nep-ino New Economics Papers
on Innovation
Issue of 2018‒07‒09
twelve papers chosen by
Uwe Cantner
University of Jena

  1. A New model of mergers and innovation By Piuli Roy Chowdhury
  2. Historical Roots of Entrepreneurial Culture and Innovation Activity?An Analysis for German Regions By Michael Fritsch; Martin Obschonka; Michael Wyrwich
  3. Dismissal Laws, Innovation, and Economic Growth By Subramanian, Krishnamurthy V.
  4. Economic Modeling and Valorization of Biobanks By Carole HARITCHABALET; Catherine BOBTCHEFF
  5. What kinds of regional innovation systems occur around federal agencies? By Martin Warland
  6. Automation and Unemployment: Help is on the Way By Nakamura, Hideki; Zeira, Joseph
  7. Expertise in the relationship between biobanks and research units By Carole HARITCHABALET; Catherine BOBTCHEFF
  8. Technological change and labor market integration By Elisabeth Bublitz; Michael Wyrwich
  9. The Nexus of Entrepreneurship and Regional Development By Fischer, Manfred M.; Nijkamp, Peter
  10. Business models for freight and logistics services By Meyer, Niclas; Horvat, Djerdj; Hitzler, Matthias; Doll, Claus
  11. Accelerating Digital Trade in Latin America and the Caribbean By Kati Suominen
  12. International Joint Ventures and Internal vs. External Technology Transfer: Evidence from China By Kun Jiang; Wolfgang Keller; Larry D. Qiu; William Ridley

  1. By: Piuli Roy Chowdhury (Indira Gandhi Institute of Development Research; Institute of Economic Growth)
    Abstract: This paper reexamines the impact of merger on innovation. Unlike as in Federico et al (2017), it considers the scenario where merged firms combine their research labs. It shows that, in equilibrium, each firm chooses a higher R&D effort after the merger, while industry effort may rise or fall due to the merger. Furthermore, it shows that given a sufficient condition, profits of the merged firm falls and consumer surplus rises in the post merger scenario. These results are in sharp contrast to the findings of Federico et al (2017).
    Keywords: Innovation, R&D, Mergers
    JEL: D43 G34 L40 O30
    Date: 2018–03
  2. By: Michael Fritsch; Martin Obschonka; Michael Wyrwich
    Abstract: There is a research gap with respect to understanding the role of entrepreneurial culture and tradition for actual start-up behaviour. We combine historical self-employment data (entrepreneurial tradition) with a psycho- logical measure for entrepreneurial attitudes (entrepreneurial culture). The results reveal a positive relationship between the historical level of self- employment in a region and the presence of people with an entrepreneurial personality structure today. Our measure for a regional culture of entrepreneurship is positively related not only to the level of new business formation but also the amount of innovation activity.
    Keywords: Entrepreneurship, self-employment, new business formation, personality traits, culture, innovation
    JEL: L26 N94 O11 O30 R11
    Date: 2018–06
  3. By: Subramanian, Krishnamurthy V. (Asian Development Bank Institute)
    Abstract: We show theoretically and empirically that dismissal laws—laws that impose hurdles on firing of employees—spur innovation and thereby economic growth. Theoretically, dismissal laws make it costly for firms to arbitrarily discharge employees. This enables firms to commit to not punish short-run failures of employees. Because innovation is inherently risky and employment contracts are incomplete, dismissal laws enable such commitment. Specifically, absent such laws, firms cannot contractually commit so ex ante. The commitment provided by dismissal laws encourages employees to exert greater effort in risky, but path-breaking, projects thereby fostering firm-level innovation. We provide empirical evidence supporting this thesis using the discontinuity provided by the passage of the federal Worker Adjustment and Retraining Notification Act. Using the fact that this Act only applied to firms with 100 or more employees, I undertake difference-in-difference and regression discontinuity tests to provide this evidence. Building on endogenous growth theory, which posits that economic growth stems from innovation, I also show that dismissal laws correlate positively with economic growth. However, other forms of labor laws correlate negatively with economic growth and swamp the positive effect of dismissal laws.
    Keywords: labor laws; R&D; technological change; law and finance; entrepreneurship; growth
    JEL: F30 G31 J08 J50 K31
    Date: 2018–05–25
  4. By: Carole HARITCHABALET; Catherine BOBTCHEFF
    Abstract: Biobanks are service-provider infrastructures that offer access to biological resources for academic and industrial researchers. These centers make samples available to researchers, allowing them to test hypotheses and develop innovations. This research helps to improve the diagnosis and therapeutic management of patients. Biological samples are the essential input for the success of this innovation. The management of these biological resources requires considerable scientific and technical expertise. Biobanks must comply with numerous legal and regulatory requirements, particularly concerning the collection and transport of samples and the management of personal data. This data represents all the information that relates to the sample and that allows its use in the best conditions. One of the difficulties for biobanks is to master the collection of this information. Sample production requires a great deal of coordination between various professions to produce a high-quality input.
    Date: 2018–07
  5. By: Martin Warland
    Abstract: Scholars in innovation studies increasingly highlight that federal governments on the demand side spur innovation activities of government contractors. While government contractors tend to concentrate in capital cities, the kinds of regional innovation system (RIS) that occur around federal agencies remain poorly understood. Drawing on the RIS approach, this paper examines the actors and activities that are placed at the interface between public demand and private supply. The analysis draws on 122 interviews with RIS actors in Bern, The Hague, Ottawa and Washington, D.C. The results indicate that intermediaries play crucial roles in stimulating knowledge exchange between public demand and private supply. One important role relates to getting involved in policy formulation in order to enhance interactive learning in federal procurement practices. In interaction inspiring federal procurement policies, government contractors generate technical knowledge that they also can exploit through private sector clients.
    Date: 2016–07
  6. By: Nakamura, Hideki; Zeira, Joseph
    Abstract: This paper presents a model of technical change that combines two lines of research together. It is a task based model, in which automation turns labor tasks to mechanized ones, and there is also a continuous addition of new labor tasks, as in the expanding variety literature. We impose three simple restrictions on the model. The first is that all new tasks are adopted. The second is that all new automation innovations are adopted and the third is that the share of labor does not converge to zero in the long run. We show that these restrictions imply that unemployment due to automation is expected to converge to zero over time.
    Keywords: automation; growth; Labor Income Share; technical change; unemployment
    JEL: J64 O14 O30 O40
    Date: 2018–06
  7. By: Carole HARITCHABALET; Catherine BOBTCHEFF
    Abstract: We propose to model the relationship between a biobank and a research unit. We are interested in the problem of a research unit that wishes to invest in a new project. This project can potentially lead to a new drug or process whose profitability is uncertain. This project requires access to a collection of biological resources (biological samples and associated data) stored in a biobank. The commercial value of this innovation is unknown by the biobank and the research unit, but it is endogenous, i.e. it depends on the actions and decisions of the different actors. Our objective is to identify how these actions and decisions modify the value of the innovation.
    Date: 2018–07
  8. By: Elisabeth Bublitz (University of Hamburg); Michael Wyrwich (University of Jena)
    Abstract: Could the industrialization reduce social inequalities? We use the rise of office employment in the early 20th century as a historical experiment to study the effect of technological change on labor market access for vulnerable groups. In regions with industries that were strongly connected to the modern office, we find a higher regional labor force participation of disabled people which is explained by better access to the job market for people with physical impairments due to the new office technology. The beneficial employment effect is not distributed equally across gender but is restricted to disabled men. The composition of the workforce in the new white-collar jobs shows no significant differences, implying that vulnerable groups benefitted in similar proportions to workers without health issues. In sum, the second industrialization started to lower labor market entry barriers which gives proof of a market-based leverage effect to foster social inclusiveness.
    Keywords: Technological change, labor demand, disability, social inequality
    JEL: J14 J22 J23 O33
    Date: 2018–06–28
  9. By: Fischer, Manfred M.; Nijkamp, Peter
    Abstract: This chapter offers a review on modern entrepreneurship analysis, against the background of regional development. Regions with an entrepreneurial culture tend to be forerunners in a competitive economic process. After a conceptual discussion on the importance and the measurement of entrepreneurship, the contribution discusses critical success factors and key determinants of entrepreneurship. Next, much focus is laid on the geography of entrepreneurship as well as on industrial agglomeration, while also due attention is paid to the relevance of networks for modern entrepreneurship. The chapter concludes with some retrospective and prospective remarks.
    Keywords: Entrepreneurship, definition and measurement issues, spatial aspects of entrepreneurship, regions with an entrepreneurial culture, cluster agglomeration factors, entrepreneurship and networks
    Date: 2018–06–18
  10. By: Meyer, Niclas; Horvat, Djerdj; Hitzler, Matthias; Doll, Claus
    Abstract: This paper discusses a range of business model innovations taking place out-side the rail transport sector with a direct impact on rail transport. The paper also discusses business model innovations that may have been developed elsewhere but could be transferred to the rail transport sector. The paper's main research question is whether business model innovations have the potential to strengthen the rail transport sector. While the focus is on how to increase the market share of rail transport in the modal split, it is not exclusively on business model innovations within the rail transport sector. It will also look at business model innovations outside the rail transport sector with the potential to increase the modal market share of rail transport. This paper is based on a survey of all business model innovations within the rail transport sector and relevant innovations outside the sector.
    Date: 2018
  11. By: Kati Suominen
    Abstract: The Internet roared to the scene in Latin America and it is transforming the way Latin Americans interact, shop, bank, and spend their time. The Internet is changing regional consumption patterns, the landscape of regional companies, and the region's economic prospects. Disruptive digital technologies riding on the web -cloud-based services, e-commerce, 3D printing, Internet of Things, and so on- are empowering LAC companies of all sizes to dramatically cut costs, improve customer service, and create brand new products and services. The region is also home to innovative digital companies run by intrepid entrepreneurs, some of whom have accessed significant investments from Silicon Valley and grown into some of the leading digital companies. The Internet, in short, has opened tremendous new opportunities for LAC economies to become more productive, expand opportunities for entrepreneurship, and drive inclusive economic growth.
    Keywords: E-Commerce, Export Diversification, Exports of Service, Small and Medium-Sized Enterprises, Startups, Integration & Trade, E-Commerce, Electronic Commerce
    JEL: O39
    Date: 2017–03
  12. By: Kun Jiang; Wolfgang Keller; Larry D. Qiu; William Ridley
    Abstract: This paper studies international joint ventures, where foreign direct investment is performed by a foreign and a domestic firm that together set up a new firm, the joint venture. Employing administrative data on all international joint ventures in China from 1998 to 2007—roughly a quarter of all international joint ventures in the world—we find, first, that Chinese firms chosen to be partners of foreign investors tend to be larger, more productive, and more likely subsidized than other Chinese firms. Second, there is substantial international technology transfer not only to the joint venture itself but also to the Chinese joint venture partner firm. Third, with technology spillovers typically outweighing negative competition effects, joint ventures generate net positive externalities to other Chinese firms in the same industry. Joint venture externalities are large, perhaps twice the size of wholly-owned FDI spillovers, and it is R&D-intensive firms, including the joint ventures themselves, that benefit most from these externalities. Furthermore, the positive external joint venture effect is larger if the foreign firm is from the U.S. rather than from Japan or Hong Kong, Macau, and Taiwan, while this effect is virtually absent in broad sectors that include economic activities for which China’s FDI policy has prohibited joint ventures.
    Keywords: international joint ventures, partner selection, technology spillovers, foreign direct investment, competition effects
    JEL: F14 F23 O34
    Date: 2018

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