analyse and assess the policy and the national research and innovation system developments in relation to national policy priorities and the EU policy agenda with special focus on ERA and Innovation Union. The executive summaries of these reports put forward the main challenges of the research and innovation systems. |
| Keywords: | research and innovation, Sweden, innovation system |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc105928&r=ino |
| By: | Andreas Beerli; Franziska J. Weiss; Fabrizio Zilibotti |
| Abstract: | This paper investigates the effect of domestic market size on innovation activities across different durable good industries in the Chinese manufacturing sector. We address the endogeneity of market size by an IV strategy, based on a measure of potential market size, which is driven only by changes in the Chinese income distribution. This measure is exogenous to changes in prices and qualities of durable goods and is a valid instrument for expected future market size. Our results indicate that an increase in market size by one percent leads to an increase in firm-specific total factor productivity by 0.46 percent and an increase in labor productivity by 0:50 percent. These findings are robust to controlling for export behavior of firms and supply side drivers of R&D. |
| Keywords: | China, demand-induced innovation, directed technical change, durable goods, Economic growth, Engel curves, market size, middle class, non-homothetic preferences |
| JEL: | D31 L11 L68 O31 O33 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:zur:econwp:277&r=ino |
| By: | Iaria, Alessandro; Schwarz, Carlo; Waldinger, Fabian |
| Abstract: | We show that WWI and the subsequent boycott against Central scientists severely interrupted international scientific cooperation. After 1914, citations to recent research from abroad decreased and paper titles became less similar (evaluated by Latent Semantic Analysis), suggesting a reduction in international knowledge flows. Reduced international scientific cooperation led to a decline in the production of basic science and its application in new technology. Specifically, we compare productivity changes for scientists who relied on frontier research from abroad, to changes for scientists who relied on frontier research from home. After 1914, scientists who relied on frontier research from abroad published fewer papers in top scientific journals, produced less Nobel Prize-nominated research, introduced fewer novel scientific words, and introduced fewer novel words that appeared in the text of subsequent patent grants. The productivity of scientists who relied on top 1% research declined twice as much as the productivity of scientists who relied on top 3% research. Furthermore, highly prolific scientists experienced the starkest absolute productivity declines. This suggests that access to the very best research is key for scientific and technological progress |
| Keywords: | frontier knowledge; scientific production; international knowledge flows; WW1 |
| JEL: | I23 J44 N3 N30 N4 N40 O3 O31 O5 |
| Date: | 2017–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86599&r=ino |
| By: | Stephan Brunow; Antonia Birkeneder; Andrés Rodríguez-Pose |
| Abstract: | This paper examines the link between innovation and the endowments of creative and science-oriented STEM - Science, Technology, Engineering and Mathematics ? workers at the level of the firm and at the city-/regional-level in Germany. It also looks into whether the presence of these two groups of workers has greater benefits for larger cities than smaller locations, thus justifying policies to attract these workers in order to make German cities 'smarter'. The empirical analysis is based on a probit estimation, covering 115,000 firm-level observations between 1998 and 2015. The results highlight that firms that employ creative and STEM workers are more innovative than those that do not. However, the positive connection of creative workers to innovation is limited to the boundaries of the firm, whereas that of STEM workers is as associated to the generation of considerable innovation spillovers. Hence, attracting STEM workers is more likely to end up making German cities smarter than focusing exclusively on creative workers. |
| Keywords: | Innovation, Creative workers, STEM workers, Smart Cities, Spillover, Germany |
| JEL: | D22 J82 R12 J21 J24 R23 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1808&r=ino |
| By: | Jakub Sawulski |
| Abstract: | The paper is a preliminary evaluation of the offshore wind innovation system in Poland. The analysis is based on the Technology Innovation System concept. The paper includes the two first steps of the procedure: the structural analysis and the technology stage of development analysis. We found that, although there are not any offshore wind farms in Poland yet, Polish industry has broad experience in implementing offshore wind projects and can cover a large part of the offshore wind farm investment. However, knowledge area is not a strong point of the innovation system. Also the institutional (political) uncertainty, as well as inadequate public system of support for RES, may be significant barriers for the development of the technology. So far, the Baltic Sea has remained weakly explored in terms of offshore wind deployment. Poland, with its large sea space and good wind and soil conditions, may play a pivotal role in kick-starting the offshore market in this area. |
| Keywords: | RES, offshore wind, innovation system, TIS |
| JEL: | O31 O33 Q42 Q55 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp062017&r=ino |
| By: | Pascal Le 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); Armand Hatchuel (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) |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01619983&r=ino |
| By: | Lucia Foster; Cheryl Grim; John Haltiwanger; Zoltan Wolf |
| Abstract: | We examine whether underlying industry innovation dynamics are an important driver of the large dispersion in productivity across firms within narrowly defined sectors. Our hypothesis is that periods of rapid innovation are accompanied by high rates of entry, significant experimentation and, in turn, a high degree of productivity dispersion. Following this experimentation phase, successful innovators and adopters grow while unsuccessful innovators contract and exit yielding productivity growth. We examine the dynamic relationship between entry, productivity dispersion, and productivity growth using a new comprehensive firm-level dataset for the U.S. We find a surge of entry within an industry yields an immediate increase in productivity dispersion and a lagged increase in productivity growth. These patterns are more pronounced for the High Tech sector where we expect there to be more innovative activities. These patterns change over time suggesting other forces are at work during the post-2000 slowdown in aggregate productivity. |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:18-08&r=ino |
| By: | Bloom, Nicholas; Jones, Charles I; Reenen, John Van; Webb, Michael |
| Abstract: | In many growth models, economic growth arises from people creating ideas, and the long-run growth rate is the product of two terms: the effective number of researchers and their research productivity. We present a wide range of evidence from various industries, products, and firms showing that research effort is rising substantially while research productivity is declining sharply. A good example is Moore’s Law. The number of researchers required today to achieve the famous doubling every two years of the density of computer chips is more than 18 times larger than the number required in the early 1970s. Across a broad range of case studies at various levels of (dis)aggregation, we find that ideas—and in particular the exponential growth they imply — are getting harder and harder to find. Exponential growth results from the large increases in research effort that offset its declining productivity |
| Keywords: | economic growth; ideas; research effort; research productivity |
| JEL: | R14 J01 |
| Date: | 2017–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86588&r=ino |
| By: | Salem, Fatima |
| Abstract: | Organizations and businesses cannot depend completely on their own to generate new ideas for innovation and development in present knowledge based societies. Consequently, the United Arab Emirates (UAE) announced 2015 as the Year of Innovation and excellence awards have been established aiming to boost cooperation between various sectors in the country. Therefore, the concept of the Triple Helix (university–industry–government) was found as a model of innovation. The aim of this research is to establish the impact of a Triple Helix approach on enhancing creativity and skills within UAE public and private sectors. It explores the concept of the Triple Helix Model (THM) in the context of the UAE public and private sectors focusing on its existence, implementation, barriers and drivers. Methods of analysis include both qualitative and quantitative approach in which a conceptual framework was derived from the literature review, a survey was developed and distributed to a sample of employees from different organizations, and follow-up interviews were carried out with key stakeholders (in which their departments are implementing/ involved in the THM). The findings exposed the stakeholders’ perception about the importance of the concept and each actor’s role in the THM, the limited utilization of the concept among the organizations, and the challenges in terms of relational barriers and knowledge sharing. The research findings reveal that TH approach has a positive influence on enhancing creativity and skills within UAE sectors and several recommendations have been proposed such as leadership involvement and support, designing organizational innovation strategy, and the addition of society helix. |
| Keywords: | Triple Helix Model, Innovation, Challenges, United Arab Emirates |
| JEL: | G28 L80 L84 L88 O31 O32 O38 |
| Date: | 2017–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:84157&r=ino |
| By: | Barbara Biasi; Petra Moser |
| Abstract: | Copyrights for books, news, and other types of media are a critical mechanism to encourage creativity and innovation. Yet economic analyses continue to be rare, partly due to a lack of experimental variation in modern copyright laws. This paper exploits a change in copyright laws as a result of World War II to examine the effects of copyrights on science. In 1943, the US Book Republication Program (BRP) granted US publishers temporary licenses to republish the exact content of German-owned science books. Using new data on citations, we find that this program triggered a large increase in citations to German-owned science books. This increase was driven by a significant reduction in access costs: Each 10 percent decline in the price of BRP book was associated with a 43 percent increase in citations. To investigate the mechanism by which lower book prices influence science, we collect data on library holdings across the United States. We find that lower prices helped to distribute BRP books across US libraries, including less affluent institutions. Analyses of the locations of citing authors further indicate that citations increased most for locations that gained access to BRP books. Results are confirmed by two alternative measures of scientific output: new PhDs and US patents that use knowledge in BRP books. |
| JEL: | L82 N34 N42 O15 O34 O38 O43 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24255&r=ino |
| By: | Gareeva Yuliya (National Research University Higher School of Economics); Dranev Yury (National Research University Higher School of Economics); Kucherov Alexander (National Research University Higher School of Economics) |
| Abstract: | The current worldwide tendency to transform the global economy into a knowledge economy indicates that there is a need to analyze intellectual capital and approaches to its measurement, management and influence on company value. Taking into account the intangible nature of intellectual capital its measurement is an unconventional task for researchers with tough choices of adequate proxies. In this paper, we differentiate between components of intellectual capital and focus on innovation capital. We propose a methodology to measure intellectual capital and we analyze how intellectual capital influences company value in emerging markets. For this purpose, we investigate the relation between intellectual capital and the cost of equity influencing a company’s value through a discount rate |
| Keywords: | innovation capital; intellectual capital; cost of equity; asset pricing; emerging markets |
| JEL: | G32 O3 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:79sti2018&r=ino |
| By: | D�ttling, Robin; Perotti, Enrico C |
| Abstract: | Can technological progress explain secular stagnation? We show how an excess of savings over investment arises when innovative production requires creative human capital rather than physical investment. Innovating firms cannot own human capital so they need less investment financing, but need to ensure the commitment of human capital by rewarding it gradually over time. Over time, as innovators are granted a rising income share, the supply of investable assets falls. The general equilibrium effect is declining corporate leverage, a gradual fall in interest rates and rising asset valuations. The concomitant rise in house prices and wage inequality leads to higher household leverage and mortgage default risk. We show that only a redistributive productivity shift can account for a fall in physical investment in the context of falling interest rates, consistent with major economic and financial trends since 1980. |
| Keywords: | excess savings; House Prices; Human Capital; Intangible Capital; mortgage credit; skill-biased technological change |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12519&r=ino |
| By: | Jan-Maarten De Vet; John Huw Edwards (European Commission - JRC); Matteo Bocci |
| Abstract: | The principles of Smart Specialisation are valuable when implementing Blue Growth – an integrated approach towards stimulating the maritime economy. Both concepts pay considerable attention to innovation, young firm formation, bottom-up approaches and value chains. This policy brief builds on presentations and discussions from an S3 Platform Implementation workshop held on 8/9 October 2015 in Las Palmas de Gran Canaria, Canary Islands (Spain). The paper sets out several pathways to building so-called 'Blue Value Nets', notably through: 1) Expanding nets through suppliers and enablers; 2) Sharing infrastructure; and 3) Boosting Blue clusters and networks. All this requires actions from the private sector, by expanding and transforming existing value chains. However, the public sector can support this process also by: a) Enabling competency development and knowledge sharing; b) Use of maritime clusters as a tool to promote Smart Specialisation; c) Stimulating trans-boundary cooperation and; 4) Promoting 'Collaborative Labs'. |
| Keywords: | Smart specialisation, Blue Growth, value chains, value nets, maritime clusters |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc100975&r=ino |
| By: | Sebastian David Pretel (Centro de Estudios Históricos, El Colegio de México) |
| Abstract: | This paper examines the rise of various forms of patent expertise over the course of the second industrialisation. The essential insight here is that patent agents and lawyers, as well as consultant engineers, became, in the late 19th century, critical actors in the production and transmission of patent rights and patented technologies within and among societies. This paper considers three main themes. First, the global institutionalisation of patent agents during the late nineteenth century and their growing centrality in several national systems. Second, the transnational patenting networks created during the 1880s, particularly the activities of associations of patent agents and their impact on the making of an international patent system. Third, the controversial role of patent experts as agents of corporate globalism. The most important point remains that agents’ powers, and their many services to multinational corporations, had enduring consequences on the structure of knowledge property worldwide. |
| Keywords: | Patents, expertise, globalisation, technology, corporations, networks |
| JEL: | N70 O3 F55 B1 |
| Date: | 2018–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:cmh:wpaper:31&r=ino |
| By: | Marie Delaplace (LAB'URBA - LAB'URBA - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12) |
| Abstract: | In January 2016, 35,000 km of high-speed lines were planned worldwide for completion by 2050. Governments have sometimes to choose between different projects. If cost-benefit analysis is the most widely used tool to evaluate the effects of different projects, it seems to be inappropriate for evaluating the wider effects. Using service innovation theories, this paper shows that these wider effects in cities are difficult to evaluate ex ante because they are coproduced in space and time. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01622986&r=ino |
| By: | Stefano Breschi (OECD); Julie Lassébie (OECD); Carlo Menon (OECD) |
| Abstract: | The report presents new cross-country descriptive evidence on innovative start-ups and related venture capital investments drawing upon Crunchbase, a new dataset that is unprecedented in terms of scope and comprehensiveness. The analysis employs a mix of different statistical techniques (descriptive graphics, econometric analysis, and machine learning) to highlight a number of findings. First, there are significant cross-country differences in the professional and educational background of start-ups’ founders, notably the share of founders with previous academic experience and in the share of “serial entrepreneurs”. Conversely, the founders’ average age is rather constant across countries, but shows a fair degree of variability across sectors. Second, IP assets, and in particular the presence of an inventor in the team of founders, are strongly associated with start-ups’ success. Finally, female founders are less likely to receive funding, receive lower amounts when they do receive financing, and have a lower probability of successful exit, when other factors are controlled for. |
| Date: | 2018–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:52-en&r=ino |
| By: | Miguel Sanchez-Martinez (European Commission - JRC); Cristiana Benedetti-Fasil (European Commission – JRC); Peder Christensen (European Commission - JRC); Nicolas Robledo-Bottcher (European Commission - JRC) |
| Abstract: | R&D tax credits are currently used by 25 Member States as a means to stimulate R&D investment and, ultimately, economic growth and employment. This paper is a first attempt to provide an in-depth analysis of the structural economic factors that, other things equal, affect or condition the potential macroeconomic impacts of expanding (or start implementing) R&D tax credit schemes. The analysis is based on the European Commission's QUEST III semi-endogenous growth model. Our main conclusion is that, while the short and medium-term impacts of increased R&D tax credits on Member States' GDP and other macroeconomic aggregates are overall significantly positive, there remains space to substantially improve the cost-effectiveness of these policies. |
| Keywords: | R&D tax credits, innovation, economic growth, macroeconomic modelling |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc108931&r=ino |
| By: | Melisande Cardona (European Commission - JRC); Giuditta de Prato (European Commission - JRC); Montserrat Lopez-Cobo (European Commission - JRC); Riccardo Righi (European Commission - JRC); Sofia Samoili (European Commission - JRC) |
| Abstract: | The PREDICT 2017 Factsheets present essential statistical data regarding the performance of the EU ICT sector. They provide figures and tables on general economic and industry trends and R&D performance. These Factsheets are the subject of three reports. This report on ‘Purchasing Power Standard’ and the second report on ‘Data in Current Prices’ present sets of Factsheets with data on each EU Member State, in comparison to the EU average. The third report presents Factsheets on the EU and 12 non-EU countries: Australia, Brazil, Canada, China, India, Japan, Korea, Norway, Russia, Switzerland, Taiwan and the United States. |
| Keywords: | R&D, ICT, innovation, statistics, data collection, estimation, nowcasting, digital economy, ICT industry analysis, ICT R&D and innovation |
| JEL: | O30 O32 O52 C82 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc109565&r=ino |