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on Innovation |
| By: | Akcigit, Ufuk; Caicedo Soler, Santiago; Miguelez, Ernest; Stantcheva, Stefanie; Sterzi, Valerio |
| Abstract: | An inventor's own knowledge is a key input in the innovation process. This knowledge can be built by interacting with and learning from others. This paper uses a new large-scale panel dataset on European inventors matched to their employers and patents. We document key empirical facts on inventors' productivity over the life cycle, inventors' research teams, and interactions with other inventors. Among others, most patents are the result of collaborative work. Interactions with better inventors are very strongly correlated with higher subsequent productivity. These facts motivate the main ingredients of our new innovation-led endogenous growth model, in which innovations are produced by heterogeneous research teams of inventors using inventor knowledge. The evolution of an inventor's knowledge is explained through the lens of a diffusion model in which inventors can learn in two ways: By interacting with others at an endogenously chosen rate; and from an external, age-dependent source that captures alternative learning channels, such as learning-by-doing. Thus, our knowledge diffusion model nests inside the innovation-based endogenous growth model. We estimate the model, which fits the data very closely, and use it to perform several policy exercises, such as quantifying the large importance of interactions for growth, studying the effects of reducing interaction costs (e.g., through IT or infrastructure), and comparing the learning and innovation processes of different countries. |
| Keywords: | Diffusion; growth; Human Capital; Innovation; interactions; inventors; Knowledge; productivity; Teams |
| JEL: | H25 L16 O31 O33 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12819&r=ino |
| By: | Paola D’Orazio (Lehrstuhl für Makroökonomik, Faculty of Economics and Management, Fakultät für Wirtschaftswissenschaft, Ruhr-Universität Bochum, Universitätsstraße 150, 44801 Bochum (Germany).); Marco Valente (Dipartimento di Ingegneria Industriale e dell’Informazione e di Economia, University of L’Aquila (Italy); LEM Sant’Anna, Pisa (Italy); SPRU, University of Sussex (UK) and Ruhr-Universität Bochum (Germany).) |
| Abstract: | We develop a model that combines evolutionary economics concepts and methods with environmental economics concerns. The model is populated by consumers, heterogeneous firms, and a financial sector and is used to investigate the dynamic interactions between the demand and supply side, and the role played by binding financial constraints, in the diffusion of environmental innovations. The aim of the model is to understand how environmental goals can be effectively promoted and achieved in presence of a financial sector whose lending attitude is guided by long-termism rather than shorttermism. We show that financial constraints act as a deterring barrier and affect firms’ innovation strategies as well as the evolution of technological paradigms. When financial constraints are less binding, firms do not perceive hindrances to the adoption of eco-innovation and, as a result, the presence of the average green technology in the market increases. |
| Keywords: | Environmental Innovation, Agent-based Computational Economics, Financial Barriers, Green Finance, Short-termism, Deterring barriers, Credit constraints. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2018-10&r=ino |
| By: | Quatraro, Francesco; Scandura, Alessandra (University of Turin) |
| Abstract: | This work investigates the generation of green technologies (GTs) in Italian NUTS 3 regions across time, by focusing on the knowledge generation mechanisms underlying the creation of green patents. Firstly, we hypothesize that inventions in non-green technological domains positively influence the generation of GTs, because the latter occur as the outcome of a recombination process among a wide array of technological domains. Secondly, we hypothesise that the involvement of academic inventors in patenting activity bears positive effects on the generation of GTs, because they are able to manage the recombination across different technological domains. Thirdly, we explore the interaction effect between academic inventors’ involvement and non-green technologies to investigate whether the former are especially relevant in presence of higher or lower levels of the latter. We estimate zero-inflated negative binomial, spatial durbin and logistic regressions on a dataset of 103 Italian NUTS 3 regions for which we collected patent and regional data for the time span 1998-2009. The results suggest that both academic inventors and spillovers from polluting technologies bear positive direct effects on the generation of GTs; moreover, we find that academic inventors compensate for low levels of spillovers. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:uto:dipeco:201806&r=ino |
| By: | Nicolò Barbieri (Department of Economics and Management, University of Ferrara (IT)); Alberto Marzucchi (SPRU, Science Policy Research Unit, University of Sussex (UK)); Ugo Rizzo (Department of Economics and Management, University of Ferrara (IT)) |
| Abstract: | The paper contributes to our understanding of the nature and impact of green technological change. We focus on the search and impact spaces of green inventions, scrutinising the knowledge recombination processes leading to the generation of the invention and the impact of the invention on subsequent technological developments. Using a large sample of patents filed during 1980-2012, we analyse a set of established patent indicators that capture different aspects of the invention process. Technological heterogeneity is controlled for by comparing green and non-green technologies within similar narrow technological domains. Green technologies are found to be more complex and radical than non-green ones and to have a larger and more pervasive impact on subsequent inventions. However, the results show a variety of distinctive patterns with respect to the knowledge dimension considered. We derive some important policy implications. |
| Keywords: | environmental inventions, patent data, knowledge recombination, knowledge impact |
| JEL: | O33 O34 Q55 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2018-11&r=ino |
| By: | Leopoldo Nascia; Mario Pianta; Giovanni La Placa (European Commission - JRC) |
| Abstract: | The R&I Observatory country report 2017 provides a brief analysis of the R&I system covering the economic context, main actors, funding trends & human resources, policies to address R&I challenges, and R&I in national and regional smart specialisation strategies. Data is from Eurostat, unless otherwise referenced and is correct as at January 2018. Data used from other international sources is also correct to that date. The report provides a state-of-play and analysis of the national level R&I system and its challenges, to support the European Semester. |
| Keywords: | Research and Innovation, Italy, Innovation System |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc111327&r=ino |
| By: | Flavia Curvelo Magdaniel |
| Abstract: | Innovation is a buzzword promoting urban development and many public/private resources are invested in developing particular areas. Since the late 1950s, campuses have been the most popular areas developed to stimulate innovation in many industrialised regions. Many campuses developed as isolated locations in the periphery of cities. With the increased urbanisation processes, some of these locations are already in the inner city or adjacent to urban areas. More recently, the perception of cities as the natural environments for innovation is leading towards an urban shift in innovation-driven area development.Either way, this practice has been influenced by the assumption that geographical proximity plays a central role in the creation, diffusion and application of knowledge, which is widely discussed in economic geography. Accordingly, there has been a theoretical debate on whether diverse or specialised environments are more favourable for innovation (i.e. cities or regional clusters respectively). Although ‘diversity’ is considered an essential aspect of innovation processes, the existing research explaining which type of environment is more beneficial to innovation is inconclusive. This ambivalence poses challenges for stakeholders involved in campus development. On the one hand, planners and developers of new areas struggle with location decisions since different locations have associated advantages and/or disadvantages in stimulating innovation. On the other hand, managers of existing campuses deal with implementing strategies to support their goal of stimulating innovation at chosen and/or given locations.This paper aims to support strategic decisions in the development of new and existing campuses intended to stimulate innovation based on different location alternatives. This paper assesses a planning tool that proposes relevant aspects to stimulate innovation in different locations (Curvelo Magdaniel, 2016). This tool is used to analyse and compare 39 campuses with different locations characteristics across industrialised countries.Findings reveal five types of location patterns in existing campuses developed to stimulate innovation. These patterns show differences in connectivity aspects outlined in the tool as relevant for innovation. These findings demonstrate the usefulness of this planning tool, which considers location as a relevant decision shaping campus development and other innovation-driven area developments. |
| Keywords: | Campuses; Innovation; Knowledge economy; Location; Urban Development |
| JEL: | R3 |
| Date: | 2017–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2017_122&r=ino |
| By: | Koschatzky, Knut |
| Abstract: | The objective of this paper is to broaden the knowledge base on the topic of innovation-based regional structural change and to discuss the possibilities of raising structurally weak regions to a dynamic growth path by means of innovation-promoting measures. The background to this objective are political developments in Germany with regard to the development of a comprehensive German support system for structurally weak regions from 2020 onwards. While regional structural support (ERDF and German regional support) is so far essentially concentrated on regions in the eastern federal states, it should focus in future on structurally weak regions in all federal states and eliminate the differentiation between eastern and western Germany (Deutscher Bundestag 2016, 4). The experience gained in the eastern German states with the focus on innovation as a driver of structural change is intended to provide a starting point here, but taking into account the fact that some structural factors differ markedly between East German and West German regions. Against this background, this paper focuses on the innovation policy component of a system for promoting structural change in structurally weak regions. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisifr:r12018&r=ino |
| By: | Richard Harris (Durham University Business School and New Zealand Productivity Commission); Trinh Le (Motu Economic and Public Policy Research) |
| Abstract: | To the best of our knowledge, this paper reports the first set of nationally representative results on the importance of ‘absorptive capacity’. Absorptive capacity is generally defined as a firm's ability to internalise external knowledge. Using data principally from the New Zealand Business Operations Survey, we measure absorptive capacity across a 10-year period and investigate if it remains stable in the long term. This is followed by considering how firms’ characteristics vary across levels of absorptive capacity and most importantly whether such capacity determines firms’ productivity performance across the primary, manufacturing and service sectors. Our results show that relative to other influences, absorptive capacity as measured here has a substantial influence on exporting, innovation, and undertaking R&D. Set against relatively poor performance, the paper concludes with a discussion of how government should consider helping firms to boost their levels of absorptive capacity. |
| Keywords: | Exports; R&D; innovation; absorptive capacity |
| JEL: | L25 O24 O32 R11 |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:18_01&r=ino |
| By: | Lee, Joon-Ho; Lee, Alexander; Lee, April |
| Abstract: | In the Republic of Korea, public export support programmes for small and medium-sized enterprises (SMEs) have played a significant role in the internationalization process of such firms. Multiple non-reimbursable and co-financing instruments that promote export innovation among SMEs have contributed to their export success which, alongside large firms, made the Republic of Korea the world’s fifth largest exporting country in 2015. This study summarizes these support programmes and some key factors in relation to their implementation, some of which may be useful for those responsible for formulating and implementing similar programmes in Latin America and the Caribbean. First, the authors highlight the continuity of these policies since the 1950s. Second, the Republic of Korea has a unique set-up of institutions supporting SMEs exports, including the Ministry of Small and Medium Enterprises and Startups, the Korea Trade-Investment Promotion Agency (KOTRA) and the Korea International Trade Association (KITA). Third, some new initiatives have been introduced recently to accelerate SME internationalization, including a voucher scheme, in which eligible SMEs can select specific types of support of their own choice. Fourth, many programmes focus on the integration of SMEs into global value chains, particularly in the case of suppliers of parts and components to large Korean firms. |
| Keywords: | PEQUEÑAS EMPRESAS, EMPRESAS MEDIANAS, EXPORTACIONES, INNOVACIONES, PROMOCION DE LAS EXPORTACIONES, POLITICA DE EXPORTACION, ESTUDIOS DE CASOS, SMALL ENTERPRISES, MEDIUM ENTERPRISES, EXPORTS, INNOVATIONS, EXPORT PROMOTION, EXPORT POLICY, CASE STUDIES |
| Date: | 2018–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:43475&r=ino |
| By: | Nuri Ersahin |
| Abstract: | I analyze the impact of stronger creditor rights on productivity using plant-level data from the U.S. Census Bureau. Following the adoption of anti-recharacterization laws that give lenders greater access to the collateral of firms in financial distress, total factor productivity of treated plants increases by 2.6 percent. This effect is mainly observed among plants belonging to financially constrained firms. Furthermore, treated plants invest in capital of younger vintage and newer technology, and become more capital-intensive. My results suggest that stronger creditor rights relax borrowing constraints and help firms adopt more efficient production technologies. |
| Keywords: | Creditor Rights; Technology Adoption; Productivity; Bankruptcy |
| JEL: | D24 G32 G33 K22 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:cen:wpaper:18-20&r=ino |
| By: | Chiacchio, Francesco; Gradeva, Katerina; Lopez-Garcia, Paloma |
| Abstract: | Using micro-aggregated firm information for nine Central and Eastern European (CEE) countries and data from input-output tables, we examine the role of Global Value Chains (GVCs) for technology diffusion across EU countries. Our empirical results provide support for a two-stage diffusion process of technology across countries. In the first stage, the most productive firms in the host economy benefit from their direct exposure to new technology created in parent firms as a result of their GVC participation. In the second stage, technology spills over to the rest of firms in the host economy via domestic production networks. In addition, we show that the import of intermediate inputs –i.e. backward linkages- is the main channel of technology diffusion within GVCs. We use these results to explain the pronounced post-crisis drop in Total Factor Productivity (TFP) growth in CEE countries. We show that due to their deep integration in GVCs, CEE countries have been exposed to two recent developments highly correlated with their TFP performance: (i) a slowdown in TFP growth of parent firms located in non-CEE EU countries; and (ii) a global slowdown in the growth rate of GVC participation, which is evident also for CEE countries from 2011 onwards. Moreover, we find that the capacity of host firms in CEE countries to absorb and understand new knowledge has decreased since the crisis. We argue that this is related to the drop in R&D investment in the CEE region during the post-crisis period. JEL Classification: O33, O47, O57, C33 |
| Keywords: | Central and Eastern Europe, Global Value Chains, technology diffusion, TFP growth |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20182143&r=ino |
| By: | Vladimir Balaz (Slovak Academy of Sciences); Karol Frank (Slovak Academy of Sciences); Tauno Ojala (European Commission - JRC) |
| Abstract: | The R&I Observatory country report 2017 provides a brief analysis of the R&I system covering the economic context, main actors, funding trends & human resources, policies to address R&I challenges, and R&I in national and regional smart specialisation strategies. Data is from Eurostat, unless otherwise referenced and is correct as at January 2018. Data used from other international sources is also correct to that date. The report provides a state-of-play and analysis of the national level R&I system and its challenges, to support the European Semester. |
| Keywords: | Research and Innovation, Slovak Republic, Slovakia, Innovation System |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc111379&r=ino |
| By: | Nadine Levratto; Stephane Lhuillery; Thomas Zacharewicz (European Commission - JRC) |
| Abstract: | The R&I Observatory country report 2017 provides a brief analysis of the R&I system covering the economic context, main actors, funding trends and human resources, policies to address R&I challenges, and R&I in national and regional smart specialisation strategies. Data is from Eurostat, unless otherwise referenced and is correct as at January 2018. Data used from other international sources is also correct to that date. The report provides a state-of-play and analysis of the national level R&I system and its challenges, to support the European Semester. |
| Keywords: | Research and Innovation, France, Innovation System |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc111469&r=ino |
| By: | Niccolò Innocenti; Luciana Lazzeretti |
| Abstract: | The role of the cultural and creative industries (CCIs) in fostering both innovation and growth in the wider economy has been much debated, beginning with Bakhshi et al.'s (2008) seminal contribution. Such studies of creative environments tend to assign a strategic role to territories, but they provide little empirical evidence. In this paper, the issues of the creative economy are combined with evolutionary economic geography (EEG) topics in an attempt to understand whether the CCIs are able to foster innovation and growth in the wider economy. Using an indicator of the relatedness density between the creative and other sectors for the Italian provinces, we analyse employment growth and innovation over a period of ten years (2006?2015) by drawing from the AMADEUS database. A panel data analysis is then applied to investigate the role of relatedness and the clustering of the creative industries in wider economic growth, which shows that, at a local level, the creative industries require the presence of other sectors with a high degree of cognitive proximity/relatedness, while the capacity for development and innovation does not merely depend on their presence, but also on their relations and interdependencies with other economic sectors. |
| Keywords: | creative industries; employment growth; innovation; cognitive proximity; industry space |
| JEL: | R11 O10 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:1819&r=ino |
| By: | Jos Van den Broek; Jasper Deuten; Koen Jonkers (European Commission - JRC) |
| Abstract: | The R&I Observatory country report 2017 provides a brief analysis of the R&I system covering the economic context, main actors, funding trends & human resources, policies to address R&I challenges, and R&I in national and regional smart specialisation strategies. Data is from Eurostat, unless otherwise referenced and is correct as at January 2018. Data used from other international sources is also correct to that date. The report provides a state-of-play and analysis of the national level R&I system and its challenges, to support the European Semester. |
| Keywords: | Research and Innovation, The Netherlands, Innovation System |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc111333&r=ino |
| By: | Ana Fernandez Zubieta; Irene Ramos Vielba; Thomas Zacharewicz (European Commission - JRC) |
| Abstract: | The R&I Observatory country report 2017 provides a brief analysis of the R&I system covering the economic context, main actors, funding trends and human resources, policies to address R&I challenges, and R&I in national and regional smart specialisation strategies. Data is from Eurostat, unless otherwise referenced and is correct as at January 2018. Data used from other international sources is also correct to that date. The report provides a state-of-play and analysis of the national level R&I system and its challenges, to support the European Semester. |
| Keywords: | Research and Innovation, Spain, Innovation System |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc111466&r=ino |
| By: | GHOSH, Arghya; ISHIKAWA, Jota |
| Abstract: | We examine how trade liberalization affects South’s incentive to protect intellectual property rights (IPR) in a North-South duopoly model where a low-cost North firm competes with a high-cost South firm in the South market. The North firm serves the South market through either exports or foreign direct investment (FDI). The extent of effective cost difference between North and South depends on South’s imitation, which in turn depends on South’s IPR protection and absorptive capacity and North firm’s location choice, all of which are endogenously determined in our model. For a given level of IPR protection, South’s absorptive capacity under exports may be greater than under FDI. Even though innovation is exogenous to the model (and hence unaffected by South’s IPR policy), strengthening IPR protection in South can improve its welfare. The relationship between trade costs and the degree of IPR protection that maximizes South welfare is non-monotone. In particular, South has an incentive to protect IPR only when trade costs are moderate. When masking technology or licensing is incorporated into the model, however, some protection of IPR may be optimal for South even if the trade costs are not moderate. |
| Keywords: | intellectual property rights (IPR), absorptive capacity, imitation, foreign direct investment (FDI), licensing, masking, oligopoly, North-South trade model |
| JEL: | F12 F13 D43 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-67&r=ino |
| By: | Effie Amanatidou; Tonia Damvakeraki; Athina Karvounaraki (European Commission - JRC) |
| Abstract: | The R&I Observatory country report 2017 provides a brief analysis of the R&I system covering the economic context, main actors, funding trends & human resources, policies to address R&I challenges, and R&I in national and regional smart specialisation strategies. Data is from Eurostat, unless otherwise referenced and is correct as at January 2018. Data used from other international sources is also correct to that date. The report provides a state-of-play and analysis of the national level R&I system and it's challenges, to support the European Semester. |
| Keywords: | Research and Innovation, Greece, Innovation System |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc111358&r=ino |
| By: | Sari Pekkala Kerr; William R. Kerr |
| Abstract: | We study immigrant entrepreneurship and firm ownership in 2007 and 2012 using the Survey of Business Owners (SBO). The survival and growth of immigrant-owned businesses over time relative to native-founded companies is evaluated by linking the 2007 SBO to the Longitudinal Business Database (LBD). We quantify the dependency of the United States as a whole, as well as individual states, on the contributions of immigrant entrepreneurs in terms of firm formation and job creation. We describe differences in the types of businesses started by immigrants and the quality of jobs created by their firms. First-generation immigrants create about 25% of new firms in the United States, but this share exceeds 40% in some states. In addition, Asian and Hispanic second-generation immigrants start about 6% of new firms. Immigrant-owned firms, on average, create fewer jobs than native-owned firms, but much of this is explained by the industry and geographic location of the firms. Immigrant-owned firms pay comparable wages, conditional on firm traits, to native-owned firms, but are less likely to offer benefits. |
| JEL: | F22 J15 J44 J61 L26 M13 O31 O32 O33 R12 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24494&r=ino |